Critical Analysis of Decision Making Application Essay Concepts

This essay provides a critical analysis of decision-making applications, focusing on three key concepts: bounded rationality, contemporary theories of rational choices, and rational components in role behavior. The introduction highlights the importance of decision-making in achieving organizational goals, particularly managerial decision-making. The main body delves into the relationship between behavior and rationality, exploring various decision-making processes and the significance of rational criteria. The essay examines bounded rationality, emphasizing its limitations due to constraints in capacity, information, and time. It further discusses contemporary theories of rational choices, the role of rational components in influencing behavior, and the evaluation of different alternatives. The conclusion summarizes how human behavior and rationality affect individual decision-making, including the various factors that bound rationality. The essay also references several sources to support its arguments, providing a comprehensive overview of the topic.

Decision making application
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Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
Decision making is one of the most common managerial skills that mainly involves the final
execution of well thought of plan. It is important in the organization, especially managerial
decision making that help for achieving the goals and objectives. This documentation will
describe the critical analysis of three different types of discrete concepts that useful for
identifying human behaviour. The essay will describe that understanding of rational behaviour
and process where author argued that specify the concept in terms of greater success.
Furthermore, this essay will lay emphasis on bounded rationality, Contemporary theories of
Rational choices and rational components in role behaviour.
MAIN BODY
Overview:
The distance between the behaviour and rationality has created bridge by using the concept
of decision making. There are numerous types of possible behaviour alternative that carried out
because every behaviour involves the multiple kind of selection process. Decision making
application is one of common process which performed different functions (Grillo, Ward &
Santos, 2016). On the other hand, Rationality is primary criteria that help in decision on the basis
of theoretical aspects.
It is considered three different concrete concepts in terms of human rational and include the
purpose of contrast. It can be represented the approach to the problem which are quite different
from other human rationality.
Bounded Rationality:
Bounded rationality is a relation of conformance between the end of pre-established and to
reach them. It is specification of values that beyond the scope of human behavior. it might be
challenging in terms of human rationality which implies the homo-economics concepts.
Rationality bounded due to the limited capacity, information and time. The bounded rationality
has come to encompasses the effective behavior of humans which are assumed the perfect
idealized condition by decision process. The modern economic theory help for begins with the
specific observations of human beings. According to the Canonical paradigm of the synchronic
decision making under multiple risk.
Apart from that the another represented by employment relationship based on the classical
criterion of rationality (Macchi, MacKew & Davis, 2017). It is not easy to extend in the
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situations where present uncertainty. The relocate of economic theory is to establish the model
where human being is understandable. For Example- A person decided to buy the new product
and spent more time to reach the best models, warranties and prices but it should be used the
most suitable approach and visit the local homes stores. In this way, he is now facing the
decision of which one buy the product. This concept is applied as a bounded rationality because
they have limited knowledge about the product and make rational decision.
Contemporary theories of Rational choices
There are various kinds of behavioural theories that can help in understanding human
behaviour and decision making. Theories of rational choice are a kind of framework which that
used for formal modelling and understanding of economic and social behaviour. The bridge
between human behaviour and rationality directly affects decision making, social and economic
behaviour of an individual. Every day behaviour of an individual, their choices, decision making
affects both social and economic behaviour of a human. Rational components play a vital role in
changing or affecting human behaviour Rational choice theory not only rational components but
there are various other determinants that affects an individual’s choice and decision making, as
availability of various choices affect an individual’s preferences (Alba, 2018). Difference
between both the authors thinking is that Simon focuses on rationality rather than rational agents
but Alba focuses on rational agents as they focus on availability of information, potential cost,
probabilistic events. It affects an individual’s choice, preferences and decision making.
It explains that rationality is an efficient relation between preestablished ends and ways to
reach them. Evaluation of these ends and means is done in three basic steps. First step is to list
all kinds of behavioural alternatives. Second step is to determine all kind of consequences that
can be followed in future in order to adopt each of these alternatives. Last step is to compare all
the alternatives, such that consequences of each of them can be evaluated. These theories help in
understanding uncertainty situations so that optimal decisions can be taken. these decision
theories does not directly focus on description of human choices but words as a guidance in
rational decision making as they shed some light on all uncertainties involved in decision
making.
Theory of games and economic behaviour provides an enormous attention to rational
choice theory (Carvalho, Meier & Wang, 2016). Carvalho, Meier & Wang has successfully
transformed statistical test theory into rational decision theory. However, according to the article,
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this theory as a wrong head as assumption of rational choice is a choice and ignoring principles
of rational choice on any kind of unrealistic applications and unlimited conceptual power is
wrong. Main advantage of this theory is that it focuses on interaction between two participants as
well as their behaviour to study rational individuals and strategic decision making.
According to Theory of Games and Economic behaviour, it can be identified the
construction of cardinal scale in terms of utility where generate relation between probability and
utility. In additional, social science is to considerable a large number of people having high talent
and strong mathematical training. For this reason, it occurred to develop the new era in terms of
social sciences. Marshall, Brown & Radford (2017) argue that establish satisfactory and typically
identify the problem related economic behaviour which are strictly identified through
mathematical concept of strategy.
Rational Components in role behavior
It is mainly focused on the role in social psychological that has been accomplished by
clarification where social role of human being is to be specified. The specifications of the role
mainly consist in the different subset that are guide to people in decision making. In this way, it
is considered the crucial part which defined role in decision premises rather than the decision
compounded. Individual human choice take place in the perfect environment and also accepted
the premises by his behaviour, choice. On the other hand, the role behaviour applies to the subset
of premises choice of individual that can be derived from situation. The principle of bounded
rationality will determine the specific choice by psychological and social ways.
Individual choice of a human in an environment is accepted by as a subject base for their choice.
Rational components are important to be considered as they play a vital role in their behaviour
which further helps an individual in making sensible choices or in rational decision making. Role
plays a vital role in sociology as role is a kind of a behaviour or duty which is required by a
human to be fulfilled. Role of a person also helps in determining their individual behaviour.
Further explains that rational behaviour of an individual provides than an optimal benefit in
rational decision making (Dean, 2016). For example, many people choose to invest in organic
produce operations rather than conventual produce operations if they have strong value in
organic produce value. However, it is not true that rational behaviour also helps in providing best
possible material returns, but helps in providing best possible solution for decision making.
Many economists while developing theory of economics make various kinds of assumptions that
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are part of their rational behaviour which is used in decision making. According to the article
there is no antithesis that whether the behaviour is rational and notation of human behaviour is
considerable to determine role behaviour.
The Problem has been raised in theory of rational choice at different ways and also suggest the
specific solutions:
Rationality and Maximization: It is mainly focused on simplifying the choice of problem
that brings within the power of human computation. This process is basically replaced the
maximum objective of satisfying and also finding the actions that is good enough. In this way, it
will show the requirements and need of actual estimates in terms of joint distributions.
On the other hand, the effective solution is to satisfy goals that may finding proper move and
also maximizing the specific goals.
As per evidence, it has been identified that mental process of human become higher which
may explain on the basis of rationality. As per Macchi, MacKew & Davis (2017) it is describing
the program that help for enabled the digital system to discover the appearance of human
behaviour by using symbolic logic. The program has been successfully working and generate the
correct idea about the human behaviour and how it is directly contradicted with the decision
making.
CONCLUSION
From the above essay, it has been summarized that human behaviour and rationality are two
most important concepts that affects decision making of an individual. It has been observed that
decision making of an individual, their choices as well as preferences affects social and
economic behaviour of an individual in a drastic manner. There are various factors that bound
rationality like limited capacity, time and information. It has also been analysed that bounded
rationality encompasses effective behaviour of an individual which further helps in assuming
perfectly idolized conditions for decision making. It has been analysed that there are two main
principles of bounded rationality that explains that capacity of human mind to solve complex
problem is quite small as compared to size of problem which is required to be solved.
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REFERENCES
Book and Journals
Alba, B. (2018). Factors that impact on emergency nurses’ ethical decision-making
ability. Nursing ethics. 25(7).855-866.
Carvalho, L. S., Meier, S., & Wang, S. W. (2016). Poverty and economic decision-making:
Evidence from changes in financial resources at payday. American Economic
Review. 106(2). 260-84.
Dean, A. G. (2016). Effectiveness of training program on clinical decision making regarding post
operative pain management in terms of clinical decision making ability among nurses in a
tertiary care setting udupi district.
Grillo, T. L., Ward, A. F., & Santos, C. P. D. (2016). Head in the ‘Cloud’: Online Information
Search Inflates Consumers’ Self-Confidence in Personal Decision-Making Ability. ACR
North American Advances.
Macchi, R., MacKew, L., & Davis, C. (2017). Is decision-making ability related to food choice
and facets of eating behaviour in adolescents?. Appetite. 116. 442-455.
Marshall, J. A., Brown, G., & Radford, A. N. (2017). Individual confidence-weighting and group
decision-making. Trends in ecology & evolution. 32(9). 636-645
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