COWLES FOUNDATION FOR RESEARCH IN
ECONOMICS Box 208281
COWLES FOUNDATION DISCUSSION PAPER NO. 18 "A Theory of the Movement and Solution of Problems within an Organization" Roy Radner November 1956 The purpose of this note is to describe a theory of the movement and solution of problems within an organization, as they are related to the formal structure of authority, the informal channels of communication, and the rates at which problems arise at different points within the organization. First a general framework for such a theory is outlined, and then two particular alternative schemes are proposed. The simpler of the two is analyzed in some detail, with the goal of determining the backlog of problems that each person has when the system is in equilibrium, the rates of flow of problems between persons, and the average time it takes for a problem to get solved by the organization. This theory was suggested by an organizational model developed by R.E. Gaskell, G. Brigham, and others |
