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The decomposition approach has received increasing attention in recent years not only as a computational technique for large-scale management models but also as a systematic tool for designing organizational structure and information systems in decentralized organizations. In this paper, a revised iterative algorithm is developed for multicriteria decomposition in an organization by utilizing goal programming. The algorithm not only has the capability of dealing with multicriteria decomposition problems but is also useful for evaluating organizational effectiveness of a decentralized organization. A simple example is presented for an illustrative purpose of the algorithm application.
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