In: Economics
1. Explain the Carnegie model of organizational decision making
The Carnegie organizational decision making model was developed by a group of researchers from Carnegie-Melon University (thus the source of the name of the model) to better describe the realities of making decisions within an organizational setting (Cyert& March, 1963; March & Simon, 1958). Up until the time of this research it had been assumed that decisions were made by a single entity within an organization, usually the CEO and that all relevant information was funneled to the top decision maker for a choice to be made . However, the researchers from Carnegie found thatr Organizational-level decisions often involved many managers, and that the final choice was based on coalitions of these managers being formed to push for a particular decision These coalitions are seen as alliances among managers who have agreed among themselves about the organizations goals and problem priorities.
Management coalitions are seen as a necessary part of decision making for two reasons 1) Organizational goals tend to be ambiguous, and the departmental operational goals are inconsistent across the organization. When these goals are inconsistent and/or ambiguous managers will build coalitions around which problems should be addressed; and 2) While managers would prefer to be rational in making their decisions the reality of human cognitive limitations, time pressures, and other constraints limitations leads to managers conferring with one another to gather information and reduce ambiguity, which ultimately leads to the building of coalitions with other like-minded people.
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