Deciding for responsibility and legitimation: alternative interpretations of organizational decision-making

Article Abstract:

Decision making in organizations can serve to assign responsibility and contribute to legitimacy, as well as providing choices and mobilizing action. Theories concerned with decision making have most often been based on the assumption that decisions serve the sole purpose of choice, and focus on providing a method for selecting the best action from among a set of alternatives. Later studies suggested organizational decisions served the purpose of mobilizing action by obtaining commitment from participants involved in a process. Decision making also can assign responsibility for decisions by identifying the decision makers. Decisions that reflect values outside the organization can serve to legitimize and support the organization when the decisions are made public. The degree to which decision-making processes reflect rational norms of standard theory can affect the acceptance of the decisions.

Decision support systems

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The effects of information load and information diversity on decision quality in a structured decision task

Article Abstract:

The effects of diversity and information load on decision quality in a structured decision task are considered. Information load is subdivided conceptually into quantity of repeated dimensions and quantity of different dimensions. Results confirm the hypothesis that the association between the quantity of repeated dimensions and accuracy would be an inverted U-curve, and that a U-curve would also be produced by repeated dimensions and time. Results largely support a further hypothesis that higher diversity would cause lower accuracy and higher time, and that enhanced learning and experience would also cause these same results. Practical implications of findings are also presented.

Analysis, Human information processing

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The effects of the information and data properties of financial ratios and statements on managerial decision quality

Article Abstract:

A study on the influences exerted by information and data contained infinancial ratios and statements on the quality of managerial decisions was presented. A sample of three hundred and sixty people with administrative decision-making experience was used in the study. Results indicate that ratios alone are not sufficient in giving managers adequate information needed in the making of decisions and that ratios combined with statements have higher objective information and data loads and higher subjective data load.

Financial statements, Information theory, Ratio analysis

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