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.