Heuristics and simple rules: approaches and implications for management

Purpose The aim of this paper is to contribute to the definition and role of heuristics in decision-making through the discussion of the main approaches of research on heuristics and simple rules in the light of two pivotal concepts in decision research: models (verbal and formal) and logics (of consequences, appropriateness and absurdity). Design/methodology/approach We propose a critical review to explain the conceptual similarities and differences in the main approaches of research on heuristics and simple rules in management. As a common foundation for the various approaches, the fundamental concepts proposed by Simon and March are used as a lens through which to compare the different approaches and their application in recent management literature. Findings The paper discusses how performance strategies and programs relate to heuristics and simple rules. Findings include insights about the links between adaptive tools and performance strategies and how heuristics and simple rules incorporate logics of consequences or appropriateness. Research limitations/implications The paper limits itself to examining the three most frequently cited approaches to decision-making in management, while overlooking other possible approaches. Practical implications To explore the differences between the various approaches and the possibilities for integrating them can provide guidance to those who are exploring the practical application of alternative decision-making models. Social implications A more thoughtful approach can help promote social acceptance of alternative decision-making models and approaches. Originality/value We conclude that approaches based on fast and frugal heuristics and on simple rules have much in common, as both are influenced by the work of Simon and March. These approaches involve adopting a perspective in which decision-making is studied not only in terms of logical consistency but also in terms of practical effectiveness and the generation of new ideas. This perspective remains, for the most part, a challenge yet to be addressed.