Your business guide

  Bounded rationality Making rational decisions is the process of choosing the best alternative that gives the maximum value. A rational decision maker would understand all the alternatives available, the steps that should be followed to attain the goal.  Bounded rationality is the decision-making approach which says that individuals have limited cognitive ability, resource, and time to make a restricted amount of information on which they try to make rational choices in a complexed organizational environment . Bounded rationality is one of the tools which Herbert A. Simon used to explain the administrative model of decision making. This model portrays how managers face complexed, non-programmed situations by making spontaneous decisions, it also helps to understand human and natural limits on rational decisions of a manager. Bounded rationality is explained as the logical way of describing how rational decisions are made by managers as rational decisions are made with less...

Manager A manager is the person who effectively handles the management process of planning,  organizing, leading, and controlling by using the scarce resources of an organization effectively in an unpredictable business environment.  Managers should have the ability to both work with people, and to make people work efficiently  and effectively. He should also be able to lead his subordinates, to provide clear direction to the organization. To become a great manager, one should be able to obtain sharp skills through learning, training, and experience. These skills should help the manager focus on the managerial process. The skills a manager should hold includes leadership, good communicational skills, and team building.  Managers have the responsibility of creating high quality customer service, employee  satisfaction among his subordinates in order to continuously work towards achieving the  organizational goals. Managers can be classified in 3 categories b...