TimeWealth or

Morals

Stakehold

er

Theory:

Attempts To Guide Managers

To The Best Decision

So Obviously…Managers use this Theory

Which falls under Organizational Communication

There are 3 Ways to Make Decisions

Based on Motivatio

n

The Descriptive Approach

Which ranks all the

choices

And takes lots of time

But strives for the BEST

solution

The Instrumental Approach

Which strives to maximize WEALTH

for everyone

The Normative Approach

Which chooses the ETHICALLY

right decision

Ideally…

Theses approaches would over lap to create the perfect

solution

Clearly that does not happen

Managers have to make decision for the company and stakeholders based on what they think is best

Whether it’s increasing their profit

Or honoring their contracts

Here’s How It Gets

Sticky

Every decision is situational

So there is no correct way to

make a decision

And every company is

different

The goal is to find an organizational “glue”

to combine these approaches

And give the company long-

term results and stability