Which decision-making model posits that managers choose options that are satisfactory rather than optimal due to cognitive constraints?

Explanation

• Formulated by Herbert Simon, Bounded Rationality explains that decision-makers operate within cognitive limits, incomplete information, and restricted time.
• Rather than seeking absolute optimization, managers engage in ‘satisficing’—selecting an alternative that meets minimum acceptable criteria.
• Herbert Simon was awarded the Nobel Prize in Economics in 1978 for his contributions to decision-making processes in organizations.