Managerial decision-making

Running head: SOCIOLOGY
Managerial decision-making
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SOCIOLOGY
Human mind is capable of performing the tasks up to a certain limitations, which
relates to the complexities within the decision making and problem solving. There is
awareness about the formulation of the plans, however, actual experimentation with the
available solution and alternatives relate helps in gaining awareness about the real world
scenario and the consequences. In this experimentation, rationality gains prime importance in
terms of exposing appropriate behaviour towards deciding on the implementation of the
solutions (Simon, 1955). Theoretical considerations are essential for justifying the
propositions and assumptions. Based on these aspects, the thesis statement of this essay is to
measure the aspects of rationality, bias, emotions and motivations, which adversely affects
the decision making process.
There is a clear demarcation between the real world scenario and the scope and arena
of the applicability in case of the elements of mental psyche regarding undertaking effective
decisions. The humans are provided with the choice for performing the actions according to
the plans and requirements. The component of rationality is integral for exerting the choice in
an efficient and effective manner. According to Faludi, (2017), logical approach in exercising
the choices helps in achieving effective solutions for the issues. Rational choice is an
initiative towards decoding the complexities.
In this context, the principles of bounded rationality can be related for highlighting the
examples of consumer and entrepreneur. From the economic perspective, both the consumer
and entrepreneur are bounded by goals for enhancing the personality. For consumer, the goal
is to maximize the utility and for entrepreneur, the goal is maximization of the profit through
the achievement of customers’ satisfaction. The postulates in this context revolve around the
behaviour of the individuals. The external surroundings attain centrality in this context for
scanning the implementation of the correct decision. Assumptions related to viable solutions
projects disproportionate relationship with rationality (Lindblom, 2017). Typical evidence of

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SOCIOLOGY
this lies in the empirical analysis stating the psychological statements about the individuals.
In this context, mention can be made about the concept of classical observation, which shapes
the basic characteristics.
One of the main arguments is ‘rational adjustment to ignorance’, which exempts
rationality regarding the implications of omniscience. In this case, the main assumptions
pertain to limitations on representation of objective orientation in the real world settings.
Application of economic theory results in gaining awareness about the significance of the
psychological characteristics. Deductive reasoning is assistance in terms of predicting the
behavioural changes in accordance to the observation. As stated by Halpern and Stern,
(2018), these aspects sets the ground for one of the main principle of bounded rationality,
which deals with the complexities in the approaches towards decision making. Herein
Simone takes charge in terms of shedding light on the aspects of rationality towards
undertaking crucial decisions.
According to one of the assumptions, if the principle is correct, then the goal is to
predict the extent of rationality in the behaviour, which is impossible without the
investigation of the psychological properties. Simplified model is used for evaluating the
rationality in the behaviour exposed. The interrogative parameter in this context pertains to
whether the behaviour is intentional or not. The construction of the simplified model
comprises of perception, thoughts and learning. Administrative theory can be incorporated in
terms of practical limitations to rationality. Ortega, (2018) is of the view that the assumptions
reflects that these limitations are not static and are dependent on the environment in which
the decisions are taken. These limitations persists in the surrounding and communication.
The assumptions also relate to the subtlety and static nature of the limitations. In this
context, mention can be made of social contract theory, which scans the external forces