Full text: Study week on the econometric approach to development planning

1014 PONTIFICIAE ACADEMIAE SCIENTIARVM SCRIPTA VARIA - 26 
Just as in demand curve estimation, there are many com- 
plex problems in the estimation of an average productivity- 
participation potential curve. We cannot discuss these problems 
here. Once an average productivity-participation potential 
curve is estimated, for certain economic-type organizations, can 
such a curve be converted into an « extra-returns » curve? Can 
a total output curve be constructed where total output of the 
organization is in part a function of P? When price of the 
output is unaffected by changes in total output associated with 
variation in P, can such changes be multiplied by the constant 
price to determine the extra-returns (positive or negative) cor- 
responding to each value of P (relative to some base value 
of P)? When price of the output falls with increase in total 
output ,then, given a price-output function, can change in total 
revenue and thus extra-returns for any increase in P be de- 
termined? With reference to a defined set of decisions or to 
decisions on a concrete issue or set of concrete issues, can the 
extra-returns curve be represented, for example, by a curve 
such as curve CC in Figure 3? (8). 
Approach to a Modified Theory of Organization and Management, and 
CHRIS ARGYRIS, Understanding Human Behavior in Organisations: One 
Viewpoint, both in Mason Haire (ed), « Modern Organization Theory », 
John Wiley, New York, 1959. 
As VROOM states, after reviewing the literature: 
« When the entire pattern of results is considered, we find substantial 
basis for the belief that participation in decision-making increases producti- 
vity. There is both experimental and correlational evidence indicating that 
high levels of influence by workers in making decisions that they are to 
carry out result in higher productivity than lower levels of influence. It 
should be noted, however, that not all the findings are consistent with this 
generalization. The results of both Lewin, LIPPITT and WHITE (1939) and 
Morse and REIMER (1956) suggest that, under some conditions higher pro- 
ductivity may be achieved with use of more autocratic methods ». . 
VrooM urges careful investigation of the relationships between changes 
in average participation in decision making and resulting changes in the 
quality of decisions made, the strength of group standards regarding execu- 
tion of the decisions and the worker’s « ego involvement » in the decisions. 
‘See Victor R. VwrRooM. Work and Motivation, Tohn Wilev. New York 
forthcoming). 
(8) Note that in the hierarchical tree-structure which has been assumed, 
lateral communication is precluded. However, it may be hypothesized that 
at least un to a point lateral communication is highly desirable and has a 
‘121 Isard - pag. 12
	        
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