The Place of Decision Theory in Administrative Studies

Date01 September 1971
AuthorV. Subramaniam
DOI10.1177/002085237103700308
Published date01 September 1971
Subject MatterArticles
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The Place of Decision Theory
in Administrative Studies
by
V. SUBRAMANIAM,
Professor of Public Administration,
UDC 35.077.11 : 65.012.5
University of Zambia, Lusaka
Decision theory is now accepted as a part
and the debate that went on over it before its
of Organization Theory and Administrative
acceptance. Secondly, the great revival of
Studies though opinions still differ about the
interest in policy-making models now involves
relative share of teaching time it should be
more and more of decision theory in Public
given. The amount included in courses varies
Administration and it is worth evaluating its
somewhat from one context to another. In
relative importance in the total corpus of
general, training courses for middle and top
Organization Theory. In the following para-
managers include quite much by way of its
graphs we attempt to discuss mainly (i) the
applications in the form or role-playing games,
early claims made or implied on behalf of
in-baskets and similar exercises apart from
decision theory by Simon and his disciples
case
study discussions. Courses involving
and the reasons for the strong impression it
managerial economics or management tools
created initially; (ii) the main strands of
deal more with mathematical models. Semi-
criticism against the theory (iii) and the
nars for policy makers in government involve
problem of how and how much decision
less mathematical but more general theories
theory may be fitted into the general teaching
of decision-making. On the other hand, there
of Organization Theory.
is likely to be far less of it in any course oh
Personnel Administration. In academic
I
cour-
ses in Public or Business Administration, its
Professor Simon, the primum mobile of
position may depend mainly on the orienta-
modern decision-making theory, starts out
tion of the University, and the teaching faculty.
with a rather modest claim in regard to its
In general, modern management-oriented Busi-
place in administration. In the opening para-
ness Administration courses would have more
graphs of the first chapter of Administrative
of it while Public Administration courses tied
Behaviour he pleads rather defensively, that it
down to Political Science would include very
&dquo; pervades the entire administrative organiza-
little.
tion as much as does the task of doing &dquo; and
that
Doubts
persons above the operative level in
are scarcely expressed now about
an
organization are not &dquo; mere surplus
the basic importance of decision theory even
baggage &dquo; (1). Towards the end of the book
while teachers adjust its relative position
however, this modesty has worn thin - as
according to course needs. This is a state of
he
affairs that has
explains how decision-making is interwoven
come about in a short period
into the anatomy and physiology of the
-
beginning with Simon’s lightning advocacy
organization (2) :
of decision studies in 1945 in his Administrative
Behaviour, followed by an intermittent debate
The anatomy of the organization is to be
which started soon after and ending with the
found in the distribution and allocation of
gradual acceptance of decision theory as an
decision-making functions.
integral part of the curriculum of administrative
The physiology of the organization is to
studies. The wandering controversy is nearly
be found in the processes whereby the
forgotten now and very few seem to recollect
organization influences the decisions of each
the period before 1945 when there was no
of its members - supplying these decisions
such thing as decision theory -
in the rubric
with their premises.
of Public or Business Administration. It is
however useful to analyse this development
(1) Herbert A. Simon, Administrative Behaviour,
now.
In the first place, it is worthwhile
Free Press Paperback, 1968, pp. 1-2.
investigating the rise of any new area of study
(2) Op. cit., p. 220.


396
Even though he still disowns any reference to
obsolescent by the nineteen forties. In the
decision as a building block of his theory, he
first sense, it meant that people’s representatives
is still happy to call it the &dquo; central concern of
and leading statesmen made decisions while
administrative theory &dquo; (3). This change-over
the public administrator loyally carried them
from a modest to a commanding claim is built
out.
In the second sense, it sneered at those
up slowly by relating all things organizational
politicians who talked airily and prescribed
to decision-making in the intervening chap-
vaguely as against those (administrators) who
ters (4).
really did things. Both interpretations were
fast becoming irrelevant in the post-Second
Simon goes much further in this direction
World War period. Critics and defenders of
with March in his next important work,
administrative discretion, administrators and
Organizations, in which every chapter is
academics had all realized for some years that
related either directly to decision-making or
the public administrator was making at least
indirectly as an aspect thereof or influence
as many important decisions as the politician
thereon. Chapters 3 and 4 deal respectively
in office. Indeed there was already an outcry
with intra-organizational decisions and the
even in the thirties that the administrator
(employee’s or shareholder’s) decision to par-
decided while the Minister rubber-stamped
ticipate ; chapter 6 deals with the limitations
his decision (6). Others, like Burnham, were
on the individual’s rationality in decision-
discovering something similar in private enter-
making, and chapter 7 with unprogrammed
prise where they claimed that managers were
decision or innovation.
fast displacing owners in deciding important
Chapter 5
matters
on conflict, defines it as a break-
(7). Thus the administrator both
down in the standard mechanism of decision-
private and public was being recognized as
making while the first two chapters discuss
no longer doing the politician’s or the private
respectively the general organization of the
capitalist’s bidding but deciding things in
book and the defects of classical organization
their name.
theory which looks vainly in different direc-
The climate had also
tions without the focus of decision-making.
changed in a more
general
It is clear that Simon implies that what cannot
way in favour of studying decision-
be reduced
making due to the rise and popularity of
to decision-making directly, re-
Existentialism in the immediate
volves round it.
post-war years
and its dominating influence in intellectual
Several of Simon’s older academic con-
circles. This school glorified the agony and
temporaries were rather surprised at the quick
activity of choice as the ultimate redeeming
acceptance of this new thesis in academic and
feature of the human condition. In short,
even some managerial circles (5). There were
by the late nineteen forties, the time was ripe,
two important reasons for this. In the first
in the social sciences and in particular in
place, the climate of opinion had changed in
administrative studies, for the enthronement
regard to the relation between decision and
of decision-making.
administration. Others were only vaguely
Pari
aware of it but Simon understood it more
passu with this development, doing in
deeply. The old description of administra-
the sense of operating, had over a century,
tion
due to
as doing things or getting things done
rapid technological advances, lost its
had
flavour and overtones of Protestant virtue
a modest as well as an assertive connota-
(8).
tion and both connotations had become
More and more of operative work was becom-
ing mechanical, more and more of those who
did it became more unimportant. This emerg-
ing attitude is defended with some reason
(3) Op. cit., p. 240.
(4) Op. cit., p. xii. Simon himself gives away the
plan of his build-up from a modest opening to the
grand conclusion — in the Introduction.
(5) Dwight Waldo’s " Development of Theory of
(6) Lord Hewart, The New Despotism,...

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