Bounded rationality, uncertainty, and complexity as decision-making contexts: A case of one university in Russia

Abstract

Decision making in universities cannot be implemented in an entirely rational mode because of the effects of the bounded rationality, uncertainty, and complexity inherent to the social and organisational contexts. An empirical case study related to launching a new postgraduate educational programme as the in-depth investigation of the chain of related decisions in one university in Russia was used to explain the features of the decision-making process. Data was gathered through 1) five in-depth interviews with the key stakeholders; 2) observations of the situation stages and interviews with other stakeholders; 3) analysis of governmental documents and standards; and 4) analyses of university policies and local documents. Case analysis showed the unclear authority of the institutions involved, vague rules, exclusion of the important stakeholders from the decision process, a lack of experience and expertise, and unclear procedures. The case was interpreted through the lenses of the organized anarchy theory; power and authority perspective; risk avoidance perspective; and bounded rationality perspective. As a discussion and conclusion, it was shown that some strategies can reduce the level of uncertainty and increase the quality of the decisions made, such as decision analysis perspective, decomposition perspective, participation perspective, information perspective, and groupthink avoidance perspective. Also, the role of political negotiations, information provision, additional actions and meetings organization, systematization of the complicated issues, and organizational learning were considered. All these support more mature solutions in the university context.