A process for hierarchical decision making with multiple objectives

This research was motivated by a recurring management problem of a large service organization in Philadelphia. The problem concerns the contraction of service facilities. Typically, management decisions of this type and magnitude affect the entire management hierarchy. Each manager in the hierarchy may have several objectives with respect to the problem. The perspective of each manager can contribute to the decision-making process by providing additional insight into both (a) what should be done and (b) the resistance to implementation which may result. Thus the output of this research is not a solution to a particular problem but rather a process for providing critical information for decisions of this type. This paper generalizes the information gathering process and presents the results of eliciting objectives from managers, formalizing objectives into measurable attributes, and interacting with the decision makers to use their implicit preference relationships over the set of Pareto-optimal alternatives. Intuitively, the procedure is appealing as it is flexible enough to allow formal input from all pertinent decision makers in the organization, it is hierarchically consistent, it is politically acceptable, and it is not cumbersome to apply.