Note—A Note on the Optimality of the Modified Generalized Goal Decomposition Model

Management Science · 1985 · Volume 31 · Issue 5

Abstract

This note demonstrates that Freeland's (Freeland, J. R. 1976. A note on goal decomposition in a decentralized organization. Management Sci. 23 100–102.) modification of Ruefli's (Ruefli, T. W. 1971. A generalized goal decomposition model. Management Sci. 17 505–518.) Generalized Goal Decomposition model can generate nonoptimal solutions and shows how these difficulties can be corrected. In several papers on multi-level planning, it has been suggested that extending the hierarchical levels of the models from two to three or more levels is a straightforward process. This paper shows that this assertion is generally not true. The note points out that in Freeland's (Freeland, J. R. 1976. A note on goal decomposition in a decentralized organization. Management Sci. 23 100–102.) three-level model, the interactions between the two lowest level of the hierarchy must be strictly controlled before information is passed to the highest level of the organization.

Keywords

decision process models, decomposition models, composition models, goal programing

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