Organizational Energy: A Behavioral Analysis of Human and Organizational Factors in Manufacturing

Abstract

This paper seeks to explore the behavior and embodied energy involved in the decision-making of information technology/information systems (IT/IS) investments using a case within a small- to medium-sized manufacturing firm. By analyzing decision making within a given case context, this paper describes the nature of the investment through the lens of behavioral economics, causality, input-output (IO) equilibrium, and the general notion of depletion of executive energy function. To explore the interplay between these elements, the authors structure the case context via a morphological field in order to construct a fuzzy cognitive map of decision-making relationships relating to the multidimensional and nonquantifiable problems of IT/IS investment evaluation. Noting the significance of inputs and outputs relating to the investment decision within the case, the authors assess these cognitive interrelationships through the lens of the Leontief IO energy equilibrium model. Subsequently, the authors suggest, through an embodied energy audit, that all such management decisions are susceptible to decision fatigue (so-called “ego depletion”). The findings of this paper highlight pertinent cognitive and IO paths of the investment decision-making process that will allow others making similar types of investments to learn from and draw parallels from such processes.