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
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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