Factors Affecting the Decision-Making Styles of Branch Managers in Private Sector Banks

Abstract

, Amidst a global recession, private banks grapple with challenges. This study has aimed to identify decision-making styles of 72 branch managers in five private sector banks of Sri Lanka, assessing the impact of perceived stress, self-efficacy, and heuristics. Results (using Multinomial logistic regression and correlation analyses), reveal a predominant rational decision-making style. The gender of the individual and the level of experience of managers in the banking sector, indicates a significant impact on the spontaneous decision-making style. Branch managers’ perceived stress positively correlates with dependent, avoidant, and spontaneous styles (p < 0.01). It negatively correlates with rational decision-making style. Self-efficacy significantly affects all decision-making styles (p < 0.05), excluding the rational style of decision-making. Availability heuristic significantly affects rational style (p < 0.05). Identifying decision-making styles aids tailored training and enhances strategic decision-making in organizations during challenging economic times.