Risk Aversion in Management Decision Making

2020 ◽  
pp. 270-282
Author(s):  
Manuel Garcia ◽  
Palaniappan Thiagarajan
Keyword(s):  
Decision Making ◽  
Uncertainty Avoidance ◽  
Cultural Dimensions ◽  
Management Decision ◽  
Future Research ◽  
Global Business ◽  
Research Directions ◽  
Significance Level ◽  
Management Decision Making ◽  
Future Research Directions

With the shrinking of the globe through globalization it is important to understand global business and culture. A considerable number of people rely upon Hofstede's 1980's findings. This chapter looks at the validity of those findings in general, his cultural dimensions, and uncertainty avoidance. This study tests the hypothesis that position level within an organization has an impact on the employee's level of uncertainty avoidance. The result of the linear regression model, R2 value of .019 and a significance level of .057, reflect that position level is not a predictor of uncertainty avoidance. However, a single sample t-test reflects that based on position level the employees had significantly different responses to the uncertainty avoidance questionnaire, p less than .001. These findings suggest that a difference does exist based on position level, but that there are other factors that have a greater impact on the level of uncertainty avoidance. Implications from this research as well as limitations and future research directions are also discussed.

Central Language Hypothesis in the Decision-Making Process

2016 ◽  
pp. 66-83 ◽  
Author(s):  
Duygu Buğa
Keyword(s):  
Decision Making ◽  
Theoretical Framework ◽  
Future Research ◽  
Limbic Cortex ◽  
Decision Making Process ◽  
Discussion Section ◽  
Research Directions ◽  
Additional Information ◽  
Future Research Directions ◽  
The Brain

The purpose of this chapter is to explore the potential connection between neuroeconomics and the Central Language Hypothesis (CLH) which refers to the language placed within the subconscious mind of an individual. The CLH forwards that in the brains of bilingual and multilingual people, one language is more suppressive as it dominates reflexes, emotions, and senses. This central language (CL) is located at the centre of the limbic cortex of the brain. Therefore, when there is a stimulus on the limbic cortex (e.g., fear, anxiety, sadness), the brain produces the central language. The chapter begins with an Introduction followed by a Theoretical Framework. The next section discusses the neurolinguistic projection of the central language and includes the survey and the results used in this study. The Discussion section provides additional information regarding the questionnaire and the CLH, followed by Future Research Directions, Implications, and finally the Conclusion.

Decision Making Under Uncertainty and Risks in the Face of Rapidly Advancing Technologies

2019 ◽  
pp. 38-56
Author(s):  
Vicente González-Prida Díaz ◽  
Jesus Pedro Zamora Bonilla ◽  
Pablo Viveros Gunckel
Keyword(s):  
Decision Making ◽  
Social Perception ◽  
Industry 4.0 ◽  
Future Research ◽  
Risk And Uncertainty ◽  
Research Directions ◽  
The Face ◽  
Future Research Directions ◽  
Key Aspects ◽  
Reduction Of Uncertainty

This chapter aims to consider the effects of the new concept Industry 4.0 on decision making, particularly on the reduction of uncertainty and the risk associated with any choice between alternatives. For this purpose, this chapter begins by dealing with the concepts of risk and uncertainty and their epistemological evolution. After observing certain trends and recent studies in this regard, the authors address a more philosophical perception of risk, mainly on aspects related to engineering and social perception. The concept of human reliability will also be reviewed and how it can be improved with the application of emerging technologies, considering some methodological proposals to improve the decision making. After that, some of the possible future research directions will be briefly discussed. Finally, the chapter concludes by highlighting key aspects of the chapter as a context for other chapters in the book.

Management of Risk and Resilience within Collaborative Business Network

2016 ◽  
pp. 143-159
Author(s):  
Ahm Shamsuzzoha
Keyword(s):  
Risk Mitigation ◽  
Future Research ◽  
Business Networks ◽  
Risk And Resilience ◽  
Business Network ◽  
Global Business ◽  
Research Directions ◽  
Future Research Directions ◽  
Potential Risks ◽  
Different Levels

Global business communities are facing tremendous challenges from market places with respect to reduce cost and offer true customized products or services to the end customers. To cope such challenges companies are nowadays considering forming a business network with the objective to achieve several business benefits. However, to execute such business network is not risks free but always facing some problems for its continuation successfully. In such situation, it is necessary to formulate risk mitigation plan and strengthen the resilience within business network. The objective of this article is therefore to identifying and sharing risks within the collaborative business network and proposing necessary mitigating plan and resilience for it. In this research, a framework is also highlighted that provides a structural approach for identifying and assessing potential risks and resilience in business networks and their possible impacts on different levels of collaboration. The study is concluded with future research directions.

scholarly journals Discriminated by an algorithm: a systematic review of discrimination and fairness by algorithmic decision-making in the context of HR recruitment and HR development

2020 ◽  
Vol 13 (3) ◽  
pp. 795-848
Author(s):  
Alina Köchling ◽  
Marius Claus Wehner
Keyword(s):  
Systematic Review ◽  
Decision Making ◽  
Current Knowledge ◽  
Future Research ◽  
Journal Articles ◽  
Research Directions ◽  
Current State ◽  
Management Context ◽  
Future Research Directions ◽  
State Of Research

AbstractAlgorithmic decision-making is becoming increasingly common as a new source of advice in HR recruitment and HR development. While firms implement algorithmic decision-making to save costs as well as increase efficiency and objectivity, algorithmic decision-making might also lead to the unfair treatment of certain groups of people, implicit discrimination, and perceived unfairness. Current knowledge about the threats of unfairness and (implicit) discrimination by algorithmic decision-making is mostly unexplored in the human resource management context. Our goal is to clarify the current state of research related to HR recruitment and HR development, identify research gaps, and provide crucial future research directions. Based on a systematic review of 36 journal articles from 2014 to 2020, we present some applications of algorithmic decision-making and evaluate the possible pitfalls in these two essential HR functions. In doing this, we inform researchers and practitioners, offer important theoretical and practical implications, and suggest fruitful avenues for future research.

scholarly journals Virtual bargaining: a theory of social decision-making

2014 ◽  
Vol 369 (1655) ◽  
pp. 20130487 ◽  
Author(s):  
Jennifer B. Misyak ◽  
Nick Chater
Keyword(s):  
Decision Making ◽  
Essential Element ◽  
Social Contexts ◽  
Future Research ◽  
Research Directions ◽  
Social Decision ◽  
Future Research Directions ◽  
Empirical Tests ◽  
Social Decision Making ◽  
Vast Range

An essential element of goal-directed decision-making in social contexts is that agents' actions may be mutually interdependent. However, the most well-developed approaches to such strategic interactions, based on the Nash equilibrium concept in game theory, are sometimes too broad and at other times ‘overlook’ good solutions to fundamental social dilemmas and coordination problems. The authors propose a new theory of social decision-making—virtual bargaining—in which individuals decide among a set of moves on the basis of what they would agree to do if they could openly bargain. The core principles of a formal account are outlined (vis-à-vis the notions of ‘feasible agreement’ and explicit negotiation) and further illustrated with the introduction of a new game, dubbed the ‘Boobytrap game’ (a modification on the canonical Prisoner's Dilemma paradigm). In the first empirical data of how individuals play the Boobytrap game, participants' experimental choices accord well with a virtual bargaining perspective, but do not match predictions from a standard Nash account. Alternative frameworks are discussed, with specific empirical tests between these and virtual bargaining identified as future research directions. Lastly, it is proposed that virtual bargaining underpins a vast range of human activities, from social decision-making to joint action and communication.

Auditing Fair Value Measurements: A Synthesis of Relevant Research

2006 ◽  
Vol 20 (3) ◽  
pp. 287-303 ◽  
Author(s):  
Roger D. Martin ◽  
Jay S. Rich ◽  
T. Jeffrey Wilks
Keyword(s):  
Decision Making ◽  
Fair Value ◽  
Two Dimensions ◽  
Judgment And Decision Making ◽  
Future Research ◽  
Relevant Research ◽  
Research Directions ◽  
Academic Literature ◽  
Future Research Directions ◽  
Fair Value Measurements

To contribute to the PCAOB project on auditing fair value measurements (FVMs), we synthesize relevant academic literature to offer insights, conclusions, and future research directions for auditors, standard-setters, and academics focusing on auditing FVMs. We structure our synthesis along two dimensions: (1) an emphasis on the auditor's need to understand how FVMs are prepared, and (2) the audit steps and procedures necessary to verify and attest to FVMs, including an awareness of the potential biases inherent in auditing FVMs. Drawing primarily from the judgment and decision-making literature, we highlight a number of potential biases and limitations in the preparation and audit of FVMs. Additionally, we note that the specialized valuation knowledge necessary to effectively audit FVMs will be difficult for auditors to gain and maintain.

Applying Info-Gap Theory to Remanufacturing Process Selection Affected by Severe Uncertainty

2007 ◽  
Author(s):  
Scott J. Duncan ◽  
Christiaan J. J. Paredis ◽  
Bert Bras
Keyword(s):  
Decision Making ◽  
Critical Level ◽  
Future Research ◽  
Decision Strategy ◽  
Process Selection ◽  
Research Directions ◽  
Information Gap ◽  
Future Research Directions ◽  
Severe Uncertainty ◽  
Design Scenario

In this article, Information-Gap Decision Theory (IGDT), an approach to robust decision making under severe uncertainty, is applied to decisions about a remanufacturing process. IGDT is useful when only a nominal estimate is available for an uncertain quantity; the amount that estimate differs from the quantity’s actual value is not known. The decision strategy in IGDT involves maximizing robustness to uncertainty of unknown size, while still guaranteeing no worse than some “good enough” critical level of performance, rather than optimal performance. The design scenario presented involves selecting the types of technologies and number of stations to be used in a remanufacturing process. The profitability of the process is affected by severe uncertainty in the demand for remanufactured parts. Because nothing is know about demand except an estimate based on a different product from a previous year, info-gap theory will be used to determine an appropriate tradeoff between performance and robustness to severe uncertainty. Which design is most preferred is seen to switch depending on choice of critical performance level. Implications of findings, as well as future research directions, are discussed.

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