In this book, we have systematically examined organizational performance (in terms of decision choices) under various factors discussed in the organizational literature with focus on the information processing aspect of the organization from an open system’s perspective. The results from analyses of a comprehensive formal framework and multiple organizational cases show that (1) time pressure affects organizational performance, and it severely degrades organization’s ability to proceed normal decisions as the level of time pressure increases. Further, experientially trained organizations are more sensitive to time pressure than operationally trained organizations. (2) Organizations are often under stress, but they can usually survive with a right design if only under external stress. However, when faced with internal stress, organizational performance is degraded, and the more the number of internal murphies the worse the performance. Further, operationally trained organizations on average are more susceptible to internal stress than experientially trained organizations .(3) Quality of information is most vital to organizational performance. Thus organizations whose decision making is based on information processing, should eliminate such murphies first. For organizations that base their decisions mainly on historical information, it is also very important to retain experienced and well-trained agents to maintain high performance.
KeywordsInternal Stress Time Pressure Organizational Performance Organizational Design Formal Framework
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