Aptness of the process of decision making is justified by the methodological fitness of the decision to the demand of the concerned situation, reliability of the evidence used for decision making, relevance of the decision to context, transparency in the findings and the extent up to which consensus reached within the decision making individuals. In this paper the mixed method of research has been compared with quantitative and qualitative methods of research. Result of this comparison has been used to study the different models of decision making and the most preferred method of research has been described (Baba & HakemZadeh, 2012). The rational model The neoclassical theory of microeconomics is based on the assumption that man is a rational economic agent and is an informed decision-maker. This process shows involves four different steps, intelligence, design, choice and review. Intelligence of an individual or an organization helps them to find the appropriate occasions for decision making. Design of the decision making process allows them to invent new ways and analyze all the probable ways to choose the course of action. It helps in selecting some particular line of action from the available range of choices and review of the choice made helps in judging the outcomes of the decisions made in the past. In the classical model or the model of perfect rationality, numerical values are used to determine the level of utility of each of the alternative options which are then used for the process of decision making or during ‘choice phase’. The alternative choice that provides the maximum amount of utility (subjective level of utility depending on the decision maker) is selected. In business organizations, implementation of the rational model of decision making entails the following assumptions involving the managers in the organization. These assumptions include knowledge of all likely alternatives, awareness of the expected consequences of each of the alternatives, having a predetermined and organized preference set corresponding to all the consequences and finally, having strong computational ability and deep insights to compare these consequences and determine which one of these is the most preferred (Turpin & Marais, 2004). The model of bounded rationality The notion of bounded rationality explains that while individuals make decisions, rationality of their behavior is limited by three important factors; availability of access to information, cognitive precincts of human minds, and time constraint within which the decision has to be made. According to Simon (1979), the leaders in an organization always do not make completely informed choices. In many occasions they make choices on the basis of available information and the insights and forecasting capabilities of the decision maker. Therefore, the choice made by these leaders is not always the optimal choice. Rational behavior by human beings is mainly influenced by two factors; the situation in which the decision has to be made and “the computational capabilities of the actor” (Turpin & Marais, 2004, 147). Study of rationality of human behavior has become easier since the study can be made within these
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The Expediency of Federal Regulations in Eliminating Corporate Financial Fraud Name of of University Date Table of Contents Introduction 3 The rational model 3 The model of bounded rationality 4 The garbage can model 7 Challenges in ethical decision making 8 Expediency of Federal Regulations in Eliminating Corporate Financial Fraud 10 Recommendations 11 Research questions 12 Quantitative Method 12 Mixed method 12 References 14 Introduction There are different theories of decision making presented by different experts…
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