CLEP Management

Answer: A - The classical approach to decision making assumes that the manager will operate and make decisions based on the best economic interest of the company.

Key Takeaway: When research into decision making models for managers first started, many of the decision making philosophies were generated by economist who prescribed that managers should always make decisions to achieve the optimal economic output for their organization. This decision making model or approach did not account for later insights into human nature, such as the tendency for managers to make decisions quickly and without all of the information available.