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1 – 10 of over 121000Decision-making plays a vital role in business. Yet as a trait, it is often overlooked when identifying, assessing, onboarding and empowering leadership talent. This study…
Abstract
Purpose
Decision-making plays a vital role in business. Yet as a trait, it is often overlooked when identifying, assessing, onboarding and empowering leadership talent. This study, therefore, aims to focus on the dimensions of organisational decision-making and investigate whether it should be an integral factor in the hiring process. The survey also looks at the relationships between decision-making and executive leadership, talent strategy and employee satisfaction. Could good decision-making as a trait be a factor when it comes to retention, improving organisational thinking and thriving leadership?
Design/methodology/approach
A quantitative and qualitative survey was commissioned and conducted by FT Longitude, part of the Financial Times Group. This included a questionnaire sent out to 400 senior executives at C-suite, C-1 and C-2 levels. The respondents were from companies with more than 1,000 employees in 13 industries and from five countries across the Americas, Europe and Asia-Pacific. This was also accompanied by in-depth interviews with three experts from both the public and private sector.
Findings
Almost two-thirds (63%) of senior executives have resigned or considered resigning due to frustration with organisational decision-making, while 29% have considered quitting because they were frustrated with the way a company makes decisions. More than a third (34%) resigned for this reason. Yet, a quarter of senior executives say that their decision-making experience was not explicitly discussed before starting their job. Senior executives who were asked about decision-making in interviews were 1.4 times more likely to be satisfied with their jobs. The ability to make decisions should therefore play a central role in hiring senior executives.
Originality/value
Decision-making as a trait has been neglected when hiring executives. For the first time, this research shows how significant it is for leadership teams. If senior executives are to improve organisational decision-making, this trait needs codifying in HR processes. This has led Kingsley Gate to embed it in recruitment profiling.
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Takes the view that managerial decisions are made in a diversity oforganizational settings which can best be explained and evaluated in thecontext of conceptual interdisciplinary…
Abstract
Takes the view that managerial decisions are made in a diversity of organizational settings which can best be explained and evaluated in the context of conceptual interdisciplinary decision‐making models, and that such models constitute an appropriate vehicle for explaining the eclectic aspects of managerial decision making in all types of formal organization. Presents a typology of conceptual decision‐making models and evaluates their similarities and differences along with their respective efficacies in various managerial decision‐making contexts. Advances the process model of managerial decision making as the ideal choice for decisions which have significant long‐term consequences for the whole organization.
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Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team…
Abstract
Purpose
Managers must make numerous strategic decisions in order to initiate and implement a business model innovation (BMI). This paper examines how managers perceive the management team interacts when making BMI decisions. The paper also investigates how group biases and board members’ risk willingness affect this process.
Design/methodology/approach
Empirical data were collected through 26 in-depth interviews with German managing directors from 13 companies in four industries (mobility, manufacturing, healthcare and energy) to explore three research questions: (1) What group effects are prevalent in BMI group decision-making? (2) What are the key characteristics of BMI group decisions? And (3) what are the potential relationships between BMI group decision-making and managers' risk willingness? A thematic analysis based on Gioia's guidelines was conducted to identify themes in the comprehensive dataset.
Findings
First, the results show four typical group biases in BMI group decisions: Groupthink, social influence, hidden profile and group polarization. Findings show that the hidden profile paradigm and groupthink theory are essential in the context of BMI decisions. Second, we developed a BMI decision matrix, including the following key characteristics of BMI group decision-making managerial cohesion, conflict readiness and information- and emotion-based decision behavior. Third, in contrast to previous literature, we found that individual risk aversion can improve the quality of BMI decisions.
Practical implications
This paper provides managers with an opportunity to become aware of group biases that may impede their strategic BMI decisions. Specifically, it points out that managers should consider the key cognitive constraints due to their interactions when making BMI decisions. This work also highlights the importance of risk-averse decision-makers on boards.
Originality/value
This qualitative study contributes to the literature on decision-making by revealing key cognitive group biases in strategic decision-making. This study also enriches the behavioral science research stream of the BMI literature by attributing a critical influence on the quality of BMI decisions to managers' group interactions. In addition, this article provides new perspectives on managers' risk aversion in strategic decision-making.
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Na Zhang, Haiyan Wang and Zaiwu Gong
Grey target decision-making serves as a pivotal analytical tool for addressing dynamic multi-attribute group decision-making amidst uncertain information. However, the setting of…
Abstract
Purpose
Grey target decision-making serves as a pivotal analytical tool for addressing dynamic multi-attribute group decision-making amidst uncertain information. However, the setting of bull's eye is frequently subjective, and each stage is considered independent of the others. Interference effects between each stage can easily influence one another. To address these challenges effectively, this paper employs quantum probability theory to construct quantum-like Bayesian networks, addressing interference effects in dynamic multi-attribute group decision-making.
Design/methodology/approach
Firstly, the bull's eye matrix of the scheme stage is derived based on the principle of group negotiation and maximum satisfaction deviation. Secondly, a nonlinear programming model for stage weight is constructed by using an improved Orness measure constraint to determine the stage weight. Finally, the quantum-like Bayesian network is constructed to explore the interference effect between stages. In this process, the decision of each stage is regarded as a wave function which occurs synchronously, with mutual interference impacting the aggregate result. Finally, the effectiveness and rationality of the model are verified through a public health emergency.
Findings
The research shows that there are interference effects between each stage. Both the dynamic grey target group decision model and the dynamic multi-attribute group decision model based on quantum-like Bayesian network proposed in this paper are scientific and effective. They enhance the flexibility and stability of actual decision-making and provide significant practical value.
Originality/value
To address issues like stage interference effects, subjective bull's eye settings and the absence of participative behavior in decision-making groups, this paper develops a grey target decision model grounded in group negotiation and maximum satisfaction deviation. Furthermore, by integrating the quantum-like Bayesian network model, this paper offers a novel perspective for addressing information fusion and subjective cognitive biases during decision-making.
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This paper describes how financial professionals' behavioral biases influence their financial forecast and decision-making process. Most of the earlier studies are focused on…
Abstract
Purpose
This paper describes how financial professionals' behavioral biases influence their financial forecast and decision-making process. Most of the earlier studies are focused on well-developed financial markets, and little is researched about financial professionals, such as institutional investors, portfolio managers, investment advisors, financial analysts, etc., in emerging markets.
Design/methodology/approach
An expert-validated questionnaire measure four prominent behavioral biases and Indian financial professionals' rational decision-making process. The final sample consists of 274 valid responses using the purposive sampling technique. IBM SPSS and AMOS structural equation modeling (SEM) software are used to build measurement and structural models, multivariate analysis including regression, factor analysis, etc.
Findings
The results provide empirical insights into the relationship between behavioral biases and the decision-making process. The results suggest that the structural path model closely fits the sample data. The presence of behavioral biases indicates that financial professionals' forecasting and decision-making is not always rational but bounded rational or irrational due to these factors. Furthermore, these biases (except overconfidence bias) have a markedly significant and positive relationship with irrational decision-making.
Research limitations/implications
It is critical to eradicate these psychological errors, but awareness and attentiveness toward behavioral biases may help financial professionals to make informed decisions. Investors can improve their portfolio decisions and investments by recognizing their judgment errors and focusing on specific investment strategies to mitigate the impact of these biases. It is necessary to incorporate behavioral insights while developing training techniques for financial professionals. Rules of thumb, visual tools, financial coaching and implementing social-cultural elements in training programs enable financial professionals to develop simple, engaging, appealing and customized approaches for their clients.
Originality/value
This novel study is the first of this kind of research that examines the relationship between financial professionals' behavioral biases and rational decision-making process. This study significantly and remarkably provides insights into irrationality in financial professionals' decision-making.
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Virgílio Vasconcelos Souza, Lucas Lopes Ferreira Souza, Oderlene Oliveira, Elnivan Moreira de Souza and Juliana Silva Costa
The purpose of this research is to analyze the influence of heuristics on Brazilian investors' behavior in the decision-making process.
Abstract
Purpose
The purpose of this research is to analyze the influence of heuristics on Brazilian investors' behavior in the decision-making process.
Design/methodology/approach
The authors apply the partial least squares structural equation modeling methodology. This sample is composed of 220 investors.
Findings
The heuristics of overconfidence and anchoring positively influence investors' decision-making, while loss aversion negatively influences it. The herd effect exhibits no influence. The results also support the idea that decision-making positively influences investors' performance. Investors feel secure in their attitudes regarding financial decision-making, even if their decisions are not always rational as they are affected by biases.
Originality/value
This article explains the influence of heuristics on investors' decision-making and performance in the Brazilian context during the COVID-19 pandemic.
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M. Isabella Cavalcanti Junqueira, Allan Discua Cruz and Paul C. Gratton
This study aims to address decision-making processes of Christian entrepreneurs living and working in rural areas. The authors draw on the institutional logics perspective and…
Abstract
Purpose
This study aims to address decision-making processes of Christian entrepreneurs living and working in rural areas. The authors draw on the institutional logics perspective and stewardship perspective to demonstrate how religion influences rationality and entrepreneurial decision-making processes in a rural context.
Design/methodology/approach
This study adopts a qualitative interpretive approach supported by ethnographic fieldwork. Qualitative and interpretative analyses are used to access deeper insights into the decision-making processes of Christian entrepreneurs in a rural environment. Data include short-term immersive events, observations and interviews as COVID-19 pandemic restrictions lifted in the region.
Findings
This study reveals that normative (religious) commitments – a sense of moral duty and action influenced by religion – and a high-religiosity context – where religion permeates diverse aspects of life – lead to behaviors that are perceived as rational and normative. In this context, the normative relationship between a market and a community logic, alongside a logic of religion, are all linked through a stewardship perspective. A broad focus on the development of community and place also safeguards business and community interests.
Research limitations/implications
Since the findings are based on one rural area and one religion, future studies should address a broader range of geographical areas and religions. In this study, uncertainty arising from COVID-19 pandemic restrictions and the resumption of business exchanges also influence the decision-making processes of the entrepreneurial participants. While the findings reflect the normative dispositions and the decision-making processes that are inherent in this context, an even broader examination of rural entrepreneurship will benefit our understanding of entrepreneurial decisions in terms of rationality and place.
Practical implications
The findings reveal that entrepreneurs who relocate to a rural, high-religiosity context should first assess how the community affiliated through a set of beliefs – expects actors to behave. Additionally, applicability to other religions requires further consideration.
Originality/value
This study answers the call to examine entrepreneurship and the underpinnings of rationality that challenge mainstream debates on entrepreneurial decision-making and religion. The findings answer this call by advancing the knowledge of the decision-making process of religious entrepreneurs. In this respect, the findings present a context where rational business behaviors, influenced by a market logic, are transformed through exchanges with a community informed by a logic of religion. A conceptual model illustrates the nature of this context and associated processes.
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Maria Bendtsen Kronkvist, Patrik Dahlqvist Jönsson, Karl-Anton Forsberg and Mikael Sandlund
The purpose of this study is to describe participation in decision-making among service users with severe mental illness.
Abstract
Purpose
The purpose of this study is to describe participation in decision-making among service users with severe mental illness.
Design/methodology/approach
Service users want to participate in decision-making and in the planning of their care. There are widely known methods, such as shared decision-making, that could be used to facilitate service user participation. Three focus group interviews were conducted with the participation of 14 persons with mental illness and/or substance abuse who were service users at two Swedish Homes for Care and Residence (HVB). Data were analyzed by qualitative content analysis.
Findings
Two themes emerged: service users’ involvement in decisions is hampered by the professionals’ approach and adequate information and experience of participation means greater empowerment.
Research limitations/implications
Although it is known that service users would like to have more influence, and that methods like shared decision-making are recommended to empower service users and improve the decision process, research on these matters is limited.
Practical implications
This study reveals that there is a need of more systematic decisional support, such as shared decision-making, so that service users can be seen as important persons not only in guidelines and policy documents but also in clinical practice.
Social implications
The findings indicate that service users do not participate in decisions systematically, although policies, guidelines and laws providing that service users should be offered an active part in decision-making with regard to their care and treatment.
Originality/value
Although it is known that service users would like to have more influence, and that methods like shared decision-making are recommended to empower service users and improve their decision process, research on these matters is limited. The findings indicate that service users do not participate in decisions systematically, even though policies, guidelines and laws are in place stipulating that service users should be offered an active part in decision-making with regard to their own care and treatment. The results of this project bring improvement opportunities to light.
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Martha Wilcoxson and Jana Craft
This paper aims to explore the common ethical decision-making challenges faced by financial advisers and how they meet these challenges. The purpose is to identify successful…
Abstract
Purpose
This paper aims to explore the common ethical decision-making challenges faced by financial advisers and how they meet these challenges. The purpose is to identify successful decision-making tools used by investment advisers in doing business ethically. Additionally, the authors uncover common challenges and offer decision-making tools to provide support for supplemental ethics training in the future.
Design/methodology/approach
Questions were analyzed through a qualitative approach using individual interviews to examine a range of experiences and attitudes of active financial advisers. The sample was represented by 11 practicing financial advisers affiliated with US independent broker-dealers: six women and five men, each with 10 or more years of experience, ranging in age from 35 to 75. Grounded in four ethical decision-making models, this research examines individual ethical decision-making using individual (internal, personal) and organizational (external, situational) factors.
Findings
The method used uncovered struggles and revealed strategies used in making ethical decisions. Two research questions were examined: what are the common ethical decision-making challenges faced by financial advisers in the US financial industry? How do financial advisers handle ethical decision-making challenges? Four themes emerged that impacted ethical decision-making: needs of the individual, needs of others, needs of the firm and needs of the marketplace. Financial advisers identified moral obligation, self-control and consulting with others as major considerations when they contemplate difficult decisions.
Research limitations/implications
A limitation of this review is its small sample size. A more robust sample size from investment advisers with a broader range of experiences could have widened the findings from the study.
Practical implications
Investment advisers can use the findings of this study as a tool for improving their own ethical decision-making or designing training for their employees to be better decision-makers.
Originality/value
The study explores the decision-making experiences of investment advisers to reveal multifaceted, often private struggles that qualitative methods can uncover. The study provides support for the development of additional training in ethical decision-making specific to investment advisers.
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Sumaia Farzana and Peerayuth Charoensukmongkol
This research study investigated the relationship between participative decision-making and innovative work behavior by considering the moderating role of power distance…
Abstract
Purpose
This research study investigated the relationship between participative decision-making and innovative work behavior by considering the moderating role of power distance orientation of individuals. Grounded in the approach-inhibition theory of power, the authors proposed that participative decision-making could mitigate perceived power gap and motivate individuals with high power distance orientation to engage more in innovative work behavior.
Design/methodology/approach
Survey data were collected from 243 faculty members from 2 universities located at Dhaka, Bangladesh. The partial least squares structural equation modeling (PLS-SEM) was used for data analysis.
Findings
The results from the model estimation showed that the positive relationship between participative decision-making and innovative work behavior was stronger among faculty members with high power distance orientation than those with low power distance orientation. The simple slope analysis also clarified the fact that faculty members with high power distance orientation could increase their innovative work behavior to be at the same level as that of faculty members with low power distance orientation when the members were involved highly in participative decision-making.
Practical implications
Participative decision-making is a management practice that should be implemented in order to motivate faculty members to actively engage in innovative work behavior. Particularly for faculty members who are sensitive towards the power status of other members in the workplace, this management practice is highly recommended to lessen the perceived social barrier that discourages these faculty members from engaging in innovative work behavior.
Originality/value
The authors' research advanced knowledge from prior studies by offering new theoretical insight into the role of empowerment practice that could motivate individuals with high power distance orientation to engage more in innovative practices.
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