How the manager can use the rational decision making process, Business Management

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Question 1:

According to the instrumentality theory of motivation, money is the main motivating factor at work. This can explain the existence of performance related pay in many organisations today. However, the instrumentality theory has been criticised on several grounds. Using Maslow's hierarchy of needs, explain how far money is the main motivating factor at work.

Question 2:

An organisation has decided to buy several computers in order to enhance performance in an organisation. Given that there are different brands and alternatives on the market, the manager has to make a decision among the different brands. In addition, the manager has some budgetary constraints.

Explain how the manager can use the rational decision making process in order to identify the best decision for the organisation in this particular situation.


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