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Tasks and Organizations: A Signal Detection Model of Organizational Decision Making

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  • Andras Pete
  • David L. Kleinman
  • Krishna R. Pattipati

Abstract

This paper presents a mathematical model to study the joint impact of organizational design and of the task environment on the decision performance of hierarchical organizations with limited internal communication. The problem context is a special class of distributed situation assessment problems, where possible patterns of binary variables are to be classified on the basis of partial and noise‐corrupted information. Structural properties of tasks and organizations are described using a graph formalism, and optimal decision strategies at all decision makers are determined. Organizational expertise is characterized in the form of a Team Relative Operating Characteristic (TROC) curve, thereby replacing the organization by an equivalent single decision maker. Implementing the model, issues of task decomposition and the process of matching organizations with tasks are discussed.

Suggested Citation

  • Andras Pete & David L. Kleinman & Krishna R. Pattipati, 1993. "Tasks and Organizations: A Signal Detection Model of Organizational Decision Making," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 2(4), pages 289-303, December.
    • Handle: RePEc:wly:isacfm:v:2:y:1993:i:4:p:289-303
    DOI: 10.1002/j.1099-1174.1993.tb00048.x
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    References listed on IDEAS

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    1. Henry Ogden Armour & David J. Teece, 1978. "Organizational Structure and Economic Performance: A Test of the Multidivisional Hypothesis," Bell Journal of Economics, The RAND Corporation, vol. 9(1), pages 106-122, Spring.
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    3. Shmuel Nitzan & Jacob Paroush, 1984. "Are qualified majority rules special?," Public Choice, Springer, vol. 42(3), pages 257-272, January.
    4. Thomas W. Malone, 1987. "Modeling Coordination in Organizations and Markets," Management Science, INFORMS, vol. 33(10), pages 1317-1332, October.
    5. Kathleen Carley, 1992. "Organizational Learning and Personnel Turnover," Organization Science, INFORMS, vol. 3(1), pages 20-46, February.
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    1. Gary V. Howorka & Lorien A. Anderson & K. Michael Goul & Michael Hine, 1995. "A Computational Model of Coordination for the Design of Organizational Decision Support Systems," Intelligent Systems in Accounting, Finance and Management, John Wiley & Sons, Ltd., vol. 4(1), pages 43-70, March.

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