Rational choice theory Essay Example | Topics and Well Written Essays - 1500 words

intelligent survival of the fittest theory - Essay ExampleSpecifically, sagacious choice theory also claims that the conclusion maker knows all the potential alternatives and that s/he makes a decision after evaluating them all (Heath 2001).Decision-making process in organizations can be distinguished as automatic regular decisions made in accordance to establish guiding principlesor non-programmedchoices necessitating new and innovative solutions (White 2006). Furthermore, decisions vary with regard to the level of risk present, ranging from those wherein the results of a decision are fairly definite to those wherein results are considerably indefinite. Indefinite circumstances are communicates as luck statements derived from either subjective or objective facts (Heath 2001). Rational choice theory portrays decision makers as consistently rummaging around appropriate and relevant information to make the best possible decision.This essay will talk of the premises of lucid cho ice theory, its implications on managerial decision making, and the validity of the argument that individuals are rational and normally act as maximizing entrepreneurs.Rationality is revered in the Western world. A rational choice is one that arises in structured procedures and maximizes a value, regardless if it is marketability, controllability, reliability, efficiency, integrity, or any of numerous early(a) values (Goodin 1998). Observance of any value requires upholding one alternative over another. According to rational choice theory there are major steps to making a rational decision (Allingham 2002). The enterprise is as crucial as the ultimate decision, due to the fact that each step affords an opportunity to re-evaluate the lessen and maximized values (Allingham 2002). The first step is problem definition. This entails identifying key variables under consideration and analyzing the