HOW TO RESOLVE THE CONFLICT BETWEEN TOTAL OPTIMUM AND PARTIAL OPTIMA IN DECENTRALIZED ORGANIZATIONS

摘要

This paper addresses the question: How the total-optimum decision from the standpoint of the organization as a total can be implemented against the partial-optimum decisions of the subunits of the organization? This paper utilizes the 'problem -based learning (PBL)' method to probe for deeper understanding of the concept of coordination. This paper begins with a hyp othetical decision problem, and by solving the problem in the interests of the organization as a whole, shows how such a 'total optimal' solution comes into conflict with the 'partial optimal' solutions of the subunits of the organization. This paper has demonstrated that a total-optimum can only be realized through the sacrifices and concessions of the partial-opti mum of subunits. A question then arises: What are the leaders or top-managers of the organization supposed to do in order to maximize the efficiency of the organization as a whole? This paper concludes that, in order to achieve the maximum efficiency of an organization, the leaders of the organization are required: (1) to identify the idea of total-optimum for the organization, (2) to communicate the idea with the subunits of the organization, and (3) to develop a logical argument persuasive enough to make the subunits concede their partial optima in favor of the total optimum. This paper examines two cases; one with the former chairman J. Welch of General Electric, and the other with the Ex-president Chung-Hee Park of Korea. These cases will show how the two leaders exhibited their legendary leadership in identifying and implementing their total-optimal decisions for the interest of their organizations.