Composition vs. Decomposition: Two Approaches to Modeling Organizational Decision Processes

The most popular approach to developing mathematical models of organizational decision processes, the decomposition approach, begins with a mathematical statement of an ideal organizational problem and follows a process of decomposition to derive sub-problems solved by separate units at (possibly) different levels of the organization. Conversely, the composition approach starts with mathematical statements of the subproblems solved by the separate units and proceeds to develop a solution algorithm as a means of coordinating the activities of the separate units. A process of composition must then be followed if one is to discover the derived organizational problem actually solved. This paper offers an operational definition of an organizational decision process and relates this process to the anatomy of mathematical models purported as being representative of it. Implications regarding the potential of the decision process models as tools of organizational design are explored.

[1]  J. Kornai,et al.  Two-Level Planning , 1965 .

[2]  L. Jennergren.  A Price Schedules Decomposition Algorithm for Linear Programming Problems , 1973 .

[3]  Gary J. Silverman,et al.  Primal Decomposition of Mathematical Programs by Resource Allocation: I - Basic Theory and a Direction-Finding Procedure , 1972, Oper. Res..

[4]  James R. Freeland.  Note---A Note on Goal Decomposition in a Decentralized Organization , 1976 .

[5]  T. Fabian,et al.  Decomposition, Pricing for Decentralization and External Economies , 1964 .

[6]  Talcott Parsons,et al.  Structure and Process in Modern Societies , 1961 .

[7]  James R. Freeland,et al.  Goal partitioning in a hierarchical organization , 1975 .

[8]  R. Burton,et al.  THE ECONOMICS OF DECOMPOSITION: RESOURCE ALLOCATION VS TRANSFER PRICING , 1974 .

[9]  A Kate.  Decomposition of Linear Programs by Direct Distribution , 1972 .

[10]  M. Mesarovic,et al.  Theory of Hierarchical, Multilevel, Systems , 1970 .

[11]  Timothy W. Ruefli,et al.  A Generalized Goal Decomposition Model , 1971 .

[12]  Peter Jennergren,et al.  Simulation experiments of resource-allocation decisions in two-level organizations , 1973 .

[13]  R. Burton,et al.  The multilevel approach to organizational issues of the firm--A critical review , 1977 .

[14]  A. Charnes,et al.  EFFECTIVE CONTROL THROUGH COHERENT DECENTRALIZATION WITH PREEMPTIVE GOALS , 1967 .

[15]  Timothy W. Ruefli,et al.  Analytic models of resource allocation in hierarchical multi-level systems☆ , 1974 .

[16]  Arthur M. Geoffrion,et al.  Primal Resource-Directive Approaches for Optimizing Nonlinear Decomposable Systems , 1970, Oper. Res..

[17]  George B. Dantzig,et al.  Linear programming and extensions , 1965 .

[18]  Leon S. Lasdon,et al.  Optimization Theory of Large Systems , 1970 .

[19]  L. Peter Jennergren.  On the concept of coordinability in hierarchical systems theory , 1974 .