Saturday, September 12, 2009

CRM and EFM Systems Compenstae for Bounded Rationality

EFM and CRM support good solid decision making in an unexpected way also. Psychologists and management theorists assert that bounded rationality confines our decision making (see Weick, 1979, p. 20 or Simon, 1960, pp 80-84). Bounded rationality means that all of us have perceptual and information processing limits. We may always intend to act fully rational but usually we act on easy to get to knowledge, use undemanding rules to search for a conclusion, and take shortcuts whenever possible.

EFM and CRM can extend the boundaries of our decision making through easy access to more and better information. In addition, they can impose rules on our account handling so we can't always take undemanding short-cuts. EFM and CRM define a process out of a chaotic void. A process can be changed and improved. Chaos remains chaos. Transparency demands that I reveal my profession is IT, one biased to processes.

Simon, H.A. (1960). Administrative Behavior: A Study of Decision-Making Processes in Administrative Organization. Macmillan.

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