The budget decision making process at Stanford University, California, from 1970 through 1979 was evaluated in relation to the allocation of general funds to 38 academic departments. Using Simon's theory of bounded rationality and an organizational level of analysis, the Stanford decision process was tested for its rationality through…

Five models of organizational decision-making are described, and a case study of the rational model as seen in the budget process at Stanford University during the 1970s is presented. Several issues are addressed to help administrators who are interested in increasing the organization's rational decision-making. The five models are as follows: the…