scholarly journals Practical Wisdom for Sustainable Management and Knowledge Sharing

2020 ◽  
Vol 12 (10) ◽  
pp. 4173
Author(s):  
Natàlia Cugueró-Escofet ◽  
Josep M. Rosanas
Keyword(s):  
Decision Making ◽  
Sustainable Management ◽  
Practical Wisdom ◽  
Transfer Pricing ◽  
Management Control ◽  
Management Decisions ◽  
Managerial Decision ◽  
Moral Virtues ◽  
Types Of Knowledge ◽  
Balanced Scorecards

Practical wisdom (“phronēsis”) is an Aristotelian concept that has been incorporated into management research to a considerable extent in the last 20–30 years. This paper attempts to show how practical wisdom is necessary as a type of situational knowledge that is required for most management decisions to be sustainable. We start reviewing the types of knowledge necessary in decision-making, and we emphasize “practical wisdom” as the kind of knowledge that is particular and subjective, is acquired through practice, and is transmitted by example. We relate the concept of practical wisdom with the Hayek concept of knowledge of time and place, the Polanyi concept of tacit knowledge, and Nonaka’s knowledge management. We conclude that in most management decisions, phronēsis is required and, thus, is necessary to increase sustainability in terms of effectively sharing knowledge and acquiring virtues to improve managerial decision-making. Not considering phronēsis has bad implications for management as it can lead to unsustainable and poor decisions, for instance, in main areas of management control such as pricing policies, budgeting, balanced scorecards, transfer pricing, and goal setting. Along with the intellectual virtue of practical wisdom we conclude that moral virtues, specifically justice, should be the complement that guides organizational objectives.

Practical wisdom in managerial decision making

2010 ◽  
Vol 29 (7/8) ◽  
pp. 637-645 ◽  
Author(s):  
Domènec Melé
Keyword(s):  
Decision Making ◽  
Practical Wisdom ◽  
Moral Judgments ◽  
Decision Making Process ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Content Type ◽  
Moral Virtues ◽  
Means And Ends ◽  
Human Good

PurposeThe aim of this paper is to present the necessity for practical wisdom in the managerial decision making process and its role in such a process. The paper seeks to contrast the position with two conventional approaches based on maximizing and satisficing behaviors respectively.Design/methodology/approachFollowing Aristotle and Thomas Aquinas it is argued that a correct decision should consider an “integral rationality” which includes not only “instrumental rationality” but also “practical rationality”. The latter permits the evaluation of both means and ends from the perspective of human good. Practical wisdom helps the decision maker to determine how a decision will contribute to the human good in each particular situation.FindingsMaximizing and satisficing behaviors are based on the facts‐values dichotomy, which separates business and ethics and presents a rationalistic and incomplete view of the reality. The alternative presented here sees the decision as a whole, and this is a more comprehensive understanding of the reality. Ethics is better integrated into the decision making process, since it is an intrinsic part of such a process, not an extrinsic addition.Practical implicationsEvery decision has an ethical dimension, which should be considered by managers for making good decisions. Practical wisdom is essential in perceiving such a dimension and in making sound moral judgments in the making of decisions. Managers do not need only skills for making correct decisions, but practical wisdom and moral virtues, too.Originality/valueThe approach presented in the paper defeats the conventional but narrow views of managerial decision making based on maximizing behavior or on satisficing behavior and introduces the categories of good and evil as the main driver for managerial decision making.

scholarly journals The Relative Role of the Intellectual and Moral Virtues in Sustainable Management Decisions: The Case of Practical Wisdom and Justice

2020 ◽  
Vol 12 (3) ◽  
pp. 1156 ◽  
Author(s):  
Natàlia Cugueró-Escofet ◽  
Josep M. Rosanas
Keyword(s):  
Decision Making ◽  
Decision Maker ◽  
Sustainable Management ◽  
Practical Wisdom ◽  
Relative Role ◽  
Moral Virtues ◽  
Wise Person ◽  
The Status ◽  
The Ideal

We analyze the status of virtues in management by going in some depth into the two main virtues, justice and practical wisdom. We next study how ethics requires that all virtues should be present under the ideal concept of a ‘unity of virtues’ for a completely wise person and discuss the practical limitations of this concept. Then, we draw a framework for decision making depending on whether the decision maker possesses justice and practical wisdom or lacks one of them and then discuss which one is better to have. We conclude that justice is more important, as it is about setting objectives and prioritizing, whereas practical wisdom is about attaining these objectives, once listed, in a rationally wise and contextual way. Hence, we conclude that objectives (justice) must come first, because this makes it more likely that, in the end, practical wisdom is developed, and thus we end up having the two virtues.

scholarly journals Strategies for making management decisions in information and analytical activity

2021 ◽  
pp. 26-30
Author(s):  
Olha Danylyuk ◽  
Lyudmyla Petryshyn
Keyword(s):  
Decision Making ◽  
Management System ◽  
Management Decisions ◽  
Managerial Decision ◽  
Significant Information ◽  
Managerial Decision Making ◽  
Managerial Decisions ◽  
Regional Management ◽  
Analytical Research ◽  
Principles Of Design

The aim of the study is to substantiate and analyze the strategy of managerial decision-making in information and analytical activities, to specify the main aspects of analytics for decision-making.Strategies for making managerial decisions in information and analytical activities are substantiated. The relevance of the use of information-analytical research is determined. The main aspects of analytics for decision making are analyzed, as well as the ranging of classes according to the degree of intelligence and complexity of tasks is taken into account. The peculiarities of completeness and reliability of information for information-analytical research are revealed. It is determined, that information analytics is a component of management.The regional management analytics is analyzed, as a result of which it is proposed the scheme of regional management with the use of information and analytical support is offered. The basic principles of design are offered. It is proved, that the management system requires modern analytical support, performed according to the requirements of science, the latest methodologies, including information and analytical activities. Problems and negative sides in the process of information-analytical activity in the system of regional management are determined. It is noted, that information and analytical support helps to achieve the best results, and the effectiveness of activities in any field depends on the management system. The obtained research results will allow will improve planning, organization and coordination of managerial decision-making and will help to form a significant information capital for making relevant management decisions at all hierarchical levels of management

Effectiveness of Management Decisions in the Education System

2020 ◽  
Author(s):  
И.А. Заякина
Keyword(s):  
Decision Making ◽  
Education System ◽  
Management Decisions ◽  
Managerial Decision ◽  
Managerial Decision Making ◽  
Educational Activities ◽  
Goals And Objectives

в статье рассматриваются вопросы эффективности принятия управлен-ческих решений в системе образования; подчеркивается важность госу-дарственных целей и задач для организаций, осуществляющих образовательную деятельность. the article discusses the effectiveness of managerial decision-making in the education system; emphasizes the importance of state goals and objectives for organizations engaged in educational activities.

Management Control Systems

2018 ◽  
pp. 50-77
Keyword(s):  
Decision Making ◽  
Control System ◽  
Theoretical Approach ◽  
Management Control ◽  
Managerial Decision ◽  
Exogenous Variables ◽  
Management Control System ◽  
Managerial Decision Making ◽  
Conventional View ◽  
The Past

This chapter is focused on a fundamental theoretical approach to management control system research, the contingency theory. Reviewing the most prominent research works over the past 30 years, the main insights on the relationships between contingency factors and the appropriate design of MCS are illustrated and discussed. In particular, this chapter assumes the conventional view that considers MCS as passive tools designed to support managerial decision-making and summarizes the effects of endogenous and exogenous variables on the design of MCS and firm's performance for the achievement of equilibrium conditions.

scholarly journals RISK STUDY IN THE DECISION-MAKING MANAGEMENT PROCESS

2021 ◽  
Author(s):  
Olha Matvieieva ◽  
Olha Bondarenko ◽  
Oksana Duksenko
Keyword(s):  
Decision Making ◽  
Economic Behavior ◽  
Management Decision ◽  
Management Decisions ◽  
Managerial Decision ◽  
Economic Relations ◽  
Managerial Decisions ◽  
Degree Of Risk ◽  
Economic Thinking ◽  
The Impact

The article examines the essence of risk in the process of making managerial decisions and the reasons for its occurrence. The subject of risk acceptance research is established. It is proved that the source of risk is uncertainty caused by irreversible inconsistency of elements of the whole economic system and the presence of sources that contribute to its growth, as well as: limited resources at the stage of making or implementing management decisions, influence of the a posteriori period, object of economic relations, existing differences and stereotypes in the economic behavior of different subjects of economic relations. Risk research is presented structured according to two dichotomies: the first – division into researches connected with risk assessment, and works in which acceptance of risk is studied; the second is based on the fact that decisions can be collective or made by a single entity. Factors influencing the degree of risk and its probability in the process of making management decisions are given. The dependence of alternatives and management decisions on the degree of risk and its probability is revealed. A critical analysis of risk theory identified the impact of the "law of risk" on the organization of economic activity and the decision-making process. The process of making managerial decisions is described taking into account the main types of managerial decisions, which is based on theories of decision making. It is proved that the theory of decision-making requires a new economic thinking, which will complement it by studying the behavior of not abstract, but the real subject of economic relations, which, in turn, will ensure the effectiveness of management decisions. The main provisions of the theory of decision making in the presence of risk are revealed. The dominant theory of managerial decision – making in the presence of risk is studied – the theory of maximizing the expected utility. The general regularity in the process of making the management decision taking into account alternatives and probability of risk is revealed. Determination of management decisions – willingness to take risks, which can be understood as a willingness to go beyond situational constraints, goal setting, including testing of personal abilities, theoretical knowledge and practical skills, qualifications, willingness to control the results of management.

scholarly journals DEVELOPMENT OF ORGANIZATIONAL AND CORPORATE SYSTEMS USING MODERN MATHEMATICAL METHODS AND MODELS

2021 ◽  
Vol 21 (1) ◽  
pp. 116-135
Author(s):  
O.V. Loginovskiy ◽  
◽  
A.A. Maximov ◽  
S.A. Zolotykh ◽  
V.O. Loginovskaya ◽  
...  
Keyword(s):  
Decision Making ◽  
Data Science ◽  
Analytical Data ◽  
Mathematical Methods ◽  
Management Decisions ◽  
Managerial Decision ◽  
Big Data Technologies ◽  
On Line ◽  
Modern Technologies

Analysis of modern technologies, methods and models used in various types of organizational and corporate structures convincingly proves that the improvement of preparation and decision-making for the management of these structures is currently carried out mainly on the basis of often outdated and not quite corresponding to modern capabilities of computer technology, and also information, software and software developments. The article shows that in modern conditions of global instability in the world, it becomes necessary to use adequate methods for data analysis and preparation of managerial decision-making on the development of organizational and corporate structures. Proposals and recommendations for improving the processes of analytical data processing, extracting useful information from large amounts of data located in the relevant organizational and corporate systems are presented, as well as adequate mathematical models and algorithms that can be successfully used to improve the quality of management decisions by the management of companies. The purpose of the study is to form methods and models for the analysis of strategic alternatives for the development of organizational and corporate systems using the concept of big data, technologies for extracting the necessary information from existing data banks, etc. Materials and methods. The research methods are based on modern information and analytical technologies, data science and models developed by the authors for the analysis of strategic alternatives for the deve¬lopment of organizational and corporate systems. Results. The scientific provisions and developments presented in the article can be used to improve the efficiency of management in various information and analytical systems for various management structures. Conclusion. The results of the research presented in this article make it possible to perform a qualitative analysis of data, to model the options for the work of organizational and corporate structures in an on-line mode, which makes it possible to increase the efficiency of managing their development based on a comparison of alternative options for management decisions.

scholarly journals QUALIMETRIC METHODS IN ASSESSING THE EFFECTIVENESS OF MANAGEMENT DECISIONS IN UNIVERSI-TIES

2019 ◽  
Vol 7 (5) ◽  
pp. 237-244
Author(s):  
Serik M. Abilov ◽  
Alexander A. Kaigorodtsev
Keyword(s):  
Decision Making ◽  
Organizational Structures ◽  
System Thinking ◽  
Practical Significance ◽  
Management Decision ◽  
Management Decisions ◽  
Managerial Decision ◽  
Index Value ◽  
The University

Abstract Purpose: Management decision in the university is a process of convergent analysis, forecasting and timely resolution of problem situations, aimed at achieving synergetic results. The research studies the advantages and feasibility of using qualimetric methods for evaluating effectiveness of the university’s management decisions. Methodology: Our proposal is to use the method, based on qualimetric analysis, in assessing the effectiveness of management decisions in the university. The theoretical propositions and the argumentation of the research findings have been grounded with the following general scientific methods system-thinking approach, structural and level-based, logical and economic-based, as well as statistical analysis. Main Findings: The management decision effectiveness is based on the level of collaboration in decision-making. The degree of collaboration in decision-making is determined by the involvement of various stakeholders in the process. Index of timeliness of a management decision implementation is the ratio of standard time to the actual time spent. The decision is effective if the index value is equal to 1 or exceeds it. Decision efficiency is evaluated based on the quality of its implementation. The integrated indicator of decision-making effectiveness is a combination of values for all four parameters.     Implications/Applications: The practical significance of the research predetermined by the fact that application of this methodology contributes to optimizing the interaction of organizational structures on the management synergy basis, and, as a result, to improving the quality of educational services provided by the university. Using the method of qualimetric analysis raises the level of personnel involvement in the process of managerial decision-making, objectivity and decisions quality.

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