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Week 5 (Managerial decision making (RATIONALITY (▪ Assumes: ((▪ The…

- - - - ▪ Decisions made within the parameters of a simplified model that captures the essential features of a problem
      - ▪ Bounded by the limitations and constraints, managers attempt to behave rationally
      - ▪ “Good enough” decisions – “satisficing”
  - - - ▪ The problem is clear and unambiguous
        
        ▪ A single, well-defined goal is to be achieved
        
        ▪ All alternatives and consequences are known
        
        ▪ Preferences are clear
        
        ▪ Preferences are constant and stable
        
        ▪ No time or cost constraints exist
        
        ▪ Final choice will maximise payoff
- - - - ▪Increase legitimacy
      - ▪ Increases acceptance of a solution
      - ▪ More diverse alternatives
      - ▪ More complete information & knowledge
  - - - ▪ Time consuming
      - ▪ Minority domination
      - ▪ Pressure to conform
      - ▪ Ambiguous responsibility