ABSTRACT
Decision issues always involve two major dimensions: beliefs about cause/effect relations and preferences regarding possible outcomes. When the core technology of an organization must be employed on dynamic human objects, the outcome is in part determined by those human objects; and if they hold opposing outcome preferences, some compromise is likely. Thus in prisons with therapeutic objectives, some compromise seems inevitable, for conflicting outcome preferences of prisoners force the prison to add custody as an outcome preference. Although the pyramid headed by an all-powerful individual has been a symbol of organizations, such omnipotence is possible only in simple situations where perfected technologies and bland task environments make computational decision processes feasible. Where technology is incomplete or the task environment heterogeneous, the judgmental decision strategy is required and control is vested in a dominant coalition. In the organization with dispersed power, the central power figure is the individual who can manage the coalition.
