Information Flow and Worker Productivity

In this paper we are concerned with the design of an organization in the internal decision-making area. Our problem is to develop an effective system of communication and control. Effectiveness (the “pay-off”) will be measured in terms of the effect of the system and organization on the productivity of labor.

We shall be concerned with what information should be where and at what time for proper internal decision making. In accordance with general principles of communication which recent research has spelled out, we will demonstrate a system which appears to concentrate on providing a high probability of (1) aiding members of the group in making right decisions; (2) providing a basis for rational behavior; (3) leaving room for individual group members to make their own decisions.