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Observation Review

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Introduction

The English word 'Decision' originated from the Latin word 'decisio' which means "to cut from."
'To decide' means "to come to a conclusion" or "to pass a resolution.
According to Trewartha and Newport
"Decision making involves the selection of a course of action from among two or more possible alternatives in order to arrive at a solution for a given problem."

Bounded rationality
The concept and associated decision model of bounded rationality was first discussed by Herbert Simon in his celebrated book Models of Man published in 1957 by John Wiley and Sons.
Simon basically stipulates that individual decision making is not rational as assumed by a number of theories, especially dealing with economics issues. Individual decision making is limited by a number of boundary conditions such as the individual's intellectual traits, time, and non perfect information.
Non perfect information for example, can pertain to limited access to reliable information or raw information, information corruption through layered processing and/or simply lack of information

Bounded rationality and decision making.
When applied to management decisions, managers, usually because of time constraints, lack of information, and cognitive factors usually make numerous daily decisions and seek to make the best possible decision considering the circumstances, rather than the optimal decision; the optimal decision would be the most rational decision under perfect circumstances. Perfect circumstances include perfect information.
This also implies that a particular manager faced with the same challenge but at different time may make a different decision at that time.So instead of employing purely rational problem optimization techniques, mainly because of the complexity of the situation, cost/time and cognitive limitations, managers will opt for a heuristic approach to

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