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Management - Theory Management Theory Term Paper

How is bounded rationality related to decision making?

Bounded rationality is the property of an agent that behaves in a manner nearly optimal to its goals as its resources will allow. Simon suggests that researchers not just look at the surface answers in their research, but look to the reasons why something acts like it does (Simon, p. 50).

Decision-making can benefit by following this rule. If one looks at the basis for a negative attitude that one wants to change, one might be more successful in changing that attitude forever. And if one decides to get rid of an obstacle in a field, one might want to investigate how that obstacle came to be there or whether it has more components than immediately present themselves. If the obstacle in the field is a tree, if one does not dig up the roots, the tree will grow again and remain an obstacle. If it is a rock, one might want to see if it came from a mountainside that will drop other rocks onto the field even after the one rock obstacle has been removed. In the case of deciding about whether to move a person from one position to another, one might want to investigate the person one is moving to see if the person has the basic requirements for the job.

What is a quality circle?

A quality circle is "a group of employees who perform similar duties and meet at periodic intervals, often with management, to discuss work-related issues and to offer suggestions and ideas for improvements, as in production methods or quality control." This a management...

Teamwork becomes a problem-solving method. Those who participate may receive training in problem-solving methods and are encouraged to use them to solve specific or general company problems. When a problem presents itself, the team meets, investigates, analyzes and presents findings to management. They then carry out any actions that have been approved (Gale Group).
The success of quality circles is based on the fact that employees often are familiar with the components of the problem and may better know how to solve problems with the things they work with daily than others who are unfamiliar with them. Success is also partly based on the fact that employees are motivated by participating in solving problems with the things that they know about. To participate in a quality circle lifts the morale of employees. Other benefits for a company are that it helps reduce costs and increases productivity.

References

Gale Group, Inc. (2006). Encyclopedia of Small Business. Retrieved May 31, 2007 at http://www.answers.com/library/Small+Business+Encyclopedia-cid-478801899.

Pounds, Jerry, (15 Aug 2006). The behavior-consequence relationship. Management Issues. Retrieved May 31, 2007 at http://www.management-issues.com/2006/8/15/opinion/the-behavior-consequence-relationship.asp.

Secord, P.F. And Backman, C.W. (1964). Social Psychology. New York, McGraw-Hill.

Simon, H.A. (1957). Models of Man. New York: Wiley.

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References

Gale Group, Inc. (2006). Encyclopedia of Small Business. Retrieved May 31, 2007 at http://www.answers.com/library/Small+Business+Encyclopedia-cid-478801899.

Pounds, Jerry, (15 Aug 2006). The behavior-consequence relationship. Management Issues. Retrieved May 31, 2007 at http://www.management-issues.com/2006/8/15/opinion/the-behavior-consequence-relationship.asp.

Secord, P.F. And Backman, C.W. (1964). Social Psychology. New York, McGraw-Hill.

Simon, H.A. (1957). Models of Man. New York: Wiley.
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