Bounded Rationality
The world around us is both complex and huge so when tougher problems necessitate more thought, it often increases the mental load and playing inside the bounds of rationality gives an individual few standards, or halt their current boundaries. And bounded rationality identifies that it is hard to examine and comprehend all of the possibly significant evidence in making selections. The only conceivable way of managing with the complication of the situation is to improve habits, techniques as well as standard operating procedures that are (SOP) to enable taking decisions. As Herbert Simon specified that there are two chief reasons of bounded rationality:
1. The arrangement where the mind operates
2. Boundaries of our human mind (Dean & Sharfman, …show more content…
It may be summed up as organizational, general and individual. One of the chief benefits concerns an active way of bringing an active change and to solve a wide range of problems. The second advantage is that the logic and reason has been balanced by divergence and creativity throughout the whole process (Georgakakos & Graham, 2008). It offers the group and the individual with augmented confidence that a right decision has been made, though attaining that decision require extra time. Another prime benefit of this process in an organization or an institution are that it permits an individual to comprehend the problem sensibly before considering other options. Moreover, the method contains built-in step to reflect might be wrong if precise explanations are designated. Finally, the use of a problem solving procedures enhance the growth of unity inside the institution. If everybody is using a similar method of problem solving, then consensus or agreement is much easy to attain. Such combined action usually produces superior consequences than non-unified action. It has been believed that three features are essential for decision making and problem solving, a suitable level of communication and thinking skills, an information base, and a strategy and the systematized approach to solving problems ("Bounded Rationality," 2012).But there are some potential limitations of bounded rationality. The time decision makers are
1. The arrangement where the mind operates
2. Boundaries of our human mind (Dean & Sharfman, …show more content…
It may be summed up as organizational, general and individual. One of the chief benefits concerns an active way of bringing an active change and to solve a wide range of problems. The second advantage is that the logic and reason has been balanced by divergence and creativity throughout the whole process (Georgakakos & Graham, 2008). It offers the group and the individual with augmented confidence that a right decision has been made, though attaining that decision require extra time. Another prime benefit of this process in an organization or an institution are that it permits an individual to comprehend the problem sensibly before considering other options. Moreover, the method contains built-in step to reflect might be wrong if precise explanations are designated. Finally, the use of a problem solving procedures enhance the growth of unity inside the institution. If everybody is using a similar method of problem solving, then consensus or agreement is much easy to attain. Such combined action usually produces superior consequences than non-unified action. It has been believed that three features are essential for decision making and problem solving, a suitable level of communication and thinking skills, an information base, and a strategy and the systematized approach to solving problems ("Bounded Rationality," 2012).But there are some potential limitations of bounded rationality. The time decision makers are