Rational thinking in Business Essay Example | Topics and Well Written Essays - 500 words

Rational thinking in Business - Essay Example No business can exist long in the market using irrational methods or thoughts. This paper explains the importance of rational thinking in business. â€Å"A thought, belief or attitude is rational to the extent that it satisfies five criteria: It is consistent with the facts or the objective reality; It helps preserve ones life and health; It helps one achieve ones short and long-term goals; It helps one avoid unwanted conflict; It helps one feel the way one wants to feel† (Alexander) In business objectives are important. Every action in a business setup is done for obtaining certain business objectives. These objectives are achievable only if the actions were supported with facts and logics. For example it is not possible for a construction business group to invest heavily at present because of the economic recession going on. The fact that people are reluctant nowadays in spending more on real estate sector is the rational or fact behind such thoughts. On the other hand the same business group can think about heavy investment once they see evidences of improvement in economic situations for achieving their long term goa ls. â€Å"Healthy rational thinking requires; an adequate attention span, patience and the ability to focus, to observe, interpret, perceive and consequently develop logic† (Yahya). In business, the ability to observe and focus is important in perceiving and interpreting the problems correctly. The correct interpretation of the problem is important in finding out correct solutions. For example, a business executive who wrongly interpret the market, based on rumours and opinions of others may fail to take sound and healthy decisions in favour of the organization. Rational thinking is the most common problem solving methods in business. For example in a business organization, the manager has to judge the performances of the workers based on their capacities or abilities. A rationally thinking manager will take actions against an