History
Decentralization and centralization have been consistent themes throughout history pertaining to governmental authority and political theory. From the rise and fall of the Roman Empire, there have been periods of centralization and decentralization in societies worldwide. Almost any political movement, from the rise of city states in Roman times, to the later rise and downfall of feudal empires during the Middle Ages, to the rise of fascism in Germany prior to World War II, and to the late 20th century formation of the European Economic Union; the history of Europe has been one of cycles of centralization and decentralization.
MIT Professor Thomas W. Malone explains that "decentralization has three general benefits:
- encourages motivation and creativity
- allows many minds to work simultaneously on the same problem
- accommodates flexibility and individualization
Decentralized decision-making, Malone says, tends to create less rigidity and flatter hierarchies in organizations. When upper management delegates decision-making responsibilities, there also exist wider spans of control among managers, creating a more lateral flow of information. Thus, there will be more bottom up directional information flow, allowing for more innovation and efficiency closer to the means of production. This increased flow of information thereby allows for innovation in what is called as Total quality management.
Cognitive psychology is the scientific study of mental processes such as attention, language use, memory, perception, problem solving, creativity, and reasoning. Cognitive psychology originated in the 1960s in a break from behaviorism, which held from the 1920s to 1950s that unobservable mental processes were outside the realm of empirical science. This break came as researchers in linguistics and cybernetics, as well as applied psychology, used models of mental processing to explain human behavior. Work derived from cognitive psychology was integrated into other branches of psychology and various other modern disciplines like cognitive science, linguistics, and economics. The domain of cognitive psychology overlaps with that of cognitive science, which takes a more interdisciplinary approach and includes studies of non-human subjects and artificial intelligence.
A cognitive bias is a systematic pattern of deviation from norm or rationality in judgment. Individuals create their own "subjective reality" from their perception of the input. An individual's construction of reality, not the objective input, may dictate their behavior in the world. Thus, cognitive biases may sometimes lead to perceptual distortion, inaccurate judgment, illogical interpretation, and irrationality.
Decentralization or decentralisation is the process by which the activities of an organization, particularly those regarding planning and decision-making, are distributed or delegated away from a central, authoritative location or group and given to smaller factions within it.
A heuristic or heuristic technique is any approach to problem solving that employs a pragmatic method that is not fully optimized, perfected, or rationalized, but is nevertheless "good enough" as an approximation or attribute substitution. Where finding an optimal solution is impossible or impractical, heuristic methods can be used to speed up the process of finding a satisfactory solution. Heuristics can be mental shortcuts that ease the cognitive load of making a decision.
Heuristic reasoning is often based on induction, or on analogy[.] [...] Induction is the process of discovering general laws [...] Induction tries to find regularity and coherence [...] Its most conspicuous instruments are generalization, specialization, analogy. [...] Heuristic discusses human behavior in the face of problems [...that have been] preserved in the wisdom of proverbs.
Bounded rationality is the idea that rationality is limited when individuals make decisions, and under these limitations, rational individuals will select a decision that is satisfactory rather than optimal.
Centralisation or centralization is the process by which the activities of an entity or organization, particularly those regarding planning, decision-making and control of strategies and policies, become concentrated within a particular group, sector, department or region within that entity or organization. This creates a power structure where the said group, known as head or core group, occupies the highest level of hierarchy and has significantly more authority, prestige and influence over the other groups, who are considered its subordinates.
Decision theory or the theory of rational choice is a branch of probability, economics, and analytic philosophy that uses the tools of expected utility and probability to model how individuals shoud behave rationally under uncertainty. It differs from the cognitive and behavioral sciences in that it is prescriptive and concerned with identifying optimal decisions for a rational agent, rather than describing how people really do make decisions. Despite this, the field is extremely important to the study of real human behavior by social scientists, as it lays the foundations for the rational agent models used to mathematically model and analyze individuals in fields such as sociology, economics, criminology, cognitive science, and political science.
An organizational structure defines how activities such as task allocation, coordination, and supervision are directed toward the achievement of organizational aims.
Herd mentality is the tendency for people’s behavior or beliefs to conform to those of the group they belong to. The concept of herd mentality has been studied and analyzed from different perspectives, including biology, psychology and sociology. This psychological phenomenon can have profound impacts on human behavior.
The Wisdom of Crowds: Why the Many Are Smarter Than the Few and How Collective Wisdom Shapes Business, Economies, Societies and Nations, published in 2004, is a book written by James Surowiecki about the aggregation of information in groups, resulting in decisions that, he argues, are often better than could have been made by any single member of the group. The book presents numerous case studies and anecdotes to illustrate its argument, and touches on several fields, primarily economics and psychology.
Lateral communication is "the exchange, imparting or sharing of information, ideas or feelings between people within a community, peer groups, departments or units of an organization who are at or about the same hierarchical level as each other for the purpose of coordinating activities, efforts or fulfilling a common purpose or goal
The following outline is provided as an overview of and topical guide to thought (thinking):
We Are Smarter Than Me is a collaborative-writing project using wiki software, whose initial goal was producing a book about decision making processes that use large numbers of people. The first book was published as a printed book, late in 2007, by the publishing conglomerate Pearson Education. Along with Pearson, the project's four core sponsors include research institutes of the MIT Sloan School of Management and the Wharton School of the University of Pennsylvania.
Collective wisdom, also called group wisdom and co-intelligence, is shared knowledge arrived at by individuals and groups with collaboration.
The global brain is a neuroscience-inspired and futurological vision of the planetary information and communications technology network that interconnects all humans and their technological artifacts. As this network stores ever more information, takes over ever more functions of coordination and communication from traditional organizations, and becomes increasingly intelligent, it increasingly plays the role of a brain for the planet Earth. In the philosophy of mind, global brain finds an analog in Averroes's theory of the unity of the intellect.
Analytical skill is the ability to deconstruct information into smaller categories in order to draw conclusions. Analytical skill consists of categories that include logical reasoning, critical thinking, communication, research, data analysis and creativity. Analytical skill is taught in contemporary education with the intention of fostering the appropriate practises for future professions. The professions that adopt analytical skill include educational institutions, public institutions, community organisations and industry.
Knowledge retrieval seeks to return information in a structured form, consistent with human cognitive processes as opposed to simple lists of data items. It draws on a range of fields including epistemology, cognitive psychology, cognitive neuroscience, logic and inference, machine learning and knowledge discovery, linguistics, and information technology.
The psychology of reasoning is the study of how people reason, often broadly defined as the process of drawing conclusions to inform how people solve problems and make decisions. It overlaps with psychology, philosophy, linguistics, cognitive science, artificial intelligence, logic, and probability theory.
Collective intelligence (CI) is shared or group intelligence (GI) that emerges from the collaboration, collective efforts, and competition of many individuals and appears in consensus decision making. The term appears in sociobiology, political science and in context of mass peer review and crowdsourcing applications. It may involve consensus, social capital and formalisms such as voting systems, social media and other means of quantifying mass activity. Collective IQ is a measure of collective intelligence, although it is often used interchangeably with the term collective intelligence. Collective intelligence has also been attributed to bacteria and animals.
Herd behavior is the behavior of individuals in a group acting collectively without centralized direction. Herd behavior occurs in animals in herds, packs, bird flocks, fish schools and so on, as well as in humans. Voting, demonstrations, riots, general strikes, sporting events, religious gatherings, everyday decision-making, judgement and opinion-forming, are all forms of human-based herd behavior.
