6-6 The administrative model .Administrative model of decision making: Challenged the classical assumptions that managers have and process all the information As a result, decision making is risky Bounded rationality. There is a large number of alternatives and information is vast so that managers cannot consider it all a Decisions are limited by people's cognitive abilities Incomplete information: most managers do not see all alternatives and decide based on incomplete information. " win/MeGraw-HHill CThe McGraw-Hill Companies, Inc, 2000Irwin/McGraw-Hill ©The McGraw-Hill Companies, Inc., 2000 6-6 The Administrative Model ⚫Administrative Model of decision making: Challenged the classical assumptions that managers have and process all the information. ◼ As a result, decision making is risky. Bounded rationality:There is a large number of alternatives and information is vast so that managers cannot consider it all. ◼ Decisions are limited by people’s cognitive abilities. Incomplete information: most managers do not see all alternatives and decide based on incomplete information