‘Organizational Linkages: Understanding tho Productivity Paradox (1994) iptv np edioperonesDO09049043hra 185 Hl copy 1984, 2050 The Ral Academy of Seles ih ese 166_+ Roveer p, prcuan sis to another. For example, giving each person in a unit a personal computer could result in people working individually rather than in groups, Ifthe task for the unit requires high interdependence if it is to be done effectively, the shift from group to individual activity could de- crease the combined, integrated output of the group while increasing the output of each individual. Another type of side effect is that the intervention could lead to changes in communication patterns, The new technology or work process could result in changes in the work structure that would disrupt a well-established informal communica- tion pattern. It might take considerable time to reestablish a new pat~ tem that is as efficient as the old one. Thus, although some output measures increase due to the changed technology, the decrease in com- munication effectiveness could decrease the unit's overall output. ‘These and other unintended side effects were discussed in Chap- ters 2-4, The important thing to note for the purposes of this chapter is that this class of factors exists and can be part of the paradox. Unin- tended side effects can produce the paradox in that performance can improve in one aspect of the work, but decreases that occur in other aspects of tho work can eliminate the positive effects when the aggre- gation to a higher level of analysis occurs. ‘This leads to the following hypothesis: + To the extent that unintended negative side effects of a suc- cessful intervention occur, they will reduce the overall output of the subsystem and thereby produce the appearance of a productiv- ity paradox. ‘Measurement Issues ‘The third group of factors that can explain the paradox involves measurement issues. A major point in this chapter is that measure- ‘ment issues are a critical key to decomposing the productivity paradox. ‘There are two classes of measurement issues. The first comprises is- sues that are natural phenomena in organizations, and although they should be recognized and understood, they are not a cause for particu- lar concern. The second class of measurement issues comes to the fore when there are actual errors or conflicts in the measurement of organi- zational performance. This class of measurement issues is much more critical to organizational functioning than the first class and much more problematic for decomposing the productivity paradox. In the next two sections, I examine each class of measurement issues in detail.