MGHB02H3 Chapter 11: Chapter_11
Document Summary
Program- a standardized way of solving a problem when dealing with well-structured problems o. Programs are only as good as the decision making process that led to the adoption of the program in the first place: cons: decision program si has tendency to persist even when problem conditions change. Seen in ineffective hiring: filling out forms o: ill-structured problems. Perfect rationality- a decision strategy that is completely informed, perfectly logical, and oriented toward economic gain: while useful for theoretical purposes, these characteristics do not exist in real decision makers. According to herbert simon, administrators use bounded rationality rather than perfect rationality: bounded rationality- a decision strategy that relies on limited info and that reflects time constraints and political considerations. While they try to act rationally, they are limited in their capacity to acquire and process information, and time constraints and political considerations also act as bounds to rationality. Framing and cognitive biases illustrate the operation of bounded rationality. o o.
