This school believes that management is simply a decision making process, whichis a selection of a course of action from several available alternatives.

Hence, thecentral focus of management theory should be the analysis of the decision itself.The basic emphasis of this school is not on people or environment variablesinfluencing behaviour but on the process of decision making and that allmanagement thought can be built around it. However, even though the process ofdecision making is an essential skill, it is not the only skill required for effectivemanagement.

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There are two major drawbacks with this approach. First, most decision models donot and cannot include soft variables or intangible variables such as human attitudeand behaviour, evaluation of political trends and the effects of some decisions onthe customers or community. Secondly, the actual decision making can be quiteeasy and straightforward, provided the goals are clearly defined, adequateinformation is available for decision making, the environment in which thedecision will be applicable is accurately predictable and if the decision makers arecompetent and experienced. Hence, management cannot be limited to simplymaking decisions. The principal contribution of this school to the managementprocess is in those problem areas where the relationships of variables arequantifiable and clear and where the parameters can be either directly measured orreliably estimated.

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