Information-processing ideas are used to develop a set of hypotheses to test a contingency approach to subunit structure directly; whether high-performing subunits with different information-processing requirements have systematically different degrees of communication structure. (Author)

Proposes using an employee relations index (ERI) to measure factors affecting employee relations and job performance ability. Examines five of ten major ERI factors: attenance, turnover, safety, grievances/complaints, and motor vehicle accidents. Discusses weighing the factors and interpreting the outcome. (CSS)