Sustainability Article: Management Styles and Decision-Making PDF

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Wrocław University of Economics and Business

Adam Sulich, Letycja Sołoducho-Pelc, Marcos Ferasso

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management styles decision-making pro-ecological strategy sustainable development

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This article examines the relationship between management styles and decision-making in the context of pro-ecological strategies. It explores whether management style is a basis for decision-making or an effect of said decisions. The analysis considers organizational culture and its impact on organizational performance, particularly within a sustainable framework.

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sustainability Article Management Styles and Decision-Making: Pro-Ecological Strategy Approach Adam Sulich 1, * , Letycja Sołoducho-Pelc 2, * and Marcos Ferasso 3, * 1 Department of Advanced Research in Management, Wroclaw University of Economics and Bus...

sustainability Article Management Styles and Decision-Making: Pro-Ecological Strategy Approach Adam Sulich 1, * , Letycja Sołoducho-Pelc 2, * and Marcos Ferasso 3, * 1 Department of Advanced Research in Management, Wroclaw University of Economics and Business, 53-345 Wroclaw, Poland 2 Strategic Management Department, Wroclaw University of Economics and Business, 53-345 Wroclaw, Poland 3 Applied Social Sciences Department, Community University of Chapeco Region, Chapeco 89809-900, SC, Brazil * Correspondence: [email protected] (A.S.); [email protected] (L.S.-P.); [email protected] (M.F.) Abstract: Management style and decision-making create an organization’s culture and influence its performance also in the pro-ecological dimension. Therefore, this paper’s originality lies in how it explores the effect of management style to inform our understanding of decision-making when using a sustainable approach. However, the cause-and-effect relations between decisions and management style remain vastly unexplored. The paper’s aim is to explore whether the management style serves as a basis for decision-making or if it is an effect of decisions. This research addresses a research question: is the management style a basis for decision-making or an effect of the decisions in a pro-ecological context? We used a comprehensive literature review by using inductive and deductive approaches to analyze the relations between decision-making and management style. The paper also illustrates how   organizational culture images can inform accounts of business realities influencing organizations’ green strategies. The analogies followed relations between color symbol and guiding metaphor. The Citation: Sulich, A.; Sołoducho-Pelc, L.; Ferasso, M. Management Styles article presents a theoretical discussion on the influence of management style on decision-making in and Decision-Making: Pro-Ecological the organization, based on original literature research in pro-ecological strategy related decisions. As Strategy Approach. Sustainability a result, a decision-making style model is proposed. This nonorthodox approach might open up new 2021, 13, 1604. https://doi.org/ avenues of thought in the field of decision-making, management styles, and pro-ecological strategy. 10.3390/su13041604 Theoretical and managerial implications and directions for future research are also addressed. Academic Editors: Keywords: managerial decision; management metaphors; organizational culture; pro-ecological Andrzej Raszkowski, Gerard J. Lewis strategy; management style; sustainable development and Alessio Ishizaka Received: 5 January 2021 Accepted: 29 January 2021 Published: 3 February 2021 1. Introduction Publisher’s Note: MDPI stays neutral Modern organizations have to survive in a rapidly changing, competitive business with regard to jurisdictional claims in environment, protect the natural environment and act responsibly in society. They published maps and institutional affil- also create, through decisions, their pro-ecological strategies [3–6]. This research consid- iations. ers the following definition of pro-ecological strategy—a “structural strategy aimed at changing the circumstances in which behavioral decisions are made to protect the natural environment, such as the provision of recycling facilities”. Decisions are a fundamental element of every human action , based on mental activities , but in this research, we are dedicated to discussing the relations between Copyright: © 2021 by the authors. Licensee MDPI, Basel, Switzerland. management styles and decision-making in a pro-ecological approach, as opposed to This article is an open access article discussing the decision-making process itself. It is not clear if the specific management distributed under the terms and styles are decision effects or the opposite. However, there is also a research gap identified conditions of the Creative Commons in the literature [11–13], related to the cause-and-effect relations between decisions and Attribution (CC BY) license (https:// organization culture. In the scientific literature, there is an awareness of strategy execution creativecommons.org/licenses/by/ barriers in the decision-making process [14,15], and growing attention has been paid 4.0/). to organizations’ strategies related to ecological aspects [16,17]. The scientific literature’s Sustainability 2021, 13, 1604. https://doi.org/10.3390/su13041604 https://www.mdpi.com/journal/sustainability Sustainability 2021, 13, 1604 2 of 18 dominant view presents the management styles as metaphors [18–21]. An in-depth analysis of organizations, in the context of the relations between management style and decisions, is underdeveloped [22,23]. Therefore, in this research, we address the following research question: is management style a basis for decision-making or an effect of the decisions in a pro- ecological context? This paper’s primary goal is to answer this scientific question, which reflects the presented research gap. In this literature review article, we set future research assumptions by focusing on the analysis of explicit components of the decision-making process —i.e., the choices and the key green decision-makers. Therefore, this paper is an overview of some of the most common management styles [18,23] combined with the decision-making factors from a sustainable development and greening business approach. This paper is a comprehensive literature review and serves the prepare planned research with public ad- ministration entities and organizations dedicated to their management styles and relations between them in the matter of pro-ecological strategies and renewable energy investments. This research contributes to the existing body of literature as follows. We postulate that management style is more fundamental to the process and is not an effect or a result of the decision-making process in the ecological context. We illustrated our research with our own proposed figures and model for a pro-ecological sustainable strategy approach. There are a group of endogenous (internal) organizational factors that influence managers’ decision- making. This approach allows changes in the organization and evolution of management style. Among the most important factors are those creating an organizational culture (with shared views, values, and ideas) related to the organization’s functioning in the changing business environment [26,27]. Another contribution is that our findings proved and allowed us to set future research assumptions in the pro-ecological strategy approach. The article is organized as follows. Firstly, after this introduction, we present a litera- ture review divided into six subsections, each dedicated to one specific aspect. Secondly, we discuss our literature review. Thirdly, we consider our research assumptions to be further discussed. In this section, we also present managerial implications and future research proposals and the limitations of this study. 2. Theoretical Background 2.1. Organization Culture Management is science often associated with business [28,29], economics, psychol- ogy , and philosophy [31,32]. In addition to management, a harmonization of activities within the organization is achieved as a result of acceptance by the participants of the organization of the system of norms and values embedded in its organiza- tional culture relating to shared views, ideology, values, beliefs, and expectations [34,35]. There is no consensus on the organizational culture definition; however, its impact on organizational performance and results are widely recognized , especially when a pro- ecological approach is measured. The internal coherence of this system and the degree of adjusting the management mechanisms used in the organization are determinants of the effectiveness of the organization’s functioning [3,38]. Commanding the correctness of the above observation, we can indicate that the organizational culture creates a kind of “decision algorithm” that gives meaning and direction to actions carried out by the organization [39–41]. Failures in adjusting the management mechanisms to the organizational culture cause the emergence of the phenomenon of dissonance in decision-making processes, which leads to a reduction in the effectiveness of the organization’s functioning [41,42]. Organizational culture is not a time-stable monolith [40,43]. On the contrary, under the influence of changes taking place in the environment, it is subject to changes and transformations. These changes have are slow and related to different strategies. The complexity of transformation processes is deepened by the nature of organizational culture [25,44]. A culture , is a factor stabilizing an organization’s functioning and organizing decision-making processes. On the other hand, this can be a factor inhibiting the process inant in the organization. Changes in the organizational culture and management style are possible but based on a discussion of desirable behaviors, aligned with the adopted profile of a desirable and constructive organizational culture. In the pro-ecologi- cal strategy context, failure and instability occur when there is a dissonance between the Sustainability 2021, 13, 1604 announced strategy and its execution. Employees and customers are very much aware 3 of 18of the need for conservation and sustainability and they lose their trust if such phenomena appear [48,49]. Organizations of introducing changescreate to thean management environment stylefor decision-making [1,23]. However,that impacts there should the beorganiza- a good diagnosis of the organization’s culture to assess which type of behavior is dominant in theas tions themselves and the natural and business environment, which can be recognized organizational organization.culture Changes. in This internal environment, the organizational which culture and supports style management the decision-mak- are possible ingbased but process,on can be described a discussion as an organizational of desirable culturewith behaviors, aligned [23,27]. the There adopted is always profilean of or- a ganizational desirable culture, suchorganizational and constructive as weather or atmosphere culture. In the[51,52], which arestrategy pro-ecological terms often asso- context, ciatedand failure with the organizational instability occur when management styles orbetween there is a dissonance organizational characterstrategy the announced or spirit and. These similarities to the natural environment elements are its execution. Employees and customers are very much aware of the need for conservationjustified due to changes thesustainability and pro-ecologicaland approach they lose induces in the their trust if organizational such phenomena culture appear [54,55]. The changes in [48,49]. the Organizations organization’s culture create an areenvironment important forfor change management, decision-making motivation, that impacts the andorgani- leader- ship (Figure zations 1).and the natural and business environment, which can be recognized themselves Organizational as organizational managers culture are internal. This responsible for balancing environment, which the supports relative stability of the the decision- organizational making process,culture can be [33,57]. described This asbalance guarantees culture an organizational the maintenance of theisorganiza- [23,27]. There always antion’s identity and organizational its constant culture, such astransformation. This balance weather or atmosphere is a condition [51,52], which are forterms keepingoften up with changes associated withinthe theorganizational environment while beingstyles management awareoroforganizational the difficultiescharacter that ariseboth orinspirit the processes. Theseofsimilarities diagnosingtoand transforming the natural organizational environment elementsculture. The are justified due to im- portancethe changes of pro-ecological managers as an organization’s approach induces leaders in theand their influence organizational on organizational culture [54,55]. The changes culture in the organization’s is presented in Figureculture 1. are important for change management, motivation, and leadership (Figure 1). Figure1.1.Management Figure Managementstyle style and and organizational organizational culture culture relations. relations. Source: Source: Authors’ Authors’ elaboration elaboration based based on. on. Then, leadership Organizational is an immanent managers part offor are responsible thebalancing managerial theactivity relativeand, through stability mana- of the or- gerial functions, ganizational managers culture influence [33,57]. This balancetheguarantees organization’s culture [23,46]. the maintenance On organization’s of the the other hand, their management identity styletransformation. and its constant influences the leadership andisculture This balance in thefor a condition organization keeping up[56,59]. with The management style is related to the organizational culture and changes in the environment while being aware of the difficulties that arisetherefore should bothbein a balance between these two organizational characteristics. The interactions the processes of diagnosing and transforming organizational culture. The importance between man- ofagement managers style andorganization’s as an organizational culture leaders dotheir and not indicate influenceone onelement as superior—they organizational culture is are equal.in Figure 1. presented Then, leadership is an immanent part of the managerial activity and, through manage- rial functions, managers influence the organization’s culture [23,46]. On the other hand, their management style influences the leadership and culture in the organization [56,59]. The management style is related to the organizational culture and therefore should be a balance between these two organizational characteristics. The interactions between man- agement style and organizational culture do not indicate one element as superior—they are equal. 2.2. Decision-Making Process Decision-making, either intellectually or practically, is more often a group process than a single person task , since a group makes better decisions due to the bounded rationality effect of one single decision-maker. In 1960, Raiffa and Schlaifer , from Harvard Business School, initiated decision theory. Strategic decision-making is Sustainability 2021, 13, 1604 4 of 18 currently the subject of research in organizational theory and strategic management and has become a widely known and well-developed area in business management. Decisions can be defined as a set of choices between proposed solutions, and can be expressed in the sentence: “When we make choices, we make a decision”. Decision- making is a cognitive process that results in the selection of alternatives and the choice of options or directions of action. In a theoretical approach, decision-making is an intellectual and rational process. Decisions are taken based on selecting criteria or strategies. In business practice, decision-making is a less specific process and is influenced by many factors, such as values, norms, interests, or context. Decision-making is regarded as a concordance test showing the match between subjective factors related to the decision- maker and the expected impact of alternative options or actions. Decision problems require the consideration of many issues and factors and, therefore, they become more and more complicated because of : 1. having complicated, comprehensive structures; 2. relating to multiple objectives; 3. associatation with uncertainty and risk; 4. relation to multiple stakeholders. Making decisions means also making choices and solving problems. In a broader sense, managing an organization concerns setting goals and ways of achieving them and shaping the organization’s future. Conscious and rational, as opposed to random, choices are made in the management decision-making process. Making choices should be preceded by making the right decision. Such a decision is based on relevant information and brings the expected results. The decision is a process, not a matter of the moment. The decision itself is important, but most people remember the result of the decision. In the decision-making literature, the mechanisms are not precisely defined [1,67,68]. The judgment of the decision-making process is distorted by the influence of intelligence, intuition, common sense, and luck. Organizations use decision trees, influence diagrams, simulation models, and alternative forms of decision support to deal with the complexity of decision-making problems and help make a decision. Additionally, the need to integrate management with psychological aspects of decision-making is currently underlined. Decision-making takes place when there are alternative choices that could be made. One solution is selecting a decision from several potential variants. The choice of a variant should consider various factors, such as an achievement of the organization’s goals, re- sources, regulations in force, planned effects, and expected benefits. The dilemma between priority of decision-making process and management style is comprehensively presented in Figure 2. This figure shows the decision-making chain as a process of decision-making and its effects on making a decision. At the exit, i.e., before making a decision, internal factors (related to the organization) and external factors (determined by the environment) were taken into account [69,70]. In turn, at the exit—after making a decision—a solution is chosen and the organization can assess the effects (positive or negative). Figure 3 shows some critical steps in the decision-making process as a cycle (not a chain, as in Figure 2). Decision-making is usually preceded by decision analysis. This analysis step allows us to better understand the problem. The decision-making process precedes the collection, selection, and analysis of information. As a result, the decision-maker should obtain knowledge that determines the decision-making process. This provides a framework that will help clarify and formulate the judgment. The starting point is the judgment of the situation or problem. Sustainability 2021, 13, 1604 5 of 18 Sustainability 2021, 13, x FOR PEER REVIEW 5 of 19 Figure 2. The decision-making chain. Source: Authors’ elaboration. Figure 3 shows some critical steps in the decision-making process as a cycle (not a chain, as in Figure 2). Decision-making is usually preceded by decision analysis. This analysis step allows us to better understand the problem. The decision-making pro- cess precedes the collection, selection, and analysis of information. As a result, the deci- sion-maker should obtain knowledge that determines the decision-making process. This provides a framework Figure that will helpchain. 2. The decision-making clarify and formulate Source: the judgment. The starting Authors’ elaboration. Figure 2. The decision-making chain. Source: Authors’ elaboration. point is the judgment of the situation or problem. Figure 3 shows some critical steps in the decision-making process as a cycle (not a chain, as in Figure 2). Decision-making is usually preceded by decision analysis. This analysis step allows us to better understand the problem. The decision-making pro- cess precedes the collection, selection, and analysis of information. As a result, the deci- sion-maker should obtain knowledge that determines the decision-making process. This provides a framework that will help clarify and formulate the judgment. The starting point is the judgment of the situation or problem. Figure3.3.The Figure Thecycle cycleofofcrucial crucialsteps stepsininthe thedecision-making decision-makingprocess. process.Source: Source:Authors’ Authors’elaboration. elaboration. Bearing in mind Bearingthe assumption in mind the that management assumption style influences that management styledecision-making, influences decision-making, we proposedwe to proposed expand the stages of the decision-making process with to expand the stages of the decision-making process the management with the management style. It is a nonorthodox perspective on style. It is a nonorthodox the decision-making perspective process. We are on the decision-making guided process. Webyare theguided by the assumption that the management assumption style would have that the management style awould crucialhave influence on influence a crucial decision-making on decision-making in the contextinofthe pro-ecological strategies (thisstrategies context of pro-ecological element is elaborated (this elementinis Section 2.6).in Section 2.6). elaborated Figure 3. The cycle of crucial steps in the decision-making process. Source: Authors’ elaboration. 2.3. Manager 2.3. as a Manager Decision-Makeras a Decision-Maker When management When management Bearing is mind theisassumption in considered considered through anthat through an entrepreneurial management entrepreneurial and managerial stylemanagerial and influences decision decision-making, deci- sion logic ,logic we , its practical itsproposed practical to expand aspects aspects arethe arevisible stages more more visible of the [5,72]. At theAt decision-making [5,72]. the process present, present, environmental with environmental protec- the management tion style. is Itan is aimportant nonorthodox topic for a business perspective on practice, the which decision-making protection is an important topic for a business practice, which needs to formulate a pro- needs to formulate process. We area pro-ecological guided by the strategy assumption ecological strategy and decision-making that the management and decision-making..styleDecision-making would have a at Decision-making at the crucial highest influence the highest organizational on decision-making organiza- level has in the tional level has become difficult contextdifficult become to manage of pro-ecological to manage due to strategies the due to the complexity (thiscomplexity of the changes element is elaborated of the changes of an in Section organization’s of an2.6). organization’s face [74,75] face [74,75]andand duedueto time pressures to time.. pressures The manager The manageruses logic usesand intuition logic and to control the Manager 2.3. intuition to controlprocess of asthinking the process and acting. a Decision-Maker of thinking A manager’s and acting. A manager’seffectiveness depends effectiveness on the techniques depends and skills on the techniques and related When skills to strategic related management thinking toisstrategic considered. thinking A. through manager is conceived anAentrepreneurial manager as a “multiplied is conceived and as managerial man”, deci- a “multiplied whoman”, sion acts at logicwho the junction actspractical , its of two at the junction worlds: aspects are of two certainty more worlds: and uncertainty visiblecertainty [5,72]. Atand [9,77]. the uncertainty present, environmental [9,77]. Management protection styles create is an important topicplans for aand styles practice, business of controlwhich and implementation needs to formulate (sequential a pro- plan Management and stylesglobal create or comprehensive plans and styles plan) of control.andManager’s thinking implementation cycles (sequentialinclude mental ecological strategy and decision-making. Decision-making at the highest organiza- plan and globalactivities related to problem-solving, decision-making, and strategic includeofthinking, and these tionalorlevel comprehensive has becomeplan). to difficult Manager’s manage due thinking to thecycles complexity mental the changes of an activities activities related are independent. to problem-solving, The factor that initiates a manager’s thinking is problem organization’s face [74,75]decision-making, and due to timeand strategic pressures thinking,. and these The manager uses logic and identification. Then, the manager’s thinking considers goals, plans, and action strategies. intuition to control the process of thinking and acting. A manager’s effectiveness depends Decision-making is an intellectual and strategical process that affects people at on the techniques and skills related to strategic thinking. A manager is conceived as different levels of management. In an organization, this activity requires the decision-maker a “multiplied man”, who acts at the junction of two worlds: certainty and uncertainty to have appropriate power and use of knowledge, skills, and competencies (including [9,77]. human cognition, emotions, and social behavior). The decision-making process must Management styles create plans and styles of control and implementation (sequential take into account various factors and conditions that shape this process. A manager’s plan and global or comprehensive plan). Manager’s thinking cycles include mental activities related to problem-solving, decision-making, and strategic thinking, and these Sustainability 2021, 13, 1604 6 of 18 decision is conditioned by the awareness of the necessity to make choices and the assumed effects of the decisions. The benefits of a decision can be considered in various ways, most often from the or- ganization’s perspective and other stakeholder groups [81–83]. Making a decision requires a comprehensive view of the organization and its environment. It is not only economic criteria that are important in this process. Ethics, morality, social responsibility, and, more recently, sustainable development are factors that can shape the decision-making process [16,80]. When making a decision, one should select an action variant. There is a need to consider the effects and benefits assessed from the perspective of the organization’s goals and development in the long term. The decision-maker should be responsible for the consequences of the decision from the point of view of different areas and different stakeholders. 2.4. Management Styles Over the years, organizations’ management styles have changed dynamically. Or- ganizations had to adapt employment conditions and the atmosphere of created rela- tions [17,85,86] to societies’ needs as a socio-economic environment, which is a resource of employees and customers. The work atmosphere and conditions influence orga- nizational effectiveness and increase the company’s competitiveness in the market. This translates into better financial results and enhances the organization’s prestige and image. We adopted Laloux’s concept , which is a relatively new concept, and its extensive use in analyzing the culture of contemporary organizations. Each management style has specific patterns of action, behavior, rituals, and shared values. The essential features of each management style are presented as a description and critical breakthroughs in Table 1. The used metaphors are presented in colors, from a primary organization (red) to the most developed (teal). These are represented by a range of basic colors to more complicated ones obtained by modifications to very basic colors. For example, orange is a result of the mix between the two basic colors red and yellow. There is a strong relation between color metaphor and guiding metaphor. The red organization is a wolf pack, based on the will of the leader. The resistance or negation in the execution of such will leads to “bloody” revenge. This color metaphor then represents not only the organization but also organizational culture. There are clear differences between organizations described by the colors in their general connection to the execution of “brown” and green (pro- ecological) strategies. The indicated colors of strategies in Table 1 is based on the division between brown (based on the linear approach and resource extensive, based on fossil fuel consumption) and green economies, where green is a synonym for sustainable, ecological, and pro-environmental [55,90]. As presented, some organizations have the option to change their management styles, and some do not. The potential change depends on internal and external factors and the need for change declared by the organization, and self-awareness about the possibility of change to be greener and pro-ecological. We can indicate several factors influencing the possibility of changing the management style. The first is the specificity of the activity or in- dustry. This has a strong influence on the “color” or metaphor of the organization. As mentioned in the current examples, some industries have management styles other than the implemented one. Reluctance to change management style may result for various reasons. The most important thing seems to be not having to make any changes: “We do not change because we do not have to”. Such organizations implement a management style that matches their needs, goals, and strategies. It is equally essential that the management style has proven itself in the history of its existence, allowing it to survive and develop. In this type of organization, changes occurring in the environment are of no great importance to them. It can be assumed that even the changes taking place in the world have limited impacts on the organization’s management style. The style of management translates Sustainability 2021, 13, 1604 7 of 18 into the strategy of the organization. The approach to environmental strategy can be reac- tive or proactive. Red and orange styles determine the choice of a reactive and brown strategy, where companies act minimally, resulting from external pressure to formulate an environmental strategy [15,41]. Green and teal management styles remain in opposition to the brown strategy. They represent an active, open approach to green strategy, which is a result of the organization’s priorities, values, and openness to new ideas and conditions for sustainable development. Table 1. Management styles according to color taxonomy. Management Guiding Key Current Decision Description Strategies Style Color Metaphor Breakthroughs Examples Metaphor Constant exercise of power by the chief to Division of labor; Organized keep foot soldiers in Command crime; Red Wolf pack. Will. line. Thrives in authority; Street gangs; chaotic environ- Despotism. Tribal militias. ments. Military; Highly formal roles Formal roles Most within a hierarchical (stable and government pyramid. Top-down scalable organizations Brown Pattern/Scheme; Amber command and Army. hierarchies); (public school No discussion. control. The future is Stable and systems, police the repetition of replicable departments); the past. processes. Religious organizations. The goal is to beat the competition; achieve Multinational profit and growth. Rigid Innovation; companies; Management by Procedures; Orange Machine. Accountability; Investment objectives (command Machine Oil; Meritocracy. banks; and control over Consultations. Charter schools. what, freedom over how). Focus on culture and The business is Empowerment; empowerment to known for Discussion; Egalitarian boost employee idealistic Democratic Green Family. management; motivation. practices decision; Stakeholder Stakeholders as a (Starbucks, Consensus. model. primary purpose. Zappos). Green Self-management replaces the Self- hierarchical pyramid. management; A few Organizations are Living Independence; Teal Wholeness; pioneering seen as living entities, organism. Mindfulness. Evolutionary organizations. oriented toward purpose. realizing their potentials. Source: Authors’ elaboration based on [20,33]. 2.5. Management Styles as Differentiating Variables of Managerial Decision According to the research of Rowe and Mason, the style of decision-making has a cognitive character. It refers to how an individual approaches a problem and uses the information to make a decision. According to the research of Simon , intuition and emotions play an essential role in the decisions of a manager, and this was also proved in other research papers [94,95]. These results indicated a new direction of research, where Sustainability 2021,13, Sustainability2021, 13,1604 x FOR PEER REVIEW 8 8ofof1819 psychologicalfactors, psychological factors, not related related to toknowledge knowledgeand andprofessional professional preparation, preparation, playplayan an im- portant role important roleininthe thedecision-making decision-making process process [55,93]. The intuitive intuitive thinking thinkingandandreflexive reflexive approachofofdecision-makers approach decision-makershave haveaasignificant significantinfluence influenceonondecision-making. decision-making.AnotherAnother featureisisCore feature CoreSelf-Evaluations Self-Evaluations(CSEs), (CSEs),which whichshapes shapesthe thedecision-making decision-makingprocess.process.As As indicatedby indicated by, ,this thisfeature’s feature’slevel levelisisessential. essential.CSE CSEisisformed formedatatan anaverage averagelevel levelthat that allowsavoiding allows avoidingthe thetrap trapofofoverconfidence overconfidenceand andaffects affectsthetheachievement achievementofofbetterbetterresults. results. Decision-makers who Decision-makers who make quick quickdecisions decisionsuseusemuch much information information andand come comeup with up many with alternative many alternativesolutions. TheThe solutions. pace of decision-making pace of decision-making is influenced is influenced bybythe theability abilityto tointegrate integrate strategic strategic decisions decisions andand tactical tactical plans plans.. MakingMaking a strategic a strategic decision decision in a in a chang- changing, turbulent ing, turbulent environment environment is difficult is difficult because because the changes the changes are radical, are radical, and and it is it is diffi- difficult to estimate cult to estimate thethe course course ofofchanges. changes.The Theway wayto to avoid avoid making the wrong wrongdecision decisionisis through throughthethe“wait “waitand andsee” see”strategy, strategy,which whichmeans meanswaiting waitingfor forthe thesituation situationtotounfold unfoldoror following followingother otherdecision-makers decision-makers(benchmarking) (benchmarking)..InInFigure Figure4,4,wewepresent presentourourresearch research results resultson onthe therelations relationsbetween betweenthe themanagement managementstyle styleandanddecision. decision. Figure4.4.Management Figure Managementstyle styleand anddecision-making decision-makingoptions. options.Source: Source:Authors’ Authors’elaboration. elaboration. The Theconducted conductedtheoretical theoreticalstudy shows study showsthatthat management management stylestyle can influence decisions can influence deci- (option A, Figure 4). The reverse situation is also possible when decision-making sions (option A, Figure 4). The reverse situation is also possible when decision-making shapes the management shapes style (option the management B, Figure style (option 4). More B, Figure 4). often, we found More often, a situation we found where a situation the where management the managementstyle style shapes decision-making, shapes which which decision-making, can be can seenbeinseen organizations such as such in organizations red and amber as red andtaxonomies. These organizations amber taxonomies. can be defined These organizations can beasdefined the opposite as theofopposite a participa- of a tory management style. We deal with “hard-handed rule” prescriptive, unquestionable, participatory management style. We deal with “hard-handed rule” prescriptive, unques- and unchanging tionable, management and unchanging styles in such management organizations. styles in such organizations. 2.6. The Decision-Making Modalities in a Pro-Ecological Context 2.6. The Decision-Making Modalities in a Pro-Ecological Context Relating the decision-making to the strategy, one can assume a decision-making Relating the decision-making to the strategy, one can assume a decision-making strategy. As indicated in Eisenhardt’s research, in the modern approach to strategy, strategy. As indicated in Eisenhardt’s research, in the modern approach to strategy, decision-makers ask themselves the question: Where are we going? They also ask the equally decision-makers ask themselves the question: Where are we going? They also ask the important question: How do we want to get there?. Strategic decisions are connected equally important question: How do we want to get there?. Strategic decisions are con- to top management. Broadly understood, strategic decisions in terms of scale and impact nected are to top critical management. to the organization Broadly over theunderstood, long term. strategic Preciselydecisions because of in their termsimportance, of scale and impact are critical to the organization strategic decisions are related to the strategy.over the long term. Precisely because of their im- portance, strategic decisions are related to the strategy. Strategic decision-making is a particular type of decision-making in uncertainty. Strategic decision-making Such decision-making is a particular involves formulating type goals, of decision-making identifying the problem, in generating uncertainty. Such decision-making involves formulating goals, identifying alternative solutions, evaluating, and selecting. The organization’s success strategy the problem, gener- ating alternative solutions, evaluating, and selecting. The emerges from the decision-making process, where collective intuition, avoiding political organization’s success strategy issues, emerges shaping from the decision-making constructive process, where conflicts, and maintaining momentumcollective intuition, avoiding in decision-making is political issues, shaping constructive conflicts, and maintaining momentum of strategic importance. Making a strategic decision is related to decision effectiveness in decision- and makinginismaking success of strategic importance. a decision. Making Referringa strategic to these decision is related studies’ results, thetoanswer decisiontoeffec- the tiveness and success in making a decision. Referring to these question “how?” and the associated manager’s decision-making process shapes the organi- studies’ results, the answer to the question “how?” and the associated manager’s decision-making zation. In a strategic decision, decision-making is essential, but the implementation process ofshapes the organization a strategic. In decision is equally a strategicItdecision, important. decision-making can be assumed is essential, that the problems but so are not the implementation much about making of a strategic decision is equally important. It can be decision, but about its implementation [66,105]. assumed that the problems are not managers Even though so much about play making multiplearoles strategic decision, in business but about there operations, its implementation are concerns [66,105]. with top executives’ roles to integrate internal and external challenges in the decision of Even strategy though managers formation [106,107]. play multipletoroles According in business Andrews, operations, a strategy there aredecision- is a “rational concerns with top making executives’ process”, where roles firmsto are integrate lookinginternal and external for a possibility challenges to adjust in the to internal anddecision externalof strategyand contexts formation conditions[106,107]. According to Andrews,. “Strategy-making a strategyisisa multi-stage in organizations a “rational decision- process Sustainability 2021, 13, 1604 9 of 18 involving numerous individual decisions that are influenced by both internal and external considerations and which involve contested positions between the key actors involved. This is no less evident in the field of corporate greening as in other areas of organizational decision-making”. The environmental strategy defines the organization’s activities that influence the environment and points to environmentally friendly practices [25,108,109]. In this strategy, companies specify how they manage relations with the natural environ- ment , and they adopt strategic attitudes and general environmental strategies. The environmental strategy should be adapted to the conditions of the organization’s internal and external environments. Researchers indicate many factors initiating environ- mental initiatives, resulting from external pre

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