ISSN:
1540-5915
Source:
Blackwell Publishing Journal Backfiles 1879-2005
Topics:
Economics
Notes:
Modelling the resource allocation decision process in a decentralized organization using mathematical programming decomposition approaches has proven intractable for all but the smallest of problems. In this paper three artificial intelligence (AI) techniques are integrated to model the resource allocation decision process, and the solution for a three-level decentralized organization is illustrated. The techniques are (1) the filtered beam search, which selects a list of potential projects at the subordinate level, (2) the world model, which describes the ordinate and superordinate's worlds and their decision-making processes, and (3) the blackboard model, which allows for global, but selective, storage of information. Benefits of the new approach include: several different mechanisms of managerial control may be modelled, the true information flow in an organization is more closely mirrored, and problems of a more realistic size are now viable. There are three primary ways in which the new model could be useful to management: The desirability and effects of different organizational structures can be modeled, the efficacy of various coordination mechanisms along the organizational structure can be examined, and a subset of projects from a wider list of possibilities can be selected. Also, an example is given showing how the model may be extended to scenarios with asymetric information and divergence of preferences, whereby subordinates have different objectives than their managers and where there is no way for managers to verify the truthfulness of their subordinates' responses.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1111/j.1540-5915.1992.tb00434.x
Permalink