Organizational Theory Journal Analysis>SATISFICING (LATEST) 2020-2021

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Satisficing Definition The word satisficing combines the words satisfying and suffice. It is a decision making strategy that focuses on getting an outcome that is satisfactory rather than just bein... g optimal. The alternative choices are evaluated and the decision is made on basis of the choice that meets an acceptable threshold. The main aim is to pick the solution that prevents incurring unnecessary costs on time, energy and resources (Simon, 1997) Summary Herbert A. Simon developed the satisficing decision making process. He tries to elaborate through this theory the behavior of consumers as they make decisions in which the optimal solution cannot be determined or found. In a speech that he made when receiving his Nobel Prize in Economics, he elaborates that; when making decisions, for an individual to achieve satisfice, they must find an optimal solution which would occur if the world was simple or they can achieve a satisfactory solution in this realist world. [Show More]

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