Rationality in Decision Making, Herbert Simon

Simon spoke on the dynamics of decision on a different plane – the plane of rationality. He emphasizes upon being rational in decision making. Rationality is defined in terms of ‘appropriateness for the accomplishment of specific goals.’ He focused on the rational part of decision. Every decision is a combination of reason (rationality) & emotion. Simon gives importance to reason rather than emotion. A head faces number of constraints while making decision. It is because, while taking a decision, a head has to think, of all possible consequences, affecting political culture & values of society. He explains rationality in terms of means - end construct. ‘If appropriate means are adopted to reach desired ends, the decision is rational.’ In brief, rationality is making ‘an administrative man.’

Simon is aware that, reaching rationality itself is a difficult process, due to number of factors involved in it. So he has suggested different types of rationality. A Decision may be –

a) Objectively rational, where preference is given to values.

b) Subjectively rational, where decision maximizes attainment relative to knowledge of the subject.

c) Consciously rational where adjustment between means & end is made.

d) Deliberately rational where adjustment is deliberately made.

e) Organizationally rational where it reaches organizational goals.

f) Personally rational, where decision reaches individual goals.

Simon never agreed to the concept of total rationality. It is because no individual behavior can be totally rational or totally irrational. Simon therefore, described human behavior in an organization as, ‘intendedly rational’ Complete or total rationality is not possible because of –

a) Incomplete knowledge of the problem, alternatives & consequences. Simon called it as ‘bounded rationality’

b) Individuals cannot be completely standardized, having, as they do, multiple, even unranked, preferences.

So Simon calls rationality in terms of satisfying which involves the choice of course of action which is ‘satisfactory’ or at least good enough.

Simon was also aware about the limitations of the concept of rationality. The following features stand in the way of rational decision making –

i) Multiplicity of problems, goals & policy commitments.

ii) Inadequate information about the variety of acceptable goals.

iii) The personal limitation of a decision maker, in capacity, commitment & goals.

iv) Structural difficulties within organization.