SEMAINE D'ÉTUDE SUR LE ROLE DE L ANALYSE ECONOMETRIOUE ETC. 1015 
For non-economic or hybrid organizations, the question of 
the conversion of an average productivity-participation poten- 
tial curve into an extra-returns curve is still more difficult. For 
a system planning bureau, having jurisdiction over all local, 
regional and national planning, change in average productivity 
may be associated with change in the quality of the service 
it provides (as measured by the effectiveness of its planning for 
Dollars 
. x{ra 
Pelurns 
social welfare). But, as we al! know, and as is the case for 
many economic, non-economic and hybrid organizations, it is 
exceedinglv difficult to measure changes in quality, to price 
positive effect upon organization maintenance. (See James E. McNulty, 
Some Economic Aspects of Business Bureaucracy, Wharton School, Univer 
sity of Pennsylvania, 1962, mimeographed, pp. 43-53.) In this connection 
McNULTy and others have suggested the following relationships: 
1) when there is a highly centralized decision-making structure and all flows 
are vertical, lateral communication (and thus morale and average pro 
ductivity) is relatively low; 
2) with decreases in centralization there tends to be increase in lateral com. 
munication (and thus morale and average productivity); 
however, when the decision-making structure tends to be highly decen- 
tralized (approaches local autonomy) lateral communication (and hence 
morale and average productivity) may tend to decline. 
Consequently, the « extra-returns » function associated with participation 
potential is to be adjusted for the lateral communications factor when this 
factor is a variable for a set of possible decision-making structures 
3) 
21 Isard - pag. 12