Business and Management INK

How Do Leaders Make Decisions?

May 9, 2012 773

Successful leadership is closely tied to successful decision making. But leaders are not infallible; they are only human, and when it comes to making decisions, rationality has its limits.

A new essay by  Ramon J. Aldag, the Glen A. Skillrud Family Chair in Business at the University of Wisconsin-Madison, looks at how human beings make real-world decisions, examines our limitations, and offers practical solutions for leaders and strategists. The essay, “Behavioral Decision Making: Implications for Leadership and Organizations,” kicks off the May 2012 issue of the Journal of Leadership & Organizational Studies. To view the Table of Contents, please click here.

Professor Aldag explains in the abstract:

The past few decades have witnessed greatly enhanced interest in behavioral decision theory. Unlike traditional decision theory, which is normative or prescriptive and seeks an optimal solution, behavioral decision theory (although it yields important practical implications) is inherently descriptive, seeking to understand how people actually make decisions. This article discusses rationality and its limits, approaches to examination of decision processes, and consequences of limits on rationality. Issues relating to the clinical-actuarial controversy and automatic decision making are then addressed. Two approaches to improving decision making–by use of statistical groups and prediction markets as well as by implementation of forms of paternalistic intervention–are examined. Implications for leadership and organizations are then offered.

To learn more about the Journal of Leadership & Organizational Studies, please follow this link.

Are you interested in receiving email alerts whenever a new article or issue becomes available? Then click here!

Business and Management INK puts the spotlight on research published in our more than 100 management and business journals. We feature an inside view of the research that’s being published in top-tier SAGE journals by the authors themselves.

View all posts by Business & Management INK

Related Articles

Sometimes, We Do Need a Narcissist
Business and Management INK
May 21, 2024

Sometimes, We Do Need a Narcissist

Read Now
From Collision to Collaboration: Bridging University and Industry Relationships
Business and Management INK
May 17, 2024

From Collision to Collaboration: Bridging University and Industry Relationships

Read Now
Motivation of Young Project Professionals: Their Needs for Autonomy, Competence, Relatedness, and Purpose
Business and Management INK
May 14, 2024

Motivation of Young Project Professionals: Their Needs for Autonomy, Competence, Relatedness, and Purpose

Read Now
A Complexity Framework for Project Management Strategies
Business and Management INK
May 10, 2024

A Complexity Framework for Project Management Strategies

Read Now
Bringing Theories into Conversation to Strategize for a Better World

Bringing Theories into Conversation to Strategize for a Better World

In this article, Ann Langley, Rikkie Albertsen, Shahzad (Shaz) Ansari, Katrin Heucher, Marc Krautzberger, Pauline Reinecke, Natalie Slawinski, and Eero Vaara reflect on the inspiration behind their research article, “Strategizing Together for a Better World: Institutional, Paradox and Practice Theories in Conversation,” found in the Journal of Management Inquiry.

Read Now
Exploring Discrimination Faced by Asian Nationals in the U.S. Labor Market

Exploring Discrimination Faced by Asian Nationals in the U.S. Labor Market

Amit Kramer, Kwon Hee Han, Yun Kyoung Kim, and Yun Kyoung Kim reflect on the hypotheses and observations that led to their article, “Inefficiencies and bias in first job placement: the case of professional Asian nationals in the United States.”

Read Now
Interorganizational Design for Collaborative Governance in Co-Owned Major Projects: An Engaged Scholarship Approach

Interorganizational Design for Collaborative Governance in Co-Owned Major Projects: An Engaged Scholarship Approach

Large projects co-owned by several organizations with separate, perhaps competing, interests and values are characterized by complexity and are not served well […]

Read Now
0 0 votes
Article Rating
Subscribe
Notify of
guest

This site uses Akismet to reduce spam. Learn how your comment data is processed.

0 Comments
Inline Feedbacks
View all comments