Bounded Rationality - Influence on Decision Making in Project Management Mathur Tanish* *Associate Partner, Wipro Limited Abstract Purpose This research paper explores the concept of bounded rationality & its impact on project management decisions. How project management decisions are influenced by bounds across different phases of project life-cycle? Different decision making models are analyzed as part of this research and bound free model of decision making has been proposed as part of this project. Design/Methodology/Approach About 41 different bounds have been identified from the literature. These bounds have been plotted across different project life-cycle phases. Further sampling has been done on 100 project managers across different industries. Project managers who participated in this exercise were having project management experience of greater than or equal to 5 years. As part of the questionnaire they were asked to identify bounds which they encounter in decision making process. Responses were collected via face-to-face interview (Sekaran, 2003). Proposed decision making model was evaluated as part of the sampling. Findings Project managers were able to recognize & identify bounds with highest positive recognition percentage being 58% & lowest being 38%. More than 50% of the sample population could able to identify 22 bounds. Project managers were asked to use proposed decision making model to counter-balance bounds and they could able to counter-balance bounds with highest counter-balance percentage being 58% and lowest being 43%. Practical Implications It is very important for the project managers to make an optimal decision rather than a satisfying decision. If project managers consider bounds highlighted in the paper & make proper adjustments to the current decision process it would help them in striving towards making optimal decisions. Project managers across different discipline & industries can make use of the proposed decision making model for effective decision making & counterbalancing bounded rationality. Originality/Value 41 bounds have been identified from the literatures & plotted across different phases of the project life-cycle. Project managers would get valuable insight on different bounds which effects/impacts critical decisions during different phases of project life-cycle management. A decision making model has been proposed which is combination of Rational Decision Making + Analytical & Intuitive Approach in consideration with triple constraints. Organizations can strive to adopt & implement this model which is well supplemented by metacognition abilities of an individual project manager. Top Keywords Bounded Rationality, Decision Making, Decision Making Model, Metacognition, Rational Decision Making. Top |