Simon’s Normative Model

Presented by:- Ravindra Singh Rajpurohit

 Normative approach
 Bounded rationality – restricted by a variety of
constraints

 Personal or environmental characteristics

 Eg. Limited capacity of human mind, problem

complexity and uncertainty, amount and
timeliness of information at hand, criticality of
decision and time demands.
 Decision making is characterized
1. Limited information processing

2. The use of judgmental heuristics

3. Satisficing
 Limited information processing
 Limited information

 Manageable amounts of information

 Difficult for managers to identify all possible

alternative solutions
 Judgmental heuristics
 Rules of thumb or shortcuts

 To reduce uncertainty and helps decision

makers

 Knowledge gained from past experience

 Judgmental heuristics
 Evaluate current problems

 Common categories of heuristics

• availability heuristics
• representative heuristic
 Satisficing
 Do not have time, information or ability to
handle complexity

 Solution that meets some minimum

qualification

 Eg. Radio station in car

Thank you