The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the… - Herbert Simon

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.

At the time of its initial publication, Public Administration helped to define this field of study and practice by introducing two major new emphases: an orientation toward human behavior and human relations in organizations, and an emphasis on the interaction between administration, politics, and policy. Without neglecting more traditional concerns with organization structure, Simon, Thompson, and Smithburg viewed administration in its behavioral and political contexts. The viewpoints they express still are at the center of public administration's concerns.

The criterion of efficiency dictates that choice of alternatives which produces the largest result for the given application of resources.

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.