Dilemmas and paradoxes: how managers make the toughest decisions

Abstract

Purpose

Managerial decisions ultimately determine the success or failure of a business strategy, and difficulties often arise when managers must decide how best to allocate scarce resources between activities. Adopting a cognitive framing perspective, this study aims to explore managers’ accounts of decision-making problems and how they solve them.

Design/methodology/approach

Interviews with 18 managers from the Austrian beverage industry were analysed to identify the kinds of decision-making problems they encounter and to understand how they solved those problems.

Findings

The participating managers perceived challenging decision-making problems as either a dilemma or a paradox. Dilemmas were resolved by committing entirely to one alternative or by focussing on one alternative at a time. In the case of paradoxes, managers looked for creative solutions, blending experimentation, humour and past experiences to create outside-the-box solutions that would simultaneously engage all alternatives.

Originality/value

This study provides empirical evidence of how managers frame challenging problems as dilemmas or paradoxes, and what types of coping mechanisms they use to identify and execute feasible solutions. While the current literature tends to emphasize the benefits of framing problems as paradoxes, the present findings also confirm the usefulness of dilemma-based solutions. A better understanding of these processes can help managers to make more thoughtful and better decisions.

Citation

Karhu, P. and Ritala, P. (2018), "Dilemmas and paradoxes: how managers make the toughest decisions", Journal of Business Strategy, Vol. 39 No. 1, pp. 24-31. https://doi.org/10.1108/JBS-11-2016-0140