MEASURING SUBUNIT EFFECTIVENESS

Effectiveness criteria and their importance weightings for various subunits in a manufacturing organization are examined and the models developed for major groupings of subunits were found to have reasonable predictive power.

Abstract

The literature suggests that a multivariate approach to the measurement of effectiveness is preferred. The present study uses a policy‐capturing methodology to examine effectiveness criteria and their importance weightings for various subunits in a manufacturing organization. Effectiveness criteria and their weightings were found to vary across individual subunits. The models developed for major groupings of subunits were found to have reasonable predictive power. Finally, the predictive power of these general models varied with the degree of goal similarity among the subunits in the grouping. Useful applications of the results for managerial decisions are explored.