Index

A

Accounting practice

cost-center analysis, 137

information technology and, 22-23

productivity assessment of, 127

in traditional performance evaluation, 144-145

Aerospace industry, 240, 241, 245, 248

Aggregation of data, 119, 120, 128, 171-172, 176-177, 184

theory of composition, 185, 298

American Hospital Supply Corporation, 43-44

Automated teller machines, 46, 89-90, 202

Automobile industry, 2, 56, 61, 232, 264

B

Banking/finance industry, 17, 18-20, 21, 23, 56

automated teller machines, 46, 89-90, 202

Behavior modification

measurement of productivity and, 107-108, 110-111, 139-140

principles of, 108-109

Biotechnology, 2

Bottlenecks, 117, 144, 155-156, 165, 175

C

Clerical productivity, 20

information technologies and, 33-36, 86

Communications

in computer-aided design, 249-250, 251-252, 260

in downsizing efforts, 269-270, 273-275

formalization of, 28-29, 252

in gain-sharing plans, 70-72

indexicality of, 27

individual skills, 197

in lean production systems, 66-67, 68

negative effect on productivity, 166, 225

social effects, 230

in software development, 10, 221, 222, 223-225, 226-228, 294

speed of, 26-27

team design and, 221, 226-228

threat-rigidity effect, 270

Communications industry, 18

Competency multiplier effects, 219-220

Competition

international, 1-2

managerial overhead and, 264

strategic information processing, 43-44

Composition theory, 185-188, 190, 298-299



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Organizational Linkages: Understanding the Productivity Paradox Index A Accounting practice cost-center analysis, 137 information technology and, 22-23 productivity assessment of, 127 in traditional performance evaluation, 144-145 Aerospace industry, 240, 241, 245, 248 Aggregation of data, 119, 120, 128, 171-172, 176-177, 184 theory of composition, 185, 298 American Hospital Supply Corporation, 43-44 Automated teller machines, 46, 89-90, 202 Automobile industry, 2, 56, 61, 232, 264 B Banking/finance industry, 17, 18-20, 21, 23, 56 automated teller machines, 46, 89-90, 202 Behavior modification measurement of productivity and, 107-108, 110-111, 139-140 principles of, 108-109 Biotechnology, 2 Bottlenecks, 117, 144, 155-156, 165, 175 C Clerical productivity, 20 information technologies and, 33-36, 86 Communications in computer-aided design, 249-250, 251-252, 260 in downsizing efforts, 269-270, 273-275 formalization of, 28-29, 252 in gain-sharing plans, 70-72 indexicality of, 27 individual skills, 197 in lean production systems, 66-67, 68 negative effect on productivity, 166, 225 social effects, 230 in software development, 10, 221, 222, 223-225, 226-228, 294 speed of, 26-27 team design and, 221, 226-228 threat-rigidity effect, 270 Communications industry, 18 Competency multiplier effects, 219-220 Competition international, 1-2 managerial overhead and, 264 strategic information processing, 43-44 Composition theory, 185-188, 190, 298-299

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Organizational Linkages: Understanding the Productivity Paradox Computer-aided design assessment methodology, 141-142 computer-aided manufacturing and, 241, 259 data collection and management in, 243 definition of productivity in, 10, 244 designer-team linkage, 250-255, 259-260 expectations for, 10-11, 241, 243 implementation, 256-257 information flow in, 249-250, 251-252, 254-255, 260 isolation of workers in, 245, 251-252, 259-260 organizational complexity in, 247-248, 255, 260 principal activities in, 242-243 productivity determinants in, 243-250 productivity linkages in, 11 research needs, 259-260 resource management in, 245-246, 257-258, 260 role of, 240, 241 specialization in, 244-245, 253, 260 supervision, 250, 253-254, 260 system support, 248-249, 255-256, 260 team-organization linkage, 255-259, 260 tools, 248 training, 247 as transitional technology, 246-247, 254, 258, 260 workstation time-sharing, 245-246, 257-258 Computer-aided manufacturing, 241, 259 Computer-aided software engineering, 221n Computer industry. See Software development Conceptual Schematic Productivity model, 111-114 Continuous improvement, 70-71, 107, 147, 150 Core activities, 61-62, 293 Corporate investments, 2-3, 15, 17-18, 46 Customer service, 44-46 automation in, 62 subtask productivity analysis, 59-60 D Document preparation document revisions in, 34-35 quality vs. quantity trade-offs, 29-30 spoken communication vs., 26-27 See also Information technology Downsizing attitudes of retained workers, 275-276, 283-284 compensation for casualties of, 275, 283 as cost reduction tactic, 278-279, 281 as crisis management, 269, 270, 271, 274 cross-level effects, 267-268 decision-making processes, 270-271, 273 early retirement incentives in, 279 employee targeting in, 263-264, 276-277, 282-283 implementation, 268, 269, 272 information flow in, 269-270, 273-275, 285 level of application, 266-267 linkage insensitivity in, 271 mistaken beliefs in, 271-280, 288 obstacles to productivity gains in, 268, 281-284, 285, 295 organizational productivity and, 284-286, 292 partial factor productivity in analysis of, 262 participants in design of, 272-273, 276-277, 282, 283-284, 285 as productivity initiative, 11, 263-268 removal of top management in, 279-280 simultaneous restructuring, 278, 284, 285-286 successful model of, 281-286, 288 total factor productivity in analysis of, 262 trends, 263-266 value analysis in, 283 E E-mail, 35, 225, 252 speech vs., 27, 28 Educational system, 141 Effectiveness, as assessment criterion, 8, 106, 134-135 Efficiency coordination in groups, 230 as organizational assessment criterion, 8, 106, 134, 135 Employee compensation bonus plans, 70, 71, 86-87 in downsizing, 275

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Organizational Linkages: Understanding the Productivity Paradox gain-sharing plans, 69-72 in lean production systems, 68 productivity and, 48 response to change and, 85 stock participation, 83 subtask focus of, 86-87 wages, 2, 48 work behavior and, 108-109 Employee evaluation misuse of productivity assessments, 127-128 motivation in, 140, 168, 171 in Productivity Measurement and Enhancement System, 178, 182-183 productivity measurement for, 107, 127-128 productivity vs. performance, 126-127 unit cost analysis, 127 Employee participation in downsizing decisions, 272-273, 282, 283-284, 285 employee ownership and, 83 in innovation process, 136-137 in office automation decisions, 85 organizational congruence and, 140-141 in Scanlon plan, 70 in technology implementation, 257 trends, 207 F Focus of attention, 65, 70, 75 Food service industry, 21, 108 G Gain-sharing plans, 69-72 Goal alignment, 9, 107-111, 119, 139-141, 174, 183-184, 187, 202 Group functioning communications in, 223-225 in composition theory, 185 in computer-aided design, 11, 250-255 coordination in, 10, 215, 225 in decentralized environments, 207, 260 degree of interdependence in, 185-187 entrainment process in, 228-229 experimental modeling, 230-232 in Goal Alignment model, 109-110, 119 individual performance and, 82, 117-121, 214, 218-219, 229-232, 250-255 in information technology, 33-36, 48 in innovation process, 137 input factors, 118 as measure of individual performance, 197 in organizational performance, 118, 187, 232, 250-255 performance measurement system for, 178-184 productivity determinants, 205 productivity linkages in, 122-123, 129 productivity measurement of, 117-119 public goods problem, 226n research, 4, 229-232 role accuracy in, 187 in software development, 10, 214-215, 216-217, 218-229, 231-233 supervision, 185, 253-254 team design, 220-223 types of group structures, 120-121 worker isolation as productivity factor, 251-252, 259-260 H Hiring practices, 95, 188 for software development teams, 220 Hourly output, 2, 263 Human factors research, 3-4 I Individual performance/productivity aggregation of data, 119, 120, 128 behavior modification in measurement of, 107-108, 139-140 communication skills, 197 components of job performance, 195-197, 199 in composition theory, 185 in computer-aided design, 250-255 Conceptual Schematic Productivity model, 111-114 in context of total performance, 126-127 in core vs. peripheral tasks, 61-62, 64-65, 293 demonstrated effort as factor in, 197

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Organizational Linkages: Understanding the Productivity Paradox determinants of, 197-198, 204-206 direct observation for assessment of, 200-201 discipline as factor in, 197 downsizing effects, 267-268 effects of measurement on, 193 facilitative processes in organizations, 65-72 financial measures in assessment of, 127 gain-sharing plans and, 69-72 group performance and, 117-119, 128, 218-219, 250-255 information technologies and, 26-33, 35, 206 input measures, 124-125, 129 job-specific task proficiency, 195-196, 199 leadership skills, 197 management skills, 197 measurement of, 9 misuse of assessments, 127-128 model for IT assessment, 194-198 motivation in, 197, 198 non-job-specific task proficiency, 196 obstacles to measurement of, 128-129 obstacles to organization-level change, 58-64, 65, 73 organizational linkages, 56-64, 65, 72-76, 297-298 output determinants, 185 output measures, 123-124, 128, 168-170 peak vs. typical, 199-200 process determinants, 5-6, 58, 65-66 Productivity Servosystem model, 114-117 quality as assessment factor, 125-126 rating method, 200 research in, 4, 105-106 research needs, 77-79, 123-129 role linkages in, 57, 59-64 in software development team productivity, 215, 218-219 standardized sample for assessment of, 200 subtask relationships in, 57, 58-61, 86-87, 94-95 system determinants, 82 uncontrollable factors, 112-113 variables in, 111, 112 Industrial engineers, 4 Industrial/organizational psychology behavior modification, 108-109 productivity research, 4 Information technology administrative overhead in, 36-38 case studies, 211-212 clerical productivity and, 20 corporate investment in, 2-3, 15, 17-18, 46 corporate strategic applications, 43-44 customer service and, 44-46 ease of use and overuse of, 35, 41-42, 86 equipment obsolescence issues, 31 increases in workload related to, 33-36 interindustry comparisons, 16, 20-21 interrole effects, 62 intraindustry comparisons, 16, 21-24 labor productivity in, 145 latent structure, 195, 210 macro modeling of, 296-297 management control-seeking behavior, 40-41 management information systems, 21-22, 40-42, 48 multilevel analysis, 16-17 operator skills, 31-33 opportunity for profitability, 44-46 organizational communication and, 26-29 organizational structure and, 205-206 planning for implementation, 148 in poorly run vs. well-run firms, 25-26 productivity and, 47-49 productivity assessment, 194, 202, 207-208, 209 productivity components, 203-204, 210 productivity determinants, 205-206, 210 productivity improvement strategies, 206-208 quality vs. quantity trade-off in, 29-30, 48, 125 research needs in, 49, 158, 209-212, 297 sectoral analyses, 16, 17-20 socioeconomic impacts, 13, 14-15 spiraling investment in, 46-47, 90-91 subtask productivity analysis, 59-60, 86-87 See also Office automation Innovation international comparison, 137, 222 as organizational assessment criterion, 8, 106, 134, 136-137

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Organizational Linkages: Understanding the Productivity Paradox Insurance industry, 17, 23-24, 46 Internal Revenue Service, 30 International linkages, 1-2 IT. See Information technology J Job classification, 68 Just-in-time manufacturing, 28 L Labor costs, 91, 124-125, 129 M Management/supervision assessment activities, 138-139 assessment of, 197, 263 in computer-aided design, 250, 253-254, 260 control-seeking behavior, 40, 150, 223 decentralized, 207, 260 of downsizing efforts, 268-271 in dynamic environment, 143-144 as group performance variable, 185 growth trends, 264 improvement/PDCA cycle, 139, 147 information culture in, 40-42 introduction of office automation, 84-85 in IT productivity, 206-207 knowledge of results, 140 leadership climate, 83 level-specific performance evaluation, 141-143, 153, 168 by numbers, 41, 42, 48 optimal production technique strategy, 155-156 as organizational subsystem, 88 as overhead in IT, 36-38 participants in downsizing efforts, 272-273, 276-277 paternalistic style, 269-270 performance measurement needs, 145-146, 147-149, 167 productivity analysis for, 107 in productivity assessment, 129 as productivity determinant, 131-132, 205, 206 removal of, in crisis, 279-280 resource allocation issues, 257-258 role of, 138 social context of decision-making, 270 in software development teams, 222, 223 strategic planning, 147-148 of successful downsizing, 281-284, 285 systems model, 133, 134, 146-147 total quality management, 93-94 traditional measures of success in, 263 Marketing activities customer service, 44-46 growth in, 38 information technology in, 22-23, 44-46 Material velocity management, 143-144, 155-156 Measurement of productivity outcomes, 136 administrative/managerial factors in, 129 aggregation of data, 176-177, 184 analysis of variance in, 208 as behavior modifier, 107-108, 139-140 comparison across units, 183, 184, 188 in computer-aided design, 244 in context of total performance, 125-126, 297-298, 300 contingencies concept, 179-181 cultural aspects of organizations, 99 data sources, 24-25 defining linkages in, 132-133, 139 definition of productivity in, 8-9, 202, 209 design variables, 153-155 in engineering design, 10 errors in, 127 financial measures in, 127 flexibility in, 139, 143-144, 151, 189 goal alignment in, 139-141 goals of, 128 good qualities in, 142-143, 150-152, 201 group level, 117-119, 129 hierarchical model, 9 inadequacy of, 131, 133-134, 157-158 individual level, 9, 106-107, 195 in information technologies, 14, 15-16, 194, 195, 209 as input/output ratio, 55, 244 input units in, 124-125, 129 knowledge of results in, 140 latent variable vs. observed measure, 194 in management system model, 147, 148-149

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Organizational Linkages: Understanding the Productivity Paradox methods in, 200-201 misuse of results, 127-128 natural phenomenon, 166-172 new thinking in, 150-152, 158-159 obstacles to, 128-129 organizational conflicts as obstacle to, 166, 173-174, 177, 183-184 organizational goal alignment in, 9, 107-111, 119, 174, 202 at organizational level, 59 output units in, 123-124, 128, 168-171, 175, 185, 187, 190, 296 peak vs. typical performance, 197-198 performance components, 195-197, 199 performance determinants, 197-198 problems in, 24-26, 207 as productivity determinant, 193 productivity determinants, 204-206 Productivity Measurement and Enhancement System, 177-184, 211 profit impact of market strategies approach, 21 profound knowledge in, 133, 292-293 quality issues in, 125-126 research needs, 145-146, 209-212, 296-297, 300 role of, 106-107, 156, 167-168 scaling in, 193, 230-232, 295 selection of measures in, 152-153, 168-171 self-reported data in, 30 side effects of interventions in, 175-176 as source of productivity paradox, 7-8, 166, 171, 174-177 in strategic planning, 148 substantive theory, 193 task classification in, 120 taxonomy of linkage problems, 189 time lag effects, 7, 31, 157, 165, 175, 207 traditional measures, 139, 144-145 unit of analysis in, 202-203 user needs in, 139, 141-143, 154 welfare economics framework for, 18-19 Motivation, 66, 68-69, 71, 76 employee ownership and, 83 equipment problems and, 258-259 measurement of, 176, 178 operant psychology, 108-109 performance evaluation systems and, 140, 168, 171, 197, 198 productivity measurement as, 110-111 O Office automation definition, 84 employee response, 84-85, 97-98 generalizability of productivity outcomes, 91 implementation, 84-85 individual productivity and, 86-87, 94-95 labor costs and, 91 maintenance investments, 90-91 negative productivity effects, 86, 90, 91 obstacles to productivity improvement, 7 organizational subsystem interactions, 89-93, 95-96 symbolic values in, 97-98 technical problems in, 258 training, 91 See also Information technology Organizational culture, 92-94, 97, 100 Organizational productivity administrative overhead and, 36-38 analysis of variance in, 208 benefits of, 48 communications technologies in, 26-29 in computer-aided design, 255-259 conditions for improvement in, 72-76 coordination systems in, 65, 66-67, 68, 71-72, 74-75 core vs. peripheral tasks in, 61-62, 64-65, 293 defining linkages in, 132-133 determinants of, 205-206 downsizing and, 11, 284-286, 292 effects of measurement on, 193 equifinality of interventions for, 89, 93-94 facilitative processes, 65-72, 293-294 focus of attention in, 65, 70, 75 gain-sharing plans and, 69-72 goal alignment in, 173-174, 183-184, 187, 202 group functioning in, 33-42, 118, 187, 232, 255-259 horizontal linkages in, 295-296 implementation of interventions, 94 individual productivity and, 26-33, 57, 59-61 industry productivity and, 43-44

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Organizational Linkages: Understanding the Productivity Paradox information technology in, 26-42, 43-47, 48-49, 205-206 in lean production systems, 68-69, 72 management functions in, 40-42, 48, 206 motivation processes in, 66, 68-69, 71, 76 office automation and, 6-7, 84, 86-87, 90, 91 in open system theory, 94-96 organization-specific measures of, 9, 107-111, 119, 139-141 organizational evolution and, 65-66, 70-71, 75-76, 78 in poorly run vs. well-run firms, 25-26 problem-solving systems in, 65, 67-68, 69, 71-72, 75, 78 process determinants, 5-6, 58, 65-66, 293-294 research needs, 76-79 role linkages in, 57, 59-64 side effects of interventions, 7, 165-166, 175-176 social linkages in, 77 sources of intervention failure, 207 system determinants of, 82, 83, 293-294 in systems model, 8, 99-100 as target of downsizing initiatives, 266-267 theory of aggregation for, 185 theory of composition for, 185-188, 190, 298-299 types of organizational linkages in, 56-58 vertical linkages in, 295-296 wages and, 48 See also Productivity Organizational structure company size, 263 complexity of linkages in, 57-58, 299 in computer-aided design, 247-248, 255, 260 degree of interdependency in, 58, 88 design activities in, 11, 162-164 dynamic homeostasis in, 89, 92-93 effects of office automation in, 89-93 employee compensation, 68-72 group structure in, 119 information needs at different levels of, 141-143, 153, 168 in IT productivity, 205-206 lean vs. mass production systems, 66-69, 72 linkages in, 162-165 as obstacle to productivity growth, 7, 293 as open system, 87-89, 94-96 organizational evolution and, 76 organizational subsystems in, 88, 162-164 political context, 97, 98-99 as productivity factor, 165, 175, 293-295 project teams, 10 specialization in, 88, 89-90 subsystem linkage as source of paradox, 184-185 subsystem reverberations, 88, 90-91, 95 system-wide intervention, 81, 95-96 taxonomy of linkage problems, 189 team design, 220-223 types of linkages in, 55-56, 189 See also Downsizing Organized labor, 63-64 P Partial factor productivity, 55, 262 Postal Service, U.S., 60-61, 62, 63, 64 Problem-solving systems, 65, 67-68, 69, 71-72, 75, 78 in Scanlon plan, 70 Product development, 263 Productivity capital/labor, 19-20, 21, 145 company size and, 263 in computer-aided design, 10-11, 241, 243-250, 260 computer security measures and, 249-250, 254-255, 260 corporate investment in, 2-3 definitions, 8-9, 55, 106, 136, 202, 209, 244, 262 determinants, 204-206, 209 downsizing effects, 265-268 importance of growth in, 1-2 information technology components, 203-204, 209 partial factor productivity, 55, 262 profitability and, 43, 44 resource management issues, 246, 260 software/hardware upgrades and, 246-247, 258, 260 strategic planning for, 147-148

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Organizational Linkages: Understanding the Productivity Paradox supervision issues, 253-254, 260 systems support in, 255-256, 260 task specialization in, 245, 253, 260 technology implementation in, 256-257 technology problems and, 258-259 throughput, 13-14 total factor productivity, 55, 262 trends, 2, 14-15 See also Individual performance/productivity; Measurement of productivity outcomes; Organizational productivity Productivity Measurement and Enhancement System (ProMES) aggregation of data, 184 conceptual base, 177 definition of productivity, 177 feedback report, 178, 182-183 linkage issues, 183-184 process, 178-181, 211 role of, 177-178 Productivity research case studies in, 211-212 decentralized management, 207 downsizing effects, 284-287 individual level, 105-106 information technology, 14, 16-24 large group performance, 229-232 level of analysis, 3-4, 105, 161-162, 292, 295 linkages in software development, 218-219 multidisciplinary approach, 5 needs, 123-129, 145-146, 157, 185, 189-190, 259-260, 286-287, 294, 300 organizational linkages, 4-5, 162 software development teams for, 215 theory development, 74, 298-299 Productivity Servosystem model, 114-117 Profitability company size and, 263 new technologies and, 44-46 as organizational assessment criterion, 8, 106, 134, 137 productivity and, 43, 44 Profound knowledge, 133, 292-293 Public goods theory, 226n Purchasing procedures computerization of, 43-44 corporate software, 32 organizational politics in, 98 Q Quality checkpoints, 135-136 information technologies and, 29-30, 48 as organizational assessment criterion, 8, 106, 134, 135-136 in productivity assessment, 8, 125-126 productivity rewards for employees, 87 total quality management, 93-94 Quality of work life, 8, 68-69, 106, 134, 136 R Resource management, 245-246, 257-258 Retail settings, 92 Retirement incentives, 279 Robotics, 2 S Scaling issues, 193, 230-232, 295 Scanlon plan, 69-72, 77 Security measures, 249-250, 254-255, 260 Shipbuilding industry, 2, 230-231 Side effects of interventions, 7, 165-166, 175-176 Size of companies, 263 Slack, 7, 11, 60-61, 63-64, 67, 73, 77, 78, 165, 188 Social linkages, 77 Software in information technology productivity, 203, 246-247 product obsolescence as productivity issue, 31-32 spreadsheet modeling, 41-42, 90 Software development analysis phase, 215 authority structure, 222, 228 coding operations, 216 communications in, 221, 222, 223-225, 226-228, 294 competency multiplier effects, 219-220 complexity of, 216 computer-aided, 221n coordination in, 215, 216-226 design phase, 215-216 documentation of, 216

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Organizational Linkages: Understanding the Productivity Paradox entrainment process in, 228-229 individual-group linkages, 10, 218-219 in information technology productivity, 203 infrastructure costs, 223 interdependence of components, 217-218 object-oriented design, 221n process, 215-216 productivity determinants, 214-215, 233, 294 reassignment of members, 229 research on linkages, 218-219 role of teams in, 214 team design in, 10, 214, 219, 220-223, 226-228, 294 uncertainty in, 217 as unit of analysis, 215 unit of output in, 124 Specialization, 11, 88, 89-90, 244-245, 253, 260 Spreadsheet programs, 41-42, 90 Steel industry, 2, 263 Strategic planning, 147-148 Systems theory analysis of decision-making, 96 in design of measurement systems, 154 human resources assessment in, 96-97 limitations of, 96 of management, 133 open systems, 87-89 organizational functioning in, 133-137 in productivity interventions, 94-96, 299 subsystem interactions in organizations, 88-94 T Tank crew performance, 232 Task classification, 120 Textile industries, 2 Throughput productivity, 13-14 Time lag effects, 7, 31, 157, 165, 207 Total factor productivity, 55, 262 Total quality management, 93-94, 136, 147 Training after downsizing, 275, 283 competency multiplier effects, 219-220 in computer-aided design, 247 hardware/software obsolescence and, 31-33, 246-247 office automation, 85, 91 in problem-solving, 68 software development teams, 219-220 system interactions in, 83 V Valve-manufacturing industry, 22-23 W Wages, 2, 48 Warehousing/inventory activities information technology in, 43-44 Warehousing operations, 23 Waste, 190