This is what was reported at the time.
Mitch and Jim had two options, hire Phil with extra front office perks or D'Antoni who basically just wanted a job. They take these two options to a dying Jerry Buss on his hospital bed and ask him, "Hey, we can get Phil Jackson if we give up some control. Or get D'Antoni on the cheap." Buss's line of thought is that he can get himself the showtime basketball he's been craving and he feels uncomfortable with giving up control to Phil especially after their rocky relationship in the past. So he gives the go ahead on MDA and says [expletive] you Phil.
This doesn't mean Dr. Buss is to blame, he didn't exactly understand the situation. He wasn't a part of Lakers basketball for a while at that point, if you remember he wasn't even aware of the Dwight Howard trade until Jim told him it was done. The responsibility still lies on the Lakers front office. If they were smart, they would've realized D'Antoni was a bad fit with a marquee big man like Howard and would have hired Phil without even really thinking too hard about it.