Irrationality factor is the paradox of supremely rational organizations—that is, bureaucracies— acting in ways that are very irrational in terms of the well-being of the total society. Because bureaucracies are designed for the efficient attainment of goals set by those at the top of the organization and because those individuals often have goals that are antithetical to the goals of society as a whole (say, profit versus welfare), the irrationality factor is very much a part of modern life.
Definition