The Quality of Managerial Decisions: Institutional Barriers and Filters |
Author: Robert M. Nizhegorodtsev, Dr. Sc. (Ec.), Head of Laboratory of Economic Dynamics and Control for Innovations, Institute for Control Studies of the Russian Academy of Sciences Abstract: The paper is devoted to some rampant mistakes in decisionmaking process, and to institutional filters impeding proper decisionmaking. The main filters of such kind are: 1) overevaluation of adoption costs that leads to path dependency; 2) reluctance of qualified personnel to learn by alien experience; 3) irrational copying of some alien experience (the socalled false benchmarking); 4) underestimation of hystheresis in controlled dynamic systems; 5) clustering a governed team into “promoted” ones and “casted away”; 6) horror of getting back. The identified euristical principles make it easy both to construct the decision space and optimize the managerial choice framed by current circumstances. Timely discussion of those euristics permits to increase the quality of education of specialists majoring in governance and management. Keywords: Decision-making, institutional filters, path dependency, false benchmarking, models for learning, dynamic systems |