Principles of Management CLEP Practice Exam 2025 – Your Comprehensive All-in-One Guide to Exam Success!

The term 'satisficing' in decision-making refers to the practice of selecting an option that meets a minimum threshold of acceptability rather than seeking the absolute best or optimal solution. This approach is particularly useful in situations where the decision-maker faces limitations such as time constraints, uncertainty, or the complexity of analyzing all possible alternatives.

Satisficing acknowledges that while an individual may desire to find the best possible outcome, practical limitations often lead to settling for an option that suffices to meet their needs or goals, even if it isn't the most profitable or efficient choice. This concept is rooted in bounded rationality, which recognizes that decision-makers operate under cognitive limitations that prevent them from processing all relevant information and considering every alternative comprehensively. Thus, they will often opt for a solution that is good enough to resolve the decision at hand.