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ManagementSixteenthEditionChapter1ManagersandYouintheWorkplaceCopyright©2025,2021,2018PearsonEducation,Inc.AllRightsReservedLearningObjectives1.1Describewhomanagersareandwheretheywork.1.2Explainwhymanagersareimportanttoorganizations.1.3Listthefunctionsandrolesofmanagers.1.4Describethefactorsthatarereshapingandredefiningthemanager’sjob.1.5Identifycareeroptionsinmanagementandskillsthatleadtocareersuccess.1.6Explainthevalueofstudyingmanagement.WhoIsaManager?Manager:someonewhocoordinatesandoverseestheworkofotherpeoplesothatorganizationalgoalscanbeaccomplishedMercedes-BenzITunitnolongerhasformalmanagersbutusesaholacracyorganizationalstructureshownonthenextslide.Theholacracystructureaimstodistributedecisionmakingthroughouttheorganizationbyeliminatingbossesandempoweringworkteamsorworkgroupstoselfmanage.Exhibit1-1HolacracyStructureExhibit1-1showstheholacracystructuresomefirmsarenowusing.ClassifyingManagersFirst-LineManagers:managetheworkofnon-managerialemployeesMiddleManagers:managetheworkoffirst-linemanagersTopManagers:responsibleformakingorganization-widedecisionsandestablishingplansandgoalsthataffecttheentireorganizationExhibit1-2LevelsofManagementExhibit1-2showsthatintraditionallystructuredorganizations,managerscanbeclassifiedasfirst-line,middle,ortop.WhereDoManagersWork?Organization:adeliberatearrangementofpeopletoaccomplishsomespecificpurposeExhibit1-3CharacteristicsofOrganizationsExhibit1-3showsthethreecommoncharacteristicsoforganizations:distinctpurpose,deliberatestructure,andpeople.WhyAreManagersImportant?OrganizationsneedtheirmanagerialskillsandabilitiesnowmorethaneverManagersarecriticaltogettingthingsdoneManagersmakeadifferenceinanorganization'sperformanceWhatDoManagersDo?Managementinvolvescoordinatingandoverseeingtheworkactivitiesofotherssothattheiractivitiesarecompletedefficientlyandeffectively.EfficiencyandEffectivenessEfficiency:doingthingsrightgettingthemostoutputfromtheleastamountofinputEffectiveness:doingtherightthingsattainingorganizationalgoalsExhibit1-4EfficiencyandEffectivenessinManagementExhibit1-4showsthatwhereasefficiencyisconcernedwiththemeansofgettingthingsdone,effectivenessisconcernedwiththeends,orattainmentoforganizationalgoals.ManagementFunctionsPlanning:Defininggoals,establishingstrategiestoachievegoals,anddevelopingplanstointegrateandcoordinateactivitiesOrganizing:ArrangingandstructuringworktoaccomplishorganizationalgoalsLeading:WorkingwithandthroughpeopletoaccomplishgoalsControlling:Monitoring,comparing,andcorrectingworkExhibit1-5FourFunctionsofManagementExhibit1-5showsthefourfunctionsusedtodescribeamanager’swork:planning,organizing,leading,andcontrolling.Mintzberg’sManagerialRolesandaContemporaryModelofManagingRoles:specificactionsorbehaviorsexpectedofandexhibitedbyamanagerMintzbergidentified10rolesgroupedaroundinterpersonalrelationships,thetransferofinformation,anddecisionmakingTypesofRolesInterpersonalFigurehead,leader,liaisonInformationalMonitor,disseminator,spokespersonDecisionalEntrepreneur,disturbancehandler,resourceallocator,negotiatorExhibit1-6Mintzberg’sManagerialRolesExhibit1-6showsthemanagerialrolesidentifiedbyMintzberg.ChallengesFacingManagersTodayandintotheFutureFocusonremoteorhybridworkFocusontechnologyFocusonemployeewell-beingFocusonRemoteorHybridWorkTheCOVID-19pandemicacceleratedthegrowthofremoteworkandhybridwork.Remoteworkisthepracticeofaccomplishingworktasksawayfromthecompany’sworksite.Hybridworkisthepracticeofworkingremotelypartofthetimeandworkingon-sitepartofthetime.Asflexibleworkoptionscontinuetogrow,managerswillneedtodevelopskillstomanageemployeesinaremoteworkenvironment.FocusonTechnologyManyorganizationsareengaginginstrategicdigitaltransformation.Digitaltransformationinvolvesrethinkinghowyouusetechnology,people,andprocessestoaccomplishwork.Somefirmsuseartificialintelligencetoprovidefeedbacktoemployees.Artificialintelligencereferstohardwareandsoftwaresystemsthatmakedecisionsandcarryoutactionsontheirownwithoutadditionalhumaninput.Technologyhasalsocreatedagigeconomywhereworkersaredoingmorefreelancework.FocusonEmployeeWell-BeingNowandintothefuture,managerswillneedtofocusmoreonemployeewell-being.Well-beingoccurswhenapersonjudgestheirlifeaspositive.Well-beingincludesbothmentalandphysicalhealth.Management’sapproachtodiversity,equity,andinclusionalsoimpactsemployeewell-being.Exhibit1-7ManagementSalariesExhibit1-7showsthecompensationpossibleforvariousmanagementpositions.Occupation2021MedianPayComputerandInformationSystemsManagers$159,010ArchitecturalandEngineeringManagers$152,350Advertising,Promotions,andMarketingManagers$133,380FinancialManagers$131,710CompensationandBenefitsManagers$127,530ManagementSkillsTechnicalskillsKnowledgeandproficiencyinaspecificfieldInterpersonalskillsTheabilitytoworkwellwithotherpeopleConceptualskillsTheabilitytothinkandconceptualizeaboutabstractandcomplexsituationsconcerningtheorganizationExhibit1-8SkillsNeededatDifferentManagerialLevelsExhibit1-8showstherelationshipsofconceptual,interpersonal,andtechnicalskillstomanageriallevels.TheUniversalityofManagementTherealityisthatmanagementisneededinalltypesandsizesoforganizations,atallorganizationallevels,inallorganizationalareas,andinorganizationsnomatterwherelocatedExhibit1-9UniversalNeedforManagementExhibit1-9showsthatmanagementisuniversallyneededinalltypesof,andthroughoutallareasof,organizations.TheRealityofWorkWhenyoubeginyourcareer,youwilleithermanageorbemanagedGainingInsightsintoLifeatWorkStudentsneedtounderstandmanagementprinciplesregardlessofcareerchoiceWorkplaceConfidentialboxeslocatedineachchapterwillintroducestudentstovariousworkplacechallengesandgiveadviceonhowtohandlethosechallengesReviewLearningObjective1.1Describewhomanagersareandwheretheywork.Managerscoordinateandoverseetheworkofotherpeoplesothatorganizationalgoalscanbeaccomplished.Managersworkinanorganization,whichisadeliberatearrangementofpeopletoaccomplishsomespecificpurpose.ReviewLearningObjective1.2Explainwhymanagersareimportanttoorganizations.Organizationsneedtheirmanagerialskillsandabilitiesinuncertain,complex,andchaotictimes.Managersarecriticaltogettingthingsdoneinorganizations.Managerscontributetoemployeeproductivityandloyalty.ReviewLearningObjective1.3(1of2)Listthefunctionsandrolesofmanagers.Managementinvolvescoordinatingandoverseeingtheefficientandeffectivecompletionofothers’workactivities.Thefourfunctionsofmanagementincludeplanning,organizing,leading,andcontrolling.ReviewLearningObjective1.3(2of2)Mintzberg’smanagerialrolesinclude:Interpersonal,involvepeopleandotherceremonial/symbolicduties(figurehead,leader,andliaison)Informational,collecting,receiving,anddisseminatinginformation(monitor,disseminator,andspokesperson)Decisional,makingchoices(entrepreneur,disturbancehandler,resourceallocator,andnegotiator)ReviewLearningObjective1.4Describethefactorsthatarereshapingandredefiningthemanager’sjob.Managersmustbeconcernedwith:Howtomanageremoteandhybridworkers.TechnologyasitimpactshowthingsgetdoneinorganizationsDigitaltransformation,artificialintelligence,andthegigeconomyareaffectingmanagementEmployeewell-beingisbecomingincreasinglymoreimportantformanagersReviewLearningObjective1.5Identifycareeroptionsinmanagementandskillsthatleadtocareersuccess.Katz’smanagerialskillsinclude:Technical(job-specificknowledgeandtechniques)Interpersonal(abilitytoworkwellwithpeople)Conceptual(abilitytothinkandexpressideas)ReviewLearningObjective1.6Explainthevalueofstudyingmanagement.Theuniversalityofmanagement—managersareneededinalltypesandsizesoforganizationsTherealityofwork—youwillmanageorbemanagedGaininganunderstandingofhowmanagersthinkandhoworganizationsoperate.CopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandisprovidedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.ManagementSixteenthEditionChapter2TheEvolutionofManagementCopyright©2025,2021,2018PearsonEducation,Inc.AllRightsReservedLearningObjectives2.1Describesomeexamplesofearlymanagementpractice.2.2Explainthevarioustheoriesoftheclassicalapproachtomanagement.2.3Discussthedevelopmentandusesofthesocial-personapproachestomanagement.2.4Describethequantitativeapproachtomanagement.2.5Explainthesystemsandcontingencyapproachestomanagement.2.6Identifyimportantrecentevolutionsinthefieldofmanagement.EarlyManagement(1of2)Managementpracticesevolvedovertime.Someexamplesthatrequiredmanagementskillsbasedontheirsizeandscopeinclude:TheEgyptianPyramidsTheGreatWallofChinaTheRomanCatholicChurchEarlyManagement(2of2)AdamSmithinTheWealthofNations(1776)arguedthatthedivisionoflaborwouldbenefitsocietyoverallDivisionoflabor:breakingdownjobsintonarrowandrepetitivetasksAlsoknownasjobspecializationTheIndustrialRevolution,usheredinbymachinepower,alsoutilizedthedivisionoflaborClassicalApproachClassicalapproach:Firststudiesofmanagement,whichemphasizedrationalityandmakingorganizationsandworkersasefficientaspossibleScientificmanagement:Anapproachthatinvolvesusingthescientificmethodtofindthe“onebestway”forajobtobedoneFrederickWinslowTaylorTaylor’stimeandmotionstudiesconductedatBethlehemSteelwerefocusedonfindingthebestwaytoperformaspecifictaskTaylorpublishedhisresultsdescribinghistheoryofscientificmanagementTaylor’sfourprinciplesofscientificmanagementareshowninExhibit2-1onthenextslideExhibit2-1Taylor’sFourPrinciplesof

ScientificManagement.1.Developascienceforeachelementofanindividual’sworktoreplacetheoldrule-of-thumbmethod.2.Scientificallyselectandthentrain,teach,anddeveloptheworker.3.Heartilycooperatewiththeworkerstoensurethatallworkisdoneinaccordancewiththeprinciplesofthesciencethathasbeendeveloped.4.Divideworkandresponsibilityalmostequallybetweenmanagementandworkers.Managementdoesallworkforwhichitisbettersuitedthantheworkers.Source:F.W.Taylor,PrinciplesofScientific

Management(NewYork:Harper,1911).FrankandLillianGilbrethStudiedhandandmotiontechniquestoreducewasteTheGilbrethswereamongthefirstresearcherstousemotionpicturefilmstostudyhand-and-bodymotionsIdentified17basichandmotionstheydubbedtherbligswhichisGilbrethspelledbackwardswiththe“th”transposedTherbligs:aclassificationschemeforlabelinghandmotionsFocusedeffortsonimprovingefficiencyGeneralAdministrativeTheoristsGeneraladministrativetheoristslookedatmanagementbyfocusingontheentireorganizationThemostprominentofthegeneraladministrativetheoristswereHenriFayolandMaxWeberFayolidentified14principlesofmanagementshowninExhibit2-2coveredonthefollowingslidesExhibit2-2Fayol’s14PrinciplesofManagement(1of2)1.Divisionofwork:Specializationincreasesoutputbymakingemployeesmoreefficient.2.Authority:Managersmustbeabletogiveorders,andauthoritygivesthemthisright.3.Discipline:Employeesmustobeyandrespecttherulesthatgoverntheorganization.4.Unityofcommand:Everyemployeeshouldreceiveordersfromonlyonesuperior.5.Unityofdirection:Theorganizationshouldhaveasingleplanofactiontoguidemanagersandworkers.6.Subordinationofindividualintereststothegeneralinterest:Theinterestsofanyoneemployeeorgroupofemployeesshouldnottakeprecedenceovertheinterestsoftheorganizationasawhole.7.Remuneration:Workersmustbepaidafairwagefortheirservices.Exhibit2-2Fayol’s14PrinciplesofManagement(2of2)8.Centralization:Thedegreetowhichsubordinatesareinvolvedindecisionmaking.9.Scalarchain:Thelineofauthorityfromtopmanagementtothelowestranks.10.Order:Peopleandmaterialsshouldbeintherightplaceattherighttime.11.Equity:Managersshouldbekindandfairtotheirsubordinates.12.Stabilityoftenureofpersonnel:Managementshouldprovideorderlypersonnelplanningandensurethatreplacementsareavailabletofillvacancies.13.Initiative:Employeesallowedtooriginateandcarryoutplanswillexerthighlevelsofeffort.14.Espritdecorps:Promotingteamspiritwillbuildharmonyandunitywithintheorganization.MaxWeberWeberdescribedwhathebelievedwastheidealsystemoforganizationthathecalledabureaucracyItwasasystemcharacterizedbydivisionoflabor,aclearlydefinedhierarchy,detailedrulesandregulations,andimpersonalrelationshipsHeproposedtheframeworktoshowhowworkcouldbedoneWeber’sbureaucracybecametheframeworkformanyoftoday’slargeorganizationsExhibit2-3CharacteristicsofWeber’sBureaucracySocial-PersonApproachesSocial-personapproaches:Managementtheoriesthatfocusontheorganization’shumanandsocialfactorsManagersgetthingsdonebyworkingwithpeople.Thisexplainswhysomewritershavechosentolookatmanagementbyfocusingontheorganization’shumanandsocialfactors.EarlyAdvocates(1of2)RobertOwen:Scottishbusinessmanwhoproposedautopianworkplacecommittedtoworkerwell-beingLouisBrandeis:Intheearly1900sadvocatedforthe“stakeholderview”ofmanagementHugoMünsterberg:CreatedthefieldofindustrialpsychologyMaryParkerFollet:OneofthefirsttorecognizeorganizationscouldbeviewedfromtheperspectiveofindividualandgroupbehaviorEarlyAdvocates(2of2)ChesterBarnard:HebelievedthatorganizationsweremadeupofpeoplewhohaveinteractingsocialrelationshipsAlsoknownforhisviewsonauthority:Traditionalviewofauthority:Asuperior’srighttoexactcompliancefromsubordinatesdevelopsatthetopandmovesdownthroughanorganizationAcceptanceviewofauthority:AuthoritycomesfromthewillingnessofsubordinatestoacceptitTheHawthorneStudiesHawthorneStudies:Aseriesofstudiesduringthe1920sand1930sthatprovidednewinsightsintoindividualandgroupbehaviorThesestudiesresultedinthefollowingconclusions:People’sattitudesandbehaviorarecloselyrelatedGroupfactorssignificantlyaffectindividualbehaviorGroupstandardsestablishindividualworkeroutput,Moneyislessafactorindeterminingoutputthangroupstandards,groupattitudes,andsecurityTheHumanRelationsMovement(1of2)Humanrelationsmovement:managementapproachbasedonthebeliefthatasatisfiedworkerisaproductiveworkerBelievedintheimportanceofemployeesatisfactionBelievedthatsatisfiedworkersareproductiveworkersTheseviewpointswerelargelyshapedbypersonalbeliefsandnotsubstantiveresearchTheHumanRelationsMovement(2of2)DaleCarnegie:CarnegiebelievedsuccesscouldbeattributedtoemphasizingthepositiveinpeopleAbrahamMaslow:HishierarchyofneedsexplainedhowpeoplearemotivatedDouglasMcGregor:HisTheoryXandTheoryYlookedatpeoplefromanegativeperspectiveandapositiveperspectiveThecommonthreadthatunitedhumanrelationssupporterswasanunshakeableoptimismaboutpeople’scapabilities.BehavioralScienceTheoristsBehavioralsciencetheorists:ResearcherswhoengagedinobjectiveresearchofhumanbehaviorinorganizationsSeveralresearchersmadesignificantcontributionsinthisfieldincluding:FredFiedler,VictorVroom,FrederickHerzberg,EdwinLocke,DavidMcClelland,RobertHouse,andRichardHackmanManyoftheircontributionswillbecoveredinlaterchaptersQuantitativeApproachQuantitativeapproach:theuseofquantitativetechniquestoimprovedecisionmakingUltimatelybecameknownasmanagementscienceEvolvedfrommilitaryapplicationsdevelopedduringWWIITotalqualitymanagement(TQM)emergedfromthequantitativeapproachTotalqualitymanagement(TQM):AphilosophyofmanagementthatisdrivenbycontinuousimprovementandresponsivenesstocustomerneedsandexpectationsExhibit2-4WhatIsQualityManagement(1of2)Intensefocusonthecustomer:Thecustomerincludesoutsiderswhobuytheorganization’sproductsorservicesandinternalcustomerswhointeractwithandserveothersintheorganization.Concernforcontinualimprovement:Qualitymanagementisacommitmenttoneverbeingsatisfied.“Verygood”isnotgoodenough.Qualitycanalwaysbeimproved.Processfocused:Qualitymanagementfocusesonworkprocessesasthequalityofgoodsandservicesiscontinuallyimproved.

Exhibit2-4WhatIsQualityManagement(2of2)Improvementinthequalityofeverythingtheorganizationdoes:Thisrelatestothefinalproduct,howtheorganizationhandlesdeliveries,howrapidlyitrespondstocomplaints,howpolitelythephonesareanswered,andthelike.Accuratemeasurement:Qualitymanagementusesstatisticaltechniquestomeasureeverycriticalvariableintheorganization’soperations.Thesearecomparedagainststandardstoidentifyproblems,tracethemtotheirroots,andeliminatetheircauses.Empowermentofemployees:Qualitymanagementinvolvesthepeopleonthelineintheimprovementprocess.Teamsarewidelyusedinqualitymanagementprogramsasempowermentvehiclesforfindingandsolvingproblems.SystemsandContingencyApproachesSystem:asetofinterrelatedandinterdependentpartsarrangedinamannerthatproducesaunifiedwholeClosedsystems:systemsthatarenotinfluencedbyanddonotinteractwiththeirenvironmentOpensystems:systemsthatinteractwiththeirenvironmentExhibit2-5AnOrganizationasanOpenSystemTheContingencyApproachContingencyapproach:amanagementapproachthatrecognizesorganizationsasdifferent,whichmeanstheyfacedifferentsituations(contingencies)andrequiredifferentwaysofmanagingMorethan100differentcontingencyvariableshavebeenidentifiedTheprimaryvalueofthecontingencyapproachisthatitstressesherearenosimplisticoruniversalrulesformanagerstofollow.Exhibit2-6PopularContingencyVariablesOrganizationsize:Assizeincreases,sodotheproblemsofcoordination.Forinstance,thetypeoforganizationalstructureappropriateforanorganizationof50,000employeesislikelytobeinefficientforanorganizationof50employeesandviceversa.

Routinenessoftasktechnology:Toachieveitspurpose,anorganizationusestechnology.Routinetechnologiesrequireorganizationalstructures,leadershipstyles,andcontrolsystemsthatdifferfromthoserequiredbycustomizedornonroutinetechnologies.Environmentaluncertainty:Thedegreeofuncertaintycausedbyenvironmentalchangesinfluencesthemanagementprocess.Whatworksbestinastableandpredictableenvironmentmaybetotallyinappropriateinarapidlychangingandunpredictableenvironment.Individualdifferences:Individualsdifferintermsoftheirdesireforgrowth,autonomy,toleranceofambiguity,andexpectations.Theseandotherindividualdifferencesareparticularlyimportantwhenmanagersselectmotivationtechniques,leadershipstyles,andjobdesigns.TheNewIndustrialRevolution:TechnologyandComputerizationTheimportantinfluencethattechnologyandcomputerizationhaveoncurrentmanagementisconsiderableOrganizationstocreatevirtualteams—peoplewhoworktogetherbutaregeographicallydispersedManybusinessesarenowobsoleteThegigeconomyprovidesflexibilityandfreedomtoemployersandindependentworkersGlobalizationManagementbegantobreakdownnationalbordersandaggressivelypursueglobalstrategiesinthe1960sCompaniesbegantorealizethepotentialofforeignmarkets,theideaofoffshoringproductionbecamepopular,anddomesticproducersbecameincreasinglyawarethatcompetitorswereaslikelytocomefromacrosstheoceanasfromacrosstownGlobalizationwillbecoveredingreaterdetailinChapter6SustainabilityandtheESGMovementThesustainabilitymovementisnowaglobaltrendthatisreshapingthebusinessenvironmentManycompaniesareusingenvironment,social,andgovernance(ESG)reportingframeworks,whichmeasureandquantifyacompany’scommitmenttoenvironmentalsustainability,socialresponsibility,andgoodcorporategovernance.CopyrightThisworkisprotectedbyUnitedStatescopyrightlawsandisprovidedsolelyfortheuseofinstructorsinteachingtheircoursesandassessingstudentlearning.Disseminationorsaleofanypartofthiswork(includingontheWorldWideWeb)willdestroytheintegrityoftheworkandisnotpermitted.Theworkandmaterialsfromitshouldneverbemadeavailabletostudentsexceptbyinstructorsusingtheaccompanyingtextintheirclasses.Allrecipientsofthisworkareexpectedtoabidebytheserestrictionsandtohonortheintendedpedagogicalpurposesandtheneedsofotherinstructorswhorelyonthesematerials.ManagementSixteenthEditionChapter3MakingDecisionsCopyright©2025,2021,2018PearsonEducation,Inc.AllRightsReservedLearningObjectives3.1Describetheeightstepsinthedecision-makingprocess.3.2Explainthefourapproachesmanagerscanusewhenmakingdecisions.3.3Classifydecisionsanddecision-makingstyles.3.4Describehowbiasesaffectdecisionmaking.3.5Explainhowtechnologycanimprovedecisionmaking.BeaBetterDecisionMakerAkeytosuccessinmanagementandinyourcareerisknowinghowtobeaneffectivedecisionmaker.Managersatalllevelsandineveryorganizationalunitarerequiredtomakedecisions.Ourfocusinthischapterisonhowmanagersmakedecisions.WhatIsaDecision?Decision—aconclusionorresolutionmadeafterconsideringalternativesTheDecision-MakingProcessThereareeightstepsinthedecision-makingprocess:IdentifyingaproblemIdentifyingdecisioncriteriaAllocatingweightstothecriteriaDevelopingalternativesAnalyzingalternativesSelectinganalternativeImplementingthealternativeEvaluatingdecisioneffectivenessDecision-MakingProcessStep1:IdentifyaProblemProblem:anobstaclethatmakesitdifficulttoachieveadesiredgoalorpurpose.Everydecisionstartswithaproblem,adiscrepancybetweenanexistingandadesiredcondition.Example:Amandaisamanagerofalargecustomerservicecenterlookingfornewstandingdesksforemployees.Decision-MakingProcessStep2:IdentifytheDecisionCriteriaDecisioncriteriaarefactorsthatareimportanttoresolvingtheproblem.Example:Amandadecidesthatdurability,heightrange,electroniccontrols,andcustomizationaretherelevantcriteriainherdecision.Exhibit3-1ImportantDecisionCriteriaDurability10Heightrange8Electroniccontrol6Customization4Decision-MakingProcessStep3:AllocateWeightstotheCriteriaIftherelevantcriteriaaren’tequallyimportant,thedecisionmakermustweighttheitemsinordertogivethemthecorrectpriorityinthedecision.Example:TheweightedcriteriaforAmanda’sstandingdeskpurchaseareshowninExhibit3-2.Exhibit3-2PossibleAlternativesBlankDurabilityHeightRangeElectronicControlCustomizationUpliftV27869FullyJarvis6958VariElectric8775NewHeightsXT101025VertDeskv396106Decision-MakingProcessStep4:DevelopAlternativesListviablealternativesthatcouldsolvetheproblem.Example:Amandaidentifiesfivestandingdesksaspossiblechoices(showninExhibit3-2).Decision-MakingProcessStep5:AnalyzeAlternativesStep6:SelectanAlternativeStep5:Onceyouidentifythealternativesyouneedtoanalyzethemusingthecriteriaestablishedinstep2.Step6:Choosethealternativethatgeneratesthehighesttotalinstep5.Exhibit3-3EvaluationofAlternativesBlankDurabilityHeightRangeElectronicControlCustomizationTotalUpliftV270643636206FullyJarvis60723032194VariElectric80564220198NewHeightsXT100801220212VertDeskv390486024222Decision-MakingProcessStep7:ImplementtheAlternativePutthechosenalternativeintoaction.Conveythedecisiontothoseaffectedandgettheircommitmenttoit.Decision-MakingProcessStep8:EvaluateDecisionEffectivenessEvaluatetheresultoroutcomeofthedecisiontoseewhethertheproblemwasresolved.Ifitwasn’tresolved,whatwentwrong?Exhibit3-4DecisionsManagersMayMake:PlanningandOrganizingExhibit3-4DecisionsManagersMayMake:LeadingandControllingRationalityRationaldecisionmaking:choicesthatarelogicalandconsistentandmaximizevalueAssumptionsofrationality:RationaldecisionmakerislogicalandobjectiveProblemfacedisclearandunambiguousDecisionmakerwouldhaveaclear,specificgoalandbeawareofallalternativesandconsequencesThealternativethatmaximizesachievingthisgoalwillbeselectedDecisionsaremadeinthebestinterestoftheorganizationBoundedRationalityBoundedrationality:decisionmakingthat’srational,butlimitedbyanindividual’sabilitytoprocessinformationSatisfice:acceptingsolutionsthatare“goodenough”IntuitionIntuitivedecisionmaking:makingdecisionsontheba

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