Principles of Management CLEP 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What does the classical approach to decision-making assume about managers?

They will always seek to compromise when making decisions

They will operate based on the best economic interest of the company

The classical approach to decision-making is rooted in the belief that managers make decisions based on rational analysis and objective criteria. This approach assumes that managers will prioritize the best economic interest of the organization when making decisions. The emphasis is placed on making choices that maximize efficiency, productivity, and profit, thereby ensuring the organization operates in a manner that is economically advantageous.

By focusing on the best economic interest, the classical decision-making model suggests that managers will analyze information and weigh alternatives carefully before arriving at a conclusion that aligns with maximizing the company's performance. This perspective views decision-making as a logical and systematic process, contrasting with other approaches that might include aspects like personal feelings, team input, or compromise.

In this context, the other options do not align with the core assumptions of the classical approach. For instance, the idea of seeking compromise implies a more collaborative or political approach to decision-making, not characteristic of the rational economic focus. Preferring innovative solutions suggests a level of creativity and risk-taking that contrasts with the structured and analytical nature of the classical approach. Relying heavily on feedback from teams implies a participatory approach that values input and collaboration, differing from the assumption that decisions should be rooted in economic rationality.

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They prefer innovative solutions over standard methods

They will rely heavily on feedback from their teams

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