MGMT605

041154

This course is a doctoral-level seminar on key issues and perspectives in behavioral strategy research and behavioral theories of organizations.

Broadly speaking, research in strategy focuses (primarily) on explaining the economic conduct and performance of firms. An illustrative list of the issues addressed in strategy research includes identifying the profit potential of industries, exploring relationships between firm scale, scope and performance, and understanding the managerial and organizational determinants of firm- and business-level outcomes. While strategy scholars draw upon theoretical perspectives from economics, sociology, organization theory, and psychology to supplement more traditional strategy approaches towards understanding firm performance and related issues, historically, economic perspectives have been preeminent.

In pure economic theory managers and all humans are typically assumed to act \"perfectly rational,\" which is to be self-serving and to make \"optimal\" decisions that maximize either profits or utility functions. This is a model. All theories and models make assumptions to simplify reality. Models based on behavioral theories of organizations make more \"realistic assumptions\" about managerial decision making within organizations. Specifically, behavioral theories as applied in Strategic Management assume that humans are boundedly rational, even in cases when aided by computers. Currently, many cognitive psychologists adopt a computational model of the brain. This means that human brains (like computers) have limited time, memory, and processing capabilities. Both economic and behavioral theories have important applications in the study of strategy topics. In this course, we will emphasize behavioral approaches in our study of managerial and firm decision-making in strategic management and related areas.

GRD - Regular Grades A, B, C, D, E

Graduate