Question

Organization Theory and Design : An International Perspective

a. Drawing on the concept of bounded rationality, list and describe the assumptions and the
characteristics of Carnegie model of decision making. (15 marks)
b. Discuss the main differences between the Carnegie model and the Garbage Can model.

Answer 1

Answers

2) Differences between Carnegie & garbage can decision model:

• Carnegie decision model: the cyert – March – Simon model (Carnegie decision model) was developed by Richard cyert, James march & Herbert Simon originally at Carnegie Mellon university. This is a model that mainly emphasizes on bounded rationality (limited time & mental capacity of people resources, limited information & resources, hence a rational solution can’t be derived). There would be often disagreement among managers his group on decision making & hence requires that groups are formed on the basis of people who agree on goals. Hence this model emphasizes the political process of decision making.

Those responsible tend to look for a quick solution in the immediate, local environment, rather than trying to develop the optimal solution. The solution chosen is said to “satisfice” (satisfy + suffice) rather than optimize.

Bounded rationality in this model involves two sets of constraints – uncertainty and conflict. There is uncertainty in the value of information, as it is limited and the various players have many constraints. There is conflict between the player’s goals, opinions, values and experience.

The decision is tossed out to a group, where joint discussions are held to interpret goals and problems. Opinions are shared, and decision priorities are set. Social support for the decision is the primary goal.

• Garbage can model: this is a model that disconnects problems, solutions & decision makers from each other. This is a theory that contends that decisions in the organization are random & unsystematic.

This is a theory that adds that an organization is collection of choices that looks for problems, issues & feelings looking for decision situations that might be aired, solutions looking for issues to which they would be the answer & decision makers looking for work.

Problems, solutions & participants & choices flow in & out of the garbage can & in which case problems gets attached to the solutions is largely because of chance.

Consequences of the model:

5. Solutions may be proposed even when problems don’t exist.
5. Choices are made without solving the problems.
5. Problems persist without being solved.
5. Only a few problems would be solved.

1. Assumptions of Carnegie model is considered to be more realistic. It recognizes 'satisficing', bounded rationality & org. coalitions.
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Satisficing: Limited information searches to identify problems & alternative solutions. Decision makers select criteria to limit the range of alternatives.
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Bounded Rationality: The model assumes all decision makers are limited by 'bounded rationality' - a limited capacity to process information.

Characteristics of Carnegie decision making model:

5. Uncertainty: information is limited & managers have many constraints.
5. Conflict: conflicts arise because of manager’s diverse nature of goals, opinions, values & experience.
5. Coalition formation: hold joint discussion & interpret goals & problems, share opinions, establish problem priorities, obtain social support for problems & solutions.
5. Search: it would be better to conduct a simple, local search using established appropriate procedures & creating a solution if needed.
5. Decision behaviour: adopting an alternative that is considered to be suitable for coalition.