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What Is Simon and March’s Theory of Organizations as Communication Patterns?
Explore the influential theory of Herbert Simon and James March. Learn how they defined organizations as dynamic patterns of communications, relations, and decision-making processes, moving beyond purely rational models.
Question
Simon and March viewed organizations as:
A. Purely rational entities
B. Arrangements of personnel for agreed purposes
C. Patterns of communications and relations, including decision-making processes
D. Static structures resistant to change
Answer
C. Patterns of communications and relations, including decision-making processes
Explanation
Herbert Simon and James March viewed organizations primarily as patterns of communications and relations, including decision-making processes. This perspective, central to their groundbreaking work, shifted organizational theory away from mechanical models toward a more realistic, behavioral view.
The Decision-Making and Communication Perspective
At the heart of Simon and March’s theory is the concept of bounded rationality. They argued that humans are not perfectly rational economic actors; instead, our ability to make optimal decisions is limited (“bounded”) by cognitive constraints, incomplete information, and time pressures.
Given this reality, they saw organizations as social structures designed to manage these limitations and facilitate effective decision-making. In their view:
- Organizations are decision-making systems: The primary function of an organization is to process information and make choices. The structure, roles, and routines all exist to support this core activity.
- Communication is the structure: The organizational structure is not just a chart on a wall. It is the living network of communication channels and relationships through which information flows and decisions are shaped. Who communicates with whom about what defines the real structure.
- Organizations “satisfice”: Because of bounded rationality, organizations rarely make the single “best” or optimal decision. Instead, they “satisfice”—they search for and select the first option that meets a minimum level of acceptability.
Why Other Views Are Incorrect
Purely rational entities (Option A): This is precisely the classical view that Simon and March’s theory of bounded rationality was created to challenge. They argued that perfect rationality is an unrealistic assumption for human organizations.
Arrangements of personnel for agreed purposes (Option B): While this is a true and basic definition of an organization, it is not the specific, influential contribution of Simon and March. Their focus was more granular, looking at the internal processes of communication and decision-making within that arrangement.
Static structures resistant to change (Option D): Simon and March’s model is dynamic. It sees the organization as a constantly adapting system that processes information and makes decisions in response to its environment. While organizations can exhibit resistance to change, this is not their defining feature according to this theory.
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