A PRIMER ON DECISION MAKING - PowerPoint PPT Presentation

1 / 12
About This Presentation
Title:

A PRIMER ON DECISION MAKING

Description:

In general reliability increases with education & experience , decreased with ... Power as tautology :is positional & behavioral , is domain specific, actors have ... – PowerPoint PPT presentation

Number of Views:124
Avg rating:3.0/5.0
Slides: 13
Provided by: user52
Category:

less

Transcript and Presenter's Notes

Title: A PRIMER ON DECISION MAKING


1
A PRIMER ON DECISION MAKING
  • How Decision happen
  • James G. March
  • Eglantina Bushgjokaj

2
Rational Calculation
  • Pure rationality
  • - Knowledge , Actors , Preferences Decision
    rule
  • Limited rationality
  • - Problems of attention, memory
    ,comprehension communication .
  • Decision are made based on preference.
  • Risk taking behaviors.
  • In general reliability increases with education
    experience , decreased with the organizational
    size.
  • Instead of calculating the best possible
    action they search for an action that is good
    enough

3
Rule followers
  • Recognition
  • Identity
  • Rules
  • Multiple identities multiple rules
  • Four mechanisms
  • Experimental learning. Individuals learn to evoke
    or not to.
  • Categorization competition or themselves
  • recency .An executive that carries his role all
    day long will carry that role at home too.
  • Context of others.
  • Language as Doctor, Mr.President.
  • Rules and Environment adapt to each other by
    means of several intertwined processes
  • 1.Analysis
  • 2.Bargaining .3 Imitation 4. selection 5.
    Learning.
  • In a learning process rules change .In a
    selection process , the rules themselves do not
    change, but the mix of rules does.

4
The experimental learning cycle
  • Rules Interpretation
  • Action Outcomes
  • ___________________________
  • Aspiration , Diffusion Legitimacy

5
Teams Partners
  • Individuals Groups Organizations preferences
    identities are
  • inconsistent .
  • First stage bargaining, negotiation, policy
    making, politics a team formed.
  • Second stage the differentiation between
    politics and administration.
  • Action- Beliefs - Trust Loyalty Attention
  • Aligning Identities and rules , Selection
    ,Socialization ,Attention and Interpretation.

6
Conflicts Politics
  • Power as tautology is positional behavioral ,
    is domain specific, actors have to be activated,
    power is wasted.
  • The symbolic significance talking about power
  • Control over rules , resources,, preferences and
    identities.
  • Policy Logrolls as coalitions .A logroll is a
    coalition of individuals who are largely
    indifferent to each- other demands but agree to
    support each other so they can have what they
    wants.
  • Personal consequences
  • Social benefits
  • Creating communities
  • Standard advice for becoming powerful become
    rich, seize a hostage , built a better mouse trap
    .Have controls over preferences and identities.

7
Ambiguity Interpretation
  • 1-reality 2 casualty 3 intentionally
  • Studies of interpretation
  • Belief conservation
  • Event certainty
  • Anthropocentric focus ( events to the action
    wills of human being)
  • Bold (foolish )
    careful (timid)
  • fresh( naïve)
    sophisticated( cynical)
  • -Power story , personality story , utility story
    ,culture story
  • Inconsistent Interpretation
  • Decision and implementation
  • Why some people are rich other people are poor?

8
Garbage can process
  • Contract meetings, budget committees
    compensation decisions.
  • 1 Problem activity.
  • 2 Problem latency , issues that are not linked to
    choices
  • 3 Decision time
  • it is interactive.
  • Unrestricted
  • Temporal sorting
  • How does a mother knows what it means to act as a
    mother?
  • Ambiguities of identities
  • Gender as identity

9
Decision Engineering
  • Outcome
  • Processes
  • Symbolic significance of Decision making can be
    seen as a corruption
  • Developing myths interpretation of life, as
    modifying the diffuse beliefs and cultural
    understanding that makes events comprehensible.
  • The object of decision making is to improve
    human commitment to rationality identity

10
  • Apostles of Reckoning
  • Students of decision making their beliefs are
    the world resources are fixed. It is a
    conservation of symbolic and substantive assets.
  • Apostles of progress
  • Their believes are the worlds resources are
    expandable .By inventions and exchanges every one
    is better off. Symbolic and substantive assets
    can be augmented.
  • Adapting Inefficiencies
  • Lag in matching. Adaptation will be fast to
    improve the match .
  • Multiple equilibra
  • Networks of diffusion . The information gathered
    from network.
  • Mutual adaptation. Stable outcomes that are
    predicted before.
  • Ecologies of adaptation.

11
  • Experience
  • Rich histories
  • Multiple observers and multiple interpretations
  • Hypothetical histories.
  • Ambiguity of information
  • Profiting from ideas of others, rules , matching
    situations
  • Knowledge substitute, gained from different
    experiences
  • Politics of knowledge
  • Language and symbols
  • Engineering problem is suggesting these
  • 1 . Treat the self as hypothesis
  • 2 . Treat intuition as real
  • 3 . Treat hypocrisy as transition
  • 4 . Treat memory as an enemy
  • 5 . Treat experience as a theory .

12
Comments
  • An extraordinary rich clear analysis by the
    leading scholar in the field. This book will not
    only become a standard reader in courses of
    decision theory but will serve as an introduction
    to many related areas.
  • -Nils Brunson Professor of Management
    ,Stockholm Schools of Economics

  • Thank you !
Write a Comment
User Comments (0)
About PowerShow.com