Simon view’s on Decision Making in the Administrative Process.
Administrative activity is one type of group activity which require efforts of many people to accomplish the task. If a man can plan and execute his own work there is no need for developing any process. But if task is more, it need the efforts of several persons to accomplish its task in this case, there is necessity of developing any process. This process is called administrative process.
To Simon, the administrative process have three important steps. They are:
- Segregate certain elements in the decisions of members of the organization.
- Establish regular organizational procedures to select and determine these elements.
- Communicate those elements to the members of the organization.
Some of the Practices that Emerge from the Structuring of Behavioral Choice:
Coordination among the employees is essential for an organization to achieve their goal. For example a group of people decide to build a boat if each has his own plan and they do not communicate their plan, their goal to build a boat is failure. If they adopt a design and execute it cooperatively, they would achieve better results.
Coordination may be procedural or substantive in nature. Procedural coordination establishes the lines of authority and outlines the sphere of activity of each organization member, while substantive coordination specifies the content of his work. In an automobile factory, an organization chart is an aspect of procedural coordination blue prints for the engine block of the car being manufactured are an aspect of substantive coordination.
The primary function of administrative organization to enforce conformity of the individual to names laid down by the group. The power given to the subordinate is restricted by the top executive. Thus autonomy in the decision making is restricted.
Specialization is a characteristic of organization. Specialization are of two types, horizontal or vertical. Simon emphases vertical specialization. He gives three reasons for vertical specialization in organization: Firstly, to achieve coordination among the operative employees vertical specialization is essential not the horizontal.
Secondly, vertical specialization permits greater expertise in making decision. Thirdly, in vertical specialization operative personnel are accountable for their decision.
The work in the organization must be subdivided so that person who have possess to skill, can perform the task. Thus, at the operative level, specialized skills are needed.