Neuro - Economic Actors in Organisational Decision Making: an Anthology

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Neuro - Economic Actors in Organisational Decision Making: An Anthology Dr Jyotirmaya Satpathy*
‘Human behaviour, in general … is not under the constant and detailed guidance of careful and accurate hedonic calculations, but is the product of an unstable and unrational complex of reflex actions, impulses, instincts, habits, customs, fashion, and hysteria.’ – Viner (1925) Keywords: Neuroeconomics, Organisational decision Making, Somatic Markers, fMRI and Neural – Dynamics ---------------------------------------------------------------------------------------------------------------------------- ABSTRACT

Organisational decisions are inevitable part of human activities. Question is how people make (economic) organisational decisions. Specifically, researchers are interested in assumptions, beliefs, habits and tactics to make organisational decisions. Brain considers sources of information before organisational decision. However, how does it do this? Why does process sometimes go awry, causing impulsive, indecisive and confused organisational decisions that lead to potentially dangerous behaviours? Neuroeconomics provides tools for modeling behaviour. With different disciplines approaching through characteristically different techniques and substantial advances, question of how we design and how we ought to craft judgments and organisational decisions has engaged researchers for decades. This research investigates neural bases of organisational decision predictability and value, parameters in economics of expected utility. Neuro - multiple - systems approach to organisational decision - making, in turn, influences economics, a perspective strongly rooted in organisational psychology and neuroscience. Integration of these offer exciting potential for construction of near - accurate models of organisational decision - making. (150 words)

* Post - Doctoral Fellow, Dept of Economics, Berhampur University, Odisha.

Neuro - Economic Actors in Organisational Decision Making: An Anthology Dr Jyotirmaya Satpathy, India
Introduction
Deciphering brain - environment transactions requires mechanistic understandings of neurobiological processes that implement value-dependent organisational decision-making. There is a crucial difference between ‘thinking about thinking’ and actually enhancing brain and mental processes by developing latent potential of each individual. Theoretical accounts posit that human brain accomplishes this through a series of neural computations, in which expected future reward of different organisational decision options are compared with one another and then option with highest expected value is selected. If human brain is often compared with computer, one aspect is crucially missing. Humans define goals for information processing in computers, whereas goals for biological brains are determined by need for survival in uncertain and competitive environments. How to handle brains behind businesses in age of dramatic change and growing uncertainty? What then are the coherent brain dynamics underlying prediction, control and organisational decision-making? For a long time, economists have argued that humans make organisational decisions by obeying laws of rationality. Expected utility theory has dominated understanding of organisational decision making by postulating that under majority of circumstances, consumers make organisational decisions and choices by maximizing utility of any given outcome. However, in observing own behaviours and those of others we know that often this is not the case. We do not engage in a mental cost-benefit analysis to determine which choice to make. This holds true for both risky and non-risky...
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