When managers make decisions that are rational but limited by their ability to process the information, they are following the concept of ________.
A) cognitive decision making
B) bounded rationality
C) escalation of commitment
D) intuitive decision making

Question

Quizplus · Accepted Answer

Bounded rationality is the concept that managers make decisions that are rational but limited by their ability to process the information. This means that managers are unable to consider all possible alternatives, and they tend to choose the first option that meets their goals or objectives. The concept of bounded rationality recognizes that managers have cognitive limitations, time constraints, and incomplete information, which can lead to suboptimal decisions. Therefore, managers need to use heuristics and shortcuts to simplify decision making and reduce complexity.

When Managers Make Decisions That Are Rational but Limited by Their