Francis D. Tuggle

Strategic decision processes and the design of accounting information systems: Conceptual linkages

Abstract Although the literature on accounting systems has traditionally concentrated on the inputs and outputs of decision making, the decision process itself must also be considered if an information system is to be of maximum value. Therefore, in this paper we address the issue of designing accounting information systems which provide information in order to facilitate the decision making process . More specifically, we will explore the conceptual links between the strategic decision process and the specific information needed to facilitate such a process. In developing these links we draw heavily from the research on strategic decision processes; coupling that body of research with accounting theory allows the specification of design desiderata for accounting information systems.

The Bureaucratic Model in University Budgeting: An Alternative Explanation to Power

Budgeting research often investigates the degree to which budgeting decisions are based upon rational, bureaucratic models. Because measures of instructional workload are indicative of the bureaucratic model in university budgeting, this paper examines: (1) the relationship between instructional workload and the budgeting of personnel positions and (2) how this relationship changes as personnel positions become more scarce. The longitudinal data gathered in this research suggest a direct relationship between the bureaucratic model and personnel allocations. In addition, the tendency to use the bureaucratic model increases as personnel positions become more scarce, a finding that differs from the results reported in the studies of dollar budgeting. The results of previous studies are integrated with the data reported here and implications of using the bureaucratic model in university budgeting are discussed.

Informational impediments to the use of capital budgeting models

The primary purpose of this study was to empirically examine whether or not informational impediments impair or alter decision making, with specific focus on capital budgeting decisions. Based on detailed interviews of senior corporate executives, it appears that management information systems (MIS) are less than adequate in providing the information items required to utilize the non-naive methods of capital budgeting. It is therefore suggested that the MIS concept be vastly broadened in regard to such decisions.

Simulation of an individual making decisions under uncertainty

A computer simulation model, SIDIP (Simulation of Individual Decisions through Information Processing), of a person making nine decisions under uncertainty is sketched. Eight of a subjects (Ss) choices are consistent with the Laplace or maximize expected value criteria and Ss other is consistent with the Savage (minimax regret) criterion (see Luce and Raiffa, 1957). SIDIP implies that the subject does not use the conventional computational processes dictated by those criteria. SIDIP reproduces Ss articulated choice behavior: inconsistent use of choice criteria, rejection of some alternatives, and eventual choice from the preferred alternatives. Analysis of information processing models of suboptimal decision behavior suggests operational techniques by which decision making can be improved.

In the blink of an electronic eye: A prospectus

Some potential uses of computers for education and training paradigms are discussed. These capitalize on the capabilities to provide analog feedback about ongoing “real-time” events. In particular, we examine the use of computers to detect nuances and subtleties in rhythm and timing. Examples are suggested, including new controls for interactive computers and ways of using such machines for training in motor skills.

On the validation of descriptive models of decision-making

Abstract A methodological procedure is outlined which addresses several issues concerning descriptive models of individual human decision-making: whether or not the focal model is ‘adequate’, ‘too complex’, and ‘acceptable’. This methodology for iterative model development and validation is illustrated on three successive computer simulation models of three subjects each making nine different decisions under uncertainty. The methodology demonstrates why the third model is judged to be adequate, not too complex, and acceptable.

Product Differentiation and Market Segmentation in Graduate Management Education

This paper presents a general theory of strategic management defined in any institutional setting as a process of resource deployment based on the managerial assessment of organizational needs. The theory is applied to the specific case of strategic competition in the graduate management education industry through use of the concepts of product differentiation and market segmentation from marketing science. The strategic competition among graduate management programs occurs in significant degree along these two dimensions. We argue that there are four basic models of graduate management education. These models are different strategies for image formation and faculty management, built around curriculum design as the central linchpin.

Book reivew: ARTIFICIAL INTELLIGENCE IN ECONOMICS AND MANAGEMENT. Edited by L. P. Pau (North-Holland 1986)

This book is a collection of thirty-three of the papers written after the International Workshop on Al in Economics and Management, which was held March 12 - 14, 1985, in Zurich, Switzerland. The main sponsor was the International Federation of Automatic Control, with multiple co-sponsors (ACM, IEEE-CS, IFORS, IFIP, ECCAI, etc.). Being a collection of thirty-three papers spread out over 288 pages (plus xv), the papers are necessarily short: the shortest is four pages and the longest is eighteen pages, although the latter has one page of references and seven pages of figures. Seventeen of the papers are seven, eight, or nine pages in length; of the remaining sixteen, eight are shorter and eight are longer.

The value of an intentionally mis-designed simulation

An effective and successful multi-purpose class-room experience was developed using an intentionally mis-designed simulation model. Our design philosophy, of intentionally misrepresenting reality with a simulation model, was completely counter to the maxims and precepts to be found in standard reference texts:l, 2 make the model as analogous as possible to reality, within time and money constraints, and with regard to the need for parsimony. Our motives in misdesigning the model were to educate a class of managers: the potential usefulness of simulation models, how to detect inadequate simulation models, and effective ways of using consultants.