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Dependence of the Process of Decision Making in Modern Business Systems on Their Organizational Structure

Specifics of Decision Making in Modern Business Systems

ISBN: 978-1-78756-692-7, eISBN: 978-1-78756-691-0

Publication date: 1 August 2019

Abstract

Originality/value: It is substantiated that the process of decision making in modern business systems largely depends on the complexity of their organizational structure. With increase of complexity of a business system, resource intensity of decision making and duration of this process increase, but the risk of nonoptimal decisions decreases. Organizational structure of low complexity is peculiar for business systems that have deficit of financial and human resources, which does not allow using the means of optimization and fully control the process of decision making. However, in this case, managerial decisions are made much quicker. In the conditions of modern market economy, it is necessary to make quick optimal decisions, which cannot be achieved within the organizational structure of either low or high complexity. Thus, it is necessary to find a way to make quick optimal managerial decisions beyond the design of organizational structure.

Keywords

Citation

Molchanov, E.G., Musaelyan, A.K., Mikhaylenko, R.G. and Smertina, E.N. (2019), "Dependence of the Process of Decision Making in Modern Business Systems on Their Organizational Structure", Popkova, E.G., Chesnokova, A.V. and Morozova, I.A. (Ed.) Specifics of Decision Making in Modern Business Systems, Emerald Publishing Limited, Bingley, pp. 115-121. https://doi.org/10.1108/978-1-78756-691-020191011

Publisher

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Emerald Publishing Limited

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