‘Organizational Linkages: Understanding tho Productivity Paradox (1984)
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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