scholarly journals Bend Them but Don't Break Them: Passionate Workers, Skeptical Managers, and Decision Making in Organizations

2017 ◽  
Vol 9 (3) ◽  
pp. 100-125
Author(s):  
Omar A. Nayeem
Keyword(s):  
Decision Making ◽  
Moral Hazard ◽  
Decision Maker ◽  
Adverse Selection ◽  
Information Quality ◽  
High Tech ◽  
High Tech Industry ◽  
Frontline Workers ◽  
Knowledge Based

This paper explores the useful but delicate role of managerial skepticism in hierarchical knowledge-based organizations. In these settings, the decision-maker principal seeks advice from managers, who instruct expert frontline workers to acquire information. Given unverifiable information quality and private-valued agents, moral hazard and adverse selection arise with workers and managers, respectively. Pairing extremely passionate workers with moderately skeptical managers alleviates both problems; however, the degree of managerial skepticism must be finely tuned: too little skepticism fails to improve workers' incentives, while too much skepticism destroys workers' incentives altogether. Case studies from the high-tech industry support these insights. (JEL D23, D82, M12, M51)

Do sources of occupational community impact corporate internal control? The case of CFOs in the high-tech industry

2019 ◽  
Vol 32 (4) ◽  
pp. 957-983 ◽  
Author(s):  
Junli Yu ◽  
Shelagh M.R. Campbell ◽  
Jing Li ◽  
Zhou Zhang
Keyword(s):  
Decision Making ◽  
Internal Control ◽  
High Tech ◽  
Upper Echelons ◽  
High Tech Industry ◽  
Content Type ◽  
Group Memberships ◽  
Different Sources

Purpose The Chief Financial Officer (CFO), despite being a critical organization member responsible for ensuring quality of financial reporting, audit and compliance, is under-researched. Grouped as a member of top management teams (TMS) in studies, factors influencing decision making in this group rely on static measures of characteristics without regard for dynamic and longitudinal influences of career trajectories and industry occupational group memberships. The relationship between the high-tech industry as a site of notable reported internal control (IC) weakness and influences on CFOs requires closer examination. The paper aims to discuss these issues. Design/methodology/approach The study draws together the upper echelons theory and occupational communities (OCs) to explore the impact of shared values and behavioral norms from different sources on executive decision making. Internal and external sources of OC are proposed and their influence on activities with respect to corporate IC is tested. The sample of 1,573 firm/year observations includes high-tech firms listed on major US exchanges was developed using data from five distinct databases. Executives’ biographic information was manually collected. Findings Results indicate that senior financial executives belong not only to their firm and its culture but also to OCs that extend beyond the firm. Membership in professional credential granting occupational groups has less impact on effective IC than experience in the high-tech industry. In combination, multiple OCs show evidence of compound and counteracting effects on IC. The OC that arises in the high-tech industry makes a measurable positive difference in the quality of IC in sample firms, in contrast with the OC among credentialed accounting and financial professionals. Research limitations/implications This quantitative study of OC reveals the differential impact of different sources of OC and contributes to the literature on TMS a new framework for examining decision making. OC is typically studied through qualitative methods and, thus, potential exists to further explore the specific nature and dynamics of the OCs identified in this study. Practical implications The study highlights the role of broad affiliations and networks among senior financial executives which may have bearing on their ability to effectively manage IC. The role of these networks may also partially explain instances of CFO failure and thus dismissal. Knowledge of the role of OC may help boards of directors in the selection and promotion of senior financial officers of the firm. Originality/value The paper offers a different perspective on professional accounting expertise in one specific industry where incidence of IC weakness is high relative to other industries. Study results expand recent research on TMS to include sociological impacts of cohort groups. Despite generally weaker IC in the high-tech sector, this study demonstrates the value of exploring group membership within the industry as an important predictor of behavior. The result is a new perspective to CFO decision making which illustrates the relevance of OCs among upper echelons. The implications of findings for CFO recruitment and promotion are borne out in recent instances of senior financial executive failure in the sector.

Shareholder-driven Corporate Governance

2019 ◽  
Author(s):  
Anita Indira Anand
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Moral Hazard ◽  
Capital Markets ◽  
Regulated Markets ◽  
The People ◽  
Important Trend ◽  
Technical Capacity ◽  
Regulatory Challenges

This is a book about the ways in which capital markets have come to be shaped by the ubiquity of sophisticated investors. In particular, many of today’s investors have the economic might and technical capacity to play a role in the decision-making of the corporations in which they invest. This phenomenon brings with it a host of benefits, such as mechanisms to ameliorate the moral hazard that can exist when the people who bear the risk of corporate activity are different from those who make decisions. A key element of this book is an examination of the ways in which thinking about corporations and capital markets must change to reflect the prevalence of sophisticated shareholders. The book develops a concept—shareholder-driven corporate governance—to explain the role of powerful shareholders and to propose a regulatory scheme that furthers their participation in corporate decision-making. In doing so, the book considers a number of regulatory challenges that confront securities regulators. Ultimately, the book identifies an important trend in capital markets, highlights reasons for fostering this trend, and discusses the path that regulation can and should take in order to protect investors and foster well-regulated markets.

scholarly journals Cancer Patients: Their Desire for Information and Participation in Treatment Decisions

1989 ◽  
Vol 82 (5) ◽  
pp. 260-263 ◽  
Author(s):  
H J Sutherland ◽  
H A Llewellyn-Thomas ◽  
G A Lockwood ◽  
D L Tritchler ◽  
J E Till
Keyword(s):  
Decision Making ◽  
Cancer Patients ◽  
Decision Maker ◽  
Treatment Decisions ◽  
Autonomous Decision ◽  
Disclosure Of Information ◽  
Participation In Decision Making ◽  
Psychological Autonomy ◽  
The Relationship

The relationship between cancer patients’ desire for information and their preference for participation in decision making has been examined. Approximately 77% of the 52 patients reported that they had participated in decision making to the extent that they wished, while most of the remaining 23% would have preferred an opportunity to have greater input. Although many of the patients actively sought information, a majority preferred the physician to assume the role of the primary decision maker. Ethically, the disclosure of information has been assumed to be necessary for autonomous decision making. Nevertheless, the results of this study indicate that patients may actively seek information to satisfy an as yet unidentified aspect of psychological autonomy that does not necessarily include participation in decision making.

scholarly journals Factors affecting innovation capacity in Vietnamese Southern high technology industries

2017 ◽  
Vol 24 (03) ◽  
pp. 66-93
Author(s):  
Vân Đoàn Thị Hồng ◽  
Uyen Bui Nhat Le
Keyword(s):  
Government Support ◽  
High Tech ◽  
Total Quality ◽  
Precision Engineering ◽  
High Tech Industry ◽  
Factors Affecting ◽  
Knowledge Based ◽  
Knowledge Based Economy ◽  
Innovation Capacity ◽  
Technology Industries

Numerous studies have demonstrated that the success of businesses in the era of knowledge-based economy depends on their innovation capacity (Azevedo et al., 2007). Therefore, the main goal of this study is to explore the factors that impact the innovation capacity of enterprises in the Vietnam Southern high tech industry. Besides the qualitative method, the study carries out a survey of 380 enterprises in the fields of electronics, microelectronics, information technology, telecommunications, precision engineering, automation, biotechnology, and nanotechnology. The results reveal that total quality management, internal human resources, absorptive capacity, government support, and collaboration networks impact positively on the innovation capacity. In addition, the research proposes solutions for high tech enterprises to boost their innovation capacity in the future.

The Evolving Role of Superintendents in School-Based Management

1993 ◽  
Vol 3 (4) ◽  
pp. 380-390 ◽  
Author(s):  
Jackie Kowalski ◽  
Arnold Oates
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Educational System ◽  
Leadership Characteristics ◽  
Collaborative Decision Making ◽  
School Based ◽  
School Based Management ◽  
Collaborative Decision ◽  
New Look

As school-based management and collaborative decision making are implemented in the educational system, the role of the superintendent will take on a new look. The superintendent will become a leader of leaders and a collaborative decision maker. The author explores the necessary leadership characteristics and skills of the superintendent in this new role.

The Bandwagon Once More: Vocational Preparation for High-Tech Occupations

1984 ◽  
Vol 54 (4) ◽  
pp. 429-452 ◽  
Author(s):  
W. Norton Grubb
Keyword(s):  
Community College ◽  
Vocational Education ◽  
National Policy ◽  
International Competition ◽  
High Tech ◽  
Education Programs ◽  
High Tech Industry ◽  
Educational Mission ◽  
Historical Role

In recent months, high-tech industry has been hailed as the solution to the nation's unemployment and international competition problems and the salvation of economically declining regions of the country. Community colleges have responded by establishing new vocational education programs to prepare students for jobs in high-tech industry. Utilizing data from the state of Texas, Norton Grubb examines the ability of high-tech industry to provide jobs for graduates of these programs. He also discusses the historical role of vocational education in national policy and the problems which may result from the attempt to prepare students for specific jobs rather than for careers. Grubb concludes by warning that the growth of high-tech industry may lead to the development of programs which, for the time being serve the interests of industry but which ultimately weaken the educational mission of the community college.

What parents want from doctors in end-of-life decision-making for children

2013 ◽  
Vol 99 (3) ◽  
pp. 216-220 ◽  
Author(s):  
J Sullivan ◽  
P Monagle ◽  
L Gillam
Keyword(s):  
Decision Making ◽  
End Of Life ◽  
Decision Maker ◽  
Semistructured Interview ◽  
End Of Life Decisions ◽  
Parental Autonomy ◽  
End Of Life Decision ◽  
Life Decision

ObjectiveEnd-of-life decision-making is difficult for everyone involved, as many studies have shown. Within this complexity, there has been little information on how parents see the role of doctors in end-of-life decision-making for children. This study aimed to examine parents’ views and experiences of end-of-life decision-making.DesignA qualitative method with a semistructured interview design was used.SettingParent participants were living in the community.ParticipantsTwenty-five bereaved parents.Main outcomesParents reported varying roles taken by doctors: being the provider of information without opinion; giving information and advice as to the decision that should be taken; and seemingly being the decision maker for the child. The majority of parents found their child's doctor enabled them to be the ultimate decision maker for their child, which was what they very clearly wanted to be, and consequently enabled them to exercise their parental autonomy. Parents found it problematic when doctors took over decision-making. A less frequently reported, yet significant role for doctors was to affirm decisions after they had been made by parents. Other important aspects of the doctor's role were to provide follow-up support and referral.ConclusionsUnderstanding the role that doctors take in end-of-life decisions, and the subsequent impact of that role from the perspective of parents can form the basis of better informed clinical practice.

scholarly journals Sistem Informasi Dalam Hubungan Prinsipal – Agen Di RSU-BLUD Bahteramas, Kota Kendari Provinsi Sulawesi Tenggara

2021 ◽  
Vol 3 (1) ◽  
pp. 76-85
Author(s):  
Zainul Abidin
Keyword(s):  
Information Systems ◽  
Moral Hazard ◽  
Adverse Selection ◽  
Supervisory Board ◽  
Agency Problems ◽  
Complete Information ◽  
Qualitative Approach ◽  
Conventional Systems ◽  
Reporting Procedures

 This study aims to analyze the information systems that occur, especially in terms of reporting procedures, budgeting systems and the role of the supervisory board at the Bahteramas Hospital, Kendari City, Southeast Sulawesi Province. This research uses a qualitative approach. The results show that the reporting procedure uses a combination of computers and manuals, but manual systems are still dominant. The budgeting system still uses conventional systems and also uses performance-based budgets. The supervisory board has carried out its duties, but it is still not optimal. Even so, there is complete information where the principal knows what the agent is doing. Even though in reality, there are still agency problems (moral hazard and adverse selection) both potentially and factually. For example, negligence in the supply of drugs, but on the whole does not hinder the disclosure of information by the principal.

Sign in / Sign up

Export Citation Format

Share Document