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Designing Workflow Coordination: Centralized Versus Market-Based Mechanisms

Author

Listed:
  • Jui Chiew (J. C.) Tan

    (Department of Systems Engineering, University of Pennsylvania, Philadelphia, Pennsylvania 19104-6315)

  • Patrick T. Harker

    (Department of Operations and Information Management, University of Pennsylvania, Philadelphia, Pennsylvania 19104-6366)

Abstract

As a result of the increasing diffusion of decision-making within and between organizations, distributed scheduling methods have been proposed as alternatives to centralized, hierarchical, top-down production control schemes. While distributed scheduling methodologies are appealing, one must first address the fundamental questions of when and where such methods are appropriate. This paper seeks to provide answers to these questions. Using a generalized workflow framework, this paper models and compares the total expected costs of using decentralized and centralized organizational designs to coordinate the flows of information and work. This comparison allows one to define the characteristics of work environments where distributed scheduling methods are more suitable than hierarchical, top-down production approaches. Finally, from this analysis, one can conclude that distributed scheduling methods work well for systems where information technology is inexpensive relative to production cost, processing times are relatively long, and where the number of agents in the system is not too large.

Suggested Citation

  • Jui Chiew (J. C.) Tan & Patrick T. Harker, 1999. "Designing Workflow Coordination: Centralized Versus Market-Based Mechanisms," Information Systems Research, INFORMS, vol. 10(4), pages 328-342, December.
    • Handle: RePEc:inm:orisre:v:10:y:1999:i:4:p:328-342
    DOI: 10.1287/isre.10.4.328
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    References listed on IDEAS

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    1. Sukumar Rathnam & Vijay Mahajan & Andrew B. Whinston, 1995. "Facilitating Coordination in Customer Support Teams: A Framework and Its Implications for the Design of Information Technology," Management Science, INFORMS, vol. 41(12), pages 1900-1921, December.
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    Cited by:

    1. Amit Basu & Robert W. Blanning, 2003. "Synthesis and Decomposition of Processes in Organizations," Information Systems Research, INFORMS, vol. 14(4), pages 337-355, December.
    2. Daniel D. Zeng & J. Leon Zhao, 2005. "Effective Role Resolution in Workflow Management," INFORMS Journal on Computing, INFORMS, vol. 17(3), pages 374-387, August.
    3. Oliver Schilke & Bernd W. Wirtz, 2008. "Allianzfähigkeit — Eine Analyse zur Operationalisierung und Erfolgswirkung im Kontext von F&E-Allianzen," Schmalenbach Journal of Business Research, Springer, vol. 60(5), pages 479-516, August.
    4. Ming Fan & Jan Stallaert & Andrew B. Whinston, 2003. "Decentralized Mechanism Design for Supply Chain Organizations Using an Auction Market," Information Systems Research, INFORMS, vol. 14(1), pages 1-22, March.

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