Bounded Rationality Case Study

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Take Home Test 1. What is bounded rationality? How is it related to decision making? Bounded means limit and rationality means reasonable view. Bounded rationality can be defined as limitation of reasonable view for an individual to make a solution or decision. Hence, an individual must understand all the limited or incomplete information that they have in order to optimize people satisfaction. Bounded rationality often leads to people thinking fast, which instinctive and will make us to result in a poor decision. Besides that, a manager from a company will always seek for satisfice solution instead of optimal. According to Herbert A. Simon, he says that humans like us have a limitation in our rationality due to gain full understanding for future consequences, evaluate the future tasks, and making optimum decisions. Therefore, individual tend to make rational decision that are bound to satisfaction rather than maximizing or optimizing a complex decision. For example, a manager must decide a solution where it is good enough to solve the sudden situation such as insufficient stock due to employees’ negligence. 2. Explain…show more content…
Masculinity is the degree to which values such as the acquisition of money and material goods prevail. Masculinity also can define as a degree to which the culture favors traditional masculine roles such as achievement, power, and control, as opposed to viewing men and women as equals. For example, if the leadership team is competitive in an organization, the employees may be encouraged to compete with one another or to beat out the company's competitors. Femininity is the degree to which people value relationships and show sensitivity and concern for others. For example, if a leaders are caring towards everyone including employees, the employees are more likely to behave with tolerance and

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