In this chapter, it is demonstrated that the concepts of leadership and organization are closely linked. A leader should initially get to know the organizational culture as well as possible. Such a culture can for example be authoritarian and conformist or innovative and progressive in nature. The assumption is that leaders are influenced by their own culture. Strategic decisions are characterized by the fact that they are new, complex and open in nature, and being able to develop a strategy is (...) one of the most difficult tasks for a leader. Traditionally, it is primarily the top leadership in an organization that works with strategic decisions, and thus it is common that strategic issues are handled by top leadership teams. This is related to the globalization of business and to the fact that the pace of work has increased significantly. In order to exercise leadership, a leader must have access to power. A power base can be created through networking as well as by using different political tactics. However, it is important to use political tactics in order to promote the organization's interests. When a leader has built up a power base, it is essential that power is used properly. The decisions that leaders make must be ethically correct and not violate universal human values. For instance, they should not lead to negative consequences for others within or outside the organization. Evidence suggests that most leaders have the potential to develop as ethical decision makers. -/- . (shrink)

Regional planning has been regarded as a design activity. Usually planners focus on physical design rather than on societal issues. Nowadays, mass communication, environmental issues and social awareness lead to often complex and conflicting needs and interests of the public in regional planning. This paper focuses on the regional planning as a group problem solving process from the view of information processing. It offers an analysis of the causes of conflicts in the group decision process, and defines (...) the characteristics of group decision process support systems. (shrink)

The influence of stakeholders, organisational commitment, personal values, goals of the organisation and socio-demographic characteristics of individuals on the ethical dimension of behavioural intentions of employees in various organisations are investigated. The research results show that employees working for the public sector or in educational institutions take more ethical aspects into account than employees working in the "private" sector. The influence of stakeholders and organisational commitment do not significantly affect the ethical behaviour of employees, and only some personal values and (...) goals of the organisation have a significant influence on ethical behaviour. The most significant explanatory factor of ethical decision making seems to be what may be called "stage in the career of the employee": "ethical" employees can be described as young, with a relatively low income, limited work experience and a low level of responsibility in the company. (shrink)

This research examines the association between attitudes on cheating and cognitive moral development. In this research, we use Rest's (1979a) Defining Issues Test, the Attitudes on Honesty Scale (Authors) and Academic Integrity Index (Authors); the last two are adaptations of the DIT. A total of 220 students from three universities participated in the study (66 psychology majors and 154 business majors). The data indicate that 66.4 percent of the students reported that they cheated in high school, college, or both high (...) school and college. Psychology majors scored higher than business majors on both the Defining Issues Test (Rest, 1979a) and the Attitudes on Honesty Scale (AHS, Authors). Using factor analysis, we found significant associations between students' ratings of the importance considerations present in the three cheating scenarios and their estimates of whether cheating would occur (i.e., the Academic Integrity Index). Finally, using logistic regression, we found that the scores on the Attitudes on Honesty Scale and Academic Integrity Index associate with the self-reported cheating behavior of college students. (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)

The theory of Markov decision processes (MDP) can be used to analyze a wide variety of stopping time problems in economics. In this paper, the nature of such problems is discussed and then the underlying theory is applied to the question of arranged marriages. We construct a stylized model of arranged marriages and, inter alia, it is shown that a decision maker's optimal policy depends only on the nature of the current marriage proposal, independent of whether there is (...) recall (storage) of previous marriage proposals. (shrink)

To address the burden of maternal morbidity and mortality in low‐ and middle‐income countries (LMICs), research with pregnant women in these settings is increasingly common. Pregnant women in LMIC‐context may experience vulnerability related to giving consent to participate in a clinical trial. To recognize possible layers of vulnerability this study aims to identify factors that influence the decision process towards clinical trial participation of pregnant women in an urban middle‐income setting. This qualitative research used participant observation, in‐depth interviews, (...) and focus group discussion with medical staff and pregnant women eligible for trial participation, at a regional hospital in Accra, Ghana. Besides lack of familiarity with modern scientific concepts, specific factors influencing the decision‐making process were identified. These include a wide power difference between health provider and patient, and a different perception of risk through externalization of responsibility of risk management within a religious context as well as a context shaped by authority. Also, therapeutic misconception was observed. The combination of these factors ensued women to rely on the opinion of the medical professional, rather than being guided by their own motivation to participation. Although being a (pregnant) woman per se should not render the label of being vulnerable, this study shows there are factors that influence the decision process of pregnant woman towards trial participation in a LMIC context that can result in vulnerability. The identification of context‐specific factors that can create vulnerability facilitates adaptation of the design and conduct of research in a culturally competent manner. (shrink)

The understanding of decision-making systems has come together in recent years to form a unified theory of decision-making in the mammalian brain as arising from multiple, interacting systems (a planning system, a habit system, and a situation-recognition system). This unified decision-making system has multiple potential access points through which it can be driven to make maladaptive choices, particularly choices that entail seeking of certain drugs or behaviors. We identify 10 key vulnerabilities in the system: (1) moving away (...) from homeostasis, (2) changing allostatic set points, (3) euphorigenic signals, (4) overvaluation in the planning system, (5) incorrect search of situation-action-outcome relationships, (6) misclassification of situations, (7) overvaluation in the habit system, (8) a mismatch in the balance of the two decision systems, (9) over-fast discounting processes, and (10) changed learning rates. These vulnerabilities provide a taxonomy of potential problems with decision-making systems. Although each vulnerability can drive an agent to return to the addictive choice, each vulnerability also implies a characteristic symptomology. Different drugs, different behaviors, and different individuals are likely to access different vulnerabilities. This has implications for an individual's susceptibility to addiction and the transition to addiction, for the potential for relapse, and for the potential for treatment. (shrink)

This article is a case study that describes the natural and human history of the gaze heuristic. The gaze heuristic is an interception heuristic that utilizes a single input repeatedly as a task is performed. Its architecture, advantages, and limitations are described in detail. A history of the gaze heuristic is then presented. In natural history, the gaze heuristic is the only known technique used by predators to intercept prey. In human history the gaze heuristic was discovered accidentally by Royal (...) Air Force fighter command just prior to World War II. As it was never discovered by the Luftwaffe, the technique conferred a decisive advantage upon the RAF throughout the war. After the end of the war in America, German technology was combined with the British heuristic to create the Sidewinder AIM9 missile, the most successful autonomous weapon ever built. There are no plans to withdraw it or replace its guiding gaze heuristic. The case study demonstrates that the gaze heuristic is a specific heuristic type that takes a single best input at the best time. Its use is an adaptively rational response to specific, rapidly evolving decision environments that has allowed those animals/humans/machines who use it to survive, prosper, and multiply relative to those who do not. (shrink)

Whereas classic work in judgment and decision making has focused on the deviation of intuition from rationality, more recent research has focused on the performance of intuition in real-world environments. Borrowing from both approaches, we investigate to which extent competing models of intuitive probabilistic decision making overlap with choices according to the axioms of probability theory and how accurate those models can be expected to perform in real-world environments. Specifically, we assessed to which extent heuristics, models implementing weighted (...) additive information integration (WADD), and the parallel constraint satisfaction (PCS) network model approximate the Bayesian solution and how often they lead to correct decisions in a probabilistic decision task. PCS and WADD outperform simple heuristics on both criteria with an approximation of 88.8% and a performance of 73.7%. Results are discussed in the light of selection of intuitive processes by reinforcement learning. (shrink)

This paper reports on a survey that investigated the moral decision processes of accountants. A formal belief revision model is adapted and hypotheses based on theorizations from the cognitive-developmental school are tested. The moral decision processes of accountants are hypothesized to be influenced by professional expectations, organizational expectations and internalized expectations. Subjects provided specific demographic data and were asked to access the appropriateness of fourteen principles for making moral decisions in business. Subjects were also asked to indicate which (...) of the fourteen approaches would be most appropriate for resolving each of five ethical situations that are representative of common ethical dilemmas in accounting.Subjects'' responses to the appropriateness of the fourteen principles are reduced to two dimensions using factor analysis. The factors are consistent and representative of important underlying dimensions of the stages of moral development. Demographic variables are correlated with the extracted factors using analysis of variance. (shrink)

We propose a neural model of multiattribute-decision processes, based on an attractor neural network with dynamic thresholds. The model may be viewed as a generalization of the elimination by aspects model, whereby simultaneous selection of several aspects is allowed. Depending on the amount of synaptic inhibition, various kinds of scanning strategies may be performed, leading in some cases to vacillations among the alternatives. The model predicts that decisions of a longer time duration exhibit a lower violation of the simple (...) scalability law, as opposed to shorter decisions. Furthermore, the model is suggested as a general attribute-based decision module. Accordingly, various decision strategies are manifested depending on the module's parameters. (shrink)

The understanding of decision-making systems has come together in recent years to form a unified theory of decision-making in the mammalian brain as arising from multiple, interacting systems (a planning system, a habit system, and a situation-recognition system). This unified decision-making system has multiple potential access points through which it can be driven to make maladaptive choices, particularly choices that entail seeking of certain drugs or behaviors. We identify 10 key vulnerabilities in the system: (1) moving away (...) from homeostasis, (2) changing allostatic set points, (3) euphorigenic signals, (4) overvaluation in the planning system, (5) incorrect search of situation-action-outcome relationships, (6) misclassification of situations, (7) overvaluation in the habit system, (8) a mismatch in the balance of the two decision systems, (9) over-fast discounting processes, and (10) changed learning rates. These vulnerabilities provide a taxonomy of potential problems with decision-making systems. Although each vulnerability can drive an agent to return to the addictive choice, each vulnerability also implies a characteristic symptomology. Different drugs, different behaviors, and different individuals are likely to access different vulnerabilities. This has implications for an individual's susceptibility to addiction and the transition to addiction, for the potential for relapse, and for the potential for treatment. (shrink)

Underscoring the economic significance of the Knightian distinction between risk and uncertainty, Don Katzner forcefully challenges the continued dominance of the expected utility model based on subjective probability in macroeconomic analysis and offers in its place a simple yet elegant model of decision making inspired by the pioneering work of G.L.S. Shackle. In doing so, Katzner lends support to a research program to identify a more coherent and empirically grounded theory of decision making under uncertainty. Our paper makes (...) three contributions to this program. First, we argue that the appropriate choice of a model of individual behavior under uncertainty cannot be adjudicated merely on logical, a priori grounds, but must ultimately be based on consistency with observed behavior. There are many internally consistent models and their external conditions of validity hardly ever rely on inconceivable scenarios. Second, while Katzner’s model certainly provides a plausible foundation for understanding choice under uncertainty, we suggest that it is somewhat underdetermined. It requires further theoretical articulation to yield testable predictions which differentiate it from competing approaches. Third, we discuss recent experimental findings that may need to be addressed by any satisfactory theoretical account of decision making under uncertainty. (shrink)

In recent years quantum probability models have been used to explain many aspects of human decision making, and as such quantum models have been considered a viable alternative to Bayesian models based on classical probability. One criticism that is often leveled at both kinds of models is that they lack a clear interpretation in terms of psychological mechanisms. In this paper we discuss the mechanistic underpinnings of a quantum walk model of human decision making and response time. The (...) quantum walk model is compared to standard sequential sampling models, and the architectural assumptions of both are considered. In particular, we show that the quantum model has a natural interpretation in terms of a cognitive architecture that is both massively parallel and involves both co-operative and competitive interactions between units. Additionally, we introduce a family of models that includes aspects of the classical and quantum walk models. (shrink)

This research examines the association between attitudes on cheating and cognitive moral development. In this research, we use Rest's (1979a) Defining Issues Test, the Attitudes on Honesty Scale (Authors) and Academic Integrity Index (Authors); the last two are adaptations of the DIT. A total of 220 students from three universities participated in the study (66 psychology majors and 154 business majors). The data indicate that 66.4 percent of the students reported that they cheated in high school, college, or both high (...) school and college. Psychology majors scored higher than business majors on both the Defining Issues Test (Rest, 1979a) and the Attitudes on Honesty Scale (AHS, Authors). Using factor analysis, we found significant associations between students' ratings of the importance considerations present in the three cheating scenarios and their estimates of whether cheating would occur (i.e., the Academic Integrity Index). Finally, using logistic regression, we found that the scores on the Attitudes on Honesty Scale and Academic Integrity Index associate with the self-reported cheating behavior of college students. (shrink)

We present a new approach to the old problem of how to incorporate the role of the observer in statistics. We show classical probability theory to be inadequate for this task and take refuge in the epsilon-model, which is the only model known to us caapble of handling situations between quantum and classical statistics. An example is worked out and some problems are discussed as to the new viewpoint that emanates from our approach.

This article answers several calls—coming as well from corporate governance practitioners as from corporate governance researchers—concerning the possibility of complying simultaneously with requirements of innovation and ethics. Revealing the long-term orientation as the variable which permits us to link the principal goal of organization, being “survival,” with innovation and ethic, the article devises a framework for incorporating ethics into a company’s processes and strategies for innovation. With the principal goal of organizations being “survival” in the long-term, it is assumed that (...) innovation is necessary in order to realize a going concern. Firms that do not innovate and adapt to rapidly changing business environments are less likely to be sustainable. Thus, it is in a business’ best interests to adopt an innovation process for long-term success. We posit that there are two simultaneous sources of innovation and change that are unavoidable and embedded in the corporate landscape. First, we argue for genetically embedded, Darwinian explanations for adaptations that enable an entity’s survival. This view is combined with more conventional, social science explanations for change. Our new, comprehensive model of the governance of innovation processes hinges on the one hand on an organization’s long-term orientation, which we argue, is not possible without a consideration of an ethical dimension. On the other hand, the model employs, for the first time, the concept of duality, in order to make the positive coexistence of innovation and ethic analytically visible. Guided by this concept the roots of the ethic within innovation are traced from both natural science forces for change, and cultural pressures operating on members of an organization. We present our Integrated Causal Model of Innovation and propose theoretical relationships that will generate numerous avenues for future research in the field, and help managers to reorient their governance strategies. (shrink)

The present study aims to connect more the I/O and the decision-making psychological domains, by showing how some common components across jobs interfere with decision-making and affecting performance. Two distinct constructs that can contribute to positive workplace performance have been considered: decision-making competency (DMCy) and decision environment management (DEM). Both factors are presumed to involve self-regulatory mechanisms connected to decision processes by influencing performance in relation to work environment conditions. In the framework of the job (...) demands-resources (JD-R) model, the present study tested how such components as job demands, job resources and exhaustion can moderate decision-making processes and performance, where high resources are advantageous for decision-making processes and performance at work, while the same effect happens with low job demands and/or low exhaustion. In line with the formulated hypotheses, results confirm the relations between both the decision-making skills, performance (i.e. in-role and extra-role) and moderators considered. In particular, employees with low levels of DMCy show to be more sensitive to job demands toward in-role performance, whereas high DEM levels increase the sensitivity of employees toward job resources and exhaustion in relation to extra-role performance. These findings indicate that decision-making processes, as well as work environment conditions, are jointly related to employee functioning. (shrink)

In our target article, we proposed that addiction could be envisioned as misperformance of a decision-making machinery described by two systems (deliberative and habit systems). Several commentators have argued that Pavlovian learning also produces actions. We agree and note that Pavlovian action-selection will provide several additional vulnerabilities. Several commentators have suggested that addiction arises from sociological parameters. We note in our response how sociological effects can change decision-making variables to provide additional vulnerabilities. Commentators generally have agreed that our (...) theory provides a framework within which to site addiction and treatment, but additional work will be needed to determine whether our taxonomy will help identify and treat subpopulations within the addicted community. (shrink)

Many criticisms have been made of optimization theory (Laville, 1999a). These objections may be explained by the fact that human rationality is bounded – that decisions are constrained by cognitive limitations (Simon, 1982). In the present paper, I will show that if rationality is bounded, then we must study the processes of decision. My thesis is that cognitive limitations lead to procedural rationality. Although this assertion has already been sustained implicitly by Simon (1959) and explicitly by Mongin (1986), it (...) has not been argued in sufficient depth. (shrink)

We develop a model of ethical decision making that integrates the decision-making process and the content variables considered by individuals facing ethical dilemmas. The process described in the model is drawn from Janis and Mann’s [1977, Decision Making: A Psychological Analysis of Conflict Choice and Commitment (The Free Press, New York)] work describing the decision process in an environment of conflict, choice and commitment. The model is enhanced by the inclusion of content variables (...) derived from the ethics literature. The resulting integrated model aids in understanding the complexity of the decision process used by individuals facing ethical dilemmas and suggests variable interactions that could be field-tested. A better understanding of the process will help managers develop policies that enhance the likelihood of ethical behavior in their organizations. (shrink)

Non-business e-commerce adoption refers to the use of e-commerce by not-for profit organizations such as religious organizations, government agencies and academic institutions to reduce their expenses or to improve their operations and customer service. Being a new research niche in the field of e-commerce, non-business e-commerce has received very little or no research attention. This has resulted in a very poor understanding of this niche, especially with regards to its adoption facilitators and inhibitors. Based on this impetus, a field survey (...) of Malaysian Universities was conducted to determine the key factors that facilitate non-business EC adoption as well as the role of gender differential. A comprehensive list of potential facilitators for the strategic use of information technology was derived from extant research reports and used to collect data from five public universities in Malaysia. The data were factor-analysed to determine the key underlying dimensions of facilitators. On the basis of the resulting five dimensions namely, relative advantage orientation, network orientation, information efficiency orientation, innovativeness orientation and competitiveness orientation, regression analysis was done to determine the impact of the five dimensions on adoption. Dummy variable was created for gender and applied in the regression analysis in order to estimate the moderation effect of sex typing on the relationship between the resulting dimensions and adoption. Implications of the findings are discussed. (shrink)

The purpose of this study was to gain a better understanding of the impact of moral issues on the moral decision-making process within the field of accounting. In particular, the study examined differences in the perceptions of the underlying characteristics of moral issues on the specific steps of the moral decision-making process of four different accounting situations.The research results suggested that student's perception of the components of moral intensity as well as the various stages of the (...) moral decision-making process was influenced by the type and intensity of the moral issue. In general, accounting student's perceptions of the importance of these variables varied between less unethical and more unethical accounting issues. The differences in perceptions of four moral intensity components: magnitude of consequences, concentration of effect, probability of effect and proximity stood out more in the accounting issues analyzed. (shrink)

Redish et al. view addictions as errors arising from the weak access points of the system of decision-making. They do not analytically distinguish between addictions, on the one hand, and errors highlighted by behavioural decision theory, such as over-confidence, representativeness heuristics, conjunction fallacy, and so on, on the other. Redish et al.'s decision-making framework may not be comprehensive enough to capture addictions.