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THE UNIVERSITY of CHICAGO Department of Political Science

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THE UNIVERSITY of CHICAGO Department of Political Science 1 THE UNIVERSITY OF CHICAGO Department of Political Science Organizational Decision Making Professor John F. Padgett Political Science 275/375 Autumn 1999 Sociology 350/Public Policy 335 MWF 9:30-10:30 T.A. Michael Reinhard The course is a survey of organization theory, with an emphasis on decision making processes both within and among organizations. Applications cover a variety of U.S. settings: business firms, state and local governments, hospitals, unions, and schools. Many of the case studies involve decision making within the U.S. Federal Executive Branch. The course is structured as a series of contrasts among various theories. The emphasis throughout is on using case materials as data both to illustrate and to test the theories. To facilitate this approach, the course will consist, on average, of two lectures and one discussion session each week. The lectures will focus on theories; the discussion sessions will focus on cases that students have analyzed. Each student will be required, over the course of the term, to submit three short essays (approximately 5-7 pages) that analyze a case from the perspective of the theory of the week. Students can choose their own case if they wish, but there is a list of recommendations on this reading list. These essays are due 5 p.m. the day before discussion section, in the black slot on the wall outside Pick 502. Because of these short essays there will be no midterm exam or final term paper. There will be a final exam. Grading will be based on these ratios: essays (including discussion) = 1/2, final exam = 1/2. Selected books for optional purchase have been ordered at the Seminary Co-op Bookstore. However, all required readings are now online through the Regenstein's "course reserve catalogue". A handout will be distributed to show how to access and print out the readings. TOPICS AND READINGS Asterisk (*) indicates required readings. Others are optional. I. INTRODUCTORY CASES (Lectures September 27, 29) *Richard Blumenthal, "The Bureaucracy: Antipoverty and the Community Action Program," in Allan Sindler (ed.), American Political Institutions and Public Policy, ch. 3. *Richard A. Smith, "TFX: The $7 Billion Contract that Changed 2 the Rules," in M. Halperin and A. Kanter, Readings in American Foreign Policy. *Martha Derthick, "Defeat at Fort Lincoln," Public Interest 18 (1970):3-39. II. INDIVIDUAL CHOICE: Rational and Behavioral Decision Theories (Lectures October 1, 4, 6; Discussion October 8) *John D. Steinbrunner, The Cybernetic Theory of Decision, chapters 2-4. *Clyde H. Coombs, Robyn M. Dawes, and Amos Tversky, Mathematical Psychology: An Elementary Introduction, chapter 5. *Amos Tversky and Daniel Kahneman, "The Framing of Decisions and the Psychology of Choice," Science 211 (1981):453-458. Ola Svenson, "Process Descriptions of Decision Making, Organizational Behavior and Human Performance 23 (1979):86-112. *John Payne, "Task Complexity and Contingent Processing in Decision Making," Organizational Behavior and Human Performance 16 (1976):366-387. *Elinor Ostrom, "A Behavioral Approach to the Rational Choice Theory of Collective Action: 1997 APSA Presidential Address," American Political Science Review 92(1998):1-22 Herbert A. Simon, "Rationality as Process and Product of Thought," American Economic Review 68 (1978):1-16. Herbert A. Simon, "Human Nature in Politics: The Dialogue of Psychology with Political Science," American Political Science Review 79 (1985):293-304. Paul Slovic, Baruch Fischoff, and Sarah Lichtenstein, "Behavioral Decision Theory," Annual Review of Psychology 23 (1977):86-112. Hillel J. Einhorn, and Robin M. Hogarth, "Behavioral Decision Theory: Processes of Judgment and Choice," Annual Review of Psychology 32 (1981):53-88. Amos Tversky, "Intransitivity of Preferences," Psychological Review 76 (1969):31-48. Daniel Kahneman, Paul Slovic, and Amos Tversky, Judgment Under Uncertainty: Heuristics and Biases, chs. 1, 9. James G. March, "Bounded Rationality, Ambiguity, and the Engineering of Choice," Bell Journal of Economics 9 (1978):587-608. Jon Elster, Sour Grapes: Studies in the Subversion of Rationality, chs. 1, 2. G. P. E. Clarkson, "A Model of Trust Investment Behavior," in Richard Cyert and James G. March, A Behavioral Theory of the Firm, ch. 10. Herbert A. Simon and William G. Chase, "Skill in Chess," American Scientist 61 (1973):394-403. Robert Jervis, Perception and Misperception in International 3 Politics, chapter 4. Suggested Cases: Richard A. Smith, op. cit. (from week 1) Robert Coulam, Illusions of Choice: The F-111 and the Problem of Weapons Acquisition Reform. C. Roland Christenson et al., "Texas Instruments," Business Policy: Texts and Cases, pp. 585-600. III. ORGANIZATIONAL STRUCTURE: Weber and Contingency Theory (Lectures October 11, 13; Discussion October 15) *Max Weber, The Theory of Social and Economic Organization, pp. 324-340. *Arthur Stinchcombe, "Bureaucratic and Craft Administration of Production," Administrative Science Quarterly 4 (1959): 168-187. *Tom Burns and G. M. Stalker, The Management of Innovation, chs. 1, 6. *James D. Thompson, Organizations in Action, chs. 4-7. Arthur Stinchcombe, Information and Organizations. *John F. Padgett, "The Alchemist of Contingency Theory," American Journal of Sociology (March 1992). Talcott Parsons, Structure and Process in Modern Society, chapter 2. Charles Perrow, Complex Organizations: A Critical Essay, chapter 2. Charles Perrow, "The Analysis of Goals in Complex Organizations," American Sociological Review 26 (1961): 854-865. Paul Lawrence and Jay Lorsch, Organization and Environment, chapters 6, 7. Michael Aiken and Jerald Hage, "Organizational Interdependence and Intra-Organizational Structure," American Sociological Review 33 (1968): 912-930. John Child, "Strategies of Control and Organizational Behavior," Administrative Science Quarterly 18 (1973): 1-17. W. Richard Scott, "Organizational Structure," Annual Review of Sociology 1 (1975):1-20. Richard H. Hall, Organizations: Structure and Process, chapters 3-6. Stanley Udy, Work in Traditional and Modern Society, chapters 3, 4. Peter Evans, "Multiple Hierarchies and Organizational Control," Administrative Science Quarterly 20 (1975): 250-259. Robert G. Eccles and Harrison C. White, "Firm and Market Interfaces of Profit Center Control," Harvard School of Business Working Paper 9-784-062. 4 Suggested Cases: Alfred D. Chandler, Strategy and Structure, ch. 3 (General Motors). Tracy Kidder, Soul of a New Machine. Mayer Zald, Organizational Change: The Political Economy of the YMCA. Margaret Chandler and Leonard Sayles, Managing Large Systems: NASA. IV. ORGANIZATIONS AS RATIONAL ACTORS (Lecture October 18) *Edwin Mansfield, Microeconomics, chapters 5, 7. *Graham Allison, Essence of Decision: Explaining the Cuban Missile Crisis, chapters 1, 2. Richard Cyert and James G. March, A Behavioral Theory of the Firm, ch. 2. F. Machlup, "Theories of the Firm: Marginalist, Behavioral, Managerial," American Economic Review 57 (1967):1-33. Sidney Winter, "Economic Natural Selection and the Theory of the Firm," Yale Economic Essays 4 (1964):225-272. Sidney Winter, "Optimization and Evolution in the Theory of the Firm," in R. H. Day and T. Groves (eds.), Adaptive Economic Models, pp. 73-99 only. Suggested Cases: Sidney Pollard, The Genesis of Modern Management: A Study of the Industrial Revolution in Great Britain. Phillip Selznick, The Organizational Weapon: A Study of Bolshevik Strategy and Tactics. V. ORGANIZATIONS AS LIMITED PROBLEM SOLVERS (Lecture October 20; Discussion October 22 (on IV and V)) *James G. March and Herbert A. Simon, Organizations, ch. 6. *Charles Perrow, Complex Organizations: A Critical Essay, chapter 4 (pp. 139-160). *Herbert A. Simon, The Sciences of the Artificial, ch. 4. *Graham Allison, Essence of Decision, chs. 3, 4. *David Braybrooke and Charles Lindblom, A Strategy of Decision, chapters 5, 6. Edwin Hutchins, Cognition in the Wild, chaps. 2,9. John F. Padgett, "The Emergence of Simple Ecologies of Skill: A Hypercycle approach to Economic Organization," in Brian Arthur et al (eds.), The Economy as an Evolving Complex System II, Sante Fe Institute series in the Sciences of Complexity. Herbert A. Simon, Administrative Behavior, chapters 4, 5. 5 Alvin Gouldner, Patterns of Industrial Bureaucracy, ch. 9. Harold Wilensky, Organizational Intelligence, chs. 2, 3. Charles Lindblom, "The Science of Muddling Through," Public Administration Review 19 (1959): 78-88. O. A. Davis, M. A. H. Dempster and Aaron Wildavsky, "A Theory of the Budgetary Process," American Political Science Review 60 (1966):529-547. John P. Crecine, Governmental Problem Solving: A Computer Simulation of Municipal Budgeting, chs. 2, 4, 11. John F. Padgett, "Hierarchy and Ecological Control in Budgetary Decision Making," American Journal of Sociology 87 (1981):75-129. Roy Radner, "A Behavioral Model of Cost Reduction," Bell Journal of Economics 6 (1975): 196-215. Suggested Cases: Richard F. Fenno, The Power of the Purse, chs, 1, 2, 4, 5, 8. Jack Snyder, The Ideology of the Offensive: Military Decision Making and the Disasters of 1914, chs. 2, 3. Aaron Wildavsky, The Politics of the Budgetary Process, ch. 2. Aaron Cicourel, The Social Organization of Juvenile Justice, chapters 4, 5. Roberta Wohlstetter, Pearl Harbor: Warning and Decision. Diane Vaughan, The Challenger Launch Decision. Michael Lipsky, Street-Level Bureaucracy: Dilemmas of the Individual in Public Services. Edwin Hutchins, Cognition in the Wild, chaps. 1,8. (Book is both theory and case.) VI. ORGANIZATIONS
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