Why The CEO Chooses Not To Listen:
Information, Reliability And Decision Making In Corporations
Walter Lee and Paul Pangaro
This work was commissioned by Dr Michael C Geoghegan, Research
Fellow, Du Pont Fibers (now Nylon) Research Division, Wilmington,
Delaware, in the course of a consulting relationship with PANGARO
Incorporated on various issues relating cybernetics to the needs
of the modern corporation.
then , it is rational and logical for the manager to
Dr Geoghegan's general request was to work forward from formal
notions of information theory, in order to consider the implications
of communication structures in decision making in corporations.
In a thorough review and software simulation of related work
by Alex Bavelas (whose work was reported in the Proceedings of
the Macy Meetings), we confirmed Bavelas' experimental results
(as reported in other documentation). These showed that although
hierarchical communication structures are invariably more efficient
(i.e., faster) at solving problems in cases of no ambiguity,
that once ambiguity or noise is introduced, peer-based communication
is invariably more effective and more socially compatible with
the individuals involved. In addition it was possible to discern
why this is so, and to actually compute the cost of transactions
(i.e., communications) in corporate decision making.
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