‘Organizational Linkages: Understanding tho Productivity Paradox (1984) iptv ng edioperonesD009049043hra 15 Hl copy 1884, 2060 The Rao] Academy of Seles. igh ese 168 + Rosser, rasrcnaeo identifying whether problems are developing and assessing the effect of changes made in operations. ‘The fifth purpose of measuring is for use as a motivational tool (eg. Algera, 1989). The objective is to improve performance by encouraging behavioral changes in individuals. The assumption underlying this type of measurement is that the human resources of an organization ean have a significant impact on the organization’s performance. In other words, personnel can exert more effort, be more persistent in their ef- forts, and spend their efforts in more optimal ways, thereby working more efficiently and effectively. Although the last three purposes appear to be somewhat similar, there are important differences. Each measures performance in a single organization, but they focus on different things and at different levels of the organization. The management information system is concerned ‘with the overall functioning of the organization or its major subsystems and deals with macro measures, such as the profitability of the total organization or the contribution of different units to some type of over- alleffectiveness. The measurement information is rarely given to lower- level personnel in the form of feedback. Data gathering for the control purpose is typically done on smaller-sized organizational units than for the management information system, and it uses less macro measures, such as the flow of resources to various units and how well work is being scheduled. In addition, it does not attempt to separate the ef fects due to personnel from the effects due to technology. Measure- ment for motivation is concerned with the performance of individuals or work groups and gathers data on the accomplishment of specific work objectives. It is done, ideally, so that the effects due to personnel ean be separated from the effects due to the technology, and the results ere typically given to unit personnel in the form of feedback. Different Measurement Purposes Require Different Measures ‘What is most critical for the discussion here is that measuring for different purposes involves measuring different things. As one moves from measuring for motivational purposes to measuring the total orga- nization, new causal factors come into play that will affect the values produced by the resulting measurement. This is illustrated in Figure 7-8. The middle section of the figure represents the transformation of outputs that is made from individual to unit, to division, to total orga nization. As noted above, the outputs of the more molecular levels be- ‘come the inputs of the more molar levels. However, other inputs are added at each level in addition to the outputs of the more molecular level. The upper section of the figure shows some of the many factors