Strategic-Decision Quality in Public Organizations: An Information Processing Perspective

Abstract

This study draws on information processing theory to investigate predictors of strategic-decision quality in public organizations. Information processing theory argues that (a) rational planning practices contribute to strategic-decision quality by injecting information into decision-making and (b) decision-makers contribute to strategic-decision quality by exchanging information during decision-making. These assumptions are tested upon fifty-five Flemish pupil guidance centers. Rational planning practices are operationalized as strategic planning, performance measurement and performance management. Information exchange by decision-makers during decision-making is operationalized as procedural justice of the decision-making process. Results suggest that procedural justice, strategic planning and performance management contribute to strategic-decision quality while performance measurement does not. KeywordsRational planning, decision-making, strategic planning, performance measurement, performance management, procedural justice 2 IntroductionIn the slipstream of new public management, rational planning has conquered the public sector by storm (Boyne, 2001;Bryson, 2010). Rational planning is a theoretical framework of strategic management that centers on a rational approach to strategy formulation through strategic planning and strategy implementation through performance measurement and performance management (Andrews, Boyne, Law, & Walker, 2009b;Poister, Pitts, & Edwards, 2010). Rational planning has been the subject of several legislative provisions worldwide such as Best Value in the UK and the Government Performance and Results Act in the US (Bovaird, 2008; Boyne, GouldWilliams, Law, & Walker, 2004;Poister & Streib, 2005). Key to rational planning's popularity is the assumption that it contributes to strategic-decision quality in the public sector by offering a counterweight to political or intuitive decision-making (Boyne, 2001;Walker, Andrews, Boyne, Meier, & O'Toole, 2010). From an information processing perspective, this assumption is, at least theoretically, valid (Elbanna, 2006;Rogers, Miller, & Judge, 1999). Rational planning practices can inject information into decision-making processes by offering, for instance, focus on strategic goals, insights into the organizational environment, and insights into performance information (e.g. Boyne et al., 2004;Poister, 2005;Taylor, 2011).Although these theoretical arguments prompt the assumption that rational planning practices can be viewed as significant predictors of strategic-decision quality in public organizations, the validity of this assumption is debated. First, while several scholars have provided arguments for the effectiveness of rational planning practices in public organizations 2010). Second, the, albeit limited, empirical evidence on rational planning's effectiveness in public organizations has, so far, centered on performance-related outcomes (e.g. Andrews, Boyne, Law, & Walker, 2009a;Jung & Lee, 2013), while empirical studies focusing ...

Institutional isomorphism, negativity bias and performance information use by politicians: A survey experiment

“…Finally, our findings have implications for policy‐makers and other public sector practitioners. Simply enforcing performance measurement systems upon public organizations does not necessarily imply that relevant performance information is produced and used (Taylor ; George and Desmidt ). We illustrate that thorough scrutiny is necessary when devising ways in which performance information will be presented to politicians.…”

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We Know the Yin—But Where Is the Yang? Toward a Balanced Approach on Common Source Bias in Public Administration Scholarship

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“…First, the study answers the call from Bryson, Berry, and Yang () to focus more on the practice of strategic planning, because attention to the social and political mechanisms underlying public strategic planning processes can provide insights into the determinants of strategic planning effectiveness. By introducing concepts from the cognitive perspective in strategic management into public strategic planning research, the study counterbalances the contradiction that although “it seems almost inconceivable that strategic planning could succeed [without] some reasonable amount of shared knowledge and understanding” (Bryson, Crosby, and Bryson , 176), insights on the level of shared understanding, as the outcome of a decision‐making process, in public organizations are to a great extent lacking (George and Desmidt ).…”