Engineering Board Exam Reviewer · Engineering Management · medium

Herbert Simon's idea that decision makers choose the first satisfactory alternative rather than the optimal one is called:

  1. Satisficing (bounded rationality)
  2. Optimizing
  3. Maximizing
  4. Programmed decision-making

Answer

A. Satisficing (bounded rationality)

Solution

Limited information, time and cognitive capacity bound rationality.

More Engineering Management questions

  1. A mode of thinking in which group members suppress dissent to maintain harmony, leading to poor decisions, is called:
  2. The tendency of people to improve their performance simply because they are being observed is called the:
  3. Fayol's principle that promotes team spirit and unity among employees is:
  4. 'Management by exception' means that managers should:
  5. The principle that a manager should be given authority equal to the responsibility assigned is called:
  6. A line produces 96 units in an 8-hour shift. What is its cycle time?
  7. Making a part requires ₱50,000 of fixed tooling plus ₱20 per unit; buying it costs ₱30 per unit. At what quantity are the two options…
  8. A factory's overhead costs are ₱900,000 per year and it uses 30,000 direct labor hours. What is the overhead rate per direct labor hour?
  9. Workers took 520 actual hours to complete work worth 468 standard hours. What is the labor efficiency?
  10. A part requires 6 minutes of machine time. Annual demand is 50,000 parts, each machine is available 2000 hours per year and operates at…

All Engineering Management Reviewer questions