‘Organizational Linkages: Understanding tho Productivity Paradox (1984)
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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.