“Administrative Behavior” most commonly refers to the foundational book by Herbert A. Simon, which is a seminal work in the fields of public administration, organizational theory, and economics.
Here is a summary of the key information regarding the book and the concept:
The Book: Administrative Behavior: A Study of Decision-Making Processes in Administrative Organization
- Author: Herbert A. Simon (who later won the 1978 Nobel Memorial Prize in Economic Sciences, with the book cited as “epoch-making”).
- Original Publication Date: 1947.
- Central Thesis: Simon asserts that decision-making is the heart of administration and that the theory of administration must be based on the logic and psychology of human choice.
- Key Concepts:
- Decision-Making: The primary focus, viewing administrative organizations as decision-making structures.
- Bounded Rationality: The most significant contribution. It rejects the classical economic model of the perfectly rational “economic man” who makes optimal decisions. Instead, Simon introduces the “administrative man,” whose rationality is limited (or “bounded”) by cognitive limitations, available information, and time.
- Satisficing: The idea that instead of searching for the best possible solution (maximizing), the administrative man settles for a course of action that is simply satisfactory or “good enough” (satisficing).
The Concept of Administrative Behavior
Administrative behavior, as a field of study, focuses on how people behave in groups and within organizations to achieve shared objectives. It seeks to understand the psychological and sociological factors that influence the functioning and development of public organizations.
The four main facets generally studied in administrative behavior are:
- Decision-Making (as highlighted by Simon).
- Leadership
- Motivation
- Communication
Key Concepts of Administrative Behavior Theory
1. Decision-Making as the Core of Administration
Simon argues that the primary function of an organization and its administrators is decision-making. All administrative processes, like planning, organizing, and controlling, are essentially networks of decisions.
2. Bounded Rationality
This is the most critical concept. Simon proposed that the ideal of “Economic Man” (who is perfectly rational and maximizes utility) does not exist in reality. Instead, real-world administrators are limited by:
- Cognitive Limitations: Limited memory and problem-solving capacity.
- Incomplete Information: Lack of all possible alternatives and consequences.
- Time Constraints: The need to make decisions quickly.
Because of these limits, human rationality is “bounded.”
3. Satisficing
As a consequence of bounded rationality, the “Administrative Man” replaces the “Economic Man.” The administrative man does not search for the absolute optimal solution (maximizing) but instead searches for a satisfactory or “good enough” solution (satisficing)—one that meets a minimum set of acceptable criteria. This conserves cognitive resources and time.
4. Factual and Value Premises
Simon separates decision-making into two components:
- Factual Premises: Statements about the observable world and how it operates (can be verified as true or false).
- Value Premises: Ethical statements or goal-related judgments that express preferences or final goals (cannot be empirically verified).
Administrative decisions are a mix of both. Higher-level policy decisions often involve more value premises, while lower-level operational decisions involve more factual premises for implementation.
Impact of Bounded Rationality on Administrative Decisions
Bounded rationality has a profound impact on administrative decisions, leading to a focus on efficiency and practical outcomes rather than theoretical perfection:
| Impact | Description |
| Shift from Maximizing to Satisficing | Administrators settle for the first acceptable course of action, halting the search for alternatives once a “good enough” one is found. |
| Use of Heuristics | Decision-makers rely on mental shortcuts (rules of thumb, simplified models) to cope with the complexity of real-world problems. |
| Focus on Incrementalism | Major policy changes are often implemented in small, gradual steps rather than comprehensive overhauls (a concept related to, but distinct from, Simon’s pure theory) because administrators lack the capacity to process all information for a complete overhaul. |
| Organizational Structure as Aid | Organizations develop structures (e.g., division of labor, standard operating procedures, organizational rules) to channel attention and supply information, effectively limiting the number of alternatives an individual has to consider, thereby extending the boundaries of their rationality. |
Key Contributors to Administrative Behavior (Besides Simon)
While Herbert A. Simon’s Administrative Behavior is the cornerstone of the theory, other key figures from the behavioral and human relations schools significantly contributed to the understanding of individual behavior in organizations, which underpins the theory:
- Chester Barnard: Highly influential on Simon, his work The Functions of the Executive introduced concepts like:
- The Zone of Indifference (which Simon adapted to the Zone of Acceptance), where subordinates accept authority without question.
- The Contribution-Inducement Equilibrium, which explores the balance between what an employee gives to the organization and what they receive in return.
- Anthony Downs: In his book Inside Bureaucracy, Downs applied psychological and behavioral principles to public officials, arguing that their behavior is influenced by varying psychological needs and motivations (beyond pure rationality), which shape how they act within bureaucratic structures.
- Chris Argyris: A major figure in the Socio-Psychological approach, his work criticized the classical formal organization for creating dependence and passivity in mature employees, arguing that it leads to an incongruence between the needs of the healthy human personality and the demands of the formal organization.
- The Human Relations School (e.g., Elton Mayo): Emphasized the importance of non-material incentives, social factors, and group dynamics (motivation, communication, leadership) in influencing administrative behavior, shifting focus from structure to people.
The Administrative Behavior Theory, primarily developed by Herbert A. Simon, centers on decision-making as the heart of administration and challenges the traditional view of a perfectly rational administrator. Its key concepts explain how real-world administrators make decisions.