Macroergonomic analysis of formalization in a dynamic work system

Planning systems are widely accepted and used for organizational decision making, but do planning systems actually work? A simulation-based experiment was used to develop a set of indicators to measure and analyze formal and informal planning strategies. Seventy-two subjects participated. Eight planning groups of three members were assigned to a low formalization, high formalization and a control condition. Following planning strategy training, groups performed an organizational decision-making task for four simulated years. While differences in performance were not significant, significant differences in strategy were found and an interesting temporal effect was detected. In a dynamic environment, the groups exhibiting highly formalized strategies migrated in the direction of lower formalization. Results supported are discussed in terms of Mintzberg's [The Rise and Fall of Strategic Planning, 1994, The Free Press, New York] fallacies of planning.