Herbert Simon's Model of Decision Making

Herbert Simon's Model of Decision Making

Herbert Simon analysed the human behaviour in terms of its value preferences in decision making process . It is this central concern that is significant to the understanding of Organization and its working.

Classical Theory: Simon's Criticism 

Simon criticized the principles of Organization and describes them as mere proverbs. He pointed out that the principles are contradictory and normally inconsistent. He also noted these are scientifically not valid and do not have universal relevance.  Simon questioned their theoretical basis to analyze or  explain the organizational phenomenon. Any theoretical construct should possess a frame of reference which should have universal validity . It is this investigation that led to the growth of the study of administrative behaviour with a focus on authority and decision making.  Unlike the principles which have a contextual relevance the decision making according to Simon is a universal process and can form the Base for wider organizational analysis. 

Place of Decision Making in Administration 

To Simon administration is the art of "getting the things done" . He laid emphasis on the processes and on the methods that ensure action. He says that in Administrative analysis not sufficient attention is paid to the choice which precedes action . Determination of 'what to do ' rather than 'doing actually' did not receive proper attention. Decision-making deals with the process of choice which leads to action. Simon points out without an adequate understanding of this dimension which is rooted in the behaviour of man in the organization the study of administration would remain largely inadequate. 

In the behavioural approach the question that is to be understood is the process that precedes action. This is popularly known as decision - making process.  The need for taking decision arises when there are several alternatives or courses of actions open to an individual.  But one has to choose only one alternative by a process of elimination. Therefore decision -making is defined as a process of reducing the alternatives to one. 

Simon equates 'administration ' with decision -making.  He lays emphasis on how decisions are made and how they be made more effectively.  He passes a critical indictment on the narrowness and sterility of the traditional approach and argues that before one can establish any immutable principles of administration one must be able to describe exactly how an administrative organization looks and exactly how it works.

....Rationality of human being lies in selecting such an alternative which can produce maximum positive results and minimum negative results.  The efficiency of any gropu's effort does not depend only on Organization that ensures effectivedoing of a job but also depends on the existence of priciples which would ensure correctdecision -making which in turn determines the effectiveness of  doing the job.

Choice and Behavior 

Human behaviour involves conscious or unconscious selection of particular alternative which is physically possible and organisationally effective. The selection of a choice refers to preference of a course of action over other courses of action . In any mechanical action the choice and the action are directly related.  Decision -making process involves three important phases as activities. They are 

●Intelligence activity 

●Design activity 

●Choice activity

Intelligence activity involves finding occasions to take decisions. For this the executive has to analyze and understand the organizational environment. He has also to identify the conditions that need decision. 

Design activity is the second phase . This involves development of alternatives to do a particular job. The executive should also identify the merits and advantages as well as problems involved in each of the alternatives. 

Choice activity is the final phase . In this the decision maker should choose or select one of the alternatives or courses of action keeping in view the organizational goals.

Value and Fact In Decision making 

●The effectiveness of a course of action depends upon the capacity of that decision to attain the goals that are set. 

●The choosing of a correct choice is related to the individual 's preference. This deals with the question of values.

●The effectiveness depends upon the information available at a given point of time . This is related to the question of facts.

●Value is expression of a preference.  It can be subjectively asserted as valid .

●Fact is a statement of reality . It can be proved by observable means .

●According to Simon choice or decision involves both facts and values. They clarify the criteria in analyzing the ethical and factual elements in a decision. 

●Values and facts are only the premises and components which are inter-wined.

●Problems do not come to us as purely value decisions or factual decisions. 

Fact , Value and Rationality

● The concept of Purposiveness involves the notion of a hierarchy of a decisions

●Behavior is Purposive in so far as it is guided by general goals or objectives of the organization.  

●It is rational in so far as it selects alternatives which are conducive to the achievement of the previously selected goals.

●Theoretically it might look like a neat arrangement; operationally this is fraught with a number of difficulties .

●The difficulties arise because no organization pursues  a single goal. The governmental agency seeks to achieve many goals. It is the complexity that makes perfect integration extremely difficult. However certain amount of integration will have to be achieved in reality without which no purpose can be achieved. 

This problem unfolds two important dimensions of Simon's approach to decision making :

1. The policy making and the implementation 

2. The involvement of facts and values in the decision -making. 

It highlights that the decision  at the lower levels involves more of factual judgements.  In the process choosing of ends involves selection of an alternative based on value judgement. On the other hand in selection  of means  to achieve the end it is the factual judgement that is involved.  Rationality in the decision -making  process largely depends upon the correct choice of both the value judgement and factual judgement .