Organizational Development: A Manual for Managers and ... - FPDL

Picture 4. Potential goals and trajectories to reach them
In any case, when an organism has chosen the path of action, it will come to a certain result with
certain probability and with certain risk. Any path of action will also require certain resources. Thus,
some parameters should be taken into account. These are:
• The value of a result, or benefit, in case of success – B,
• The probability of success by using this specific trajectory – α,
• The probability of a failure – β, β= 1- α,
• The penalty in case of failure – P,
• The expenditures associated with the chosen implementation path – E.
These parameters may be combined in a simple formula (rationality criterion) that allows the
organism to evaluate each trajectory of possible behaviour and take the one that gives more
chances to survive.
αxB - βxP
R = --------------
E
In other words, an organism should choose the path and method of action that allows the
maximum positive result with less risk and less cost. That is the simple idea of rationality. When
applying this rule as a strategy – the ratio between results and costs tend to be maximized,
meaning maximum efficiency in using resources and, consequently, maximum chances to survive.
Rationality in this sense has no absolute meaning. It is only applicable for the comparison of
available ways of action. The most rational trajectory may be very bad, but still the best when other
ways are even worse. Choosing this ‘bad’ trajectory may be a very rational decision.
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