Susanne, the CEO of a national IT manufacturer, was approached by Simple Phones, a new company that is marketing a new type of phone, to partner with the company on a project. The results of the partnership are uncertain because the company (Simple Phones) and its technology are new. Susanne is uncertain what to do because she is limited by numerous constraints, such as the uncertainty and complexity of the technology, the management success of Simple Phones, and time (because other companies are interested in the partnership). Susanne is experiencing
A. an ethical dilemma.
B. bounded rationality.
C. groupthink.
D. a bounded dilemma.
E. limited scope.
B. bounded rationality.
The bounded rationality concept suggests that the ability of decision makers to be rational is limited by numerous constraints, such as complexity, time and money, and managers' cognitive capacity, values, skills, habits, and unconscious reflexes. The problems that need solving are often exceedingly complex, beyond a simple understanding.
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