While dilating on the process of decision - making, Simon rejected rational, economic man & replaced him by a more realistic, administrative man. He proposed an idea of administrative man. The behavior of the administrative man, in the organization, is conditioned by organizational culture. The administrator is conditioned by organizational culture. The administrator has to comply with established rules & regulations & follow prescribed course of action. Such a man is called ‘organizational man’ Herbert Simon’s administrative man tries to rationalize man.
The behavior of organizational man is subject to two types of influences - internal & external. Internal influence involves attitudes, habits & temperaments, which leads him to reach the desired decisions. Internal factors also include loyalty, concern with efficiency & training. External factors involve authority, advisory & informational services.
Programmed & non-programmed activities in an organization Simon is fascinated by the advent of electronic computers. He makes a distinction between programmed & non-programmed decisions. The electronic computer is making available to mankind new decision - making techniques which bring changes in white collar, executive & professional work making them ‘as monotonous as those, the introduction of machinery has brought to manual jobs.’
Simon feels that the computer has the potential of revolutionizing organizational decision making. According to him repetitive & routine type of decisions can be programmed to the computers. Operations research, system analysis, quantitative data processing etc. can be given to the computers.
The non-programmed decisions help the higher level authorities to devote their time for taking more efficient decisions, innovative ability, acquiring higher skills. The use of computers may increase rationality. In fact, Simon believes in the unlimited confidence in computer & management information systems. Computers command revolutionary capacity in the process of gathering & organizing information public administration enables, to cope with the ever- increasing complexity of public policies & programmes. Simon thus suggests maximum use of computers for rational decisions.
Principles of Administration
Logically, Simon cites some of the administrative principles:
a) Administrative efficiency is increased by a specialization of the task among the group.
b) Administrative efficiency is increased by arranging the members of the group in a determinate hierarchy, of authority
c) Administrative efficiency is increased by limiting the span of control at any point in the hierarchy to a small number.
d) Administrative efficiency is increased by grouping the workers, for purposes of control, according to (a) purpose (b) process (c) cliental (d) place.
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