Bounded Rationality
In Herber Simon's later work (especially March and Simon 1958), greater emphasis is put on the variability inherant in tasks and environments in addition to the cognitive limits of organizational actors. Individuals use "performance programs" to help in decision-making, though in uncertain situations decision-making is more like problem-solving. In volatile environments organizations may have to even institutionalize innovation into performance programs as well.

Furthermore, they discuss how decision-makers "satisfice" rather than optimize, attend to problems sequentially than simultaneously, and rely more on performance programs than novel approaches to problems. Some environments are so complex that organizations must rely on simplified decision-making to function.