Essentials of Organizational Behavior, 14/e

Decision Making in Organizations

Business schools train students to follow rational decision-making models. While such rationalistic models have merit, they don’t always describe how people make decisions. OB improves the way we make decisions in organizations by addressing the decision-making errors people commit in addition to the perception errors we’ve discussed. First, we describe some decision-making constructs, and then outline a few of the most common errors.

The Rational Model, Bounded Rationality, and Intuition

In OB, there are generally accepted constructs of decision making each of us employs to make determinations: rational decision making, bounded rationality, and intuition. Though their processes make sense, they may not lead to ...