Participation in Strategic Decision Making: The Role of Organizational Predisposition and Issue Interpretation*

Each time managers are faced with a strategic decision they decide how to decide. Specifically, they make choices about who has necessary information and, therefore, who needs to participate in the decision. Such responses to strategic issues are believed to be affected by the way in which decision makers interpret issues. However, organizations develop habitual responses to issues and may be predisposed because of their attention to rules and routines, or because of past performance, to respond to strategic issues in certain ways regardless of how issues are interpreted. We examined the direct and indirect effects of predisposition (rule orientation and past financial performance) and interpretation of strategic issues on the participation of internal stakeholder groups in strategic decision making. Executives in 52 organizations indicated that rule orientation and performance are directly linked to participation in strategic decision making, and that interpretation and rule orientation are directly linked to each other. Implications for managers include the notion that any effort to improve decision-making effectiveness by shaping how organizational members frame and interpret issues will be constrained by the organization's existing routines as well as its past performance.     

Decisions,judgement and style

This paper, one of a series which have already appeared in previous issues, focuses on the role of people, their judgments and their styles in the process of making and taking decisions concerning the future; that future and the decisions which will shape it being part of the complex strategic planning process. The author does not deal with decision analysis but concentrates his analysis upon the delicate balance which is maintained between what Sir Geoffrey Vickers calls ‘the art of judgement’ and the quantifiable elements of decision. The author rightly makes a distinction between decision-making: and decision-taking: this distinction accurately mirrors the long and often complex consultation process which occurs in almost all organizations before a decision is actually taken. The author's analysis concentrates upon the important effect which ‘judgement styles’ can have upon an organization and its planning process. Indeed, this paper suggests quite positively that judgment styles have an important and indeed crucial effect upon the view of the future which an organization will regard as preferable as well as influencing the manner in which the planning process will operate.     

Understanding the Participation of Critical Task Specialists in Strategic Decision Making*

This paper explores the role of critical task specialists in strategic decision making and presents a theoretical model relating critical task specialist participation in decision making to the organization's overall strategy and the nature of the decision. This exploratory study examines scope and intensity of physician participation in hospital decision making. Intensity of critical task specialist participation is explained by content of the decision and by the organization's strategy, while scope of participation is explained by decision content. The findings suggest the need for more complex models of participation than are normally used in decision-making research. The findings also suggest that executives, in managing strategic decision-making processes, should pay attention to questions of both scope and intensity of participation. The results suggest that critical task specialists play a different role in the decision process, depending on specific decision content and organization strategy.     

Top Management Team Members’ Decision Influence and Cooperative Behaviour: An Empirical Study in the Information Technology Industry

Organizational leadership is generally distributed between the chief executive officer (CEO) and the top management team (TMT) members. Building on this observation, we present an empirical investigation of the cues for CEOs to delegate decision‐making influence to particular TMT members. In the literature, explanations both based on expertise and driven by similarity are described. In this study, we reconcile both explanations by examining the moderating role of the TMT's level of ‘cooperative behaviour’ (collaboration and information exchange). We analyse when and in what circumstances TMT members’ expertise and similarity to the CEO regarding his/her functional background and/or locus‐of‐control predict their decision‐making influence. We postulate that TMT cooperative behaviour will advance the effect of expertise on TMT members’ decision influence but impede the effect of similarity to the CEO. Our hypotheses are tested on a data set of 135 TMT members from 32 Dutch and Belgian information technology firms. Overall, we find that our proposed research model is confirmed for technology‐oriented decisions. Furthermore, we draw exploratory conclusions about the effect of TMT cooperative behaviour on the systematic distribution of decision influence in TMTs.     

Role stress among physician executives

On the one hand, physician executives are clinicians who place value on professional autonomy. As clinicians, the best interests of the patient drive their decision making and their value system. On the other hand, as managers, physician executives serve as agents of an organization. Because of the differences in the two cultures, some physicians have called the physician executive position a "no man's land" To address these issues and answer the questions that surround them, the authors developed a survey that was mailed to a random sample of the membership of the American College of Physician Executives. Parts of the survey served in other studies of role conflict and role ambiguity. Parts of the survey are new, developed specifically to analyze the physician executive role. The findings are reported in this article.     

Contrasting different philosophies of leader motivation: Altruism versus egoism

In this series of letters, Avolio and Locke compare and contrast their different views on leadership motivation, considering how selfish and self-sacrificing altruistic behavior influence leaders and follower motivation and performance. Locke bases his main arguments in both letters on the premise that leaders should act and think in a rational way, with selfish interest as the basis for action. By accomplishing their selfish interests, leaders will exhibit their highest principles and performance. Avolio argues that Locke's view on selfish interest is simply too idealistic. Since leadership is seen as being in the eye of the beholder, there is a point where all of the rational decision making in the world does not change the subjective views followers have of their leaders. Moreover, there are numerous situations where everyone's self- or selfish interests cannot be satisfied and it is in those situations that the assumptions of egoistic leadership appear to breakdown. Their debate leads to some interesting suggestions for future research comparing these two divergent views of leader motivation.     

Designing a Decision-Making Process for a Network Administrative Organization: A Case Study of the National Quality Forum’s Consensus Development Process

In 1999 the health care industry created the National Quality Forum—a network administrative organization—to address issues of health care quality in a new way by bringing together organizations from the public and private sectors and providing them with a forum to discuss and debate measures of quality, and ultimately, to effect change. Little, however, is known about the decision making processes of network administrative organizations despite the fact that their decisions may have far-reaching impacts on public policy. Using a grounded theory approach, this paper examines the creation and development of the NQF’s Consensus Development Process and identifies and discusses five key principles that underlie the process. This paper argues that in order to create a decision-making process for a network administrative organization that is balanced and inclusive of diverse interests a leader must consider and incorporate principles that are representative of the larger environment.     

The Role of Leader Influence Tactics and Safety Climate in Engaging Employees'' Safety Participation

This study examines the effect of leader influence tactics on employee safety participation in a U.K.-based manufacturing organization, examining the role of safety climate as a mediator. Structural equation modeling showed that leader influence tactics associated with a transformational leadership style had significant relationships with safety participation that were partially mediated by the safety climate (consultation) or fully mediated by the safety climate (inspirational appeals). In addition, leader influence tactics associated with a transactional leadership style had significant relationships with safety participation: rational persuasion (partially mediated by safety climate) and coalition tactics (direct effect). Thus, leaders may encourage safety participation using a combination of influence tactics, based on rational arguments, involvement in decision making, and generating enthusiasm for safety. The influence of building trust in managers is discussed as an underlying mechanism in this relationship. Practical implications are highlighted, including the design of leadership development programs, which may be particularly suited to high-reliability organizations.     

Technology assessment: Need and motivation of industry

The problems of decision making when the decision concerns large-scale technical plants have increased, largely due to the difficulties of assessing environmental factors. Technology assessment is an approach which can assist in undertaking the necessary analysis which will expose the social impact, participation of affected groups, and the evaluation of political processes for large-scale technical developments. This paper examines the obstacles to the use of Technology assessment techniques by industry and in particular concentrates upon the problems of forecasting future technological change. The paper examines the view that TA is primarily a concept of political decision making and places the concepts of politics in the broadest sense, not merely in a narrow partly political framework. Finally, the paper examines the arguments for and against quantitative evaluation and claims that TA, used properly, can provide valuable qualitative as well as quantitative insights into the impact of processes upon the political, social and economic environment. Thus, suggesting that TA is a technique of forecasting which companies that are involved in the development of major, and therefore heavy resource-consuming, projects should consider the use of this technique as part of their appraisal process.     

Examining the Antecedents and Consequences of CIO Strategic Decision‐Making Authority: An Empirical Study*

Despite the strategic importance of information technology (IT) to contemporary firms, chief information officers (CIO) often still have varying degrees of strategic decision‐making authority. In this study, we apply the theory of managerial discretion to define CIO strategic decision‐making authority and argue that the CIO's level of strategic decision‐making authority directly influences IT's contribution to organization performance. We also draw on the power and politics perspective in the strategic decision‐making literature to identify the direct antecedents to the CIO's strategic decision‐making authority. A theoretical model is presented and empirically tested using survey data collected from a cross‐industry sample of 174 matched pairs of CIOs and top business executives through structural equation modeling. The results suggest that organizational climate, organizational support for IT, the CIO's structural power, the CIO's level of strategic effectiveness, and a strong partnership between the CIO and top management team directly influence the CIO's level of strategic decision‐making authority within the organization. The results also suggest that the CIO's strategic decision‐making authority in the organization directly influences the contribution of IT to firm performance and that effective CIOs have a greater influence on IT's contribution when provided with strategic decision‐making authority.     

Managerial Risk‐taking in International Acquisitions in the Brewery Industry: Institutional and Ownership Influences Compared

This paper deals with the role that institutional differences play in managerial risk‐taking when firms engage in international acquisitions. It is assumed that multinational corporations (MNCs) have different interests and capabilities when dealing with international acquisition, which in the authors’ view are significantly shaped by specific home country institutional influences. This study concerns the question of how different forms of ownership – concentrated (e.g. family and bank based) and dispersed (stock market based) – influence risk‐taking and managerial decision‐making in large international acquisitions. Comparing a total of 12 large acquisitions of four leading MNCs in the global brewery industry, the paper shows that mutually reinforcing influences of country of origin (coordinated vs liberal market economies) and ownership (family ownership vs stock market ownership) lead to different risk profiles and managerial risk‐taking with regard to international acquisitions.     

Issues to consider in internalization of a service

In a staff-model HMO, the demand for services may be greater in one area than in another. Services with little demand and/or high cost are usually contracted to an external provider or institution. Equipment purchases or renovation of a facility to accommodate a new service sometimes go hand in hand with internalizing a service, and capital budgeting is an integral part of the process. The decision on when it is feasible to internalize services has to be considered on two levels: service and finance. This article will look at what issues affect the organization on these two levels and will consider the cost-benefit and legal issues that need to be considered when making such a decision. A work sheet that may be used as is or modified is included.     

CAPITAL,LABOR, AND THE FIRM: A STUDY OF GERMAN CODETERMINATION

Under the German corporate governance system of codetermination, employees are legally allocated control rights over corporate assets through seats on the supervisory board—that is, the board of nonexecutive directors. The supervisory board oversees the management board—the board of executive directors—approves or rejects its decisions, and appoints its members and sets their salaries. We empirically investigate the implications of this sort of labor participation in corporate decision making. We find that companies with equal representation of employees and shareholders on the supervisory board trade at a 31% stock market discount as compared with companies where employee representatives fill only one‐third of the supervisory board seats. We show that under equal representation, management board compensation provides incentives that are not conducive to furthering shareholders' interests, possibly because labor maximizes a different objective function than shareholders. We document that, under equal representation, companies have longer payrolls than their one‐third representation peers have. Finally, we provide evidence that shareholders respond to the allocation of control rights to labor by linking supervisory board compensation to firm performance and by leveraging up the firm. (JEL: G32, G34)     

Ryan White CARE Act and Collaborative Governance Re-Examined: the South Florida Experience

This research sequel employs collaborative governance framework with the aim to ascertain whether HIV/AIDS collaborative governance still works in Broward and Palm Beach Counties of South Florida within the context of efforts to provide care and treatment to target populations. The study uses interviews, observations, and document reviews to garner data from all relevant sources of the Councils and focuses on 2000–2006 and 2009–2013 time frames. The collected data was subjected to integration of themes and concepts based on category analysis. The analysis reveals representation and participation of target populations, service providers, non-elected community leaders and other relevant stakeholders in decision making enable collective problem solving. The research contributes to theory and praxis by highlighting collaborative governance presents public managers the viable option of serving as advocates of various interests in society.     

Participation in Decentralized Local Governance: Two Contrasting Cases from the Philippines

Contrary to the popular assumptions among international donor agencies, preceding studies have questioned the causal relations between decentralization, participation and pro-poor policy outcomes. This article introduces two cases of decentralized city governments in the Philippines: one employs radical forms of civil participation, while the other introduces modest ones, but both of them have been successfully launching pro-poor policies. Through referring these contrasting cases to a “participatory governance” model and a “governance with trusts” model, the paper argues that the approach to local governance is not linear.

Labour Participation of Higher Education Students

The aim of this article is to shed light on the determinants of the decision to participate in the labour force while studying, and of the intensity of this participation as measured by the wages earned by students. We show that students react to their future expected economic benefits associated with their chosen course of study. In this sense, our results confirm Lévy‐Garboua’s (Revue française de Sociologie XVII: 53–80, 1976) thesis of working as an adjustment variable for the variations in the expected rate of return of discipline. Our results indicate that the decision to work while studying and its intensity depend on students’ socioeconomic status and material needs, as well as external financial resources. Altogether, our results suggest that the equity and internal efficiency implications of such a social bias in the labour force participation behaviour might not be too important, but that some public interventions might nevertheless improve the overall external efficiency by allowing students to spend more time on more valorizing activities rather than unskilled and low‐paid jobs.     

Invisible Whispering: Restructuring Collaborative Decision Making with Instant Messaging

Organizational decision making is dominated by teams. When an important decision is required, a team is often formed to make it or to advise the individual decision maker, because a team has more resources, knowledge, and political insight than any one individual working alone. As teams have become geographically distributed, collaboration technology has come to play an important role in such collective decision making efforts. Instant messaging (IM) is an increasingly prevalent workplace collaboration technology that enables near‐synchronous text exchanges on a variety of devices. We examined the use of IM during face‐to‐face, telephone, and computer‐mediated team meetings, a practice we call “invisible whispering.” We introduce Goffman's characterization of social interaction as dramatic performance, differentiable into “front stage” and “backstage” exchanges, to analyze how invisible whispering alters the socio‐spatial and temporal boundaries of team decision making. Using IM, workers were able to influence front stage decision making through backstage conversations, often participating in multiple backstage conversations simultaneously. This type of interaction would be either physically impossible or socially constrained without the use of IM. We examine how invisible whispering changes the processes of collaborative decision making and how these new processes may affect the efficiency and effectiveness of collaborative decision making, as well as participation, satisfaction, relationships among team members, and individual attention.     

Bringing planning systems to the manager

This article reports the results of a corporate planning survey involving 15 U.K. companies and an experimental pilot planning system developed as a research tool to investigate aspects of interactive planning. The preliminary findings indicate that such systems can be of considerable benefit to managers, planners, and the organization, and that the design of the system from the users point of view will determine whether or not it will be accepted as a decision making aid. Some of the essential features are then described.     

国内国际双循环的测度方法及我国双循环格局演变趋势分析

面对复杂的社会经济发展形势,我国提出加快形成以国内大循环为主体、国内国际双循环相互促进的新发展格局。基于世界投入产出模型,本文提出以中国经济对本国最终需求依存度和对国外最终需求依存度衡量中国参与国内循环、国际循环的相对程度;并从整体、分最终需求、分部门等角度定量分析了我国参与国内国际循环程度的变化趋势。结果发现,加入WTO后,我国经济参与国际循环的程度明显提升,2006年达到峰值,2007年后,我国经济国际循环参与程度开始下降。分不同最终需求看,我国经济在国际循环中的需求结构保持稳定,对国内投资的依存度持续上升,对国内消费的依存度先下降后缓慢上升。分部门看,不同产业参与国内循环、国际循环的程度及变化趋势具有异质性。