Utilizing management accounting information for decision-making

2018 ◽  
Vol 15 (2) ◽  
pp. 181-205 ◽  
Author(s):  
Natalia Saukkonen ◽  
Teemu Laine ◽  
Petri Suomala
Keyword(s):  
Decision Making ◽  
Management Accounting ◽  
Decision Making Process ◽  
Information Utilization ◽  
Content Type ◽  
Decision Making Processes ◽  
Decision Alternatives ◽  
Process Structure ◽  
Analytical Approaches

Purpose To be utilized effectively in decision-making processes, management accounting (MA) information should fit the business context and at the same time reflect the roles, responsibilities and values of the actors taking part in the decision-making. This study aims to investigate the limitations for MA information utilization in decision-making. In particular, this study explores limitations stemming from the decision-making process structure and the involvement of several managerial actors. Design/methodology/approach An exploratory case study of an energy company and its customer company illustrates the current challenges in providing and integrating MA information into decision-making. The analysis is focused on the analytical and actor-based features of the decision-making and thus the limitations for MA information utilization. As a part of the broader research process, the researchers facilitated a meeting in the customer company, where the actors relevant to investment decisions discussed the current limitations in utilizing MA information. Findings Analytical and actor-based features may take different forms in the decision-making. Some relevant MA information may not be included in an organization’s decision-making process structure that allows merely conventional, yet analytical, decision alternatives. At the same time, certain actors’ viewpoints (such as sustainability metrics) can be excluded from the process without considering the logic behind the exclusion. This case study identifies the following limitations, largely related to insufficient actor-based features in the decision-making: managers may lack expertise in the use of MA tools, managerial interaction may lack reflection on taken-for-granted assumptions, different managers may appreciate different scope, content and timing of MA information and the process structure can ignore the required managerial viewpoints. Research limitations/implications This study demonstrates that both the decision-making process structure and the needs of the several actors involved may lead to limitations for MA information utilization. Although many limitations stemmed from the insufficient actor-based orientation in the case study, introducing new MA analyses and extending the validity of analytical approaches may also help overcome some of the limitations. Further research should address possibilities to integrate different actors’ viewpoints with MA information already in the decision-making process structure, find ways to introduce MA information on unconventional decision alternatives and enable reflection among and about relevant actors with respect to decision-making. These means could lead to more effective utilization of MA information for decision-making and, consequently, economically viable decisions. Originality/value This study addresses the limitations in MA information utilization by combining the viewpoints of analytical decision-making processes and reflective actors, and thus unveils possibilities for enhancing MA practice.

Getting what you want from your transorganizational partners

2015 ◽  
Vol 53 (9) ◽  
pp. 2017-2035
Author(s):  
Michael Halinski ◽  
Linda Duxbury
Keyword(s):  
Decision Making ◽  
Group Decision Making ◽  
Group Decision ◽  
Decision Making Process ◽  
Content Type ◽  
Decision Alternatives ◽  
Advance Theory ◽  
Practical Implications ◽  
Over Time

Purpose – The purpose of this paper is to examine how the group decision-making process unfolds over time in a transorganizational system (TS) planning change. Design/methodology/approach – A longitudinal qualitative case study was designed to enable researchers to identify different stages in the group decision-making process. Findings – The findings from this case study indicated that the group decision-making process in a TS planning change could be conceptualized to include five distinct steps: working in solitude; starting a dialogue; finding a common goal; suggesting decision alternatives; and deciding among alternatives. The group proceeded through these steps sequentially over time. Practical implications – The paper offers TS practitioners a framework to follow when making group decisions within TSs. Originality/value – The study develops a conceptual framework that describes how the group decision-making process unfolds over time in a TS planning change. This framework can be tested in other contexts and advance theory in both the TS and group decision-making areas.

Integration between knowledge management and business process management and its impact on the decision making process in the construction sector: a case study of Jordan

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sami Wasef Abuezhayeh ◽  
Les Ruddock ◽  
Issa Shehabat
Keyword(s):  
Decision Making ◽  
Knowledge Management ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
Decision Makers ◽  
Decision Making Process ◽  
Construction Sector ◽  
Content Type

Purpose The purpose of this paper is to investigate and explain how organizations in the construction sector can enhance their decision-making process (DMP) by practising knowledge management (KM) and business process management (BPM) activities. A conceptual framework is developed that recognises the elements that impact DMP in terms of KM and BPM. The development of this framework goes beyond current empirical work on KM in addition to BPM as it investigates a wider variety of variables that impact DMP. Design/methodology/approach A case study is undertaken in the context of the construction industry in Jordan. A theoretical framework is developed and assessment of the proposed framework was undertaken through a questionnaire survey of decision-makers in the construction sector and expert interviews. Findings The outcomes of this research provide several contributions to aid decision-makers in construction organizations. Growth in the usage of KM and BPM, in addition to the integration between them, can provide employees with task-related knowledge in the organization’s operative business processes, improve process performance, promote core competence and maximise and optimise business performance. Originality/value Through the production of a framework, this study provides a tool to enable improved decision-making. The framework generates a strong operational as well as theoretical approach to the organizational utilization of knowledge and business processes.

Decision making, distributed leadership and the objective knowledge growth framework

2019 ◽  
Vol 34 (2) ◽  
pp. 217-231
Author(s):  
Stephanie Chitpin
Keyword(s):  
Decision Making ◽  
Distributed Leadership ◽  
School Leaders ◽  
Decision Makers ◽  
Decision Making Process ◽  
Objective Knowledge ◽  
Content Type ◽  
Education Leaders ◽  
Knowledge Growth ◽  
Analytical Approaches

Purpose The purpose of this paper is to know the extent to which a decision-making framework assists in providing holistic, comprehensive descriptions of strategies used by school leaders engaging with distributed leadership practices. The process by which principals and other education leaders interact various school-based actors to arrive at a distributed decision-making process is addressed through this paper. The position taken suggests that leadership does not reside solely with principals or other education leaders, but sustains the view that the actions of various actors within a school setting contribute to fuller and more comprehensive accounts of distributed leadership. Design/methodology/approach While the application of rational/analytical approaches to organizational problems or issues can lead to effective decisions, dilemmas faced by principals are often messy, complex, ill-defined and not easily resolved through algorithmic reason or by the application of rules, as evidenced by the two stories provided by Agnes, a third-year principal in a small countryside elementary school in a small northeastern community, and by John, a novice principal in a suburb of a large Southwestern metropolitan area. Findings The value of the objective knowledge growth framework (OKGF) process is found in its ability to focus Agnes’s attention on things that she may have overlooked, such as options she might have ignored or information that she might have resisted or accepted, as well as innumerable preparations she might have neglected had she not involved all the teachers in her school. Research limitations/implications The implementation of the OKGF may appear, occasionally, to introduce unnecessary points along this route and may not be laboriously applied to all decision-making situations. However, the instinctively pragmatic solutions provided by this framework will often produce effective results. Therefore, in order to reduce potentially irrational outcomes, the systematic approach employed by the OKGF is preferable. The OKGF must be managed, implemented and sustained locally if it is to provide maximum benefits to educational decision makers. Practical implications Given the principals’ changing roles, it is abundantly clear that leadership practice can no longer involve just one person, by necessity, and it is becoming increasingly difficult to imagine how things could have been accomplished otherwise. Expecting the principal to single-handedly lead efforts to improve instruction is impractical, particularly when leadership may be portrayed as what school principals do, especially when other potential sources of leadership have been ignored or treated as secondary or unimportant because that leadership has not emanated from the principal’s office (Spillane, 2006). In this paper, the authors have striven to reveal how a perspective of distributed leadership, when used in conjunction with the objective knowledge growth framework, can be effective in assisting principals in resolving problems of practice. Social implications Different school leaders of varying status within the educative organization benefit from obtaining different answers to similar issues, as evidenced by John’s and Agnes’s leadership tangles. Lumby and English (2009) differentiate between “routinization” and “ritualization.” They argue, “They are not the same. The former erases the need for human agency while the latter requires it” (p. 112). The OKGF process, therefore, cannot provide school leaders with the “right” answers to their educative quandaries, simply because any two school leaders, facing the same issues, may utilize differing theories, solutions, choices or options which may satisfy their issues in response to their own individual contextual factors. Similarly, in a busy day or week, school leaders may be inclined to take the shortest distance between two points in the decision-making process; problem identification to problem resolution. Originality/value Should the OKGF process empower decision makers to obtain sound resolutions to their educative issues by assisting them in distancing themselves from emotions or confirmation biases that may distract them from resolving school problems, its use will have been worthwhile.

Rooting a new event in its place: the case of Festa Templária, Tomar, Portugal

2017 ◽  
Vol 8 (3) ◽  
pp. 324-345 ◽  
Author(s):  
Hermínia Sol ◽  
Marisa P. de Brito ◽  
João Pinto Coelho ◽  
Luís Mota Figueira ◽  
Christopher Pratt ◽  
...  
Keyword(s):  
Decision Making ◽  
Single Case ◽  
Primary Data ◽  
Decision Making Process ◽  
Longitudinal Case Study ◽  
Content Type ◽  
The Creation ◽  
The City ◽  
Practical Implications

Purpose With fierce competition in capturing tourists, it is crucial that destinations be prepared to adapt and to refresh their event portfolio. The purpose of this paper is to look into the decision-making process that led to the development of a new festival in a middle-sized city, Tomar, in Portugal. Design/methodology/approach This study analyses the creation process of the Knights Templar Festival, in Tomar, a new event focusing on the Templar history of the city. A retrospective outlook on the evolution of the event is given. Primary data were collected via quantitative survey analysis and semi-structured interviews. The theoretical scope is events and placemaking. Findings The strengths and weaknesses of the region influenced the conception and setting up of this particular event. This awareness is important for cities in meeting the challenges and opportunities that event portfolio diversification calls for. Research limitations/implications This paper helps us to understand the motives and challenges in establishing a new event in the city, through the analysis of a single case study of a European middle-sized city. Simultaneously, it is a longitudinal in-depth case of the first editions of a new historically focused event. Practical implications Several practical implications can be derived to the case of Tomar. Overall, it is key that cities align the focus of new events with the city’s identity (as Tomar did). Originality/value This paper presents an in-depth and longitudinal case study, from the moment of the creation of a new event to its fourth edition, mapping the decision-making process, highlighting the learning curve of the decision makers.

Taking librarians off the desk: one library changes its reference desk staffing model

2015 ◽  
Vol 16 (1) ◽  
pp. 18-27 ◽  
Author(s):  
Timothy Peters
Keyword(s):  
Decision Making ◽  
Design Methodology ◽  
Statistical Data ◽  
Decision Making Process ◽  
Service Model ◽  
Content Type ◽  
Staffing Model ◽  
Central Michigan University ◽  
Reference Service

Purpose – This paper is a case study of the decision at Central Michigan University to take librarians off the reference desk. Departmental data on reference desk traffic and other ancillary functions of the reference department was used to make the case for removing the librarians from the desk. Data collected since the decision was made has supported the decision to move to an on-call reference desk staffing model. The paper aims to discuss these issues. Design/methodology/approach – The department reviewed and analyzed data on reference desk transactions of all types from previous years to inform its decision making. Data trends and an analysis of the nature of the questions asked at the reference desk were instrumental in the analysis. Findings – The department determined that the statistical data justified the removal of the librarians from the reference desk. Data collected since moving to the on-call model supports the earlier decision. Originality/value – This paper provides libraries considering their own desk staffing models with a discussion of another library’s decision-making process and evidence of a successful migration to a new reference service model.

The need for a comprehensive facility decision-making process

Facilities ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erik Carl Backus ◽  
Jakob C. Bruhl
Keyword(s):  
Decision Making ◽  
Facility Management ◽  
Decision Making Process ◽  
Facilities Management ◽  
Key Factors ◽  
Content Type ◽  
The Face ◽  
Decision Making Processes ◽  
Intuitive Decision Making ◽  
Physical Assets

Purpose The facility decision-making process (FDMP), as described in this paper, is a framework based on decades of proven effectiveness in analogous military applications. The purpose of this paper is to evaluate key factors which justify the need for the FDMP before describing the FDMP. Design/methodology/approach This paper conducts a literature review as it relates to facilities specific decision-making, puts forward a new concept for those processes and provides an abridged case study of the concept in application. Findings Facilities management is a key function for nearly every type of business or enterprise. As part of facilities management, many decisions are made about physical assets that a business or enterprise owns or maintains. Currently, there is no uniform decision-making framework, in literature or in practice, which enables consistency, robustness and scalability for facility management decisions. Such a framework would enable facility managers to effectively justify decisions related to capital and operational expenses. Practical implications The FDMP provides a robust procedure for facilities managers and engineers that enables enhanced strength in the face of business enterprise scrutiny as compared with the often-intuitive decision-making processes currently used in practice. Originality/value This novel conceptual process articulates the opportunity to provide for a comprehensive facilities decision-making process that enables better decisions especially as it relates to what are often ill-defined problem sets in facilities management.

Selecting a suitable Cloud Computing technology deployment model for an academic institute

2014 ◽  
Vol 31 (5) ◽  
pp. 319-345 ◽  
Author(s):  
Ramachandran N. ◽  
Sivaprakasam P. ◽  
Thangamani G. ◽  
Anand G.
Keyword(s):  
Decision Making ◽  
Cloud Computing ◽  
Decision Problem ◽  
Strategic Decision ◽  
Decision Making Process ◽  
Content Type ◽  
Educational Institute ◽  
It Managers ◽  
It Department

Purpose – Cloud Computing (CC) technology is getting implemented rapidly in the educational sector to improve learning, research and other administrative process. As evident from the literature review, most of these implementations are happening in the western countries such as USA, UK, while the level of implementation of CC in developing countries such as India is rare. Moreover, implementing CC technology in the educational sector require various decisions to be made by the managers of the Information Technology (IT) department such as selecting suitable deployment model, vendor providing cloud service, etc. in their respective university or institute. The purpose of this paper is to attempt to address one such decision. Since, different types of CC deployment are available; selecting a suitable one plays a key role, as it might have an impact on the requirements of various stakeholders such as students, teachers, administrative staff (especially the staff members in the IT department), etc. apart from affecting the overall performance of the facilities such as a laboratory. Naturally, a proper decision by analysing multiple perspectives has to be made while carrying out such strategic initiatives by any educational institute. Design/methodology/approach – A case study methodology has been chosen as the research methodology to discuss and demonstrate the above decision problem that was faced in real time by one of the educational institutes in India, offering high-quality management education. The IT managers of this institute were planning to switch over to CC technology for the computer laboratory and they have to make a decision of choosing suitable alternative CC deployment models such as private cloud (PRC), public cloud (PUC), community cloud (COC), hybrid cloud (HYC), etc. by analysing and comparing them based on various factors and perspectives such as elasticity, availability, scalability, etc. Since, multiple factors are involved in making such a strategic decision, the most commonly used Multi-Criteria Decision Making (MCDM) model – namely, the Analytic Hierarchy Process (AHP) is used as a decision support during the decision making process. Findings – The team of decision makers, who were planning to implement CC in the case institute, found that PRC is best as they believed that it would provide adequate cost savings, apart from providing necessary security to maintain confidential information such as student's detail, grades, etc. Research limitations/implications – The results obtained are based on a single case study. Hence, they cannot be generalized for institutions across educational sector. However, the decision making situation and understanding its impact on the stakeholders of the educational institute can be common across various educational institute. Practical implications – Using a real-life case study of an educational institute, this paper presented a strategic decision making situation, which needs to be considered by the IT managers of the educational institutes when they decide to switch over to CC technology. Various criteria to be considered during the decision making process was identified from the literature review were identified and enumerated. These factors would useful for the IT managers of the different educational institute and they can suitably add or delete these decision criteria as per their requirements and situation at hand. Moreover, the algorithm of AHP, which was used as a decision support, was presented in a step-by-step manner, which should be beneficial for the practitioners to apply the same for similar decision making situations. Originality/value – It is believed that this paper would be the first to report on a strategic decision of choosing the deployment model for CC technology especially in the educational sector. Similarly, this paper would also contribute to the field of CC, as it lists out the decision criteria that are to be considered for making the above decision, which has not got adequate importance. Lastly, this paper is also unique in the realm of AHP because application for a decision problem in the field of CC especially in the educational sector is least reported.

Due diligence: Plantation Shutters®, South Africa

2017 ◽  
Vol 7 (2) ◽  
pp. 1-19
Author(s):  
Margie Sutherland ◽  
Hayley Pearson ◽  
Greg Fisher
Keyword(s):  
South Africa ◽  
Decision Making ◽  
Learning Outcomes ◽  
Subject Area ◽  
Management Competencies ◽  
Content Type ◽  
General Management ◽  
Sales Company ◽  
Decision Making Processes

Subject area Company turnaround, General Management. Study level/applicability Executive education, MBA. Case overview This is a four-part case study in which the case of a company turnaround emerges as the students work through a series of decision-making processes. In teaching the case, the students would only be given Part A to begin with, about which they need to make decisions as to what they would do, as preparation for the first part of the lecture. After that has been discussed, they are provided with the second part which tells them what in fact happened in the situation and leads them to the next decision point, and so on. The case deals with an entrepreneur hearing about a business that has gone insolvent; it then tracks the process from investigating the small manufacturing and sales company through the various stages of its subsequent remarkable turnaround to the point where the protagonist was voted Entrepreneur of the Year in South Africa. It covers the period 2007 to 2012 and includes the annual financial statements. Expected learning outcomes Following are the expected learning outcomes: an understanding of the broad range of management competencies; an understanding of how to turnaround a small organisation; and to experience group-based decision-making. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

Choosing action plans for strategic manufacturing objectives using AHP

2019 ◽  
Vol 30 (1) ◽  
pp. 180-194 ◽  
Author(s):  
Andrea Chiarini
Keyword(s):  
Decision Making ◽  
Action Plan ◽  
Decision Making Process ◽  
Action Plans ◽  
Manufacturing Strategy ◽  
Analytic Hierarchy ◽  
Managerial Style ◽  
Content Type ◽  
The Right

Purpose The purpose of this paper is to investigate whether the analytic hierarchy process (AHP) methodology can help in the decision-making process of choosing action plans linked to manufacturing strategy. The research also analyses the path which some managers followed for defining and selecting the action plans as well as the organisational obstacles and pitfalls the managers encountered. Design/methodology/approach The authors conducted an exploratory case study in a medium-sized Italian manufacturing company. The authors collected, coded and discussed data from the AHP implementation. Furthermore, during the observation of how the managers dealt with the decision-making path, the authors collected, coded and discussed the qualitative data. Findings Results showed that AHP made the decision-making process of choosing between alternative plans more objective. However, the authors observed obstacles and pitfalls mainly linked to organisational aspects such as creating team and staff’s awareness, involvement and commitment as well as staff’s skills. Other interesting findings are linked to the creation of managers’ consensus and the top manager’s managerial style and how the latter could affect the AHP consistency ratio. Research limitations/implications This research is based on a case study. The findings need to be tested by other scholars and practitioners in different organisations. Moreover, issues such as management consensus and negotiation in manufacturing organisations and managerial style need further research. Practical implications AHP methodology can help practitioners who are dealing with the deployment of strategic manufacturing objectives and who are trying to employ methods for choosing the right action plan. Besides, practitioners are aware of specific organisational obstacles and pitfalls encountered on the strategic deployment path. Originality/value This paper proposes for the first time the use of the AHP methodology for choosing between action plans derived from strategic manufacturing objectives.

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