Economic Decision-Making in Private Corporations Versus Public Sector

2020 ◽  
Vol 11 (1) ◽  
pp. 73-98
Author(s):  
Brian J. Galli
Keyword(s):  
Decision Making ◽  
Public Sector ◽  
Literature Review ◽  
Private Firms ◽  
Public And Private ◽  
Economic Decision ◽  
The Public ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
Decision Making Processes

This research takes a comparative analysis approach to study the process of economic decision-making within the private sector and the public sector. There are four main research objectives that guided this article. First, it aims to identify the different kinds of decision-making methods. Second, this article analyzes the economic decision-making processes that stakeholders have to make in public and private firms. Third, this r seeks to illustrate that establish effective decision-making and financial performance relate. Lastly, the article will offer effective economic decision-making procedures in private and public organizations, so as to make recommendations and to guide these businesses. To do so, there is a literature review in this research to find the best economic decision-making processes. Data collection tools were created in reference to the literature review that directed the structuring of the variables, and the study based the quantitative analysis on the adopted descriptive methodology. The sample was comprised of 100 respondents from China, and since 95% responded, that was a total of 95 responses. Based on the formulated study hypothesis and the research objectives, the collected data was examined for descriptive and inferential statistical analysis. In general, the findings showed that cost-benefit analysis was the favored economic evaluation method, and the respondents specified that they their internal and external economic decisions directly influence the company's operations. When focusing on how organizational performance is affected by effective economic decisions, the findings established that there was a key component for a better economic analysis outcome in the public and private firms: accounting information. Additionally, evaluating the number of processes in public and private firms led to findings that revealed the following: every decision in the public sector requires many approvals. These approvals greatly hinder economic decisions and decision-making. Social, cultural, and environmental aspects influence the decision process significantly, so they must be addressed immediately.

Implications of Economic Decision Making to the Project Manager

2021 ◽  
Vol 4 (1) ◽  
pp. 19-32
Author(s):  
Brian J. Galli
Keyword(s):  
Decision Making ◽  
Literature Review ◽  
Project Manager ◽  
Financial Return ◽  
Economic Decision ◽  
Economic Decisions ◽  
Project Outcome ◽  
Economic Decision Making ◽  
Internal Stakeholders ◽  
The Impact

This paper aims to identify and assess the impact of the project manager's economic decision on a project's outcome. Therefore, this paper focuses on whether a project will be economically and financially viable and will meet the interests of both external and internal stakeholders, especially the project manager's attention. Thus, the objective is to find in the decision-making process how economic decisions can provide and ensure an appropriate level of financial return rate to external and internal stakeholders, such as the project manager. The literature review approach was used to identify this economic decision-making implications on the project's outcomes. Studies show how projects' future is associated with decision making. However, a literature review has shown a shortage of research on the impact of only economic decisions on the project manager and project outcome. This study aims to fill that gap.

How Economic Decisions Are Made in Public vs. Private Sectors

2018 ◽  
Vol 1 (1) ◽  
pp. 38-47 ◽  
Author(s):  
Brian J. Galli
Keyword(s):  
Systematic Review ◽  
Decision Making ◽  
Government Regulation ◽  
Public And Private ◽  
The Public ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
Private And Public ◽  
Public Sectors ◽  
Made In

This article describes how economic decisions are made differ from the public and private sectors. Both cater their decisions to the needs of the public but the context and the purpose behind the decisions differ. The primary purpose of article is to evaluate and compare the most common and effective methods of decision making used in private or public sectors. This article used a traditional systematic review of current literature in the field in order to perform the purpose of the study. It was found that although both sectors will make similar decisions, the sectors would utilize different methods to achieve economic decisions, primarily because both are affected by diverse factors. While private sector decisions may be hindered by government regulation, the public-sector faces challenges with financing a project and politics. This paper concludes that all the methods the private and public sectors utilize, including those in common, are viewed differently, and therefore their economic decision-making is not one in the same. Therefore, the method used to make the decision is dependent on the context of the decisions being made and also several other factors (operational, culture, regulatory) that depend on the type of sector (public or private).

Framing Information Technology Governance in the Public Sector: Opportunities and Challenges

2015 ◽  
Vol 11 (4) ◽  
pp. 89-101 ◽  
Author(s):  
Khalifa Al-Farsi ◽  
Ramzi EL Haddadeh
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Public Sector ◽  
It Governance ◽  
Decision Makers ◽  
The Public ◽  
Technology Governance ◽  
Support Organizations ◽  
Information Technology Governance ◽  
Decision Making Processes

Information technology governance is considered one of the innovative practices that can provide support for decision-makers. Interestingly, it has become increasingly a de facto for organizations in seeking to optimise their performance. In principle, information technology governance has emerged to support organizations in the integration of information technology (IT) infrastructures and the delivery of high-quality services. On the other hand, decision-making processes in public sector organisations can be multi-faceted and complex, and decision makers play an important role in implementing technology in the public sector. The aim of this paper is to shed some light on current opportunities and challenges that IT governance is experiencing in the context of public sector services. In this respect, this paper examines the factors influencing the decision-making process to fully appreciate IT governance. Furthermore, this study focuses on combining institutional and individual perspectives to explain how individuals can take decisions in response to institutional influences.

Practitioner's View on the Future of Economic Decision-Making in Project Management

2019 ◽  
Vol 6 (2) ◽  
pp. 33-55
Author(s):  
Brian J. Galli
Keyword(s):  
Decision Making ◽  
Project Management ◽  
Future Trend ◽  
Team Size ◽  
Economic Decision ◽  
Economic Decisions ◽  
Economic Decision Making ◽  
The Future ◽  
Financial Decision ◽  
The Cost

As of now, the best means to plan for the future is project management because it has been proven effective in problem-solving and generating solutions. Few projects entail economic decision-making because of the cost factor, but the wrong decisions can be made because of the complications that come with making economic decisions. However, financial decision-making does not only entail gathering information and making decisions accordingly. The economy must be analyzed and the future economy must be estimated for any economic decisions to be viable. This study highlights the future trend, as well as the significance of economic decision-making within project management. Furthermore, it tests several factors: economic decision-making influence, creativity, risk profile, and the management team size for a successful project. Primarily, this study will assess how significant economic decision-making is in project management.

Underlying values and competencies of public and private sector managers

2016 ◽  
Vol 5 (4) ◽  
pp. 371-387 ◽  
Author(s):  
Sean D. Darling ◽  
J. Barton Cunningham
Keyword(s):  
Decision Making ◽  
Public Sector ◽  
Private Sector ◽  
Critical Incident ◽  
Visionary Leadership ◽  
Political Environment ◽  
Public And Private ◽  
Content Type ◽  
The Public ◽  
Public And Private Sector

Purpose The purpose of this paper is to identify unique values and competencies linked to private and public sector environments. Design/methodology/approach This study is based on critical incident interviews with a sample of senior leaders who had experience in both the public and private sectors. Findings The findings illustrate distinct public and private sector relevant competencies that reflect the unique values of their organizations and the character of the organization’s environments. This paper suggests a range of distinct public sector competencies including: managing competing interests, managing the political environment, communicating in a political environment, interpersonal motivational skills, adding value for clients, and impact assessment in decision-making. These were very different than those identified as critical for the private sector environment: business acumen, visionary leadership, marketing communication, market acumen, interpersonal communication, client service, and timely and opportunistic decision-making. Private sector competencies reflect private sector environments where goals need to be specifically defined and implemented in a timely manner related to making a profit and surviving in a competitive environment. Public sector competencies are driven by environments exhibiting more complex and unresolvable problems and the need to respond to conflicting publics and serving the public good while surviving in a political environment. Originality/value A key message of this study is that competency frameworks need to be connected to the organization’s unique environments and the values that managers are seeking to achieve. This is particularly important for public organizations that have more complex and changing environments.

scholarly journals How Ordinary Consumers Make Complex Economic Decisions: Financial Literacy and Retirement Readiness

2017 ◽  
Vol 07 (03) ◽  
pp. 1750008 ◽  
Author(s):  
Annamaria Lusardi ◽  
Olivia S. Mitchell
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Retirement Planning ◽  
Financial Knowledge ◽  
Objective Measures ◽  
Causal Relationships ◽  
Economic Decision ◽  
American Life ◽  
Economic Decisions ◽  
Economic Decision Making

This paper explores who is financially literate, whether people accurately perceive their own economic decision-making skills, and where these skills come from. Self-assessed and objective measures of financial literacy can be linked to consumers’ efforts to plan for retirement in the American Life Panel, and causal relationships with retirement planning examined by exploiting information about respondent financial knowledge acquired in school. Results show that those with more advanced financial knowledge are those more likely to be retirement-ready.

Economic-Decision-Making in New Product Development

2020 ◽  
Vol 7 (1) ◽  
pp. 1-27
Author(s):  
Brian J. Galli
Keyword(s):  
Decision Making ◽  
Project Management ◽  
Product Development ◽  
New Product Development ◽  
New Product ◽  
Engineering Management ◽  
Economic Decision ◽  
Engineering Managers ◽  
Economic Decisions ◽  
Economic Decision Making

Economic decisions for a new product can impact any subsequent development, as well as the launching of the product. Furthermore, unsuccessful decision-making can result in missing business opportunities or spending more money on rework. This article investigates economic decision-making in the product development process. It also enhances the understanding of the process, the difficulties involved, and how to improve decisions during new product development. Thus, this study can serve as a reference when support methods for economic decisions are being initiated. Industrial engineers and engineering managers use economic decision-making for new product development. The results of this study indicate that economic decisions are vital to new product development, as they also bring radical changes in the fields of IE/EM/PM. The engineering management practitioner will understand the importance of these topics, their relevance to engineering management, and how engineering managers can integrate these ideas into their operations and project management lifecycle and project management settings. Economic decision-making models in IE/EM/PM should replace traditional non-scientific methods because they are inaccurate and speculative at best. Overall, by using the economic models, the engineering manager is prioritizing on the long-term prospect that the decision will have.

Analysis of Cognitive Machines in Organizations

2010 ◽  
pp. 99-110
Author(s):  
Farley Simon Nobre ◽  
Andrew M. Tobias ◽  
David S. Walker
Keyword(s):  
Decision Making ◽  
Conflict Resolution ◽  
Bounded Rationality ◽  
Work Relationships ◽  
Relative Level ◽  
Economic Decision ◽  
Economic Decision Making ◽  
Decision Making Processes

This chapter introduces analyses of cognitive machines and perspectives about their participation in organizations. Therefore, it connects cognitive machines with the discipline of organizations. The analyses of cognitive machines comprise concepts of bounded rationality, economic decision-making and conflict resolution (Nobre, 2005). From such an analysis, this book advocates that these machines can be used to reduce or to solve intra-individual and group dysfunctional conflicts which arise from decision-making processes in organizations. Therefore, they can provide organizations with higher degrees of cognition, and consequently reduce the relative level of complexity and uncertainty of the environment. This chapter also derives a theorem on the implications of cognitive machines for organizations and the environment. It concludes by presenting perspectives about the work relationships between cognitive machines, their designer and the organization.

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