The Role of Visual Aids in Corporate Annual Reports in Drawing Wider Audience Internally Mochammad Surjo Koentjoro 1

Organizational Information Theory (Weick)

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4.7. Organizational Information Theory (Weick)
Examination of Annual Reports as media of information can be done using the study of Organizational Information Theory, which was largely based on studies done by Karl
Weick. (7)
Weick (1979) states that the word organization is a noun, and it is also a myth. Organization is made up of events that are linked together. In other words, organization is process- driven rather than structurally driven. Human beings face a complex and uncertain environment, which Weick maintains is the reason for organizing. Organizing come into being because organizing activity is necessary to combat the ambiguity and uncertainty that human face. Organization must manage this equivocality, and they do so by giving meaning to events. Organizational members accomplish this sense making process through enactment, selection, and retention of information. Organizations are successful to the extent that they are able to reduce equivocality through these means.
1. Enactment It means the role of action. Individuals with data and knowledge refines and actualizes ideas through trial and error. Enactment helps to define the meaning, helping members of the organization to be in control of their environment.
2. Selection This includes evaluation of outstanding information necessary to further reduce equivocality.
Advances in Economics, Business and Management Research (AEBMR), volume 41

At this stage, the decision makers of the organization plays an important part.
3. Retention It is the keeping and retaining the information that has proven to be useful and beneficial, to be applied on future projects. This theory explains the model of communication between an organization interacting with the environment, almost as if it is a living organism. But it also attempts to explain the behaviour of the organization’s member in its activities in interacting with each other, with the organization, and as the part of organization in interacting with the environment. In this sense, Annual Reports can be apart of the whole process as the media of presenting the selected and retained information to be a reference in the process of enactment. But only apart of it since there are other factors involved in this process of managing equivocality because according to this theory, organization is something that is process driven and made up of events, so it is constantly changing.

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