Cognitive behavioral models are models of the mental processes behind behavior, including learning, problem solving and reasoning. These models allow us to understand the individual capacity of each person, how their values and beliefs, their individuality and their spirituality define and influence their behavior. These types of models are widely used in the analysis of organizations due to two factors: the activators, called antecedents, and the consequences of behavior; both of these factors can be managed by organizations.
The ABC model of behavior, shown in Figure 9, provides a simple step-by-step approach to understanding the process of behavior, so it will be used to do just that from this point forward. In this model, each letter has a meaning:
- A: The letter “A” stands for Antecedents, which refer to something that precedes and stimulates behavior.
- B: The letter “B” stands for Behavior and refers to any act or action observed by others.(The Behavior part of this model will be discussed further in The Role of Emotions and Understanding Leadership in the Management within Organizations sections.)
- C: The letter “C” stands for Consequences, which arise directly from the behavior.
Tip from The (New) Asset Management Handbook Revised: A Guide to ISO55000
About The (New) Asset Management Handbook Revised: A Guide to ISO055000
Of course, there are times when market conditions and financial constraints require less investment that is optimal. Organizations practicing asset management are better prepared for such conditions because they have a clear picture of the outcomes of decisions and can prioritize investment, even when limited.
The asset management approaches expressed in the New Asset Management Handbook are designed to connect top management to the physical asset base using a concept called line of sight. Asset management frameworks require that value and acceptable risk be defined and understood at all levels of the organization. This provides the alignment in decision-making at all levels of the organization to deliver value from assets at an acceptable risk level.