Application of Game Theory in Middle-Management: A Military Historical Study of the Role of the Middle-Manager as a Correlated Equilibrium Factor in the Decision-Making Process

Quentin Commine,Jérémie Aboiron

doi:10.51137/ijarbm.2021.2.1.5

Abstract

The role of the manager, defined by innumerable scientific publications, is only rarely seen through the prism of game theory and its notions of equilibrium allowing decision-makers to optimize situations. The role of the middle-manager, mindful of the human factor and respectful toward his mission shall lead to a virtuous balance, can be defined in game theory as a correlated equilibrium in the sense of the game theorist Robert Aumann. Indeed, this kind of equilibrium goes further than the Nash equilibrium by introducing the notion of a common game and an intermediary embedded in the decision-making process and getting the strategy from his superiors to translate it to his subordinated staff. We use two military historical illustrations to illustrate this concept: the case of the Auftragstaktik refers to Sherman's "march to the sea" while the study of Lee's defeat at Gettysburg refers to the necessity of having capable subordinated staff to maximize an outcome. Throughout this study, we show and formalize the essential role of the middle-manager in the elaboration of effective decisions and processes.

Highlights

Within the execution of a production process, the manager poses as the basic decision-making nucleus from which the major orientations given by the higher positions are translated in the direction of the executing personnel
The studies established in this article refer to various and common concepts in game theory that can be parallel to the notion of correlated equilibrium, such as Nash equilibrium or theory of common knowledge
The notion of equilibrium in game theory will be introduced before adding the "Aumanian" dimension

Summary

Introduction

Within the execution of a production process, the manager poses as the basic decision-making nucleus from which the major orientations given by the higher positions are translated in the direction of the executing personnel. Application of Game Theory in Middle-Management: A Military Historical Study of the Role of the Middle-Manager as a Correlated Equilibrium Factor in the Decision-Making Process to it, find pleasure." This quote aptly illustrates the objective to be achieved by a manager, symbolized by these three qualities for his collaborators. This is a practical reflection of Mintzberg's (1984) ten principles of management, which can be classified into three broad categories: Interpersonal roles: in the case studied we will see that the notion of specific connection is linked to managerial practice.

Methods

Results

Discussion

Conclusion