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Beyond a traditional budgeting orientation: Towards a commitment to general decision assurance (GDA)
Conference paper   Open access

Beyond a traditional budgeting orientation: Towards a commitment to general decision assurance (GDA)

D.A. Holloway and J.D. De Reuck
Asia Pacific Interdisciplinary Research in Accounting Conference (Adelaide, S.A, 07/2001)
2001
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Abstract

This paper critically evaluates and questions the primacy of accounting-based budget data in the decision-making process (usually at the strategic management level) within organisations. It proposes a theoretical synthesis of Peirce’s account of social inquiry and Habermas ’ communicative action rationality to construct an epistemically robust, collectively oriented decision-making framework. The resulting General Decision Assurance (GDA) theory is argued to have the potential to significantly improve the decision-making process utilised by organisations in the emerging knowledge economies. GDA theory postulates that optimal decision-making which a particular group of decision makers can construct in a world of uncertainty and risk is a pragmatic, recursive and democratised process. The theory minimises the role of power and authority, focuses on the force of the ‘better argument ’ and results in the selection of an epistemic ‘best-bet ’ decision option, which is subjected to a rigorous, quantitative and qualitative performance-measure monitoring and feedback process.

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