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Productivity Paradox

We (me and my classmate EMBA 7713B) have over MIS 750 classes almost 4 classes. Usually in any subject I always use one word or term and adapt it in my daily conversation.

Like economy, i love to used demand and supply.

"Boss, when we create a demand by increasing their allowance..of course staff will increase their output as per our request.."(hohoho-I dont know what my boss thinking of me..either I am show off or I have a weird dream last night..)

For management information system, i really love a word productivity paradox.

I used to feel increased one level higher any time I used unfamiliar words in my organization.(huhuh..naik bakul angkat sendiri!!)

"If we provide internet access for non exec staff just to ensure they being updated through email, don't you think its only create the productivity paradox? For sure they use that as privilege  for personal usage and maybe tend to not focus for job anymore. Just give them intranet only..."

(Did he ever think that I also use internet access to do my assignment during office hour?)

So what actually productivity paradox?
Octopus.. (So many facilities/ technologies but at the same time not necessary doing a work)

Paradox has been defined as discrepancy between the investment in IT growth and the national level of productivity. The term “productivity paradox” became popularized after being used in the title of a 1993 paper by MIT’s Erik Brynjolfsson, a Professor of Management at the MIT Sloan School of Management, and the Director of the MIT Center for Digital Business.(Cummings, 2011).

In a summary we can say, high investment in technology doest necessary will increase the productivity or output in organizations or country or national level.

Like what we discussing during class last Sunday, are investment from government to IT development in MDEC really add the GDP (gross domestic product) for Malaysia?

I read a report from Malaysia Investment Performance for year of 2011, government investment in biotechnology contributes about two percent of the GDP. It is estimated by 2020 the industry will contribute approximately 5 per cent of national GDP with total investments about RM8 billion and employment of 280,000.

This can be conclude as investment in technology doesn't matter can create productivity paradox. For ensure paradox wont happen, below are the tips:

  • Avoid wrong measurement of outputs and inputs.
  • Reduce lags due to learning and adjustment
  • Better redistribution and dissipation of profits
  • Avoid mismanagement of information and technology




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