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Rational Approach

In: Business and Management

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Rational Approach
Grant Bowden
BUSI 610
Liberty University

Abstract
This paper begins with a concise introduction on the rational approach. From there the paper moves into defining the rational approach as it relates to decision-making. Next, the paper makes mention of Benjamin Franklin utilizing “pros” and “cons” in his decision making process”. Following this, there is a quick mention on uncertainty as it relates to financial risk as well as a brief mention of a step-based rational decision-making approach. After the definition section there is an application section which deals largely with uncertainty as well as intuition of a decision maker. It is argued that the rational approach fails to address certain aspects of uncertainty but does allow for improved decision making as a whole. Finally, the paper concludes concisely noting that the rational approach is not fully achievable in the context of the real world as it is intended for an ideal state bounded by rational criterion.

Rational Approach The rational approach to individual decision-making allows for managers to operate in the context of an ideal systematic method. Decision-making, particularly in the context of an organization, can be difficult with significant complexity and multi-faceted dimensions. Operating outside of a specific framework can increase the difficulty for managers to make the best possible rational solution resulting in arbitrary and sometimes non-optimal decisions. The rational approach allows for greater optimization and normalization in decision-making by managers across firms.
Rational Approach Defined In order to move forward in the discussion of the rational approach as it relates to managerial decision making it is important to define the term. Daft (2013) defines the rational approach as a “decision-making process based on systematic analysis of a problem

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