The document discusses several limitations that can impact rational decision making. It notes that managers may focus on finding the right answer rather than clearly defining the problem. Insufficient knowledge about a problem or its alternatives can also limit rational decisions. Time pressures may lead to hasty decisions without full rational consideration. Environmental factors assumed when making a decision could change, undermining the rationality of the choice. Other limitations include the need for compromise, misjudging people's values, poor communication, uncertainty, and an inability to properly analyze available knowledge and human behavior.

1. Presentation by
Management study online (MSO)

2. Ascertaining the Problems:
 According to Peter Drucker Point of view "The most common
source of mistakes in the management decisions is the
emphasis on finding the right answers rather than the right
question's." The main task is to define the actual problem very
clearly. The management may find out the problem as the
“quality of the product is poor". But actually quality of the
product is too better as compare with competitors product. the
real problem is maybe somewhere else. For example:- The
Problem may be the Poor quality of the product and you
thinking to improving the quality of the advertising.

3. Insufficient Knowledge:
 For relevant decision, decision maker need total information
about problem and its alternative solution for the decision
making, if complete knowledge is not study by the decision
maker. Decision maker fail to make a rational decision so, An
important function of a manager/decision maker is to determine
the dividing line is reached between insufficient knowledge
and the enough information to make a decision.

4. Not Enough Time to be Rational:
 In Any business organization a decision maker in under
pressure to make decision, If time is limited, He/she may make
hasty decision. Which may not satisfy the test of rationality of
decision.

5. The Environment may not cooperate
 Sometimes, the timing of the decision is such that one is forced
to make decision but the environment is not conductive for it.
The decision may fail to test of rationality as the environmental
factors considered in the decision-making turn out to be
untrue.
For Example:- In the Product Pricing, the factors of oil and
petroleum product price is considered as stable. but the post-
decision environment proves the consideration to be wrong.

6. Other Limitations:
 Other Limitation are the need for a compromise among the
different positions, Misjudging the monitor and values of
people, Poor communications, Misappraisal of uncertainties
and risks, and inability to handle the available knowledge and
human behavior.

7. All Content Are Written by MSO Team
http://www.managementstudyonline.in/
You are free to use these Presentations for your
personal and business presentations.
Don’t do this.
 Resell or distribute these Presentations.
 Put these Presentations. on a website for download.
This includes uploading them onto file sharing
networks like Slideshare, Myspace, Facebook, bit
torrent etc
 Pass off any of our created content as your own work