Reports on how to make decisions within groups, implying that if team decisions are not made properly time can be wasted and incorrect decisions made. Details various methods, from command to consensus and unanimous decisions. Lists advantages and disadvantages of group decisions, and recommends selecting when and when not to use consensus.
When and why do organizations prefer high-status exchange partners? While past work has focused on status as a signal to the marketplace, this study shows that actors use…
When and why do organizations prefer high-status exchange partners? While past work has focused on status as a signal to the marketplace, this study shows that actors use the selected organization's status as a signal to legitimate their own selection decision.
The context of the study is the selection of investment banks by local governments in the United States for the purpose of selling municipal bonds to investors. Hypotheses were developed through interviews with participants in the public and private sectors and were then tested using generalized estimating equations (GEEs). The models include 6,720 selection decisions nested within 1,032 local governments.
Interview data reveal that governmental decision-makers struggle with interdepartmental conflict and are concerned about the perceived legitimacy of decisions in the “political arena”. The quantitative results confirm that with respect to selection decisions, the social context of the local government matters. Specifically, racial/ethnic heterogeneity, political competition and functional complexity—contexts where actors must signal independence and objectivity in decision-making—are each associated with an increased likelihood of retaining a high-status investment bank.
The study shows that a preference for a high-status partner is not just market driven. Rather, it emerges also from the legitimacy demands of the organization's own participants. More broadly, the study reveals how organizational decision-making—even that pertaining to the external market environment—is embedded in an organization-specific social reality.
This study examines whether financial literacy is a relevant factor that determines authority in household financial decision-making, an area that is often viewed as…
This study examines whether financial literacy is a relevant factor that determines authority in household financial decision-making, an area that is often viewed as boring, difficult and full of uncertainties. Cognitive ability and personality traits are also included as additional explanatory variables.
The logistic regression technique was applied using a sample of more than 2,300 microfinance institutions' clients in three provinces in Indonesia.
This study finds that financial literacy correlates positively with authority in household financial decision-making only among men. This does not mean that financial literacy is irrelevant for women's agency, since the skill might be important for authorities in other decision-making areas, including those outside households. Meanwhile, the relationship between cognitive ability and household financial decision-making authority is more universal.
This study does not collect information on the levels of financial literacy of other household members and does not capture respondents' perceptions of household financial decision-making.
The overall low level of financial literacy calls for the need for more targeted efforts to address this issue by policymakers. Education policy should also be designed to improve cognitive ability, as this ability is important for human agency and well-being.
Household decision-making has received significant attention in the literature. Authority in household decision-making is important because it represents a person's agency and has a profound impact on well-being. To the best of author's knowledge, studies on the importance of skills in household financial decision-making are very limited.
Decision-making in the equity market has been a challenging task for investors belonging to all age groups. This study aims to find linkages between the decision-making…
Decision-making in the equity market has been a challenging task for investors belonging to all age groups. This study aims to find linkages between the decision-making techniques in the equity market and the biological age of the investor.
This is an exploratory study and by surveying a sample of 436 secondary equity investors residing in the Chennai region of India, the study measured the decision-making techniques. Using the ANOVA test, the decision-making technique mostly used by investors belonging to an age category was determined. Further, the linkages were investigated in isolation for the male and female investors. By using regression analysis, a model was developed to predict the actual equity return. The financial characteristics of the various age groups were also analyzed using cross-tabulation.
The results of the study show that the age of the investor plays an important role in the choice of decision-making technique used. The younger investors, who earn the lowest returns were less likely to use industry analysis but more likely to use technical analysis and advocate’s recommendation. Specifically, the younger male investors were less likely to use industry analysis and more likely to use the advocate’s recommendation. The younger female investors were also less likely to use industry analysis. The middle-aged respondents, who earn the highest return were less likely to use technical analysis and advocate’s recommendation owing to lower means. Specifically, the middle-aged male investors were less likely to use the advocate’s recommendation and technical analysis. Then, middle-aged female investors were more likely to use industry analysis.
The findings would be beneficial for financial advisors and wealth managers to suggest age-appropriate strategies for the various investor groups. This age-based profiling of investors would make investors aware of their decision-making techniques and encourage them to make more rational decisions.
Emerging Construction Industry 4.0 technologies raise serious questions for construction companies when deciding whether to adopt or reject emerging technologies. Vendors…
Emerging Construction Industry 4.0 technologies raise serious questions for construction companies when deciding whether to adopt or reject emerging technologies. Vendors seek to understand what factors are involved in how construction companies make these decisions and how they might vary across different companies. This paper aims to present a systematic, technology adoption decision-making framework for the construction industry which includes the key steps required for the final decision being made by companies up to the commencement of the operation of the technology.
A total of 123 experienced practitioners were interviewed to identify a broad range of tasks relevant to decision-making. Participants known as customers or vendors were chosen to validate the findings of each group by using data triangulation methods. A systematic thematic analysis method was applied in the NVivo environment to analyse the data.
This study identifies the active role of vendors who need to understand how their customers arrive at decisions to increase the rate of technology adoption. This paper also provides insights to new companies and late adopters (reported greater than 50%) about how others arrived at their decisions.
Unlike other technology adoption models, this paper investigates vendors’ corresponding interactions during the decision-making process. This paper also goes beyond previous studies, which focussed on the individual customer’s intention to use a specific technology at a single-stage by developing a multi-stage framework to enable understanding the details of the decision process at the organisational level.
Purpose: The purpose of the work is to study the essence and to determine the algorithm and methodology of decision making as a choice of the existing alternatives…
Purpose: The purpose of the work is to study the essence and to determine the algorithm and methodology of decision making as a choice of the existing alternatives according to the scientific approach to this process of management of modern business systems.
Methodology: The research is conducted with the help of the method of process analysis, which allows determining the stages of the process of decision making in modern business systems and determining its algorithm; the method of formalization, which allows presenting the obtained algorithm; and the method of comparative analysis, which allows comparing the existing methods of decision making as a choice of the existing alternatives.
Conclusions: As a result of generalization and systematization of the existing scientific knowledge in the sphere of managerial decisions in modern business systems and reconsideration (logical analysis) of this process, its algorithm is compiled. Four stages of the algorithm of making of managerial decisions in modern business systems are distinguished – determining the needs of business system for managerial decisions, determining the possibilities of business system in making of managerial decisions, compiling alternative variants of managerial decisions, and implementation of the made managerial decision and further evaluation of its optimality. Also, methodological tools of each stage are determined.
Originality/value: The developed algorithm possesses the following advantages as compared to the existing scientific descriptions of this process: completeness, complex solution of the problems of the business system through managerial decisions, connection of the methodology of managerial decisions to each stage of the algorithm, and systemic character of the methodology of decision making as a choice of the existing alternatives.
The purpose of the study is to determine the nature, specificity, and role of management decisions in the management of modern enterprises. The problem of making effective…
The purpose of the study is to determine the nature, specificity, and role of management decisions in the management of modern enterprises. The problem of making effective management decisions is crucial in the organization of modern enterprises in the face of uncertainty and high risks of business, complex economic situations, and the increasing importance of strategic decisions. As a result of the development of the science of management decisions, business has received technologies and techniques for making effective management decisions that improve the ability of management to make informed, objective decisions in situations of exceptional complexity. Some scholars argue with the statement that the essence of management is revealed in the ability to make decisions, to reflect the real problems, relationships and relationships that have developed in the organization. The stability of the modern enterprise depends on the controllability of the control system, the transfer of the system from any initial state to any other specified state, the ability to determine the state of the system by the controlled value, and the control effect. It is proposed to assess the quality of management decisions made by the efficiency of the tasks performed and the problems solved. The lack of an unambiguous approach to determining the factors affecting the quality of development and management decision making means the need for management to determine the specifics and logic of decisions based on the assessment of the situation, the structuring of tasks and problems, the level of management culture, available tools and mechanisms for the implementation of decisions, and performance discipline.
Purpose: The purpose of the chapter is to determine the connection between organizational culture and specifics of the process of decision making in modern business…
Purpose: The purpose of the chapter is to determine the connection between organizational culture and specifics of the process of decision making in modern business systems and to determine the directions of managing the organizational culture depending on the set criteria of decision making.
Methodology: A proprietary classification of the types of organizational culture of modern business systems according to the criterion of employees' involvement into decision making is offered. This classification uses two dimensions of employees' involvement into decision making for classification of the types of organizational culture of modern business systems. First dimension: interest of business manager in involvement of employees into the process of decision making. Second dimension: employees' inclination for participation in the process of making of managerial decisions. The factors that influence these dimensions are determined.
Conclusions: Connection between organizational culture and specifics of decision making in modern business systems according to the criterion of employees' involvement in decision making is determined. The minimal level of involvement envisages independent decision making by business manager without participation of employees. In this case, a lot of problems of the business system remain unsolved and possibilities remain unused. Resource intensity of decision making is the highest, and their practical implementation is complicated by employees' dissatisfaction, but this process is conducted very quickly. The medium level of involvement envisages either collective discussion, but decision making by business manager, or collection of feedback by business manager with low interest in it from employees. In this case, resource intensity of decision making is lower, and decisions could be made and implemented faster. The highest level of involvement is connected to collective decision making by employees and business manager. This allows determining problems and using possibilities of the business system with minimal resources. Though the duration of the process of decision making is the highest, solutions are implemented quickly due to employees' support.
Originality/value: The determined specifics show the necessity for considering the influence of the organizational culture on specifics of the process of decision making in modern business systems. It is substantiated that no type of organizational culture of modern business systems according to the criterion of employees' involvement in decision making can provide a guarantee of decisions' optimality. The directions of managing the organizational culture depending on the set criteria (completeness, speed, resource intensity) of decision making are recommended.
Purpose: The purpose of the work is to determine the possibilities and consequences of decision making in modern business systems by the principles of outsource.Methodology…
Purpose: The purpose of the work is to determine the possibilities and consequences of decision making in modern business systems by the principles of outsource.
Methodology: During studying the perspectives of decision making in modern business systems by the principles of outsource, the method of logical analysis (analysis of causal connections), the method of structural and functional analysis, and the method of formalization are used.
Conclusions: Perspective directions, advantages, and drawbacks of application of outsource for decision making in modern business systems at different stages of this process are determined. Possible variants of decision making in a modern business system by the principles of outsource and their consequences are determined: information and consultation decision support, business system's overcoming a crisis, optimization of certain business processes, and loss of independence of business system and path to its reorganization.
Originality/value: As a result, it is substantiated that outsource is a perspective tool of making of managerial decisions in modern business systems. Various directions of application of this tool are accessible at each stage of the process of making of managerial decisions in a modern business system. The advantages of decision making by the principles of outsource are attraction of additional resources, access to possibilities of automatization, and low expenses, and the drawbacks include the complexity of organization of this process and temporary character of obtained advantages. Too active usage of outsource and transfer of most managerial decisions to it may lead to loss of independence of the business system and increase of the risk of its reorganization. That's why the principles of outsource are recommended for making of certain managerial decisions by business systems in the period of crisis and by newly formed business systems and those that experience deficit of resources.
Purpose: The purpose of the chapter is to determine the regularities and tendencies of decision making in business systems by the example of modern Russia.Methodology: The…
Purpose: The purpose of the chapter is to determine the regularities and tendencies of decision making in business systems by the example of modern Russia.
Methodology: The method of logical analysis (analysis of causal connections) and the method of dynamic analysis of development of socioeconomic systems are used. These methods are applied with the current statistical and analytical information. The information and analytical basis of the research is the materials of the Federal State Statistics Service for 2018.
Conclusions: The factors of functioning and development of modern business systems, related to development of E-commerce, liberalization of state regulation of business systems, growth of their competition and corporate responsibility, change of technological mode, and crisis are determined. Influence of these factors on managerial decisions is connected to reduction of resource provision of business systems, accessibility of new managerial tools, complication of made decisions (growth of the number of accessible decisions), growth of the number of new technologies of decision making, and increase of the risk component of decisions. Regularities and tendencies of decision making are determined: striving for saving resources during decision making, more active usage of new managerial tools during decision making, striving for acceleration of the process of making of more complicated managerial decisions, more active usage of new technologies during decision making, and striving for minimization of risks of made decisions.
Originality/value: It is substantiated that the determined regularities and tendencies of decision making lead to increase of contradiction during making of managerial decisions in modern business systems, connected to growth of complexity of this process and simultaneous reduction of resources and time that are accessible to business managers. In order to solve this contradiction, it is necessary to implement cardinal changes into the process of making of managerial decisions in modern business systems, which allow – with minimum managerial cost – determining multiple alternative variants of solutions of the whole specter of current problems of a business system and comparing them as to mutually excluding criteria, thus making complex decisions.