Herbert Simon Noted That Managers Generally Fail to Make Rational

question 71

Multiple Choice

Herbert Simon noted that managers generally fail to make rational decisions because they are limited by their own values,skills,habits,and unconscious reflexes as well as by incomplete information.What name did Simon give this phenomenon?

• A) Decision framing
• B) Satisficing
• C) Escalation of commitment
• D) Innovation
• E) Bounded rationality

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Definitions:

Nonprogrammed Decisions

Decisions that are made in response to unique, non-routine, and unpredictable situations.

Cavanagh's Criteria Questions

A set of questions developed to assist in ethical decision-making by evaluating the legality, consistency with company values, and the likely impact of a decision on stakeholders.

Ethics

The principles and moral values that govern the behaviors and decision-making of individuals and organizations.

Decision-Making

The method of selecting options through recognizing a decision, collecting data, and evaluating different solutions.