Administrative Behavior (Herbert Simon)

Administrative Behavior, developed by Herbert Simon, is a theory that explains how organizations and managers make decisions. Simon emphasized that decision-makers are limited by available information, time, and cognitive resources—what he called "bounded rationality." Instead of seeking perfect solutions, they settle for satisfactory options that meet their goals. The theory highlights the importance of understanding human limits in processing information and making choices, emphasizing practical decision-making processes within organizations rather than idealized models of perfect rationality.