The paper "Analysis of Decisions You Have Observed in the Workplace" is a perfect example of a management assignment. Avril, the branch manager is off to attend a community social responsibility (CSR) in Dublin for a week. In her absence, a project bid for the construction of an education center is due for tendering the same week. Avril is at a loss upon who to leave in charge of the branch and of the project which is worth £ 500,000. Romeo, who could be said to be the next in charge is an ambitious, hardworking man who very much envies the job Avril does and thinks that he is better suited to do by the manager.
Avril has noted that Romeo has been coming to work late and taking rather really long lunches. She does not want to entrust the project to him. Jenny, a recent graduate is the one given the task of steering this project. She is tasked with organizing the team to deliver the proposal before the deadline elapses on Friday the same week especially since her competition will also be doing the same. Jenny overhears Romeo having a conversation over the phone talking to a rival company and she is at a loss on what to do.
Rumours have been spreading in the office that Romeo could be sharing vital information with other rival companies. Jenny has known Romeo for some time having met at a conference three years earlier and they have had a cordial relationship since then. The other employees of the company have differentiated opinions on the subject. She could decide to either report the matter to Avril when she comes back from the trip or let it go, hoping that Romeo has the best interests of the company at heart.
Whatever decision she makes will have an impact, either adversely or positively depending on whether it is to be proven that Romeo was selling secrets or not. she decides to expose him. (314 words) Analyzing Jenny’ s decision Jenny’ s decision to expose Romeo is made within the boundaries of the theory of bounded rationality. Bounded rationality is a theory that was postulated by Herbert Simon in 1995 and it states that in a decision-making process, the kind of decision that one makes is limited to the information that these people are exposed to (Simon, 1995).
Other factors that come into play in this decision-making process are time frame and span of the minds of the people who make these decisions (Gabaix, 2013). According to Simon (1995) and Selten (1999), the process of formulating a cognitive decision pertaining to a certain scenario could never be wholesomely objective because these decisions are constrained by the limitation of the rationality of the human mind.
Technically, people make rational decisions basing them upon the context and reach of their knowledge and this forms the theory of bounded rationality (Simon, 1995; Selten, 1999; Gabaix, 2013; Rubinstein, 1998). In this office, Jenny is faced with a number of issues. To relate to how she makes the decision of exposing Romeo, it is important to analyze the information that she is exposed to so that we can understand whether she acts along the lines of bounded rationality. Firstly, let’ s explore her reasoning before bringing in the other opinions of the other team members.
Jenny is a recent graduate having studied project management in college. Now she is tasked with the job of bringing a tendering project to completion, so we can imply she is duly qualified for the job based on her academic background. The time frame for the same is a week and they stand to lose £ 500000 if this is not done in time and done appropriately. She met Romeo at a conference three years ago and she liked him. Her relationship with Romeo has been kept quite professional during this period and she thinks he is a hard worker and a capable hand in the office.
She has also noticed that Romeo is coming to work late and he takes long lunches. She has also overheard the rumours circulating in the office that Romeo could be selling trade secrets to the rival company but she has no evidence. This is the much information she has and her dossier on Romeo is quite thin. Then she overhears him having a conversation over the phone with another company and her suspicions are aroused.
She asks the other team members of their take. The reason she does that is to enable her to increase her avenues of information so that she could break the ties of bound rationality and become objective in her decision.
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