Final answer:
Managers make decisions incorporating rationality, intuition, and commitment, often influenced by human behavior aspects such as heuristics and emotions. While traditional models favor rational decision-making, real-world scenarios acknowledge the complexity and variety of factors that actually drive managerial decisions.
Step-by-step explanation:
Managers make most decisions based on a combination of rationality, commitment, and intuition. While traditional economic models presume rationality, wherein individuals take all available information to make informed and consistent decisions that serve their best interest, human behavior is often less predictable. Economic professors often highlight this so-called irrational behavior to their students to demonstrate how economics can help to become more rational.
However, in practice, managers also utilize heuristics as cognitive shortcuts to simplify complex decision-making processes, balance altruistic behavior with self-interest, and may display a propensity for noncognitive decision-making that is influenced by emotions or societal norms.
In politics, for instance, it is useful to assume that political actors behave rationally and strategically to maximize their goals, but the reality is that voters and politicians alike may rely on heuristics and other shortcuts that do not always align with rational choice theory. Nevertheless, understanding these aspects of human behavior is crucial for navigating the complexities of management and political decision-making effectively.