How to Use Models of Organizational Decision Making

Abstract: 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.Keywords: organizational decision making, modern organization theory model, garbage can modelIntroductionWhen analyzing organizational decision making, there is often an 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 for analysis. This paper introduces two classic studies to examine the significance of models of organizational decision making as an analytical framework, and discusses how these models are used.This paper discusses separate studies such as Allison (1971) and Lynn (1982) that provide detailed analyses of their respective subjects. Allison analyzes the Cuban Missile Crisis of 1962, while Lynn examines the introduction of new technology by Japanese and U.S. companies in the steel industry. Allison and Lynn both use multiple models to explain organizational decision making in an effective manner. However, the way in which they use these models differs.1. Allison (1971) analyzes the Cuban Missile Crisis, a single phenomenon, using three models: rational actor model, organizational process model, and governmental politics model.2. Lynn (1982), with regard to the introduction of new steelmaking technology, compares the modern organization theory model with the so-called garbage can model as they are applied to each company. Lynn then selects the most optimal model to explain the decision-making process of each company.The following is an overview of the two studies with particular attention paid to the differences in the manner in which they use the analysis models.Allison's (1971) ModelThe U.S. and Soviet Union, nuclear powers with the abilities to annihilate each other, were closely competing over Cuba for 13 days in October 1962. Those who study international political issues seek to explain the decision-making process of the U.S. and Soviet Union during the crisis. In particular, they want to determine how the two countries moved to the brink of nuclear war, and how they managed to retreat from the situation. …