5.5 The Administrative Model

The administrative model of decision making describes how decisions are made, not how they should be made.

There are several characteristics of this model.

Bounded rationality – This term refers to the concept that decision makers are limited by their skills and incomplete information.  They may not have all the facts.  They may not even know what they don’t know.  Hmm.  That doesn’t stop some decision makers.

Satisficing – In this type of decision making, a manager will search for a solution until one is found that meets the minimal requirements.  Note that this does not mean it is the “best” solution but one that works.  There may be better solutions.