Book Review: Decisions, Uncertainty, and the Brain-The Science of Neuroeconomics

The book Decisions, Uncertainty, and the Brain: The Science of Neuroeconomics by Paul Glimcher attempts to outline the new science of neuroeconomics. As a new science it is suffering from a lack of theory to build a comprehensive association that fits the truckloads of data that have been pulled from both psychology and economics. At the very core of the science rests the neurological functions of the brain and how they impact theory. 

The book provides strong details on stimulus-response based within reflexology. Furthermore, the work provides some historical discussion on the simple and complex behavior proposed by Rene Descartes and some of the philosophers that have led o the modern field of neuroeconomics. The book also discusses the concepts of survival of the fittest, reflexology, probability, game theory, brain games, economics and the resulting philosophical implications. The later part of the work is more devoted to the ill defined theory of neuroeconomics.

The premise of the book is that the body takes sensory information from its environment and engages in a number of predictable behaviors at the neurological level and unpredictable behaviors yet to be defined. However, each behavior is designed to encourage either the survival or the economic gain of the person. The way people think (cognition) and behavior (volition) is based upon what information they draw from the environment and how they interpret that behavior. 

The book provides its own definition of the science:

Several of the experiments I have described in previous chapters seem to validate this notion that economic models, with roots in both game theory and more classical economic approaches, will be useful tools for linking brain activity with behavior. As an example, many of the experiments from my own laboratory have focused on demonstrating that both the choice behavior of monkeys and the behavior of the individual parietal neurons are well described by economic tools. The goal of the neuroeconomic approach, however has to be much larger than an attempt to understand the activity of a few parietal neurons. The ultimate goal of any neuroeconomic approach must be to provide an overarching theory of how the computations that underlie behavior are organized and produced by the brain” (Glimber, 2004, pg. 322).

As of yet the science has not provided a strong enough rational cohesive theory. The book does not provide such a theoretical explanation but does move just a fraction closer than its predecessors. Between the lines one can intuitively understand how man finds a goal and then sets upon that goal using all of his senses to obtain information for probabilistic economic measuring. It is the result of these measures that determine complex behavior. However, the book doesn’t specifically state this concept and it may be some time until an appropriate definition has been generated from the body of researchers. 

The book is written at a graduate level and moves through a number of different explanations and theories. It starts at the root theories and moves through more modern experiments that help define those concepts. It is a strong book for those who want to understand decision making and reasoning using a neurological lens. However, if one were seeking concise information on neuroscience, and its application in today’s world, they may be disappointed. 

Author: Paul W. Glimcher is Associate Professor of Neural Science and Psychology at the Center for Neural Science, New York University. More Information From the Publisher.

Glimcher, P. (2004). Decisions, Uncertainty and the Brain: The Science of Neuroeconomics. MA, Cambridge: MIT Press. ISBN: 978-0-262-07244-1

Price: $27 (Paperback)

Pages: 345

Blog Rating 4.2/5

Ethics and Moral Courage in Leadership Positions

Organizations seek to develop stronger levels of ethical business practices in order to limit negative employee behaviors that can damage public image, lessen investor confidence, and improve upon contractual relationships with stakeholders. The first step in developing an ethical organization is to hire an ethical leader. Through proper leadership modeling in moral courage and ethical behaviors employees develop standards that apply to their own behaviors. 

Developing ethical organizations, and meeting the needs of people, requires strength of character (Hunter, 2003). It is difficult for leaders to deal with the multiple issues that often face them from competing interests. When leaders use an ethical value system they have an anchored value point that allows them to judge the validity of these competing interests. 

Strong leaders should have an impetus to act with moral purpose.  Such conation requires moral courage, moral efficacy and psychological ownership over one’s behavior (Hannah, Avolio, & May, 2011). Positive behaviors require an ownership over one’s life and responsibilities toward others. Such concepts need to be embedded in the way leaders view themselves and their purpose in leading.

Moral courage is “the ability to use inner principles to do what is good for others, regardless of threat to self, as a matter of practice” (Sekerka and Bagozzi, 2007, pp. 135).  It is a willingness to do what is in the best interest of others and the group even if one were to lose something of value. It can be further understood as, “a commitment to moral principles, an awareness of the danger involved in supporting those principles, and a willing endurance of that danger” (Kidder, 2005, pp. 7). 

Ethics and moral courage are associated but not exactly the same concept. Ethics is a minimal standard of behavior that avoids engaging in immoral actions (Treviño et al., 2006). It is more defined by compliance with the law, telling basic truths, and conducting business within standard societal constraints. It is a much lower level of investment in one’s decisions than moral courage. 

Ethical behavior also has a pro-social component. Moral courage is associated with the desire to use inner standards that encourage actions that help others (Sekerka & Bagozzi, 2007). It is this wider understanding of the needs of the group that creates a higher standards of existence. Through this moral courage one acts with effort to help others live happy and free lives based upon underlining principles of inherent value. 

Leadership has a huge impact on the moral and ethical actions of their organizations. Leaders impose significant influence on followers’ thoughts and behaviors related to ethical and moral expectations (Lester et. Al., 2010). It is through watching leaders that employees come to understand appropriate actions. 

Ethical and moral leadership is not easy when competing interests are pushing for certain results. However, such leadership can improve upon the overall financial and public image of the organization overtime. Furthermore, it creates workplace expectations and guiding behaviors that impact the  habits employees use to solve their own issues. Such ethical approaches require the focus on others beyond their own needs and the courage to follow through on guiding principles to make it happen despite the competing interests.

Hannah, S. T., Avolio, B. J., & May, D. R. 2011. Moral maturation and moral conation: A

capacity approach to explaining moral thought and action. Academy of Management

Review, 36.

Hunter, J. D. 2003. The death of character. New York: Basic Books.

Lester, P., Vogelgesang, G., Hannah, S., & Kimmey, T. (2010). Developing courage in followers: Theoretical and applied perspectives. In C. Pury & S. Lopez (Eds.), The psychology of courage: Modern research on an ancient virtue: 210-45. Washington, DC: American Psychological Association.

Sekerka, L. E., & Bagozzi, R. P. 2007. Moral courage in the workplace: Moving to and

from the desire and decision to act. Business Ethics: A European Review, 16,

pp. 132.

Treviño, L. K., Weaver, G. R., & Reynolds, S. J. 2006. Behavioral ethics in organizations:

A review. Journal of Management, 32, pp. 951-90.

The Painting An Arab Caravan outside a Fortified Town, Egypt by Jean-Leon Gerome

An Arab Caravan Outside a Fortified Town-1864

The painting An Arab Caravan outside a Fortified Town, Egypt in 1864 by Jean-Leon brings to the forefront a time just before the advent of the modern state in Africa. It is amazing to see life as it was only 150 years ago from the perspective of an Egyptian caravan and local inhabitants. Such caravans have a historical place in the cultural identifications of the Arab and African peoples. 

The French artist Jean-Leon Gerome (1824-1904) engaged in a number of great works that were seen as Academicism. His works touched on Orientalism, Greek Mythology, portraits, and sculptures. He was an academic who not only painted for a living but also taught other students to a refined degree. He was one of three professors appointed to Ecole des Beaux-Arts. The skill and ability by which he fostered also made its way into a number of studies where people of painting, writing, and other art backgrounds gathered for lively conversation and socialization.

Born in Vesoul, Haute-Saône he moved to Paris to study under Paul Delaroche. From that time he traveled to a great many locations and focused on natural orientated works. He spent time in Turkey, the Middle East, Egypt, Rome, Italy, and many other locations. He even earned a commission under Napoleon III to paint the canvas work Age of Augustus. Skill orientation he had wider levels of experience and abilities than many of his contemporaries. His marriage to Marie Goupil, a daughter of an international arts dealer, furthered his career, wealth and fame.

The Arab caravan has a unique place in the history of commerce and trade. People brought their products from city to city in an effort to barter and trade. Many of these caravans included armed tribesman as the road could be extremely dangerous. A typically caravan may have 100 men up to a 1000 members of which the majority perish under a dangerous journey full of calamity. Such caravans carried everything including spices, silk, ivory, crops and slaves. 

The great Arabic states and culture were built off of these trade routes. Those cities and rulers that could dominate the trade routes consolidated their power from such commerce. As centers of commerce, such cities built walls for protection from outside invading forces. Even during Ottoman oversight such cities became what is known as the city-state. These city-states often had their own ethnic and cultural identity that separated them from other states in the area. 

The peak of trade started in the 8^th century and began to slow in the 16th century. Yet the method continued into modern times. With the French invasion of Sahel around 1890 water routes and growing wealthy European destinations became more important as a shipping method. Finally, the construction of railroads and independent states with national boarders in the 1960’s ended such caravans except in small pockets where limited trading still exists.

Developing Strong Socialization Processes in the Workplace

New employees are often confused about the expectations and requirements of their new positions and the organization where they work. These uncertainties result in feelings of stress, confusion, anxiety, awkwardness and uneasiness (Louis, 1980). Such feelings create insecure inaction that begins to clear up the longer the employee is employed. Yet managers can speed up the socialization process by developing stronger communication networks and transference of information through a proper socialization process.

One of the first things new employees look for to clear up this confusion is a point of reference. This typically is the person they are first introduced. Such points of reference are based upon interpersonal communication and the information they can secure through the work network. This point of reference is fostered from another employee, organizational information, or their managers (Barge & Schlueter, 2004).

It is important for managers to understand precisely what points of reference employees are being offered or most likely to attach themselves. For example, if an employee receives one day of training and then left to their work group to understand their environment they will use available positive and negative information to make their conclusions. It is the constant communication between managers and employees that helps foster alternative points of reference that further more appropriate impressions and final conclusions.

The totality of positive and negative impressions can impact the success of the employee and cause low productivity and higher turnover rates into the future. During the initial organizational entry period both formal and informal messages combine to either reinforce engagement or encourage disengagement from the organization (Altman, Visel & Brown, 1981). Strong orientations and constant communication can develop higher levels of engagement that allow the integration of the self with the organizational expectations.

The very first months will create attitudes, behavior, and knowledge that determine employee level engagement with company expectations (Allen, 2006). After these first impressions are created it becomes extremely difficult to change the course of thinking without higher levels of intervention. Such impressions make their way throughout the employees’ method of thinking creating additional justifications why their assumptions are true. Competing information is often ignored due to high levels of selection attention that don’t fit with initial assumptions.

The initial signs of uncertainty most employees feel when entering the workplace is the ideal time to open up communication lines and socialize employees to positive workplace expectations. This is the time when information seeking behavior increases (Berger and Calabrese, 1975). In such a situation it is beneficial to offer the needed information in order to both reduce this information seeking behavior as well as limit the cost of initial lackluster performance throughout the socialization process. 

Managers who engage their employees through positive communication and expectation building have the capacity to create higher levels of performance with less wasted time and disciplinary distractions that impact the department long into the future. Proactive management should consider the benefits of spending additional time at the beginning of the socialization process to ensure that initial impressions are strong so that future information is filtered and categorized appropriately by the employee. A little extra effort in the beginning can create stronger group development in the future once a general culture has been developed.

Allen, D. (2006). Do organizational socialization tactics influence newcomer embeddedness

and turnover? Journal of Management, doi: 10.1177/0149206305280103.

Altman, I., Vinsel, A. & Brown, B. (1981). Dialectic conceptions in social psychology: An

application to social penetration and privacy regulation. In L. Berkowitz (Ed.), Advances

in experimental social psychology (Vol. 14, pp. 107-160). New York: Academic Press.

Barge, J. & Schlueter, D. (2004). Memorable messages and newcomer socialization.

Western Journal of Communication, 68(3), 233-256.

Berger, C. & Calabrese, R. (1975). Some explorations in initial interaction and beyond:

Toward a theory of interpersonal communication. Human Communication Research,

1(2), 99-112.

Louis, M. (1980). Surprise and sense making: What newcomers experience in entering

unfamiliar organizational settings. Administrative Science Quarterly, 25(2), 226-251.