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Showing posts with the label organization structure

Decision Making as Output and Bounded Rationality

  The classical economics theories proceed on the assumption of rational agents. Rationality implies the economic agents undertake actions or exercise choices based on the cost-benefit analysis they undertake. The assumption further posits that there exists no information asymmetry and thus the agent is aware of all the costs and benefits associated with the choice he or she has exercised. The behavioral school contested the decision stating the decisions in practice are often irrational. Implied there is a continuous departure from rationality. Rationality in the views of the behavioral school is more an exception to the norm rather a rule. The past posts have discussed the limitations of this view by the behavioral school. Economics has often posited rationality in the context in which the choices are exercised rather than theoretical abstract view of rational action. Rational action in theory seems to be grounded in zero restraint situation yet in practice, there are numerous restra

Central Encroachment into Cooperatives

  The Modi government is set for a Cabinet reshuffle. In the midst of the reshuffle, there come the news of creation of new Ministry. The ministry is of the Department of Co-operation. The intended objectives seems to be facilitating the growth of cooperative societies across states and build by multi state cooperative societies. The cooperative movement while having roots across states is confined in terms of its structure to a single state and cannot go beyond the boundaries of the state or perhaps the district. Amul for instance would be confined to Anand district and not go beyond the same. The same thing would perhaps hold good for Karnataka Milk Federation. This is true of many cooperative societies across the country. The ability to leverage the scale and scope is constrained thanks the legislative framework in place. If there needs to be changed to allow the successful cooperatives to flourish, there needs to be changes in the legislative and governance framework.   There m