Cognitive barriers during monitoring-based commissioning of buildings

Monitoring-based commissioning (MBCx) is a continuous building energy management process used to optimize energy performance in buildings. Although monitoring-based commissioning (MBCx) can reduce energy waste by up to 20%, many buildings still underperform due to issues such as unnoticed system faults and inefficient operational procedures. While there are technical barriers that impede the MBCx process, such as data quality, the focuses of this paper are the non-technical, behavioral and organizational, barriers that contribute to issues initiating and implementing MBCx. In particular, this paper discusses cognitive biases, which can lead to suboptimal outcomes in energy efficiency decisions, resulting in missed opportunities for energy savings. This paper provides evidence of cognitive biases in decisions during the MBCx process using qualitative data from over 40 public and private sector organizations. The results describe barriers resulting from cognitive biases, listed in descending order of occurrence, including: risk aversion, social norms, choice overload, status quo bias, information overload, professional bias, and temporal discounting. Building practitioners can use these results to better understand potential cognitive biases, in turn allowing them to establish best practices and make more informed decisions. Researchers can use these results to empirically test specific decision interventions and facilitate more energy efficient decisions

Organizationally Sensible vs. Legal-Centric Approaches to Employment Decisions With Legal Implications

This article is intended to: 1) alert human resource (HR) professionals to the risk that they, and the managers they serve, are unnecessarily contributing to the impact of legal considerations on the management of employees as a result of “legal-centric decision making”; and 2) provide information and guidance that will assist HR professionals in promoting better informed, more organizationally sensible responses to employment issues that have potential legal implications. The “legal-centric decision making” construct is introduced and illustrated, a model of the primary factors contributing to legal-centric decision making is presented, and keys to avoiding legal-centric decision making are identified and discussed

Legally Defensible vs. Organizationally Sensible: Avoiding Legal-Centric Employment Decision Making

Managers and human resource professionals express grave concern about the increasing influence that the law and lawyers are having on their ability to manage employees effectively. Blame is typically placed on growing governmental regulation of the employment relationship, a “litigation mentality” among workers, and overly aggressive lawyers pursuing selfish interests. Much less common, however, is attention focused on the role that organizational decision makers play in contributing to the perceived problem. This article is intended to help address that limitation by alerting managers to the likelihood that they are unnecessarily contributing to the impact of legal considerations on the management of employees as a result of “legal-centric decision making”, and by providing information and guidance that will assist them in formulating better informed, more strategic responses to employment issues that have potential legal implications. Keys to implementing the strategic approach are identified and discussed, and the approach is illustrated by applying it to a decision that American employers continue to confront: how to respond to the eroding employment at-will doctrine. The analysis strongly suggests that the extent of the law’s negative influence on the management of employees can be moderated significantly if organizational decision makers recognize their contribution to “the problem”, focus on what is organizationally sensible rather than what is perceived to be legally defensible, and adopt a more strategic (less legal-centric) approach to the challenges posed by employment decisions that raise legal concerns

When decision support systems fail: insights for strategic information systems from Formula

Decision support systems (DSS) are sophisticated tools that increasingly take advantage of big data and are used to design and implement individual - and organization - level strategic decisions . Yet, when organizations excessively rely on their potential the outcome may be decision - making failure, particularly when such tools are applied under high pressure and turbulent conditions. Partial understanding and unidimensional interpretation can prevent learning from failure. Building on a practice perspective, we study an iconic case of strategic failure in Formula 1 racing. Our approach, which integrates the decision maker as well as the organizational and material context , identifies three interrelated sources of strategic failure that are worth investigation for decision - makers using DSS and big data: (1) t he situated nature and affordances of decision - making ; (2) t he distributed nature of cognition in decision - making; and (3) the performativity of the DSS. We outline specific research questions and their implications for firm performance and competitive advantage. Finally, we advance an agenda that can help close timely gaps in strategic IS research

What is Strategic Competence and Does it Matter? Exposition of the Concept and a Research Agenda

Drawing on a range of theoretical and empirical insights from strategic management and the cognitive and organizational sciences, we argue that strategic competence constitutes the ability of organizations and the individuals who operate within them to work within their cognitive limitations in such a way that they are able to maintain an appropriate level of responsiveness to the contingencies confronting them. Using the language of the resource based view of the firm, we argue that this meta-level competence represents a confluence of individual and organizational characteristics, suitably configured to enable the detection of those weak signals indicative of the need for change and to act accordingly, thereby minimising the dangers of cognitive bias and cognitive inertia. In an era of unprecedented informational burdens and instability, we argue that this competence is central to the longer-term survival and well being of the organization. We conclude with a consideration of the major scientific challenges that lie ahead, if the ideas contained within this paper are to be validated

Overcoming Resistance to Diversity in the Executive Suite: Grease, Grit, and the Corporate Tournament

Once we open the corporate governance/human resources nexus to deeper inquiry, mutual scholarly interest in diversity and discrimination follows naturally. Firms have complex motives to take nondiscrimination and the promotion of diversity seriously. First, at least certain forms of discrimination are both unlawful and socially illegitimate and hence present threats of potential liability and injury to reputation. Second, human resources demands are such that attracting and motivating a diverse workforce is a competitive imperative. At the same time, however, offsetting economic forces may exist that favor subtle forms of discrimination and hostility to diversity, even if intentional and overt racial or gender-based bias is mostly outdated. In sum, the process of promoting diversity and ending discrimination, whether to avoid liability or simply to remain competitive, is a difficult challenge faced by many firms. It demands a close look at the efficacy of the internal decisionmaking and authority structures of the firm

Organizational energy: A behavioral analysis of human and organizational factors in manufacturing

This paper seeks to explore the behavior and embodied energy involved in the decision-making of information technology/information systems (IT/IS) investments using a case within a small- to medium-sized manufacturing firm. By analyzing decision making within a given case context, this paper describes the nature of the investment through the lens of behavioral economics, causality, input-output (IO) equilibrium, and the general notion of depletion of executive energy function. To explore the interplay between these elements, the authors structure the case context via a morphological field in order to construct a fuzzy cognitive map of decision-making relationships relating to the multidimensional and nonquantifiable problems of IT/IS investment evaluation. Noting the significance of inputs and outputs relating to the investment decision within the case, the authors assess these cognitive interrelationships through the lens of the Leontief IO energy equilibrium model. Subsequently, the authors suggest, through an embodied energy audit, that all such management decisions are susceptible to decision fatigue (so-called 'ego depletion'). The findings of this paper highlight pertinent cognitive and IO paths of the investment decision-making process that will allow others making similar types of investments to learn from and draw parallels from such processes

Problem formulation and organizational decision-making : biases and assumptions underlying alternative models of strategic problem formulation

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Bounded Rationality in the Economics of Organization Present Use and (Some) Future Possibilities

The way in which bounded rationality enters contemporary organizational economics theorizing is examined. It is argued that, as it is being used, bounded rationality is neither necessary nor sufficient for producing the results of organizational economics. It is at best a rhetorical device, used for the purpose of loosely explaining incomplete contracts. However, it is possible to incorporate much richer notions of bounded rationality, founded on research in cognitive psychology, and to illuminate the study of economic organization by means of such notions. A number of examples are provided.Varieties of bounded rationality, incomplete contracts, economic organization, cognitive psychology