Bounded Rationality and the Implications for HRD

Abstract

The problem and the solution. Initiatives intended to bring about positive organizational change and improvement often fail to achieve their intended goals. Although hindsight can be used to generate a list of reasons why a program failed, these reasons tend to be symptomatic of the real problem. The examples presented in this article are representative of the type of program and the nature of the decision making that HRD (human resource development) professionals could be involved in or responsible for. To truly be strategic within the organization, HRD professionals need to take a leadership role in anticipating and preventing program failures. This means that HRD professionals need to understand and be aware of the implications of bounded rationality in decision making.