Democracy: Maybe Less Is More

In any functional democratic system, some decisions are left to experts (who may be overseen indirectly by the people), while others are directly in the hands of the people. How to allocate these decision rights is a persistent problem in democratic theory. This chapter argues that competence is a crucial criterion in deciding the question of who decides. Further, part of the solution to the persistent pathologies of democracy is to reduce the sphere of politics and also the sphere of political control. Certain issues, such as trade policy, immigration policy, central banking interest rates, who serves as district attorney or judge, and various kinds of regulation, should be kept out of democracy’s hands—for everybody’s own good.

Analytical target cascading for multi-level supply chain decisions in cloud perspective

PurposeThe purpose of this paper is to adopt a three-stage cloud-based management system for optimizing greenhouse gases (GHG) emission and marketing decisions with supplier selection and product family design in a multi-level supply chain with multiple suppliers, one single manufacturer and multiple retailers.Design/methodology/approachThe manufacturer purchases optional components of a certain functionality from his alternative suppliers and customizes a set of platform products for retailers in different independent market segments. To tackle the studied problem, a hierarchical analytical target cascading (ATC) model is proposed, Jaya algorithm is applied and supplier selection and product family design are implemented in its encoding procedure.FindingsA case study is used to verify the effectiveness of the ATC model in solving the optimization problem and the corresponding algorithm. It has shown that the ATC model can not only obtain close optimization results as a central optimization method but also maintain the autonomous decision rights of different supply chain members.Originality/valueThis paper first develops a three-stage cloud-based management system to optimize GHG emission, marketing decisions, supplier selection and product family design in a multi-level supply chain. Then, the ATC model is proposed to obtain the close optimization results as central optimization method and also maintain the autonomous decision rights of different supply chain members.

Comments: Priorities for Post-COVID Business

Insights about businesses’ priorities are often gleaned from surveys and studies of CEOs and executives. Today, keeping your finger on the pulse of change requires diligence. Not that long ago, tuning into an annual report provided an indicator of a company’s plans for the next year and some years ahead. That won’t cut it anymore. In a September report, McKinsey & Company highlighted “priorities for CEOs in the next normal” based on surveys and studies. In general, the results were not surprising, but a deeper look into the “5 priorities” listed below showed the complexity and significant changes that leaders and all personnel must tackle. It’s a full plate for anyone … and for all of us. 1. The embedding of sustainability in corporate strategy - is required to achieve an organization-wide focus. McKinsey advises to design the work according to specific sustainability topics instead of an overall view. Focus on each topic the company is prioritizing (e.g., hydrogen, decarbonization). Three models were identified: 1. Develop a large central team with few business-unit resources. The central team maintains decision rights and coordinates with individual business units, 2. A lean central team holds decision rights and works with many business-unit resources, and 3. A central team deploys agile teams to business units. 2. Capturing the power of the cloud - requires funding to support the investments needed and to put HR and compensation in place to attract and retain the talent. The oil and gas industry was rated No. 2 behind high tech in terms of gaining value from the cloud: EBITA ranging from $80 to $160 billion. 3. Developing talent - relies on HR leaders, who identified agility, mapping talent to value, and simplifying the organization as top priorities. A more flexible and responsive model will help meet the demographic shift to millennials becoming the dominant group in the workforce. 4. The faster speed of change - seen during the first wave of the COVID-19 pandemic must now be maintained. When businesses’ backs were up against the walls, rapid shifts to remote work and faster decision making led to success in dealing with the disruption for many. To remain resilient, businesses should maintain this sped-up approach, shedding “business as usual” for good. 5. People seeking meaning in their lives and work - refers to stakeholders, be it society, shareholders, or employees. The most recent Edelman Trust Barometer (January 2020, pre-COVID) included a survey of 34,000 people, of which 56% believed that capitalism was doing more harm than good globally, with majorities in 22 of the 28 markets surveyed. Business leaders should demonstrate that they see their mission as serving not only shareholders but also customers, suppliers, workers, and communities. You’ve seen similar lists in various forms, but mindfully applying them to your own work is where the value lies, and it contributes to the technical and business advances because we are all stakeholders as individuals and workers. Moving forward requires leaders, but without our commitment, the progress lags or stalls out.

Factors Affecting Hospital Network Management in the Social Security Organization of Iran

Background: Hospitals are considered the most important consumer units in the health system. Based on the effect of the hospital network in optimal and efficient hospital management, this study aimed to identify and explain the role of factors influencing hospital network management in the Iranian Social Security Organization (ISSO). Methods: This study was conducted by a mixed method in 2018. First, variables and factors affecting the management of hospital networks were extracted from the literature review and through interviews with 15 experts, and a questionnaire with 40 questions was developed. Then, it was distributed among 448 experts in the healthcare section of the ISSO all over the country, and 405 questionnaires were completed and collected. Data were analyzed via exploratory and confirmatory factor analysis and structural equations using SPSS23 software and AMOS24 software. The validity of the questionnaire was determined via expert judgment (CVRs = 0.40) and reliability was estimated by Cronbach's alpha coefficient (α = 0.87). Results: Based on the confirmatory factor analysis, financing, monitoring and evaluation, accountability, strategic planning, and decision rights were identified as key factors affecting hospital network management. Financing with standard coefficients of 0.83 had the highest and decision rights with standard coefficients of 0.44 had the lowest effect on hospital network management of the ISSO. Conclusion: To efficient hospital network management of the ISSO, while emphasizing all identified factors, special attention should be paid to financing and modifying the method of budgeting and using suitable monitoring and evaluation mechanisms.

Towards a better understanding on mitigating algorithm aversion in forecasting: an experimental study

Forecasts serve as the basis for a wide range of managerial decisions. With the potential of new data sources and new techniques for data analysis, human forecasters are increasingly interacting with algorithms. Although algorithms can show better forecasting performance than humans, forecasters do not always accept these algorithms and instead show aversion to them. Algorithm aversion has become a widely known phenomenon. Drawing on the seminal study of Dietvorst et al. (J Exp Psychol Gen 144(1):114–126, 2015), we extend the evidence on algorithm aversion by introducing three environmental variables from the management accounting literature. We argue that time pressure, “do your best” goals, and forecasters’ data input decision rights on the algorithms input mitigate algorithm aversion. To test our hypotheses, we conducted an experimental study with 1,840 participants overall. We found support for our hypothesis that time pressure mitigates algorithm aversion. We found evidence that the mitigation effect is based on forecasters’ loss of confidence in their own forecast when they are under time pressure. We found no support for our hypothesis on “do your best” goals or forecasters’ data input decision rights.

Information Technology Governance of Japanese Companies; An Empirical Study

IT has become an essential part of the organization. IT governance specifies the decision rights and accountability framework to encourage desirable behaviour in using IT. Concepts of IT governance has expanded to improve IT-business alignment under today’s business environment and prospects. This paper contributes to empirically knowledge of IT governance practices in Japanese organizations based on survey data gathered from 101 corporations, including large, medium, and small companies. The findings of the ordinal regression analyses in this study indicate that IT governance is associated with Strategic Alignment, Performance Measurement and Value Delivery, while Risk Management and Resource Management have positive but no significance association with IT governance.

Farmer preferences regarding durum wheat contracts in Italy: a discrete choice experiment

PurposeThis study aims to investigate farmer preferences regarding sales contracts for durum wheat in Italy.Design/methodology/approachThe authors consider that contracts are formed by an organisational entity that is in charge of transferring decision and property rights based on reductions in transaction costs. The empirical analysis presents a discrete choice experiment with three distinct models that was performed by a survey of 160 wheat farmers in southern Italy.FindingsThe results show that contractual terms affect the probability of both a contract being signed and allocating decision rights due to their effects on price, technology and quality.Practical implicationsThis study provides some insights on which contractual attributes could support the wider use of contracts along the durum wheat supply chain in Italy.Originality/valueThe paper reveals that contracts are relevant not only to the coordination of agri-food chains because of price stabilisation but also due to their impacts on technology and quality strategies.