Decision Making
(Herbert Simon)
M.A.M.Fowsar
Lecturer in Political Science
Department of Political Science
South Eastern University of Sri Lanka.
Introduction
• Simon contributed to the decision making
theory.
• the decision making process & rationality in
the decision making.
• mainly concerned with private organisations
rather than public / Government sectors.
• the wide use of computers, helpful to the
head / executive.
Brief Life Sketch
• born in 1916, in USA and an eminent American Political &
Social Scientist (Ph. D. in Political Science).
• started his career in municipal government & then worked
in various companies & organisations as an academician &
as a consultant.
• Simon was very much influenced by Follet’s ideas on group
dynamics in orgainsation, the human relations approach
performed by Elton Mayo & Barnard.
• awarded Nobel Prize in Economics - he was not an
economist. His work is mainly drawn from Administrative
Behaviour (the study of decision making).
Herbert Simon’s Writings
• Administrative Behaviour (1945) (revised in 1988)
• Public Administration (1950)
• Models of Man (1957)
• Organisations (1958)
• Human Problem Solving (1472)
• Models of Thought (2 volumes-1979 & 1989)
• Models of Bounded Rationlity (2 volumes - 1982)
• Reason in Human Affairs (1991)
Decision Making
• decision making:
– synonymous with management
– the heart of the organisation
– the vocabulary of administrative theory
• an organisation is a structure created for decision making
• decisions are made at all the levels of organisation
• every decision may affect less / more members within the org.
Three Stages in the Decision Making
Process
1. The first phase (intelligence activity): The head of the
organisation tries to understand organisational environment
in which decisions have to be taken.
2. The second phase (design activity): A head of the
organisation tries to identify all possible options before
making a final decision.
3. The third phase (choice activity): Fianlly a head chooses one
of the selected options, which becomes adecision.
Rationality in Decision Making
• emphasises upon being rational in decision making. Rationality is
defined in terms of ‘appropriateness for the accomplishment of
specific goals.’
• focussed on the rational part of decision. Every decision is a
combination of reason (rationality) & emotion.
• gives importance to reason rather than emotion. A head faces
number of constraints while making decision. It is because, while
taking a decision, a head has to think, of all possible consequences,
affecting political culture & values of society.
• explains rationality in terms of means - end construct. If appropriate
means are adopted to reach desired ends, the decision is rational.
• In brief, rationality is making ‘an administrative man’.
Types of Rationality
a)
Objectively rational, where preference is given to values.
b)
Subjectively rational, where decision maximises attainment
relative to knowledge of the subject.
c)
Consciously rational, where adjustment between means & end is
made.
d)
deliberately rational, where adjustment is deliberately made.
e)
Organisationally rational, where it reaches organisational goals.
f)
Personally rational, where decision reaches individual goals.
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