‘Organizational Linkages: Understanding tho Productivity Paradox (1984) ipsum ng edieperooesD80904S842HIN 11 al cxpygh 1884 2000 Te Nara Acadony of Seionecs.a igh esos Decomrosio 18 PRODUCTTVIY LiNAGES PARADOX +181 1. Prducton 1 2. Pratuten 2 HE BE g it Wo 6 ie We We See now baw Poca! rt Coit Poca fis ty ats Dre ©. Quay 0. Atenance 2 = #8: b: i i oceans Pose epeen ocanaeclaximamows Woes, FIGURE 7-5 Completed contingoney set. cause a given amount of improvement at the low end of the measure may not have the same effect at the high end of the measure. Itis quite ‘common for improvements in the middle range of the indicator to re- sult in large improvements in effectiveness, while improvements at the high end of the indicator result in smaller improvements in effective- ness, In other words, a point of diminishing returns is reached. Put another way, once a certain level of effectiveness is reached, it ‘may be more beneficial to focus on improving another area than to con- tinue working on an area of performance that is already very good. For instance, if the unit producing circuit boards has completed a very high percentage of boards, it may be better to work on improving its only modest attendance even though attendance js not as important overall.