Lisa, a supervisor in a manufacturing firm, observes that her team members are always late. This annoys her so much that she wants to fire everyone in her team. However, she knows that this choice will be demoralizing. She rejects this alternative realizing that this will create a sudden need for hiring and training and probably will not impress her manager. Then, she remembers that she gave "timeliness awards" last year, but that did not stop the tardiness of her team members, so she rejects that alternative, as well. Finally, she recollects reading an article that recommends spelling out the consequences of tardiness and then letting the employees experience those consequences. She decides to try that approach. This is an example of the human compromise known as ________.
A) simplicity
B) personal perspective
C) bounded rationality
D) stereotyping

Question

Quizplus · Accepted Answer

This scenario depicts bounded rationality, which is the process of decision-making where individuals make a decision based on limited information and cognitive ability. Lisa is limited in her options and resorting to a solution that may not be ideal but seems to be the best option. She has rejected the extreme option of firing her team, which would have had negative consequences, and is now trying a solution that may be effective.

Lisa, a Supervisor in a Manufacturing Firm, Observes That Her