External Factors Affecting Decision Making

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According to Hambrick and Snow (1977), in order to understand the reasons why a decision is made, it is necessary to know the circumstances that affect it. It is generally understood as factors, the external and internal factors are classified by literature depending on the context surrounding the decision-making process, (Jocumsem, 2004). 2-1 The external factors Different elements external to the organization influence the process of decision-making by the leadership such as: the national economy, the availability of employees specialized (in the banking sector for our topic). - Economical factor: In general, the evolution of two levels of economy influences the decision-making process: the evolution of the national economy (changes in…show more content…
Especially since these characteristics affect the way they interpret the environment (Hambrick and Mason, 1984, Hambrick and Snow, 1977, Schwenk, 1995). The limited rationality of the decision-maker also leads to simplification processes and the presence of cognitive biases (Mintzberg et al., 1976, Schwenk, 1995, Wallace Fowler,…show more content…
According to Descartes (1994), If the crisis prevents the leaders from meeting these expectations, it is likely that a feeling of hostility develops. Many employees also strongly express the idea that "the crisis has a good back" and often argue about decisions, they consider unfair. Descartes (1994) specifies also that, in order to reach the truth, the mind must follow a method. However, the history of the management is crossed by cases of misjudgement and bad decisions for companies and its employees To sum up, the risk of wrong decision making of leadership cannot be avoided, as it was discussed by many authors and theories, as being a factor influencing directly the employees, their performance and working environment negatively. 2-4 The impact of good decision making of leadership on employees As Wimbush (1999) points out, the way leaders influence the behaviour of their employees by making the good decisions, to direct them is essentially due to three sources of influence: - The establishment of a professional working climate; - The power that supervisors exercise; - The ethical behaviour

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