Bounded Rationality and Organizational Learning

Today, I want to look at the bounded rationality and organizational learning relationship, and how important it actually is to factor it in when training in a modern atmosphere.

In order to accurately talk about the bounded rationality and organizational learning link, I need to explain first what it is. Well, basically it’s the understanding that all processes of logic, problem solving and action planning can only be conducted based on available and truly known information.

Yeah, it’s obvious, but people overlook this inherent aspect of how things work. And in training, this means that your understanding first of all that measurements of your students’ progress must account for bounded rationality, to prevent unfair metric bias. This is important and can be utterly calamitous if it happens, so keep an eye on this, please.

Another thing to bear in mind is that this can be employed to encourage creativity in employees by working with limited information to make the most viable and safe extrapolations they can. There is always a limit to available information at a given time, even out of training. We can’t know everything. Even with the internet in our pockets, information has a limit when specific things are needed to be known, so at some point, in the field, we must work with bounded rationality to solve problems and make important choices.

So, do not try to obfuscate this fact when it is inherent to training. Point it out. Point out an inherent flaw in training itself as an important obstacle they should strive to be skilled at compensating for in their daily professional life. This is the vaunted thinking outside the box that is so trendy to allude to, when boiled down to its simplest elements.

Basically, this is that ability to think one one’s feet, and to roll with the punches, and all of those other timeless clichés that people throw around. The point is, this is paramount in organizational learning, because it is something to be compensated for in the training and grading model, but also as something to instill as an obstacle for the students to address and hold close as important in the future.

Yeah, it’s kind of obvious now that we think about it, and the bounded rationality and organizational learning relationship becomes apparent. But, we have so often just summarily dismissed this in the past, and it’s been, I think, a driving force behind a lot of inexplicable obstacles we just take as bumps in the road eternal.

However, given a definition by someone more brilliant than I, and I think this can help resolve a lot of things, and help us move forward into the future our technology beckons us into at last.

Kevin Goldberg