‘Organizational Linkages: Understanding tho Productivity Paradox (1984) iptv np edioperoneD009045042hra 7 Hl copy 1684, 2060 The Raa Academy of Sines ih ese Roneer n, perrcnseo that are added at each level of analysis in the form of inputs or con- straints. In Figure 7-3, the behavior of the individual, the most mo- lecular level, is combined with the existing technology to produce unit level outputs, The supervision ofthe individual also influences the trans- formation of individual outputs to unit outputs. As an example, design engineer using a computer-assisted design (CAD) system produces spe- cifie designs for parts of a new product. Individual or subunit outputs are combined through an integration and coordination finetion that is overseen by the supervisor. The combined effects of individuals, the technology, and the supervision fonction produce the unit's outputs. ‘Thus, the designs of individuals or small groups are combined into an integrated, final design for the new product, which is the output of the design unit. The outputs of the manufacturing unit would be finished products. ‘The outputs of the design and manufacturing units are then combined into outputs for the production division. To accomplish this, a coordi- nation function is required so that the outputs of the units can be inte- grated effectively. The plans developed by the design unit, for example, must be manufacturable at a reasonable cost. In addition, a major re- source acquisition process occurs when the person in charge of the divi- sion must acquire resources from top management, The more effec- tively this is done, the greater the outputs of the division tend to be. ‘The entire division has its own outputs that relate to the finisbed product. To measure the performance of the division, measures might be taken of how long it took to develop a manufacturable product, how economically the product can be made in the future, and how well the product meets customer needs. What is critical here is that the mea- sures of the division’s performance include not only the outputs of the ‘two units forming it, but additional causal factors as well. Specifically, the effectiveness of division management in getting resources, how well those resources are divided between the two units, and how well the coordination is done between the two units will all influence how well the division performs on its measures. ‘The same process occurs for higher levels in the organization. One division's outputs are combined with those of other divisions to be in- puts for the total organization. In this example, the outputs of the pro- duction division are combined with those of the marketing division to produce sales and revennes for the total organization. These are com- bined with the costs and revenues of other divisions to produce the or- ganizational-level outputs. If the total organization is measured on such factors as return on investment, total revenues, net profits, and so on, new causal factors are again added to the performance measure. In Figure 7-8, the factors shown are the strength of the economy, govern-