Herbert A. Simon propounded the bounded rationality model to explain why limits exist to rational decision within decision – making environment. He defined decision – making as “the alternative courses of action”. He states that, decision – making pervades the entire organization that is decisions are made at all level of organizations. Hence, he said an organization as structure of decision – makers. According to him, decision is an all – embracing activity subsuming all the administrative functions described as ‘POCCC’ by Fayol and ‘POSDCORB’ by Gullick.

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