A DYNAMIC PROGRAMMING MODEL FOR OPTIMAL ALLOCATION OF DECISION TIME

Recurrent decision making by a lower-level manager can be viewed as a sequential decision process in which time and uncertainty are limiting factors. Under these conditions, the manager must determine how to best utilize his decision making time consistent with his own particular set of decision values. A dynamic programming model was devised to determine the optimal (consistent) allocation of decision time among five different types of problems for a sequence of simulated recurrent decision situations. Fifty-one lower-level managers were interviewed about their use of decision time and decision procedures. The model was validated by comparing model assumptions and results with the findings from the interviews. The model was used to determine the effects of variations in the levels of time available and uncertainty upon the optimal allocation of decision time.