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Bounded Rationality Theory: Improving Managerial Performance

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In general, Managerial Performance as an indicator that goals are consistently being realized and met by the managers in an effective and efficient manner, becomes one of the prominent keys that should be improved over time. (Zenita et al., 2015). Through improving decision making process, Managerial performance can be improved. Decision making is the process of making choices by setting goals, gathering information, and assessing alternatives. In decision making process, managers use information and their interpretation skills in order to make effective decisions. According to Bounded Rationality Theory (Simon 1978) managers as decision makers are bounded by some constraints in making a rational and effective decision. These constraints include …show more content…

Then a rational and effective decision will enable managers to solve problems in more efficient and proper way in executing managerial function and thus improve their managerial performance. While performing managerial functions, managers have to face many challenges. Those challenges must be responding through positive and proper reactions by managers. According to Bandura (1986) an individual’s self efficacy plays a vital role in how goals, tasks and challenges are approached. Origin of self-efficacy is research and Bandura ' social-cognitive theory (1997). Based on social-cognitive theory human is an active creature which can self-discipline and regulate his behavior not a passive creature which is controlled by unknown environment forces or internal tensions. They participate actively in their transformation and can control events with their behavior. Bandura believes that self-efficacy stimulates motivation and cognitive resources and it is a factor for controlling certain event. "Individuals accurately know what duties they must do and they have required skills for this purpose but they are not successful in suitable performance (Bandura; 1997). Bandura (1977) explained the concept of self-efficacy, as the belief in one’s ability to successfully perform a task. People’s perceptions of their capabilities for …show more content…

The second objective is to investigate the effect of information literacy on strategic management accounting. The third objective of this study is to investigate the effect of strategic management accounting on managerial performance. The fourth objective is to examine the mediating effect of strategic management accounting on the relationship between information literacy and managerial performance. The fifth objective is to investigate that whether self efficacy moderates the relationship between strategic management accounting and managerial performance. The sixth objective is to investigate the effect of tolerance of ambiguity on managerial

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