The Evaluation of Performance Measures in the Presence of Interdependent Organizational Activities and Components

A methodology for the evaluation of performance measures in organizations having interdependent activities and components is provided. An approach to ordering information within ill-structured problem environments is based on approximate matrix representations of management objectives and the properties of performance measure instruments. These matrix descriptions give rise to reduced descriptions of instrument properties upon which value functions are assessed. These partial value functions are nested within an overall preference function whose form is defined for a range of component and activity independence conditions.