Non Rational Decision Making and Organizational Sustainability
[Date of Submission]
The APA Research Paper3
Introduction3
Discussion3
The Non-Rational Decision-Making Models3
The Sustainability Phase Model4
The Reasons behind Failure of a Company5
The Costs Incurred by Business for Non-rational Decision-Making6
How to Gain Competitive Edge and Create Sustainability7
The Increase in Return on Investment from Informative Resources8
Conclusion9
Non Rational Decision Making and Organizational Sustainability
Introduction
For the survival of an organization, the critical key is decision making. Especially in this present time where we witness the economic boundaries between businesses and country crumble becoming more knowledge-driven, global and complex. In order to maintain and achieve a sustainable competitive edge, continuous innovation in an organization is must be ensured by the managers (Kørnøv & Thissen, 2000). Managers realize that they have to make decisions concerning new technical developments, markets, suppliers, customers, products and business opportunities if their organizations aim to survive in this uncertain and dynamic environment. Thus, the ability to make the right decision is the most important managerial attribute. To evaluate the success of the managers, the outcome of the decisions will be used as the benchmark.
Discussion
The Non-Rational Decision-Making Models
Every day in the life of an organization, issues and complex problems are faced by managers while making decisions. Throughout the organization, these issues and complex problems can have far-reaching and serious consequences if not properly addressed. The existence of decision making models is the major underlying reason behind it (Nilsson & Dalkmann, 2001). The decision making models are methodical, systematic and logical approaches to problem solving. Four groups of decision making models are identified. Non-rational, process, political and rational, is the models of decision making.
With traditional rational theories, to overcome the issues, a heterogeneous class of theories of decision making is used, which is known as non-rational decision making. Satisficing, procedural rationality and bounded rationality are the models of non-rational theories. Rather than postulating omniscient rational beings, agents with little time, limited knowledge and emotions are postulated by the non-rational theories and such agents in the real world are fared badly. To make optimal decisions has become quite critical for managers, due to the limitations within processing and information-gathering, in accordance to the non-rational models of decision making. Rather than seeking the optimal decision, such alternatives that derive satisfaction are approached by the managers, according to the satisficing model, which was developed by Herbert Simon.
The Sustainability Phase Model
To assess the practice of behaviors relevant to ecological and human sustainability and to the current commitment, for making meaningful comparisons between organizations, the sustainability phase model has been designed as a tool. In progressing to sustainability, a set of distinct steps are outlined by the phases that are taken by the organizations. Not only within the organization, but within society and industry as a whole, through indifference, from active antagonism to actively furthering sustainability values and to a strong commitment, there is a progression.
To characterize the characteristic way of treating the natural and human resources employed by an organization, we can use the phases. The phases can also be used in tracing ...