An implication of the bounded rationality models of management is that:
A) all decision making processes are inherently perfect as human beings are rational beings.
B) all decision making processes essentially involves dealing with a resource of unlimited reasoning power.
C) the proficiency of a decision process increases exponentially with increase in information that is used for that process.
D) the more information available to be included into the decision process,the less efficient that process will be.

Question

Quizplus · Accepted Answer

Bounded rationality models of management suggest that human beings have limited cognitive capacity and are unable to process all information available to them, which results in less than perfect decision making. Therefore, the more information available for a decision process, the less efficient it becomes. Hence, option D is the correct option. Options A, B and C are incorrect because they do not align with the concept of bounded rationality.

An Implication of the Bounded Rationality Models of Management Is