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Human Relations, Vol. 46, No. 5, 623-643 (1993)
DOI: 10.1177/001872679304600503

Making Sense of the Environment: The Role of Perceived Effectiveness

Donald L. McCabe

Graduate School of Management, Rutgers, The State University of New Jersey, 92 New Street, Newark, New Jersey 07102.

Jane E. Dutton

School of Business Administration, The University of Michigan, 701 Tappan, Ann Arbor, Michigan 48109-1234.

This manuscript develops and explores two ideas: (1) that perceptions of environmental uncertainty are after-the-fact rationalizations used by decision makers to explain strong or weak effectiveness assessments, and (2) that different contexts motivate different sense-making outcomes. The findings, based on a sample of senior decision makers from 34 firms in two industries, suggest that assessments of effectiveness and perceptions of environmental uncertainty are related through decision makers' sense-making efforts. The manuscript also addresses the limitations and implications of these results.

Key Words: decision making • environmental uncertainty • perceived effectiveness • sense-making


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