POLYTECHNICAL UNIVERSITY OF OTZOLOTEPEC

PRINCIPLES OF MANAGEMENT
SUMMARY CHAPTER 1 AND 2

Student´s name: De la Cruz Miguel Diana Analí

Teacher´s name: Esparza Flores Carlos

INTRODUCE TO MANGEMENT
GROUP 3111-B
FEBRUARY 3RD, 2023.
 1. MANAGIN AND PERFORMING
1.1. What do managers do?

The first chapter of the book mentions the common characteristics and traits in successful
managers, such as: leadership, communication skills, decision-making ability, motivation skills,
strategic thinking and problem-solving skills.

It indicates that management is a human activity that does not require specialized training or
professional certification and can be considered an occupation instead of a profession.

It tells us that managers learn how to perform their work through practical experience, study and
continuous training, observing and learning from successful managers.

According to author John Kotter, managers perform their work by setting direction and aligning
people towards organizational goals. This is achieved through strategic decision-making,
delegating responsibilities, and giving importance to motivation and support to employees.

1.2. The Roles Managers Play

According to Henry Mintzberg, a manager's work is comprised of three important roles:

interpersonal, informational, and decision-making. These roles include activities such as
establishing relationships, collecting and disseminating information to generate alternatives,
evaluating and making decisions based on objective criteria.

It explains the important role that managers play in different organizations and the responsibilities
they have towards people within the organization. These responsibilities can be expressed
through the creation of a positive work environment, the definition of clear roles and
responsibilities, and the development of training and professional development programs

1.3. Major Characteristics of the Manager's Job

The nature of management can be variable, it changes according to the level and function of each
manager in the organization. Managers at higher levels focus on long-term strategies and
corporate level decision-making, while managers at lower levels focus on task implementation
and problem solving at an operational level.

Some have direct contact with customers and potential customers, with representatives of various
external groups to the company, including state and federal agencies, local civic groups, and
suppliers; they carry out internal consultation for change and organizational development; they
also follow up on products and services.

Definitely, the role of management in the social context is to lead and supervise the activities of
an organization to achieve its goals, contributing to social development. As managers, we must
always take into account the expectations and needs of society, ensuring that our decisions and
actions are responsible and ethical. Since a key role of management is job creation and
strengthening the economy.

We must be aware that in the future, those in charge of management must be expert technology
strategists, skillful politicians, empathetic leaders, and first-level motivators.

2. MANAGERIAL DECISIÓN-MAKING

Illustrating with the factors that allowed Jen Rubio and Stephanie Korey to make good decisions
when they established their luggage company, Away, which include identifying a market need,
researching and understanding the market and customers, collaboration and teamwork, the ability
to adapt to changes and perseverance. It tells us to analyze important information on decision
making that can help us make better decisions to be a better manager.

2.1. Overview of Managerial Decisión-Making

The text describes the complex nature of managerial decision-making, which always has
significant impacts and implications for the organization and its stakeholders. Managers face
difficulties such as incomplete information, limited time, and the presence of multiple stakeholders
with conflicting needs. It also highlights the importance of considering possible consequences
and ethical implications before making a final decision.

2.2. How the Brain Processes Information to Make Decisions: Reflective and
Reactive Systems

It explains that the brain uses two systems to make decisions, the logical and rational system
(reflective) and the fast reactive system (intuitive). The reflective system is appropriate for
important decisions, while the reactive system is efficient in time-critical situations and is based
on prior experience and knowledge.
 2.3. Programmed and Nonprogrammed Decisions

It tells us that programmed decisions relate to predictable and structured situations that require
an automatic response, while non-programmed decisions refer to unpredictable and unstructured
situations that require a deeper evaluation.

The decision-making process includes identifying the problem, gathering and analyzing
information, generating options, evaluating options, choosing an option, and carrying out the
decision. People can improve the quality of their decisions by considering multiple perspectives,
being aware of biases, having an open mindset, monitoring the decision, and evaluating its
effectiveness. Group decision-making can be more effective than individual decision-making by
allowing diversity of perspectives and improving the quality of information, but it can also have
disadvantages, such as the influence of group leaders or conformity bias

2.4. Barriers to Effective Decision-Making

There are barriers to effective decision making, including limited ability to gather complete
information, limited ability to cognitively process, human biases, and conflict between individuals.
The most common barriers are confirmation bias and logical fallacies.

Confirmation bias is the tendency to selectively seek out, interpret, and value information that
confirms our existing beliefs, opinions, and expectations. This can be a barrier to effective
decision making as it limits the consideration of objective information and can lead to biased
conclusions.

Logical fallacies are defined as an error in reasoning that makes the conclusion not necessarily
follow from the premises.

2.5. Improving the Quality of Decision-Making

Managers can improve their ability to make effective decisions through experience and practice,
using techniques such as heuristics and satisficing, involving others in the decision-making
process, conducting evidence-based data gathering and research, careful consideration of the
long-term and ethical implications of decisions, and critical thinking about the quality of
information.

Heuristics is a simple technique for decision making that is based on a previously established rule
or pattern. It is most appropriate to use heuristics when a quick response is required or when
complete information is not available.
 2.6. Group Decision-Making

Group decision making can be a valuable tool; as it allows members to contribute with diverse
knowledge and perspectives, which can lead to better solutions. However, groups may also face
challenges such as groupthink, conflict, and dissent repression. The two types of conflict are
cognitive conflict and affective conflict. Cognitive conflict is constructive and refers to differences
in opinions or interests, while affective conflict is destructive and refers to negative emotions or
personal feelings.

Managers can improve the quality of group decision making by forming diverse groups, assigning
a devil's advocate to reduce groupthink, encouraging participation from all members, and
preventing personality conflicts.

To improve the quality of decision making, we can be aware of our biases, obtaining objective
information, considering multiple perspectives, seeking expert advice, and having an open mind.

Reference:

Bright, D. S., Cortes, A. H., Hartmann, E., Praveen Parboteeah, K., Pierce, J. L., Reece,
M., Shah, A., Terjesen, S., Weiss, J., White, M. A., Gardner, D. G., Lambert, J., Leduc, L.
M., Leopold, J., Muldoon, J., & O’Rourke, J. S. (2019). Principles of management.