THE TRANSFORMATION OF ECONOMIC AGENTS’ BEHAVIORAL FUNCTIONS AS A BASIS FOR RETHINKING FIRM MANAGEMENT
Maxmadaminova Zilolaxon Alisherovna
Bachelor’s Student Tashkent State University of Economics
Djurayeva Guzal Shavkatovna
Scientific suprervisor Senior Lecturer, Department of Innovation Management Doctor of Philosophy (PhD) in Economics Tashkent State University of Economics
Keywords: theory of the firm, behavioral theory of the firm, economic agents, behavioral economics, managerial decision-making, bounded rationality, organizational behavior, firm management, economic rationality, decision-making process, organizational goals
Abstract
This article examines the role of behavioral theory in understanding how firms operate and make decisions in a changing economic environment. It explores the concept of the firm, its main objectives, and its key areas of activity, including production, commercial, financial, and consulting operations. Particular attention is paid to the behavioral approach developed by Herbert Simon, Richard Cyert, and James March, which challenges the traditional assumption that economic agents always act rationally and seek to maximize their benefits. The article highlights the influence of limited information, human capabilities, personal interests, social norms, and organizational relationships on managerial decision-making. It also considers how the different goals of employees, managers, owners, and shareholders shape a firm's strategies and daily operations. The study emphasizes that understanding actual human behavior is essential for developing more realistic economic models and improving management practices. It concludes that incorporating behavioral factors into the theory of the firm provides a more comprehensive understanding of organizational decision-making and helps explain how firms adapt to changing market conditions.
