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A PRESENTATION
ON

AN
ADMINISTRATIVE THINKER

By:
Suranjan Jeet
M.A. –I/SEM-II
Roll No. 184102
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THE PRESENTATION IS ALL ABOUT;

Simon’s Life
Was Simon at WAR with classical
theory?

Decision Making as a
contribution.

Rationality in Decision Making.

Modes of Organizational
Influence

Administrative Efficiency
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THE PRESENTATION IS ALL ABOUT;

Modern Decision Making
Techniques

Theory of Equilibrium of
Organization

Simon and Communication

System

Criticism

Conclusion
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Life: Herbert Alexander Simon

BORN-1919 (U.S.A)
PhD/Political Science
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Group Human Functions of

Dynamics Relations The
Approach Executive

Mary Parker Follett Elton Mayo Chester I. Bernard

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ADMINISTRATION DECISION MAKING

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SIMON v/s CLASSICAL THEORY

For almost every principle one can find an equally
plausible and acceptable contradictory principle!

1. ●
● PRINCIPLE OF SPAN OF CONTROL

2. ●
● PRINCIPLE OF THE UNITY OF COMMAND

3. ●
● AUTHORITY AND RESPONSIBILITY

4. ●
● THE BASIS OF ORGANISATIONAL GROUPINGS

5. ●
● STAFF, AUXILIARY AND LINE UNITS
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AREAS OF
PROBLEM
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HERBERT A. SIMON’S
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ADMINISTRATIVE
ACTIVITY

DECISION
MAKING
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According to Simon:
An organization is a structure of decision makers.

Decisions are made at all levels of the organization.

 Each decision is based on the number of premises.

 How are these premises determined?

Top management cannot dictate but influence

decisions.
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Simon’s Decision Making Process:

●
Finding occasions calling for decisions.

Intelligence Activity
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Simon explains that

decision-making
is
a process
of
problem definition,
Development of alternatives,
appraisal of alternatives
and
selection of solution.
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FACT v/s VALUE and SIMON:

 A decision consists of some ethical and factual
elements.

 These lead to complexity in decision making.

Role of BEHAVIOR in decision making.

Behavior should be rational in order to keep the

decision in line with the desired goal(s).
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CAN DECISIONS BE RATIONAL?

DECISI
ONS

Mean ends
construct Choice

Anticipation of Total
Consequences Knowledge
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WHAT IS BOUNDED RATIONALITY?

• Behavior cannot ever be purely rational in an
administration
• Decisions can be completely rational or absolutely
irrational --- BOUNDED RATIONALITY

• A rationality bounded by limitations

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MODES OF ORGANIZATIONAL INFLUENCE:

Employees own attitudes and habits leading to desired goal(s). Imposing on the operative employee

Acceptance of organizational goals as personal goals. Includes Authority, advice and information services.

Internal External
Influence Influence
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MODES OF ORGANIZATIONAL INFLUENCE:

AUTHORITY
●
A means through which organisation man is made to conform to the
organisation demands
●
Exercise of authority depends upon those who are willing to accept it!

EFFICIENCY The shortest path and cheapest means to achieve desired goals.
●

“Be efficient” is one of the major influences on organizational man.

●

TRAINING Efficient training contributes toward efficient

●

decision making.

ORGANISATION ●
Loyalty makes an individuals confined to their
tasks rather than probing into problems.
AL LOYALITIES
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ADMINISTRATIVE EFFICIENCY:
Efficiency in administration.
Efficiency in decision making of an administration.
Non-Commercial government organisations face
complications
Choice of alternative leading to large results for given
resources.
Cost effective alternative.
Thus,
EFFICIENCY = CONSERVATION OF RESOURCES
EFFICIENCY = MAXIMISATION OF OUTPUT
EFFICIENCY = BALANCE BETWEEN OUTPUT & INPUT
(OUTPUT>INPUT)
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DECISION MAKING TECHNIQUES

●
Repetitive and routine
●
Have a definite
Progr procedure
amme ●
Are dealt with are
habit, knowledge and
d skills, and informal
channel.

●
Novel and unstructured
No cselection and training
Non
●

of executives possessing
Progra higher skills, innovative
abilityut and dried method
mmed for handling problem
●
Are dealt with
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THEORY OF EQUILIBRIUM OF ORGANIZATION

• Organisation is a balanced system

Money and Efforts

Inducements
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SIMON AND COMMUNICATION SYSTEM

Need of communication system

Methods; Formal & Informal
Hindrances
Qualities of good communication system
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CRITICISM
 Scholars do not agree with Simon’s view that efficiency is the most important
goal of administrative organisations.

 They are of opinion that the idea of a fact-based administrative theory of Simon
is more relevant to business administration than to public administration.

 Simon gives much importance to the role of decision-making and relegates the
role of social, political, economic and cultural factors to the background in
analysing administrative behaviour.

 Simon importance to rationality in decision-making involves both rational and

non-rational dimensions.

 It is said that Simon’s rational decision-making model remains an abstraction

and hence an unattainable ideal in the real world. In the practical world of
administration, the elaborate search processes may not be feasible as there is
always demand for immediate decision and action than cool contemplation
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 Simon’s contribution is still undoubtedly, a major

breakthrough in the evolution of administrative theory.

 Decision-making theory of Simon provides a new

paradigm in administrative theory.

 His stress on behavioural approach based on logical

positivism have emphasised the need to reformulate
administrative theories.

 Following Simon’s work, several major theorists such as

Michel Crozier, Anthony Downs, Gordon Tullock, Victor
Thompson, Dwight Waldo and R.T. Golembiewski made
contributions to administrative behaviour
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Simon
LAID
The
FOUNDATION
FOR
tHE,
Development
of
NEW
ADMINISTRATIVE THEORY
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