Examples Of Rationality In Decision Making

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Chapter one Introduction. As a human being every day we are deluged too many decisions in our life, start from personal decisions up to governmental decisions, many decision have made every day. Decision is the most important part of our life, personally for example, we made decision towards many things such as; politics party which we support, football clubs, universities which is applicable to you etc. Organizationally, the executive or the board of directors have diverse of alternatives of decision making to choose from the best alternative solution. Some alternative have high impact financially for the organization. If the organization takes an adventure of a new market without preparation, or the organization makes huge investments…show more content…
The process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. 2. Bounded rationality Bounded Rationality decision making is the idea that in decision-making, rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make a decision. Chapter two Rationality in Decision Making: When we are talking about the decision made is the best, it means its rational, the decision has to be based on reasonable data, facts and figures and reasons. So, it can be defined as “a systematic process of defining the problems, evaluating decision alternatives and selecting the best alternative decision available.(Mansor, Zakaria, 2008, P36)”. The objectives of rational decision making is to choose the best solution which will be applicable and also maximizes the profits and minimizes the cost and the risk. Steps of decision making: According to Michelle Krehbiel (2012) there several steps decision makers can follow in the decision making process.  Defining the problems Decision makers clarifies or identifies the problem and its root causes  Considering the…show more content…
The chosen solution is then called the decision.  Implement the decision Once the decision is made, decision maker should put the decision into action plan, which means to implement it. Every stake holders start from the company itself, government, and all other beneficiaries should be informed about the decision.  Evaluate the decision The final step is to evaluate the decision whether it fits or not, or its good enough or not or it is appropriately and effectively addressed to the problem. Benefits or rational Decision Making: As stated above, rational decision making is based on scientifically obtained information, so this decision making model can reduce the chance of errors, uncertainties, assumptions, subjectivity and distortions. This approach can also reduce to risk of failures because the evaluation and selection process of this approach are based on sane and logic information and knowledge. Rational decision making can help the decision makers to deal with difficult problems in a complex

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