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Managerial decision-making

Provide a critical examination of three discrete concepts that may explain bias in decisions.

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Added on  2022-10-01

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This assignment takes into consideration, the aspects of bias and error, the basic problems and consequences and emotions and cognitions, which shapes the thinking process towards decision making. The discussion started with evaluation of the Simone’s quote regarding the complex approach towards exposing rational behaviour towards decision making. Theories like Rational Choice Theory, Deterrence Theory, Theory of planned action and reasoned behaviour is used for supporting the assumptions about the available facts and assumptions.

Managerial decision-making

Provide a critical examination of three discrete concepts that may explain bias in decisions.

   Added on 2022-10-01

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Running head: MANAGEMENT
Managerial decision-making
Name of the student:
Name of the university:
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Managerial decision-making_1
1
MANAGEMENT
Table of contents
Introduction................................................................................................................................2
Discussion..................................................................................................................................2
Decoding Simon’s statement..................................................................................................2
Theoretical considerations.....................................................................................................2
Bias and error.........................................................................................................................3
Emotion and motivation.........................................................................................................4
Basic problems and consequences.........................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7
Managerial decision-making_2
2
MANAGEMENT
Introduction
Approach towards decision making reflects the management of emotions. In this
process, rationality is an important aspect for solving the critical issues. Logical reasoning is
also needed for assessing the extent to which the performance aligns with the benchmarks
towards objective rationality. The observations of Simon are crucial in this context, which
reflects the ways and means in which the complex problems are solved and the impact it
creates on the human mind (Simon, 1955). This assignment takes into consideration, the
aspects of bias and error, the basic problems and consequences and emotions and cognitions,
which shapes the thinking process towards decision making.
Discussion
Decoding Simon’s statement
According to Simon, the capacity of the human mind towards solving the problems is
meagre as compared to the rationality required for solving the problems in the real word
setting. This is an obvious tendency, which contradicts the aspect of overconfidence, which
produces negative results in terms of accomplishing the goals and objectives. This approach
opposes the essence of objective rationality, which is crucial for achieving relevant
resolutions to the potential issues (Simon, 1955). The important aspects in this context are
biases and heuristics, basic problems and consequences along with emotions and cognition,
which are the components of decision making process.
Theoretical considerations
A better understanding in this regards is achieved through the incorporation of
Rational Choice Theory, which consists of the belief that the performance exposed by the
individuals yields more benefits than the costs. As a matter of specification, rational choices
govern the behavioural approaches towards accomplishing the goals and objectives. On the
contrary, Simon, (1955) highlights the economic theory by stating that ‘being economic is
Managerial decision-making_3

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