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.
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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 systems and to…
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.
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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, ethical…
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.
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Kelly Mara Seronato and Tomás Sparano Martins
Although studies have analyzed individual factors and their impact on marketing strategies and organizational performance, little is known about the owner-manager’s decision-making…
Abstract
Purpose
Although studies have analyzed individual factors and their impact on marketing strategies and organizational performance, little is known about the owner-manager’s decision-making style. In the marketing literature of micro, small and medium enterprises (SMEs), little attention has been paid to the decision-maker. This study aims to gauge the impact of the manager's decision-making styles (rational, intuitive, dependent, avoidant and spontaneous) on marketing strategy creativity, on its implementation effectiveness and, consequently, on organizational performance.
Design/methodology/approach
This study uses a quantitative and descriptive approach. The data collection technique was through a survey with structured questionnaires in an online format. The data were collected from Brazilian micro, small and medium enterprises (SMEs) in the commerce and service sectors. The nonprobabilistic sampling included 206 valid responses. The data were analyzed using the technique of structural equation modeling (SEM) through the partial least squares method (PLS).
Findings
Among the main results, it was observed that rational, dependent and avoidant styles influence the creativity and implementation effectiveness of marketing strategies, and that these two factors positively impact organizational performance. In addition, it was found that part of the effect of rational, dependent and avoidant styles on performance occurs through the creativity and implementation effectiveness of the marketing strategy. However, the effect of the intuitive style and spontaneous style was not significant.
Practical implications
For owner-managers, the main implication is that they need to be rational, carefully analyzing the information and options available, ask for support when necessary for their team or partners and avoid procrastinating decisions. This can aid the development of more creative and effective implementations of their marketing strategies, which consequently, may contribute to better performance results.
Originality/value
The main contribution of this study was to add a new approach (decision-making styles) to the SME marketing literature. Moreover, this study integrates organizational (focused on marketing) and behavioral (focused on the manager's decision-making style) perspectives as factors that improve organizational performance.
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Gonaduwage Nilantha Roshan Perera, Feranita Feranita, Jesrina Ann Xavier and Thivashini B. Jaya Kumar
The purpose of this study is to explore the intersection of mindfulness practices and ethical decision-making within organisational leadership. Drawing from ancient Buddhist…
Abstract
Purpose
The purpose of this study is to explore the intersection of mindfulness practices and ethical decision-making within organisational leadership. Drawing from ancient Buddhist principles and contemporary neuroscience, this study aims to illuminate how mindfulness can enhance cognitive and emotional regulation, thereby fostering ethical behaviour and improved decision-making among leaders and employees. By examining the theoretical and practical implications of mindfulness in the context of organisational behaviour, this research seeks to contribute to the development of more compassionate, ethical and effective leadership practices, ultimately promoting a more mindful and sustainable business environment.
Design/methodology/approach
This concept paper explores the integration of mindfulness meditation practices with decision-making, particularly its influence on ethical choices, through a comparative study of modern techniques and the ancient teachings of the Tripitaka. Using a methodology that spans literature review in organisational behaviour and leadership, alongside in-depth analysis of the Tripitaka and contributions from scholars like Bhikkhu Bodhi, the paper examines the potential of mindfulness in enhancing ethical decision-making. It incorporates a range of sources, including peer-reviewed journals and seminal books across various disciplines, to underscore the transformative potential of mindfulness in addressing contemporary challenges and guiding leadership practices.
Findings
This discussion explores how mindfulness, rooted in ancient Buddhist philosophy and aligned with modern neuroscience, can significantly enhance managerial decision-making by fostering a balance between cognitive and emotional factors. It delves into the transformative potential of mindfulness in refining thought processes, promoting ethical decision-making and mitigating cognitive biases. By bridging traditional wisdom with contemporary scientific insights, the analysis underscores mindfulness as an active, dynamic process crucial for personal growth and effective leadership in complex environments.
Research limitations/implications
One limitation of this research is its reliance on theoretical frameworks and literature reviews, which may not capture the full range of practical challenges in implementing mindfulness practices within organisations. Additionally, the diversity in mindfulness methodologies and the subjective nature of mindfulness experiences may affect the generalisability of the findings. Future research should include empirical studies to validate the proposed benefits of mindfulness in organisational settings and explore the most effective strategies for integrating mindfulness practices into leadership and decision-making processes. This would help in understanding how mindfulness can be tailored to suit different organisational cultures and individual preferences.
Practical implications
The practical implications of applying mindfulness in organisational settings include enhanced decision-making abilities, improved leadership effectiveness and increased employee well-being. Mindfulness training can equip leaders and employees with the skills to manage stress, navigate complex ethical decisions and maintain focus amidst distractions, leading to more thoughtful and responsible business practices. Organisations might see a reduction in conflict, enhanced creativity and better teamwork, contributing to a more harmonious and productive workplace. Implementing mindfulness programmes could also support talent retention and attraction by promoting a workplace culture that values mental health and ethical behaviour.
Social implications
The social implications of integrating mindfulness into organisational decision-making and leadership, as suggested by the document, include promoting ethical behaviour, enhancing emotional regulation and improving team dynamics. Mindfulness practices can lead to more informed and conscious decision-making, reducing cognitive biases and fostering a culture of ethical awareness within organisations. This shift towards mindful leadership could potentially transform organisational cultures, encouraging greater compassion, ethical responsibility and collective well-being, thereby contributing positively to broader societal values and norms.
Originality/value
The originality and value of this research lie in its novel integration of mindfulness concepts derived from ancient Buddhist teachings with contemporary neuroscience and organisational behaviour studies. By exploring the deep-rooted philosophical underpinnings of mindfulness and their applicability to modern ethical decision-making and leadership practices, this work offers a unique perspective that bridges historical wisdom with current scientific understanding. It provides a comprehensive framework for understanding the transformative potential of mindfulness in organisational settings, highlighting its capacity to foster ethical leadership, enhance decision-making processes and contribute to a more mindful, compassionate and sustainable business environment.
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Suheil Neiroukh, Okechukwu Lawrence Emeagwali and Hasan Yousef Aljuhmani
This study investigates the profound impact of artificial intelligence (AI) capabilities on decision-making processes and organizational performance, addressing a crucial gap in…
Abstract
Purpose
This study investigates the profound impact of artificial intelligence (AI) capabilities on decision-making processes and organizational performance, addressing a crucial gap in the literature by exploring the mediating role of decision-making speed and quality.
Design/methodology/approach
Drawing upon resource-based theory and prior research, this study constructs a comprehensive model and hypotheses to illuminate the influence of AI capabilities within organizations on decision-making speed, decision quality, and, ultimately, organizational performance. A dataset comprising 230 responses from diverse organizations forms the basis of the analysis, with the study employing a partial least squares structural equation model (PLS-SEM) for robust data examination.
Findings
The results demonstrate the pivotal role of AI capabilities in shaping organizational decision-making processes and performance. AI capability significantly and positively affects decision-making speed, decision quality, and overall organizational performance. Notably, decision-making speed is a critical factor contributing significantly to enhanced organizational performance. The study further uncovered partial mediation effects, suggesting that decision-making processes partially mediate the relationship between AI capabilities and organizational performance through decision-making speed.
Originality/value
This study contributes to the existing body of literature by providing empirical evidence of the multifaceted impact of AI capabilities on organizational decision-making and performance. Elucidating the mediating role of decision-making processes advances our understanding of the complex mechanisms through which AI capabilities drive organizational success.
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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.
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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.
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.
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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…
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.
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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 of this…
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.