MKT 3230 Lecture Notes - Lecture 22: Rationality, Bounded Rationality, Satisficing

• School: University of Manitoba
• Department: Marketing
• Course: MKT 3230
• Professor: Grant W.Wainikka

Document Summary

Mgmt 3230 managing organistions and people unsw 3rd ed. Rational decision making: describes choices that are consistent and value maximising within specified constraints. Making decisions: rationality, bounded rationality and intuition: assumption of rationality - rational decision maker would be fully objective and logical would carefully define a problem. And would have a clear and specific goal - making rational decisions leads to selecting alternatives that maximise the likelihood of achieving. The goal - rational managerial decision making assumes that decisions are made in the best economic. Managers are not able to analyse all information on all alternatives and therefore satisfice rather. Than maximise are being rational within the limits and boundaries of their ability to process information - satisfice: acceptance of solutions that are good enough - manager"s decision making may be strongly influenced by the organisation"s culture, internal.