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Some managers make good decisions in complex environments, others do not. Why?

Government Marketing: Is Managerial Decision-Making Ability in the Public Sector Different from the Private Sector? Dr. David Clark-Murphy University of Notre Dame Australia.

JasminFlorian
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Some managers make good decisions in complex environments, others do not. Why?

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  1. Government Marketing: Is Managerial Decision-Making Ability in the Public Sector Different from the Private Sector?Dr. David Clark-MurphyUniversity of Notre Dame Australia

  2. "The facility to predict decision-making performance of individual managers is of significance, not only for executives and scientists, but for society itself" (Streufert & Swezey, 1986).

  3. Some managers make good decisions in complex environments, others do not. Why?

  4. This study investigates relationships Public Sector managers' decision-making performance environments of varying complexity. Results are compared with Private Sector studies.

  5. Analysing the content of management decisions or decision-making behaviour may not lead to an understanding of the underlying principles because decision-making prescriptions that produce success in one setting may not be transferable to another.

  6. If individual decision-making depends upon the specific context, it may not be the objective nature of the environment but the individual manager's subjective interpretation of the environment that contributes to differences in decision-making performance.

  7. Review of the literature (1965-2005) suggests that subjective interpretation depends upon the individual's information processing characteristics and other self-regulatory mechanisms (Schroder, Driver & Streufert, 1967; Wood & Bailey, 1985; Streufert & Swezey, 1986; Streufert & Satish, 1997).

  8. Successful marketing depends, at least in part, on the marketer having a clear understanding of stimuli required to make their target markets to: • pay attention; • develop an interest in; • raise a desire for the product, service or idea; • and • 4 be motivated to take action

  9. The stimuli relevant to Public Sector marketing are generally services or ideas. Whatever the marketing principles adopted, the marketing message needs to be aimed at providing information in a form, style, and complexity that best suits the information processing characteristics of the target audience yes that’s us!

  10. For this to occur, Public Sector marketing decision makers need to empathise with the information processing characteristics and likely decision-making outcomes of their target audience – that is, Yes that’s us again- ordinary citizens

  11. BUT Recent criticisms of Public Sector managers suggest that their capacity to make decisions may be impeded by an increasingly complex working environment, a product of public sector reform.

  12. Public Sector reforms towards a more commercial and managerial style have brought some Public Sector managers into situations where they make marketing decisions, such as: • Government marketing: • Save water (shower with a friend) • Don’t drink and drive (you’ll spill your drink) • Quit smoking.

  13. The research design included examination of these relationships for using a series of well-established computerised instruments. Sample: A convenience sample of 203 government managers, balanced for gender, ethnicity, age and experience and from a range of agencies.

  14. Instruments • "Circumgrids" (Chambers and Grice, 1986). 1999 version of the computerised co-ordinate grid analysis to measure information processing. • Watson-Glaser’s Critical Thinking Appraisal (Watson and Glaser, 1984) as a control measure for information processing. • "The Furniture Factory" (Wood and Bailey, 1985), a 1999 version of the computer-simulated organisation to measure decision-making performance.

  15. The experimental design standardises the information environment and its mode of presentation. Decision making performance has been benchmarked (at 100%) across approximately 4,000 private sector manager subjects.

  16. Results showed that many government managers were unable to make effective decisions beyond the medium level of environmental complexity.

  17. The results of this study highlight a need for simulation measures to be programmed to accommodate the differences incognitive capabilities amongst managers; particularly amongst private and government sectors.

  18. A need for further research was identified to establish performance benchmarks and design parameters to suit alternative workplaces because they differ in structural and operational complexity.

  19. This study shows that, in a controlled decisions-making environment, government managers generally make less effective decisions in more complex environments than private sector managers. What are the consequences?

  20. Thanks for listening… Dr. David Clark-MurphyUniversity of Notre Dame Australia dclark-murphy@nd.edu.au

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