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Introduction of Management
Pages 4 (1004 words)
Decision-making describes the process by which a course of action is selected as the way to deal with a specific problem. People at all levels in an organization are constantly making decisions and solving problems. For managers, the decision-making and problem-solving tasks are particularly important aspects of their jobs…
For instance, making decisions about how to cut costs by five percent reflects a problem. The manager also has to make decisions when there is an opportunity that can be exploited. If the firm has surplus funds, the manager has to decide whether the extra funds should be used to increase shareholder dividends, reinvested in current operations, or to expand into new markets.
The quality of managers' decisions is the yardstick of their effectiveness and value to the organization. Managers are usually evaluated and rewarded on the basis of the importance and results of their decisions. (P. Drucker) This indicates that managers must necessarily develop decision-making skills.
The success of an organization depends greatly on the decisions that managers make. (Management Assistant Program) The Rational model which is believed to be one of the major types of models regarding how managers make decisions is discussed below.
The rational model of managerial decision-making has its roots in the economic theory of the firm. When theories about the economic theory of the firm. When theories about the economic behavior of business firms were being developed, there was a general tendency among economists to assume that whatever decisions managers made would always be in the best economic interests of their firms. ...
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