Conclusion / Let us Sum up

Inspire of all the points of criticism, against Simon’s decision making theory, one understands the importance of decision making, in every walk of life. Simon’s idea of rationality in decision making shows his deep insight of establishing close relationship between facts & values. His is a major contribution in the evolution of administrative theory. His administrative man & organizational behavior, has more concern are tested. No administrative thinker on Public Administration has written so widely on decision making as by Herbert Simon.

While Summing up, keep the following points in mind

i)                    Herbert Simon was a great administrative thinker & a Nobel Prize winner. He wrote extensively on Public Administration, Administrative theory & decision making processes.

ii)                  He suggested valid principles of organization & focused his attention on decision making.

iii)                He brought empirical approach to the science of Administration. He combined facts & values in his theory of Administration.

iv)                Simon calls decision making as the heart of an organization. In fact an organization is hierarchically structured to take decisions. Every decision, more or less, affects everybody in the organization.

v)                  Simon divides decision making activity into three phases -

a) Decision making is an intelligent activity; the decisions have to be taken in anticipation, which is an intellectual exercise.

b) Decision making is a design activity, in which, a head has to visualize all the possible options/alternatives, before reaching a final decision.

c) Decision making is a choice activity, where a final decision is made.

vi)                These three may appear to be simple, they are not very simple, but are complex, closely related to problem solving - what are the problems, what are the alternatives & which alternative is best?

vii)              Simon also discusses rationality in decision making, which involves facts & values.

viii)            Simon defines rationality, ‘appropriateness for the accomplishment of specific goals of organization. ‘A head has to take into consideration all the possible consequences before taking any decision’

ix)                Simon is also aware that even reaching rationality is a difficult process. He gives different types of rationality. He also knew the limitations of rationality.

x)                  On the basis of rationality, Simon reaches to his idea of an ‘administrative man’ & administrative behavior. The internal & external factors determine the behavior of administrative man.

xi)                Simon was very much influenced by the use of computers for administrative work. He distinguished between programmed & non programmed activities & found that computers can bring revolutionary changes in the working of organizations. A head can relieve him / her from the monotonous & mechanical work by relying on computers.

xii)              Simon also described some fundamental principles of organization.