Classical management biases and behavioral approach comprehension

Abstract

The article at the outset conducted on the theoretical basis, incorporating relevant authors and theories, has pointed to a number of weaknesses of neoclassical theory, which would be hardly compatible with real management practice and manager behavior. Article critically evaluated theoretical background in management sciences and examined manager in behavioral and heuristic theories. Analysis offered an interpretation of managerial decision-making as a product of personal preferences and characteristics, limited rationality, lack of information, mental shortcut, and imitation. Analysis described practical behavior of managers and then correlated these to each other and to explanatory factors as well. The re-orientation towards recognition of managerial behavior is developed and illustrated. Conclusions were derived from the generalization of empirical observations. Empirical research is based on in-depth qualitative study and subsequently it derives from established theoretical patterns. It explores and explains the way managers make economic decisions. The emerging theory strongly emphasizes the strengthening of the human potential inside a manager.