Theory of Administrative Behavior

The Theory of Administrative Behavior, developed by Herbert Simon, explains how organizations and their members make decisions. It suggests that decision-makers aim for satisfactory rather than perfect solutions because of limited time and information. People use routines and rules to simplify complex situations, balancing their goals with available resources. This theory emphasizes that effective management involves understanding human behavior, recognizing constraints, and designing processes that help individuals make good decisions within their limitations. It highlights that organizations are practical systems where decision-making is rooted in real-world constraints and human cognition.