Psychology of Decision

A decision maker (DM) selects a project from a set of alternatives with uncertain productivity. After the choice, she observes a signal about productivity and decides how much effort to put in. This paper analyzes the optimal decision problem of the DM who rationally filters information to deal with her post-decision cognitive dissonance. It is shown that the optimal effort level for a project can be affected by unchosen projects in her choice set, and the nature of the choice set-dependence (...) is determined by the signal structure. Some comparative statics of choice set-dependence is also provided. Finally, based on the results, the optimal choice set design is also explored. This paper offers a simple framework to explain the experimental finding in psychology that people’s effort level for a project can be enhanced when the project is chosen by themselves rather than by others. (shrink)

Ramsey (1926) sketches a proposal for measuring the subjective probabilities of an agent by their observable preferences, assuming that the agent is an expected utility maximizer. I show how to extend the spirit of Ramsey's method to a strictly wider class of agents: risk-weighted expected utility maximizers (Buchak 2013). In particular, I show how we can measure the risk attitudes of an agent by their observable preferences, assuming that the agent is a risk-weighted expected utility maximizer. Further, we can leverage (...) this method to measure the subjective probabilities of a risk-weighted expected utility maximizer. (shrink)

In late-nineteenth-century economics, there was an epoch-defining shift from the labour theory of value to the marginal utility theory of value. According to the latter, the economic value of some circumstance (obtaining some good, some service, and so on) is its subjective utility at the margin. Thus, while there is an absolute sense in which I prefer having water to having diamonds, at the present moment I value one more unit of diamonds more than I value one more unit of (...) water. That is why I am willing to pay a higher price for a bowl of diamonds than a bowl of water of the same size, even though water is ‘more valuable’ in a sense. While the marginalists resolved a large array of anomalies that had troubled the labour theory of value, they also believed that utility should be measurable if their theory was to be scientifically respectable. Taking this shift as his starting point, Ivan Moscati has provided a well-written, thorough, and insightful account of the history of utility measurement from 1870 to 1985. (shrink)

Epistemic burdens – the nature and extent of our ignorance (that and how) with respect to various courses of action – serve to determine our incentive structures. Courses of action that seem to bear impossibly heavy epistemic burdens are typically not counted as options in an actor’s menu, while courses of action that seem to bear comparatively heavy epistemic burdens are systematically discounted in an actor’s menu relative to options that appear less epistemically burdensome. That ignorance serves to determine what (...) counts as an option means that epistemic considerations are logically prior to moral, prudential, and economic considerations: in order to have moral, prudential, or economic obligations, one must have options, and epistemic burdens serve to determine our options. One cannot have obligations without doing some epistemic work. We defend this claim on introspective grounds. We also consider how epistemic burdens distort surrogate decision-making. The unique epistemology of surrogate cases makes the priority of the epistemic readily apparent. We then argue that anyone who accepts a principle similar to ought implies can is committed to the logical priority of the epistemic. We also consider and reject several possible counterarguments. -/- . (shrink)

Berger (forthcoming) states that moral intimacy is important in applying the best interests standard. But what he calls moral intimacy requires that someone has overcome epistemic burdens needed to represent the patient. We argue elsewhere that good surrogate decision-making is first and foremost a matter of overcoming epistemic burdens, or those obstacles that stand in the way of a surrogate decision-maker knowing what a patient wants and how to satisfy those preferences. Berger’s notion of moral intimacy depends on epistemic intimacy: (...) the fact that a surrogate's epistemic burdens with respect to the best interests of the incapacitated patient have been adequately surmounted, plus some other feature. Thus, where a particular patient-surrogate relationship fails to be morally intimate, what is lacking is either epistemic intimacy or this second feature. Furthermore, Berger uses the notion of moral intimacy as an explanans for the application of the best interests standard. We argue that the notions of epistemic intimacy and epistemic burdens not only help to explain the notion of moral intimacy, but also better explain the application of the best interests standard. Given the role of epistemic burdens and the epistemic intimacy that overcoming them enables, bioethicists and physicians should consider a surrogate’s epistemic standing relative to the patient’s best interests before pronouncing on the former’s ethical probity. (shrink)

In this paper, I examine the decision-theoretic status of risk attitudes. I start by providing evidence showing that the risk attitude concepts do not play a major role in the axiomatic analysis of the classic models of decision-making under risk. This can be interpreted as reflecting the neutrality of these models between the possible risk attitudes. My central claim, however, is that such neutrality needs to be qualified and the axiomatic relevance of risk attitudes needs to be re-evaluated accordingly. Specifically, (...) I highlight the importance of the conditional variation and the strengthening of risk attitudes, and I explain why they establish the axiomatic significance of the risk attitude concepts. I also present several questions for future research regarding the strengthening of risk attitudes. (shrink)

Arguments for moral consequentialism often appeal to an alleged structural similarity between consequentialist reasoning in ethics and rational decision-making in everyday life. Ordinary rational decision-making is seen as a paradigmatic case of goal-oriented, teleological decision-making, since it allegedly aims at maximizing the goal of preference satisfaction. This chapter describes and discusses a neglected type of preference change, “predictable preference accommodation.” This phenomenon leads to a number of critical cases in which the rationality of a particular choice does not depend on (...) features of the outcome of the chosen act. On the basis of these cases, it is argued that consequentialists cannot point to everyday decision-making as an uncontroversial example of consequentialist reasoning. On the contrary, it is suggested that an adequate account of rationality in prudential choice may need a Kantian notion of respect. (shrink)

The article addresses the problem of making life decisions by people during the period of late adolescence; describes the specifics of the influence of various factors, in particular, the sense of life orientations, life position, impulsivity; the questions of the influence of fear on the process of making life decisions by young people; and the influence of various types of fears on this process. -/- The results of the research show that the influence of fears on the process of making (...) life decisions during the late adolescence is largely determined by characteristics of this age period, such as the formation of identity and the affirmation of one’s own self in the society. Thus, the most influential types of fears during this period are sociophobia, which consists of fear of social opinions and fear of social interactions; and fortunophobia (fear of fate). Sociophobia has such a powerful influence because young people go through the process of separation from their parents and joining society as separate individuals, and therefore the society’s opinion about them as an identity becomes very important to them. Fortunophobia is essentially the fear of the unknown and unavoidable fate, which is an inseparable part of making any life decision, especially in such a young age when people are only making their first crucial life decisions. According to the conducted research, meaningfulness of life has a reverse effect on the impact of fears on making life decisions, which means that with a greater meaningfulness of the individual’s life, the impact of fears is reduced. At the same time, impulsiveness has a direct effect, i.e. the more impulsive an individual is, the more influence fear has on their making life decisions. Life position of “Me + World –” is the least influenced by fears during the process of making life decisions. Also, the influence of fears appears to be more of a motivating factor rather than constraining, which forces young people to act and change their lives. (shrink)

We aim to establish the following claim: other factors held constant, the relative weights of the epistemic burdens of competing treatment options serve to determine the options that patient surrogates pursue. Simply put, surrogates confront an incentive, ceteris paribus, to pursue treatment options with respect to which their knowledge is most adequate to the requirements of the case. Regardless of what the patient would choose, options that require more knowledge than the surrogate possesses (or is likely to learn) will either (...) be neglected altogether or deeply discounted in the surrogate’s incentive structure. We establish this claim by arguing that the relation between epistemic burdens and incentives in decision-making is a general feature of surrogate decision-making. After establishing the claim, we draw out some of the implications for surrogate decision-making in medicine and offer philosophical and psychological explanations of the phenomenon. (shrink)

The notion of risk plays a central role in economics, finance, health, psychology, law and elsewhere, and is prevalent in managing challenges and resources in day-to-day life. In recent work, Duncan Pritchard (2015, 2016) has argued against the orthodox probabilistic conception of risk on which the risk of a hypothetical scenario is determined by how probable it is, and in favour of a modal conception on which the risk of a hypothetical scenario is determined by how modally close it is. (...) In this article, we use Pritchard’s discussion as a springboard for a more wide-ranging discussion of the notion of risk. We introduce three different conceptions of risk: the standard probabilistic conception, Pritchard’s modal conception, and a normalcy conception that is new (though it has some precursors in the psychological literature on risk perception). Ultimately, we argue that the modal conception is ill-suited to the roles that a notion of risk is required to play and explore the prospects for a form of pluralism about risk, embracing both the probabilistic and the normalcy conceptions. (shrink)

To what extent do our beliefs, and how strongly we hold them, depend upon how they matter to us, on what we take to be at stake on them? The idea that beliefs are sometimes stake-sensitive (Armendt 2008, 2013) is further explored here, with a focus on whether beliefs may be stake-sensitive and rational. In contexts of extended deliberation about what to do, beliefs and assessments of options interact. In some deliberations, a belief about what you will do may rationally (...) influence your estimate of the value of doing it; deliberation dynamics provides a framework for modeling such interactions. A distinction is drawn between sensitivity to the magnitude of the stakes, and sensitivity to the shape of the stakes. Contexts of extended deliberation are settings in which some beliefs that p rationally depend on the shape of the stakes on p. The dependence is either rational stake-sensitivity or an outcome of rational learning; empirical evidence concerning contexts of deliberation may lead us to model rational beliefs in one way or the other. (shrink)

We often make decisions with incomplete knowledge of their consequences. Might people nonetheless expect others to make optimal choices, despite this ignorance? Here, we show that people are sensitive to moral optimality: that people hold moral agents accountable depending on whether they make optimal choices, even when there is no way that the agent could know which choice was optimal. This result held up whether the outcome was positive, negative, inevitable, or unknown, and across within-subjects and between-subjects designs. Participants consistently (...) distinguished between optimal and suboptimal choices, but not between suboptimal choices of varying quality — a signature pattern of the Efficiency Principle found in other areas of cognition. A mediation analysis revealed that the optimality effect occurs because people find suboptimal choices more difficult to explain and assign harsher blame accordingly, while moderation analyses found that the effect does not depend on tacit inferences about the agent's knowledge or negligence. We argue that this moral optimality bias operates largely out of awareness, reflects broader tendencies in how humans understand one another's behavior, and has real-world implications. (shrink)

This collection of articles was written over the last 10 years and edited to bring them up to date (2019). All the articles are about human behavior (as are all articles by anyone about anything), and so about the limitations of having a recent monkey ancestry (8 million years or much less depending on viewpoint) and manifest words and deeds within the framework of our innate psychology as presented in the table of intentionality. As famous evolutionist Richard Leakey says, it (...) is critical to keep in mind not that we evolved from apes, but that in every important way, we are apes. If everyone was given a real understanding of this (i.e., of human ecology and psychology to actually give them some control over themselves), maybe civilization would have a chance. As things are however the leaders of society have no more grasp of things than their constituents and so collapse into anarchy is inevitable. -/- The first group of articles attempt to give some insight into how we behave that is reasonably free of theoretical delusions. In the next three groups, I comment on three of the principal delusions preventing a sustainable world— technology, religion and politics (cooperative groups). People believe that society can be saved by them, so I provide some suggestions in the rest of the book as to why this is unlikely via short articles and reviews of recent books by well-known writers. -/- It is critical to understand why we behave as we do and so the first section presents articles that try to describe (not explain as Wittgenstein insisted) behavior. I start with a brief review of the logical structure of rationality, which provides some heuristics for the description of language (mind, rationality, personality) and gives some suggestions as to how this relates to the evolution of social behavior. This centers around the two writers I have found the most important in this regard, Ludwig Wittgenstein and John Searle, whose ideas I combine and extend within the dual system (two systems of thought) framework that has proven so useful in recent thinking and reasoning research. As I note, there is in my view essentially complete overlap between philosophy, in the strict sense of the enduring questions that concern the academic discipline, and the descriptive psychology of higher order thought (behavior). Once one has grasped Wittgenstein’s insight that there is only the issue of how the language game is to be played, one determines the Conditions of Satisfaction (what makes a statement true or satisfied etc.) and that is the end of the discussion. No neurophysiology, no metaphysics, no postmodernism, no theology. -/- It is my contention that the table of intentionality (rationality, mind, thought, language, personality etc.) that features prominently here describes more or less accurately, or at least serves as an heuristic for, how we think and behave, and so it encompasses not merely philosophy and psychology, but everything else (history, literature, mathematics, politics etc.). Note especially that intentionality and rationality as I (along with Searle, Wittgenstein and others) view it, includes both conscious deliberative System 2 and unconscious automated System 1 actions or reflexes. -/- The next section describes the digital delusions, which confuse the language games of System 2 with the automatisms of System one, and so cannot distinguish biological machines (i.e., people) from other kinds of machines (i.e., computers). The ‘reductionist’ claim is that one can ‘explain’ behavior at a ‘lower’ level, but what actually happens is that one does not explain human behavior but a ‘stand in’ for it. Hence the title of Searle’s classic review of Dennett’s book (“Consciousness Explained”)— “Consciousness Explained Away”. In most contexts ‘reduction’ of higher level emergent behavior to brain functions, biochemistry, or physics is incoherent. Even for ‘reduction’ of chemistry or physics, the path is blocked by chaos and uncertainty. Anything can be ‘represented’ by equations, but when they ‘represent’ higher order behavior, it is not clear (and cannot be made clear) what the ‘results’ mean. Reductionist metaphysics is a joke, but most scientists and philosophers lack the appropriate sense of humor. -/- The last section describes The One Big Happy Family Delusion, i.e., that we are selected for cooperation with everyone, and that the euphonious ideals of Democracy, Diversity and Equality will lead us into utopia, if we just manage things correctly (the possibility of politics). Again, the No Free Lunch Principle ought to warn us it cannot be true, and we see throughout history and all over the contemporary world, that without strict controls, selfishness and stupidity gain the upper hand and soon destroy any nation that embraces these delusions. In addition, the monkey mind steeply discounts the future, and so we cooperate in selling our descendant’s heritage for temporary comforts, greatly exacerbating the problems. The only major change in this edition is the addition in the last article of a short discussion of China, a threat to peace and freedom as great as overpopulation and climate change and one to which even most professional scholars and politicians are oblivious so I regarded it as sufficiently important to warrant a new edition. -/- I describe versions of this delusion (i.e., that we are basically ‘friendly’ if just given a chance) as it appears in some recent books on sociology/biology/economics. Even Sapolsky’s otherwise excellent “Behave”(2017) embraces leftist politics and group selection and gives space to a discussion of whether humans are innately violent. I end with an essay on the great tragedy playing out in America and the world, which can be seen as a direct result of our evolved psychology manifested as the inexorable machinations of System 1. Our psychology, eminently adaptive and eugenic on the plains of Africa from ca. 6 million years ago, when we split from chimpanzees, to ca. 50,000 years ago, when many of our ancestors left Africa (i.e., in the EEA or Environment of Evolutionary Adaptation), is now maladaptive and dysgenic and the source of our Suicidal Utopian Delusions. So, like all discussions of behavior (philosophy, psychology, sociology, biology, anthropology, politics, law, literature, history, economics, soccer strategies, business meetings, etc.), this book is about evolutionary strategies, selfish genes and inclusive fitness (kin selection, natural selection). -/- The great mystic Osho said that the separation of God and Heaven from Earth and Humankind was the most evil idea that ever entered the Human mind. In the 20th century an even more evil notion arose, or at least became popular with leftists—that humans are born with rights, rather than having to earn privileges. The idea of human rights is an evil fantasy created by leftists to draw attention away from the merciless destruction of the earth by unrestrained 3rd world motherhood. Thus, every day the population increases by 200,000, who must be provided with resources to grow and space to live, and who soon produce another 200,000 etc. And one almost never hears it noted that what they receive must be taken from those already alive, and their descendants. Their lives diminish those already here in both major obvious and countless subtle ways. Every new baby destroys the earth from the moment of conception. In a horrifically overcrowded world with vanishing resources, there cannot be human rights without destroying the earth and our descendant’s futures. It could not be more obvious, but it is rarely mentioned in a clear and direct way, and one will never see the streets full of protesters against motherhood. -/- The most basic facts, almost never mentioned, are that there are not enough resources in America or the world to lift a significant percentage of the poor out of poverty and keep them there. Even the attempt to do this is already bankrupting America and destroying the world. The earth’s capacity to produce food decreases daily, as does our genetic quality. And now, as always, by far the greatest enemy of the poor is other poor and not the rich. -/- America and the world are in the process of collapse from excessive population growth, most of it for the last century, and now all of it, due to 3rd world people. Consumption of resources and the addition of 4 billion more ca. 2100 will collapse industrial civilization and bring about starvation, disease, violence and war on a staggering scale. The earth loses about 2% of its topsoil every year, so as it nears 2100, most of its food growing capacity will be gone. Billions will die and nuclear war is all but certain. In America, this is being hugely accelerated by massive immigration and immigrant reproduction, combined with abuses made possible by democracy. Depraved human nature inexorably turns the dream of democracy and diversity into a nightmare of crime and poverty. China will continue to overwhelm America and the world, as long as it maintains the dictatorship which limits selfishness. The root cause of collapse is the inability of our innate psychology to adapt to the modern world, which leads people to treat unrelated persons as though they had common interests (which I suggest may be regarded as an unrecognized -- but the commonest and most serious-- psychological problem -- Inclusive Fitness Disorder). This, plus ignorance of basic biology and psychology, leads to the social engineering delusions of the partially educated who control democratic societies. Few understand that if you help one person you harm someone else—there is no free lunch and every single item anyone consumes destroys the earth beyond repair. Consequently, social policies everywhere are unsustainable and one by one all societies without stringent controls on selfishness will collapse into anarchy or dictatorship. Without dramatic and immediate changes, there is no hope for preventing the collapse of America, or any country that follows a democratic system. Hence my concluding essay “Suicide by Democracy”. -/- Those wishing to read my other writings may see Talking Monkeys 2nd ed (2019), The Logical Structure of Philosophy, Psychology, Mind and Language in Ludwig Wittgenstein and John Searle 2nd ed (2019), Suicide by Democracy 3rd ed (2019), The Logical Stucture of Human Behavior (2019) and Suicidal Utopian Delusions in the 21st Century 4th ed (2019) . (shrink)

In the wake of 9/11 and the assessment of Iraq's WMD, several inquiries placed the blame primarily on the Intelligence Community. Part of the reform that followed was a codification of analytic tradecraft standards into Intelligence Community Directive (ICD) 203 and the appointment of an analytic ombudsman in the newly created Office of the Director of National Intelligence charged with monitoring the quality of analytic products from across the intelligence community. In this paper we identify three assumptions behind ICD203: (1) (...) tradecraft standards can be employed consistently; (2) tradecraft standards sufficiently capture the key elements of good reasoning; (3) good reasoning leads to more accurate judgments. We then report on two controlled experiments that uncover operational constraints in the reliable application of the ICD203 criteria for the assessment of intelligence products. Despite criticisms of the post-9/11 and post-Iraq reform, our results highlight that ICD203, properly applied, holds potential to improve precision and accountability of intelligence processes and products. (shrink)

Background. The events of 9/11 and the October 2002 National Intelligence Estimate on Iraq's Continuing Programs for Weapons of Mass Destruction precipitated fundamental changes within the US Intelligence Community. As part of the reform, analytic tradecraft standards were revised and codified into a policy document – Intelligence Community Directive (ICD) 203 – and an analytic ombudsman was appointed in the newly created Office for the Director of National Intelligence to ensure compliance across the intelligence community. In this paper we investigate (...) the untested assumption that the ICD203 criteria can facilitate reliable evaluations of analytic products. Method. Fifteen independent raters used a rubric based on the ICD203 criteria to assess the quality of reasoning of 64 analytical reports generated in response to hypothetical intelligence problems. We calculated the intra-class correlation coefficients for single and group-aggregated assessments. Results. Despite general training and rater calibration, the reliability of individual assessments was poor. However, aggregate ratings showed good to excellent reliability. Conclusions. Given that real problems will be more difficult and complex than our hypothetical case studies, we advise that groups of at least three raters are required to obtain reliable quality control procedures for intelligence products. Our study sets limits on assessment reliability and provides a basis for further evaluation of the predictive validity of intelligence reports generated in compliance with the tradecraft standards. (shrink)

The philosophy of animal rights is often characterized as an exclusively justice oriented approach to animal liberation that is unconcerned with, and moreover suspicious of, moral emotions, like sympathy, empathy, and compassion. I argue that the philosophy of animal rights can, and should, acknowledge that compassion plays an integral role in animal liberation discourse and theory. Because compassion motivates moral actors to relieve the serious injustices that other animals face, or, at the very least, compassion moves actors not to participate (...) in or cause these injustices, the philosophy of animal rights can and should recognize both a duty to cultivate compassion and a duty to promote compassion. Contra to feminist critiques of Regan’s justice-approach to ethics, the philosophy of animal rights is not committed to eschewing the moral emotions. (shrink)

A cognitivist account of decision-making views choice behaviour as a serial process of deliberation and commitment, which is separate from perception and action. By contrast, recent work in embodied decision-making has argued that this account is incompatible with emerging neurophysiological data. We argue that this account has significant overlap with an embodied account of predictive processing, and that both can offer mutual development for the other. However, more importantly, by demonstrating this close connection we uncover an alternative perspective on the (...) nature of decision-making, and the mechanisms that underlie our choice behaviour. This alternative perspective allows us to respond to a challenge for predictive processing, which claims that the satisfaction of distal goal-states is underspecified. Answering this challenge requires the adoption of an embodied perspective. (shrink)

The present paper focuses on the heuristic selection process preceding the actual transitive reasoning process. A part of the difficulty of transitive reasoning lies in the selection of the relevant problem aspects. Two experiments are presented using the paradigm introduced by Markovits, Dumas, and Malfait (1995), in which children were asked to make “higher than” inferences about arrays of coloured blocks. In order to discriminate between genuine transitive inference and a simple strategy of relative position, Markovits et al. interspersed white (...) blocks with the coloured blocks, such that the relative position strategy leads to erroneous responses. However, we argue that the white blocks cause confusion due to their ambiguity, which interferes with the heuristic selection process. Two methodological adaptations were introduced, which are hypothesised to facilitate the selection process and improve transitive reasoning: (1) the white blocks were replaced by coloured blocks, and (2) a less abstract context was added to the experimental design. The colour manipulation leads to a clear increase in the use of a transitive strategy by 9-year-old children; 8-year-old children mainly used the relative position strategy. When adding a context story, 9-year-old children used the transitive strategy regardless of the colour of the interspersed blocks. The overall performance of 8-year-olds improved slightly. These results are interpreted as support for a dual-process model of transitive reasoning. (shrink)

G. W. Leibnizin mielenfilosofiassa ymmärrykselle on jatkuvasti läsnä erilaisia taipumuksia erilaisiin päämääriin. Nämä taipumukset tai syyt toimia jollakin tavoin saattavat perustua selviin ja tarkkoihin havaintoihin ja olla tiedostettuja ennakkotahtomuksia. Näiden lisäksi mielessämme on epälukuinen määrä epäselviin havaintoihin perustuvia tiedostamattomia ja hetkittäisiä passioita, oikkuja tai hurahduksia. Kun henkilö ryhtyy harkitsemaan toimintaansa, nämä erilaiset taipumukset ja ennakkotahtomukset alkavat ottaa mittaa toisistaan. Prosessin tuloksena on lopullinen tahtomus tai riittävä syy. Kun ymmärrys on muodostanut suosituksen, tahto seuraa Leibnizin mukaan sitä ja toteuttaa ao. toiminnan. (...) -/- Ideaalitapauksessa ymmärryksen suositus on optimi näistä eri suuntiin johtavista syistä. Tavallisesti kyseessä on kuitenkin kompromissi, joka johtuu epäselvien havaintojen häiritsevästä vaikutuksesta harkintaan. Mitä paremmin ymmärrys toimii ja mitä tarkempia havainnot ovat, sen parempi on ymmärryksen toimintasuositus ja sita vahvemmalla ovat selvän ja tarkan joukkue epäselvän joukkuetta vastaan. Kuvaan esitelmässäni ylläolevan tilanteen ja tarkastelen tapoja, jolla agentti voi vaikuttaa toimintaansa. Vertailen myös pikaisesti Hobbesin ja Leibnizin näkemyksiä riittävästä syystä. (shrink)

A network of gene regulation organized in a hierarchical and combinatorial manner is crucially involved in the development of the neural network, and has to be considered one of the main substrates of genetic change in its evolution. Though qualitative features may emerge by way of the accumulation of rather unspecific quantitative changes, it is reasonable to assume that at least in some cases specific combinations of regulatory parts of the genome initiated new directions of evolution, leading to novel capabilities (...) of the brain. These notions are applied, in this paper, to the evolution of the capability of cognition-based human empa­thy. It is suggested that it has evolved as a secondary effect of the evolution of strategic thought. Development of strategies depends on abstract representations of one’s own pos­sible future states in one’s own brain to allow assessment of their emotional desirability, but also on the representation and emotional evaluation of possible states of others, allowing anticipation of their behaviour. This is best achieved if representations of others are con­nected to one’s own emotional centres in a manner similar to self-representations. For this reason, the evolution of the human brain is assumed to have established representations with such linkages. No group selection is involved, because the quality of strategic thought affects the fitness of the individual. A secondary effect of this linkage is that both the actual states and the future perspectives of others elicit vicarious emotions, which may contribute to the motivations of altruistic behaviour. (shrink)

This chapter introduces a research-based conceptual framework for the study of the inner psychosocial reality of business enterprises. It is called the Inner Organizational Ecosystem Approach (IOEA). This model is systemic in nature, and it defines the basic features of small and medium-size enterprises, such as elements, structures, borders, social actors, organizational climate, processes and resources. Further, it also covers the dynamics of psychosocial reality, processes, emergent qualities and the higher-order subsystems of the overall organizational ecosystem, including the global business (...) environment, which is understood as a macro-system where all the individual organizational ecosystems co-exist. In the applied part of the chapter, cognitive changes emerging within systemic leadership training are defined. Participation in systemic training causes changes in the cognitive processing of reality, more specifically improvements in layer-based framing, relativistic contextual orientation, temporality drift and meaning generation. All of these changes are components of the systemic mind, which is a concept newly proposed and defined by the present study. The systemic mind is a living matrix that is extremely open to acquiring new skills and new patterns of thinking, analyzing and meaning generation. It is processual and it can be considered as an ongoing process of continuous absorption of new cognitive patterns. Both the Inner Organizational Ecosystem Approach and the concept of the systemic mind provide a new theoretical background for empirical investigation in the fields of systemic and systems psychology, complexity psychology, organizational psychology, economic anthropology and the social anthropology of work. (shrink)

This chapter includes a discussion of leadership decisions and stress. Many leaders are daily exposed to stress when they must make decisions, and there are often social reasons for this. Social standards suggest that a leader must be proactive and make decisions and not flee the situation. Conflict often creates stress in decision-making situations. It is important for leaders to understand that it is not stress in itself that leads to bad decisions, rather, bad decisions may be the result of (...) time pressure in the sense that leaders have not been able to gather enough relevant information. Thus, it is worthwhile for leaders to be able to prioritize properly in order to cope with stressful situations. In some situations, a leader chooses to delegate the decisions to his/her team and then it is important to guard against «groupthink», a phenomenon where members of a team put consensus before anything else as a result of the peer pressure. A number of methods are presented that enable leaders to avoid this phenomenon. Often leaders are involved in decision-making situations where they are forced to navigate between objectives that are in strong conflict with each other. We are talking about «decision dilemmas». These are characterized by the existence of a conflict between the top leadership's desire to control the activities and their wish to give autonomy and independence to the various units. It is important for leaders to be able to strike a balance in different dilemma situations and understand how to best manage conflicts when they arise -/- . (shrink)

This chapter makes it clear that a significant element of both leadership and decision making is the development aspect. Leaders develop in their decision making by being confronted with difficult decision situations. However, they also develop through various forms of systemized training and education. Different leaders tend to develop in different directions. For this reason, one can identify a number of key leadership styles based on different ways of leading. These different styles are appropriate for various types of organization. Some (...) organizations require a strict and authoritative style, while others are in greater need of a more democratic style. Senior leaders often have the capacity to switch between different leadership styles depending on how the situation develops. In addition, there are a number of key decision-making roles that leaders are expected to manage. These include the role of entrepreneur, problem-solver, resource-allocator and negotiator. Leaders must also learn to work with clarity, conviction, courage, and communication in order to facilitate their decisions. Research shows that leaders who face severe adversity in their careers often are forced to make many difficult decisions. As a result they develop. Being forced to make difficult decisions actually leads to reflection, self-awareness and self-knowledge of one’s own values. Leaders also develop by communicating their problems in a structured way with more experienced colleagues. The fact that leaders develop by making difficult decisions leads to various forms of action having a central role. It is by putting decisions into action that leaders develop, as well as by reflecting on what alternative decisions could have been made. An action perspective on leadership decisions is closely linked to the concept of sense-making. This phenomenon implies observation, action, revision and communication in the aftermath of a decision. There is research indicating that reflection, critical thinking, intuition, ethics and communication are important dimensions of leaders and decision makers who are generally perceived as wise. -/- . (shrink)

This chapter illustrates that in order to reach a decision a leader must decide which persons should be involved in the process and when. A relatively common method of involving others is delegating the decision to a group. A main objective of this is often to generate as many innovative ideas as possible, and different techniques can be employed for this, including brainstorming. The proposal generated must then be validated by the group using different criteria on the basis of which (...) it is then relatively easy to filter out proposals that do not reach the goals that have been set. However, a leader needs to collect additional information in order to reach a decision. By the use of information technology vast amounts of information may be accumulated. Thus, different kinds of filtering or weeding methods must be used in order to quickly obtain relevant information. This information can help leaders create forecasts and minimize risks. They must also be able to present their ideas in the most attractive way possible in order to be heard and arrive at decisions. The design of the presentation is therefore critical. Sometimes it is not enough for leaders just to present an idea, they are then obliged to negotiate in order to reach a decision. -/- . (shrink)

In this chapter it is pointed out that leaders who make decisions normally rely on both their intuition and their analytical thinking. Modern research shows that intuitive thinking has the potential to support the analytical, if used properly. Leaders must therefore be aware of the possibilities and limitations of intuition. Fresh thinking and innovation are key elements in leadership analysis, thus creative problem-solving is an important complement to traditional leadership thinking. Creative leaders work extensively with both intuition and logic. They (...) also often work with metaphors, analogies, images and imagination to create dynamism in the analysis of a problem. Many leaders come in daily contact with problems that are not necessarily self-generated. It is therefore important that they have the opportunity to take an outside perspective on the situation. They must be able to define the problems which are of strategic importance for the activity. Leaders should not allow themselves to be stressed too much by various everyday problems, but be aware that they usually cannot just ignore them. After delineating a problem a leader should think through what trials ought to be conducted to test a given hypothesis about reality. This can be done by showing how different problems are related to each other. When analyzing various problems it is useful to clarify what kinds of decisions theyrelate to. Some decisions must be made directly, while others canbe postponed. Some decisions are reversible in nature while others are irrevocable -/- . (shrink)