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Related Experiment Videos

Macroergonomic analysis of formalization in a dynamic work system

B M Kleiner1

  • 1Department of Industrial and Systems Engineering, Virginia Polytechnic Institute and State University, Blacksburg 24061-0118, USA.

Applied Ergonomics
|August 13, 1998
PubMed
Summary

Organizational planning systems were tested in a simulation. Highly formalized planning strategies shifted towards less formal approaches in dynamic environments, suggesting potential issues with rigid planning.

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Area of Science:

  • Organizational behavior
  • Decision science
  • Strategic management

Background:

  • Planning systems are common in organizations for decision-making.
  • The effectiveness of formal planning strategies is often debated.
  • Existing research lacks empirical data on the evolution of planning strategies.

Purpose of the Study:

  • To investigate the effectiveness of formal and informal planning strategies.
  • To analyze the dynamics of planning strategies in a simulated organizational context.
  • To identify indicators for measuring formal and informal planning strategies.

Main Methods:

  • A simulation-based experiment was conducted with 72 subjects in 8 groups.
  • Groups were assigned to low formalization, high formalization, or control conditions.

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  • Subjects underwent planning strategy training before a 4-year simulated decision-making task.

    • Main Results:

    • No significant differences in overall performance were observed between groups.
    • Significant differences in planning strategies were detected.
    • Groups using highly formalized strategies tended to adopt less formal approaches over time in dynamic environments.

    Conclusions:

    • Highly formalized planning strategies may not be sustainable in dynamic organizational settings.
    • The findings align with critiques of rigid strategic planning, such as Mintzberg's fallacies.
    • Further research is needed to understand the optimal balance between formal and informal planning.