managers cannot be rational decision makers in real life?
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Answer:
By studying such real life practices of decision-makers, researchers identified the real world phenomena of bounded rationality of managers in making decisions. Bounded rationality is using limited information and limited analyses so as to obtain the first acceptable decision rather than the best possible solution.
Answer:
Managers cannot be rational decision makers in real life due to the following barriers :
1. Constraint of time - Managers frequently acknowledgment requirements that can pursue compelling choice making a test. At the point when there is brief period, free to gather data and to normally handle it, we are substantially less prone to pursue a decent nonprogrammed choice. Time constraints can make us depend on heuristics as opposed to take part in profound handling. While heuristics save time, be that as it may, they don't need to be guaranteed to prompt the most ideal arrangement. The best managers are continually surveying the dangers related with acting excessively fast against those related with not acting rapidly enough.
2. Uncertainty - Also, managers habitually settle on choices under states of vulnerability — they can't have a clue about the result of every option until they've picked another option. Consider, for instance, a manager who is attempting to choose one of two potential promoting efforts. The first is more moderate yet is predictable with what the association has done before. The second is more current and edgier, and could bring much improved results. Or, on the other hand it very well may be a terrific disappointment. The manager settling on the choice will at last need to pick one mission and see what occurs, while never knowing what the outcomes would have been with the substitute mission. That vulnerability / uncertainty can make it hard for certain administrators to decide, in light of the fact that focusing on one choice means renouncing different choices.
3. Bounded rationality - Bounded rationality is the possibility that for complex issues we can't be totally sane in light of the fact that we can't completely get a handle on every one of the potential other options, nor might we at any point see every one of the ramifications of each and every conceivable other option. Our minds have limits as far as how much data they can process. Additionally, as was implied prior in the section, in any event, when administrators have the mental capacity to handle all the applicable data, they frequently should settle on choices without having opportunity and energy to gather every one of the significant information — their data is deficient.