Simon is a behaviourist
Simon developed 3 models of decision making -
- Social man who makes absolutely irrational decisions
- Economic man who makes absolutely rational decisions
- Administrative man who makes boundedly rational decisions
Human decisions in the organisations are less than logical
Several factors operates in the bounded rationality –
- organisational rules,
- organisational environment,
- irrational thinking based on hunch,
- group think,
- emotions,
- limited capacity of the brain to analyse,
- status quo orientation,
- individual biases,
- limited availability of information,
- preference for safety,
- preference for quick results,
- Beliefs.
This bounded rationality is universal
However Chris Argyris equates Simon as a classical thinker for over emphasizing the analysis of rationality and ignoring human behaviour in the organisations.
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