Strategic decision problem

Please write a 350 words essay about this topic. The strategic decision problem, situation or
scenario has to be within healthcare setting.
Discuss a strategic decision problem, situation or scenario in a health care setting where
bounded rationality may be present in the solution to your identified problem.

Strategic decision problem

Discuss a strategic decision problem, situation or scenario in a health care setting where bounded
rationality may be present in the solution to your identified problem.
In a healthcare setting, there are strategic decision problems that health practitioners
encounter. Some of the problems depict bounded rationality in their solution. Bounded
rationality entails making decisions that are within the limits of information and time and
individual has at his/her disposal (Simon, 1991). An example of a scenario in healthcare setting
where bounded rationality is present in problem solution is prescribing treatment for a new strain
of disease.
Strategic decisions are essential for medical practitioners in solving problems. The health
practitioners are required to poses requisite skills and knowledge in solving various problems
(Elbanna & Child, 2007). Most of the health practitioners are trained on various strategies to
solve or approach different scenarios when providing service. Furthermore, are trained on
different disease, their symptoms, disease, and the kind of medicines that are s effective in their
treatment (Tromp & Baltussen, 2012). However, they also encounter different situations that
are out of the box of what they know which then require them to use their skills and decision-
making skills to address such. In a situation where health practitioners diagnose a disease, they
have never encounter or come across in their practice, this situation leaves them unaware of what
to do because they cannot guess the right medication for the disease.

It is therefore, very important for them to make a strategic decision. The decision that
will be made in such scenario is confined to their education skills and the time at their disposal to
provide a way forwards (Thomas, 1984). Various options are present from which they can
choose. One of the options is to refer the case to their senior for direction. This option is
evident of bounded rationality in the sense that, the health practitioner would not provide a
decision to the best treatment and therefore, what they decided is to refer the case in order to
help them reach an amicable solution to handle the situation. Second situation is to conduct
further research using the skill and knowledge they have attained. In conducting the research,
they will also use skills they hold or which they have acquired at their schools or practicing as
Therefore, this scenario is a good illustration of how health professionals may use
bounded rationality in making decisions. Sometimes using bound rationality in decision making,
helps to provide amicable solutions to the problems that health practitioners faces and
sometimes may not be that productive and successful.



Elbanna, S., & Child, J. (2007). Influences on strategic decision effectiveness: Development and
test of an integrative model, Strategic Management Journal, 28 (4):431-453.
Simon, H. (1991). Bounded Rationality and Organizational Learning, Organization
Science 2 (1): 125–134.
Thomas, H. (1984). Strategic Decision Analysis: Applied Decision Analysis and Its Role in the
Strategic Management Process, Strategic Management Journal, 5(2):139-156
Tromp, N., & Baltussen, R. (2012). Mapping of multiple criteria for priority setting of health
interventions: an aid for decision makers, BMC Health Services Research, 12(3):1-7.