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This paper aims to demonstrate the efforts of Hay Youssef and Tang (2019) to reaffirm the importance of managerial discretion is unsuccessful.

Theoretical frameworks from traditional and recent literature on the concept of managerial discretion are related to corporate governance scholarship.

There are in fact no studies on managerial discretion based on explicit theoretical and empirical definitions and thus no studies published which have measured the degrees of managers’ discretion. The conclusion is that the inability to define the notion of managerial discretion is tantamount to the inability to research it.

Research on managerial discretion does not provide any advice to owners and directors of boards on granting top executives a high or a low degree of discretion.

This paper reaffirms the conclusion of Andersen (2017) that corporate governance scholarship will improve if it abandons the concept of managerial discretion.

Village health volunteers are community health volunteers in Thailand that have helped the government deliver public health services for many years, particularly during the coronavirus disease 2019 (COVID-19) pandemic. Though labeled as “volunteers,” the village health volunteers are recruited, trained and supervised in a manner similar to how a government agency recruits, trains and supervises its street-level bureaucrats (SLBs). This study examines the two factors that affect how these street-level quasi-bureaucrats use their professional discretion: transformational leadership and public service motivation (PSM). Transformational leadership means a leadership style that develops, shares and sustains a vision to elevate SLBs to higher levels of performance, while PSM is defined as an SLB’s predisposition to make a difference by working in the public sector with a sense of calling. This study attempts to analyze the mediating role of psychological empowerment in the relationship between transformational leadership, PSM and professional discretion.

The paper uses a three-wave survey-based quantitative method to avoid common method biases. This method provides evidence gathered from 105 subdistrict health promotion hospitals and 798 village health volunteers (VHVs) in five provinces in Thailand.

PSM and transformational leadership influence the village health volunteers' use of professional discretion indirectly through the psychological empowerment mechanisms that make them feel positive toward their village health volunteer role and responsibility. The authors' findings suggest that the hospital directors' transformational leadership induces the village health volunteers' use of professional discretion by making them feel competent to do their work and feel fulfilled and valuable about their work. Similarly, the village health volunteers' PSM leads them to use professional discretion by making them feel fulfilled and valuable and by convincing them of the social and community impact of their work.

While existing research focuses on VHVs' role in alleviating capacity constraints on the health care system, this study revealed an equally important role played by hospital directors. These directors' transformational leadership was instrumental in enhancing VHVs' psychological empowerment – particularly their perceptions of the meaning of their work and their competence – that ultimately enabled them to use professional discretion in their work. This study also highlighted the importance of VHVs' PSM, which leads to their use of professional discretion via the meaning and impact dimensions of psychological empowerment. Based on this study, PSM should also be incorporated into the community health volunteers' recruitment criteria. Also, public health agencies should consider including transformational leadership in the hospital directors' training programs and their promotion criteria.

As VHVs' high-PSM level was found to enhance their professional discretion, the process of recruiting ordinary citizens to serve as community health volunteers should incorporate assessment of the candidates' PSM. Also, the Ministry of Public Health should design and assign tasks that citizen volunteers, particularly VHVs, consider meaningful and at which they feel competent.

Aside from technical training, directors of the subdistrict health promotion hospitals should regularly receive soft skill training (i.e. leadership training) and transformational leadership characteristics should be included in the government criteria for promotion.

While past research has examined the impact of other leadership styles on psychological empowerment, this study took a further step by examining the mediating effects of psychological empowerment on the relationship between transformational leadership and professional discretion among VHVs. The authors analyzed the mechanism linking PSM to the VHVs' professional discretion. In addition, by examining the relative importance of different dimensions of psychological empowerment, this study offers a nuanced understanding of the psychological processes by which transformational leadership and PSM shape the SLBs' use of professional discretion in their work.

The theory of managerial discretion and the direct insights it provides in the understanding of the varying impact strategic and operational actions have on organizational change and business fortunes is an area of research potential underexplored in the UK. This study aims to establish whether the measurement of managerial discretion is constant between the two similar societal corporate frameworks of the UK and the USA listed markets.

The extant managerial discretion ranking model, established in the USA, is empirically assessed for its validity and effectiveness across a sample of high- and low-discretion companies from the FTSE 350.

Using accounting measures, a clear and significant difference is established between UK high and low managerial discretion entities. The results prove to be significant in enabling the differential comparative analysis of the institutional characteristics of corporates.

To the best of the authors’ knowledge, no study of this nature has been conducted previously in the UK context. While the original model developed in the USA is now several decades old, the UK results reflect similar industry rankings as found originally in the USA, subject to some differences considered to be a result of the changing nature of global business since the 1990s. This study opens a new seam of novel research, which has the potential to uncover, at a granular level, the differential mores and character of management ethics, styles and practices in such issues as organizational change, corporate culture, governance and social responsibility.

The objective of this research is to analyze the extent to which street-level bureaucrats (SLBs) have exercised discretion (low, medium and high) and the contributing factors involved (i.e. the influence of personal, work environment and demographic factors on the exercise of discretion).

The mixed-methods research uses the embedded design approach. Data were collected during the COVID-19 pandemic through a survey of 2,867 Official Certifier of Title Deeds (Pejabat Pembuat Akta Tanah/PPAT) as SLBs spread across fifty regencies/cities in ten provinces in Indonesia.

This field study found a significant and positive correlation between SLBs' economic motive and the client's knowledge of land issues with the exercise of discretion. In addition, the study found a significant correlation between the age and gender of SLBs and their practice of discretion.

This study provides insights into that new policies should not further complicate the system but reduce face-to-face interactions between SLBs and their clients by allowing digital technology.

The novelty of this research is the paradox of SLB service during the COVID-19 pandemic differed from the paradoxes identified in earlier studies. SLBs commonly cope with service paradox by limiting their services or focusing solely on the most profitable clientele. However, this study shows that some SLBs actively reach out to clients using a “friendly” service model.

Seeks to examine how far Michael Lipsky's theory of discretion as it relates to public sector professionals as “street‐level bureaucrats” is still applicable in the light of public sector reform and in particular the introduction of increased managerial control over professionals.

The main thesis in Lipsky's work, Street‐Level Bureaucracy, that street‐level bureaucrats devise their own rules and procedures to deal with the dilemmas of policy implementation is linked to public sector reform over the past 25 years or so. The article differentiates between three forms of discretion, rule, task and value and assesses the extent to which these different forms of discretion have been compromised by reform. Examples are drawn principally from the literature on school teachers and social workers

The findings suggest that the rule‐making (hence bureaucratic) capacity of professionals at street‐level is much less influential than before although it is questionable whether or not the greater accountability of professionals to management and clarity of the targets and objectives of organisations delivering public policy has liberated them from the dilemmas of street‐level bureaucracy.

The work has focussed on the UK and in particular on two professions. However, it may be applied to any country which has undergone public sector reform and in particular where “new public management” processes and procedures have been implemented. There is scope for in‐depth studies of a range of occupations, professional and otherwise in the UK and elsewhere.

Policy makers and managers should consider how far the positive aspects of facilitating discretion in the workplace by reducing the need for “rule‐making” to cope with dilemmas have been outweighed by increased levels of bureaucracy and the “de‐skilling” of professionals.

Lipsky's much cited and influential work is evaluated in the light of public sector reform some 25 years since it was published. The three forms of discretion identified offer the scope for their systematic application to the workplace.

The purpose of this paper is to examine the moderating effect of discretion and social capital on the relationship between individual perceptions of team conflict and employee-level outcomes. The authors propose that both employee discretion and unit-level social capital influence the negative effects of perceived conflict on employee stress and turnover intentions. They argue that an individual’s perceptions of these central organizational characteristics are likely to alter the consequences associated with conflict and the manner in which individuals respond to it.

This study empirically tests the moderating effects of discretion and unit-level social capital on the relationship between individual’s perception of team conflict and employee-level outcomes. Analysis was conducted with survey data from a sample of health care care providers in 90 units across 20 nursing home organizations. We applied hierarchical linear modeling analyses to test our hypotheses.

Results demonstrate that employee discretion moderates the relationship between perceived task conflict and job stress. Unit-level social capital was shown to moderate the relationship between perceived relationship conflict and employee turnover intentions. Our findings also document a varied moderation effect at low to moderate levels of conflict versus high levels of conflict. This finding suggests that the moderating role of contextual variables is more nuanced and complex than the existing conceptual frameworks acknowledge.

This study contributes to the research on conflict and conflict management by extending a multilevel approach to the effect of conflict and by providing new insights regarding the contextual manner in which conflict affects workplace outcomes.

The effects of discretion and unit-level social capital on how conflict is metabolized by organizations and their members varied. Contextual factors matter differently for different individual level outcomes. In attempting to manage the consequences associated with workplace conflict, organizations and their managers must consider different contextual factors.

This study contributes to the research on conflict and its management in organization by providing new insights regarding the contextual manner in which conflict affects organizational and individual outcomes. This study provides support for the claim that the relational and task-related context under which employees experience conflict affects employee stress levels and the extent to which they report their intentions to leave the organization.

This paper aims to assess the concept of managerial discretion with respect to its theoretical and empirical usefulness for corporate governance research.

This paper scrutinises applied theoretical claims, definitions and methods, as well as a number of empirical studies on managerial discretion.

To date, no empirical definition of the concept has been presented and no measurement has been developed and tested for reliability and validity that contains all three factors of the managerial discretion concept, as proposed by Hambrick and Finkelstein (1987).

Research on managerial discretion does not provide owners and directors of boards with any advice on granting top managers a high or low degree of discretion.

This paper concludes that corporate governance scholarship will improve if it abandons the concept of managerial discretion.

The purpose of this paper is to analyze the influence of managerial discretion on the effectiveness of say on pay (SOP) as a governance mechanism. This goal covers an important gap since the issue of how effective SOP is in promoting more aligned compensation has proved somewhat controversial.

This empirical research opted for a panel methodology for the period 2003–2017, using a sample of large UK listed-companies (specifically, 3,445 firm-year observations). Data were obtained from several sources (Manifest Ltd, BoardEx, Worldscope, Factset Ownership and DataStream).

Results show that managerial discretion plays an important role in the effectiveness of SOP as a mechanism for increasing aligned CEO compensation. While individual discretion (latitude of objectives) exerts a negative effect, contextual discretion (latitude of action) increases SOP effectiveness. The global effect of managerial discretion is positive when there is high level of both individual and contextual discretion.

This empirical study provides evidence concerning an emerging topic in the literature regarding the impact of SOP as a shareholder activism mechanism of corporate governance on executive compensation. By taking managerial discretion into consideration as a relevant moderating factor, it also offers a better explanation of SOP effectiveness as a governance mechanism.

This study aims to investigate whether underwriters exercise their allocation discretion to offer favorable discounts to institutional investors.

The research covers 173 offerings at Borsa Istanbul between 2010 and September 2021. Two hypotheses related to allocation discretion are developed and tested by means of probit, ordinary least squares and two-stage least squares regressions. Heckman selection regressions are used for robustness tests.

Allocation discretion is catered toward institutional investors who account for more than 56% of all initial allocations adjusted by gross proceeds. Close to 84% of all gross proceeds come from offerings that allocation discretion is exercised. These discretionary offerings are sold with larger price discounts, yet provide lower initial returns, while evidence points to reallocation to retail investors due to weak demand from institutional investors.

Despite using the population of firms in the research period, the sample size is small relative to more developed markets. The research period cannot be extended because allocation discretion is allowed in 2010.

The research highlights the importance of institutional and foreign investors to the equity markets. This issue is relevant due to the ongoing flight of foreign investors from emerging economies and the increasing participation of small investors in the stock markets.

The study cautions retail investors against greater (re)allocations by underwriters who may seek to compensate for the loss of their foreign investor base and urges policymakers to regain foreign investors.

To the best of the authors’ knowledge, this is the first research paper to use actual discounts disclosed in the prospectus to test the predictions related to allocation discretion. The study also contributes to the emerging markets literature by documenting allocation practices of the Turkish underwriters for the first time.

The purpose of this paper is to examine cross-cultural differences in managerial discretion and the extent to which variations and interaction of cultural practices and values affect the degree of freedom in decision making that is accorded to executives. This paper offers a holistic approach to investigating culture in addition to acknowledging its paradoxical nature.

Using a panel of prominent management consultants to rate discretion across 18 countries, the authors further develop the national-level construct of managerial discretion by empirically investigating the influence of cultural practices and values on CEOs’ discretion.

The study reveals that cultural values moderate the relationship between cultural practices and managerial discretion for three cultural dimensions: individualism, uncertainty tolerance and power distance (PD). By adopting the logic of marginal utility, the authors also show that the more a society values individualism, uncertainty tolerance and PD, the weaker the effect of their practices on managerial discretion.

Few research has attempted to assess both cultural values and practices in relation to managerial discretion. By showing the mechanism in which culture affects the level of managerial discretion, the authors offer new theoretical insights and practical implications, overall contributing to the field of cross-cultural and strategic management. Finally, this will offer CEO’s a new perspective of leveraging culture as a tool, enhancing their decision-making capabilities in the aim of improving organizational performance.