Explain Simon's administrative model of decision making and the concept of bounded rationality

What will be an ideal response?

Simon's administrative model of decision making describes how decisions are actually made by managers and assumes the information available is incomplete and imperfect, a condition that most managers experience in reality. This led to the concept of bounded rationality — the ability of a manager to be perfectly rational is limited by factors such as cognitive capacity and time constraints. A decision maker's perceptions about the relative importance of various aspects of data may cause him or her to overlook or ignore some important information. The human memory can retain and process only a limited amount of information at one time. Consequently, decision makers apply heuristics, or decision rules, that quickly eliminate alternatives. As a result, managers do not assess every potential alternative. Instead, by using the heuristic known as satisficing, a manager seeks out the first decision alternative that appears to be satisfactory.