There's a bit outlined throughout the Mental and Civilization future pages, but maybe not enough, and it is not organized well.
I'd been playing with this a bit in the dwarf game -- I guess it's like what you describe. The dwarves currently default to doing whatever job they can to help out (or mill around otherwise) and when able they acquire wealth based on the kinds of materials they personally like. On the other hand, if they need to eat or drink or sleep, they'll cancel their current activity to take care of this (unless they are involved in a high risk activity like fighting or leading a dangerous pet). If they are presented with an opponent, they will fight or flee based on an assessment of the risk, and when the danger is over, they'll go back to their default activities.
I imagine something similar will work in Armok. However, they have a bit more juggling to do, since they'll have a list of allegiances to various "entities". So, for instance, a vassal to a lord might have that allegiance but also be a member of a cult and be loyal to their own family. Each decision that comes down the line would be filtered against these allegiances (which could, say, be measure by a percentage and a few saved important events and status ratings), and if one of them is stretched to the breaking point by a conflict, the break would be made (mentally if not officially). So if the cult leader asked this person to sacrifice their child, the person would need to weigh the gain and harm to arise to each of their allied entities (based on their importance) and to themselves through this action and via repercussions from the entities. This would have to be done numerically on the computer, so I'll just have to restrict plot devices to those which I can comprehend in this way.
I suppose actions should be greatly influenced by the personal ambitions of the creature independent of allegiances -- for speed's sake, most creatures probably wouldn't have any or they wouldn't matter. On the smaller scale of day to day activities, Armok will probably work just as in the dwarf game described above. The dwarf game has some minor implementations of the larger, sweeping decisions, but not on this scale, since the dwarf game is more of a Tolkie-good-evil setting. Good for practice before the real thing, anyway.
Once I get done with the item release, I'm going to go back to the dwarves until they are done. This should inform the decision making that people will have to do to make the Quaint Thorpe Armok release functional. Assuming I still have a job...