Organizational Decision MakingZur Shapira Decision making in organizations is often pictured as a coherent and rational process in which alternative interests and perspectives are considered in an orderly manner until the optimal alternative is selected. Yet, as many members of organizations have discovered from their own experience, real decision processes in organizations only seldom fit such a description. This book brings together researchers who focus on cognitive aspects of decision processes, on the one hand, and those who study organizational aspects such as conflict, incentives, power, and ambiguity, on the other. It draws from the tradition of Herbert Simon, who studied organizational decision making's pervasive use of bounded rationality and heuristics of reasoning. These multiple perspectives may further our understanding of organizational decision making. Organizational Decision Making is particularly well suited for students and faculties of business, psychology, and public administration. |
Contents
Introduction and overview | 3 |
Understanding how decisions happen in organizations | 9 |
Trying to help SLs How organizations with good intentions jointly enacted disaster | 35 |
Organizational choice under ambiguity Decision making in the chemical industry following Bhopal | 61 |
Strategic agenda building in organizations | 81 |
The social ideologies of power in organizational decisions | 111 |
Managerial incentives in organizations Economic political and symbolic perspectives | 133 |
Coordination in organizations A gametheoretic perspective | 158 |
Aligning the residuals Risk return responsibility and authority | 238 |
Organizational decision making as rule following | 257 |
Naturalistic decision making and the new organizational context | 285 |
Telling decisions The role of narrative in organizational decision making | 304 |
Bounded rationality indeterminacy and the managerial theory of the firm | 324 |
The scarecrows search A cognitive psychologists perspective on organizational decision making | 353 |
| 375 | |
| 385 | |
The escalation of commitment An update and appraisal | 191 |
The possibility of distributed decision making | 216 |
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Common terms and phrases
Academy of Management Administrative Science Quarterly agency theory agenda building alternatives ambiguity analysis argue bounded rationality choice cognitive compensation construction context contracts coordination games corporate course of action deci decision makers decision problems decision processes decision theory decision-making Dutton economic effects efficient employees environment equilibrium equity capital escalation escalation of commitment example executive compensation expected FHLBB firm Fischhoff game theory incentive information processing institutional interest rates interpretation investment judgment Kahneman Management Journal managerial March mortgages narrative Nash equilibrium Nash profile norms organization's organizational behavior organizational decision organizations outcomes payoffs perspective Pfeffer players political potential preferences probability problem processors Prospect theory psychology risk aversion risk taking role rule-following behavior S&Ls Salancik selection Shapira sion situation social Staw strategic agenda strategic issues structure sunk costs tion tive top management Tversky uncertainty University Press York Zajac