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The Aggregation Of Estimates In Hierarchial Organizations

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  • A. J. Berry
  • D. T. Otley

Abstract

This paper explores two issues in the formation of expectations in hierachically ordered organizations ‐ the estimates of events made by individuals at one level and the coupling of these estimates to those made at the next level in the organization. Data from two field studies are used to illustrate the changes in risk bearing imposed by close coupling of estimates at two different levels and the potential reinforcement of bias in estimation which coupling may engender.

Suggested Citation

  • A. J. Berry & D. T. Otley, 1975. "The Aggregation Of Estimates In Hierarchial Organizations," Journal of Management Studies, Wiley Blackwell, vol. 12(1‐2), pages 175-193, March.
    • Handle: RePEc:bla:jomstd:v:12:y:1975:i:1-2:p:175-193
    DOI: 10.1111/j.1467-6486.1975.tb00893.x
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    Cited by:

    1. Arnold, Markus & Artz, Martin, 2019. "The use of a single budget or separate budgets for planning and performance evaluation," Accounting, Organizations and Society, Elsevier, vol. 73(C), pages 50-67.

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