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This school believes that management is simply a decision making process, which
is a selection of a course of action from several available alternatives. Hence, the
central focus of management theory should be the analysis of the decision itself.
The basic emphasis of this school is not on people or environment variables
influencing behaviour but on the process of decision making and that all
management thought can be built around it. However, even though the process of
decision making is an essential skill, it is not the only skill required for effective
management.
There are two major drawbacks with this approach. First, most decision models do
not and cannot include soft variables or intangible variables such as human attitude
and behaviour, evaluation of political trends and the effects of some decisions on
the customers or community. Secondly, the actual decision making can be quite
easy and straightforward, provided the goals are clearly defined, adequate
information is available for decision making, the environment in which the
decision will be applicable is accurately predictable and if the decision makers are
competent and experienced. Hence, management cannot be limited to simply
making decisions. The principal contribution of this school to the management
process is in those problem areas where the relationships of variables are
quantifiable and clear and where the parameters can be either directly measured or
reliably estimated.

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