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E. FRANK HARRISON
Fifth Edition
The Managerial
Decision-Making Process
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The Managerial Decision-Making Process
Fifth Edition
Author: E. Frank Harrison, Ph.D.
Slides by Monique A. Pelletier, Ph.D.
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Values forDecision Making
Chapter 4
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The Basics Properties of Values
(contd)
n Values comprise a guidance system
for decision making.
n Values permeate the entire process of
choice.
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Rokeachs Typology of Human Values
n Terminal Values
l Personal values
l Social values
nInstrumental Valuesl Competence values
l Moral values
nManagerial Valuesl Competence values
l Personal values
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Figure 4.1 A Typology of Human Values
Instrumental
values Personalvalues
Terminal values
Competence
values
Moral
values
I II
III IV
Socialvalues
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Englands Study of Managerial
Values, No. 1
n Operating values
lvalues of greater importance
n Non operating values
lvalues of lesser importance
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Englands Study of Managerial
Values, No. 2n Goals of business organizations
n
Personal goals of individualsn Groups of people
n Ideas associated with people
n Ideas about general topics
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Table 4.1 Ranking of Managerial Values by Category
Ideas Ideas about
Goals of Business Personal Goals Associated General
Organizations of Individuals Groups of People with People
Topics
Organizational efficiency* Achievement* My company* Ability*
Change*
High productivity* Success* Customers* Ambition*
Competition*
Profit maximization* Creativity* Managers* Skill* Authority
Organizational growth* Job satisfaction* My boss* Cooperation*
Caution
Industrial leadership* Individuality My subordinates*
Aggressiveness Compromise
Organizational stability* Money Technical employees* Loyalty
ConflictEmployee welfare Influence Employees* Trust
Conservatism
Social welfare Prestige Me* Honor Emotions
Autonomy My coworkers* Tolerance Equality
Dignity Craftsmen* Prejudice Force
Security Owners* Obedience Liberalism
Power Stockholders* Compassion Property
Leisure White-collar employees* Conformity Rationality
Blue-collar workers Religion
Government Risk
Laborers
Labor unions
*Operating values of high importance
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A Conceptualization of Managerial
Valuesn Individual values
n
Organizational valuesn Organizational/Individual values =
Managerial values
n Managerial values are a composite of
diminishing individual values and
overlapping organizational values
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Figure 4.2 Profile of Managerial Values
OrganizationalValues
ManagerialValues
IndividualValues
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Ethical Behavior
n Ethics constitute the normative
standards for management decision
making.n In reality, ethics change to fit the
attitude of the decision maker and the
specific variables in the decision athand.
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Ethical Behavior (contd)
n Therefore, ethics comprise a
transitional phenomenon in managerial
decision making.n Although declaredly normative, ethics
are highly subjective and ephemeral.
n It is tenuous to judge a managerial
decision on its ethical merits.
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Value Conflicts
n Value conflicts between the individual
and the organization
n Value conflicts between theorganization and society
n Value conflicts are inevitable at all
levels.
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Value Conflicts (contd)
n Value conflicts may have favorable or
unfavorable consequences.
n Higher levels of management tend tohave fewer value conflicts
because they
personify the values of the
organization.
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Value Judgments
n The term judgmentis not synonymous
with the term decision.
n Judgment involves evaluation andcategorization.
n Decision involves commitment and
action.
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Value Judgments (contd)
n A value judgment is a special type of
evaluation or categorization applied to
a decision-making situation.n Value judgments provide a basis
for
making and implementing decisions,
but they are not a surrogate for anypart of the decision-making
process.
