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Rational Management

In: Business and Management

Submitted By smc7588
Words 2151
Pages 9
Running Head: Management process, linear and nonlinear management, ordinary and extraordinary management, rational management, chaos theory

Management - from rational management to chaos theory Submitted to Dr. D. Coleman By JJ de Klerk

In partial fulfillment of the requirement for the

Doctorate in Business Administration

Swiss Management University

March 3, 2012

1

1. Introduction Developments over the last few decades have led to a new way of thinking in economic and management approaches. The scientific approach to management, which emphasizes the basic management functions of planning, organizing, leadership and control, now seems unable to explain the era of change that characterizes economies and organizations alike. This paper will focus on explaining the rational management model, focusing on ordinary management, and go on to discuss the new approaches such as chaos theory – also called complexity theory - and the need for extraordinary management and innovation.

2. Rational management Management and organization science literature have until recently focused on the objective control of agents and worked on the assumption that interactions can be described in linear terms (Webb, 2005). When difficult decisions have to be made, many managers and strategists rely on the economics view in which profit maximization is the guiding principle. Executives will us the rational model tools described above, and believe that precise solutions should be achieved through precise and calculated means (Washburn, 2011). This approach focuses on collecting data, and the analyzing the data to provide management options to evaluate and take decisions on (Parker&Stacey, 1994). This decision-making process depends on evaluating different options based on the data collected and environmental analyses in order to evaluate options and then set objectives.

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