SAMPLE NOTES
SAMPLE NOTES
Learning outcome 3.1: Contrast the actions of managers according to the omnipotent and symbolic views. According to the omnipotent view, managers are directly responsible for an organisation’s success or failure. The symbolic view argues that much of an organisation’s success or failure is due to external forces outside managers’ control. The two constraints on managers’ discretion are the organisation’s culture (internal) and the environment (external). Managers are not totally constrained by these two factors, since they can and do influence their culture and environment. Learning outcome 3.2: Describe the four components in an organisation’s specific environment. An organisation’s specific environment is made up of four components that have a direct impact on managers’ decisions and actions and are directly relevant to the achievement of the organisation’s goals. The main forces that make up an organisation’s specific environment are customers, suppliers, competitors and pressure groups. Learning outcome 3.3: Describe the six factors in an organisation’s general environment. The external general environment includes those factors and forces outside the organisation that affect its performance. The main components include economic, demographic, political/legal, sociocultural, technological and global. Managers face constraints and challenges from these components because of the impact they have on jobs and employment, environmental uncertainty and stakeholder relationships. (The rest are available in the full purchase)
Learning outcome 6.1: Identify the eight steps in the decision-making process. A decision is a choice. The decision-making process consists of eight steps: (1) identify problem; (2) identify decision criteria; (3) weight the criteria; (4) develop alternatives; (5) analyse alternatives; (6) select alternative; (7) implement alternative; and (8) evaluate decision effectiveness. Learning outcome 6.2: Discuss the three ways managers make decisions. The assumptions of rationality are as follows: the problem is clear and unambiguous; a single, welldefined goal is to be achieved; all alternatives and consequences are known; and the final choice will maximise the payoff. Bounded rationality says that managers make rational decisions but are bounded (limited) by their ability to process information. Satisficing is when decision makers accept solutions that are good enough. Escalation of commitment is when managers increase commitment to a decision even when they have evidence it may have been a wrong decision. Intuitive decision making is making decisions on the basis of experience, feelings and accumulated judgment. Learning outcome 6.3: Explain the two types of problems and decisions. Programmed decisions are repetitive decisions that can be handled by a routine approach and are used when the problem being resolved is straightforward, familiar and easily defined (structured). Non-programmed decisions are unique decisions that require a custom-made solution and are used when the problems are new or unusual (unstructured) and for which information is ambiguous or incomplete. (The rest are available in the full purchase)
Learning outcome 3.1: Contrast the actions of managers according to the omnipotent and symbolic views. According to the omnipotent view, managers are directly responsible for an organisation’s success or failure. The symbolic view argues that much of an organisation’s success or failure is due to external forces outside managers’ control. The two constraints on managers’ discretion are the organisation’s culture (internal) and the environment (external). Managers are not totally constrained by these two factors, since they can and do influence their culture and environment. Learning outcome 3.2: Describe the four components in an organisation’s specific environment. An organisation’s specific environment is made up of four components that have a direct impact on managers’ decisions and actions and are directly relevant to the achievement of the organisation’s goals. The main forces that make up an organisation’s specific environment are customers, suppliers, competitors and pressure groups. Learning outcome 3.3: Describe the six factors in an organisation’s general environment. The external general environment includes those factors and forces outside the organisation that affect its performance. The main components include economic, demographic, political/legal, sociocultural, technological and global. Managers face constraints and challenges from these components because of the impact they have on jobs and employment, environmental uncertainty and stakeholder relationships. (The rest are available in the full purchase)
Learning outcome 6.1: Identify the eight steps in the decision-making process. A decision is a choice. The decision-making process consists of eight steps: (1) identify problem; (2) identify decision criteria; (3) weight the criteria; (4) develop alternatives; (5) analyse alternatives; (6) select alternative; (7) implement alternative; and (8) evaluate decision effectiveness. Learning outcome 6.2: Discuss the three ways managers make decisions. The assumptions of rationality are as follows: the problem is clear and unambiguous; a single, welldefined goal is to be achieved; all alternatives and consequences are known; and the final choice will maximise the payoff. Bounded rationality says that managers make rational decisions but are bounded (limited) by their ability to process information. Satisficing is when decision makers accept solutions that are good enough. Escalation of commitment is when managers increase commitment to a decision even when they have evidence it may have been a wrong decision. Intuitive decision making is making decisions on the basis of experience, feelings and accumulated judgment. Learning outcome 6.3: Explain the two types of problems and decisions. Programmed decisions are repetitive decisions that can be handled by a routine approach and are used when the problem being resolved is straightforward, familiar and easily defined (structured). Non-programmed decisions are unique decisions that require a custom-made solution and are used when the problems are new or unusual (unstructured) and for which information is ambiguous or incomplete. (The rest are available in the full purchase)
