In terms of sales, what are the three most important things to know about psychology? #Q&A

“The apparent paradox to be faced is that the economic theory of the firm and the theory of administration attempt to deal with human behavior in situations in which that behavior is at least “intendedly” rational,; while, at the same time, it can be shown that if we assume the globals kinds of rationality of the classical theory the problems of internal structure of the firm or other organization largely disappear. The paradox vanishes, and the outlines of theory begin to emerge when we substitute for “economic man” or “administrative man” a choosing organism of limited knowledge and ability. This organism’s simplifications of the real world for purposes of choice introduce discrepancies between the simplified model and the reality; and these discrepancies, in turn, serve to explain many of the phenomena of organizational behavior.” [emphasis mine]

“In organization theory it is usually referred to as subgoal identification. When the goals of an organization cannot be connected operationally with actions (when the production function can’t be formulated in concrete terms), then decisions will be judged against subordinate goals that can be so connected. There is no unique determination of these subordinate goals. Their formulation will depend on the knowledge, experience, and organizational environment of the decision maker. In the face of this ambiguity, the formulation can also be influenced in subtle, and not so subtle, ways by his self-interest and power drives… Given a particular environment of stimuli, and a particular background of previous knowledge, how will a person organize this complex mass of information into a problem formulation that will facilitate his solution efforts?” [emphasis mine]



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