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A BEHAVIORAL THEORY OF THE FIRM

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This is the classic reading on organizational behavior. There has been a lot said since this, but this work introduced the idea that organizations don?t follow a traditional ?rational? logic of action but rather have a different form of logic that is related to the way that they are structured. My undergrad students have difficulty grasping the concepts here, but I suspect that you (who have experience working in and with large organizations) will find the concepts more familiar. In what ways is an organization?s decision-making different than an individual?s? Why is it different? Specifically, what are the tools that organizations have and how are they applied? What might this imply about the types of ?decisions? (or ?outputs?) that organizations make? Does this all seem to reflect your experience or is it unfamiliar?

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