Bounded Rationality a Prelude to Ecological Rationality: A Deeper Look at the Fast and Frugal Heuristic in Leadership

Abstract


 This article examines literature that shows why the fast and frugal heuristic is an appropriate decision-making approach for leaders. Unlike traditional decision-making methods, the fast and frugal heuristic uses mental shortcuts and systematic reasoning when there are time constraints and a lack of information available. In general, whether a leader elects to use the fast and frugal heuristic depends on their mental model, a compilation of experiences and perceptions that influence how individuals make decisions. The fast and frugal heuristic approach, ingrained in the ecological rationality theoretical framework, specifies that leaders adapt how they make decisions based on the context and complexity of the environment (Goldstein & Gigerenzer, 2002). Leaders face multi-faceted challenges and the agility to employ the fast and frugal heuristics fosters greater cognitive flexibility, holistic thinking (Hallo & Nguyen, 2022), and more robust leadership and problem-solving abilities.