|Abstract or Summary
- An extensive literature survey investigated methods and approaches
for evaluating intangible economic factors at the strategic
and tactical levels of managerial decision making. These sources
provided: 1) the background for a theoretical decision making
algorithm developed for comparing alternative economic proposals
for effectiveness at the strategy levels, and 2) a number of techniques
for measuring intangible properties quantitatively at the
A technique developed by Barish, and in combination with a
procedure by Churchman and Ackoff for comparing intangible and
tangible objectives, was presented as a working method for comparing
strategic alternatives. The comparisons thus derived for
individual decision making can be integrated with the aid of Helmer's
"anonymous debating procedure."
The initial development of a decision making algorithm, Part
I, used subjective scales of relative effectiveness values representing
the competing strategies. Paired comparisons were employed
to achieve ordinal scales. Then, employing Siegel's "higher-
ordered metric" scaling procedure, ordered metric scales
were developed, followed by more accurate higher-ordered metric
scales of subjective effectiveness values.
In Part II of the decision process the best of three alternative
methods for converting subjective ordered scales into interval
scales was employed to attach quantitative values to scale
positions; the Higher-Ordered Metric Minima approach was selected
over the Ordered Metric Minima approach and the Standard
In Part III the interval scales of Part II were transformed
into ratio scales, based on known zero effectiveness strategies.
Employing the weighted average method, the scales under each
criteria were combined by having the experts weight themselves.
Then the conflicting objectives were weighted according to an
adaptation of Helmer's procedure, and the objective-strategy
scales were combined into one scale of overall effectiveness.
A section was provided in which methods of assigning dollar
values to intangible effects at the tactical levels were presented,
considered under three general categories.
Under the category of "intangibles evaluative with respect
to market values, " examples of measuring intangible property
values of a firm were given, according to Marston, Winfrey, and
Hempstead. Under the category of "intangibles not evaluative in
terms of market values, " Helmer's "anonymous debating procedure"
for arriving at median values by determining mean estimated
values of experts was presented. Stanly's "expected cost" method,
in which expected values were established through the multiplication of probabilities of occurrence by estimated values of occurrence
was discussed. Secondly, a number of examples of associating
dollar values to intangible effects were presented under the
"valuation method. " Thirdly, under the category of "complete intangibility," in which intangible effects are not considered evaluative
in monetary terms, the exponential rating method was
described, in which alternative proposals are subjectively rated
according to their effectiveness in achieving intangible objectives,
and all objectives are ranked in terms of their relative importances.
In conclusion, the decision making algorithm developed in
this thesis represents an attempt to achieve systematic and objective
decision making at the strategy level. Furthermore, it
forces decision makers to concentrate on all aspects of competing
strategies when making relative comparisons.
The intangible methods of evaluation presented at the tactical
levels for measuring competing proposals monetarily are very
limited in their accuracy; however, they cause the decision makers
to consider important intangible effects and to attempt to dollarize