In the Administrative Man Theory , the economic man is the all-knowing completely rational decision-maker who finds the best possible choice. Simon described the "economic" man, who knows everything and therefore can make the perfect decision. In reality, no decision maker can fit the economic man profile. In the Administrative Man Theory, the administrative man has limited knowledge of the choices and their consequences, and chooses the first option that meets his criteria. In contrast to the economic man, the administrative man does not know everything--he cannot find the perfect answer, he chooses what meets the criteria. The Economic Man uses the strategy of optimizing, or finding the best possible choice. The Administrative Man uses the strategy of satisficing, or choosing the first choice which meets his criteria. Herbert Simon defined three phases in decision-making--intelligence, design, and choice. Intelligence involves gathering knowledge to base decisions on. Design involves listing the possible courses of action. Choice is where a course of action is chosen. Management - process taking place in an organization, consisting of interrelated functions which must be accomplished for the organization to be effective. Management is this process, and consists of planning, organizing, staffing, directing, and controlling. Planning ( considered to be the most fundamental one from which the others stem) involves defining goals and a purpose for the organization, planning alternative courses of action, and basically preparing for the future by setting goals, planning for various contingencies, etc. Organizing involves dividing up the work, grouping resources, establishing a structure of authority and responsibility, grouping the resources, and coming up with ways to coordinate the parts. The function where human resources is defined. It is characterized by a manager assigning employees tasks and granting them the authority to complete them. Staffing involves selecting, placing, utilizing, and taking care of employees. The staffing function is also known as personnel management and human resources management.
Directing also known as leading, involves guiding and influencing the employees to seek organizational objectives. Directing also involves getting the employees to work towards the organization's goals. Controlling function of management involves assuring the organizational and managerial objectives are accomplished -considered the opposite of the planning function. In the control function, we measure and observe how well the plans are working. Also involves making sure that things are going according to plan Managerial grid or Leadership Grid developed by Robert Blake and Jane Mouton in the early 1960s,.
- Winter '12
- Management, scientific management