Managerial Decision Making: Critical Examination of Simon’s Quote

Running Head: MANAGEMENT
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[TYPE THE COMPANY NAME]
Managerial Decision
Making
Essay
Student
10/6/2019

MANAGEMENT
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Executive Summary
To accomplish the organizational objectives, the management of the company initiates the
decision-making process so that the goal can be achieved systematically and effectively. In this
process, the rational attitude of the team plays a vital role as it emphasis positive outcomes and
generation of optimum benefit. However, the behavior of the people varies according to their
prevailing conditions and needs. In this following report, the emphasis has been placed over the
Bound rationality, which is proposed by Simon, and 3 major concepts have been discussed
related to rationality.

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Contents
Introduction............................................................................................................................................3
Critically examination of Simon’s Quote..............................................................................................3
1. Heuristics:....................................................................................................................................4
2. Overconfidence............................................................................................................................5
3. Bound Awareness........................................................................................................................6
Conclusion.............................................................................................................................................7
References’............................................................................................................................................9

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Introduction
Rational behavior is a kind of attitude adopted by the people in the decision-making
process which can generate a positive outcome not only for the organization but can direct the
management to obtain optimum benefit from the decision. To gain an advantage, individuals
generally make choices and behave in a manner that directs them to accomplish their needs.
Therefore, it can be regarded as more purpose-driven and full of self-interest as goals are
achieved according to priorities. Moreover, rational decision value can be availed from the
available opportunities. However, sometimes rational behavior in the decision-making process
might not result in monetary satisfaction as it majorly focuses on the best result which can be
either in terms of money or value.
In the assignment, a critical analysis over the quote of Herbert A. Simon will be
conducted which depicts the complexities that might occur in the decision-making process,
which is difficult to analyze through the limited rational behavior of the individuals ( G., 2010).
In the assignment, bounded rationality has a major role, which states that the thought processes
of human minds are limited to particular information which is available to them. In the essay, 3
major concepts related to the behavior will be examined that are useful in depicting and
analyzing the biases in decisions (Huang, G., &, A. 2013).
Critically examination of Simon’s Quote
Herbert Alexander Simon who was known for its theories of bounded rationality and
satisficing quote, stated that “The capacity of the human mind for formulating and solving