Management Heterogeneity and Effective Decision Making

Abstract

The current study explores the influence of management heterogeneity on decision- making effectiveness. Heterogeneity is learning to work with difference. Effective decision-making describes choices that are consistent and value maximizing within specified constraints. Management heterogeneity is one of the most important issues in present era of globalization. Visionary organizations are focusing on the phenomenon of workforce heterogeneity more comprehensively. The study focuses on four important dimensions of heterogeneity namely age, gender, tenure and functional aspects. Decision making dimensions used in this study are creative/innovative in decision making (CIDM), problem solving in decision making (PSDM) and quality in decision making (QDM). Decisions are very crucial for organization’s competitiveness. The target population of this study is the workforce of scheduled commercial banks in Pakistan. The banking sector has been selected because the sector is most updated, automated and mature as compared to other sectors in Pakistan. Data was collected through a structured questionnaire. Data was acquired from 412 officers / executives of private, public and specialized banks. The entire analysis was conducted through SPSS 15.0 version. Results of the study revealed that there is significant influence of management heterogeneity on effective decision making. Hence dynamic organizations should strive for more heterogeneous workforce for better decision making, profitability and competitive advantage. Key Words: Management Heterogeneity, Effective Decision Making, Visionary Organizations, Globalization, Competitiveness.