Theories of the Decision-Making Process: Risk and Cost Benefits Analysis
Reading 1.3 Jackall, R. (1988)
Theories of decision-making process deliver to managers many essential tools such as risk and cost/benefits analysis, etc. which in tern routinizes administration. These tools cannot be used appropriately to manage of incalculable entities. The functional rationality approach is when activities precisely planned and estimated to reach some goal. This method is unlikely to be used by top managers because another important factors are involved such as ego or personal altitude. If there is no special procedure for a particular problem, manager should focus on how to turn a situation into the right way in accordance with expectations from their boss.
Some managerial people cannot make their own judgments. Instead, they are looking up and looking around for someone else’s opinion and finally they rely on it because of personal fears or inexperience. Another example of it is the mid-level decision-making paralysis in many American companies when a manager is trying to avoid of making a decision. In the case of inevitable decision, he or she would engage as many colleagues as possible for self-protection.
Many examples of recent administrative and economic problems within American companies have showed the tendency that managers are oriented to the short-term period when making decisions. This is due to the fact that MBA programs provide tools which are focuses mostly on a short-term attitude. The second reason would be that managers are under pressure for annual, quarterly, monthly and daily results and these factors push they out of thinking about the future, even though they realise that today’s minor difficulties could be tomorrow’s big crises.
Managers are also aware of blame time and when things go wrong it is necessary to be protected from consequences. This is the reason why they gravitate towards this fear being punished rather than reflecting critically. Bureaucracy disrupts working processes into parts and the
Theories of decision-making process deliver to managers many essential tools such as risk and cost/benefits analysis, etc. which in tern routinizes administration. These tools cannot be used appropriately to manage of incalculable entities. The functional rationality approach is when activities precisely planned and estimated to reach some goal. This method is unlikely to be used by top managers because another important factors are involved such as ego or personal altitude. If there is no special procedure for a particular problem, manager should focus on how to turn a situation into the right way in accordance with expectations from their boss.
Some managerial people cannot make their own judgments. Instead, they are looking up and looking around for someone else’s opinion and finally they rely on it because of personal fears or inexperience. Another example of it is the mid-level decision-making paralysis in many American companies when a manager is trying to avoid of making a decision. In the case of inevitable decision, he or she would engage as many colleagues as possible for self-protection.
Many examples of recent administrative and economic problems within American companies have showed the tendency that managers are oriented to the short-term period when making decisions. This is due to the fact that MBA programs provide tools which are focuses mostly on a short-term attitude. The second reason would be that managers are under pressure for annual, quarterly, monthly and daily results and these factors push they out of thinking about the future, even though they realise that today’s minor difficulties could be tomorrow’s big crises.
Managers are also aware of blame time and when things go wrong it is necessary to be protected from consequences. This is the reason why they gravitate towards this fear being punished rather than reflecting critically. Bureaucracy disrupts working processes into parts and the