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
Top Related