Strategic-Decision Quality in Public Organizations: An Information Processing Perspective

• Published date: 01 January 2018
• Date: 01 January 2018
• DOI: 10.1177/0095399716647153
• Subject Matter: Articles

Administration & Society

2018, Vol. 50(1) 131 –156

© The Author(s) 2016

DOI: 10.1177/0095399716647153

journals.sagepub.com/home/aas

Article

Strategic-Decision

Quality in Public

Organizations: An

Information Processing

Perspective

Bert George1 and Sebastian Desmidt1

Abstract

This study draws on information processing theory to investigate predictors

of strategic-decision quality in public organizations. Information processing

theory argues that (a) rational planning practices contribute to strategic-

decision quality by injecting information into decision making and (b) decision

makers contribute to strategic-decision quality by exchanging information

during decision making. These assumptions are tested upon 55 Flemish pupil

guidance centers. Rational planning practices are operationalized as strategic

planning, performance measurement, and performance management.

Information exchange by decision makers during decision making is

operationalized as procedural justice of the decision-making process.

Results suggest that procedural justice, strategic planning, and performance

management contribute to strategic-decision quality while performance

measurement does not.

Keywords

rational planning, decision making, strategic planning, performance measurement,

performance management, procedural justice

1Ghent University, Ghent, Belgium

Corresponding Author:

Bert George, Department of HRM and Organizational Behavior, Faculty of Economics and

Business Administration, Ghent University, Henleykaai 84, BE-9000 Ghent, Belgium.

Email: bert.george@ugent.be

647153AASXXX10.1177/0095399716647153Administration & SocietyGeorge and Desmidt

research-article2016

132 Administration & Society 50(1)

Introduction

In the slipstream of new public management, rational planning has conquered

the public sector by storm (Boyne, 2001; Bryson, 2010). Rational planning is

a theoretical framework of strategic management that centers on a rational

approach to strategy formulation through strategic planning and strategy

implementation through performance measurement and performance man-

agement (Andrews, Boyne, Law, & Walker, 2009b; Poister, Pitts, & Edwards,

2010). Rational planning has been the subject of several legislative provi-

sions worldwide such as Best Value in the United Kingdom and the

Government Performance and Results Act in the United States (Bovaird,

2008; Boyne, Gould-Williams, Law, & Walker, 2004; Poister & Streib, 2005).

Key to rational planning’s popularity is the assumption that it contributes to

strategic-decision quality in the public sector by offering a counterweight to

political or intuitive decision making (Boyne, 2001; Walker, Andrews,

Boyne, Meier, & O’Toole, 2010). From an information processing perspec-

tive, this assumption is, at least theoretically, valid (Elbanna, 2006; Rogers,

Miller, & Judge, 1999). Rational planning practices can inject information

into decision-making processes by offering, for instance, focus on strategic

goals, insights into the organizational environment, and insights into perfor-

mance information (e.g., Boyne et al., 2004; Poister, 2005; Taylor, 2011).

Although these theoretical arguments prompt the assumption that rational

planning practices can be viewed as significant predictors of strategic-

decision quality in public organizations, the validity of this assumption is

debated. First, while several scholars have provided arguments for the effec-

tiveness of rational planning practices in public organizations (e.g., Bryson,

2011; Joyce, 2014), there has been an equal amount of criticism geared

toward its inappropriateness for the public sector (Ugboro, Obeng, & Spann,

2011). For instance, Bovaird (2008) and Radin (2006) indicate that, due to

their mechanistic nature, rational planning practices are inapplicable in the

complex, adaptive context of public organizations. In addition, three recent

reviews on the topic acknowledged that the debate on rational planning’s

effectiveness in public organizations is far from over due to the lack of con-

clusive and generalizable evidence (Bryson, Berry, & Yang, 2010; George &

Desmidt, 2014; Poister et al., 2010). Second, the empirical evidence, albeit

limited, on rational planning’s effectiveness in public organizations has, so

far, centered on performance-related outcomes (e.g., Andrews, Boyne, Law,

& Walker, 2009a; Jung & Lee, 2013), while empirical studies focusing on the

output of rational planning practices (e.g., strategic-decision quality) are, to

our knowledge, lacking (Bryson, Crosby, & Bryson, 2009; Poister et al.,

2010). Third, research on rational planning practices in public organizations