Planning in ambiguous contexts: the dilemma of meeting needs for commitment and demands for legitimacy

Article Abstract:

A study was conducted to examine the impact of contextual ambiguity, as manifested in pressures for legitimacy and commitment, on planning processes. The relationship between commitment, legitimacy and planning is investigated by looking at the planning practices in nonprofit and entrepreneurial organizations, which are organizations situated in ambiguous contexts. Analysis reveals a managerial dilemma: the need to use informality and vagueness to attain commitment from different interests, and the need to display formalization of managerial practices to obtain legitimacy from important resource suppliers. Elements of this dilemma are used in developing a new planning model for organizations in ambiguous contexts that considers planning as a strategy for resource acquisition instead of a strategy for resource allocation.

Ambiguity

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The relationship between budget participation and job performance: the roles of budget adequacy and organizational commitment

Article Abstract:

The relationship between budget participation and job performance was examined with particular attention to the role of two intervening variables, namely, budget adequacy and organizational commitment. Budget adequacy was defined as the extent to which employees believe that there are enough budgeted resources to meet the requirements of their jobs. Organizational commitment was defined as the extent to which employees are willing to accept organizational goals and undertake activities for the good of the organization. It was hypothesized that employees with sufficient budget resources perform better than those with inadequate resources, and that budget adequacy influences job performance directly as well indirectly through organizational commitment. The findings support the hypothesized relationships.

Performance, Budget, Budgeting, Budgets, Participatory management, Employee loyalty

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Decision making on the basis of expected cost variance: a fuzzy set approach

Article Abstract:

Fuzzy logic is more useful than standard statistical analysis in making business decisions based on expected penalty function associated with cost variance. This was the result of an analysis that aimed to develop a mechanism for business decisionmaking when no 'hard data' is available to the decision maker. By using the Extension Theorem in establishing a fuzzy expected penalty for each venture under consideration and utilizing two means of defuzzification to transform these fuzzy expectations into real numbers, the decision maker is aided into making a non-fuzzy decision.

Planning, Decision-making, Decision making, Usage, Set theory, Fuzzy sets

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