The Organizational Process of Decision-Making

1688 Words Feb 17th, 2018 7 Pages
INTRODUCTION
High reliability organizations (HRO) are organizations that succeeded in reducing the number of accidents and that often work in a complex environment full of risk factors. Typical examples of HRO are naval or aircraft carriers, nuclear-power generation plants, space shuttles and air traffic control system, occupations where fails and accidents are predictable because of their complexity and risks. A recurring theme in HRO literature is decision-making, as the consistent high quality of this organizational process in uncertain situations differentiates HRO from other organizations: In other words, constantly making good decision results in high quality and reliable operations.
Herbert Simon, who was one of the first authors to shift the attention from organizations as rational machines to organizations as arenas in which complex organizational processes occur, introduced the concept of bounded rationality (Simon, 1955). This is the idea that rationality, and consequentially decision-making, is limited by the information the individual or the organization have, along with the cognitive limitation of their mind and the finite amount of time they have to make the decision. Because of this lack of resources, individuals and organizations apply their rationality after having simplified the choices available, reaching the most satisfying solution, instead of the optimal one. The complexity of organizational decisions is implied in the fact that they involve many…

More about The Organizational Process of Decision-Making