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Defining The Manager Term Paper

¶ … Manager When Work is Frantic, Managers Need Ways to Expand Horizons is an article that essentially refers to the fact that successful decision-making in business is largely a function of developing a strategy and business model that is unique and effective in fulfilling customer need gaps ahead of the competition, while simultaneously managing to establish cost efficient ways of doing so in order to maximize profitability. Today's increasingly competitive and fast paced world, however, does not allow managers the luxury of either the resource or the time to follow systematic and streamlined methods of studying and analyzing the environment sufficiently enough to come up with sustainable, competitive ideas. The situation described by the article therefore relates to Herbert Simon's theory of 'bounded rationality,' which suggests that the costs of acquiring present information as well as uncertainty about the future limit the extent to which managers can make fully rational decisions, leading to 'bounded rationality.' Under 'bounded rationality,' managers...

In the event that the compromise decision is not good enough, managers are further compelled into once again changing either the aspirational level or the decision (Herbert Simon).
Availability Heuristic' also plays a role in the kind of decision-making environment described in the article. If managers are being forced into multi-tasking at lightening speeds, then inevitably they are taking decisions based on what they can remember instead of taking the time to look at the complete picture. Chances are also very high that their decisions are getting influenced by the more recent events, which have had a more vivid impact though such events or data may actually be the exception in reality and not representative of market trends (Availability Heuristic).

The concept of 'group think' relates to the article under consideration as well: "...the managers are forced into an ever-narrowing circle of contacts that look more…

Sources used in this document:
Works Cited

Availability Heuristic. Changing Minds. Retrieved Nov. 21, 2003 from the Changing Minds

Web site: http://changingminds.org/explanations/theories/availability_heuristic.htm

Herbert A. Simon, 1916-2001. The History of Economic Thought. Retrieved Nov. 21, 2003 from the Economics New School Web site: http://cepa.newschool.edu/het/profiles/simon.htm

Janis, Irving L. (1972). Victims of Groupthink. Boston: Houghton Mifflin.
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