As the perfectly rational model of decision making isn't realistic, managers tend to operate under assumptions of bounded rationality, which is decision-making behavior that is rational, but limited (bounded) by an individual's ability to process information.
Under bounded rationality, managers make satisficing decisions, in which they accept solutions that are "good enough." Managers' decision making may be strongly influenced by the organization 's culture, internal politics, power considerations, and by a phenomenon called escalation of commitment an increased commitment to a previous decision despite evidence that it may have been wrong.