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