Fallibility in Human Organizations and Political Systems

This paper presents a perspective on some organizational consequences of human fallibility. It may be easier to get a flavor of the relevant issues by examining the role of fallibility in specific settings, rather than through abstract arguments. So, in the next three sections, I consider several different settings: the question of diversification versus concentration of political authority, the managerial succession process in organizations, and the choice of ideas and projects (including innovation-oriented projects) in organizations. In the last section, I highlight some aspects of the approach underlying the analyses of human fallibility, in particular: the premises concerning an individual decisionmaker, the potential association between the motivation of an organization's employees and their fallibility, and the nature and the aims of the analysis of organizations.

[1]  M. Rutherford Learning and Decision-Making in Economics and Psychology: A Methodological Perspective , 1988 .

[2]  Joel Mokyr,et al.  The Lever of Riches: Technological Creativity and Economic Progress , 1991 .

[3]  Wong Hoy Kee,et al.  The Reform and Abolition of the Traditional Chinese Examination System , 1961 .

[4]  V. Lenin,et al.  The State and Revolution , 2020 .

[5]  David M. Kreps,et al.  A Course in Microeconomic Theory , 2020 .

[6]  Joseph E. Stiglitz,et al.  PRINCIPAL AND AGENT , 1989 .

[7]  J. Stiglitz,et al.  Committees, hierarchies and polyarchies , 1987 .

[8]  A. Tversky,et al.  Judgment under Uncertainty: Heuristics and Biases , 1974, Science.

[9]  Bengt Holmstrom,et al.  The Theory of Contracts , 1986 .

[10]  Donald T. Campbell,et al.  Systematic Error on the Part of Human Links in Communication Systems , 1958, Inf. Control..

[11]  Margaret Meyer,et al.  Learning from Coarse Information: Biased Contests and Career Profiles , 1991 .

[12]  G. A. Miller,et al.  Book Review Nisbett, R. , & Ross, L.Human inference: Strategies and shortcomings of social judgment.Englewood Cliffs, N.J.: Prentice-Hall, 1980. , 1982 .

[13]  H. Simon,et al.  Rational Decision Making in Business Organizations , 1978 .

[14]  R. Field Crucial Decisions: Leadership in Policymaking and Crisis Management , 1989 .

[15]  J. March Bounded rationality, ambiguity, and the engineering of choice , 1978 .

[16]  Sherwin Rosen,et al.  Authority, Control, and the Distribution of Earnings , 1982 .

[17]  J. March Ambiguity and the Engineering of Choice , 1979 .

[18]  Helmut Kuhn,et al.  The Republic of Plato , 1942 .

[19]  Frederic M. Scherer,et al.  Innovation and growth , 1984 .

[20]  Jin-Ho Jeong,et al.  Owning Up to Uncertainty in Macroeconomics , 1988 .

[21]  Joseph E. Stiglitz,et al.  The Quality of Managers in Centralized versus Decentralized Organizations , 1990 .

[22]  J. Stiglitz Incentives, information, and organizational design , 1989 .

[23]  J. Stiglitz Incentives, Risk, and Information: Notes Towards a Theory of Hierarchy , 1975 .

[24]  J. Ordover,et al.  Market Structure and Optimal Management Organizations , 1987 .

[25]  S. Rose-Ackerman Reforming Public Bureaucracy through Economic Incentives , 1986 .

[26]  Jean Tirole,et al.  The theory of the firm , 1989 .

[27]  W. Dugger The Economic Institutions of Capitalism , 1987 .

[28]  Christopher Winship,et al.  Information Processing and Jury Decisionmaking , 1984 .

[29]  Bengt Holmstrom,et al.  AGENCY COSTS AND INNOVATION , 1989 .

[30]  F. Hayek New studies in philosophy, politics, economics, and the history of ideas , 1978 .

[31]  J. Coleman Foundations of Social Theory , 1990 .

[32]  J. Stiglitz,et al.  The Architecture of Economic Systems: Hierarchies and Polyarchies , 1984 .

[33]  Michael A. Harrison,et al.  Introduction to switching and automata theory , 1965 .

[34]  F. Fukuyama The End of History? , 1989, The New Social Theory Reader.

[35]  L. Ross,et al.  Human Inference: Strategies and Shortcomings of Social Judgment. , 1981 .

[36]  Raaj Kumar Sah,et al.  An Explicit Closed-Form Formula for Profit-Maximizing k-Out-Of-n Systems Subject to Two Kinds of Failures , 1990 .

[37]  Kevin J. Murphy,et al.  Compensation and Incentives: Practice vs. Theory , 1988 .

[38]  F. Black,et al.  The Pricing of Options and Corporate Liabilities , 1973, Journal of Political Economy.

[39]  Winston T. H. Koh Human Fallibility and Sequential Decision-Making: Hierarchy Versus Polyarchy , 1992 .