Topic 2 PROJECT MANAGER + PROJECT ORGANIZATION I.      The Nature of Man model about human behavior Understanding human behavior is fundamental to understanding how organizations function, whether are profit-making firms, non-profit enterprises, or government agencies. Understanding human behavior is also the fundamental to understanding how person act ---- game. We will mainly focus on REMM. REMM Resourceful, Evaluative, Maximizing Model Postulates 1--4 Postulate 1 Every individual cares, he or she is an evaluator. 1) The individual cares about almost everything, knowledge, independent,etc 2) REMM is always willing to make tradeoffs and substitutions. 3) Individual preferences are transitive. Postulate 2 Each individual’s wants are unlimited 1) If we designate those things that REMM values positively as GOODS, then he or she prefers more goods to less, GOODS can be anything from art objects to ethical norms. 2) REMM cannot be satiated. He or she always wants more of some things, material goods/intangible goods Postulate 3 Each individual is a maximizer: He or she acts so as to enjoy the highest level of value possible. Individuals are always constrained in satisfying their wants--wealth, time, physical laws of nature, limits of their own knowledge about various goods and opportunities, etc can be the constrains----opportunity set----be given and external. Postulate 4 The individual is resourceful: Individuals are creative. They are able to conceive of change in their environment, foresee the consequences thereof, and respond by creating new opportunities----the limitation is is not immutable. Human beings are not only capable of learning new opportunity, they also engage in resourceful, creative activities that expand their opportunities in various ways. REMMs at work: Think about the effects of newly imposed constrains to human behavior.   REMMs’ response to a new constrains is to begin searching for substitutes for what is now constrained, a search that is not restricted to existing alternatives. They will invent alternatives that did not previously exist. Examples…... REMM means there are no “needs”----individual is always willing to make tradeoffs, willing to substitute---willing to give up a sufficient small amount of any good for sufficient large amount of other goods(in his or her own sense). There are no need, there only wants, desires. demands. If something is more costly, less will be demanded, than if it were cheaper. ----Cost/benefit analysis. Keep in mind: Almost all the people in the world act as REMMs,  REMMs are everywhere ---- GAME between different parties----Try to understand what do your counter-party really want. ......