The goal is to achieve a more comprehensive understanding of the relationship
between the personality characteristics of the decision-maker, the information system and the degree of individual IO.
We develop a conceptual model to investigate managerial decision-making under
IO and examine the trade-off between information processing capacity and information processing requirements. Considering the abundance of research done in this
area, we impose a number of restrictions, thus making the research feasible. In our
terms, information processing capacity is determined by the cognitive and personality characteristics of the decision-maker. Information processing requirements that
are imposed by a task are taken as given. However, the decision-maker is free in
choosing information acquiring and information processing behaviour. The information system, the main source of the internal corporate data, is assumed to be the
most influential determinant of the organizational context. The efficiency of the
information system and the quality of the information output thus affects individual
decision-making in a significant way, reinforcing or eliminating IO.
Indeed, one particular way to both increase the quality of organizational-level
decision-making and to increase sustainability within organizations and improve
health conditions in organizations is to attempt to reduce information overload. At
the end of this chapter, we will discuss several countermeasures for information
overload.
2 Theory and Propositions
2.1 The Relation Between Information Overload,
Sustainability and Organizational-Level
Decision-Making Quality
The rational decision-maker systematically looks for the decision that will maximize
results. The obtained solutions must be as close as possible to the optimal solution.
We assume that managers have perfect information, have unlimited information
processing capacity, will end up with the optimal solution and be able to predict the
consequences of actions. Simon (1955) presented the behavioural decision model . It
studies the processes that managers actually use when selecting from among alternatives. In the behavioural decision model, decision-makers are affected by bounded
rationality. This refers to the idea that people are limited in the processing of
information by constraints including their information processing capabilities. Due
to these limitations, decision-makers are forced to make decisions that are just good
enough or decisions that are satisficing. So in the rational decision model, people
look for the optimal solution, whereas in the behavioural decision model, people
look for the most satisficing solution. In this chapter, we position ourselves in the
behavioural decision model and argue that IO is another important limitation in the
decision-making process.
9 Strategic and Managerial Decision-Making for Sustainable Management: Factors. . .
163
between the personality characteristics of the decision-maker, the information system and the degree of individual IO.
We develop a conceptual model to investigate managerial decision-making under
IO and examine the trade-off between information processing capacity and information processing requirements. Considering the abundance of research done in this
area, we impose a number of restrictions, thus making the research feasible. In our
terms, information processing capacity is determined by the cognitive and personality characteristics of the decision-maker. Information processing requirements that
are imposed by a task are taken as given. However, the decision-maker is free in
choosing information acquiring and information processing behaviour. The information system, the main source of the internal corporate data, is assumed to be the
most influential determinant of the organizational context. The efficiency of the
information system and the quality of the information output thus affects individual
decision-making in a significant way, reinforcing or eliminating IO.
Indeed, one particular way to both increase the quality of organizational-level
decision-making and to increase sustainability within organizations and improve
health conditions in organizations is to attempt to reduce information overload. At
the end of this chapter, we will discuss several countermeasures for information
overload.
2 Theory and Propositions
2.1 The Relation Between Information Overload,
Sustainability and Organizational-Level
Decision-Making Quality
The rational decision-maker systematically looks for the decision that will maximize
results. The obtained solutions must be as close as possible to the optimal solution.
We assume that managers have perfect information, have unlimited information
processing capacity, will end up with the optimal solution and be able to predict the
consequences of actions. Simon (1955) presented the behavioural decision model . It
studies the processes that managers actually use when selecting from among alternatives. In the behavioural decision model, decision-makers are affected by bounded
rationality. This refers to the idea that people are limited in the processing of
information by constraints including their information processing capabilities. Due
to these limitations, decision-makers are forced to make decisions that are just good
enough or decisions that are satisficing. So in the rational decision model, people
look for the optimal solution, whereas in the behavioural decision model, people
look for the most satisficing solution. In this chapter, we position ourselves in the
behavioural decision model and argue that IO is another important limitation in the
decision-making process.
9 Strategic and Managerial Decision-Making for Sustainable Management: Factors. . .
163