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Goal partitioning in a hierarchical organization

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  • Freeland, James R
  • Baker, Norman R

Abstract

A mathematical model of the resource allocation decision process in a two level decentralized organization is presented. The model and solution procedure are capable of representing a wide range of behavioral situations. Some important aspects of the model are: (1) It allows for informational autonomy at both levels of the organization. (2) The structure of the organization can affect the final decision. (3) The goal setting behavior of the superordinate and the subordinates explicitly accounts for the decision maker's "bounded rationality". (4) The model explicitly allows for both the superordinate and the subordinates to have their own set of goals. (5) A final decision is reached through an iterative information exchange between the superordinate and the subordinates. (6) The solution procedure leads to a resource allocation plan which reflects both the superordinate's goals and the subordinates' goals.

Suggested Citation

  • Freeland, James R & Baker, Norman R, 1975. "Goal partitioning in a hierarchical organization," Omega, Elsevier, vol. 3(6), pages 673-688, December.
    • Handle: RePEc:eee:jomega:v:3:y:1975:i:6:p:673-688
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    Cited by:

    1. Athanassopoulos, Antreas D., 1995. "Goal programming & data envelopment analysis (GoDEA) for target-based multi-level planning: Allocating central grants to the Greek local authorities," European Journal of Operational Research, Elsevier, vol. 87(3), pages 535-550, December.
    2. Tengku Adil Tengku Izhar & Torab Torabi, 2021. "Ontology Data Dependency Analysis for Organizational Goals Achievement," Business Management and Strategy, Macrothink Institute, vol. 12(1), pages 160-182, June.
    3. Psarras, J. & Capros, P. & Samouilidis, J.-E., 1990. "4.5. Multiobjective programming," Energy, Elsevier, vol. 15(7), pages 583-605.
    4. Gomez, T. & Gonzalez, M. & Luque, M. & Miguel, F. & Ruiz, F., 2001. "Multiple objectives decomposition-coordination methods for hierarchical organizations," European Journal of Operational Research, Elsevier, vol. 133(2), pages 323-341, January.
    5. Goedhart, Marc H. & Spronk, Jaap, 1995. "An interactive heuristic for financial planning in decentralized organizations," European Journal of Operational Research, Elsevier, vol. 86(1), pages 162-175, October.

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