Organizational decision making in a public organization: A case study of the new york state facilities design and construction group

Public agencies are becoming increasingly difficult to manage. Some of the commonly cited reasons are growing size, interdependence with other organizations and increasingly turbulent socio-political environments. Decision constraints and rapid change make many administrative tasks more and more demanding. One reaction to complexity has been to refine controls and complex decision-making processes. A common approach involves subdividing tasks into incremental steps and grouping these into subunits controlled by a set of centralized procedures. This study is an attempt to understand the manner by which those in public agencies organize and make complex decisions involving control processes. It is also an analysis of the applicability of research done in business to decisions in the public sector. For these reasons the investigation is the tradition of organizational decision making and draws heavily upon the work of two major theorists, Richard M. Cyert and James G. March. Investigations were carried out in two distinct but related phases: Model construction and model testing. In the model construction stage, the agency descriptions and discussions of the design process in operation were reviewed. Research data was acquired from a large cross section of decision makers in the Design and Construction Group (D&C) of the New York State Office of General Services. A more specific focus was put upon the formal documents and decisions in a selected case folder of D&C, the Bronx Children's Psychiatric Center. In order to gather and report evidence, an "interpretive" case study methodology was used. (Due to the nature of the model being tested, classical statistical tests were not appropriate. Instead a modified Turing test was adopted for such purpose.) Based upon extensive examination of a complex design project, the evidence supported the assertion that the D&C model captured a significant portion of the actual behavior of the deicision makers. Thus, the major finding of this study is that the Cyert and March theory, upon which the model was based is a valid conceptual tool for understanding the actual decision-making process in a large public agency. Conclusions from the study are organized on three different levels. First, theoretical applications and recommendations for model building. Second, recommendations for practical applications. Third, broader implications for the researcher. Finally, contributions to the improvement of public administration as a field of study and practice are considered.