Choose a DB topic that you have written about this term (in this class) that you would like to further explore and write a 900–1,000 word paper on the topic. The paper will have 5 scholarly articles, which have been published within the previous 4 years; each of the articles must be a narrative on the results of a study/research. The paper is not a restatement of the original DB post, but is a review of all 5 of the scholarly articles.
Managerial Decision Making
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Introduction to the concept
One of the most important functions of managers is to make decisions that directly impact organizational functioning. Decision making involves examining possible solutions or alternatives to specific situations and using appropriate analysis methods to select the most effective alternative. Strategic decision making ensures that organizations gain and maintain competitive advantage and also makes it easier to survive challenges and threats in both the internal and external business environment. The significance of decision making in organizational performance makes it necessary for managers to possess adequate skills, knowledge, and competencies (Alhawamdeh & Alsmairat, 2019). The purpose of this paper is to review five research articles that examined managerial decision making by presenting the similarities and differences between the research findings.
What were the differences and similarities in the research done regarding the concept?
The research on managerial decision making mainly focuses on factors that impact decision making and the type of knowledge required to make effective decisions. The main similarity in the selected research articles is that they all view decision making as an important process and emphasize gathering sufficient information before making any decisions. For instance, Tarka (2018) describes the importance of using information obtained through marketing research to make decisions while Okechukwu et al. (2018) explained that managers should always seek more information to reduce uncertainty in decision making. Xiao et al. (2017) described the use of technological tools to gather information required for decision making, while Hallo et al. (2020) identified the importance of seeking the right information to ensure that managers only focus on key information when making decisions.
However, the main difference in the research regarding managerial decision making is that the studies focused on different parts of decision making including factors that influence effective decision making, impacts of decision making on the organization, and decision-making at different management levels.
What was unique in each article regarding the author’s approach to the concept?
Each article was unique in that they all utilized a different approach to decision making. Okechukwu et al. (2018) focused on how managers make decisions in uncertain environments and how this impacts organizational performance. The external business environment is always changing hence it may be difficult to managers to effectively determine possible outcomes for every alternative. Tarka (2018) examined decision making by seeking the perceptions and views that managers had regarding the importance of marketing research in decision making. The study regarded marketing research as a significant source of information for decision making. Xiao et al. (2017) used a unique approach to examine management decision-making by focusing on the use of technology including tablets and mobile applications to influence decision-making among managers. Hallo et al. (2020) examined decision making by considering the complex and ambiguous business environment and the overload of information which makes it difficult for managers to make decisions. The study considered how managers approach decision-making in complex situations. Marchisotti et al. (2018) considered decision making among first-line managers including how organizational culture impacts decision-making at this level.
What are the similarities in the research findings?
The common theme from the research findings in the selected studies is that managers should effectively use information when making decisions. Okechukwu et al. (2018) used a descriptive design to examine decision making during uncertain situations and determined that managers use market research to influence decision making regarding the types and characteristics of products and services to develop. Tarka (2018) and Hallo et al. (2020) both determined that information processing for managers is important since it promotes better decisions. Tarka (2018) and Hallo et al. (2020) also identified characteristics that managers have that may enhance decision making including analytical thinking and self-confidence. Xiao et al. (2017) determined that managers use various forms of technology especially the internet to access information that supports decision making. Marchisotti et al. (2018) interviewed front-line managers and determined that these managers are mostly rational because decision-making at this level is heavily influenced by the information they obtain from within and outside the organizations.
What are the differences in the research findings?
Despite the similarity, there are several differences in the findings obtained by the studies. The differences are mainly based on the concept of rational decision making. Marchisotti et al. (2018) determined that most managers tend to be rational decision makers since they use supporting tools and follow the rules and procedures for effective decision-making. However, Hallo et al. (2020), determined that being rational is not always possible especially in complex situations where there are too many factors to consider before making decisions. Tarka (2018) determined that irrational decision making is more common among managers and can be attributed to information overloading and lack of analytical skills. Okechukwu et al. (2018), unlike the other studies, determined that managers can make rational decisions in uncertain situations and such decisions may have a positive impact on the performance of the organization.
Conclusion
The selected research articles focused on different aspects of decision making among managers although they all identified the importance of seeking information before making any decisions. In addition, the studies explained the importance of rational decision making although managers cannot always be rational due to personal limitations and information overload. Uncertainties in the external business environment make it difficult for managers to be sure about their decisions although using the appropriate information increases the likelihood of making good decisions. Managers should possess adequate analytical skills to determine relevant information from the internal organizational environment and the external business environment to make decisions that enhance organizational performance.
References
Alhawamdeh, H., & Alsmairat, M. (2019). STRATEGIC DECISION MAKING AND ORGANIZATION PERFORMANCE: A LITERATURE REVIEW. International Review of Management and Marketing, 9(4), 95-99. https://doi.org/10.32479/irmm.8161
Hallo, L., Nguyen, T., Gorod, A., & Tran, P. (2020). Effectiveness of Leadership Decision-Making in Complex Systems. Systems, 8(1), 5. https://doi.org/10.3390/systems8010005
Marchisotti, G., Domingos, M., & Almeida, R. (2018). DECISION-MAKING AT THE FIRST MANAGEMENT LEVEL: THE INTERFERENCE OF THE ORGANIZATIONAL CULTURE. Human and Social Management, 19(3). https://doi.org/10.1590/1678-6971/eramr180106
Okechukwu, E. U., Okoronkwo, B. O., & Eze, J.O., (2018). Decision Making under Uncertainty and Organizational Performance: An Impact Assessment among Manufacturing Firms in South East, Nigeria. International Journal of Academic Research in Economics and Management Sciences, 7(3), 137–148.
Tarka, P. (2018). The views and perceptions of managers on the role of marketing research in decision making. International Journal of Market Research, 60(1), 67-87. https://doi.org/10.1177/1470785317744854
Xiao, M., Meredith, R., & Gao, S. (2017). An Exploratory Study Investigating How and Why Managers Use Tablets to Support Managerial Decision-Making. Australasian Journal of Information Systems, 21. https://doi.org/10.3127/ajis.v21i0.1706