Using historical information in the design of a decentralized firm's budgetary planning system
In organizational design, the decentralized multidivisional firm has choice in the generation and use of information for budgetary planning. In this research we investigate the use of four historical information categories for the efficient determination of good plans. Based upon the simulation results of nine experiments for each of two models, we found that historical information of last period's solution, when used to set the initial budgetary plan and/or limit the proposed adjustments, can be efficient in an iterative planning system. The results are also consistent with a contingency theory of organizational design, since the level of environmental uncertainty and the degree of technological interdependency are important contingencies. © 1989.
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Related Subject Headings
- Operations Research
- 4901 Applied mathematics
- 3509 Transportation, logistics and supply chains
- 0103 Numerical and Computational Mathematics
- 0102 Applied Mathematics
Citation
Published In
DOI
ISSN
Publication Date
Volume
Issue
Start / End Page
Related Subject Headings
- Operations Research
- 4901 Applied mathematics
- 3509 Transportation, logistics and supply chains
- 0103 Numerical and Computational Mathematics
- 0102 Applied Mathematics