scholarly journals Biases in Managerial Decision Making: Overconfidence, Status Quo, Anchoring, Hindsight, Availability

2021 ◽  
Vol 3 (1-2) ◽  
pp. 08-23
Author(s):  
Selim Aren ◽  
Hatice Nayman Hamamci
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Empirical Studies ◽  
Status Quo ◽  
Managerial Decision ◽  
Psychological Variables ◽  
Managerial Decisions ◽  
Raising Awareness ◽  
Decision Making Processes ◽  
The Mind

Decision-making processes occur with the interaction of some cognitive and psychological variables. Neoclassical theories deal with rational reactions in these processes. However, in an environment where there is no information or where there is uncertainty instead of risk, decisions cannot be made rationally as the mind indicates. In this direction, firm managers have to make many decisions under uncertainty. For this reason, managers resort to various simple and useful shortcuts called bias for different reasons. In this study, it was aimed to reveal the effects of behavioral biases on management decisions. In this context, five biases in the behavioral finance literature, namely overconfidence, status quo, anchoring, hindsight and availability, were evaluated with theoretical and empirical studies and their effects on managerial decisions were discussed. It was seen that raising awareness of these biases in terms of managers provides benefits such as realistic evaluation of themselves, giving more realistic weights to events when making decisions, reaching rational judgments more easily and being open to innovations. In addition, this awareness, when combined with the emotional competencies of managers, helps them make successful decisions.

scholarly journals Behavioral Issues for Sustainable Investment Decision-Making: A Literature Review

2016 ◽  
Vol 12 (1) ◽  
pp. 1 ◽  
Author(s):  
Andrea Tomo ◽  
Giovanni Landi
Keyword(s):  
Decision Making ◽  
Investment Decision ◽  
Managerial Decision ◽  
Behavioral Issues ◽  
Responsible Behavior ◽  
Thomson Reuters ◽  
Investment Decision Making ◽  
Decision Making Processes ◽  
Sustainable Investment ◽  
Corporate Social

The aim of this work is to understand the role of the Environmental, Social and Governance (ESG) paradigm in the corporate assessment by investors and the use of this paradigm as guide for managerial decision-making process by corporations. A review of the international literature is provided using five different couples of keywords on Thomson Reuters ISI Web of Knowledge research engine. The literature production increased only after the 2007 crisis and the median year of the results is 2011, thus highlighting just a recent attention to themes as ethics and corporate social responsibility. Main limitations are related to the classic limitations of literature reviews, as the choice of number and type of keywords and journals, the resulting selection of studies, the choice of relevant outcomes and the interpretation, generalization and application of results. The study provides both theoretical and practical implications: a complete review of contributions on the theme is provided; then, some insights in investors and corporations behaviors through the ESG lens, thus suggesting a more ethical and responsible behavior in investment decision-making processes.

Managerial Decision Support in the Post-COVID-19 Era

2021 ◽  
pp. 225-241
Author(s):  
Jan Kalina
Keyword(s):  
Decision Making ◽  
Decision Support ◽  
Decision Support Systems ◽  
Management Practices ◽  
Support Systems ◽  
Management Decision ◽  
Managerial Decision ◽  
Massive Datasets ◽  
New Development ◽  
Decision Making Processes

The COVID-19 pandemic accelerated trends to digitalization and automation, which allow us to acquire massive datasets useful for managerial decision making. The expected increase of available data (including big data) will represent a potential for an increasing deployment of management decision support systems for more general and more complex tasks. Sophisticated decision support systems have been proposed already in the pre-pandemic times either to assist managers in specific decision-making processes or to perform the decision making fully automatically. Decision support systems are presented in this chapter as perspective artificial intelligence tools contributing to a deep transform of everyday management practices. Attention is paid here to their new development in the quickly transforming post-COVID-19 era and to their role under the post-pandemic conditions. As an original contribution, this chapter presents a vision of information-based management, which far exceed the rather limited pre-pandemic visions of evidence-based management focused primarily on critical thinking.

scholarly journals The Effect Of Mobile BI On Organisational Managerial Decision-Making

2014 ◽  
Vol 30 (4) ◽  
pp. 1003 ◽  
Author(s):  
Yasser Buchana ◽  
Visvanathan Naicker
Keyword(s):  
Decision Making ◽  
Business Intelligence ◽  
Business Processes ◽  
Information Resources ◽  
Mobile Business ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
New Era ◽  
It Systems ◽  
Decision Making Processes

<p>Managerial decision-making has always involved the use of numerous distinct information resources. Modern managerial decision-making processes require a wealth of information that is enhanced and transformed into knowledge in order to take effective action. Mobility in business is increasingly exercising influence on core business processes of organisations. Recent advances in wireless technologies coupled with the rapid growth of mobile devices in business have led to a new era in business computing. Mobile Business Intelligence (Mobile BI) is a system that has been conceived to assist, accelerate and to enhance the managerial decision-making processes. Drawing from an array of previous studies that attempted to measure the value of Business Intelligence (BI) and other IT systems in organisations, this study develops a new kind of measure which is based on an understanding of the distinct properties of Mobile BI systems in an organisational-oriented context.</p>

scholarly journals Strategies for making management decisions in information and analytical activity

2021 ◽  
pp. 26-30
Author(s):  
Olha Danylyuk ◽  
Lyudmyla Petryshyn
Keyword(s):  
Decision Making ◽  
Management System ◽  
Management Decisions ◽  
Managerial Decision ◽  
Significant Information ◽  
Managerial Decision Making ◽  
Managerial Decisions ◽  
Regional Management ◽  
Analytical Research ◽  
Principles Of Design

The aim of the study is to substantiate and analyze the strategy of managerial decision-making in information and analytical activities, to specify the main aspects of analytics for decision-making.Strategies for making managerial decisions in information and analytical activities are substantiated. The relevance of the use of information-analytical research is determined. The main aspects of analytics for decision making are analyzed, as well as the ranging of classes according to the degree of intelligence and complexity of tasks is taken into account. The peculiarities of completeness and reliability of information for information-analytical research are revealed. It is determined, that information analytics is a component of management.The regional management analytics is analyzed, as a result of which it is proposed the scheme of regional management with the use of information and analytical support is offered. The basic principles of design are offered. It is proved, that the management system requires modern analytical support, performed according to the requirements of science, the latest methodologies, including information and analytical activities. Problems and negative sides in the process of information-analytical activity in the system of regional management are determined. It is noted, that information and analytical support helps to achieve the best results, and the effectiveness of activities in any field depends on the management system. The obtained research results will allow will improve planning, organization and coordination of managerial decision-making and will help to form a significant information capital for making relevant management decisions at all hierarchical levels of management

scholarly journals Key sur(VIR)val factors in water supply companies: some lessons from Poland

2020 ◽  
Author(s):  
Paweł Chudziński ◽  
Szymon Cyfert ◽  
Wojciech Dyduch ◽  
Maciej Zastempowski
Keyword(s):  
Decision Making ◽  
Water Supply ◽  
Economic Crisis ◽  
Office Work ◽  
Key Factors ◽  
Managerial Decision ◽  
Home Office ◽  
Managerial Decision Making ◽  
Managerial Decisions ◽  
Made In

Abstract This paper presents the outcomes of research on managerial decisions that were made as a first reaction to the economic crisis caused by the SARS-Cov-19 virus (the coronacrisis). The research was carried out among 116 companies from the water supply sector operating in Poland that includes water supply and sewage. The results indicate which elements were perceived by managers as key factors for survival and further functioning. It is clear that the most frequent managerial decisions made were reducing investments and sending employees for home office work, as well as prolonging the payment deadlines. Interestingly, investment reductions were accompanied by sustaining the R&D expenses, as the researched organisations desired to stay competitive and innovative right after the crisis. Only a few of the water supply companies decided to make workers redundant, as the majority declared the intent to protect the workforce, e.g. by sending employees on leave. The research has also shown that the companies approached the coronacrisis rather methodologically and systematically, which indicates a good level of managerial decision-making under pressure, overall enterprise preparedness for crisis situations, as well as staff involvement. Based on our research, we offer some recommendations concerning how the water supply sector organisations can prepare for similar crises in the future. Our research indicates that the decisions made had the following goals in mind: protecting workforce and sustaining cash flow, as well as securing competitive position after the crisis. Our research also focuses on the necessary decisions to be made in water supply companies before the next crises.

Policy analysis in civil society organisations

2018 ◽  
pp. 199-212
Author(s):  
Güneş Ertan
Keyword(s):  
Decision Making ◽  
Civil Society ◽  
Policy Analysis ◽  
Empirical Studies ◽  
Civil Society Organizations ◽  
Civil Society Organisations ◽  
Current State ◽  
Combining Data ◽  
Decision Making Processes

This chapter is mainly concerned with providing a concise synopsis of the state of civil society in Turkey and an overview of the decision-making processes at civil society organizations (CSOs) by combining data from various empirical studies. The chapter begins with a discussion of the roots of weak civil society in Turkey followed by an illustration of the current state of civil society as a space. The chapter will then examine policy analysis practices in CSOs with a focus on prevalent decision making structures and the role of external funds in addition to agenda setting and evaluation processes. The chapter concludes by arguing that CSOs in Turkey are still yet to become effective implementers of policy analysis tools.

Teaching Versus Living: Managerial Decision Making in the Gray

2017 ◽  
Vol 41 (4) ◽  
pp. 455-468 ◽  
Author(s):  
Eugene Soltes
Keyword(s):  
Decision Making ◽  
Ethical Decision ◽  
Ethical Decision Making ◽  
Management Education ◽  
White Collar ◽  
Behavioral Ethics ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Ethical Decisions ◽  
The Mind

Preparing students for the consequential ethical decisions that they will face in their careers is among the most difficult tasks of management education. I describe some of these challenges based on my book Why They Do It: Inside the Mind of the White-Collar Criminal and recent work in behavioral ethics. I explore why some decisions are much more easily resolved in the classroom than in practice and offer three ways to more effectively prepare students: integrating ethical decision making with core-discipline teaching, cultivating moral humility rather than moral confidence, and creating opportunities for norm reinforcement.

scholarly journals Understanding strategic decision-making through a multi-paradigm perspective

2017 ◽  
Vol 7 (1) ◽  
pp. 2-20 ◽  
Author(s):  
Christos Anagnostopoulos ◽  
Terri Byers ◽  
Dimitrios Kolyperas
Keyword(s):  
Decision Making ◽  
Empirical Work ◽  
Strategic Decision ◽  
Strategic Decision Making ◽  
Strategy Formulation ◽  
Managerial Decision ◽  
Content Type ◽  
Charitable Foundations ◽  
Decision Making Processes ◽  
Corporate Social

Purpose The purpose of this paper is to illustrate the efficacy of using a multi-paradigm perspective to examine the relationship between corporate social responsibility (CSR) and strategic decision-making processes in the context of charitable foundations. Design/methodology/approach This paper integrates and synthesizes the micro-social processes of “assessable transcendence” (Anagnostopoulos et al., 2014) with Whittington’s (2001) perspectives on strategy. “Assessable transcendence” was achieved from the constant comparison of categories developed through an early iterative process in which data collection and analysis occurred during the same period. In all, 32 interviews were conducted among a sample of key managers in the charitable foundations for the first two divisions of English football. Findings The present study illustrates empirically that strategic decision making in charitable foundations does not “seat” neatly in any one of Whittington’s perspectives. On the contrary, this study indicates a great deal of overlap within these perspectives, and suggests that conflicting paradigms should be celebrated rather than viewed as signs of theoretical immaturity. Multi-paradigm approaches can potentially reveal insights into the “mechanics” of managerial decision making that are not easily discernible from a mono-paradigmatic perspective. Originality/value This is the first empirical work that examines CSR in relation to strategy within the context of the English football clubs’ charitable foundations, and does so by employing a multi-paradigm perspective on strategy formulation and implementation.

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