Abstract
Success in business depends crucially on an organisation’s choice of structure, objectives, and procedures. As organisations are run by humans, and human decision making is heavily influenced by psychology, organisations are subject to the same errors and biases as individuals. Behavioural organisational strategy applies psychological insights to organisational decision making, with a goal to maximise efficiency. The emphasis is on how organisations actually behave, rather than how theory predicts them to behave. This chapter introduces the behavioural theory of the firm and then applies this to organisational decision making, focusing on interactions with three major stakeholders: employees, consumers, and competitors. Finally, we conclude with an analysis of biases organisations face in their decision making and suggest ways to overcome such biases. The chapter is written from the organisation’s point of view and addresses how an organisation can use behavioural insights to maximise their efficiency.
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Peryman, J. (2023). Behavioural Organisational Strategy. In: Blijlevens, J., Elkins, M., Neelim, A. (eds) Behavioural Business. Springer, Singapore. https://doi.org/10.1007/978-981-19-5546-4_7
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DOI: https://doi.org/10.1007/978-981-19-5546-4_7
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