Prelims
Specifics of Decision Making in Modern Business Systems
ISBN: 978-1-78756-692-7, eISBN: 978-1-78756-691-0
Publication date: 1 August 2019
Citation
(2019), "Prelims", Popkova, E.G., Chesnokova, A.V. and Morozova, I.A. (Ed.) Specifics of Decision Making in Modern Business Systems, Emerald Publishing Limited, Leeds, pp. i-xxv. https://doi.org/10.1108/978-1-78756-691-020191026
Publisher
:Emerald Publishing Limited
Copyright © 2019 by Emerald Publishing Limited
Half Title Page
SPECIFICS OF DECISION MAKING IN MODERN BUSINESS SYSTEMS
Title Page
SPECIFICS OF DECISION MAKING IN MODERN BUSINESS SYSTEMS: REGULARITIES AND TENDENCIES
EDITED BY
ELENA G. POPKOVA
Institute of Scientific Communications, Russian Federation
ALINA V. CHESNOKOVA
Russian State University of Tourism and Service, Russian Federation
IRINA A. MOROZOVA
Volgograd State Technical University, Russian Federation
United Kingdom – North America – Japan – India – Malaysia – China
Copyright Page
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First edition 2019
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ISBN: 978-1-78756-692-7 (Print)
ISBN: 978-1-78756-691-0 (Online)
ISBN: 978-1-78756-693-4 (Epub)
List of Figures and Tables
Figures
| Figure 1.1 | Conceptual Model of Modern Business System | 7 |
| Figure 2.1 | The Main Stages of Evolution of Modern Business Systems | 15 |
| Figure 4.1 | The System of Basic Principles of Functioning and Development of Modern Business System | 35 |
| Figure 5.1 | The Algorithm of Making of Managerial Decisions in Modern Business Systems | 41 |
| Figure 6.1 | Limitations during Making of Managerial Decisions | 51 |
| Figure 6.2 | Algorithm of Making of Managerial Decisions | 53 |
| Figure 7.1 | Basic Management Functions | 58 |
| Figure 7.2 | Relations between Management Theory and Decision Making | 59 |
| Figure | 7.3 Models of Decision Making in Different Schools of Management | 60 |
| Figure 7.4 | Features of Managerial Decision Making in Russian Organizations | 64 |
| Figure 8.1 | Scientific Approaches to the Process of Solving Management Problems | 73 |
| Figure 8.2 | System Approach in Management | 74 |
| Figure 8.3 | The Nature and Characteristics of the Functional Approach | 76 |
| Figure 8.4 | Nature and Characteristics of the Integrated Approach | 76 |
| Figure 8.5 | The Multidimensional Nature of the Integrated Approach | 77 |
| Figure 8.6 | The Essence and Characteristics of the Innovative Approach | 77 |
| Figure 8.7 | Essence and Characteristics of the Integration Approach | 78 |
| Figure 8.8 | The Essence and Characteristics of the Regulatory Approach | 79 |
| Figure 8.9 | Essence and Characteristics of the Virtual Approach | 80 |
| Figure 8.10 | The Essence and Characteristics of the Standardization Approach | 81 |
| Figure 8.11 | The Essence and Characteristics of the Behavioral Approach | 81 |
| Figure 9.1 | Transfer of Information in Organizational Structure Consists of Two Levels. The Second Level Contains One Element | 89 |
| Figure 9.2 | Transfer of Information in Organizational Structure Consisting of Three Levels. The Second Level Has Two Elements, and the Third Level Has One Element | 90 |
| Figure 9.3 | Transfer of Information in Organizational Structure Consisting of Three Levels. The Second Level Contains Three Elements, and the Third Level Contains Two Elements | 91 |
| Figure 9.4 | Organizational Structure, Which Is Shown in Fig. 9.3, in the Integrated Form | 91 |
| Figure 9.5 | Transfer of Information in the Organizational Structure Consisting of Four Levels. The Second Level Contains Two Elements, the Third Level Contains Two Elements, and the Fourth Level Contains One Element | 92 |
| Figure 9.6 | Transfer of Information in Organizational Structure Consisting of Four Levels. The Second Level Contains Three Elements, the Third Level Contains Four Elements, and the Fourth Level Contains Two Elements | 93 |
| Figure 9.7 | Organizational Structure (Fig. 9.6) in the Integrated Form | 94 |
| Figure 9.8 | General Scheme of Organizational Structure in the Integrated Form | 95 |
| Figure 11.1 | Classification of Types of Organizational Culture of Modern Business Systems According to the Criterion of Involvement of Employees in Decision Making | 125 |
| Figure 12.1 | Classification of Leadership in Modern Business Systems as to Criterion of Decision Making | 136 |
| Figure 13.1 | Possible Variants of Decision Making in a Modern Business System by the Principles of Outsourcing and Their Consequences | 146 |
| Figure 14.1 | Share of Decisions According to Their Types (According to Table 14.2), Which Are Delegated and Could Be Delegated and Total, in % of the Total Number of Decisions | 153 |
| Figure 14.2 | Barriers in Delegating Authorities and Paths of Overcoming Them | 156 |
| Figure 16.1 | Asian Model of Decision Making in Modern Business Systems | 173 |
| Figure 17.1 | American Model of Decision Making in Modern Business Systems | 181 |
| Figure 18.1 | European Model of Decision Making in Modern Business Systems | 189 |
| Figure 19.1 | The System of Trapezoid Functions of Belonging on 01-Bearer | 204 |
| Figure 19.2 | Dynamics and Forecast of Change of Turnover of Material Production and Consumer Market in the Structure of Economy of Ivanovo Oblast, % | 207 |
| Figure 20.1 | System of Foresight Control Over Modernization and Development of Infrastructure of Regions and the Country | 226 |
| Figure 21.1 | Classification of Infrastructure According to the Functional and Target Principles of Economic Subjects in the Sphere | 232 |
| Figure 21.2 | Classification of Infrastructure on the Basis of the Factor Approach of O. V. Inshakov and E. G. Rusakova | 233 |
| Figure 21.3 | Classification of Infrastructure by A. N. Kochetov and D. A. Kharitonov on the Basis of Functional Purpose | 235 |
| Figure 22.1 | Innovational Development of Cluster of the Hospitality Industry, Aimed at Receiving Consumers' Expectations from Territorial Concentration of Offers in the System of Region's Economic Security | 259 |
| Figure 22.2 | Conditions of Formation of Cluster of Innovational Development of the Hospitality Industry | 261 |
| Figure 22.3 | Value Innovation | 270 |
| Figure 22.4 | Life Cycle of Demand and Offer in the Blue Ocean | 271 |
| Figure 22.5 | The Process of Creation of the Blue Ocean of Foresight Development for Forecasting and Leveling the Risks of Strategic Drift of Economic Systems | 271 |
Tables
| Table 2.1 | Comparative Characteristics of the Main Stages of Evolution of Modern Business Systems | 16 |
| Table 3.1 | Approaches to Classification of Modern Business Systems | 23 |
| Table 4.1 | The Basic Principles of Functioning and Development of Modern Business Systems, Their Essence, and Decisive Factors | 33 |
| Table 9.1 | Structure of Incoming New Information to a Person Making a Decision (PMD) | 86 |
| Table 9.2 | Results of Evaluation of Information Quality for Two-level Structure with One Element at the Second Level | 96 |
| Table 9.3 | Results of Evaluation of Information Quality for Three-level Structure. The Second Level Contains Two Elements, and the Third Level Contains One Element | 97 |
| Table 9.4 | Results of Evaluation of Information Quality for Three-level Structure. The Second Level Contains Three Sources of Information, and the Third Level Contains Two Sources | 98 |
| Table 9.5 | Results of Evaluation of Information Quality for Four-level Structure. The Second Level Contains Two Sources of Information, the Third Level Contains Two Sources, and the Fourth Level Contains One Element | 99 |
| Table 9.6 | Results of Evaluation of Information Quality for Four-level Structure. The Second Level Contains Three Elements, the Third Level Contains Four Elements, and the Fourth Level Contains Two Elements (Initial Data) | 100 |
| Table 9.7 | Results of Evaluation of Information Quality for Four-level Structure. The Second Level Contains Three Elements, the Third Level Contains Four Elements, and the Fourth Level Contains Two Elements (Results) | 101 |
| Table 9.8 | Influence of the Quality of Pure Information Obtained at the Second Hierarchical Level of Organizational Structure (Derivative
|
102 |
| Table 9.9 | Influence of Quality of Pure Information That Is Obtained at the Second Hierarchical Level of Organizational Structure (Derivative
|
103 |
| Table 9.10 | Influence of Quality of Pure Information That Is Obtained at the Third Hierarchical Level of Organizational Structure (Derivative
|
104 |
| Table 9.11 | Influence of Quality of Pure Information That Is Obtained at the Third Hierarchical Level of Organizational Structure (Derivative
|
105 |
| Table 9.12 | Influence of Quality of Pure Information That Is Obtained at the Fourth Hierarchical Level of Organizational Structure (Derivative
|
106 |
| Table 9.13 | Comparison of Influence of Quality of Information That Is Obtained at Various Hierarchical Levels on the Quality of Decision Making | 106 |
| Table 9.14 | Analysis of Obtained Quantitative Evaluations of Influence of Information Quality on Quality of Made Decisions | 107 |
| Table 9.15 | Example of Structure of Information That Is Used by Person Making a Decision (PMD) for Decision Making | 110 |
| Table 9.16 | Examples of Wrong Decisions | 110 |
| Table 9.17 | Specific Examples of the Content of Information That Causes Wrong Decisions for Person Making a Decision (PMD) | 111 |
| Table 9.18 | Specific Examples of Information for Person Making a Decision (PMD) That Stimulates Making of Right Decisions | 112 |
| Table 10.1 | Dependence of the Process of Decision Making in Modern Business Systems on Their Organizational Structure | 118 |
| Table 11.1 | Connection between Organizational Culture and Specifics of the Process of Decision Making in Modern Business Systems | 127 |
| Table 12.1 | The Role of Leadership During Decision Making in Modern Business Systems | 136 |
| Table 13.1 | Perspective Directions, Advantages, and Drawbacks of Application of Outsource for Decision Making in Modern Business Systems at Various Stages of This Process | 144 |
| Table 14.1 | Situations of Delegating Authorities for Decision Making in Modern Business Systems and Their Ratio to Concepts | 151 |
| Table 14.2 | Types of Decisions in Business Systems and Inclination to Their Delegation | 152 |
| Table 15.1 | Regularities and Tendencies of Decision Making in Business Systems in Modern Russia Under the Influence of Factors of Their Development | 163 |
| Table 16.1 | Characteristics and Evaluation of the Level of Correspondence of the Largest Business Systems in Countries of Asia to the Asian Model of Decision Making by the Example of Mitsubishi UFJ Financial, Samsung Electronics, PetroChina, and ICBC | 175 |
| Table 17.1 | Characteristics and Evaluation of the Level of Correspondence of the Largest Business Systems in Countries of North America to the American Model of Decision Making by the Example of JPMorgan Chase, General Electric, Exxon Mobil, and Royal Bank of Canada | 183 |
| Table 18.1 | Characteristics and Evaluation of the Level of Correspondence of the Largest Business Systems in Countries of Europe to the European Model of Decision Making by the Example of HSBC Holdings, Royal Dutch Shell, Volkswagen Group, and BNP Paribas | 191 |
| Table 19.1 | Results of Studying the Connection between Model Variables (Correlation Matrix) | 201 |
| Table 19.2 | Structure of Consumer Market in Gross Regional Product (GRP) of Ivanovo Oblast | 206 |
| Table 21.1 | Structural Elements of the Organizational Model of Controlling of Development of Country's Infrastructure on the Platform of Individual Physical and Practical Forces | 247 |
| Table 22.1 | Diversity of Notions “Hospitality” and “the Hospitality Industry.” | 256 |
| Table 22.2 | Treatments of Definition “Cluster.” | 257 |
| Table 22.3 | Classification of Factor Provision of Possibilities for Formation of Innovational Cluster of Regions in the Hospitality Industry | 263 |
List of Contributors
| Alexander N. Alekseev | Plekhanov Russian University of Economics, Russia |
| Yevgeniy An | Al-Farabi Kazakh National University, Kazakhstan |
| Andrei V. Berezhnoi | Federal State Budgetary Educational Institution of Higher Education “Kuban State Agrarian University named after I.T. Trubilin”, Russia |
| Anna V. Bodiako | Federal State-Funded Educational Institution of Higher Education “Financial University under the Government of the Russian Federation” Russia |
| Aleksei V. Bogoviz | National Research University Higher School of Economics, Russia |
| Olga A. Boris | Federal State Autonomous Educational Institution “North Caucasus Federal University”, Russia |
| Valeriya P. Chayka | Russian State Agrarian University, Russia |
| Alina V. Chesnokova | Russian State University of Tourism and Service, Russia |
| Ivan A. Chusov | Russian University of Cooperation, Volgograd Cooperative Institute (branch), Russia |
| Olga V. Danilova | State-Funded Educational Institution of Higher Education, Russia |
| Liudmila V. Dontsova | Federal State-Funded Educational Institution of Higher Education “Plekhanov Russian University of Economics”, Russia |
| Yulia I. Dubova | Volgograd State Technical University, Russia |
| Vera V. Dvoretskaya | Federal State-Funded Educational Institution of Higher Education “Financial University under the Government of the Russian Federation”, Russia |
| Olga V. Fetisova | Volgograd State University, Russia |
| Irina V. Gimelshtein | Irkutsk National Research Technical University, Russia |
| Olga S. Glinskaya | Volgograd Cooperative Institute (branch) of Russian University of Cooperation, Russia |
| Elena A. Gureeva | Plekhanov Russian University of Economics, Russia |
| O.Y. Guryeva | G.V. Plekhanov Russian University of Economics (Ivanovo branch), Russia |
| Aidarbek T. Gyiazov | Batken State University, Kyrgyzstan |
| Arutyun A. Khachaturyan | Federal State Budgetary Institution Scientific “Institute of Market Problems of the Russian Academy of Sciences”, Russia |
| Gelani I. Khanaliev | Federal State Budget Educational Institution “Grozny State Oil Technical University named after Academician M.D. Millionshchikov”, Russia |
| T.S. Kochetkova | G.V. Plekhanov Russian University of Economics (Ivanovo branch), Russia |
| Leonid V. Kolyadov | National University of Oil and Gas “Gubkin University”, Department of Financial Management, Russia |
| Olga I. Kontorovich | Financial university under the Government of the Russian Federation, Russia |
| Elena I. Kostyukova | Federal State Budgetary Educational Institution of Higher Education “Stavropol State Agrarian University”, Russia |
| Olga G. Kryukova | State-Funded Educational Institution of Higher Education “Financial University under the Government of the Russian Federation”, Russia |
| Elena N. Lapina | Federal State Budgetary Institution “Stavropol State Agrarian University”, Russia |
| Tatiana N. Litvinova | Volgograd State Agrarian University, Russia |
| Svetlana V. Lobova | Altai State University, Russia |
| O.K. Lukhovskaya | G.V. Plekhanov Russian University of Economics (Ivanovo branch), Russia |
| Innara R. Lyapina | Orel State University, Russia |
| Liudmila S. Maksimenko | North Caucasus Federal University, Russia |
| Leonid F. Malinovski | State Educational Institution of Higher Professional Education Moscow Region “Moscow Regional State University”, Russia |
| I.V. Malova | G.V. Plekhanov Russian University of Economics (Ivanovo branch), Russia |
| Margarita V. Melnik | Federal State-Funded Educational Institution of Higher Education “Financial University under the Government of the Russian Federation”, Russia |
| Igor S. Mezhov | Polzunov Altai State Technical University, Russia |
| Ruslan G. Mikhaylenko | Rostov State University of Economics, Russia |
| Olga A. Mironova | Federal State-Funded Educational Institution of the Higher Education “Volga Region State Technological University”, Russia |
| Evgeniy G. Molchanov | Rostov State University of Economics, Russia |
| Irina A. Morozova | Volgograd State Technical University, Russia |
| Angelika K. Musaelyan | Rostov State University of Economics, Russia |
| Olga P. Osadchaya | Rubtsovsk industrial Institute (branch) Federal state budgetary educational institution of higher professional education “Altai State Technical University named after I. I. Polzunov”, Russia |
| Al-Muttar Mohammed Yousif Oudah | Al-Ayen University, Iraq |
| Valentina N. Parakhina | Federal State Autonomous Educational Institution “North Caucasus Federal University”, Russia |
| V.I. Perov | G.V. Plekhanov Russian University of Economics (Ivanovo branch), Russia |
| Elena V. Petrukhina | Orel State University, Russia |
| Liubov V. Plakhova | Orel State University of Economics and Trade, Russia |
| Svetlana V. Ponomareva | St. Petersburg State University of Economics (UNECON), Russia |
| Elena G. Popkova | Institute of Scientific Communications, Russia |
| Julia V. Ragulina | Peoples’ Friendship University of Russia (RUDN University), Russia |
| Tatiana M. Rogulenko | Federal State Budgetary Educational Institution for Higher Professional Education “State University of Management”, Russia |
| Viktor N. Salin | Federal State-Funded Educational Institution of Higher Education “Financial University under the Government of the Russian Federation”, Russia |
| Marina N. Semenova | Volgograd State Agricultural University, Russia |
| Maxim M. Sharamko | Federal State-Funded Educational Institution of Higher Education “Kazan Federal University”, Russia |
| Galina S. Shelkoplyasova | Federal State Autonomous Educational Institution “North Caucasus Federal University”, Russia |
| Anna V. Shokhnekh | Volgograd State Socio-Pedagogical University, Russia |
| Mohammed-Ikbal Shokhnekh | Scientific and Research Economic Models of Governance, Accounting and Taxation LLC, Russia |
| Elena V. Sibirskaya | Plekhanov Russian University of Economics, Russia |
| Nikolai G. Sinyavsky | Financial University under the Government of the Russian Federation, Russia |
| Mikhail V. Sirotenko | Federal State Budgetary Institution of the Higher Education “Altai State University”, Russia |
| Lidiya A. Sizeneva | Volgograd State Agricultural University, Russia |
| Tatiana V. Skryl | Plekhanov Russian University of Economics, Russia |
| Elena N. Smertina | Rostov State University of Economics, Russia |
| Anastasiya V. Sorokina | Russian University of Transport (RUT -– MIIT), Institute of Economics and Finance, Russia |
| Tamara G. Stroiteleva | Federal State Budgetary Institution of the Higher Education “Altai State University”, Russia |
| Olesya A. Stroeva | Russian Presidential Academy of National Economy and Public Administration, Russia |
| Olga V. Titova | Altai State University, Russia |
| Alexey V. Tolmachev | Kuban State Agrarian University, Russia |
| Olga G. Tretyakova | Federal State-Funded Educational Institution of Higher Education “Financial University under the Government of the Russian Federation”, Russia |
| Aleksandr V. Vetrov | Federal State Budgetary Educational Institution of Higher Education “State University of Management”, Russia |
| Irina F. Vetrova | Federal State-Funded Educational Institution of Higher Education “Financial University under the Government of the Russian Federation”, Russia |
| Tatiana N. Yudina | Sochi State University, Russia |
Foreword
This collective monograph contains the results of studying the regularities and tendencies that are peculiar for the modern Russian practice of decision making in business systems and authors' decisions for its optimization in view of new challenges and opportunities. The collective monograph is devoted to scientific study of the process of decision making in modern business systems. It described the algorithm of decision making, considers the existing practical models, and offers recommendations for optimization of this process. The obtained conclusions could be used in higher educational establishments in specialties “Micro-economics,” “Corporate economics,” “Economic theory,” “Organizational design,” “Theory of decision making,” and “Business management.”
Competitive advantages of this book, as compared to the existing analogs, include universal setting of the problem – decision making in modern business systems, and its solution with the help of conceptual substantiation of the necessity for modernizing the process of decision making in modern business system with provided practical recommendations. Due to this, the book will be interesting for representatives of academic community (scholars, researchers, and postgraduates) and all business subjects that use decision making in their activities.
- Prelims
- Introduction
- Part I: Theoretical Foundations of Studying Modern Business Systems
- Chapter 1 The Concept of Business System The Main Notions and Their Essence
- Chapter 2 The Main Stages of Evolution of Modern Business Systems
- Chapter 3 Approaches to Classification of Modern Business Systems
- Part II: The Concept of Decision Making in Modern Business Systems
- Chapter 4 The Basic Principles of Functioning and Development of Modern Business Systems
- Chapter 5 The Essence of the Process of Decision Making as a Choice of the Existing Alternatives
- Chapter 6 Algorithm of Making of Managerial Decisions in the Conditions of Constant Changes
- Chapter 7 The Place and Role of Decision Making in the Process of Modern Enterprise Management
- Part III: Methodological Provision of Studying the Process of Decision Making in Modern Business Systems
- Chapter 8 Theoretical and Methodological Approaches to Decision Making in Modern Business Systems
- Chapter 9 Dependence of Risk of Making Wrong Decisions in Modern Business Systems on Their Organizational Structure
- Chapter 10 Dependence of the Process of Decision Making in Modern Business Systems on Their Organizational Structure
- Chapter 11 Connection between Organizational Culture and Specifics of the Process of Decision Making in Modern Business Systems
- Part IV: Managerial Aspects of Decision Making in Modern Business Systems
- Chapter 12 The Role of Leadership in the Process of Decision Making in Modern Innovational Business Systems
- Chapter 13 Decision Making in Modern Business Systems by the Principles of Outsourcing
- Chapter 14 Delegating Authorities in the Process of Decision Making in Modern Business Systems The Traditional and New Concepts
- Chapter 15 Regularities and Tendencies of Decision Making in Business Systems by the Example of Modern Russia
- Part V: Regional Models of Decision Making in Modern Business Systems
- Chapter 16 Asian Model of Decision Making in Modern Business Systems
- Chapter 17 American Model of Decision Making in Modern Business Systems
- Chapter 18 European Model of Decision Making in Modern Business Systems
- Part VI: Meso-Level Results of Decision Making in Modern Business Systems
- Chapter 19 Conceptual Approaches to Determining, Diagnostics, and Forecasting the Region's Consumer Market
- Chapter 20 Regional Mechanisms of Modernization of Infrastructure of Regions and the Country in the System of Innovational Development
- Chapter 21 Organizational Model of Restoration and Development of Country's Infrastructure on the Platform of Individual Physical and Practical Forces
- Chapter 22 Innovational Development of Cluster of the Hospitality Industry in the System of Region's Economic Security A Strategy of Activation of Small Business
- Conclusions
- Index