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In recent years there has been increased interest in the effects of internal communication on decision processes. A number of hypotheses relating the… - William H. Starbuck
" "In recent years there has been increased interest in the effects of internal communication on decision processes. A number of hypotheses relating the bias in information to the final decision have been proposed. In this paper we discuss two laboratory experiments which were designed to test two such hypotheses. The first experiment tests the hypothesis that cost and sales estimations are made with the implicit assumption that a biased pay-off structure exists. The second experiment tests explicitly the effects of biased and unbiased pay-off structures on estimation within an organization. An analysis of the data for the two experiments is made and some implications for further research are drawn from the results.
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About William H. Starbuck
William Haynes Starbuck (born Sept. 20, 1934) is an American organizational theorist, and Emeritus Professor of Management at New York University. He contributed to the concepts of self-designing organizations, organizational design, environmental niches, organizational equilibriums made of antithetical processes, relativity through time of levels of aspiration as well as to behavioral research methods and epistemological status
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William Haynes Starbuck
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Another forerunner of modern organization theorists was Andrew Ure, a professor of chemistry. An enthusiastic proponent of “the factory system,” Ure (1835) took a step beyond Adam Smith. Whereas Smith’s pin factory was solely an example of division of labor, Ure pointed out that a factory poses organizational challenges. He asserted that every factory incorporates “three principles of action, or three organic systems”: (a) a “mechanical” system that integrates production processes, (b) a “moral” system that motivates and satisfies the needs of workers, and (c) a “commercial” system that seeks to sustain the firm through financial management and marketing. Harmonizing these three systems, said Ure, was the responsibility of managers.
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Most of the time, organizations generate actions unreflectively and non-adaptively. To justify their actions, organizations create problems, successes, threats and opportunities. These are ideological molecules that mix values, goals, expectations, perceptions, theories, plans, and symbols. The molecules form while people are result watching, guided by the beliefs that they should judge results good or bad, look for the causes of results, and propose needs for action. Because organizations modify their behavior programs mainly in small increments that make sense to top managers, they change too little and inappropriately, and nearly all organizations disappear within a few years.
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