Preferences in teams and hierarchies

This paper describes the methodology developed for a laboratory for project selection and the results of use of the computerized ranking procedure for other complex managerial decisions. In addition to project selection, the system is feasible and instructive in personnel selection, comparison of management strategies, purchasing decisions and merit-based distribution of awards. The massive input required by many existing systems is not necessary for this absolute deviation ranking system. Up to 20 attributes and 200 projects can be compared. Measures of consistency and reliability arc proposed for estimating the validity of the final weights. Preliminary experiments and actual use of the system provide empirical validation. The system offers an organized, structured way of making decisions which enhances the identification and subsequent refinement of criteria considered, and provides a concise, highly credible format for presentation and justification of decisions.