Sea of Noise


Tue, 21 Sep 2004

Decision-Making in Organizations

An interesting story about making a decision about a naval vessel illustrates a problem with decision-making within organizations:

When a decision is made in an organizational context (as opposed to a decision by an entirely autonomous individual), additional layers of complexity and emotion come into play. The person who must make the decision is often not the person who has the information/expertise on which the decision must be based. Indeed, the information and expertise are often distributed across multiple individuals. These individuals may have their own objectives motivations, which may differ from the objectives and motivations of the formal decision-maker, and which may conflict with each other. And the making of the decision may alter power relationships within the organization, as well as influencing the phenomena about which the decision is ostensibly being made. The above factors are illustrated with crystalline clarity in the story of a seemingly very simple decision, which had to be made onboard a U.S. Navy destroyer sometime during the 1950s.

[via d-42.com]

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