Adaptive change in corporate control practices

Article Abstract:

Multidivisional organizations are not concerned with what structure to adopt but with how they should exercise control within the divisional form to achieve economic efficiencies. Using an information-processing framework, I examined control arrangements between the headquarters and operating divisions of such organizations and how managers adapted control practices to accommodate increasing environmental uncertainty. Also considered were the moderating effects of contextual attributes on such adaptive behavior. Analyses of panel data from 97 multihospital systems suggested that organizations generally practice selective decentralization under conditions of increasing uncertainty but that organizational age, dispersion, and initial control arrangements significantly moderate the direction and magnitude of such changes. (Reprinted by permission of the publisher.)

Research, Management, Corporations, Adaptability (Psychology), Uncertainty

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Evaluating Commercial Credit Decisions by Analytic Hierarchy Process

Article Abstract:

Analytic hierarchy process (AHP) is an approach to problem solving. This concept involves structuring any complex problem into hierarchical levels. Weighing each element on each level of the hierarchy produces a comparison of the elements noting the strengths with which one element is dominant over other elements. The weights help in the determination among the entities that enable the accomplishment of the objective of the problem. This model is applied to the evaluation of credit risks of companies in the construction industry.

Decision-making, Models, Decision making, Analysis, Statistics, Problem solving, Credit, Industrial management

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