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CMA Foundation · Fundamentals of Business Economics and Management · Decision-making - Types and Process

Which of the following is a limitation arising from the organisation's environment rather than from the individual decision maker's own perception?

Shortage of reliable information within the available time is the situational limitation. It comes from the organisation's circumstances and constraints, not from the decision maker's psychology. Selective perception, risk aversion and emotional attachment are all personal, behavioural barriers rooted in the individual manager.

  1. AShortage of reliable information within the available timeCorrect
  2. BSelective perception of data
  3. CPersonal risk aversion
  4. DEmotional attachment to a favoured option

Explanation

Lack of timely, reliable information and time constraints are external or situational limits on decision quality. Selective perception, risk aversion and emotional attachment all originate in the individual's own psychology, so they are personal barriers.

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