Sey Am oe Step-by-step solution Behavioral nature of decision making: Retional deciston making alone proves to be successful Managers try tobe most rational in making decisions all the time, But some decisions fail in supporting organizational goals while some decisions prove to be fatal to the survival af the organization, The behavioral aspects of decision making are those factors which affect the process of rational decision making ‘Administrative model: The administrative model suggests how decisions are made on a usual basis. This model suggests that Managers use incomplete and imperfect Information: Mangers inheritaby take incomplete and imperfect data and comprehend to make decisions, They artive at wrong assumptions and finally wrong conclusions. When these decisions are implementing they cost huge losses to the organization. But the process of taking decisions which degrade the organizational performance Is. completely unintentional from the part of managers. Mangers are limited by the boundaries of rationality: One ofthe important constraints in rational decision making isthe existence of bounded rationality, Mangers are usually bounded or limited by the organizational values, unconscious reflexes, skills, capablities and personal habits. These factors limit the rationality of arriving at correct decisions. Mangers reach satisfaction by finding only one ‘alternative which meets the minimum standards of sufficiency. Mangers rather than attempting to exhaustive research for new products, markets, capacity expansions, suppliers and buyers limit their research to the achievement to one altemative hich provides minimum standards of sufficiency. Managers after involving themselves In research for certain period of time, feel the process to conducive, and restrict themselves ‘rom searching wide number of alternatives, available t that point of time. This widely depends on the prejudiced and personal contemplations of the managers. comment Cy Pee cheos ‘Writing lab closed? a ‘Writing lab closed?(Chegg ae ‘Writing lab Political forces in decision making: Apolticl closed? force plays an important role in affecting rational eee decision making by managers. Coalitions ate a =a pat of pole oes. Goation an inform association of individual formed stve hard to a settee comenen gol Since cottons project aces predefined corn gol othe rood slosed? * betterment the coalition so formed, mangers are ited subjected to enact with the decisions which = satisfy the goal of coaitional. Hence they are limited by coalitions in achieving rationality in their decisions. Such decisions might of might not yield profits. Hence managers much know ‘the Impact of coalitions on decision making process. They should know how to handle decision making process without the effect of organization, Moreover they must evaluate the decisions taken by the effect of coalitions are effective in supporting the mission of the organization. Intuition and escalation of commitment: Intuition Is the inborn or instinctive conviction or idea about something with unconscious contemplation. Besides having experience and wisdom ‘managers sometimes believe in something unconsciously to be correct. Ths type of feeling or belief is not an outcome of instantaneous happens rather ithas resulted due to several years of false belief and practice without adhering through several steps of decision making process. Managers who are mostly experienced are less likely to fallin to intuition while taking decisions. Escalation of commitment: A decision maker staying with the decision even when t proves to be wrong. Sometimes mangers constraint ‘themselves from taking rational decisions by relying with the escalation of commitment, The more times a decision proves tobe wrong the more its good to step out of i. Risk propensity and decision making: It's defined as the extent to which decision maker Is. vulling to take the risk of making a given decision. Some mangers are careful about every day decision making. Conservative managers are Fisk averse and take decisions with great rationality and precision. The autcomes af such decisions give decent profits, While others are aggressive in making decisions and they are risk taking and have a great propensity to take risk ‘These types of mangers base thelr decisions onyears of false belief and practice without er TE making process. Managers who are mostly ‘Cheos cxperanced ar len kt fn to ton Weting ab whe taking eaten lose?” Escalation of coreliment: decison mate staying with the decision even when it proves to: =—_ be ong Sometimes mengersconettn themselves from taking rational decisions by (Chegg ring ve abcadtno ora. he Wtng ab Imote good step out of Risk propensity and decision making: It is =—= deta os the exten to whieh eile moter a lingo ake te ik cf making gen decklen, Some manger arcateu aut every dey deceon raking, Conervatve manage ae tk roo en ake dachior ith tet ‘analy andpretson, The outcomes of uch dectlon ge decent profs, Whe thers re sgatessvemmaking declon end the re ik taking and haves gest Propensity to take isk These typeof manger base hel dectlon on ito, The outcome ofthe delion nt known vith cata and th enstenceof ke See een net nag. However Iaith deca ther be proba tether make ge profit or huge ones, Ei and decision making Indl tice are behav, Declan mang is fate bytes o esrectextert eying wih ethics night or right ot shape rete decsos, For enale testator good standard of ond by offering tt ighe pie han he compere Usually sueeptble oles of some of te customers toe compettre but evenly wil be dfeeniated sea rerun wth god standin Sey compe edit on ‘upp n tne might en hm det the at maintained bythe supple Tis moh incur loses othe company a the reser ihe fever gota Cah Comment