The document discusses rational decision making in management information systems. It defines a rational decision as one that effectively and efficiently achieves the goal for which it was made. It notes that rationality can be judged based on the process of decision making rather than just the outcome. Rationality is a multidimensional concept that can vary based on factors like the organization, situation, and individual views. The types of rationality include decisions that maximize objectives, are made with the knowledge available, are made through a conscious process, are oriented toward the organization, and achieve personal goals.
2. Meaning
• A rational decision is the one which, effectively and
efficiently. Ensures the achievement of the goal for which
the decision is made. If it is raining, It is rational to look
for a cover so that you do not get wet. If you are in
business and want to make profit, then you must be
produce goods and sell them at a price higher than cost of
production. In reality, there is no right or wrong decision
but a rational or an irrational decision. The quality of
decision-making is to be judge on the rational and not
necessarily on the result it produces.
4. The rationality of the decision made is not the same in every
situation. It will vary the organization, the situation and the
individual's view of the business situation. The Rationality,
therefore, is a multidimensional concept.
For Example:- the business decisions in a private organization and a
public sector undertaking differ under the head of rationality. The
reason for this difference in rationality is the different objectives of
the decision makers. Any business decision if review by a
shareholder, a consumer, an employee, a supplier and a social
scientist, will result in a different criticism due to difference
individual's rationality this is because each one of them will view the
situation in different contexts and the motive with in different
objectives, Hence, weather a decision is right or wrong depends on a
specific rational view.
5. Simon Herbert A* differentiates among the types of
rationality. A decision, in a given situation is:
• Objectively Rational: If it maximizes the value of the
objectives.
• Subjectively Rational: If it maximizes the attainment of
value within limitation of the knowledge and awareness of the
subject.
• Consciously Rational: The extent the process of the
decision- making is deliberate and a conscious one.
• Organizationally Rational: The degree if the orientation
towards the organization.
• Personally Rational: The extent it achieves and individual's
personal goals.
6. http://www.managementstudyonline.in/
You are free to use these Presentations
for your personal and business
presentations.
Don’t do this.
Resell or distribute these Presentations.
Put these Presentations. on a website for download. This
includes uploading them onto file sharing networks like
Slideshare, Myspace, Facebook, bit torrent etc
Pass off any of our created content as your own work
7. http://www.managementstudyonline.in/
You are free to use these Presentations
for your personal and business
presentations.
Don’t do this.
Resell or distribute these Presentations.
Put these Presentations. on a website for download. This
includes uploading them onto file sharing networks like
Slideshare, Myspace, Facebook, bit torrent etc
Pass off any of our created content as your own work
