The Premises of Rational Management Jeden O. Tolentino De La Salle University

Rational management

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What is rational management? The continuing process of making full use of the thinking ability of the people in the organization. It is imperative to pinpoint all the people within an organization who make things happen.

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Objective of rational management To move the organization closer to its full potential.

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Four basic patterns of thinking

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Pattern 1: Assessing and clarifying WHAT’S GOING ON? begs for clarification.

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Pattern 1: Assessing and clarifying It asks for a sorting out, a breaking down, a key to the map of current events, a means of achieving and maintaining control.

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Pattern 1: Assessing and clarifying It reflects the pattern of thinking that enables us to impose order where all had been disorder, uncertainty, or confusion.

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Pattern 1: Assessing and clarifying It enables us to establish priorities and decide when and how to take actions that make good sense and produce good results.

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Pattern 2: Cause and effect WHY DID THIS HAPPEN? indicates the need for cause-and-effect thinking, the second basic pattern.

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Pattern 2: Cause and effect It is the pattern that enables us to move from observing the effect of a problem to understanding its cause so that we can take appropriate actions to correct the problem or lessen its effects. 11

Pattern 3: Making choices WHICH COURSE OF ACTION SHOULD WE TAKE? implies that some choice must be made.

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Pattern 3: Making choices The third basic pattern of thinking enables us to decide on the course of action most likely to accomplish a particular goal.

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Pattern 3: Making choices • Determination of a purpose • Consideration of available options • Assessment of the relative risks of available options 14

Pattern 4: Anticipating the future WHAT LIES AHEAD? looks into the future.

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Pattern 4: Anticipating the future We use this fourth basic pattern of thinking when we attempt to assess the problem that might happen, the decision that might be necessary next month, next year, or in five years.

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The rational processes

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The basic patterns of thinking in the organizational context What’s going on?

Situation Appraisal

Why did this happen?

Problem Analysis

Which course of action should we take?

Decision Analysis

What lies ahead?

Potential Problem Analysis 18

Situation Appraisal It deals with assessing and clarifying situations, sorting things out, breaking down complex situations into manageable components, and maintaining control of events.

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Situation Appraisal It is designed to identify problems to be solved, decisions to be made, and future events to be analyzed and planned.

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Problem Analysis It enables us to accurately identify, describe, analyze, and resolve a situation in which something has gone wrong without explanation.

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Problem Analysis It gives us a methodical means to extract essential information from a troublesome situation and set aside irrelevant, confusing information.

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Decision Analysis Using this process, we can stand back from a decision situation and evaluate its three components.

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Decision Analysis • We can analyze the reasons for making the decision and examine its purpose. • We can analyze the available options for achieving that purpose. • We can analyze the relative risks of each alternative. 24

Potential Problem Analysis It uses what we know or can safely assume in order to avoid possible negative consequences in the future.

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Potential Problem Analysis It is based on the idea that thinking and acting beforehand to prevent a problem is more efficient that solving a problem that has been allowed to develop.

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Reference Kepner, C. H., & Tregoe, B. B. (1965). The rational manager: A systematic approach to problem solving and decision making. Quezon City: Phoenix Press. Kepner, C. H., & Tregoe, B. B. (1981). The new rational manager. Princeton, NJ: Kepner-Tregoe. Kepner, C. H., & Tregoe, B. B. (1997). The new rational manager: An updated edition for a new world. Princeton, NJ: Princeton Research Press. 27

The Premises of Rational Management

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