The effects of organizational frames and problem ambiguity on decision making

This paper investigates how organizational climate and information quantity influences choice of decision making strategies. A simulated company with an organizational climate was manipulated to be either supportive or non-supportive of participative decision making methods. Subjects then solved problems in which information available to make a decision was manipulated. Results indicated that climate has an effect on choice of decision making strategies independent of information quantity. A second study was then conducted to assess how the climate manipulation affected subjects' decision-making. Organizational climate information appears to affect decisions in a manner analogous to Tversky and Kahneman's (1981) decision framing model.The contribution of each author is equal for this paper. The order of authorship was determined by a coin flip. This research was supported by Ohio Board of Regents and University of Akron Faculty Research grants to the second author. Portions of this paper were presented at the 1989 Society of Industrial Organizational Psychology Meetings and the 1991 Association of Management Meetings.