March and Simon Developed Three Important Concepts in Their Administrative

question 80

Essay

March and Simon developed three important concepts in their administrative model of decision making. Discuss these three concepts.

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Definitions:

No Recourse

A clause in an agreement that limits the ability of a lender to seek additional compensation from a borrower beyond the collateral securing a loan if the borrower fails to repay.

Subagent

An agent of an agent, or a person who is appointed by an agent to perform tasks that the agent has undertaken to perform for the principal.

Gratuitous Agent

An agent who receives no compensation for his or her services.

Fiduciary Duty

An obligation to act in the best interest of another party, such as a trustee for a beneficiary.