In decision-making, what term describes the criteria used to compare and judge different alternatives?

• A. Decision criteria
• B. Satisficing
• C. Bounded rationality
• D. Evidence-based management

Answer: (A)

Decision criteria are the standards used to evaluate and compare options in a decision. They are the specific elements you care about—such as cost, quality, time, and risk—that you use to judge how well each alternative meets your goals. By defining these criteria, you can systematically compare options and identify which one best satisfies what you’re aiming to achieve, often even weighting criteria to reflect their importance.

Satisficing describes choosing a "good enough" option that meets a satisfactory level, rather than evaluating options against predefined criteria to find the best fit. Bounded rationality refers to the limits of human cognition and information, which shape how decisions are made but not the criteria themselves. Evidence-based management focuses on using the best available evidence to inform decisions, not on the particular standards used to compare alternatives.