Consultant: The dramatic improvements in productivity achieved during the Industrial Revolution resulted in large par...

AndreaK on November 16, 2019

Hi @Kath,

For a paradox or resolve question such as this, our goal is to explain how two seemingly contradictory ideas could both be true. Unlike many LR questions, we aren't given a conclusion here - just some seemingly incompatible ideas. One way to go about solving these is to think about circumstances that could lead both of those ideas to be true at the same time.

For our first idea, we are told that the dramatic improvements in productivity achieved in the industrial revolution are due to two factors, namely standardization of processes coupled with centralization of planning/decision making. In the second sentence, the word "yet" introduces a contradictory idea (Think words like: however, nevertheless, despite this, etc. These all similarly help set up the introduction of a contradictory idea.). In recent years, many already productive companies have further improved their productivity by giving individual employees greater influence.

Initially, we were told productivity came from centralization. But in the second idea, we are told that productivity comes from decentralization (individual gets influence).

So, how do we tie these two together? It is important to take note that in the presentation of each idea, the circumstances under which productivity came from were different. So, let's try using this gap to explain the situation.

Answer choice E is our correct answer here.

E) Increases in productivity in highly productive companies (situation 2's circumstances) depend on management's (centralization) broad application of innovative ideas solicited from individual employees (decentralization) about their work.

D) How do we know that the many already productive companies from the stimulus are those companies? Additionally, those innovations of the IR that are only now being applied (centralization of planning) doesn't explain, then, why putting the power in the hands of less centralized decision makers is bringing about productivity.

Hope this helps!