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‘Organizational Linkages: Understanding tho Productivity Paradox (1984) iptv ng edioperonesD009045043hra 153 Hl copy 1884, 2060 The Ral Academy of Seles igh ese Dscexrosuine Tlie PRODUCTIITY LINKAGES PARADOX + 163 Organization: ‘Top Management 1+Beo Division: Production 1-0 Unit Design Manufacturing 1>BRO Individual FIGURE 7-2 Organizational subsystem structure, NOTE: I = inputs; P = processing of inputs; O = outputs. 4-6, a subsystem has inputs, it does processing of some sort with those inputs, and it generates outputs. ‘The individuals in each unit are them- selves systems that become subsystems for the broader organization. This is depicted graphically in Figure 7-2, which shows the production division from the example above. At the bottom of the figure are the individuals. These individuals have inputs (I) in the form of materials, equipment, training, information, and so on. The individuals process (P) the inputs to produce outputs (0). An individual in the design unit ‘might produce the output of an idea for one aspect of the new product's design.

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