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When organisational decision makers make decisions, the decision can represent an individual’s decision or the decision of the entire group. Individual decision makers can be a single person whereas multiple decision makers can be groups where all the members have a say in the decisions, teams where members support a single decision maker or where global agreement is needed. Organisations normally make decisions in groups in order to generate more ideas and it is also easier to evaluate opinions as well as catch errors. ... Despite making rational decisions as a group, these decisions sometimes still fail. In this essay, I will discuss why organisational decision makers try to make rational decisions but often fail.
Decision making is fundamental to organisation and it provides a means of control and of coherence in systems. Decisions can be programmed or non-programmed decisions. Programmed decisions are not new and are handled in traditional ways while non-programmed decisions involve finding solutions to problems which are novel or new. Non-programmed decisions are more typical of upper levels in the organisation while programmed decisions are more routine decision making and lower levels of the hierarchy. Rational decisions are based on reasoning; they are objective more than subjective and are likely to be logical and sensible. By making a rational decision, a logical step-by step approach to decision making, with a thorough analysis of alternatives and their consequences is carried out. In such a case, the outcome will be completely rational, the decision makers use a consistent system of preferences to choose the best alternative and they are aware of all alternatives and lastly, they can calculate the probability of success for each alternative.
Irrational decision making recognises that there are decisions which do not lend themselves to rational, analytical decision making. In such a case, decision makers relax their assumptions of perfect knowledge and rationality in the process of decision making and look at the issue from the point of view of the decision maker – personal preferences and values intrude on the decision. ...
According to the rational model, decision making is often assumed to be rational as a decision maker who is perfectly rational would be fully objective and logical. The organisational decision makers will carefully define the problem and have a clear and specific goal. The decision making process consistently leads to selecting the alternative that maximises that goal. ...
The assumptions of rationality often do not hold much truth, because there rarely exists the level of certainty that the rational model demands. In many cases, organisational decision makers try to assign probabilities to outcomes that may result and this process is dealing with risk.
Approximate Word count = 2157
Approximate Pages = 8.6
(250 words per page double spaced)
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