Research On Impact Of Individual Characteristics And Organizational Structure On Organizational Decision Performance In A Dynamic Environment

With the development of modern science and technology, changes in social values and changes in market demand, the market is more competitive:on the one hand, competitive pressure between enterprises and market share to promote the company must ensure that scientific and rational decision-making; on the other hand, the rapidly changing market environment forced the companies need to make decisions anytime, anywhere. In the face of the dynamic and complex market and social, changing decision-making organization becomes more and more enterprises choose. To change decision-making organization, we must first understand what factors influence organizational decision performance under Dynamic environment, and how the factors impact on organizational decision performance. Organization is the main participant of decision activity, it’s composed of individual decision-makers. Characteristics of individual decision-makers will profoundly affect the result of individual decision makers, and the decision result of each individual decision maker in turn linked through organizational structure, and then the decision result of individual decision maker becomes the decision result of organization. So the study of impact of individual characteristics and organizational structure on organizational decision performance in a dynamic environment is very important, this paper use the method of social science computational experiments to research.First, this paper study impact of individual characteristics and organizational structure on organizational decision performance. In modeling the computational experimental model, this paper uses the NK model to model decision alternatives, and construct individual decision maker’s screening evaluation function that reflects individual characteristics, uses and improves the prospect theory to express the individual decision-makers preferences, and aggregates the individual decision makers into organization with two basic organizational structures. The use of model experiments, paper analyzed impact of organizational structure, decision-making capacity and preferences of individual decision-makers on organizational decision performance. Then, the paper introduces environmental dynamics into the first model and builds the dynamic environment model, studies and analysis of impact of environmental dynamics and organizational learning on organizational decision performance and the relationship between environmental dynamics, organizational learning, individual characteristics and organizational structure.Through computational experiments analysis we concluded that:individual decision makers are direct participants in activities, organizational structures can link the individual decision-makers. Individual characteristics and organizational structures influence individual or organizational decision-making process of type Ⅰ error (rejecting a better solution) and Type Ⅱ error (to accept a worse solution) and lead to the probability of organizational search methods (local search and extensive search) changes to affect organizational performance:The individual decision-makers have higher decision-making capacity or more pessimistic and the Hierarchy organizations, they will increase the Type Ⅰ error, reduce Type Ⅱ error, leading to local search. Otherwise, the individual decision-makers have lower decision-making capacity or are more active optimistic and the Polyarchy (Polyarchy, Vote, Average) organizations, they will reduce the Type Ⅰ error, increase Type Ⅱ error, leading to extensive search, and Vote is a relatively stable organization. Environmental dynamics influence organizational decision performance by introducing the random fluctuations into alternatives; it will increase the probability of Type Ⅱ error of individual and organization, and cause organizational decision performance fluctuate and decline. The more volatility environment, the more organizational decision performance decline, but the space that more organizational decision performance decline will be smaller and smaller. In this case, the organization needs to take more rigorous organizational structures (such as hierarchical organization, voting organizations) or the individual decision-makers It can have a higher decision-making ability. Otherwise, in a dynamic environment, in addition to more rigorous structure and higher decision-making capabilities can help organizations to provide the quality of decisions, the organizational learning is also an effective tool to help organizations adaptive. Organizational learning can improve organizational decision performance by its search capabilities, but with the enhanced dynamic environment, the space that organizational learning improves organizational decision performance will be reduced.Finally, this paper thinks that organizational structures, individual characteristics and organizational learning have their own advantages and disadvantages, but also has a complementary relationship. So for companies, the organizational structures must be designed to adapt now some labor (decision-making ability and preferences of individual decision-makers) and the task environment (complexity and dynamics). At the same time, the computational experiment model simulates the basic situation of organizational decision making. If the model wants to simulate the complex situation of organizational decision making in the future, there is much work to be done.