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Cyert and March’s behavioural theory

Cyert and March’s behavioural view treats organisations as coalitions whose participants can have different objectives, limited information and negotiated expectations. Decision-making may seek an acceptable outcome rather than a mathematically perfect maximum. Mechanisms such as negotiation, prioritisation and sequential attention can manage conflict, though they may also postpone problems. The framework helps assess realistic objectives and behaviour; it does not claim every compromise is efficient or ethically acceptable.

Worked example

Managers negotiate between staff-development requests, cash constraints and customer-service priorities, accepting a feasible package rather than maximising one measure alone.

Common mistake

Satisficing means seeking an acceptable solution under constraints, not automatically accepting poor performance or abandoning goals.

Where it appears in your exams

QualificationExamRelationshipPeriod
ACCA APM Supporting September 2026–June 2027
ACCA BT Supporting September 2026–June 2027
FIA FBT Supporting September 2026–June 2027