1. 1 The Irrationality of Action and Action Rationality of: Decisions, Ideologies and Organizations By: Nils Brunsson Book 1, Chapter 6 Section 2: Understanding Decision Making

2. 2 The decision-making perspective and irrationality A decision is a choice between at least 2 alternatives. Decision making was explained by economists, political researchers as well as, psychologists and sociologists. Some individuals decide and others carry out the decisions. Researchers elaborated in the direction of rationality while other evidence shows that the process does not comply with rationality specially in strategic major issues.

3. 3 Why people are sometimes irrational in decision making a) People are not clever enough to behave rationally. Therefore decision makers should be carefully selected. b) Irrationality is inherited in human beings which can not be changed by training c) Decision makers don ’ t have enough information on the many variables involved. Therefore, information systems may help to improve the process beside caring about objectives and alternative comparison.

4. 4 Why people are sometimes irrational in decision making … (continuo) An action perspective to explain the process is more acceptable. Since leaders don ’ t only take decisions but also act and induce others to act on them. Since managers act while making decisions rationality of decisions take in consideration practical internal and external norms.

5. 5 Decisions as initiators of actions Actions are often preceded by group activities which they call decision making steps. Starting with objectives and evaluation to selection of actions. This make the process to have 3 aspects: a) Cognitive: e.g. expectations that certain actions will take place and responsibilities will follow

6. 6 Decisions as initiators of actions … (continuo) b) Motivational: for decisions to become actions motivations should exist in order to overcome obstacles and enhance commitment. c) Committal: commitment is needed wherever a great number of people are involved

7. 7 Irrationality as a base of organizational actions 1. Searching for alternatives: The rational model assumes evaluation of all possible alternatives. Reality considers a minimum members normally 2 and most likely one. This is since many alternative evoke uncertainty and consequently reduce motivation and commitment. Commitment is more active when acceptable alternative is endorsed and unacceptable ones are rejected.

8. 8 Irrationality as a base of organizational actions … (continuo) 2. Estimating Consequences: The rational model assumes evaluating positive and negative consequences of alternatives. But this evokes uncertainty and disagreement among decision makers. Reality goes in the direction of looking for positive consequences to support an acceptable alternative and suppress negative consequences. And this search enhances commitment and motivation.

9. 9 Irrationality as a base of organizational actions … (continuo) 3. Evaluating Alternatives: The rational model assumes that alternatives are evaluated against objectives. But reality this creates inconsistency in defining objectives among decision makers and then criteria and assessment will be difficult and the data needed could be impossible to find. Alternatively, is to start from consequences to invent objectives. Then alternative objectives are used as argument to support the chosen alternative rather than criteria to evaluate it. 4. Choosing: It is not a choice of a specific alternative. It is also a commitment for specific action

10. 10 Irrationality as a base of organizational actions … (continuo) 5. Making Rational Use of Irrationality Decision irrationality can be justified by the valuable motivational and commitment it initiates. This was obvious in the case of the “ Bay of Pigs ”. Rationality is applicable whenever commitment and motivation are not that required. This happens in short term less complicated decisions. Therefore, since important decisions need motivation and commitment it will be difficult to change directions once actions proved to be wrong.

11. 11 Conclusion Rational decision create irrational procedures from an action point of view. They should be avoided in order for an action to be taken.