What is Principle of Rationality?

Different types of the tools and techniques are used in the decision making process, which have been explained in previous posts but besides these techniques, there are some principles which are used widely in the, as explained above making process and these can be summarized as the follows –

1. The Principle of the Bounded Rationality – Our rationality is very widely conditioned by the large number of the factors or the constraints which may include the following –
a. Financial
b. Technical
c. Administrative

The decisions are and should be generally based on the rationality and in such a scenario; the Principle of Rationality plays a very critical role. According to the Principle of Rationality, taking a complete rational decision is very much difficult, in – fact the possibility of this is nil, so the Principle of the Rationality implies that it is not at all possible to achieve any type of the scientific solution and as a result of this it is better in any way to carry on and arrive at the workable decisions which fit in to the Principle of the Bounded Rationality. The workable decision acts as the starting point of a scientific solution, which in turn is the ultimate goal that one thinks to get.

If any case, a scientific decision cannot be taken or cannot be implemented, then the decision would actually be only ideal, hypothetical in the nature but also the decision would be very much impractical in nature.

So in such a scenario, it is very much necessary that the workable solution is worked out while still continuing to work on the development of the scientific solution.

2. The Principle of the Logic and Intuition – The type of the scenario existing today involves the availability of a huge amount of the information and hence in any case, it cannot be ignored while taking any type of the decision. The Principle of the Logic and the Intuition helps in taking the decisions based on their own logic and intuition / hunch. The main aim should be to arrive at a decision based on the data or the information and one very important thing to keep in the mind here is that the due weight age should be given to the data or the intuition.

Now days, the various professional managers tend to take the decisions depending widely on the data, facts and the figures.

The decisions based on the intuitions can be defined as the decisions where the logical explanation is not at possible though the decision makers think that their approach is and would be absolutely the right one.