1994 Volume 2 Issue 3 Pages 1-19
In this paper we develop an organizational model of uncertainty handling based on an information processing model. In order to describe effects of organizing strategies, which an organization may employ to cope with its external uncertainty, variables of internal organization are identified and integrated into two indices. These indices are a level of department activity and an extent of programmed activity.
We employ simulation in order to illustrate the effects of organizing strategies by the indices. The organizing strategies are basically composed in relation to a transition to a divisional organization from a functional organization.
In conclusion, we can successfully illustrate the effects of uncertainty handling of organization by the model.
