Principles Of Investments
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Second, how will these decisions be produced? And third, how will decision making at lower levels be managed? The third problem is the tension between process and compound. In its simplest terms, this problem is the tension between working right to get the right response to a problem and focusing on the right way to getting the answer.
It is the issue between your “what” and the “how” of making decisions. Confronted with any specific problem, a supervisor could choose to address the material of the nagging problem – concentrating attention and work on data, analysis, and judgments that will assist produce the right answer to the nagging problem. Alternatively, the manager could choose to concentrate on the process, a different approach significantly. Instead of concentrating on the right answer to a problem, the manager attempts to influence subordinates’ decisions by shaping the formal organizational systems and structures that form lots of the premises on which decisions are based.
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Thus the supervisor pays focus on the planning, control, information, and compensation systems that impact how others can make a decision. This approach emphasizes how other people gather information, conduct analysis, and reach conclusions. The manager may make no immediate work to determine the answer to the problem, specifying who will be responsible for dealing with it instead, how they should continue, and the goals that should guide their decisions.
Of course, the manager also affects tactical decisions by influencing the casual processes within a firm – the values, beliefs, norms, and assumptions that influence decision-making behavior. This dilemma arises whenever a supervisor anticipates a discord with or amongst others in the ongoing company. The dilemma is whether to handle the conflict through confrontation or compromise.
The issue can be over basic proper goals, allocation of resources, changes in organizational structures and systems, tactical decisions, or small issues. Conflicts can occur from differences running a business common sense, from clashes between your interests of different practical areas, or from differences in beliefs. When faced with a turmoil, managers have two broad alternatives.
One choice is to confront the issue and the roots of the issue explicitly and to find a way of resolving the problem that best serves the company’s interest. The fifth problem is the conflict between tangible and intangible considerations. In its conventional form, this problem is usually considered the strain between short-term and long-term considerations.
In part, this turmoil is the even-present tension between the immediate opportunities and pressures for near-term financial performance, and the less tangible, less certain, and other subtle tactical considerations of the distant future. Common examples are curtailing of R&D, postponing of vegetable expansions, employee layoffs, short cuts on quality, and other cost-cutting initiatives.
Choices lie they are difficult but common problems for managers. Yet they are actually only a subcategory of the much broader, more fundamental, and more pervasive conflict – the strain between intangible and tangible factors in general management. Pressing, tangible pressures other involve dimensions of performance that are most quantifiable and measurable readily, such as current profitability, growth, or productivity. They can also involve the pursuit of self-interest: bonuses, offers, prestige, security etc.
Similarly, specific operating problems that need to be addressed are often much less ambiguous than proper issues that require an innovator confront the uncertainties and complexities into the future. Among the more intangible and subtle considerations are personal moral beliefs, a company’s distributed values, its proper vision, its cultural obligations, and differences in its constituents’ interests.