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Management Concepts & Organisational Behaviour - Decision Making

Rationality in Decision-Making

   Posted On :  17.05.2018 10:44 pm

Rationality in decision making implies maximization of the values in a given situation by choosing the most suitable course of action.

Rationality in Decision-Making
 
 
Rationality in decision making implies maximization of the values in a given situation by choosing the most suitable course of action. Rationality refers to objectivity in the development of alternatives and the final selection of an alternative to achieve the desired goal. Though it is very much desirable, for a variety of reasons complete rationality is not always possible. That is the reason why people prefer to take satisfactory decisions instead of ideal or optimum decisions. In reality they confine themselves to a few important alternatives which have limited risks combined with favourable consequences. Following are the major reasons that stand in the way of rational decision-making process:
 
1. Because of time and cost constraints, all complex variables that have a bearing on decision cannot be examined fully. Hence, the decision-maker is forced to strike a balance between the ideal and real situations.

2. Since decisions are related to future, managers cannot foresee all the future consequences accurately.

3. Human factors like value systems, perceptions, prejudices, social factors, etc., may enter the decision making process. Managers, being human beings, are greatly influenced by their personal beliefs, attitudes and bias.

 

Tags : Management Concepts & Organisational Behaviour - Decision Making
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