Elisa, a manager at Thornton Consulting, recently noticed that turnover is particularly high in one of the production units. Elisa assumes that the turnover is caused by low wages, so she immediately increases the salaries of all employees in the unit. Elisa's actions have most likely been affected by ________.

Question

Quizplus · Accepted Answer

Elisa's actions are an example of bounded rationality, where decision-making is limited by the information available, cognitive limitations, and time constraints. She assumes low wages are the cause without exploring other potential factors, leading to a quick, simplified decision.

Elisa, a Manager at Thornton Consulting, Recently Noticed That Turnover