MHR 405 Chapter 7: MHR 405 //Chapter 7// readings for week 4

• School: Ryerson University
• Department: Human Resources
• Course: MHR 405
• Professor: Frank Miller

Document Summary

Decision making: the process of making choices among alternatives with the intention of moving towards some state of affairs. Rational choice paradigm: the view in decision making that people should - and typically do - use logic and all available information to choose the alternative with the highest value. Subjective expected utility: the probability (expectancy) of satisfaction (utility) resulting from choosing a speci c alternative in a decision. People are not // cannot be perfectly rational. Bounded rationality: the view that people are bounded in their decision making capabilities, including access to limited information, limited info processing, and tendency towards satisfying rather than maximizing when making choices. Rational choice paradigms assume that goals are clear, when in reality they are oftentimes ambiguous. Rcp assumes that humans are able to process all alternatives and consequences when in reality , we don"t have that capacity.