Behavioural approach towards solving complex problems

Running head: MANAGERIAL DECISION MAKING
Essay and case study analysis on Managerial decision making
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MANAGERIAL DECISION MAKING
Table of contents
Part A (Essay)............................................................................................................................3
Introduction............................................................................................................................3
Discussion..............................................................................................................................3
Objective rationality...............................................................................................................3
Simon’s approach to decision making...................................................................................4
Bounded rationality................................................................................................................5
Systems thinking....................................................................................................................5
Critical analysis......................................................................................................................6
Conclusion..............................................................................................................................7
References..................................................................................................................................8
Part B (case study)...................................................................................................................10
Bounded rationality..............................................................................................................10
Example............................................................................................................................10
Bias...................................................................................................................................10
Discovery of the bias........................................................................................................10
Measurement of bias........................................................................................................10
Strategies to overcome the bias........................................................................................11
Steps to improve the decision making process................................................................11
Objective rationality.............................................................................................................11

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MANAGERIAL DECISION MAKING
Example................................................................................................................................11
Bias...................................................................................................................................11
Measurement of bias........................................................................................................12
Strategies to overcome the bias........................................................................................12
Improvement of the decision-making..............................................................................12
Systems thinking..................................................................................................................12
Example................................................................................................................................13
Bias...................................................................................................................................13
Discovery of bias..............................................................................................................13
Measurement of biasness.................................................................................................13
Strategies to overcome the bias........................................................................................14
Improvement of decision-making....................................................................................14
References................................................................................................................................15

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MANAGERIAL DECISION MAKING
Part A (Essay)
“Behavioural approach towards solving complex problems”
Introduction
Problems are an inevitable issue in the life of the individuals. The most common
expression related to the problems is resistance. This is in terms of the intensity of the
complexities, which compels the individuals to take troubles and difficulties. The approach
exposed towards the problem helps in achieving efficient and effective resolutions (Simon,
1957). This determination is one of an important component of the human mind, which
enables the people to attain growth and development. This segment of the assignment would
peek into the behavioural approach of the individuals upon encountering problems.
Discussion
As per the arguments of Bazerman and Sezer, (2016), human mind is a mere fragment
of the materialistic world. This is in terms of the incapability of tackle with complex and
weird problems. This can be explained through the views of philosopher, John Locke. He
opined that when a child is born, his mind is like a “blank sheet”, which indicates the free
flow of ideas. The child loves to explore the materialistic world, which bestows differing and
wide ranging ideas. This exploration develops his maturity. Slowly and gradually, its
maturity develops. However, Hoefer and Green, (2016) is of the view that upon experiencing
complex problems, individuals understand the complexities, within which they are entrapped.
This is the reason for exposing resistance towards accepting the problems.
It is natural and obvious that humans would shed off their responsibilities from the
potential problems, which they have to deal with. This approach might be considered as
irrational, however, in terms of the behavioural psychology of the humans, it is obvious and
rational (Deligianni et al., 2016).
Objective rationality
This is the concept, which relates with the behavioural approach of the individuals
towards decision-making. As per the opinions of Puranam et al., (2015), rationality and
objective are the two components here. In this case, there are two types of binary relations,
which can be established. Along with this, there are two conditions in this context: rationality
of the people in terms of decision-making and the sense in which the decisions are