A manager chooses the first acceptable solution because time and information are limited. This decision process illustrates:
Correct answer: A. Bounded rationality
- A. Bounded rationality
- B. Escalation of commitment
- C. Representative bias
- D. Intuitive leadership
Explanation
Bounded rationality means decision makers operate with limited information, time and mental capacity, so they often select a satisfactory option rather than the perfect one. Escalation of commitment instead involves continuing to support a failing decision.
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About Organizational Behaviour
Organizational behaviour examines how individuals and groups act within workplaces and how organisational structures influence that behaviour. It covers personality, perception, motivation, learning, leadership, communication, teamwork, conflict, power, organisational culture and change. It differs from human resource management, which focuses more directly on managing employment processes and policies.
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