Smart Heuristics for Individuals, Teams, and Organizations

Heuristics are fast, frugal, and accurate strategies that enable rather than limit decision making under uncertainty. Uncertainty, as opposed to calculable risk, is characteristic of most organizational contexts. We review existing research and offer a descriptive and prescriptive theoretical framework to integrate the current patchwork of heuristics scattered across various areas of organizational studies. Research on the adaptive toolbox is descriptive, identifying the repertoire of heuristics on which individuals, teams, and organizations rely. Research on ecological rationality is prescriptive, specifying the conditions under which a given heuristic performs well, that is, when it is smart. Our review finds a relatively small but rapidly developing field. We identify promising future research directions, including research on how culture shapes the use of heuristics and how heuristics shape organizational culture. We also outline an educational program for managers and leaders that follows the general approach of Don't avoid heuristics-learn how to use them.

Automated summary

Heuristics are fast, frugal, and accurate strategies for decision making under uncertainty in organizational contexts. Descriptive research identifies the repertoire of heuristics, while prescriptive research specifies the conditions under which a given heuristic performs well. The field of heuristics in organizational studies is relatively small but rapidly developing, with promising future research directions including the impact of culture on heuristic use and the role of heuristics in shaping organizational culture.