Thursday, May 27, 2010

Normative Decision Making Theory in MBA

Normative Decision Making Theory
Proposed by the Austrian-American sociologist Peter Blau (1918-), the Normative Decision Making theory prescribes the conditions under which leaders should make decisions autocratically, or in consultation with the group members, or with group members fully participating.
Normative decision making theory assumes: (1) individual decisions are more time-effective than group decisions; (2) subordinates are more committed to a decision if they participate in its formulation; (3) complex and ambiguous tasks require more information and consultation for reaching high-quality decisions. P M Blau, Exchange and Power in Social Life (New York, 1964)

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