Case Interview Prep

Category - Management

Which decision making model theorizes that managers take shortcuts in the decision making process and opt for the first decision which meets their minimum criteria?
  1. Classical approach
  2. Administrative model
  3. Political model
  4. Risk model
Explanation
Answer: B - The administrative model of decision making is more grounded in reality than the classical approach and assumes that managers will not search for the optimal solution to an issue, but will instead settle for the first available solution that meets their needs.

Key Takeaway: When reviewing the classical approach to decision making, Herbert Simon was cynical and believed that decision makers were less rational than believed. He created the administrative model based on the belief that decision makers will do the minimum amount of work to achieve the desired outcome (and not continue searching for the optimal outcome).
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