Learning

Any relatively permanent change in behavior that occurs as a result of experience.

We shall never see someone "learning". We can see changes taking place but not the learning itself. The concept is theoretical and, hence not directly observable.

Theories of Learning

1. Classical conditioning (Pavlov)
2. Operant conditioning (reward+punishment)
3. Social learning: People can learn through observation and direct experience.

Shaping Behavior

Systematically reinforcing each successive step that moves an individual closer to the desired response.

Self Management

Learning techniques that allow individuals to manage their own behavior so that less external management control is necessary.

Decision Making (DM)

1. Rational DM:

Full rationality. A DM model that describes how individiuals should behave in order to maximize some outcome. (DASER)

How are decisions actually made in organizations?

The satisficing decision maker settles for the first solution that is "good enough".

2. Bounded rationality:

constructing simplified models, since the capacity of the human mind for formulating and solving complex problems is far too small.

3. Intuitive DM: (gained respect since early 80s)

An unconscious process created out of distilled experience. Intuition is not independent of rational analysis. The two complement each other.

When is intuitive DM mostly used?

1. When a high level of uncertainty exists,
2. When there is little precedent to draw on,
3. When variables are less scientifically predictable,
4. When "facts" are limited,
5. When facts don¹t clearly point the way to go,
6. When analytical data are of little use,
7. When tehere are several plausible alternative solutions to choose from, with good arguments for each,
8. When time is limited and there is pressure to come up with the right decision.

Since rational analysis is considered more socially desirable, intuitive ability is often disguised or hidden especially in N.America, UK and other cultures where rational analysis is the approved way of making decisions.

Heuristics

In order to avoid information overload, decision makers rely on heuristics or judgemental shortcuts in DM.

Categories creating biases:

1. Availability Heuristics: to base decisions on readily available information.

2. Representative Heuristics: assessing the likelihood of an occurrence by drawing analogies and seeing identical situations where
     they don't exist.

3. Escalation of Commitment: An increased commitment to a previous decision in spite of negative information.

Learning Organization
(since late 90s)

An organization that has developed the continous capacity to adopt and change toward risk taking, opennes and growth.

1. There exists a shared vision which everyone agrees on;
2. People discard their old ways of thinking and the standard routines they use for solving problems or doing their jobs;
3. Members think of all organizational processes, activities, functions and interactions with the environment as part of a system of
     interrelationships;
4. People openly communicate with each other (vertically+horizontally) without fear of criticism or punisment;
5. People sublimate their personal self-interest and fragmented departmental interests to work together to achieve the organizations
     shared vision.

How do you change an organization to make it into a continual learner?

1. Establish a strategy (to change, innovate and for continous improvement);
2. Redesign the organizations' structure (by flattening the structure, eliminating or combining departments and increasing the use
     of cross-functional teams);
3. Reshape the organizations' culture (promoting risk taking, openness and growth).

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