Simon’s views on efficiency and computer in decision making.

According to Simon efficiency is an essential element in the decision making process. The administration must be guided by the criterion of efficiency in the factual aspects of decision making. It is a shortest path and cheapest means in the attainment of desired goal. It is easily understood in the commercial organizations which are guided by the profit objective. The criteria of efficiency is closely related to both organization and conservation objectives. It is related to organizational objective as it is concerned with maximization of output.

Further. criteria of efficiency is related to conservation objectives as it is concerned with the balance of output over input, where organizational decision can not be reached on the basis of considerations of efficiency, where the amount of resources and the organizational objectives are given, and are outside the control of the administrator, efficiency becomes the controlling determinant of administrative choice.

In the later years Simon has downgraded the efficiency criteria and observes that it applies only in lower level decision as higher level decisions do not lend themselves to measurements and comparability.

Simon’s views on use of computer in decision making:

Use of computer in decision making process makes the executive’s work easier and satisfying. By use of computer in this field more and more decisions can be programmed. It increases rationality in decision making process. According to Simon, the major problems of governmental organizations are not problem of departmentalization, coordination of operation units and division of labor but problem of organizing information storage, information processing and problem of the factorization of decision making. These organizational problems are best solved by using new techniques in this field.

Use of computer in decision making process will reduce dependency managerial personnel and lead to centralization in decision making. Simon point out that the use of new techniques in the decision making will radically change the concept of delegation responsibility and decentralizing decision making. The new information technology enables us to take new step.