Standard operating procedures
Standard operating procedures are part of the formal structure of organizations. They serve
to coordinate divisional labour processes. At the same time, they are part of the decision
environment organizations equipe their members with: SOPs limit the aspect of reality which
is relevant for certain decisions. Thus, they reduce the complexity of decision problems.
As well, SOPs can be the result of trial-and-error processes. Thus, they might be regarded
as an accumulation of organizational experience. According to this view, SOPs heighten the
level of problem handling, respectively the rationality of decision makers in organizations.
They enable individuals with limited rationality to engage in more effective information
gathering and -processing. However, decisions in Organizations are not just executions of
SOPs. Rather, SOPs need to be complemented by interpretations of decision makers.
Eventually, strict observance of SOPs might even result in dysfunctional or irrational
decisions.
See also:
frame,
script,
organizational learning,
organizational studies: behavioral
Literature:
Cyert & March (1963),
March (1994),
March & Simon (1958),
Nelson & Winter (1982),
Simon (1976)
