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MANAGERS MAKING DECISIONS
At t his point in the study of Chapter 6, students will learn about the manager as a decision maker and how decisions are actually made in organizations. In this section, students examine how decisions are made, the types of problems and decisions faced by real-life managers, the conditions under which managers make decisions, and decision-making styles.
A. Making Decisions: Rationality. Managerial decision making is assumed to be rational-that is, making choices that are consistent and value-maximizing within specified constraints. If a manager could be perfectly rational, he orshe would be completely logical and objective.
1. Rational decision making assumes that the manager is making decisions in the best interests of the organization, not in his or her own interests.
2. The assumptions of rationality can be met if the manager is faced with a simple problem in which (1) goals are clear and alternatives limited, (2) time pressures are minimal and the cost of finding and evaluating alternatives is low, (3) the organizational culture supports innovation and risk taking, and (4) outcomes are concrete and measurable.
B. Making Decisions: Bounded Rationality. In spite of these limits to perfect rationality, managers are expected to be rational as they make decisions. Because 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.
1. Under bounded rationality, managers make satisficing decisions, in which they accept solutions that are "good enough."
2. 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.
What else can I help you with?
How organizational culture affect managerial decision making?
how does culture effect managers
What are environmental factors for today's management to study organizational behavior?
Environmental factors for today's management to study organizational behavior include globalization, technology, diversity, ethics, and sustainability. Understanding how these factors influence employee behavior, decision-making processes, and organizational culture can help managers navigate complex challenges and drive positive change within their organizations.
How people influence organisations and how organisations influence people?
People influence organizations in that the organizations are run depending on what people want. On the other hand organizations also influence people in that most people will do things as per the policies of the organization. There is a mutual relationship between people and organizations.
What percent of managers are perceived as strong leaders?
Research indicates that about 30% of managers are perceived as strong leaders. This percentage can vary by industry and organizational culture, but generally, many employees feel that leadership effectiveness is lacking. Factors such as communication, decision-making, and employee engagement play significant roles in shaping these perceptions. Consequently, organizations often invest in leadership development to enhance managerial effectiveness.
What is the influence of culture on thinking called?
The influence of culture on thinking is called cultural cognition. Cultural cognition refers to how people's values, beliefs, and cultural background shape their perceptions, judgments, and decision-making processes.
Why are managers judged by their decisions?
Managers are judged by their decisions because these choices directly impact the performance, culture, and direction of their organizations. Effective decision-making can lead to improved productivity, employee morale, and financial success, while poor decisions can result in losses and diminished trust. Ultimately, stakeholders, including employees and shareholders, assess a manager's effectiveness based on the outcomes of their decisions, making accountability essential in leadership roles.
Why decision making important for managers?
Decision-making is crucial for managers as it directly influences the direction and success of an organization. Effective decisions can optimize resources, enhance team performance, and drive strategic goals, while poor choices can lead to failures and lost opportunities. Additionally, strong decision-making skills foster trust and credibility among team members, promoting a positive organizational culture. Ultimately, managers’ decisions shape the overall future and sustainability of the business.
What is management influence?
Management influence refers to the capacity of leaders and managers to affect the behaviors, attitudes, and performance of their team members and the overall organization. This influence can stem from various sources, including authority, expertise, and personal charisma, as well as the ability to communicate effectively and build relationships. By leveraging their influence, managers can motivate employees, drive change, and foster a positive workplace culture, ultimately contributing to organizational success.
How does culture influence the listening process?
how does culture influence listening
Does cisneros culture influence her writing?
does her culture influence her writing
Why management students do study about religion?
Globalization is going very important in context to maximization of profit and Good will as well, every company or organization have a directly or indirectly influence with other organization of different countries, every country have different norms, culture, religion etc so the managers should have a comprehensive knowledge of religion and culture as well of others one to communicate well in context of trade etc For example:McDonald & KFC are engaged in their business activities in different countries and in each country they are performing their duties under their laws, religion, culture and norms.
How do group values or culture influence strategy making?
Group values and culture can influence strategy making by shaping the goals and priorities of the organization. A shared set of values can guide decision-making and help alignment towards common objectives. Culture can also impact how strategies are developed and implemented, as communication styles, decision-making processes, and organizational norms all play a role in shaping strategic initiatives.
