Rational decision making in mis
- 1. Rational Decision Making in MIS Presentation By Management Study Online (MSO)
- 2. Meaning • A rational decision is the one which, effectively and efficiently. Ensures the achievement of the goal for which the decision is made. If it is raining, It is rational to look for a cover so that you do not get wet. If you are in business and want to make profit, then you must be produce goods and sell them at a price higher than cost of production. In reality, there is no right or wrong decision but a rational or an irrational decision. The quality of decision-making is to be judge on the rational and not necessarily on the result it produces.
- 3. Process of decision making
- 4. The rationality of the decision made is not the same in every situation. It will vary the organization, the situation and the individual's view of the business situation. The Rationality, therefore, is a multidimensional concept. For Example:- the business decisions in a private organization and a public sector undertaking differ under the head of rationality. The reason for this difference in rationality is the different objectives of the decision makers. Any business decision if review by a shareholder, a consumer, an employee, a supplier and a social scientist, will result in a different criticism due to difference individual's rationality this is because each one of them will view the situation in different contexts and the motive with in different objectives, Hence, weather a decision is right or wrong depends on a specific rational view.
- 5. Simon Herbert A* differentiates among the types of rationality. A decision, in a given situation is: • Objectively Rational: If it maximizes the value of the objectives. • Subjectively Rational: If it maximizes the attainment of value within limitation of the knowledge and awareness of the subject. • Consciously Rational: The extent the process of the decision- making is deliberate and a conscious one. • Organizationally Rational: The degree if the orientation towards the organization. • Personally Rational: The extent it achieves and individual's personal goals.
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- 7. http://www.managementstudyonline.in/ You are free to use these Presentations for your personal and business presentations. Don’t do this. Resell or distribute these Presentations. Put these Presentations. on a website for download. This includes uploading them onto file sharing networks like Slideshare, Myspace, Facebook, bit torrent etc Pass off any of our created content as your own work