BUSI1702 Organisational Decision Making Lecture 2 Rational Decision Making Part 1 What Makes A Choice Rational?
BUSI1702 Organisational Decision Making Lecture 2 Rational Decision Making Part 1 What Makes A Choice Rational?
Making
Lecture2 Rationaldecisionmaking Part
1
Whatmakesachoice rational?
Dr Minjie Cai
Senior Lecturer in HROB
E: [email protected]
A. £25
B. 0.9 x £ 20 + 0.1 x £100 = £18 + £10 = £28
1980s community
individual mobility
building - green
- car sales
economy
(Smith, 1989)
Individual beliefs, Problems are
preferences, and intrinsically
capabilities subjective
External Problem
realities identification
©Minjie Cai 2021
Which problem is better defined?
Information
type and
Information content
search
Direction of method
problem
Perception solving
of the process (Smith, 1989)
problem
©Minjie Cai 2021
Problem definitions & rational choice
NASA managers:
When can the Challenger be ready for launch without delay?
©Minjie Cai 2021
Problem definitions & rational choice
Organisation
Individual Collective
interests interests Symbolic &
Rules & incentives
physical resources
Social Organisation
capital objectives
Control Coordinate