Extendable Rationality

Central to this book is the question of how people in organizations make decisions. Do they act rationally? After discussing recent studies mapping bounded rationality, the work moves on to present the socially-informed notion of 'extendable rationality'.

How do people make decisions in organizations? is the question at the core of this book. Do people act rationally? Under what conditions can information and knowledge be shared to improve decision making? Davide Secchi applies concepts and theories from cognitive science, organizational behavior, and social psychology to explore the dynamics of decision making. In particular, he integrates bounded rationality (people are only partly rational; they have (a) limited computational capabilities and (b) limited access to information) and distributed cognition (knowledge is not confined to an individual, but is distributed across the members of a group) to build upon the pioneering work of Herbert Simon (1916-2001) on rational decision making and contribute fresh insights. This book is divided into two parts. The first part (Chapters 2 to 5) explores how recent studies on biases, prospect theory, heuristics, and emotions provide the so-called map of bounded rationality. The second part (Chapter 6 to 8) presents the idea of extendable rationality. In this section, Secchi identifies the limitations of bounded rationality and focuses more heavily on socially-based decision processes and the role of docility in teaching, managing, and executing decisions in organizations. The practical implications extend broadly to issues relating to change and innovation, as organizations adapt to evolving market conditions, implementing new systems, and effectively managing limited resources. The final chapter outlines an agenda for future research to help understand the decision making characteristics and capabilities of an organization.

Applies the concepts of distributed cognition and bounded rationality to explore the dynamics of decision making in organizations Multi-disciplinary, integrating insights from cognitive science, organizational behavior, management, and social psychology One of the first books to put the concept of docility at the core of rationality and decision making Includes supplementary material: sn.pub/extras

Autorentext
Davide Secchi, PhD, is an Assistant Professor of Organizational Behavior at the University of Wisconsin-La Crosse. His research interests include distributed cognition and its implications for management; human cognition and decision making; and social responsibility. He received his masters degrees (in venture finance and international finance) and his doctorate from the University of Pavia in Italy, and holds a BS from the University of Cagliari. He presents frequently at conferences and has published widely in scholarly journals and edited volumes, including the Journal of Business Ethics (Springer).