This topic contains a solution. Click here to go to the answer

Author Question: Explain Simon's administrative model of decision making and the concept of bounded rationality. ... (Read 115 times)

CharlieWard

  • Hero Member
  • *****
  • Posts: 578
Explain Simon's administrative model of decision making and the concept of bounded rationality.
 
  What will be an ideal response?

Question 2

For a strategy to be successful, a firm must be flexible and make changes to the plan based on experience. Strategic management requires adaptation to changing conditions.
 
  Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

cdmart10

  • Sr. Member
  • ****
  • Posts: 332
Answer to Question 1

Simon's administrative model of decision making describes how decisions are actually made by managers and assumes the information available is incomplete and imperfect, a condition that most managers experience in reality. This led to the concept of bounded rationality  the ability of a manager to be perfectly rational is limited by factors such as cognitive capacity and time constraints. A decision maker's perceptions about the relative importance of various aspects of data may cause him or her to overlook or ignore some important information. The human memory can retain and process only a limited amount of information at one time. Consequently, decision makers apply heuristics, or decision rules, that quickly eliminate alternatives. As a result, managers do not assess every potential alternative. Instead, by using the heuristic known as satisficing, a manager seeks out the first decision alternative that appears to be satisfactory.

Answer to Question 2

TRUE




CharlieWard

  • Member
  • Posts: 578
Reply 2 on: Jul 6, 2018
Wow, this really help


jamesnevil303

  • Member
  • Posts: 337
Reply 3 on: Yesterday
Gracias!

 

Did you know?

It is widely believed that giving a daily oral dose of aspirin to heart attack patients improves their chances of survival because the aspirin blocks the formation of new blood clots.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

According to the National Institute of Environmental Health Sciences, lung disease is the third leading killer in the United States, responsible for one in seven deaths. It is the leading cause of death among infants under the age of one year.

Did you know?

In the United States, there is a birth every 8 seconds, according to the U.S. Census Bureau's Population Clock.

Did you know?

When taking monoamine oxidase inhibitors, people should avoid a variety of foods, which include alcoholic beverages, bean curd, broad (fava) bean pods, cheese, fish, ginseng, protein extracts, meat, sauerkraut, shrimp paste, soups, and yeast.

For a complete list of videos, visit our video library