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CHAPTER 8
MANAGERIAL DECISION MAKING
CHAPTER OUTLINE
I. How Do You Make Decisions?
II. Types of Decisions and Problems
A. Programmed and Nonprogrammed Decisions
B. Facing Certainty and Uncertainty
III. Decision-Making Models
A. The Ideal, Rational Model
B. How Managers Actually Make Decisions
C. New Manager’s Self-Test: Making Important Decisions
D. The Political Model
IV. Decision-Making Steps
A. Recognition of Decision Requirement
B. Diagnosis and Analysis of Causes
C. Development of Alternatives
D. Selection of Desired Alternative
E. Implementation of Chosen Alternative
F. Evaluation and Feedback
V. Personal Decision Framework
VI. Why Do Managers Make Bad Decisions?
VII. Innovative Group Decision Making
A. Start with Brainstorming
B. Engage in Rigorous Debate
C. Avoid Groupthink
D. Know When to Bail
ANNOTATED LEARNING OBJECTIVES

After studying this chapter, students should be able to:
1. Explain why decision making is an important component of good management.
Every organization grows, prospers, or fails as a result of decisions made by its managers.
Managers are often referred to as decision makers. Good decision making is a vital part of good
management. Decisions determine how the organization solves its problems, allocates resources,
and accomplishes its objectives. Decision making is not easy. It must be done amid
ever-changing factors, unclear information, and conflicting points of view. Plans and strategies
are arrived at through decision making. The better the decision making, the better the strategic
planning.
128
Managerial Decision Making • 129
2. Discuss the difference between programmed and nonprogrammed decisions and the decision
characteristics of certainty and uncertainty.
Programmed decisions involve situations that have occurred often enough to enable decision
rules to be developed and applied in the future. Once managers formulate decision rules,
subordinates and others can make the decision, freeing managers for other tasks.
Nonprogrammed decisions are made in response to situations that are unique, are poorly defined
and largely unstructured, and have important consequences for the organization. Many
nonprogrammed decisions involve strategic planning because uncertainty is great and decisions
are complex.
Every decision situation can be organized on a scale according to the availability of information
and the possibility of failure. Certainty means that all the information the decision maker needs
is fully available. However, few decisions are certain in the real world. Most contain some
uncertainty. Uncertainty means that managers know which goals they wish to achieve, but
information about alternatives and future events is incomplete.
3. Describe the ideal, rational model of decision making and the political model of decision
making.
The classical model of decision making is considered to be normative, which means it defines
how a decision maker should make decisions. It is based on rational economic assumptions and
manager beliefs about what ideal decision making should be. It does not describe how managers
actually make decisions so much as it provides guidelines on how to reach an ideal outcome for
the organization. The classical model is most valuable when applied to programmed decisions
and to decisions characterized by certainty or risk because information is available and
probabilities can be calculated. The classical model is often associated with high performance
for organizations in stable environments.
The political model of decision making is useful for making nonprogrammed decisions when
conditions are uncertain, information is limited, and managers may disagree about what goals to
pursue or what course of action to take. The political model closely resembles the real
environment in which most managers and decision makers operate. Managers often engage in
coalition building in the political model of decision making. Coalition building is the process of
forming alliances among managers. The inability of managers to build coalitions often makes it
difficult or impossible for managers to get their decisions implemented.
4. Explain the process by which managers actually make decisions in the real world.
The administrative model describes how managers actually make decisions such as those
characterized by nonprogrammed decisions, uncertainty, and ambiguity. The administrative
model is considered to be descriptive. It assumes that managers do not have the time or
resources to make the optimal decision and therefore will be satisfied with the first decision that
meets the minimal criteria. Intuition based on past practice and experience is often used in this
model to make decisions. The application of the administrative model has been associated with
high performance in unstable environments in which decisions must be made rapidly and under
more difficult conditions.
130 • Chapter 8
5. Identify the six steps used in managerial decision making.
Whether a decision is programmed or nonprogrammed, or the manager follows the classical or

administrative model of decision making, six steps typically are associated with effective
decision-making processes. These six steps are:
• recognition of a decision requirement;
• diagnosis and analysis of causes;
• development of alternatives;
• selection of desired alternative;
• implementation of chosen alternative; and
• evaluation and feedback.
6. Describe four personal decision styles used by managers and explain the biases that
frequently cause managers to make bad decisions.
The directive style is used by people who prefer simple, clear-cut solutions to problems.
Managers with an analytical style like to consider complex solutions based on as much data as
they can gather. People who tend toward a conceptual style also like to consider a broad amount
of information. The behavioral style is characterized by having a deep concern for others as
individuals.
Most bad decisions are errors in judgment that originate in the human mind’s limited capacity
and in the natural biases managers display during decision making. Awareness of the following
six biases can help managers make more enlightened choices:
Being influenced by initial impressions. The mind often gives disproportionate weight to the
first information it receives when considering decisions. These initial impressions act as an
anchor to subsequent thoughts and judgments, leading to misguided decisions.
Justifying past decisions. People don’t like to make mistakes, so they continue to support a
flawed decision in an effort to justify or correct the past.
Seeing what you want to see. People frequently look for information that supports their existing
instinct or point of view and avoid information that contradicts it, affecting where they look for
information as well as how they interpret the information they find.
Perpetuating the status quo. Managers may base decisions on what has worked in the past and
fail to explore new options, dig for additional information, or investigate new technologies.
Being influenced by problem framing. The decision response of a manager can be influenced by
the mere wording of a problem. A single problem can be framed in vastly different ways that
can directly affect the decision choice.
Overconfidence. Before making a decision, managers have unrealistic expectations of their

ability to understand the risk and make the right choice. Overconfidence is greatest when
answering questions of moderate to extreme difficulty.
7. Identify and explain techniques for innovative group decision making.
One of the best known techniques for rapidly generating creative alternatives is brainstorming.
Brainstorming uses a face-to-face group to spontaneously suggest a broad range of alternatives
for decision making. The keys to effective brainstorming are that people can build on one
another’s ideas, all ideas are acceptable no matter how crazy they seem, and criticism and
evaluation are not allowed. The goal is to generate as many ideas as possible.
An important key to better decision making under conditions of uncertainty is to encourage a

rigorous debate of the issue at hand. Good managers recognize that constructive conflict based
on different points of view can focus a problem, clarify ideas, and stimulate creative thinking. It
can also create a broader understanding of issues and alternatives, and improve broader decision
quality. Two common ways to accomplish this are having a devil’s advocate to challenge the
group’s assumptions and assertions, and engaging in point-counterpoint by giving two subgroups
competing responsibilities.
Avoiding groupthink helps groups make better decisions. Groupthink refers to the tendency of
people in groups to suppress contrary opinions. When people slip into groupthink, the desire for
harmony outweighs concerns over decision quality. Group members emphasize maintaining
unity rather than realistically challenging problems and alternatives. Some disagreement and
conflict is much healthier than blind agreement.
Managers need to know when to bail; i.e., they must be able to discern when to pull the plug on
something that isn’t working. Escalating commitment means that organizations often continue to
invest time and money in a solution despite strong evidence that it is not appropriate to do so.
Managers might block or distort negative information because they don’t want to be responsible
for a bad decision, or might not accept that their decision is wrong.
LECTURE OUTLINE
I. HOW DO YOU MAKE DECISIONS?
Most of us make decisions automatically and without realizing that people have diverse decision-
making behaviors, which they bring to management positions. In addition, new managers
typically use a different decision behavior than seasoned executives. New managers often start
out with a more directive, decisive, command-oriented behavior and gradually move toward
more openness, diversity of viewpoints, and interactions with others as they move up the
hierarchy. This exercise helps students determine whether they typically make decisions more
like new managers or more like senior managers.
II. TYPES OF DECISIONS AND PROBLEMS

132 • Chapter 8
A decision is a choice made from available alternatives. Decision making is the process of
identifying problems and opportunities and then resolving them. Decision making involves
effort both before and after the actual choice.
A. Programmed and Nonprogrammed Decisions
1. Programmed decisions involve situations that have occurred often enough to enable
decision rules to be developed and applied in the future. Once managers formulate
decision rules, subordinates and others can make decisions freeing managers for other
tasks.
2. Nonprogrammed decisions are made in response to situations that are unique,

poorly defined, largely unstructured, and likely to have important consequences for
the organization. Nonprogrammed decisions often involve strategic planning because
uncertainty is great and decisions are complex.
B. Facing Certainty and Uncertainty Exhibit 8.1
1. One difference between programmed and nonprogrammed decisions relates to the

degree of certainty or uncertainty that managers deal with in making the decision. In
a perfect world, managers have all the information necessary for making decisions.
In reality, some things are unknowable and some decisions will fail. Every decision
situation can be organized on a scale according to the availability of information and
the possibility of failure. The four positions on the scale are certainty, risk,
uncertainty, and ambiguity.
a. Certainty means that all the information the decision maker needs is fully
available. Few decisions are certain in the real world. Most contain risk or
uncertainty.
b. Risk means a decision has clear-cut objectives and good information available.
The future outcomes associated with each alternative are subject to chance;
however, enough information is available to allow the probability of a successful
outcome for each alternative to be estimated.
c. Uncertainty means managers know which goals they wish to achieve, but
information about alternatives and future outcomes is incomplete. Factors that
may affect a decision, such as price, production costs, volume, or future interest
rates, are difficult to analyze and predict. Managers may have to come up with
creative approaches to alternatives and use personal judgment to determine which
alternative is best. Many decisions made under uncertainty do not produce the
desired results, but managers face uncertainty every day.
d. Ambiguity means that the goal to be achieved or the problem to be solved is

unclear, alternatives are difficult to define, and information about outcomes is
unavailable. Ambiguity has been called a wicked decision problem, with
conflicts over goals and decision alternatives, changing circumstances, fuzzy
information, and unclear linkages among decision elements. Some managers
come up with a “solution” only to realize that they hadn’t clearly defined the real
problem. Ambiguity is by far the most difficult decision situation.
Discussion Question #3: Explain the difference between risk and ambiguity. How might
decision making differ for a risky versus an “ambiguous” situation?
NOTES________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
III. DECISION-MAKING MODELS Exhibit 8.2
Decisions are usually made using the classical, the administrative, or the political decision
making model. The choice of model used depends on the manager’s personal preference,
whether the decision is programmed or nonprogrammed, and the degree of uncertainty
associated with the decision.
A. The Ideal, Rational Model
1. The classical model of decision making is based on assumptions that managers

should make logical decisions that will be in the organization’s best economic
interests. The four assumptions include:
a. The decision maker operates to accomplish goals that are known and agreed upon.
b. The decision maker strives for conditions of certainty, gathering complete

information.
c. Criteria for evaluating alternatives are known.
d. The decision maker is rational and uses logic to assign values, order preferences,
evaluate alternatives, and make the decision to maximize goals.
2. The classical model is normative, defining how a decision maker should make
decisions, and providing guidelines for reaching an ideal outcome for the
organization. The value of the classical model has been to help decision makers be
more rational.
3. The classical model represents an “ideal” model of decision making that is often
unattainable by real people in real organizations. It works best when applied to
programmed decisions and to decisions characterized by uncertainty or risk because
relevant information is available and probabilities can be calculated.
Discussion Question #8: List some possible advantages and disadvantages to using computer
technology for managerial decision making.
NOTES________________________________________________________________________
134 • Chapter 8
______________________________________________________________________________
______________________________________________________________________________
B. How Managers Actually Make Decisions
1. Bounded Rationality and Satisficing
a. The administrative model is considered to be descriptive, meaning that it

describes how managers actually make decisions rather than how they should
make them. Herbert A. Simon proposed two concepts instrumental in shaping the
administrative model: bounded rationality and satisficing.
b. Bounded rationality means people have limits, or boundaries, on the amount of

information they can process in making a decision. Because managers do not
have the time or ability to process complete information about complex decisions,
they must satisfice.
c. Satisficing means that decision makers choose the first solution alternative that
satisfies minimal decision criteria. Rather than pursue all alternatives, managers
will opt for the first solution that appears to solve the problem. The decision
maker cannot justify the time and expense of obtaining complete information.
d. According to the administrative model:
• Decision goals often are vague, conflicting, and lack consensus.
• Rational procedures are not always used, and when they are, they are confined
to a simplistic view of the problem that does not capture the complexity of
real events.
• Managers’ searches for alternatives are limited because of human,

information, and resource constraints.
• Most managers settle for a satisficing rather than a maximizing solution.
2. Intuition
a. Intuition is another aspect of administrative decision making. Intuition

represents a quick apprehension of a decision situation based on past experience
but without conscious thought. Intuitive decision making is not arbitrary or
irrational because it is based on years of practice and hands-on experience.
b. Intuition begins with recognition; when people build a depth of experience and
knowledge in a particular area, the right decision often comes quickly and
effortlessly. Research on the validity of intuition in decision making is
inconclusive, suggesting that managers should take a cautious approach to it,
applying intuition only under the right circumstances and in the right way.
Discussion Question #9: Do you think intuition is a valid approach to making decisions in an
organization? Why or why not? How might intuition be combined with a rational decision
approach?
NOTES________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
C. New Manager’s Self-Test: Making Important Decisions
1. This exercise helps students determine whether they prefer to make decisions using
the rational model or a satisficing or intuition model.
D. Political Model
1. This model is for nonprogrammed decisions when conditions are uncertain,

information is limited, and there is disagreement about the goals to pursue or the
action to take. Managers often engage in coalition building for making complex
organizational decisions. A coalition is an informal alliance among managers who
support a specific goal. Coalition building is the process of forming alliances among
managers. The inability of managers to build coalitions often makes it difficult or
impossible for them to get their decisions implemented. The political model closely
resembles the real environment in which most managers and decision makers operate.
The political model begins with four basic assumptions.
a. Organizations are made up of groups with diverse interests, goals, and values.
b. Information is ambiguous and incomplete.
c. Managers do not have time, resources, or mental capacity to identify all

dimensions of the problem and process all relevant information.
d. Managers engage in the push and pull of debate to decide goals and discuss
alternatives.
2. Recent research has found rational, classical procedures to be associated with high
performance for organizations in stable environments. Administrative and political
decision-making procedures and intuition have been associated with high
performance in unstable environments when decisions must be made rapidly.
Discussion Question #4: Analyze three decisions you have made over the past six months.
Which of these were programmed and which were nonprogrammed? Which model—the
classical, administrative, or political—best describes the approach you took to make each
decision?
NOTES________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
136 • Chapter 8
IV. DECISION-MAKING STEPS Exhibit 8.3
A. Recognition of Decision Requirement
1. Managers confront a decision requirement in the form of either a problem or an

opportunity. A problem occurs when organizational accomplishment is less than
established goals. Some aspect of performance is unsatisfactory. An opportunity
exists when managers see potential accomplishments that exceed current goals.
2. Awareness of a problem or opportunity is the first step in the decision sequence and
requires surveillance of the internal and external environment for issues that merit
executive attention. Recognizing decision requirements is difficult because it often
means integrating information in novel ways.
B. Diagnosis and Analysis of Causes
1. Diagnosis is the step in which managers analyze the underlying causal factors
associated with the decision situation. Managers make a big mistake if they jump
right into generating alternatives without first exploring the cause of the problem
more deeply. Studies recommend that a series of questions be asked.
a. What is the state of disequilibrium affecting us?
b. When did it occur?
c. Where did it occur?
d. How did it occur?
e. To whom did it occur?
f. What is the urgency of the situation?
g. What is the interconnectedness of events?
h. What result came from which activity?
C. Development of Alternatives
1. Once the problem or opportunity has been recognized and analyzed, decision makers
begin to consider taking action. The next step is to develop possible alternative
solutions that will respond to the needs of the situation and correct the underlying
causes.
2. For a programmed decision, feasible alternatives are often available within the
organization’s rules and procedures. Nonprogrammed decisions require developing
new courses of action that will meet the needs of the company.
D. Selection of Desired Alternative
1. The best alternative is one in which the solution best fits the firm’s overall goals and
values and achieves the desired results using the fewest resources. The manager tries
to select the choice with the least amount of risk and uncertainty. Making choices
also depends on managers’ personality factors and willingness to accept risk and
uncertainty. Risk propensity is the willingness to undertake risk with the
opportunity of gaining an increased payoff.
E. Implementation of Chosen Alternative Exhibit 8.4
1. The implementation of a chosen alternative involves the use of managerial,

administrative, and persuasive abilities to ensure that the chosen alternative is carried
out. The success of the chosen alternative depends on whether or not it is translated
into action. Sometimes an alternative never becomes reality because managers lack
resources or energy needed to make things happen. Communication and leadership
skills must be used to see that the decision is carried out.
F. Evaluation and Feedback
1. In the evaluation step, decision makers gather information or feedback to determine

how well the decision was implemented and whether it achieved its goals. Feedback
is important because decision making is a continuous, never-ending process.
Feedback provides decision makers with information that can start a new decision
cycle.
2. By learning from decision mistakes, managers can turn problems into opportunities.
NOTES________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
Discussion Question #1: You are a busy partner in a legal firm, and an experienced secretary
complains of continued headaches, drowsiness, dry throat, and occasional spells of fatigue and
flu. She tells you she believes air quality in the building is bad and would like something to be
done. How would you respond?
NOTES________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
V. PERSONAL DECISION FRAMEWORK Exhibit 8.5

138 • Chapter 8
Not all managers make decisions in the same way. These differences can be explained by the
concept of personal decision styles. Personal decision style refers to differences between people
with respect to how they perceive problems and make decisions. Research has identified four
major decision styles.
• The directive style is used by people who prefer simple, clear-cut solutions to problems.
• With an analytical style, managers like to consider complex solutions based on as much data
as they can gather.
• People who tend toward a conceptual style also like to consider a broad amount of
information.
• The behavioral style is characterized by having a deep concern for others as individuals.
Most managers have a dominant decision style. The most effective managers are able to shift
among styles as needed to meet the situation.
Discussion Question #11: What do you think is your dominant decision style? Which style are
you most comfortable using? Which style feels least comfortable? What are the implications for
the type of job you might want to seek?
NOTES________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
VI. WHY DO MANAGERS MAKE BAD DECISIONS?
Even the best manager will make mistakes, but managers can increase their percentage of good
decisions by understanding some of the factors that cause people to make bad ones. Most bad
decisions are errors in judgment that originate in the human mind’s limited capacity and in the
natural biases managers display during decision making. Awareness of the following six biases
can help managers make more enlightened choices:
• Being influenced by initial impressions. The mind often gives disproportionate weight to the
first information it receives when considering decisions. These initial impressions act as an
anchor to subsequent thoughts and judgments, leading to misguided decisions.
• Justifying past decisions. People don’t like to make mistakes, so they continue to support a
flawed decision in an effort to justify or correct the past.
• Seeing what you want to see. People frequently look for information that supports their
existing instinct or point of view and avoid information that contradicts it, affecting where
they look for information as well as how they interpret the information they find.
• Perpetuating the status quo. Managers may base decisions on what has worked in the past
and fail to explore new options, dig for additional information, or investigate new
technologies.
• Being influenced by problem framing. The decision response of a manager can be influenced
by the mere wording of a problem. A single problem can be framed in vastly different ways
that can directly affect the decision choice.
• Overconfidence. Before making a decision, managers have unrealistic expectations of their

ability to understand the risk and make the right choice. Overconfidence is greatest when
answering questions of moderate to extreme difficulty.
VII. INNOVATIVE GROUP DECISION MAKING
A. Start with Brainstorming
1. One of the best known techniques for rapidly generating creative alternatives is
brainstorming. Brainstorming uses a face-to-face group to spontaneously suggest a
broad range of alternatives for decision making. The keys to effective brainstorming
are that people can build on one another’s ideas, all ideas are acceptable no matter
how crazy they seem, and criticism and evaluation are not allowed. The goal is to
generate as many ideas as possible.
2. Electronic brainstorming, called brainwriting, brings people together in an

interactive group over a computer network. Recent studies show that electronic
brainstorming generates about 40 percent more ideas than individual brainstorming
alone and 25 to 200 percent more than groups.
B. Engage in Rigorous Debate
1. An important key to better decision making under conditions of uncertainty is to

encourage a rigorous debate of the issue at hand. Good managers recognize that
constructive conflict based on different points of view can focus a problem, clarify
ideas, and stimulate creative thinking. It can also create a broader understanding of
issues and alternatives, and improve broader decision quality. There are several ways
to stimulate rigorous debate.
a. One way is by ensuring diversity in terms of age and gender, functional area of
expertise, hierarchical level, and experience with the business.
b. Some groups assign a devil’s advocate, who has the role of challenging the
assumptions and assertions made by the group.
c. Another approach is to have group members develop as many alternatives as they

can as quickly as they can.
d. Another approach is technique called point-counterpoint, a technique in which

two subgroups assigned competing points of view. The two groups then develop
and exchange proposals and discuss the various options until they arrive at a
common set of understandings.
140 • Chapter 8
C. Avoid Groupthink
1. Avoiding groupthink helps groups make better decisions. Groupthink refers to the
tendency of people in groups to suppress contrary opinions. When people slip into
groupthink, the desire for harmony outweighs concerns over decision quality. Group
members emphasize maintaining unity rather than realistically challenging problems
and alternatives. Some disagreement and conflict is much healthier than blind
agreement.
D. Know When to Bail
2. Even though the new workplace encourages risk taking and learning from mistakes, it
also teaches a person to know when to pull the plug on something that isn’t working.
Escalating commitment means that organizations often continue to invest time and
money in a solution despite strong evidence that it is not appropriate to do so.
Managers might block or distort negative information because they don’t want to be
responsible for a bad decision, or might not accept that their decision is wrong.
Answers To End Of Chapter Discussion Questions

1. You are a busy partner in a legal firm and an experienced secretary complains of headaches,
drowsiness, dry throat, and occasional spells of fatigue and flu. She tells you she believes air
quality in the building is bad and would like something done. How would you respond?
Students should apply the decision-making steps to solve this problem. The first step is
recognition of decision requirement. The manager must determine if there truly is a problem
with the air quality that needs to be solved. Discussions with others and, if warranted, testing the
air quality should help make this determination. If a problem does indeed exist, the next step is
the diagnosis and analysis of the causes of the poor air quality. The testing may reveal this. If
needed, further tests by experts in the field should be made to determine the cause. Once the
cause has been determined, the development of alternatives to eliminate the cause should be
developed. The selection of desired alternatives is the next step during which the risk must be
considered and the pros and cons of each alternative must be weighed. After an alternative has
been chosen, the chosen alternative should be implemented. After an appropriate time
evaluation of the alternative should be made and feedback provided.
2. Why do you think decision making is considered a fundamental part of management

effectiveness?
Decision making is especially important to effectiveness because it underlies all manager

activity. Managers are faced with limited resources, competing demands, and a continuous
stream of problems and opportunities. As a result, managers make decisions every day—and
hence are often referred to as decision makers. They make decisions about virtually every aspect
of an organization including its strategy, structure, control systems, innovations, and human
resources. They must make decisions to perform the basic functions of planning, organizing,
motivating, and controlling. Managerial decision making ultimately determines how well the
organization solves its problems, allocates resources, and accomplishes its objectives.
3. Explain the difference between risk and ambiguity. How might decision making differ for a
risky versus an “ambiguous” situation?
Risk means that the decision maker has most of the necessary information. The objectives of the
decision are clear-cut, and alternatives can be identified. However, the future outcome of each
alternative is not known for certain, although the probability of outcomes can be calculated,
which is the source of risk. Ambiguity means the almost complete absence of information
pertaining to a decision. Managers do not agree on the objectives to be achieved by the decision,
alternatives are difficult to find, and outcomes cannot be predicted.
Decision-making approaches differ considerably for each situation. For decisions under risk, a
rational, calculative approach is preferred. The managers’ responsibility is to obtain the
available information and run necessary computations in order to predict outcomes and select the
best alternative. Decisions under ambiguity are more difficult. In these cases managers do not
have sufficient information to perform computations. They must rely on personal judgment and
experience to define alternatives and to anticipate possible outcomes of each alternative. Under
ambiguity, managers have to take a chance and push ahead with decisions, even though they
have poor information and will be wrong a substantial percentage of the time.
4. Analyze three decisions you made over the past six months. Which of these were
programmed and which were nonprogrammed? Which model—the classical, administrative,
or political—best describes the approach you took to make each decision?
A programmed decision would refer to a situation that has occurred often enough so that a
student can use past experience and similar decision rules over and over again. Programmed
decisions are considered routine. A nonprogrammed decision would refer to a novel, unique,
and largely unstructured decision situation that requires a student to search for possible
alternatives and information and to make a decision that has not been made previously.
An example of a programmed decision might be where to go to lunch or where to park the car.
A nonprogrammed decision could be the choice of a major field of study, a decision that the
student may have made after taking aptitude tests and investigating a number of career choices.
Although the student may already be studying for the chosen career field, whether the decision
was correct still may not be perfectly clear.
The specific decisions students choose, and the decision-making processes they used, will
determine their answers to the last part of this question, but they should be able to explain why
they believe a particular model best describes their approach.
5. What opportunities and potential problems are posed by the formation of more than one
coalition within an organization, each one advocating a different direction or alternatives?
What steps can you take as a manager to make sure that dueling coalitions result in
constructive discussion rather than dissension?
142 • Chapter 8
When more than one coalition forms within an organization, with each advocating a different
direction or alternative, there are significant opportunities for constructive dialogue and
enhanced decision making, but only if the coalitions are able to come together and work toward a
direction or alternative that both coalitions can support. If that does not happen, the potential
exists for serious fractures to develop among managers. The situation could devolve into
widespread backbiting and undermining of coworkers, which would lead to substantial
performance and morale problems in the organization.
If dueling coalitions develop over a single issue, relevant managers should immediately begin
working to bring the two (or more) coalitions together to work out a plan both can accept. This
may initially mean working with the coalitions individually to find common ground that can later
be emphasized in trying to work out an agreement. Once some common ground is identified, the
individual coalitions can be brought together to work out a direction or alternative that both (all)
coalitions can accept.
6. Can you think of a bad decision from your own school or work experience or from the recent
business or political news that was made in an effort to correct or justify a past decision? As
a new manager, how might you resist the urge to choose a decision alternative based on the
idea that it might correct or validate a previous decision?
Students’ descriptions of past bad decisions will obviously vary. As new managers, it will be
important for them to avoid making decisions based on the idea that they might correct or
validate previous decisions. This might be accomplished by first acknowledging that the original
decision was a mistake, which is difficult for people to do. However, once this acknowledgment
is made, managers can then move on to make decisions based on the facts at hand rather than in
an attempt to correct or validate previous decisions. Another way to avoid making this mistake
might be to have someone in the decision-making process tasked with challenging the
assumptions related to the current decision; i.e., to specifically raise the question of whether the
current decision is being made to justify some previous decision that was in error.
7. As a new, entry-level manager, how important is it to find ways to compensate for your
relative lack of experience when trying to determine which alternative before you is most
likely to succeed? What are some ways you can meet this challenge?
Finding ways to compensate for inexperience in decision making is critical to identifying the
alternative most likely to succeed. A new, entry-level manager who fails to do so will soon be
marginalized or even fired as a result of making too many poor decisions. Such a person simply
does not have the requisite knowledge or wisdom to sort out the complex issues involved in
many managerial decisions.
New, entry-level managers can seek advice from a variety of coworkers as part of their decision-
making process. They can also try to research the many facets of the decision at hand, including
collecting information on how such decisions have been handled in the past. One of the best
ways to meet the challenge of inexperience is to find someone in the organization who has
substantial experience in the company and the industry who is willing to serve as a mentor. A
mentor can serve as a sounding board for the new manager, offering suggestions for
improvement of an idea or explaining why the idea should be dismissed altogether. Mentors
have substantial wisdom that they can share with new managers to help them “learn the ropes”,
including learning the ropes of decision making.
8. List some possible advantages and disadvantages to using computer technology for
managerial decision making.
Advantages of using computers in making managerial decisions would be increased accuracy,

timeliness, and reliability of information to improve managerial decision making. A
disadvantage of using computers in managerial decision making is that inputting the wrong data
produces incorrect information that will be used in substantial managerial decisions.
9. Do you think intuition is a valid approach to making decisions in organizations? Why or

why not? How might intuition be combined with a rational decision approach?
Intuition or a “gut” feeling, especially where it is forthcoming from experience, can be useful in
management decision making. When time is of the essence, intuition can be a valid predictor of
decision making. Individuals can use intuition to become more creative and risk taking in
making decisions. Intuition can be combined with a rational decision-making approach to
improve decision making. A rational approach is developing a decision-making style that is
based on more complete data. This approach, when utilized, develops criteria, alternative
options, evaluation of alternatives, and attempts to improve decision making based on more
complete data. This, in turn, minimizes risks and improves decision making when combining
intuition with a rational approach.
10. What do you think is your dominant decision style? Which style are you most comfortable
using? Which style feels least comfortable? What are the implications for the type of job
you might want to seek?
Students’ responses will, of course, be very different. They should, however, demonstrate an
understanding of the various decision styles.
Managers who use this style often make decisions quickly because they do not like to deal with a
lot of information and may consider only one or two alternatives. People who prefer the
directive style generally are efficient and rational and prefer to rely on existing rules or
procedures for making decisions. These students may be more comfortable with jobs in which
the work is fairly regimented and where most decisions will be programmed decisions.
People with an analytical style like to consider complex solutions based on as much data as they
can gather. These individuals carefully consider alternatives and often base their decisions on
objective, rational data from management control systems and other sources. They search for the
best possible decision based on the information available. These students may be more
comfortable in highly technical jobs where large volumes of data can be gathered and applied to
the decision-making process.
People who tend toward a conceptual style also like to consider a broad amount of information.
However, they are more socially oriented than those with an analytical style and like to talk to
others about the problem and possible alternatives for solving it. Managers using a conceptual
144 • Chapter 8
style consider many broad alternatives, rely on information from both people and systems, and
like to solve problems creatively. These students may be more comfortable in jobs that involve
many nonprogrammed decisions that require strong conceptual skills.
The behavioral style is often the style adopted by managers having a deep concern for others as
individuals. Managers using this style like to talk to people one-on-one and understand their
feelings about the problem and the effect of a given decision upon them. People with a
behavioral style usually are concerned with the personal development of others and may make
decisions that help others achieve their goals. These students may be more comfortable in
flatter, more participative organizations where employees are heavily involved in decision
making and are empowered to generate innovative solutions.
Teaching Note for Experiential Exercise

What’s Your Personal Decision Style?
Student responses will very regarding their own decision-making staff. For additional
information one is encouraged to review decision-making styles in the chapter. Personal
decision style refers to differences among people with respect to how they perceive problems and
make decisions. A suggestion would be to discus the four decision-making styles: directive,
analytical, conceptual, and behavioral.
Managers who use this style often make decisions quickly because they do not like to deal with a
lot of information and may consider only one or two alternatives. People who prefer the
directive style generally are efficient and rational and prefer to rely on existing rules or
procedures for making decisions.
People with an analytical style like to consider complex solutions based on as much data as they
can gather. These individuals carefully consider alternatives and often base their decisions on
objective, rational data from management control systems and other sources. They search for the
best possible decision based on the information available.
People who tend toward a conceptual style also like to consider a broad amount of information.
However, they are more socially oriented than those with an analytical style and like to talk to
others about the problem and possible alternatives for solving it. Managers using a conceptual
style consider many broad alternatives, rely on information from both people and systems, and
like to solve problems creatively.
The behavioral style is often the style adopted by managers having a deep concern for others as
individuals. Managers using this style like to talk to people one-on-one and understand their
feelings about the problem and the effect of a given decision upon them. People with a
behavioral style usually are concerned with the personal development of others and may make
decisions that help others achieve their goals.
Teaching Note for Ethical Dilemma

The No-Show Consultant
1. Give him a month’s notice and terminate. He’s known as a good consultant, so he probably
won’t have any trouble finding a new job, and you’ll avoid any further problems associated
with his emotional difficulties and his possible alcohol problem.
Option 1 is not the course of action to take. Alcoholism is not an uncommon disease, and it can
be treated; however, the urgency of this matter is the important factor. It is important to
recognize that Andrew can have a future with this organization if he seeks help. Acceptable
behavior is an important requirement of this job.
2. Let it slide. Missing the New York appointment is Carpenter’s first big mistake. He says he
is getting things under control and you believe he should be given a chance to get himself
back on track.
Option 2 is not desirable. Care must be taken and concerns expressed to Andrew. He is
beginning to develop a pattern of behavior. If the alcohol abuse continues, require him to attend
a treatment program or find another job. There should be an employee assistance program to
permit Andrew to get help and external counseling.
3. Let Carpenter know that you care about what he’s going through, but insist that he take a
short paid leave and get counseling to deal with his emotional difficulties and evaluate the
seriousness of his problems with alcohol. If the alcohol abuse continues, require him to
attend a treatment program or find another job.
This is probably the best course of action. Andrew needs support and help, but cannot continue
his present pattern of behavior.
Case for Critical Analysis

Pinnacle Machine Tool Company
1. What steps in the decision-making process have Don Anglos and Pinnacle taken? Which
ones have they not completed?
Don Anglos and Pinnacle have recognized the need for a decision and they do have a couple of
alternatives, but a reasonable argument can be made that they really have not diagnosed or
analyzed the causes of their problem or systematically developed alternatives. Don and Sam
Lodge think they know what the problem is, but from what we know in the case they have not
followed any particular process of discovering the real reason(s) for their current situation. The
cause(s) may be just what they think it is, but they don’t know that for sure without some serious
research. The only alternatives they have discussed are to acquire Hoilman or continue with
their present situation. Again, they have not engaged in any sort of systematic process of
developing alternatives. In addition, they have not selected or implemented an alternative, and
they are a long way from evaluating any implementation.
146 • Chapter 8
2. Which decision-making style best describes Don’s approach: directive, analytical,

conceptual, or behavioral? Which style best describes Sam Lodge’s approach?
Don’s appears to use a conceptual style of decision making. He likes to talk to others about the
problem and possible alternatives for solving it. He also seems to rely on information from both
people and systems, and likes to solve problems creatively.
Sam appears to use an analytical style of decision making. The case states that his position “was
based on his usual CFO thoroughness with number-crunching.”
3. Would you recommend that Pinnacle attempt to acquire Hoilman? Is so, why? If not, what
alternatives would you suggest?
Acquiring Hoilman at this point is probably not a good idea, based on Lodge’s arguments and
the reality that Anglos and his team have not implemented any systematic method of determining
the cause of their current situation or to develop other alternatives. We don’t know why the joint
venture with Hoilman didn’t work out, so there may be competitors of Hoilman with whom
Pinnacle could enter into a very effective and profitable joint venture. Pinnacle might also be
able to merge with one of its competitors that has already moved into the service end of the
industry, or they may be able to hire away the right people from such a competitor to initiate
their own service component.
Case for Critical Analysis
General Motors: Part Three: Planning

The Moment of Decision: Can Management Fix GM's Financial Crisis?
1. What planning approaches and methods might GM adopt to help manage its turbulent
environment and respond effectively to global economic crisis?
Contingency Planning: before the credit crisis hit, GM had in place a retrenchment plan that
included layoffs, plant closings, production cuts, and divestitures.
Scenario building: While GM could not have foreseen the 2008 credit freeze resulting from
subprime lending in the mortgage banking industry, the practice of scenario building would have
enabled GM's leaders to visualize worst-case scenarios and devise plans for how best to respond.
Crisis planning: Over decades, GM has developed positive trusted relationships with banks, the
federal government, and unions. These relationships are now providing needed support for the
company as it goes through crisis.
2. In what way does a merger solution to GM's financial crisis represent strategic thinking and
planning?
Although deep in the middle of crisis and going through retrenchment (layoffs, divestitures, plant
closings, production cuts), GM's merger solution demonstrates the application of strategic
thinking and planning. First, a merger with another Big Three company would allow GM to
acquire the target's profitable brands and cash reserves while selling off stagnant businesses,
consolidating production facilities, and liquidating leftover assets—an overall strengthening of
GM's core business. Second, a merger would immediately eliminate one competitor and put GM
way ahead of Toyota in global sales volume. So while management recognizes the immediate
need to raise cash, they also have the big picture in mind, and are taking into consideration GM's
competitive environment, competitive advantages, and opportunity to build new synergies.
3. As GM's managers continue making decisions that affect the company's ultimate survival,
what prevents them from making purely rational decisions, and what common decision-
making errors must they guard against?
In the real world, managers cannot make purely rational decisions due to time constraints,
limited knowledge of possible alternatives, limited information, uncertainty, and ambiguity. As a
result, they must select the best-known option that satisfies minimal decision criteria at the
time—a move known as satisficing. GM's managers must seek to avoid decision making errors
such as groupthink and escalating commitment.
Another random document with
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vieraalla valkeni luunsa, huuhtomat hyisen laineen, kattamat
kukkivan kauneuspuunsa, mainitsemattomat maineen.
1910.
Ildiko.
— Ildiko, Ildiko, Burgundin ilves, miksi sa murhasit mun? —

Attila, Attila, ah, älä kuole, kuolleista herätän sun!
— Ildiko, ah hius-himmeä, miksi

teit teon vilpillisen?
— Attila, ah sotalaumojen surma,
syy oli rakkauden.
— Rakkausko raudan sun morsius-yönäs

syöksi mun syömeeni näin?
— Miksi et hellemmin hehkunut mulle,
katsoit tähtihin päin?
— Katsoin ma tähdistä kohtalon teitä,

polkuja mun sekä sun.
— Ollut et enää hunnini hurja,
uskoton unhotit mun!
— En ole entinen Attila enää,

Jumalan vitsa ma lien.
— Surmaavat sulhonsa Burgundin neitseet,
tietävät petturin tien.
1912.
Turha kauna.
Turha sun mulle on kaunaa kantaa, retkeni rientää jo

taivahan rantaa, kohta, kohta sen taaksi haihtuva on elon
harhaisen haaksi.
Mahtuvat sinne syyttävät sanat,

laulujen laineet ja venhojen vanat,
kenties kun olen siellä,
muistaa voit mua muullakin miellä.
Koe mua hetkinen, hetkinen sietää!

Pyydä en suotta, sen Sallimus tietää,
sama, mi tielleni johti
Sun, jolle lempeni leimuta tohti.
Taikka jos ahdas on maapallo meille,

keskenkin tulla voin Tuonelan teille.
sattui jo surmaava nuoli,
voit pian virkkaa: ma voitin, hän kuoli.
Mut älä ilmaa myrkytä multa!

Tukehtuessakin syöksen ma tulta,
poltan tyrmäni, haen
ylleni taivahan talvisen laen.
1912.
Dies irae.
Ystäväni yksin lähti, jäin kuin kylmä taivon tähti katsomahan

kulkuansa, muistamahan murhettansa.
Eikö palausta konsa?

Ei, on tullut tuomionsa,
lyönyt hetki, juossut hiekka,
noussut kuolon kuuramiekka.
On nyt hetki suurin hällä:

ostettava elämällä
kutsumuksen kultamuru,
itselönsä ikisuru.
Sydän kiertyy synkän miehen.

Rauta iskee rautatiehen,
liehuu liina, katoo juna;
sammui pilven viime puna.
Nyt on tehty murhatyöni,

nyt on yksinäiset yöni,
nyt voin itkeä ma ilmi,
mitä kestin kuivin silmin.
Hulluus varmaan suuni sulki,

nyt voin huutaa tuskan julki:
tahtonut en itse tätä,
tein ma pakkotehtävätä!
Sull' on elo eessä, mulla

takanani tuiretulla.
Sulle ollut este oisin,
jos ma oisin tehnyt toisin.
Myöskin inha itselleni.

Särkyköön mun sydämeni,
menköön onni sun ja minun!
Nyt on voitonseppel sinun.
Vaan jos takaisin hän palaa?

Jos hän mua muistaa salaa?
Silloin helmahansa heityn,
syöksyn syvyyteen ja peityn!
1912.
Mennyt.
Putosivat puista lehdet, pilvilöistä sateet, ei pudonnut

tuskan taakka minun mielestäni,
Muutti linnut maille muille,

aalto jääksi jäätyi,
yksin yön pimeän lintu
rinnassani laulaa.
— Oi Jumala, sano minulle,

milloin kesä tulee?
— "Silloin, koska kirkonkellot
matkallesi soittaa."
— Oi Jumala, vielä virka,
milloin päivä nousee?
— "Silloin, kun vihanta virpi
kummullasi kukkii."
— Hyvä Jumala, etkö luule,

että armas palaa?
— "Palajaa, kun vieras sulho
vierellänsä kulkee."
— Lausu, laupias Jumala,

vielä viime sana:
yletänkö ystävääni
Tuonen tuolta puolen?
Vaiti on Jumala, vaiti

meri, maa ja metsä,
yksin yössä mielipuoli
puhelee ja huutaa,
1912.
Kevät kirkkahin.
Kevät kirkkahin, mitä virkkaisin, jos armahain tulis

vastahain?
"Älä muuta kuin

sula silmin, suin,
kuole riutuen
kera hankien!"
Kevät kirkkahin,
mitä virkkaisin,
jos antais hän
mulle elämän?
"Älä muuta kuin tee tenhoutuin vala valkoinen kera

kukkien!"
1912
Loukatut.
Orjat, kytketyt yhteen, loukatut sydämehen saakka,

ranteissa rautaiset kahleet, harteilla hallava taakka!
Emme me yhtyä voi,

emme myös erota saata,
lempiä emme, mut emme
myöskään lemmestä laata.
Tein minä vääryyttä sulle,

siitä mun sydämeni murtui,
teit sinä vääryyttä mulle,
siitä mun tunteeni turtui.
Sultakin kuollut on herkin.

Tiedän, se on oma syyni.
Menneet on onnemme keväät,
eess' ikitalvi on tyyni.
Mutta kun nään sinut jälleen,

silloin mun silmäni vettyy,
taas käsi hyljätty kohoo,
taas sydän pettynyt pettyy.
Nään, miten sielusi sunkin

kurkottaa mua kohti,
kuulen, kun sydämesi nyyhkii,
kerran mi toivoa tohti.
Lasket sa leikkiä jälleen;

taas käsi tarjottu vaipuu.
Muuta ei meillä kuin muistot,
murhe ja toistemme kaipuu.
Orjat, kytketyt yhteen,

loukatut sydämehen saakka,
ranteissa rakkauden kahleet,
harteilla töittemme taakka!
1912.
Runokirje.
Rakastettu, armastettu
iankaikkisesti!
Kuinka kuolis lempeni,
mi nyt jo kaikki kesti?
Saat Sa olla armoton

ja saat sa olla paha!
Jälleen kun ma muistan Sun,
ma sulan niinkuin vaha.
Saat Sa olla uskoton,

ja että ootkin, tiedän!
Kuolla olin kerran tuosta,
hymysuin nyt siedän.
Täällä, tähtitarhassani,
hiljaisuus on pyhä.
Tänne kuulut Sinä vain,
Sa ainut, armas yhä.
Tule tänne, tähti-yöhön,

tänne, niissä olit,
ennen kuin Sa menit pois
ja toisen omaks tulit!
Tääll' on taikalinna tehty

Sulle surun puista,
ollehesta onnestain
ja uuden haaveiluista.
Tule! Etkö nää jo, kuinka

sydämeni riutuu,
koko maailma ympärillä
himmenee ja hiutuu.
Sammuu sanat, säveleet,
ja kaikki kaunis hajoo.
Tule, tumma, armas lapsi!
Ylevinkin vajoo.
Mikä vaipuu, vaipukoon!

Mun rakkauteni kestää.
Suuri suru, suuri tieto
meiltä eron estää.
1912.
Näky.
Minä nään, miten isäsi muisto sun sielussas himmenee,

miten itsekin himmenen siellä ajan vierressä, vitkalleen; sama
kohtalo sunkin saartaa, myös sen, jota rakastat, pois, pois,
ah, ijäksi mennen, kera lempesi katoat.
Ah, kaukainen jälkipolvi, mi teet kuin kerran ma, mi

kurkoitat unikuvaa elon entävän kuilusta; se pettää, se pettää,
se pettää kuin hän, jolle lempeni jää, pois, pois, ah, ijäksi
mennen ikityhjyyteen häviää.
1912.
Maria Antoinette.
Maria! Miks suutelet mua, mun haaveeni haltiatar? Ma vaan
olen kreivi von Fersen, sa Ranskan valtiatar. Sun polkusi
kumpuja kulkee, ma mies olen alhainen, on liikaa jo, että sa
arvaat polon rintani rakkauden.
Maria! Maria! Miks jälleen mua suulle sa suutelet? Sen

nähdä voi vihamiesi, sitä varmaan sa muista et, hyvä nimesi
mulle on kallis, sun mainees on maine maan, jos lempemme
ilmi tulee, moni kulkevi kuolemaan.
Maria! Miks et mua kuule? Maria! Miks suutelet taas? Sua

eikö liikuta henkes, ei mainees, ei maine maas? Maria! Sa
tiedät, että sua yksin ma rakastan, vuoks lempeni nyt sinut
hylkään, käyn kaukaiseen sotahan.
Mitä mulleko jää, Maria? Pyhä lempeni mulle jää, jää mulle
mun onneni muistot ja puhdas tuntoni tää. Olet kallis sa mulle,
Maria, mut kalliimpi kuin sinäkin, on mulle mun kilpeni kirkas,
vala viimeisen ritarin.
1912.
Kunnia hälle!
Kysytään kerran,
kuinka en sortunut silloin,
kun olin kurja,
pelkäsin itseäni illoin,
kun koko maailma
vastassa seisoi kuin muuri,
eik' ollut mulla
muuta kuin murheeni.
Vastaan ma silloin:
ei ollut ansio oma,
sortunut oisin,
ollut jo raunio soma,
mutta mua auttoivat
maailman vaikeimmat kädet,
kirkkaimmat silmät,
vienoimmat kyynelevedet.
Hän teki kaikki,

minä en mahtanut mitään;
hän näki kaikki,
häntä mun siunata pitää;
kaikki hän kesti,
kaikki hän kärsi ja kantoi,
esiin rakasti, —
rohkaisi, anteeksi antoi.
Kunnia hälle,
henkeni morsiamelle!
Kukkia hälle,
kukkien kuningattarelle!
Helmiä hälle,
helmelle ihmisyys-uskon!
Huntuja hälle,
hunnulle huomisen ruskon!
1912.
Siellä puut punalle paistoi…
(1913)
1.
Veneretki.
Kelmeä kesäinen yöhyt yli maiden, merten; veno vettä

viiltämässä.
Kaunoista venossa kaksi;

toinen sulho suuri,
toinen morsian totinen.
Soutelevat, joutelevat.
Neiti vieno virkkaa:
"Minne matka morsiamen?"
Syttyvi urohon silmä:

"Katso kaikkianne,
nää etkö utuista nientä?"
Luo silmän selälle neiti;

"Kuin kuparilanka
hämärästä häämöttävä."
Mies väkevä virkkaa:
"Etkö jo enempi nähne?"
Katsahtavi hiussorea:
"Kuin hopeasolki
idän alta kuumottavi."
Onnen poika puhuu:
"Koht' eikö koti jo paista?"
Helkähtävä hienosormi:
"Niinkuin kiiltävänne
kaartuvi sylistä vetten."
Meren sankari sanovi:

"Siell' on Terhensaari,
siellä korkea kotimme
nousussa punaisen päivän

laulussa sinisen linnun;
siell' on matkan määrä."
2.
Terhensaari.
Tuosta rantahan tulevat; kultakaislat kaikkialla häilyy,

soittavat somerot alla askelien onnellisten, hiekat heläjää,
mullat muhajaa, veenvalamat, raakunkuoret jalan alla
rauskaa; laituri lahen perällä, luona ulpukat utuiset.
Polku lahden pohjukasta, puron vartta vastamaata nousu,
siinä lempeä lepikko, tuomilehto tuoksuvainen, viita vipajaa,
kaste kimaltaa; polun kaidan kahdenpuolen vesiperhot leijaa,
leikkivät sudenkorennot lehdillä pajun ja raidan.
Kunnahalla kuusimetsä, kuusten alla talo niinkuin linna,

teräksestä portti tehty, porras silkillä silattu, sametilla tie,
marmorilla maa; peräseinä peuran luusta, akkunat
merenvahaiset, katot kissankultahiset.
Katselevat, kummastuvat "Oishan tuossa tupa onnellisten,

vaan on mennä liian pieni liian pieni tulla tuonne, kun on
kyynärää kahta kaikkiaan koti korkeuinen. Liekö linna
kääpiöiden, lasten leikkimaja? Ei meille sjjoa siinä, meren
suuren soutajille."
Istuvat sydämin synkin polun päähän, linnan portin eteen.
3.
Sininen lintu.
Se lauloi sininen lintu: "Ihmis", ihmiskullat, kuinka teiss' on

tuhma tieto autuudesta elon!
Kuinka nousta nuori kukka

voisi vanhan mieleen,
suven henki heilimöidä
syksyisessä puussa?
Suljettu on suuri onni,
taivas kiinni hälle,
jok' ei lapsen lailla tule
Terhensaaren linnaan.
Lähtehessä kylpekäätte
kuusikummun alla,
virran vienon paaterella
päivää paistatelkaa.
Murhemuistot entisyyden
tuonne kaikki jääkööt,
tuskat öitten tummien
ja hikihelmet päiväin.
Elo niinkuin ensi kerran

silmillänne nähkää,
kun ei huolta huomenkoiton
eikä eilis-ehtoon.
Maan ei liene mahtajille

Terhenlinna tehty,
tehty vain on tulla niiden,
joill' on unhon-lahja;
joill' on kyky kummastella, ilo ihmetellä, usko aina uudistua,

toivo toinen olla.
4.
Metamorfoosi.
Kuulivat he virren kumman; käsi kädessä kulkivat kivistä

tietä linnunlaulu-Iaaksoon, siinä lähde läikkyväinen, vesi vailla
pohjaa.
Katsoivat kuvastimehen; kuvan näkivät kumpainenkin

itsestänsä, elon entismuistot otsillensa uurtunehet, surut
sielunsilmäin.
Koettivat kädellä vettä; iho värähti, valvahti pyhä vavistus

sydänkammioissa, kulki verta kumpaisenkin kasvot
kalventaen.
Virkahteli valju impi: "Sydän minulla sykkyräksi sylkähtävi,

kun ma tuumin tuonne syöksyä sylihin aallon syvän,
pohjattoman."
Vastasi vakava sulho: "Veri minulla niinkuin seinä seisahtavi

auvon aavistusta, uskallusta onnen uuden; sylitysten
syöstään!"
Verhot vaatteiden valahti; hetevesihin heilahti heleät varret,

painui alle pinnan, nousi kohta päätä kaksi virran vienon
kalvoon.
Päätä kaksi kaunokaista, hyvä-hymyistä, auvon nuoren

autuasta, unho-onnellista; katsoi taivahan sinehen, sukeltausi
jälleen.
5.
Luonnonlapset.
Leikkivät nyt lapset kaksi Terhensaaren tanterella, liepeellä

utuisen linnan.
Kiittävät kiloa päivän: "Armas aurinko, antaja pyhän

elämän, aina paistaos, ällös polttele poroksi ihmis-onnea,
kukkia ijäisen niitun!"
Kumartavat Luojan kuuta "Kaunis kumppani, kaitsija elon

unien, herätä haaveita, älä ärjyjä sydämen, sielun peikkoja;
ole oikea toveri!"
Yötäkin ylistelevät: "Tähdet kirkkahat, kynttilät Jumalan

juhlan, olkaa lempeät, älkää ankarat ijäti kuin on kohtalo, kuin
sen vaskiset vasamat!"
Kuuntelevat kuu ja päivä, tähdet lempeät lupaavat.
Meri yksin ympärillä huoahtaa ja huutaa raskahasta

rinnastansa: "Luonnon laajan lapset! Kaikki on katoova
kerran, unen saaret uppoo, painuvi paraskin haave, pilvilinna
hienoin."
Laulahtavat lapsikullat: "Niinpä kauniisti nukumme pohjalla

meren sinisen, lemmenkukkien lomassa."
Lauluja ja ballaadeja.
Pyhäkkö.
On yö, kun astuin kammioos,

oli aamu, kun heräsin suuteloos,
miten kadulle pääsin, ma tuskin muistan;
ma seison ja katson ja päätäni puistan.
Ei varmaankaan lie totta tää.

Niin kaunis mun päätäni pyörryttää.
Niin ihana ollako ihminen voi?
Kuin joulukirkko mun sieluni soi.
Sa armas laps! Sa auringon laps!

Sa maailman kirkkaus kiharahaps!
Miten saatoit sa olla niin kaunis ja hyvä,
niin valoisa, lempeä, lämmin ja syvä!
Ah, luulin jo, että päällä maan

ei minulla onnea ollutkaan,
ja ett' olin päivän jo nurjalla puolla,
ei eessäni muuta kuin jäätyä, kuolla.
Ja luulin jo, että syrjähän

olin syösty ma pöydästä elämän,
mua ettei muistaisi, lempisi kukaan,
ei ottaisi muiden ihmisten mukaan.
Ja tunsin jo, ett' olin kummitus vain,
hymyn huomasin hyytyvän huulillain,
ei käynyt leikki, ei käynyt työ,
yli sieluni lankesi lauluton yö.
Ja nyt! Miten kaikki on muuttunut!

Taas kukkivat tuntehet tallatut,
taas lyö läpi rintani elämän helke,
käy unhotus murheen ja unien välke.
Mut kuinka ma arvata saatoinkaan,

sa että voit anteeksi antaa vaan
ja että mua muistaisit, lempisit sinä,
jolle niin olin tuskaa tuottanut minä?
Ja maailman polkuja matkaten,

miten uskalsin, onneton, uskoa sen,
mull' että ois ainainen koti siellä,
polo, josta ma poistuin niin korskalla miellä?
1913.
Hyvä peto.
Peto on minun armaani, vaan peto hyvä, ei haavoita

silmänluontinsa syvä, ei tahdo hän tappaa, kynsiä, purra, vain
hiipiä hiljaa ja kauniisti surra, pään painaa olkahan lemmityn
miehen, elon siirtää kuin laskevan auringon tiehen, hänet
kiertää katseella hyväilevällä, niin kärsimys-kirkkaalla, surun-
kipeällä, ja heittää maailman yli yön hunnun ja tuntea kuolon
ja rakkauden tunnun.
Peto on minun armaani, vaan peto arka, hän askelta

säikkyy, hän ääntä jo karkaa, kun kutsut, hän pelkää, kun
huudat, hän lymyy läpi lehvikön vain helosilmänsä hymyy;
hänet saada voi saaliiksi ahdistamalla, kun vuori on eessä ja
jyrkänne alla, voit vangita hänet ja kotiisi kantaa, mut silloin
hän saattaa iskunkin antaa, voi hyväillen hyökätä, suudellen
purra ja itse sun haavojas haikeimmin surra.
Peto on minun armaani, vaan peto soma, ei tahdo hän olla

pyytäjän oma, hän tahtovi tulla, kun hällä on mieli, ei silloin,
kun kutsuu lempijän kieli, jos väistyt, hän seuraa, jos
hyökkäät, hän haihtuu, jos etsit, hän elämän-murheeksi
vaihtuu, hänet parhaiten voitat, kun suot hänen mennä, et
itkuas näytä, et vastaansa ennä, hän kärsiä tahtoo ja onneton
olla — ja yöstänsä tummasta syliisi tulla.
1913.
Leikkiä.
Leikkiä lyöden
sun luoksesi tulin,
mutta ma murheesi
hehkuhun sulin.

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MANAGERIAL DECISION MAKING

ANNOTATED LEARNING OBJECTIVES

1. Explain why decision making is an important component of good management.

5. Identify the six steps used in managerial decision making.

Whether a decision is programmed or nonprogrammed, or the manager follows the classical or

Overconfidence. Before making a decision, managers have unrealistic expectations of their

7. Identify and explain techniques for innovative group decision making.

An important key to better decision making under conditions of uncertainty is to encourage a

II. TYPES OF DECISIONS AND PROBLEMS

A. Programmed and Nonprogrammed Decisions

2. Nonprogrammed decisions are made in response to situations that are unique,

B. Facing Certainty and Uncertainty Exhibit 8.1

1. One difference between programmed and nonprogrammed decisions relates to the

d. Ambiguity means that the goal to be achieved or the problem to be solved is

III. DECISION-MAKING MODELS Exhibit 8.2

A. The Ideal, Rational Model

1. The classical model of decision making is based on assumptions that managers

b. The decision maker strives for conditions of certainty, gathering complete

c. Criteria for evaluating alternatives are known.

B. How Managers Actually Make Decisions

1. Bounded Rationality and Satisficing

a. The administrative model is considered to be descriptive, meaning that it

b. Bounded rationality means people have limits, or boundaries, on the amount of

d. According to the administrative model:

• Decision goals often are vague, conflicting, and lack consensus.

• Managers’ searches for alternatives are limited because of human,

• Most managers settle for a satisficing rather than a maximizing solution.

a. Intuition is another aspect of administrative decision making. Intuition

C. New Manager’s Self-Test: Making Important Decisions

1. This model is for nonprogrammed decisions when conditions are uncertain,

b. Information is ambiguous and incomplete.

c. Managers do not have time, resources, or mental capacity to identify all

IV. DECISION-MAKING STEPS Exhibit 8.3

A. Recognition of Decision Requirement

1. Managers confront a decision requirement in the form of either a problem or an

B. Diagnosis and Analysis of Causes

a. What is the state of disequilibrium affecting us?

b. When did it occur?

c. Where did it occur?

d. How did it occur?

e. To whom did it occur?

f. What is the urgency of the situation?

g. What is the interconnectedness of events?

h. What result came from which activity?

D. Selection of Desired Alternative

E. Implementation of Chosen Alternative Exhibit 8.4

1. The implementation of a chosen alternative involves the use of managerial,

F. Evaluation and Feedback

1. In the evaluation step, decision makers gather information or feedback to determine

V. PERSONAL DECISION FRAMEWORK Exhibit 8.5

VI. WHY DO MANAGERS MAKE BAD DECISIONS?

• Overconfidence. Before making a decision, managers have unrealistic expectations of their

VII. INNOVATIVE GROUP DECISION MAKING

A. Start with Brainstorming

2. Electronic brainstorming, called brainwriting, brings people together in an