Abstract
Strategic and managemerial decision-making in an organization can have a crucial effect for the whole entity; however, it rarely involves the organization’s employees evenly at the different organizational levels. The result is—what is addressed in this paper as—the ostracism risk, namely the risk accruing from the lack of satisfaction of underprivileged employees’ groups during the decision-making process. The ostracism risk could jeopardize the organization’s integrity and therefore requires effective treatment. This paper aims at verifying a conceptual approach, which is proposed as a methodology for assessing the probability of organizational cooperation when deciding under risk, thus minimizing ostracism risk. The proposed approach is based on organizational and human resources management (HRM) theories and is contextualized for construction through the understanding of systems theory. The proposed methodology presents a potential modelling via game theory of a medium-sized construction company that is organized according to Mintzberg’s organizational model. The utilization of the bounded Pareto distribution is presented as an approach of the model’s probabilistic processing, and the potential for estimating the probabilities to adopt a favorable cooperational decision is verified. The paper concludes with the reference to the next steps required for the methodology’s validation and further improvement.
Highlights
Positive or negative outcomes of decisions regarding organizational structure, function, and coordination, are affiliated with the so-called external risk, which accrues from the decisions themselves and is distributed among the personnel organizational components, influencing them [1]
Considering the insurmountable difficulties in collecting information in the second category and given the goal of this research, which is the initial conceptualization and verification of a methodological approach to minimize ostracism risk, it was decided not to adopt an approach of analysis based on the acquirement and processing of empirical data but, instead, consider and model an exemplar reference organization by following the first part of the
“pattern marching” technique that qualitatively captures institutional logics—namely the conception of an “ideal type” [31]. This approach allows the description and modelling of an exemplar reference organization whose attributes correspond to the theoretical considerations in Section 2 and at the same time are informed by the one-dimensional view of power in [32] and the considerations on properly modelling the dimensions of multi-agent organizations in [33]
Summary
Positive or negative outcomes of decisions regarding organizational structure, function, and coordination (e.g., corporate mergers), are affiliated with the so-called external risk, which accrues from the decisions themselves and is distributed among the personnel organizational components, influencing them [1]. Can be or even more critical than the external; “ostracism risk” is defined in this paper as the risk accruing from the lack of satisfaction of possibly underprivileged constituent personnel components (individuals or groups) during the process of the decision-making. Even if the external risk is critically maximized, effective cooperation among the personnel components of the decision-making team could minimize the ostracism risk, since the responsibility for the taken course of action and any positive or negative outcomes is more smoothly and evenly diffused [3]. Wach et al based their research on the theoretical concept of strategic consensus, which according to them, describes a group decision-making process and participants’ belief that the outcome (i.e., decision) is right [4]
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