Herbert Simon Quotes

Administration is not unlike play-acting. The task of the good actor is to know and play his role, although different roles may differ greatly in content. The effectiveness of the performance will depend on the effectiveness of the play and the effectiveness with which it is played. The effectiveness of the administrative process will vary with the effectiveness of the organization and the effectiveness with which its members play their parts.

In these two essays [the papers of 1955 and 1956] the focus is upon ways of simplifying the choice problem to bring it within the power of human computation... The key to the simplification of the choice process in both cases is the replacement of the goal of maximizing with the goal of satisficing, of finding a course of action that is ‘good enough’. I have tried, in these two essays, to show why this substitution is an essential step in the application of the principle of bounded rationality.

The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world — or even for a reasonable approximation to such objective rationality.

We will likely also find that the nature of the problem to be solved will be a principal determinant of the mix. With our growing understanding of the organization of judgmental and intuitive processes, of the specific knowledge that of the specific knowledge that is required to perform particular judgmental tasks, and of the cues that evoke such knowledge in situations in which it is relevant, we have a powerful new tool for improving expert judgment. We can specify the knowledge and the recognition capabilities that experts in a domain need to acquire, and use these specifications for designing appropriate learning procedures.

In order to survive, the organization must have an objective that appeals to its customers, so that they will make the contributions necessary to sustain it. Hence, organization objectives are constantly adapted to conform to the changing values of customers, or to secure new groups of customers in place of customers who have dropped away. The organization may also undertake special activities to induce acceptance of its objectives by customers - advertising, missionary work, and propaganda of all sorts.

The behaviour of individuals is the tool with which the organisation achieves its targets.

Organizations and institutions provide the general stimuli and attention-directors that channelize the behaviors of the members of the group, and that provide those members with the intermediate objectives that stimulate action.

Organizations and institutions permit stable expectations to be formed by each member of the group as to the behavior of the other members under specified conditions.

Roughly speaking, rationality is concerned with the selection of preferred behavior alternatives in terms of some system of values, whereby the consequences of behavior can be evaluated.

# Rationality requires a choice among all possible alternative behaviors. In actual behavior, only a very few of all these possible alternatives come to mind.

#Since these questions lie in the future, imagination must supply the lack of experienced feeling in attaching value to them. But values can be only imperfectly anticipated.

# Rationality requires a complete knowledge and anticipation of the consequences that will follow on each choice. In fact, knowledge of consequences is always fragmentary

It is impossible for the behavior of a single, isolated individual to reach a high degree of rationality. The number of alternatives he must explore is so great, the information he would need to evaluate them so vast that even an approximation to objective rationality is hard to conceive. Individual choice takes place in rationality is hard to conceive... Actual behavior falls short in at least three ways, of objective rationality:

The function of knowledge in the decision-making process is to determine which consequences follow upon which of the alternative strategies. It is the task of knowledge to select from the whole class of possible consequences a more limited subclass, or even (ideally) a single set of consequences correlated with each strategy.

The fact that goals may be dependent for their force on other more distant ends leads to the arrangement of these goals in a hierarchy - each level to be considered as an end relative to the levels below it and as a mean to the levels above it.