Personal Decision Making

Personal Decision Making
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Personal Decision Making
The main reason for the existence of a business is to make a profit. However, organizational leaders often face dilemmas when they have to make decisions that may risk the survival of their firms and their progress. One of the challenges facing businesses has been the ability to make an informed decision regarding the sale of a business or a merger. Companies are often faced with tough situations when they have to make decisions that have an impact on their existence and profitability. On this day, I was a part of a committee that had to evaluate the need to form a merger or consider the sale of a business.
When a company is sold, it loses its existence. It also loses its chance of making a profit. There are instances when ventures are sold to benefit the owners when the sale plan provides it a feasible mechanism to start afresh. The owners may also resolve to purchase shares in the said company as a strategy to ensure that they continue to derive benefits from the venture. However, merges provide a plan to ensure business continuity although under different structures. The decision-making process of selling and undertaking a company through a merger process should aim at enhancing the choices that the firm has (Gigerenzer, 2010). It should foster to support the existing stakeholders and ensure that the interests of the majority are taken into account. Thus, the team settled for a merger process, which aimed at ensuring that the existing employees are absorbed and that the vision of the company founders is preserved.

When forming companies, leaders have a vision that they wish to attain for their firms. Thus, undertaking a decision that seeks to ensure inclusivity is an ideal mechanism to restore the confidence of all stakeholders in the business.
Bounded Rationality
Herbert Simon’s theory is based on the concept that people are not inclined to gather all the relevant information necessary to make a decision. Apparently, individuals depend on different information sources to make their decisions. A majority of the firms understand the concepts of the bounded rationality theory. Advertisements play influential roles in enhancing the growth of organizational profits. Some sales demand that businesses give accurate information regarding the raw materials that they create. Marketing companies understand the importance of tailoring their messages to suit their strategies (Slocum & Hellriegel, 2011). Thus, the company was prompted to introduce news informing its clients of any impacts of the products that it made on their body.
Bounded rationality provides a unique phenomenon upon which relevant information regarding products ought to be mentioned. Thus, the concept of bounded rationality ensures that companies take responsibility for their actions (Secchi, 2011). Despite their interests to grow sales, the risks of information crises should not emerge thus diminishing the trust that individuals have in the company. Concepts of bounded rationality ensure that businesses are truthful in their marketing (Zionts, 2012). Despite the impacts of the message on the potential customers, it is essential to ensure that consumers are aware of the effects of the product on their lives.
Accordingly, decision-making processes have a significant impact on the way organizations perform. Truthful firms demonstrate ethical practice by adequately addressing the concerns of their customers. Companies have a responsibility to offer accurate information to their clients and the adverse effects of their products. As a result, bounded rationality concepts foster to ensure that firms are truthful and responsible for their actions.

References
Gigerenzer, G. (2010). Moral satisficing: Rethinking moral behavior as bounded rationality. Topics in cognitive science, 2(3), 528-554.
Secchi, D. (2011). Bounded Rationality. In Extendable Rationality (pp. 19-25). Springer, New York, NY.
Slocum, J., W. & Hellriegel, D. (2011). Principles of Organizational Behavior. South Western
Zionts, S. (2012, December). Multiple Crtterta Decision Making”. In Multiple Criteria Decision Making Theory and Application: Proceedings of the Third Conference Hagen/Königswinter, West Germany, August 20–24, 1979 (Vol. 177, p. 150). Springer Science & Business Media.