Simon's Model of Organizational Decision-Making

Simon's Model of Organizational Decision-Making describes how organizations make choices in complex situations. It emphasizes three main steps: intelligence gathering, where information is collected; design, where possible solutions are developed; and choice, where the best option is selected. Simon argues that decision-makers often face limitations in information and time, leading them to use “satisficing,” where they choose a good enough solution rather than the perfect one. This model highlights the importance of a structured approach to decision-making, balancing thorough analysis with the practical constraints faced by organizations.