The Role of Leadership in the Process of Decision Making in Modern Innovational Business Systems

Abstract

Purpose: The purpose of the work is to study the characteristics of leadership and to determine its value in the process of decision making in modern business systems, as well as to determine the possibilities of increasing the effectiveness of this process through changing the characteristics of leadership.

Methodology: Target study of the influence of leadership on the process of decision making in modern business systems on the basis of the methodology of the systemic approach is performed, and two additional characteristics of leadership are determined, apart from management style, in the aspect of making of managerial decisions: contradiction of leaders in business system and authority of a formal leader (business manager) in business system and his competence as to involvement of employees into the process of making of managerial decisions, which includes capabilities. Depending on combination of these characteristics, classification of leadership in modern business systems as to criterion of decision making is offered.

Conclusions: It is substantiated that the most preferable type of leadership in a modern business system as to criterion of decision making is highly effective involvement of employees in the process of making of managerial decisions. Capabilities of increasing the effectiveness of the process of making of managerial decisions in a modern system through changing the characteristics of leadership are connected to transition to this type of leadership through overcoming the contradiction of leaders in a business system and increase of competence of the formal leader (business manager) in a business system as to involvement of employees in the process of making of managerial decisions through his training.

Originality/value: It is substantiated that leadership in business system determines only certain characteristics of the process of making of managerial decisions, and no type of leadership can guarantee optimal decisions. With highly effective involvement of employees in the process of making of managerial decisions, the probability of optimal decisions is the highest, so this type of leadership is the most perspective for modern business systems.

Citation

Morozova, I.A., Chesnokova, A.V., Fetisova, O.V. and Maksimenko, L.S. (2019), "The Role of Leadership in the Process of Decision Making in Modern Innovational Business Systems", Popkova, E.G., Chesnokova, A.V. and Morozova, I.A. (Ed.) Specifics of Decision Making in Modern Business Systems, Emerald Publishing Limited, Leeds, pp. 133-140. https://doi.org/10.1108/978-1-78756-691-020191013