Herbert Simon's "Administrative Behavior" argues that administrative decision-making can be understood by analyzing the "bounded rationality" of individuals within organizations. This concept posits that decision-makers operate with limited information, cognitive abilities, and time, leading them to select satisfactory rather than optimal solutions. The book examines how organizational structures, rules, and communication channels influence these decision-making processes.
The updated edition features commentaries on new aspects of administrative behavior, building upon the original work. Readers will learn how to dissect the mechanisms that shape choices within an administrative context, understand the limits on individual and organizational effectiveness, and recognize the practical implications of cognitive constraints on management and policy.
Key concepts
- Bounded Rationality — Decision-makers' choices are limited by their cognitive capacities, information access, and available time.
- Satisficing — The process of selecting the first solution that meets minimal criteria, rather than searching for the absolute best option.
- Administrative Decision-Making — The focus on the psychological and organizational factors influencing choices within formal organizations.