game theory & organisational behaviours
Game Theory demonstrates how stable systems of cooperation can evolve, hence providing a helpful conceptual model to apply to cooperative and adversarial relationships within and between organisations. It suggests that trust is independent of individuals and individual organisations, but can exist providing certain 'rules' within the network are set in place.
Interactions and competition amongst kin can create complex societies with impressive technological systems, such as those of the social insects. Other animals, including primates, share resources with non-kin as well as kin. Hence they, as we do, have to manage the complexity of social as well as kin interactions within an ever-shifting psychological environment. Economists and psychologists, using tools from Game Theory, suggest certain mental models enable animals to share with non-kin. As individual behaviours aggregate, inadvertent benefit is generated for the common good.
This suggests that we can piggy-back existing mental models we already have in our heads. If this is so, there are the implications for the 'rules' for a psychological environment conducive to organisational success.
An example (see below): It is widely perceived that the Ford and Toyota supply chains have very different visions, thus very different relationships. In March 2005, WMG academics and business people from the automotive industry analysed the features of automotive supply chains in game theory terms. The win-win non-zero sum game features bore great similarities with the Toyota supply chain.
