SOME OF THE UNDERLYING SELECTION CRITERIA FOR MIDDLE MANAGEMENT PERSONNEL IN FINANCIAL POSITIONS: A FACTOR ANALYTIC STUDY

A sample of middle managers were asked to make ratings regarding the importance of thirteen variables they considered when making decisions to select candidates into the ranks of middle management. These thirteen selection variables were developed based on previous research on managerial selection by Edwin Miller and on research conducted at General Electric by another investigator. The set of decision variables was then subjected to factor analysis in an effort to recover the fundamental structure of the decision space used to select middle managers. The analysis yielded encouraging results due to the distinctness with which certain factors were indicated. Three fundamental decision criteria were suggested: (1) a leadership-administrative skills factor, (2) a technical competence factor, and (3) a capability-willingness to work factor. These three factors were discussed in terms of their relevance to previous research on managerial selection.     

When do Public Managers Imitate Each Other? Mimetic Decision Making in Contracting Decisions of Danish Municipalities

Using organizational new institutional theory, this paper explores a core mechanism underlying contracting decisions in public organizations. A central proposition of this branch of institutional theory is that uncertainty leads to organizational isomorphism. The present study investigates this proposition by asking: When does perceived uncertainty lead public managers to imitative behavior in contracting out decisions? Contrary to most previous studies, we apply an individual level approach and relate different types of perceived uncertainty of decision makers to mimetic decision making. We define mimetic decision making as when decision makers deliberately obtain information about other organizations in order to possibly imitate them. In a survey of Danish municipal managers facing important and complex contracting decisions, we test our hypotheses about three types of perceived uncertainty and mimetic decision making. The results show that technological uncertainty is strongly related to mimetic decision making among public managers. However, we do not find significant results for either volume uncertainty or performance uncertainty. The paper illustrates how uncertainty, through mimetic decision making, is connected to organizational isomorphism. It further highlights that future studies should pay attention to the multidimensionality of uncertainty and its consequences.     

Decision Making,Risk and Gender: Are Managers Different?

This paper explores differences in the nature of decisions taken by males and females. Women are playing an increasingly important role in business management and managers are ultimately tested and evaluated in terms of their success in making decisions. Consequently any difference in the character and quality of decisions taken by male and female managers will have important implications for organizations. This paper reviews the literature, and reports two pieces of empirical work which investigate the connections between gender and decision making. The decision-making characteristics of males and females in a ‘non-managerial’ population in which the majority of individuals have not undergone formal management education are contrasted with a ‘managerial’ population of potential and actual managers who have undertaken such education. It is argued that women are often excluded from managerial positions of authority and leadership due to stereotypes, which have been constructed by observing ‘non-managerial’ populations at large. The paper concludes, however, that these stereotypes may not apply to managers as in the ‘managerial’ sub-population males and females display similar risk propensity and make decisions of equal quality.     

Strategy formulation for the smaller firm—A practical approach

There are many models and processes aimed at helping the managers of business enterprises in making strategic decisions. However, most of this work is oriented toward large organizations. In this paper, a model based on empirical data observations in 20 small Dutch firms is presented. This is a practical model giving the managers a guideline with checklists to follow in making strategic decisions. The significant characteristics of the model include the capabilities of the managers of small business firms. It attempts to fill the gap which exists between sophisticated theory and the decision-making tools that are used by the entrepreneur. The model was successfully used by approximately 50 firms and this paper demonstrates its applicability and discusses the problems encountered.     

The case of post-acquisition integration design decisions

In a multi-method study that examined post-acquisition integration design decisions, managers were found to have poor insight into the values underlying their decision making. This lack of insight was not found to be moderated by increased levels of experience with acquisition decision making, and its effects were reflected in post-acquisition performance.     

Regression models of behavior for managerial decision making

A principal problem in systems studies concerns the development of models that will be accepted and used by decision makers in organizations. Regression models derived from managers' past behavior offer promise in overcoming this problem for many repetitive types of decisions. Employing a simulated production planning environment, this paper discusses both the potential usefulness and limitations of such models for understanding and improving decision making in practical applications.     

RELATIVISM AS A CULTURAL INFLUENCE ON TWENTIETH CENTURY DECISION MAKING

Culturally determined norms are seen as guides to the subjective components in the decision process. An understanding of normative elements in choicemaking must therefore begin with an analysis of the culture relevant to the decision. Ways in which the Western twentieth-century intellectual and cultural climate have influenced the ability of modern managers to make value-laden decisions are examined. Implications of relativism for management decision making along with the influences of relativistic decision making on organizational health also are discussed.     

The Effects of Task Information and Outcome Feedback on Individuals' Insight into Their Decision Models

When making business decisions, people generally receive some form of guidance. Often, this guidance might be in the form of instructions about which inputs to the decision are most important. Alternatively, it might be outcome feedback concerning the appropriateness of their decisions. When people receive guidance in making difficult judgments, it is important that they do not confuse this guidance with insight into their own decision models. This study examined whether people confuse their actual decision model with task information and outcome feedback. Subjects predicted the likelihood that various hypothetical companies would experience financial distress and then reported the decision models they believed they had used. Their reported models were compared with their actual models as estimated by a regression of the subjects' predictions on the inputs to their decisions. In a 2times2 factorial design, some subjects were provided with task information regarding the relative importance of each input to their decisions while others were not. Some subjects were provided with outcome feedback regarding the quality of their decisions while others were not. The subjects tended to confuse the task information and outcome feedback with their actual decision models. Implications for the results are discussed.     

The robustness of linear models for decision-making

This paper elaborates on some issues discussed by Moskowitz, who presented evidence that linear multiple regression models, estimated from decisions made by individuals, often outperform the individuals themselves. In discussing his results, Moskowitz (1) suggested that inconsistency in information utilization by individuals may account for the relative superiority of regression models, and (2) expressed concern over the robustness of linear regression models to changes in (a) information environments, (b) weighting parameters, and (c) functional form of the model. This paper discusses reasons (in addition to inconsistency) for the relative superiority of model over man, and it summarizes recent research in psychology concerning the robustness of linear regression models (and linear models in general). This paper is supportive, rather than critical, of Moskowitz's research.     

Understanding technology adoption through system dynamics modeling: implications for agribusiness management

This work demonstrates the utility of sophisticated simulation tools in aiding agribusiness managers’ decision making. The system dynamics model developed here provides insight into the use of such models to evaluate potential adoption rates and diffusion patterns of yield mapping and monitoring technologies. The model allows for comparative analyses of the possible effects of different profit assumptions on adoption and diffusion.     

From knowledge to decision – a case study of sales and operations planning in health care

One of the most important challenges in health care management is balancing resources with fluctuating and uncertain demand. This study examines whether introducing a standardised process for sales and operations planning at a large university hospital improved specialty department managers’ knowledge of planning conditions and if so, whether decisions were made based on this knowledge. Using responses from a survey of 30 specialty department managers at Sahlgrenska University Hospital in Sweden, the analyses indicate that operational knowledge strengthens insights about the needs for strategic decisions, and vice versa. Moreover, knowledge is a necessary, but not sufficient, condition for making decisions at the department level. An overall planning and decision structure is required and should be implemented first at the hospital level to effectively allocate resources.     

Globalization and its impact on global managers' decision processes

Globalization of business can have a profound impact on the decision-making processes of managers responsible for making these complex interrelated decisions. This paper explores the global decision-making processes of global managers. The first element examined is the multiple intelligences that global managers need to be able to address the issues associated with global decisions. These eight IQs are considered critical elements in the decision-making capabilities of global managers. Following this discussion, the composition of global groups and their impact on the decision-making process is explored to determine how the composition of the group inhibits/supports the global manager. The next step in the decision-making process discussed in the paper is that of the nature of the task(s). The type of task can have a direct impact on the effectiveness as well as the efficiency of global manager's decision-making. The crux of the issue is that a global orientation to decision-making is poised as being significantly different from decision processes use by managers in a multinational context.     

Real-time schedule adjustment decisions: a case study

Service capacity management has been extensively studied and successfully applied in many industries, with an emphasis on tour/shift scheduling and assignment decisions. However, few studies have addressed real-time work schedule adjustment decisions made necessary by demand uncertainty and/or labor supply disruption. This case study deals with the real-time work schedule adjustment decision and investigates the association of managerial experience, workforce mix (full- and part-time staff), and information accuracy with managers’ adjustment decisions. We designed an experiment that involved practicing service managers from a McDonald's franchise who provided their adjustment decisions for a given set of test scenarios. Their decisions were analyzed and evaluated via a controlled experiment. Using profitability as the primary performance measure, the study identifies the following outcomes: First, senior managers of a store with a higher proportion of part-time staff made more adjustments and attained slightly higher profitability than junior managers, when all employees accepted adjusted schedules. Second, managers of a store with a higher proportion of part-time staff were able to make slightly higher profits, particularly when capacity shortages occurred. And third, to achieve the majority of the benefits from schedule adjustments, it is sufficient to search for information that correctly identifies the direction of demand changes, rather than identifying the exact magnitude of the changes.     

The queuing theory machine interference model: use and application

This paper aims at making the queuing theory machine interference model a usable tool for process designers, production managers, and others who face decisions regarding the number of machines and the size of crew to operate/maintain them. The model is presented conceptually and compared with other existing models. Next, the model is analysed, and parameter calculations are detailed: a ready-to-implement procedure is given to carry out these calculations. Finally, the use of the model and its application in the work-study context are illustrated by examples.     

Revenue Management vs. Newsvendor Decisions: Does Behavioral Response Mirror Normative Equivalence?

We study and compare decision‐making behavior under the newsvendor and the two‐class revenue management models, in an experimental setting. We observe that, under both problems, decision makers deviate significantly from normative benchmarks. Furthermore, revenue management decisions are consistently higher compared to the newsvendor order quantities. In the face of increasing demand variability, revenue managers increase allocations; this behavior is consistent with normative patterns when the ratio of the selling prices of the two customer segments is less than 1/2, but is its exact opposite when this ratio is greater than 1/2. Newsvendors' behavior with respect to changing demand variability, on the other hand, is consistent with normative trends. We also observe that losses due to leftovers weigh more in newsvendor decisions compared to the revenue management model; we argue that overage cost is more salient in the newsvendor problem because it is perceived as a direct loss, and propose this as the driver of the differences in behavior observed under the two problems.     

New Product Development Decision‐Making Effectiveness: Comparing Individuals,Face‐To‐Face Teams,and Virtual Teams*

A total of 411 subjects participated in two decision‐making experiments in order to examine the effectiveness of new product development project continuation decisions. Using escalation of commitment theory, in Study 1, individual versus face‐to‐face team decision‐making effectiveness was compared. Study 2, an extension of Study 1, compared the new product development decision‐making effectiveness of individuals, face‐to‐face teams, and virtual teams. A virtual team is a geographically and temporally dispersed and electronically communicating work group. In Study 2, the virtual teams communicated asynchronously via groupware technology. Our findings suggest that teams make more effective decisions than individuals, and virtual teams make the most effective decisions.     

Information systems and managerial decision making

The role of an information system is to support managerial decision processes. Some of these processes can be completely specified in advance and, as long as the specification remains acceptable to management, resolution can be done automatically, within the framework of the information system. However, in other cases, managers are involved in all stages of the decision process, which cannot be completely specified in advance. The task of the information system in these cases is to provide information to the managers engaged in making the decisions. This paper considers these problems from the point of view of the information system designer and makes recommendations about design and implementation.     

An integrated supplier-buyer model for improving supply chain coordination

This study develops a decision support model that can be used by a supplier in making production and price decisions at contract renewal times in a supply chain environment. The supplier first makes aggregate production decisions with a special attempt to estimate buyer commitments, and then determines the price of the item so as to satisfy his own profit and buyer cost reduction expectations simultaneously. Mathematical programming models are designed to achieve these in accordance with the contract terms. The main emphasis is placed upon the conceptual and negotiation aspects of the models, and some solution procedures are cited from previous studies. Then the approach is implemented in the biggest electric motor manufacturer in Turkey which has a large number of buyers in household appliances sector, and it is shown to be a useful tool for developing fair partnership.