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Herbert Simon's Contribution Field of Organizational Theory


This is because their main aim is to maximize the utility of a product through analyzing economic factors that would maximize on utility. The decision they reach at after logically analyzing these factors is a perfectly rational decision that would aid the organization to move into a direction of certainty of the future. The perfect economists theorists contend that the decision reached by any agent offered the same factors would arrive at the same outcome after analyzing them. It is for this reason that the economic decisions are perfectly rational, (Greener, T. 2010). .
             Herbert offers a complete antithesis of this theory. He argues that it is never possible to arrive at perfect rationality because the mind is clouded by many issues that also cloud the end result. He argued that economic answers as suggested by the perfect rationalists assume that the premises upon which the conclusion is reached is itself water tight as to be able to provide a watertight conclusion. Herbert argues that it is possible for an administrator to reach a rational decision through invalid premises. Take for instance an administrator offered major premise that women shoes are more expensive than men's and a minor one that more women buy shoes than men. Any economic manager would then argue that it is more profitable and economically viable to produce ladies shoes. Herbert argues that it is absolutely important for the manager to look at these premises and verify them empirically through surveys and exploration of other alternatives. Supposing after empirically verifying the variables one notices that one of them is not true. Any rational manager would be forced to make a different decision based on the prevailing new information even though this decision is not perfectly rational because there could be other factors that could have been ignored. The 'perfectly rational' administrator would go ahead to draw a conclusion through the premises offered which would be a major pitfall.


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