Bounded Rationality Decision Making

Bounded rationality in organizational decision-making refers to the idea that while individuals strive to make informed choices, their ability is limited by factors such as time, information availability, and cognitive capacity. Instead of seeking the perfect solution, decision-makers often settle for a satisfactory one that meets their needs within these constraints. This approach acknowledges that humans cannot process every piece of data or foresee all outcomes, leading to more practical and timely decisions in complex organizational environments, even if they are not the absolute best.