RESOURCE ALLOCATION TO INFORMATION PROCESSING IN A FIRM (Alokacja zasobow w procesie przetwarzania informacji w firmie)

This paper provides a coherent framework which allows understanding the economics of information processing in the management of a firm. Data processing is modelled as a dynamic parallel-processing model of associative computation with an endogenous set-up cost. In such a model, the conditions for the efficient organization of data processing are defined, and the architecture of efficient structures is analyzed. It is shown that, as in computer systems, the so-called 'skip-level reporting' structures are efficient. However, if the information workload of managers cannot be equalized, then the best pattern of information workload has to be determined, and resources allocated to the managers have to be adjusted to it. The method of adjustment of resources to the information workload of managers in one-shot skip-level reporting structures is presented and an example of an organization of data processing in demand forecasting is considered.