How to Use Models of Organizational Decision Making?

• Main Author: Kenichi KUWASHIMA
• Format: Article
• Language: English
• Published: Global Business Research Center 2014-08-01
• Series: Annals of Business Administrative Science
• Subjects: organizational decision making; modern organization theory model; garbage can model
• Online Access: https://www.jstage.jst.go.jp/article/abas/13/4/13_215/_pdf/-char/en

When explaining organizational decision making, there is often an implicit assumption that an organization makes decisions based on rational principles. However, there are situations in which rationality cannot explain all phenomena. Moreover, even a single organizational decision can be subject to heterogeneous interpretations depending on the model used in an analysis. This paper examines the significance of the models of organizational decision making as an analytical framework by referencing classic studies by Allison (1971) and Lynn (1982). Allison (1971) and Lynn (1982) use multiple models to explain organizational decision making in an effective manner. However, the method in which they use these models differs. Allison (1971) analyzes the Cuban Missile Crisis using three models, and provides three different interpretations concerning decisions made by the U.S. and Soviet Union. In other words, Allison uses more than one model to analyze a single phenomenon to explain the event from different perspectives. On the other hand, Lynn (1892), who explains the decision-making process of Japanese and U.S. steelmakers by analyzing their adoption of new technology, chooses a single model for each company. In providing an analysis, Lynn compares several models and selects the one that is likely to have the most explanatory power. To provide an analysis of organizational decision making in an effective manner, it is necessary to remember the importance of models as an analytical framework and then decide whether to adopt Allison’s method (the use of multiple models that provide explanations from several perspectives) or Lynn’s method (an explanation using the most optimal model). It is important to decide which method to use based on the purpose of the analysis.