Observation Review Essay Example | Topics and Well Written Essays - 1500 words

Observation Review - Essay Example The decision made by Christopher Bale, who was the chief site engineer at a construction firm, where I have worked can be cited as exemplifying the concept of bounded rationality. The work contains my personal observation and experience regarding the decision making process of the organization. In the case, Mr. Bale had decided to increase the working hours of the construction workers to two hours in the morning shift. The normal routine shift usually started from 8 a.m. in the morning and continued till 5pm in the evening. The company had entered into a deal according to which it had to construct a multistoried building. Initially the contract was to be completed in a two years time. But later the contract had to be renewed and its duration was lessened by six months. This put pressure on the executives to complete the work fast. Therefore, the chief site engineer, Mr. Bale, decided to increase the working hours and, correspondingly, compensation of the employees. The decision was n ot favored by the employees as they felt their opinion was not considered. Secondly, a few of the employees who were more than 50 year old felt that it would affect their health if they were made to work beyond the routine hours. Assessment of the Example Using Simon’s Bounded Rationality Theory In the example mentioned above, Bale thought it would be feasible for the company to increase the working hours of the site workers so as to complete the work on time. This is a clear example of bounded rationality as the site engineer had taken the decision after examining the available choices only. He did not have knowledge about the resentment, if any, that would be prevailing among the workers due to the increase in the number of work hours. He was also unaware of the health conditions of the senior employees. The decision taken by Bale can be considered to be an example of decision making based on normative affective factors (Etzioni, 1988). It is more of a normative model becau se Bale made the decision assuming he had all the necessary information needed to make the choice. Thus it was more of a descriptive form of decision making instead of a prescriptive form (Holloway, 2003). This descriptive form of making decisions was termed as bounded rationality by Simon. Simon theorized that human beings often settle for solutions that are mostly satisfying in nature, which means that such solutions, though they are sufficient to cope with the situation, are not the best solutions (Turban, 2008). There are many factors that can affect a decision. These can be psychological, sociological, political, risk avoidance motives, etc. These can influence the choice of the decision made considerably. In the context of the case, it can be understood that the company executives were put under tremendous strain to complete the construction work six months ahead of the contracted time initially stipulated. They had to come up with a solution so as to complete the work fast as their commitment and their reputation were at stake. In such a situation it is possible that when the decisions were made, not all the crucial factors were considered. Two such factors were the workers’ opinions on the decision to increase work hours and the health condition of some workers. The chief site engineer had suggested the idea to