Abstract
An effectiveness measure for comparing alternative organizational structures is derived and then applied to the evaluation of two three-person organizations. The modeling and analysis of the organizations is carried out using an information theoretic framework in which decisionmakers are described by a two-stage model consisting of a situation assessment and a response selection stage. The total rate of internal processing of each decisionmaker is constrained by bounded rationality, while the performance of the organization must satisfy specified goals. The inter-relationship between performance and bounded rationality is expressed in a generalized strategy space that forms the basis for the effectiveness analysis.
The work was supported by the US Air Force Office of Scientific Research under contract No. AFOSR-80-0229.
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© 1982 Springer-Verlag
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Boettcher, K.L., Levis, A.H. (1982). On the design of information-processing and decisionmaking organizations. In: Bensoussan, A., Lions, J.L. (eds) Analysis and Optimization of Systems. Lecture Notes in Control and Information Sciences, vol 44. Springer, Berlin, Heidelberg. https://doi.org/10.1007/BFb0044409
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DOI: https://doi.org/10.1007/BFb0044409
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