Structural adaptation versus strategy coordination in decisionmaking organizations

This paper presents an analytical model to study the joint impact of organizational structure and message format on the performance of decision-making systems. Unlike the traditional formulation of M-ary hypothesis testing with dependent measurements, we explicitly consider the structure of a task environment, and determine the optimal subtask of each member in the organization. It is shown that the decision accuracy improves if the organization adapts its structure to that of the task; however, the efficiency of such reconfiguration depends on the communication constraints