Values For Decision Making

The Managerial Decision-Making Process
E. FRANK HARRISON
Fifth Edition
Copyright 1999 Houghton Mifflin Company. All rights reserved.
4-0
The Managerial Decision-Making Process

Fifth Edition
Author: E. Frank Harrison, Ph.D. Slides by Monique A. Pelletier, Ph.D.
4-1
Chapter 4
Values for Decision Making
4-2
The Basics Properties of Values

n
n
Values are acquired early in life.

Values are like attitudes, but are more ingrained and permanent. Values differ among individuals. Values govern our perceptions and our behavior. Values facilitate the process of selfevaluation.
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n n
The Basics Properties of Values

(contd)
n
Values comprise a guidance system for decision making. Values permeate the entire process of choice.
4-4
Rokeachs Typology of Human Values

n
Terminal Values
Personal values l Social values
l
Instrumental Values
l
Competence values l Moral values Competence values l Personal values

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Managerial Values
l
Figure 4.1 A Typology of Human Values

Terminal values Instrumental values Personal values I Social values II
Competence values Moral values
III
IV
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Englands Study of Managerial Values, No. 1

n
Operating values
l
values of greater importance

of lesser importance
Non operating values

l values
4-7
Englands Study of Managerial Values, No. 2

n n n n n
Goals of business organizations
Personal goals of individuals

Groups of people
Ideas associated with people

Ideas about general topics
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Table 4.1 Ranking of Managerial Values by Category

Goals of Business Organizations Organizational efficiency* High productivity* Profit maximization* Organizational growth* Industrial leadership* Organizational stability* Employee welfare Social welfare Personal Goals of Individuals Achievement* Success* Creativity* Job satisfaction* Individuality Money Influence Prestige Autonomy Dignity Security Power Leisure Groups of People My company* Customers* Managers* My boss* My subordinates* Technical employees* Employees* Me* My coworkers* Craftsmen* Owners* Stockholders* White-collar employees* Blue-collar workers Government Laborers Labor unions Ideas Associated with People Ability* Ambition* Skill* Cooperation* Aggressiveness Loyalty Trust Honor Tolerance Prejudice Obedience Compassion Conformity Ideas about General Topics Change* Competition* Authority Caution Compromise Conflict Conservatism Emotions Equality Force Liberalism Property Rationality Religion Risk
*Operating values of high importance

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A Conceptualization of Managerial Values

n n n
Individual values
Organizational values
Organizational/Individual values = Managerial values Managerial values are a composite of diminishing individual values and overlapping organizational values
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Figure 4.2 Profile of Managerial Values
Organizational Values Managerial Values Individual Values
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Ethical Behavior
n
Ethics constitute the normative standards for management decision making. In reality, ethics change to fit the attitude of the decision maker and the specific variables in the decision at hand.
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Ethical Behavior (contd)

n
Therefore, ethics comprise a transitional phenomenon in managerial decision making. Although declaredly normative, ethics are highly subjective and ephemeral. 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
Value conflicts between the organization and society Value conflicts are inevitable at all levels.
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Value Conflicts (contd)

n
Value conflicts may have favorable or unfavorable consequences.
Higher levels of management tend to have fewer value conflicts because they personify the values of the organization.
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Value Judgments
n
The term judgment is not synonymous with the term decision.
Judgment involves evaluation and categorization. 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. Value judgments provide a basis for making and implementing decisions, but they are not a surrogate for any part of the decision-making process.
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The Managerial Decision-Making Process

Copyright 1999 Houghton Mifflin Company. All rights reserved.

The Managerial Decision-Making Process

Author: E. Frank Harrison, Ph.D. Slides by Monique A. Pelletier, Ph.D.

Copyright 1999 Houghton Mifflin Company. All rights reserved.