A Humanistic Approach to Organizations and to Organizational Decision-Making
24 Pages Posted: 7 Oct 2009
Date Written: August 4, 2009
This paper attempts to take steps towards the formulation of a more human approach to the theory of the firm than the conventional economics-based models. Unbounded rationality, self-interest and the absence of learning are shown to be crucial assumptions of conventional economic theory. Then, the essential assumptions of an alternative approach are put forward and discussed. Next, I present an alternative view of organizations, which has its foundations in the concepts of mission, distinctive competence, identification and unity. Finally, the implications of such an approach for management decision-making are shown, emphasizing that three criteria have to be considered in any non-trivial decision in an organizational context.
Keywords: theory of the firm, bounded rationality, self-interest, distinctive competence, mission, identification
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