| Summary: | This thesis was designed as part of the development of a theory for the control of the Capital investment process. Previous studies of capital investment have been broadly related to the profit maximising hypothesis or to studies of the processes of decisionmaking. The research reported here was based upon the concept of the organisation as an open system. The empirical work was undertaken in one large U.K. nationalised Industry through observation of a cycle of capital budgeting, studies of organisation documents, interviews with managers and a questionnaire. The principal conclusion of this research is that the theoretical approach developed was found to be substantially supported in that (i) the perceptions and behaviour of the managers in the process of capital . investment was found to be related to their organisational and environment linkages, (2) the process of capital investment was differentiated following the organisational differentiation, (3) the capital investment process was found to be an integrative process for top management, (4) managers estimates of capital budgets were found to be related to their orga.n isational and , environment linkage and uncerta~nty generated in the process and (5) managers' perception of the interdependence of capital budgeting . between differentiated units was found to be related to ,organisation and environment linkages. The use of capital budgets in the appraisal of managerial perfonnance was found to be subsumed in the other dimensions of the managers jobs. However, the research must be extended to incorporate empirical tests in more diverse organisations before any ,firm conclusions may be drawn.
|
|---|
