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Book part
Publication date: 1 August 2019

Evgeniy G. Molchanov, Angelika K. Musaelyan, Ruslan G. Mikhaylenko and Elena N. Smertina

Purpose: The purpose of the chapter is to determine the dependence of the process of decision making in modern business systems on their organizational structure and to…

Abstract

Purpose: The purpose of the chapter is to determine the dependence of the process of decision making in modern business systems on their organizational structure and to substantiate the necessity for considering the requirements to the process of decision making during designing the organizational structure of a business system.

Methodology: A new simplified classification of the organizational structure of business systems according to the criterion of complexity is offered, and its two main types are distinguished – organizational structure of low complexity and organizational structure of high complexity.

Conclusions: According to the offered classification, dependence of the process of decision making in modern business systems on complexity of their business structure at each stage of making of managerial decisions is determined. As a result of analysis of statistical data, it is determined that business systems with organizational structure of low complexity dominate in Russia. By the example of modern Russian business systems with the organizational structure of high complexity – Sberbank, Lukoil, Gazprom, and Rosneft – it is shown that formation of the structure of this type and supporting its functioning requires resources and thus is inaccessible for most modern business systems. Moreover, the expected advantages, related to high probability of making of optimal managerial decisions, are not always gained in practice.

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.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Book part
Publication date: 1 August 2019

Aleksei V. Bogoviz, Leonid F. Malinovski, Tamara G. Stroiteleva, Maxim M. Sharamko and Vera V. Dvoretskaya

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…

Abstract

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.

Details

Specifics of Decision Making in Modern Business Systems
Type: Book
ISBN: 978-1-78756-692-7

Keywords

Article
Publication date: 14 June 2022

Ruida Li, Li Zheng and Ling Yuan

External environment drives established enterprises to employ management innovation. Drawing on dual-process theories, this paper purports to investigate TMT's intuitive…

Abstract

Purpose

External environment drives established enterprises to employ management innovation. Drawing on dual-process theories, this paper purports to investigate TMT's intuitive and rational decision-making styles as mediating roles between perceived environmental turbulences and management innovation, and explain how organizational slack play an critical moderating role.

Design/methodology/approach

SPSS 25 is used to test 120 established enterprises' top management team (TMT) samples in China, and the moderated mediation model is empirically tested by using hierarchical regression analysis and conditional process analysis.

Findings

Perceived environmental turbulences promotes management innovation. Organizational slack as contextual variable influences the relationship between technology turbulence and TMT's decision-making styles. Interestingly, only perceived technology turbulence indirectly affects management innovation through TMT's intuitive decision-making when moderated by organizational slack. However, the indirect effect from perceived market turbulence to management innovation through TMT's rational decision-making is not significant when moderated by organizational slack.

Originality/value

Based on management innovation's human agency perspective, TMT's decision-making styles have not been discussed in research on management innovation. This paper sheds light on TMT's decision-making styles as mediating role.

Details

Journal of Organizational Change Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0953-4814

Keywords

Book part
Publication date: 10 June 2015

Alexandra E. MacDougall, Zhanna Bagdasarov, James F. Johnson and Michael D. Mumford

Business ethics provide a potent source of competitive advantage, placing increasing pressure on organizations to create and maintain an ethical workforce. Nonetheless…

Abstract

Business ethics provide a potent source of competitive advantage, placing increasing pressure on organizations to create and maintain an ethical workforce. Nonetheless, ethical breaches continue to permeate corporate life, suggesting that there is something missing from how we conceptualize and institutionalize organizational ethics. The current effort seeks to fill this void in two ways. First, we introduce an extended ethical framework premised on sensemaking in organizations. Within this framework, we suggest that multiple individual, organizational, and societal factors may differentially influence the ethical sensemaking process. Second, we contend that human resource management plays a central role in sustaining workplace ethics and explore the strategies through which human resource personnel can work to foster an ethical culture and spearhead ethics initiatives. Future research directions applicable to scholars in both the ethics and human resources domains are provided.

Details

Research in Personnel and Human Resources Management
Type: Book
ISBN: 978-1-78560-016-6

Keywords

Article
Publication date: 19 June 2007

A.G. Sheard and A.P. Kakabadse

This monograph seeks to summarise the key influences of a role‐based perspective on leadership when making decisions as to how organisational resources can best be deployed.

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Abstract

Purpose

This monograph seeks to summarise the key influences of a role‐based perspective on leadership when making decisions as to how organisational resources can best be deployed.

Design/methodology/approach

Application of new frameworks provides insight into the leadership roles executives can adopt when part of formal, informal and temporary groups within the organisation's senior management team and those parts of the organisation for which they are responsible. The methodology adopted is qualitative, focusing on application of previously developed frameworks.

Findings

Adoption of an appropriate leadership role, and the timely switch from one role to another as circumstances change, are found to facilitate improvement in the ability of executives to mobilise organisational resources, and in so doing effectively address those challenges with which the organisation is faced.

Research limitations/implications

A one‐organisation intensive case study of a multinational engineering company engaged in the design, development and manufacture of rotating turbomachinery provides the platform for the research. The research intent is to validate two frameworks in a different organisation of a similar demographic profile to those in which the frameworks were developed. The frameworks will require validating in organisations of different demographic profiles.

Practical implications

The concepts advanced, and implications discussed, provide an insight into the role‐based nature of leadership. The practical steps individual executives can take to develop their ability to adopt different leadership roles are highlighted.

Originality/value

This monograph is an investigation into, and study of the contribution of theory that provides insight into, the process by which executives effectively mobilise organisational resources. This differs from the original contributions to theory, which focused on methodology, data gathering and validation in contrast with the current study that is focused on practical application.

Details

Journal of Management Development, vol. 26 no. 6
Type: Research Article
ISSN: 0262-1711

Keywords

Article
Publication date: 1 August 2016

Christopher Wilson

The purpose of this paper is to understand the extent to which dominant coalition members’ values and perceptions influence their perceptions of public relations…

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Abstract

Purpose

The purpose of this paper is to understand the extent to which dominant coalition members’ values and perceptions influence their perceptions of public relations participation in organization-level decision making. Research in this area has largely focussed on the relationship between practitioner roles and decision-making inclusion.

Design/methodology/approach

The population of interest was dominant coalition members of for-profit, government, and nonprofit organizations in the USA. Data were collected through a national survey to a nonrandom sample of 201 dominant coalition members.

Findings

Results indicate that dominant coalition members’ values of organizational openness to the environment and perceived substantive autonomy of the organization positively predicted perceptions of public relations participation in organizational decision making. Perceived manager role potential of the public relations department also had significant predictive power.

Originality/value

While research has focussed primarily on the characteristics that public relations practitioners can develop to earn a seat at the management table, little is known about the characteristics of dominant coalition members that influence whether or not a seat is made available or the degree to which public relations is perceived to participate in decision making.

Details

Journal of Communication Management, vol. 20 no. 3
Type: Research Article
ISSN: 1363-254X

Keywords

Article
Publication date: 3 October 2016

Luqman Oyekunle Oyewobi, Abimbola Windapo and James Olabode Bamidele Rotimi

The decision-making styles and strategies of organisations play significant roles in their competitive advantage and the achievement of superior performance. The purpose…

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Abstract

Purpose

The decision-making styles and strategies of organisations play significant roles in their competitive advantage and the achievement of superior performance. The purpose of this study is to explore the effect of decision-making styles on the strength of the relationship between competitive strategy and organisational performance among large construction organisations based in South Africa.

Design/methodology/approach

The study focuses on large construction organisations in South Africa using a questionnaire survey to elicit information. The sample consists of 72 large construction organisations, and the measures of decision-making styles, competitive strategies and organisational performance used for the instrument utilised to elicit information were derived from the literature. Descriptive, parametric and multiple regression analyses were used to determine the effect of decision-making styles and competitive strategies on the organisations’ performance.

Findings

The results of the study show that organisations utilize all types of decision-making styles, but the most significantly adopted styles are analytical and directive. The study found that decision-making styles influence organisational performance through competitive strategies.

Research limitations/implications

The research considered large construction organisations based in South Africa and operating in three provinces, where almost 75 per cent of all public projects are being implemented. The findings can be generalised to other large construction organisations functioning within the South African industry, because most of the organisations surveyed operate nationally. However, the findings may not be generalizable to the entire industry. Small and medium-sized organisations vary in terms of structure in relation to large organisations; hence, their decision-making styles may be different.

Practical implications

The study makes explicit the need to consider the role of different decision-making styles being practiced within organisations and how their moderating effect influences organisational performance beyond rational processes. A better understanding of this will enable organisations to achieve the total commitment of their staff to achieve superior performance.

Originality/value

The study contributes to the existing literature and body of knowledge on the strategic management of organisations. It underpins the assertion that decision-making styles and competitive strategies can influence organisational performance, and this is validated within the construction industry. Knowledge of the relationships between the variables measured in this paper will be beneficial to both owners and managers of construction organisations, because they provide the necessary information on how strategic decision-making styles influence the strategy adopted and, in turn, the organisational performance.

Details

Journal of Engineering, Design and Technology, vol. 14 no. 4
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 12 July 2018

Sean Robert Valentine, David Hollingworth and Patrick Schultz

Focusing on ethical issues when making organizational decisions should encourage a variety of positive outcomes for companies and their employees. The purpose of this…

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Abstract

Purpose

Focusing on ethical issues when making organizational decisions should encourage a variety of positive outcomes for companies and their employees. The purpose of this paper is to determine the degree to which data-based ethical decision making, lateral relations and organizational commitment are interrelated in organizations.

Design/methodology/approach

Data were collected from business professionals employed at multiple locations of a financial services firm operating in the USA. Mediation analysis (based on structural equation modeling) was used to test the proposed relationships.

Findings

Results indicated that employees’ perceptions of data-based ethical decision making were positively related to perceived lateral relations, and that perceived lateral relations were positively related to organizational commitment.

Research limitations/implications

Given that information was collected using only a self-report questionnaire, common method bias could be an issue. In addition, the study’s cross-sectional design limits conclusions about causality. Another limitation involves the study’s homogenous sample, which decreases the generalizability of the findings. Finally, variable responses could have been impacted by individual frames of reference and other perceptual differences.

Practical implications

Results suggest that information flow enhancements should support or be consistent with horizontal information flow enhancements, and that together these factors should increase employee commitment.

Originality/value

Given the dearth of existing research, this interdisciplinary investigation is important because it fills gaps in the management literature. This study is also important because the results could inform decisions regarding the use of data analysis in ethical decisions and lateral forms of organizational structuring to improve work attitudes.

Details

Employee Relations, vol. 40 no. 6
Type: Research Article
ISSN: 0142-5455

Keywords

Abstract

Details

Organization Theory
Type: Book
ISBN: 978-1-78560-946-6

Book part
Publication date: 26 August 2016

Markus Mykkänen

Traditionally, the debate on communication value and the contribution of communication professionals to organisational decision-making has been linked to diverging roles…

Abstract

Traditionally, the debate on communication value and the contribution of communication professionals to organisational decision-making has been linked to diverging roles (managers, technicians). This chapter introduces an alternative view, based on an exploratory, qualitative study of communication professionals in Finland. It focuses on the diverse ways in which these professionals contribute to organisational decision-making. The results show a rich, constantly developing picture of communication practices, which challenges the traditional dichotomy of manager and technician roles.

Details

The Management Game of Communication
Type: Book
ISBN: 978-1-78635-716-8

Keywords

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