Managerial Decisions Research Articles

LEVERAGING INTERNAL AUDITING TO ENHANCE STRATEGIC DECISION-MAKING AND BOOST MANAGEMENT EFFICIENCY, NIGERIAN BREWERIES ABA ABIA STATE

This research deals with leveraging internal Auditing to enhance strategic decision-making and boost management efficiency. It aims to discover the role of internal audit in organizational management decision-making. It is survey research. Data were collected from primary and secondary sources, including questionnaires, personal observations, textbooks, journals, and the Internet. A sample of 92 was collected by random sample method. Three hypotheses were formulated and tested using Z-test statistics, while questionnaires were analyzed using simple percentages. We discovered among other things that internal audit assists management in managerial decisions. Were commended among other things that the auditors be trained in forensic accounting to enable them to be more effective in their duties.

CORPORATE DIVIDEND DECISION AND FIRM VALUE IN NIGERIA

Corporate dividend decisions play a significant role in managerial decisions, and is often considered as the fulcrum of financial management decisions. While making these decisions, corporate finance is single-minded about maximizing the value of the firm. But the raging issue has been the lack of consensus on the effect of dividend policy on firm. This study therefore undertakes a comprehensive review of dividend policy theories and empirical studies on dividend policy in relation to firm value, with particular focus on Nigeria. The paper adopts the exploratory research approach using secondary data sources involving extensive review of relevant articles, theoretical and empirical studies, as well as other relevant materials. The paper established that, despite the raging theoretical controversies and contradictions of past empirical findings, there is unanimity among many researchers that corporate dividend decisions exert significant influence on firm value- a position which validates the arguments in favour of the relevance of dividends policy in determining firm value. The paper therefore recommends that finance managers of firms should aim at finding an optimal dividend policy, which is the one that maximizes the company stock price that leads to the maximization of firm value.

Individual decision styles as predictors for bias susceptibility and bias blind spots in managerial decisions

Purpose This paper aims to managerial decision styles, following the General Decision-Making Style Inventory, as potential predictors of individual bias awareness and bias blind spots, with a focus on the rational decision style. Design/methodology/approach The research is based on a survey of 50°C-1 level managers within Forbes 2000 companies. It explores their decision styles and their assessments of their own and others’ decision behavior. Findings The results show that the awareness of one’s own susceptibility to biases and bias blind spots is highly dependent on an individual’s (self-declared) decision style and type of cognitive bias; decision-makers with a strong tendency toward a rational or spontaneous decision style see themselves as less vulnerable to cognitive biases but also show a much stronger bias blind spot than those with a tendency toward other decision styles. Meanwhile, decision-makers with a strong tendency toward an intuitive decision style tend to recognize their own vulnerability to cognitive biases and even show a negative blind spot, thus seeing themselves as more affected by cognitive biases than others. Originality/value To date, decision styles have not been used as a lens through which to view susceptibility to cognitive biases and bias blind spots in managerial decision-making. As demonstrated in this article, decision styles can serve as predictors of individual awareness and susceptibility to cognitive biases and bias blind spots for managers.

PERAN KEPUASAN KERJA DALAM MEMEDIASI PENGARUH STRES KERJA TERHADAP TURNOVER INTENTION DI KLINIK UTAMA BUNGA EMAS

Employee turnover is permanent, voluntary or involuntary resignation from an organization. The stage before actual turnover occurs is called turnover intention. This turnover intention can be caused by several factors, such as work stress and the level of job satisfaction. The aim of this research is to determine the role of job satisfaction in mediating the influence of work stress on turnover intention. This research was carried out at Klinik Utama Bunga Emas, with a sample size of 46 employees using the saturated sampling method. Data collection uses a questionnaire instrument. The data collected was then analyzed using path analysis. The results of the research show that work stress has a positive and significant effect on employee turnover intention at Klinik Utama Bunga Emas. Job satisfaction has a negative and significant effect on employee turnover intention at Klinik Utama Bunga Emas. work stress has a negative and significant effect on employee job satisfaction at Klinik Utama Bunga Emas. Job satisfaction is a complementary (partial mediation) mediating variable in the influence of work stress on employee turnover intention at Klinik Utama Bunga Emas. The implication of this research is that job satisfaction has an important role, where by increasing job satisfaction, high levels of work stress can be reduced and result in the level of turnover intention also decreasing. Apart from that, this research can be used as evaluation material in analyzing problems in companies, related to what factors influence turnover intention so that this research can be used as material for consideration in making managerial decisions and input for the company.

Does counting change what counts? Quantification fixation biases decision-making

People often rely on numeric metrics to make decisions and form judgments. Numbers can be difficult to process, leading to their underutilization, but they are also uniquely suited to making comparisons. Do people decide differently when some dimensions of a choice are quantified and others are not? We explore this question across 21 preregistered experiments (8 in the main text, N = 9,303; 13 in supplement, N = 13,936) involving managerial, policy, and consumer decisions. Participants face choices that involve tradeoffs (e.g., choosing between employees, one of whom has a higher likelihood of advancement but lower likelihood of retention), and we randomize which dimension of each tradeoff is presented numerically and which is presented qualitatively (using verbal estimates, discrete visualizations, or continuous visualizations). We show that people systematically shift their preferences toward options that dominate on tradeoff dimensions conveyed numerically-a pattern we dub "quantification fixation." Further, we show that quantification fixation has financial consequences-it emerges in incentive-compatible hiring tasks and in charitable donation decisions. We identify one key mechanism that underlies quantification fixation and moderates its strength: When making comparative judgments, which are essential to tradeoff decisions, numeric information is more fluent than non-numeric information. Our findings suggest that when we count, we change what counts.

Supersizing the Impact of Unions in Downsizing Processes: A Configurational Approach Based on 19 Cases in France

This article explores how unions can influence employer decisions to downsize – a longstanding question that has been addressed through three waves of research. Although the literature has successively identified three types of factors that influence managerial decisions to downsize, it has not fully addressed the interactions of these factors, leading to inconsistencies. This article builds on and refines the existing work through a configurational approach which qualitatively evidences six downsizing configurations through a uniquely large number of cases ( n = 19). This research sheds new light on how factors combine to enhance union influence by theorizing four types of chemical-like factor interactions: catalysing, inhibiting, synthesizing and decomposing. By highlighting this interactive chemistry, this configurational approach revisits longstanding academic debates about the context–union strategy fit and the relative efficacy of union responses. From a practical perspective, it encourages unions to reject the idea that there is a single, optimal strategy for addressing downsizing.

A 3D multiobjective multi-item eco-routing problem for refrigerated fresh products delivery using NSGA-II with hybrid chromosome

In a developing countries, say India, about 40 percent fresh foods are wasted during transportation and $14 billion of post harvest products are lost due to inefficiency of cold supply chain such as using non-refrigerated vehicle during last mile transport. Hence, temperature control through refrigerated transportation is very essential. But, the by-product of this process i.e., carbon emission (CE) due to transportation and refrigeration is detrimental for the world. Only logistic transportation contributes about 25 percent of global CE. Due to the world wide infrastructural development, there are several available routes for the road transportation among different cities. For the maintenance of these routes, there are some toll plazas for collection of money. Some routes also cross the rail lines. For maximum profit, a supplier distributes the products at the earliest as the retailers fix the product’s price with respect to its freshness. Again, this process generates more CE. With these realities, a 3D multiobjective multi-item eco-routing problems for refrigerated fresh products (3DMOMIERPsfRFPs) are developed, where a refrigerated vehicle starts from a depot (refrigerated) and comes back after distributing the fresh products to retailers as per their demands. The optimal routing plan, vehicle’s velocity and preservation rate are determined so that total profit and CE are respectively maximized and minimized simultaneously. For solution, an NSGA-II with different modified operators (NSGA-IIwDOs) is developed with hybrid chromosomes having discrete and continuous variables together, probabilistic selection, problem-specific crossover and generation-dependent mutation. Some performance metrics are presented through NSGA-IIwDOs on the standard TSPLIB problems. Results of 3DMOMIERPsfRFPs without and with specific delivery time slots, road-dependent vehicle velocity and time constraints are evaluated. Pareto front for multiobjective are depicted. As a particular case, results of a previous investigation are obtained. Some of the managerial decisions are observed.

Influence Implementing Accounting Information Systems, Internal Control Systems, Organizational Culture and Commitment on Managerial Decision Making in PT. Nirwana Alabare Garment

Influence Implementing Accounting Information Systems, Internal Control Systems, Organizational Culture and Commitment on Managerial Decision Making in PT. Nirwana Alabare Garment

Marketing inputs and outcome heterogeneity: Using a quantile regression framework in the entertainment industry

AbstractThe success of entertainment products such as movies or books varies tremendously, and managers strive to increase the odds by deciding on the right marketing input. Aiming to improve managerial decision making, we suggest and test a quantile regression framework to detect outcome heterogeneity effects of marketing inputs in the entertainment industry. By analyzing the spread of the .9 and the .1 conditioned quantile to the .5 (median) conditioned quantile, we study how much an increase (decrease) of an input factor (star power and quality) changes the spread of the expected outcome (revenues and sales). The spread serves as an indicator for the heterogeneity effect of the input factor regarding the outcome. In two empirical studies, we show how marketing instruments increase (or decrease) outcome heterogeneity by estimating quantile regressions and provide generalizable findings regarding the outcome heterogeneity effects of star power (increases outcome heterogeneity) and quality evaluations (reduces outcome heterogeneity) in the entertainment industry.

The Role of Financial Analysis in Managerial Decision- Making: A Case Study of Al-Etihad Food Industries Company

This study focuses on the importance of financial analysis in the decision-making processes within Al-Etihad Food Industries Company. Financial analysis is a critical tool that helps managers evaluate the company's financial health, profitability, and overall performance. By analyzing financial statements, ratios, and trends, decision- makers can identify areas of strength and weakness, enabling them to make informed strategic decisions. The research highlights how financial analysis aids in resource allocation, cost control, and forecasting future growth. It also examines specific financial indicators, such as liquidity ratios, profitability margins, and debt management, to demonstrate how these factors impact both short-term and long-term planning. In the case of Al-Etihad Food Industries, the study demonstrates that financial analysis has played a pivotal role in improving operational efficiency, optimizing investments, and responding to market changes. By integrating financial data into the decision-making process, the company has been able to strengthen its competitive position and achieve sustainable growth.

Circular–Sustainable–Reliable Waste Management System Design: A Possibilistic Multi-Objective Mixed-Integer Linear Programming Model

Waste management involves the systematic collection, transportation, processing, and treatment of waste materials generated by human activities. It entails a variety of strategies and technologies to diminish environmental impacts, protect public health, and conserve resources. Consequently, providing an effective and comprehensive optimization approach plays a critical role in minimizing waste generation, maximizing recycling and reuse, and safely disposing of waste. This work develops a novel Possibilistic Multi-Objective Mixed-Integer Linear Programming (PMOMILP) model in order to formulate the problem and design a circular–sustainable–reliable waste management network, under uncertainty. The possibility of recycling and recovery are considered across incineration and disposal processes to address the main circular-economy principles. The objectives are to address sustainable development throughout minimizing the total cost, minimizing the environmental impact, and maximizing the reliability of the Waste Management System (WMS). The Lp-metric technique is then implemented into the model to tackle the multi-objectiveness. Several benchmarks are adapted from the literature in order to validate the efficacy of the proposed methodology, and are treated by CPLEX solver/GAMS software in less than 174.70 s, on average. Moreover, a set of sensitivity analyses is performed to appraise different scenarios and explore utilitarian managerial implications and decision aids. It is demonstrated that the configured WMS network is highly sensitive to the specific time period wherein the WMS does not fail.

The informational relevance of social accounting for the management of financial institutions. A case study: Banca Transilvania Financial Group

This paper analyzes the relevance of social accounting information for managing financial institutions, using Banca Transilvania Financial Group (BTFG) as a case study. It explores how social accounting data can enhance decision-making processes within these institutions. Social information from BTFG’s annual integrated reports was used to construct a social balance sheet, and financial data was collected to calculate economic value added (EVA) and social value added (SVA). Research question include: Does social accounting represent a lever for substantiating the managerial decision in financial institutions? Results show that SVA is a valuable indicator for financial institution managers, reflecting the institution’s contributions to social well-being, environmental impact, and community support. Policy implications suggest regulatory bodies should mandate the inclusion of social accounting metrics in financial reporting standards to encourage socially responsible practices, enhance transparency, and incentivize institutions achieving high SVA. This paper contributes to the literature by demonstrating the practical application of social accounting in financial institutions and highlighting the importance of SVA as a managerial tool. It aligns with existing research on integrating corporate social responsibility (CSR) metrics into financial decision-making, enhancing the understanding of combining social and economic indicators for comprehensive performance assessment The abstract covers motivation, methodology, results, policy implications, and contributions to the literature.

Decision making using similarity to a reference distribution

Abstract Accepted by: Prof. Ali Emrouznejad In discriminant analysis (DA) and some methods of multicriteria decision analysis (MCDA), we often wish to assign a ‘candidate’ to one of two or more groups, e.g. ‘satisfactory’ or ‘unsatisfactory’. This requires specifying the characteristics of both groups. However, often we are only able or willing to specify the characteristics of one group, the reference or ‘ideal’ group. We propose a method for proceeding in this case, using the overlap index. This is shown to be the probability that a random variable could have come from a reference distribution. This article motivates and introduces the index, describes its estimation and computation, and illustrates its use with examples from discriminant analysis and MCDA. Two of these examples, one of choosing soccer players and another of appraising surgeons, involve managerial decisions. The novelty here is the introduction of ‘1-group discriminant analysis’ based on the overlap index, the application to MCDA and the methodology for the computation of the overlap index.

ТЕОРЕТИКО-МЕТОДИЧНІ ОСНОВИ УПРАВЛІННЯ АСОРТИМЕНТОМ ПРОДУКЦІЇ

The article substantiates the importance of managing the range of products in the general management system. It is noted that the assortment policy of a business entity depends on its mission, the developed strategy and tactics, and on the other hand, the assortment policy affects the formation of strategy and determines the tactical decisions of business entities. It is justified that the formation and implementation of the assortment policy of business entities requires a clear idea of the strategic goals of economic activity; clear understanding of one's own capabilities, analysis of the external environment, industry and market trends. It is justified that in the product assortment management system it is advisable to follow the algorithm / procedure for evaluating and improving the assortment structure, which clearly structures the work on the performance of tasks, removes the need to spend time and resources on periodic assignment of tasks to specialists of structural units, etc. The algorithm provides certainty regarding: 1) the frequency of evaluation of the range of products by the business entity; 2) methods on the basis of which the existing assortment structure of production and feasibility of production of potentially new types of products that can be introduced into production will be evaluated; 3) responsible persons (specialists of the structural unit/department) for performing assortment evaluation procedures and preparing conclusions/working out draft decisions regarding the assortment. A model of formation/adjustment of the assortment portfolio of business entities is proposed. Making managerial decisions according to the model should be based on the results of assessing the impact of external environmental factors, the existing assortment structure, the feasibility of introducing new types of products, and the results of assessing the potential / opportunities for expanding production, forecasting and planning, etc.

Exploring the moderating effect of organisational climate on organisational justice and employees’ commitment in selected Nigerian banking sectors

Organisations are currently facing challenges due to internationalization and fundamental shifts in industries worldwide. The Nigerian banking sector is experiencing exceptional difficulties and competitive forces such as the issue of managerial decisions, perceptions of inequality, unfair treatment and a poor connection between individuals and their work environment. As a result, this study aims to acquire improved knowledge of how organisational justice and climate variables influence employee engagement in this industry. This investigation took a descriptive research technique. There were 361 questionnaires issued but only 332 were returned. 91.97% of the questionnaires examined were returned which is considered satisfactory for this study. Descriptive statistics were analysed using Statistical Packages for the Social Sciences (SPSS) while inferential statistics were used to evaluate the generated hypothesis using SEM-PLS. The findings showed that organisational climate does not moderate the relationship between organisational justice and employees' commitment but organisational justice has a direct relationship with employees' commitment. It can be concluded that organisational climate does not moderate the relationship between organisational justice and employees' commitment. Organisational stakeholders should make informed choices and implement successful strategies to improve employee well-being and organisational outcomes by understanding the relationship between organisational justice and employees' commitment.

Financial decision dynamics: Environmental, social, and governance factors and managerial choices in emerging markets

This study examines the linkage between the ESG performance of firms and managerial decision-making. It uses 8 years of ESG performance data of 110 Indian firms collected from the Thomson Reuters database. The study finds that high ESG performance mitigates a firm’s cost of debt more than equity cost. Furthermore, increases in ESG performance are associated with higher capital expenditures, lower investment cash flow sensitivity, higher cash holdings, and lesser payout of increased cash flows to shareholders. The findings are in sync with the Slack resources view, suggesting that the requirement of financial Slack for ESG-related innovations and risk-bearing is large and impacts the major managerial decisions of firms. While the effects of environmental and social performance on these decisions are similar to that of the composite ESG performance, governance performance shows an independent impact on the payout decisions of firms. The Granger Causality test reveals a bi-directional association between debt issues and ESG performance. The main results obtained from the multiple panel regressions are robust to additional tests involving lead-lag analysis. The overall findings of this study highlight the importance of ESG performance screening in the managerial decision-making process of investors who would not like to risk growth potential for a short-term increase in dividends.

Rational Individual and Managerial Decision Model: A Critical Review of the Standard Rationality Hypothesis

Classical economic analysis is based on the hypothesis of perfect rationality attributed to economic agents. Their behavior is considered, according to this analysis, in a narrow sense represented by Homo-oeconomicus. The latter is a calculating agent in the true meaning of the term, who calculates to optimize his choice and maximize a utility function. However, in a decision-making process, the economic agent finds himself interacting with a complex and uncertain environment. To decide, he adapts his choice behavior to an end, considering the constraints of this environment. He does not always seek the optimal solution, but he can be satisfied with the solution that he considers satisfactory. This solution highlights the role of deliberation, which considers the norms and customs of society, as well as environmental constraints. This work revisits rationality by examining the assumptions underlying decision-making behaviors. This analysis considers the real motivations of the decision-maker and their implications in his decision-making process, both in the individual context and in that of the organization. It studies the sources of the limitation of rationality and seeks to know why the decision-maker abandons optimization and is interested in satisfactory solutions in his choice. The results of this analysis recommend that bounded rational behavior can still be considered when motivations are considered. They advocate that their understanding is fundamental to refound the economic behavior of choice on hypotheses, which correspond well to the social and economic context of the decision.

A modified grey wolf optimization-based dendritic neural model for stock index return prediction

The prediction of stock index returns has always been a hot topic, which is an important basis for asset allocation and investment decisions of business managers and most investors. In order to improve the accuracy of the prediction, this paper proposes the use of a model based on the combination of the Improved Grey Wolf Optimization (IGWO) and Dendritic Neural Model (DNM). DNM has a more transparent structure, as well as a complex nonlinear processing capability and a unique architecture of automatic pruning, which can deal with the complexity of financial markets. For the traditional grey wolf optimization algorithm, this study designs four strategies to improve it. (i) Develop a nonlinear control parameter for dynamic equilibrium in global and local search algorithms. (ii) Chaos theory is introduced to plan the weights of wolves (iii) A local search scheme applicable to the head wolf is developed. (iv) The method of Levy leap is utilized to help the algorithm get rid of the local optimum. A total of 10 other algorithms are compared and validated based on data from 9 world representative stock index markets. It is pointed out that using IGWO in conjunction with DNM can achieve higher accuracy prediction.

EFFECTIVE MANAGEMENT DECISIONS: METHODS AND TECHNIQUES

The article is devoted to the study of methods and techniques for making and managing effective managerial decisions. It is established that managerial decisions are multi-faceted and varied. Managerial decisions are classified depending on whether they require the development and/or modification of the methods and techniques for their implementation, based on the results of research by scholars. The conclusion is made about the necessity of conducting an in-depth analysis of management methods and techniques for companies to make effective decisions, considering diverse influencing factors on their activities under precedent conditions and circumstances, in the context of adapting to these and subsequently developing theoretical-methodological tools. Attention is focused on the fact that modern business faces constant challenges related to russia's full-scale war against Ukraine, deepening imbalances, and the continuation of negative trends as a result. It is concluded that, under such conditions, decision-making requires extensive application of modern methods and approaches at all levels of management, with appropriate modification and optimization of the decision-making process itself. The activities of LLC "Nova Poshta" are analyzed as a prominent representative of a business that successfully uses innovative approaches to management but must continuously improve and adapt methods and techniques to new challenges for successful market operation. It is determined that LLC "Nova Poshta" serves as an example of a successful combination of innovation and traditional approaches, which contributes and can have a significant impact on ensuring not only the company's viability during russia's full-scale war against Ukraine but also dynamic changes in the post-war market. The conclusion is drawn that effective managerial decision-making is the foundation of successful enterprise functioning.

Методика оценки уровня готовности розничной торговли в России к процессу цифровой трансформации

Chain of events 2019–2022 (COVID-19, sanctions, rising inflation, import substitution policy and economic situation in the market) have had a significant impact on consumer behavior. Many consumers have started to shop online more often than offline stores. Consumer preferences and active adoption of digital technologies by market leaders set the vector of overall digitalization and require companies in the industry to adapt in three areas: customer service, business processes and business models. In order to develop a personalized digital transformation strategy that takes into account a company's strengths and weaknesses, it is necessary to assess the level of digital maturity. The study analyzed the most well-known methodologies for assessing digital transformation, which revealed a number of short-comings, such as the lack of assessment of investment potential and the current level of implementation of digital tools, as well as insufficient attention to the security of digital infrastructure. The authors have developed a new system for assessing the level of digital transformation. The proposed criteria can be interpreted to make further strategic, managerial decisions regarding the implementation of digital technologies at the enterprises of the industry. Taking into account the results obtained, it is necessary to assess the level of digital maturity taking into account the prioritization of tasks and the dynamic nature of digital transformation. This will allow choosing the most relevant strategy on the data-driven retailing matrix.