Conceptual Issues in Crafting Neuroeconomic - Managerial Decisions

33 Pages Posted: 27 Oct 2016

See all articles by Jyoti Satpathy

Jyoti Satpathy

University of Petroleum and Energy Studies

Adyasha Das

Indian Institute of Tourism and Travel Management

Suneetha Narendran

University of East London - Royal Docks Business School

Sandhya Das

Berhampur University

Date Written: October 26, 2016

Abstract

Decision-making is a region of intense study in neuroscience, and cognitive neuroscience, In real, World decision processes, management decisions emerge from complexly interlinked, This paper explores how brain absorbs information, recognises and frames problematic situations, and chooses appropriate responses, Brain structures suggest that brain considers various sources of information before making decision, Brain imaging technologies have stimulated neuro (managerial) studies of internal order of mind and its links with bandwidth of human decisions, How is (managerial) decision making processes carried out in brain? What are the limits of understanding thinking as a form of computing? How does previous experience alter behavior? Do we interpret research findings when neuro (managerial) logical results conflict? Imaging is an important aspect of dynamic capabilities and there is an increasing amount of evidence of how evolutionary patterns are shaped. There are yet unsolved problems in (managerial) cognition, although some of these problems have evidence supporting a hypothesized solution, and the field is rapidly evolving, What are the general implications of neuro (managerial) management? What happens in brain or is activated when Managers make decisions or are in the process of making decisions? Is study of decisionmaking via neuromanagement processes relevant for Managers? Many Managers seek information than required thereby causing delay because of time required to process information. This impairs effectiveness of decision. In this state, neuromanagement seeks to explain decision-making, ability to process multiple alternatives and choose optimal course of action. It studies how management behaviour shape understanding of brain and guide models of management. What are the coherent brain dynamics underlying prediction, control and decision making? Theoretical explanations posit that human brain accomplishes this through neural computations. Deciphering such transactions require understanding of neuro processes that implement value-dependent decision making. This leads to formulation of a ‘neuro-management decision making paradox’. The goal is a speculation of how brain implements decisions that is tied to behaviour. There are unsolved research issues; how does Manager decide in a state of vacillation, Risk and Probability? How does Manager decide in state of VUCA (Uncertainty, Vulnerability, Complexity and Ambiguity? How do we make decisions? How do human brains compute and represent abstract ideas? What counts as explanation of how brain works (what are function, algorithm and implementation)? This paper attempts at addressing current pace of advances in methods (fMRI, BOLD, EEG, ECG, etc), where we are going and what we ought to research next. This Paper attempts to explore phenomena through individual action, decision-making and reasoning processes. Objective is to put forward a model for neuro-management decision, in which interaction between variables of neuro-management decision processes are addressed through series of measurements of brain activity at time of decisions. Attempt is to describe a regular model for decision making process with intent of linking neuro-psycho and management levels of analysis capable of predicting observed behaviour. This provides conceptual framework for understanding and conducting Neuro (managerial) management research at intersection of neuro (managerial) science, management and psychology, offer solution through measurements of brain activity at time of decisions, linking and spanning neuro(managerial) biological and psychological and management levels of analysis.

Keywords: Cognitive Neuroscience, Brain Imaging, Coherent Brain Dynamics, VUCA, fMRI, BOLD, EEG, ECG

Suggested Citation

Satpathy, Jyoti and Das, Adyasha and Narendran, Suneetha and Das, Sandhya, Conceptual Issues in Crafting Neuroeconomic - Managerial Decisions (October 26, 2016). Available at SSRN: https://ssrn.com/abstract=2859866 or http://dx.doi.org/10.2139/ssrn.2859866

Jyoti Satpathy (Contact Author)

University of Petroleum and Energy Studies ( email )

Sela Qui
Dehradun
Dehradun, 248007
India
06742382008 (Phone)

Adyasha Das

Indian Institute of Tourism and Travel Management ( email )

Gwalior, Madhya Pradesh
India

Suneetha Narendran

University of East London - Royal Docks Business School ( email )

4-6 University Way
London, E16 2RD
United Kingdom

Sandhya Das

Berhampur University ( email )

Ganjam Odisha
Berhampur, Orissa
India

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