An ambitious new work by a well-respected economic sociologist,
Rational Choice Theory and Organizational Theory: A Critique,
offers a new perspective on the strategy and actions of
organizations. In merging economic, psychological, and sociological
literature as they focus on organizations, author Mary Zey contends
that a historical political economy contingency theory provides the
key to understanding how organizations function and the
relationships between individuals and organizations in which they
work. She brings to our attention that economic and other types of
organizations differ in their behavior from rational individuals
and rational markets. Zey integrates macro- and micro-levels of
analysis while drawing together internal and external contingencies
to explain how decisions are taken. Zey interprets, synthesizes,
and critiques the important work of renowned scholars of rational
choice, finance, and organizations including James March, Michael
Jensen, and Oliver Williamson to analyze corporate decision making,
differentiating it from individual decision making. The analysis is
distinguished by inclusive thinking and new approaches to issues
that have long confronted those who think about, theorize about,
work with, and manage organizations. Mary ZeyAEs work expands the
understanding of decision making by presenting evidence that points
to the wide range and complexity of human decision making. The
rational choice theorists, led most notably by Oliver Williamson
and James Coleman, adhere to the tenets of transaction cost
analysis and agency theory when looking at micro- and macro-level
decisions made by people and organizations. Other models of
decision making (habit, emotion, moral and ethical values, among
others) have been labeled as deviations from formal rationality.
Mary Zey calls these "deviations" alternative motives behind
decision making, and her books are an attempt to present the
leading work from this point of view. Rational Choice Theory and
Organizational Theory: A Critique is the first single-authored
volume to analyze and present an alternative model to decision
making theory and serves as a companion to Decision Making (Sage,
1992). Rational Choice Theory and Organizational Theory will be
useful to professors and students of decision making theory,
organizational theory, sociology of organizations, and social
theory.
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