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Author(s):
Kathleen Eisenhardt
Year Published:

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Topic(s):
Human Dimensions of Fire Management
Decisionmaking & Sensemaking

NRFSN number: 16207
Record updated:

In order to make reliable decisions, organizations need to have reliable access to critical information. However, high velocity environments place severe restrictions on information flow. Despite this handicap, many organizations in high velocity environments are still able to achieve relatively high levels of success. This study targets the micro-computer industry, which exists in an environment of continuous change, in order to learn how fast decisions are made and how decision speed connects with performance. Results show that fast-paced decision makers use more information to make decisions and create more alternatives than slow-paced decision makers. Results also indicate that leaders who involve experienced counselors from a variety of levels in the organization in the decision making process make decisions faster than those who invest decision making power only in top-level management. In addition, while past studies find that the existence of conflict slows the speed of decisions, this study finds that conflict resolution has more influence on decision making speed than whether or not a conflict exists. Fast decision makers confront and effectively resolve conflict throughout the decision making process. Lastly, decision makers that looked for ways to integrate decisions that impacted one another were faster than those that did not.

Citation

Eisenhardt K. 1989. Making fast strategic decisions in high-velocity environments. Academy of Management Journal 32 (3), p. 543-576.

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