Satisficing.

Topics: Inch, Optimal decision, Decision making Pages: 2 (555 words) Published: June 20, 2013
Organizational Development & Culture

The decision making process is an evaluation on which options are study and

analyzed, with the purpose of selecting the best possible outcomes that suit better the interest of a company or organization. This process entails the specific action of choosing one rode among a wide variety of options under different sets of criteria and strategies. There is two different approaches within the decision making process; first, the strategy that attempts to meet criteria for adequacy rather than to identify an optimal solution and second the strategy or art of finding the best option among all options.

The first strategy that attempts to meet criteria for adequacy rather than to identify

an optimal solution it is call satisficing. In decision making, satisficing explains the tendency to settle for the first and most practical decision because is most obvious, attainable and reasonable within a certain level of acceptability. Nobel laureate Herbert Simon coined the term satisficing to describe "decision making that takes the short cut of defining a set of aspirations and then settling on some (usually the first) alternative that meets the minimum requirements" Moyer. "April 2007." Harvard Business Review

“Human beings lack the cognitive resources to maximize and we usually do not

know the relevant probabilities of out comes” Moyer. "April 2007." Harvard Business Review. These are the reason that exempt why most of the times humans beings tend to chose satisficing as the most common approach within the design making process. Even though often is a necessary approach, it is unlikely to end up with something much better than we were willing to accept. Therefore, given this common trend

business leaders must set high standards to improve quality of outcomes in the decision making process. Additionally on the opposite side there is a more exhaustive approach called

optimization or maximization. This approach...

Citations: 1. Moyer. "April 2007." Harvard Business Review. The Magazine, Apr. 2007. Web. 19 June 2013. 2. "Satisficing." Investopedia. Investopedia, n.d. Web. 19 June 2013.
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