The Decision Making Style of Business Managers in Ho Chi Minh City

5/23/2018 The Decision Making Style of Business Managers in Ho Chi Minh City

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VIETNAM NATIONAL UNIVERSITYHCMC

INTERNATIONAL UNIVERSITY

SCHOOL OF BUSINESS

DECISION MAKING STYLES OF BUSINESS

MANAGERS

IN HO CHI MINH CITY

In Partial Fulfillment of the Requirements of the Degree of BACHELOR

OF Business Administration

Advisor: PHAN TRIEU ANH, Ph.D.

Students name:DO TIEN THINH (BAIU08113)

Ho Chi Minh City, Vietnam, 2012


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DECISION MAKING STYLES OF BUSINESS MANAGERS

IN HO CHI MINH CITY

APPROVED BY: Advisor APPROVED BY:

Committee

Phan Trieu Anh, PhD., Chair

..

.

THESIS COMMITTEE

(whichever applies)


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ACKNOWLEDGMENTS

First and foremost, I wish to register my great thanks to (Almighty) Jehovah,

the true God who strengthen my soul and spirit, and save me from being lost.

I would like to show my sincere thanks to my supervisor, Dr. Phan Trieu Anh for his

brilliant support, and precise advices.

I would like to express my deepest gratitude to my family who has supported me a lot.

My sincere appreciation also goes to my professors and lecturers at School of

Business Administration, International University for teaching and training me during

these four years.

It would be a huge mistake if not mentioning my sincere appreciate to Miss Nu Hanh

and all my friends who support me a lot during the semester that I had been doing my

thesis.

Last but not least, I would like to give my thanks to members of CIU, a small group

bible study, who encourage me a lot.


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TABLE OF CONTENTS

ACKNOWLEDGEMENTS..........iii

LIST OF TABLE.vii

LIST of Figure...ix

ABSTRACT..x

i

CHAPTER 1: INTRODUCTION..1

1.1Background1

1.2Rationale for the study..2

1.3Research Purpose...2

1.4Research Methodology...3

1.4.1 Data Collection Methodology..3

1.5Research Scope and Limitation...3

1.6Significant....4

1.7Structure of Thesis...4

CHAPTER 2: LITERATURE REVIEW...6

2.1 Decision and Decision Making..62.1.1 Decision...6

2.1.2 Decision Making......7

2.1.3 Summary..7

2.2 Type of Decision.8

2.2.1 Theory of Gibson, Ivancevich and Donnelly .......8

2.2.2 Theory of Ken Shah & Prof. Param J.Shah...........................................8


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2.2.3 Theory of Rowe and Boulgarides .........................................................9

2.2.4 Summary....10

2.3 Process of Decision Making...................................................................................10

2.3.1 Theory of Bakeret Al (2011).................................................................10

2.3.2 The Model of Dearlove (1998)-The Synoptic Model...........................12

2.3.3 The Greenberg and Baron (1993)-The Traditional analytical model...13

2.3.4 Model of Rowe and Boulgarides (1992)...............................................13

2.3.5 Summary...............................................................................................14

2.4 Decision Maker-Rowe (1992)15

2.5 Decision Making Styles..........................................................................................15

2.5.1 Thoeries Decision Making Styles..........................................................15

2.5.1.1Myers-Briggs Type Indicator....................................................15

2.5.1.1.1 Summary................................................................................15

2.5.1.2 Rowe and Boulgarides Theory................................................16

2.6 Rowe and Masons Decision Making Style Inventory (DMSI).............................18

2.6.1 Decision Making Styles Model.............................................................18

2.6.2 Four Style of Decision Making.............................................................20

2.6.3 Decision Making Style Intensity...........................................................21

2.6.4 Decision Making Style Inventory Scoring............................................22

2.6.5 Decision Style Patterns23

2.6.7 Behavioral Reactions.............................................................................24

2.6.8 ManagerSubordinate styles................................................................25

2.7 Other Study Used Decision Making Styles Inventory...........................................23

2.7.1 Research of Zhou Bei.............................................................................23

2.7.2 Research of Abdulrahman AlQarni........................................................24

2.7.3 Research of Ismail Hussein Amzat.........................................................25

2.7.4 Research of Leele S.J, Gurnam K.S, Parmjit S.A...................................26

2.8 Summary................................................................................................................27


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CHAPTER III METHODOLOGY...........................................................................28

3.1 Type of The Research.............................................................................................28

3.2 Research Purpose...................................................................................................28

3.3 Research Design.....................................................................................................29

3.3.1 Research Method.....................................................................................29

3.3.2 Time Dimension......................................................................................29

3.3.3 Research Population................................................................................30

3.3.5 Data collection Instruments.....................................................................29

3.3.5.1 Advantages and Disadvantages of Survey Questionnaire........293.3.6 Structure of Questionnaire.......................................................................31

3.3.6.1 Content of Questionnaire...........................................................31

3.3.6.2 Questionnaire Translation.........................................................32

3.4 Data Collection Procedure......................................................................................32

3.4.1 Drop-off and Pick-up Method....................................................................33

3.4.2 Class surveyTaylor Design Method.......................................................33

3.5 Measurement Instrument........................................................................................33

3.6 Limitation...............................................................................................................34

CHAPTER IV ANALYSIS AND INTERPRETATION OF THE DATA..........35

4.1 Introduction............................................................................................................35

4.2 Descriptive Statistic of the Respondents................................................................35

4.2.1 Response Rate...........................................................................................35

4.2.2 Profile of Respondents..............................................................................36

4.2.2.1 Age............................................................................................36

4.2.2.2 Gender.......................................................................................37

4.2.2.3 Organization Industry................................................................37

4.2.2.4 Job Position................................................................................38

4.2.2.5 Number of Subordinates............................................................38

4.2.2.6 Education Level.........................................................................39


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4.2.2.7 Summary....................................................................................39

4.3 Descriptive Statistics of All Respondents Managerial

Decision Style and Decision Style Patterns ................40

4.3.1 Respondents Managerial Decision Style...............................................40

4.3.1.1 Analyzing the result................................................................41

4.3.1.2 Comparing decision style score of this research

to other researches...................43

4.3.2 The Managerial Decision Style Patternsfor All Participants........................................44

4.3.2.1 Brain Sidedness........................................................................44

4.3.2.2 Orientation................................................................................45

4.4 Further Analysis.........................................................................................46

4.4.1 Age..........................................................................................................46

4.4.2 Job Position.............................................................................................48

4.4.3 Gender.....................................................................................................49

4.4.4 Number of Subordinates..........................................................................50

4.4.5 Organization Industry..............................................................................51

4.4.6 Education Level.......................................................................................52

4.5 Decision Style Pattern, Decision Style

and the success of managers decision styles...............................52

4.5.1 Brain Sidedness.......................................................................................53

4.5.2 Orientation...............................................................................................55

4.5.3 Directive Decision Style..........................................................................56

4.5.4 Analytical Decision Styles......................................................................57

4.5.5 Conceptual Decision Styles.....................................................................59

4.5.6 Behavioral Decision Styles.....................................................................59

4.5.7 Summary.................................................................................................60


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CHAPTER V CONCLUSION, RECOMMENDATION........................................62

5.1 Conclusion..............................................................................................................62

5.2 Study Implication...................................................................................................63

5.3 Recommendation....................................................................................................64

5.4 Limitation and Recommendation for Further Research.........................................65

REFERENCES...........................................................................................................66

APPENDICES............................................................................................................69


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LIST OF TABLE

Table 2.1 Decision Making Style Intensity......22

Table 2.2 Basic Style Patterns..24

Table 2.3 Behavioral Reaction.................24

Table 2.4 Manager-Subordinate style conflicts .......25

Table 4.1 Response Rate..35

Table 4.2 Summary of Demographic Descriptive Statistic..39

Table 4.3 Managerial Decision Style...41

Table 4.4 Comparing Result.....44

Table 4.5 Different Among Age Groups in Decision Styles47

Table 4.6 Different Among Three Group of Job Position in Decision Styles..48

Table 4.7 Different Among Two Groups of Gender in Decision Style...49

Table 4.8 Different Between Three Group of Number

of Subordinates in Decision Styles...........................................50

Table 4.9 Different Between Three Group

of Organization Industry in Decision Styles....51

Table 4.10 The Different Between Two Group Of Education Level...52

Table 4.11 The Relationship Between Brain Sidedness

And The Success Of Managers Decision....54

Table 4.12 The Relationship Between

Orientation and the Successes of Managers Decision55


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Table 4.13 The Relationship between Achieved Score

in Directive Style and the Successes of Managers Decision..56


in Analytical Style and the Success of Managers Decision....58


in Behavioral Style and The Success of ManagersDecision.59


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LIST OF FIGURE

Figure 2.1 Decision Making Process14

Figure 2.2 Expanded Four-force Model of Decision-Makers..15

Figure 2.3 Decision Style Model..18

Figure 2.4 Complete Decision Style Model.19

Figure 2.5 Individual Scoring Matrix...23

Figure 4.1 Age..36

Figure 4.2 Gender.37

Figure 4.3 Organization Industry.37

Figure 4.4 Job Position.38

Figure 4.5 Number of Subordinate...38

Figure 4.6 Education Level..39

Figure 4.7 Brain Sidedness...45

Figure 4.8 Orientation..46


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ABSTRACT

Decision making is one of the most important managerial functions in the

administration of any organization. Managers of the organizations make decisions

with different kinds that will affect to these organizations. It is one of many factors

which play role in the successes of the organization as well as the successes of

decision makers. It is also not many researchers conducting study on business

managers in Ho Chi Minh City about this field.

The main purpose of this study is to explore the decision style of business manager in

Ho Chi Minh City. A second purpose is to clarify the different among categories of

demographic groups in decision making styles. This research also explores the

relationship between decision style of manager and the successes of their decision.

The result of this study supports for the understanding of leadership of business

managers in Ho Chi Minh City.

The research use Decision Style Model of Rowe and Mason (1987) as a based theory.

The survey method was conducted for this study. Questionnaires consist of two parts:

The first part is Decision Style Inventory which was developed by Rowe and Mason

(1987). This inventory was used to measure the decision styles of business managers

in Ho Chi Minh City. Furthermore, the second part included of nine questions. Six

questions are to receive profile data of respondents, while the three remaining

questions are to measure the successes of respondents decision in their viewpoint.

The finding shows that the dominant style of business managers in Ho Chi Minh City

are behavioral, followed by the directive style. The conceptual style was used leastoften. The result also found that there is a significant different among the groups of

age;job position; education level; and gender in decision styles of managers.

However, there is not any statistically significant different among the groups of

number of subordinate, and groups of organization activities. The finding also shows

there is the relationship between decision styles and the successes of managers

decision.


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CHAPTER I

INTRODUCTION

This chapter gives an introduction of the research and interprets the reason for

conducting the study, point out the problems and purpose. This chapter also

shows the limitation of the research and its significance.

1.1 Background

Each decision given in the past will decide what people will be in the future. People

have to release hundreds of decision a day. Some of them are important, others are not.

However in any organization, almost all decisions are important. Decision-making is

an essential part of management, and it effects the operations of any organization.

Furthermore, decision-making is the most important managerial function, and it is one

upon which the success or failure of any organization depends (Barnard, 1938; Yukl,

1994). Leonard, Scholl, and Kowalski (1999) argue that the decision-making is a

fundamental function in organizations and the quality of the decisions that managers

make influences their effectiveness as managers, and the effectiveness of management,

in turn, affects the success or failure of the organization. Organizations were operated

by people making decisions. Managers using executing decisions to plan, organize,

staff, lead, and control their team. The success of manager will be related to the

effectiveness and quality of those decisions. Furthermore, decision making is a

fundamental activity for managers. An author of management textbooks shows it to

be the essence of the managersjob (Robbins, 1994) and an essential element of

organizational life (Robbins, 1997).


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Therefore researcher conducted a research on studying the decision styles of business

manager and their effects. This research will help business organizations in evaluating

and improving the effecting of decision style of their management staffs. The result

also enables organization to predict the future decision of their management staffs. In

addition this research also creates a baseline for other researcher conducting study on

leadership and managerial style of managers in Ho Chi Minh City.

1.2 Rationale for the study

The ideal for doing this thesis begin from the time that I did internship in sale

department of a small company. The problem is management style of the director, he

had less definitive decisions. Although the staffs had a sense of team work to solve

the problem, the director regularly gave decision to the department by himself. When

his decision was complained because of its impracticability, he would modify it.

Therefore, his decisions then were modified many times. Consequently, it leads to the

changing of aims of some specific jobs in the department. It often creates a distraction,

and the effectiveness of job could be reduced. The displeasure among staffs in the

department also increased. The department had to solve this problem seriously to

consolidate the internal of the department and to have clear vision.

This situation has inspirited me to study this topic. I want to know what the decision

styles of Vietnamese managers are and how they affect to the result of business

organization. This is an essential research which is necessary and essential for the

evaluation and improvement of management style of manager of the organization.

1.3 Research purpose:

There were three purposes for this study.

1. Explore the business managersmanagerial decision styles in Ho Chi Minh

City.


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2. Explore the differences among categories of gender groups, age groups,

number of subordinates groups, educational level groups, organization

industry groups; and job position groups in managerial decision styles.

3. Explore the relationship between the managerial decision styles of managers

and the success of their decision?

To clarify these purposes the following questions were posed:

What are the managerial decision styles of business managers in Ho Chi Minh

City? Are there differences among categories of gender groups, age groups, number

of subordinates groups, level of education groups, job positions groups,

organization industry group in decision styles?

Are there relationships between the managerial decision styles of managers

and the success of their decision?

1.5 Research Scope and Limitation

Since the limited ability and time, the researcher just conducted the study on the

success of the business managers in point of view of them. It was not an objective

method.

1.6 Significance

To date there has been not much research conducted on exploring the decision styles

of business manager in HCMC and the process of how they think in order to give

decision.

This study provides baseline information to improve our understanding of

organization managers and management. The understanding of directors decision


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styles and the influence of cognitive preferences on decisions may improve our

understanding of organization managers and management.

The research will address the difference among categories of groups with different

demographic in decision-making styles; the results can be used management strategies

from which managerial development as well as the development of training programs

is structured, down to the lower organizational level for implementation.

1.7 Structure of Thesis

The study includes five main parts placed in five chapters.

Chapter 1: Introduction

This chapter gives a brief introduction of the research and interprets the reason for

conducting the study, point out the problems and purposes. This chapter also

shows the limitation of the research and its significance.

Chapter 2: Literature Review

This chapter reviews some critical points of the current knowledge and findings

from many previous studies and researches to provide some theoretical

backgrounds for decision making styles theory

Chapter 3: Methodology

This chapter explains the purpose of the research and the research strategy, as well

as the methodology that was used to conduct the research. It also outlines the

investigation and population used in the sampling process.

Chapter 4: Data Analysis

This chapter shows the findings of the study, and analyzes them to identify and

explore the different and the relationship among groups of variable.


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Chapter 5: Conclusion and Recommendation

This chapter presents the result of the study, discuss the recommendations,

limitations. It also provides recommendations for further research.


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CHAPTER II

LITERATURE REVIEW

This chapter will review some critical points of the current knowledge and findings

from many previous studies and researches to provide some theoretical backgrounds

for decision making styles theory

2.1 Decision and Decision Making

2.1.1Decision

Decision-making is an important function of modern management. Management staffs

take consciously and subconsciously hundreds of decision a day which is the key

elements of success of organizations. According to Robbin (1998) decision is defined

as choices made from two or more alternatives. People make decision to response to

the problem. The current state of affairs have large different with some desired state

requiring consideration of alternative courses of action. Besides, a decision is defined

by Gore, Murry and Richard (1992)as the moment of choice and some decisions may

vary, depending on their level in view of the fact that decision that are made at the

lower level differ from those that are made at the top management level

Another definition, Gore (1964) stated that The term decision may refer to the

choice of picking up the telephone; it may just as well refer to a momentous and

unprecedented international act. The gulf between these terminals of the continuum of

decision is too large to traverse with the use of only a single term. Generally, a

decision refers to the consideration of the consequences of some act before

undertaking it. Purposive behavior, behavior organized by means of goals project by

individuals, as a means of catching their needs, tends to extend beyond the resources

of a behavioral system. In this situation the decision becomes a mechanism for

selecting both goals to be undertaken first and those that must wait. One of the

meanings that decision has come to have, is a choosing, not between alternative


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courses of action, but between alternative goals, each offering benefits prized by

someone.

2.1.2 Decision Making

According to James Stoner decision making is the process that identifies and selects a

course of action to solve a specific problem. Another definition of Trewartha and

Newport that decision making involves the choice of a course of action from among

two or more possible alternatives to come to a solution for a problem. Moreover,

decision-making is the process which problems was identified and resolved and

capitalizes on opportunities by leaders and managers. However, all levels in the

organization need essentially good decision making. (Aiken, Clarke, Solane and

Silber, 2002). Furthermore, making a decision connotes that there are optional

choices to be considered, and in some cases people want not only clarify as many of

these alternatives as possible but to choose the one that fits completely with their

goals, desires, objectives, values, and so forth. (Harris, 1980)

Lastly, decision making is the methods and way of get conclusion or agreement.

People have to understand expertly their organizational process and its structure

before making a decision. It also require the role attributed to participants related in

the decision making process, which is connected process intimately (Marshall and

Iftekhar, 2008)

2.1.3 Summary

Although there are many definitions of decision and decision making that have been

introducing over the 70 years, generally, the decision is a moment of choice between

many alternative courses of action and a way to response to problems. Decision

making is the method and the way of get conclusion or agreement for a problem.


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2.2 Type of Decision

2.2.1 Theory of Gibson, I vancevich and Donnel ly (1994)

According to Gibson, Ivancevich and Donnelly (1994), there are two main types of

decisions; they are programmed and non- programmed decisions.

Programmed decisions: A routine procedure was run to solve a particular situation

occasionally, when it occurs. Therefore, decision are programmed to the scale that the

problem repeat. It is a definite procedure which has been developed to handle them.

Non-programmed decisions: Decisions which are novel and unstructured are non-

programmed. It cannot handle the problem by using any existence procedures. Since it

has not arisen in exactly the same manner before or since it is heterogeneous or very

important. These problem need to be treated in special way.

2.2.2 Theory of Ken Shah and Param J. Shah (2009)

According to Ken Shah and Param J. Shah, there are 9 types of decisions; they are

irreversible, reversible, experimental, trial and error, made in stages, cautious,

conditional, and delayed.

Irreversible: This type of decisions is the ones which were made then cannot be

unmade. It takes a long time to receive the repercussion. It is unchangeable when

there is not any satisfactory option the course. Managers should never use it to escape

from general indecision.

Reversible: Reversible decision is the decision that totally can be change, although

during or after the agreed action begins. People are allowed to acknowledge a false

early in the process rather than eternize it. Changing circumstances can be used

effectively where change is necessary.

Experimental: This type of decision is not completed when the first result appear

show them to be satisfactory. It needs positive feedback before ones decide on the


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string of action. It is effective and useful when correct move is unclear; however it is

clearly according to general direction of action

Trial and Error: In this type, knowledge is taken out of previous mistakes. A specific

string of actions is chosen and tried out. When the results are positive, the action will

be carried further. Nevertheless, when the results are negative, then the another course

is adopted and many trials are made and errors are occurred. It allows the superiors to

adopt and adjust plans continuously before it has full and final commitment. The

positive and negative feedback can be used before it selects a particular course of

action.

Made in Stages: In this type of decision, decisions were made in steps when the whole

action completed. The close monitoring of risk was allowed as one accumulates the

evidence of result and constraint at every stage. It allows feedback and discussion

before the next stage of decision is made.

Cautious:Time for contingencies and problem are allowed that may crop up later at

the time of implementing. The people who make decision may hedge their best of

effort to accept the night course. It enables to limit the risk that is inherent to make a

decision. It permits one to scale down projects that are risky in the first instance.

Conditional:In this type of decision, decision can be altered if specific predictable

circumstances arise. If the competition makes a new move or the plan of the game

change completely, it will prepare one to react. It helps one to react quickly to change

to the circumstances

2.2.3 Theory of Rowe and Boulgari des (1992)

According to Rowe and Boulgarides (1992: 16) decisions can be one of the following

types:

Routine decisions:So as to take an organizations goal, prescribed rules are followed.

They are considered as programmed decisions.


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Creative decisions:It is needed to handle more complex problems by new or novel

approaches. These and the following negotiated decisions are considered non-

programmed.

Negotiated decisions:They are situations conflicted in goals or approached to

problem solving need to be resolved by participants who are involving.

2.2.4 Summary

There are many theories that have been debating on the type of decision. But this

research chose theory of Rowe and Boulgarides (1992) as a main theory because otherresearches are quite complicated and not practical. Beside there is not any instrument

to measure the type of decision of these theory, while the theory of Rowe and

Boulgarides is clear, practical, and it is more suitable with other following chosen

theories.

2.3 Process of Decision Making

2.3.1 Theory of Baker et al (2001)

According to Baker et al (2001), before making a decision, it should be identified the

decision makers and stakeholders in decision. Simultaneously, it also should be

reduced the possible disagreement about problem definition, requirements, goals and

criteria. The decision making process can be divided into the following steps

Step1: Define the problem: The most essential thing before making a decision,

decision making must start with the identify root source of causes, limiting

assumption, system and organizational boundaries and interfaces, and any stakeholder

issues. The aim of this step is to express clearly the issue. The problem statement

must be concise and unambiguous written material agreed. It is important before

going to the next step.


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Step 2: Determine requirements: Requirements are conditions that all problems to

suitable solutions must meet. Requirements show what the solution to the problem

must do

Step 3: Establish goals: Goals are broad statements of target and desired

programmatic values. Goals go over the minimum essential must have requirements

to wants and desires.

Step 4: Identify alternatives: The alternatives offer many different approaches to

change the initial condition into the desired condition.

Step 5: Define criteria: Decision criteria, which will differentiate among alternatives,

hence it must be based on the goals. It is necessary to define distinguishing criteria as

objective measures of the goals to check how well each alternative got the goals. The

goals will be stand for the form of criteria, so goals must yield at least one criterion

but complex goals may be represented only by some criteria.

According to Baker et al. (2001), criteria would be able to discriminate among the

alternatives and to support the comparison of the performance of the alternatives. It is

also completed to all goals, few in number, non-redundant, operational and

meaningful.

In some methods, Keeney and Raiffa (1976) show that non-redundancy is required in

the form of independency.

Step 6: Select a decision making tool

There are many implements for solving a decision problem. The choice of suitable

tools is not easy; it also depends on the concrete decision problem and on the

objectives of the decision makers as well.

Step 7. Evaluate alternatives against criteria: The assessment can be objective or

subjective; it depends on the criteria. The objective (factual) go with the respect to

some normally shared and understood scale of measurement and the subjective show


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the subjective judgment of the evaluator. The implement can be applied to select the

alternative to choose a small group of the most promising alternatives.

Step 8. Validate solutions against problem statement: When the applied decision

making tools select the alternatives, it have always to be validated against the

requirements and aims of the decision problem. The decision makers and stakeholders

the attention can be called in complicated problem. In addition, its further goals or

requirements also should be added to the model.

2.3.2 The Model of Dearlove (1998) - Synoptic Model

According to Dearlove (1998: 18) much of the study of understanding management

decision-making is based on the foundations set down by economists in the early

industrial period, who believed that under a given set of circumstances human

behavior was logical and therefore predictable. Using this premise they used models

to explain the workings of commerce, which they believed could be extended to the

way in which decisions were made.

The synoptic model for decision-making is similar to the rational model and described

by Dearlove (1998: 19) as follows:

(1) Identification of the problem.

(2) Clarification of the problem and prioritization of goals.

(3) The generation of options.

(4) Evaluation of options (by using the appropriate analysis).

(5) Comparison of the predicted outcomes of each option with goals.

(6) Choosing the option which best matches the goals.

Dearlove (1998: 19) points out the following concerning the synoptic model: The

problem with the synoptic model is that, although it provides a logical explanation of


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how decisions might be made, our own experience tells us that this is not actually

what happens (Nor, some would argue, is it even desirable).

2.3.3 The Greenberg and Baron (1993)- Traditional Analytical Model.

In comparison to the six step rational model, the traditional analytical model is

described by Greenberg and Baron (1993: 536) as follows, it have been found useful

to conceptualize the process of decision-making as a series of steps that groups or

individuals take to solve problems. This conceptualization is described in eight stepsas follows:

(1) Identify the problem.

(2) Define objectives.

(3) Make a pre-decision.

(4) Generate alternatives.

(5) Evaluate alternatives.

(6) Make a choice.

(7) Implement the choice.

(8) Follow up.

It must be noted that not all decisions conform to the eight step pattern describedsome steps may be skipped or left out. The model is also conceptualized in a circular

manner meaning that if the problem is not deciphered the process return to the first

step of the model (Greenberg and Baron 1993: 536).


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Stimulus Decision

Maker

Problem

Definition

Choosing

Alternatives

Implementation

2.3.4 Model of Rowe and Boulgari des (1992)

In 1992, Rowe and Boulgarides gave a theory that emphasizes the decision-maker

who is strongly involved in all stage of decision-making process. In Figure 2, it shows

the decision process which Rowe and Boulgarides mentioned

(1)Stimulus

(2)Decision maker

(3)Problem definition

(4)Choosing Alternatives

(5)Implementation

Figure 2.1 Decision-Making Processes (Source: Rowe and Boulgarides,1992)

2.3.5 Summary

There are many theories that have been debating on the process of decision making.

But the researcher chose theory of Rowe and Boulgarides (1992) as a main theory

because other research is quite complicated and not practical, while theory of Rowe

and Boulgarides (1992) is simple, clear, practical and it is more suitable with other

following chosen theories.

Organizational and

personal pressures

Frame of

reference

Change the

problem or

approach

Gaining acceptance

of the decision

Opportunities

feedback thre

Value Analysis of motivational

biases, risk, cost,

assuption

Apply creative

problem solving

Evaluation and control of

performance


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2.4 Decision MakerRowe (1992)

Rowe (1990) argued that all individual work in an organizational environment will

reflect the demands of that organization from external sources. In addition, interaction

of human being with other people of the organization such as their peers, superiors

and subordinates will influence their behavior. Individuals will perform their task by

utilizing their skills and their job position. The characteristic of human being such as

values, beliefs, needs, and expertise) also influence the reaction of them to demands

of organization, task, and environment.

In 1992, Rowe and Boulgarides show an expanded four-force model to describe the

response of a manager in organization context. The four-force have named that

environment forces, organization forces, task demands and personal needs. The four-

force model is described in detail in Figure 2.2

Figure 2.2 Expanded Four-force Model of Decision-Makers (Source Rowe and

Boulgarides, l992)

2.5 Decision Making Styles

This part will mention to other researches that release a different definition of

decision styles. The decision style model proposed by Rowe and Boulgarides (1992)

is explained in the context of the rational decision-making model.

Environmental forces: Government,

Society, Competition, Resources,

Technology, Customers

Prepotent needs:

Frustration, Anxiety,

Achievement, and

Control

Personal needs: Security,

Structure, Support, Recognition,

Opportunity, Reward

Organizational

forces:Policies,

Staffing, Culture,

Productivity,

Conformity

Task demand:Skill,

Knowledge, Energy, Ability,

Willingness, Performance

Decision

Maker


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2.5.1 Theori es of Decision M aking Styles.

Doktor and Hamilton (1973) gave a theory that decision-making style is considered as

a cognitive style. They said, it is a part of the persons cognitive style, which is the

characteristic, self-consistent way of functioning that an individual exhibits across

perceptual and intellectual activities.

Henderson and Nutt (1980) said that it is an personal cognitive that we call decision

style, and it seem to influence the option among alternative a mode of action (Mason

& Mitroff, 1973). Coscarelli, Burk and Cotter (1995) proposed a definition that,

decision-making is a characteristic, self-consistent way of functioning that an

individual exhibits across perceptual and intellectual activities when making a choice.

2.5.1.1 Myers-Br iggs Type I ndicator

Myer and Briggs (1985) proposed an instrument named Myers-Briggs Type Indicator

which is an extremely popular personality inventory. This instrument has received

widespread use over last 30 years. It was used to measure psychological preferences,

and describe the way people perceive the world and make decisions by questionnaire.

Myer and Briggs describe personality of each individual in term of a four-letter code.

Using of the MBTI would seem an appropriate choice to describe ones personality

make-up. Myer also indicated that Four dichotomous dimensions classify individuals

either as extraverted (E) or introverted (I), sensing (S) or intuitive (N), thinking (T) or

feeling (F), and judging (J) or perceiving (P). Combination the four preferences will

decide the type of personality. There are 16 possible four letter codes (such as ESTJ,

ESFP, ISTJ, INTJ). Each type can help to clarify e set of behavioral tendencies,orientation, reflecting differences in attitudes, and decision-making styles.

The MBTI is one of the most popular instruments, which is used for personality

assessment. However, as Bjork and Druckman (1991) pointed out, the instrument's

popularity is not consistent with research evidence. Furthermore, the MBTI manual

does not give norms based on continuous scores. Much of the supporting evidence

provided in the manual is of questionable validity (Coan, 1978). Consequently, these


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reason is why the researcher did not choose this theory, as a based theory, to conduct

a research.

2.5.1.2Rowe and Boulgarides Theory

Rowe and Boulgarides (1992) suggest two dimensions to sort four types of decision

styles describing the managers decisions making ways. In addition, there are many

factors affecting on these styles. Firstly, that is the person's cognitive complexity, or

tolerance for ambiguity which versus preference for structure. Secondly, that is the

person's values orientation or orientation to task which versus orientation to people.

In addition, Rowe and Boulgarides (1992) asserted that individual decision making

styles form the backbone of effective decision making (p.22). However, due to the

complexity of individuals, one may not expect organizational leaders to neatly fit

into only one category of decision making style (p.31).

Each framework has common, as well as special interpretations. The decision style

inventory (DSI) developed by Rowe and Boulgarides (1992) has been adopted for this

study and was explicated in the following passages because of its rational reliability

(Oavid, Leyland and Amy: 1994 and seeker: 2003)

Furthermore, according to Rowe and Mason (1987), the researchers conducted a

research study on 10,000 individuals in different jobs such as directors, managers,

teacher dean, chiefs of police, army generals. The inventory was determined to have

over a 90% face validity and 70% test- retest reliability (Rowe & Mason, 1987). In

addition, ninety percent of participants agreed with the findings. It shows that DMS is

a valid test instrument. Thus, that is reason why researcher chooses theory of Roweand Mason as a based theory of the study.

2.6Rowe and Masons Decision Making Style Inventory (DMSI)

Decision making style Inventory (DMSI) was developed in 1987 by Alan Rowe and

Richard O.Mason. According to DMSI model, there are four decision styles. They are

directive, analytical, conceptual and behavioral. Rowe and Boulgarides (1992)

clarified that decision making styles were built on two key elements, value and


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perception. The way that manager makes decision was described in DMS. It relate to

many factors like the context in which a decision is made, the way managers perceive

and understand cues and what managers value and judge as essential. Alan Rowe and

Boulgarides said that the instrument, decision making style inventory (DMSI), can be

used to probe the structure of the mind.

2.6.1 Decision Making Styles Model

Rowe and Masons DMSI reflects a persons cognitive complexity and values. Figure

2.3 below indicates the model which has two factors, cognitive complexity and values

orientation. The lower half of Figure 2.3 show the directive and behavioral stylespreferred structure and the upper half indicates preferred complexity. The cognitive

complexity dimension separates the upper and the lower half as well as distinguishes

managers from leaders (Zaleznick, 1970 cited in Rowe and Boulgarides, 1992). The

values dimension divides the left and right halves and covers task and people

dimensions. The left half of the figure show that people have analytic and directive

styles and they are task oriented. The right half show that people have conceptual and

behavioral styles and they are people oriented.

AnalyticConceptual

Directive Behavioral

Figure 2.3 Decision Style Model (Source Rowe and Boulgarides, 1992)

Left hemisphere Right hemisphere

Leader

Manager

Peo leTask Values

Complexity

Structure

Cognitive Complexity


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A complete decision-style model by Rowe and Mason (1987) is shown in Figure 2.4

below.

N-ACH: need for achievement

N-POW: need for powerN-AFF: need for affiliation

Figure 2.4 Complete Decision Style Model by Rowe and Mason

(1987, as cited in Rowe and Boulgarides, 1992)

Left hemisphere(logical)

Right hemisphere(Relation)

Tolerancefor

ambiguity

Analytical

Enjoys problem solvingWants best answersWants best control

Uses considerable dataEnjoys varietyIs innovative

Uses careful analysis

N-ACH, need challenges

Conceptual

Is achievement-orientedHas a broad outlook

Is creativeIs humanistic/artistic

Initiates new ideasIs future-oriented

N-ACH, is independent andwants recognition

Directive

Expects results

Is aggressiveActs rapidlyUses rules

Uses intuitionIs verbal

N-POW, needs power

Behavioral

Is supportiveUses persuasion

Is empatheticCommunicates easily

Prefers meetingsUses meetings

Uses limited data

N-AFF, needs affiliation

CognitiveComplexity

Thinking

(Ideas)

Need forStructure

Doing(Action)

Task/Technical People/Social

Value Orientation


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2.6.2 Four Style of Decision M aking

1. Directive Style -Main characteristic of directivedecision style is autocratic and

internal orientation. People who have directive style as dominant style have low

tolerance for ambiguity and low cognitive complexity. They focus much on technical

decision which need for efficiency, limited alternatives and speed, while they want to

dominate others and use specific information to be given verbally. Furthermore, they

are also ones who are focused, structured, aggressive and rigid but concomitantly,

they have the energy to achieve result. In addition, they need status and security.

2. Analytical Style Main characteristic of analyticaldecision style is autocratic bent.

People who have analytical style as dominant style have a high tolerance for

ambiguity and high cognitive complexity. Since they focus much on technical

decision, therefore they need a lot of information and consideration. They enjoy

problem solving and coping with new situations. They always exert to achieve the

maximum. They often operate their own company because they want have more

control. They communicate better through writing. They prefer the challenges and

examining the detail.

3. Conceptual StyleThe main characteristic this style is high cognitive complexity

and people orientation. The people with conceptual style often think more than do.

Therefore, they are trusted, and have opened relationships. They share the goals with

their staffs. They often emphasize the idea, ethics and value in their decision.

Creativity is one of the most highlight characteristic of this style. In addition, theyfocus much on long range in high organizational commitment, while they are also

achievement-oriented, recognition, independence and value praise. They are like to

lose control to power and exhibit participation.

4. Behavioral Style The main characteristic this style is supportive and friendly

orientation. They have low cognitive complexity; however they have deep social

concern and development of people. They often provide an advice and receptive


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suggestions. They also have good communicate ability. In addition, they are

empathetic, persuasive, compromising. They focus much on short term range and

prefer using meeting for communicate. They seem to avoid the conflict, seek

acceptance but sometimes are insecure

2.6.3 Decision Making Style In tensity

The amount that each of the decision making style intensity is used can be determined

from the score specified on the decision making style inventory (DMSI). There are

four levels of intensity. They are:

1. Least preferred:This level of intensity shows that the individual scarcely uses the

style but when required could do so

2. Back-up:This level of intensity evince that this style are occasionally used the

style by individual, and it reflects the typical score on the decision style inventory.

3. Dominant: This level of intensity indicates that the individual will almost use this

style in preference to other styles. Nevertheless, in general, individuals can have more

than one dominant style; hence they can switch from one to another.

4. Very dominant:This level of intensity show that the highest level that represents

theobligatory use of the style preferred by individuals. This level becomes the focus

of individuals. In addition, it will override other styles which have a lower intensity

level. Nevertheless, there are some individuals having more than one very dominant

style.

This table 2.1 is used to determine the level of intensity for style of each individual

based on the scores obtained on the DMSI instrument. The level of intensity is useful

for clarifying the scores on the decision style inventory.


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Table 2.1 Decision Making Style Intensity (DMSI) Levels (Rowe and

Boulgarides, 1992)

Intensity

Style Least preferred Back-up Dominant Very Dominnant

Directive Below 68 68 to 82 83 to 90 Over 90

Analytic Below 83 83 to 97 98 to 104 Over 104Conceptual Below 73 73 to 87 88 to 94 Over 94

Behavioral Below 48 48 to 62 63 to 70 Over 70

DMSI instrument consists of 20 questions, which consist of 4 responses that concern

typical situations facing managers. Participants use the scale of 8, 4, 2, and 1 to show

their preference. A ranking of 8 indicates the response is most like you, 4 indicates

moderately like you, 2 indicates slightly like you and 1 indicates least like you.

Nevertheless, for the purpose of this research, those rankings of 8, 4, 2 and 1 were

changed to 1, 2, 3 and 4 so as to evade confusion among the participation. Upon

analyzing the data, these values were then recoded to the original values.

2.6.4 Decision Making Style I nventory Scoring

According Rowe and Mason (1987), below are the steps to measure the score of

Decision Making Style Inventory (DMSI):

a. Total scores in each of the four columnsI, II, III, and IV.

b. Total score in the four columnI, II, III, IV. The sum of them is 300. If the total

score is less or more than 300, check the scores so that respondents do not repeat

number for any question.

c. The sum of score for each of the four columns is related to the four decision-

making styles as follows:


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1) DirectiveI

(2) AnalyticII

(3) ConceptualIII

(4) BehavioralIV

Figure 2.5: Individual Scoring Matrix (Rowe and Boulgarides, 1992)

2.6.5 Decision Style Patterns

According to Rowe and Boulgraride (1987), the left half and the right half of the

decision style model is related to the difference in left and right hemisphere of brain

of respondents. The people who achieve 165 or higher score in directive and

analytical decision style have left-braindominance, while the people have combined

score between conceptual and behavioral style equal 135 or higher will have right-

braindominance.

The people who own right-braindominance is more creative and perceives thing as a

whole. They are also more fantasy, artistic, imagery, appreciate space, and music

since they can use right-brainto have comprehensive sense of timing. In addition

right- braindominance people can encompass thoughts at the same time which useparallel processing of information.

The left-hemispherecontrols logic, analytic thought, as well as processes information

in a consecutive manner. Left-brainalso controls speech, abstract logic needed for

calculation, verbal thinking, and pointing, smile as well. (Rowe and Mason, 1992)

Analytic

II

Conceptual

III

Directive

I

Behavioral

IV


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Decision Style Inventory also measure orientation of people. People have idea-

orientationare more concerned with thinking, judgment, creative, art, writing,

innovation, analysis. Besides, people have action-orientationare related with

achieving results. They collaborate well with their peers, and look for jobs that require

direct involvement, interacting with the public and achieving result as well. The table

2.2 shows the style pattern in detail

Table 2.2 Basic Style Patterns (Source Rowe and Mason, 1987)

Patterns Styles Score

Left Brain Directive and Analytical 165 or higher

Right Brain Conceptual and Behavioral 135 or higher

Idea orientation Analytical and Conceptual 170 or higher

Action orientation Directive an Behavioral 130 or higher

2.6.6 Behavioral Reactions

Alan Rowe and Boulgaries (1992) indicate that decision styles may be able to help to

predict the decision outcome. The researcher shows the reaction of each style when it

has stress, motivation, problem solving, and thinking. Table 2.2 show them in detail

Table 2.3 Behavioral Reaction to Rowe and Masons Decision Styles(Rowe and

Boulgarides, 1992)

Decision Style Reaction to Stress Motivated by Solves Problem by Thinking mode

Analytical Follow Rule Challenge Analysis and Insight Logical

Behavioral Evading Acceptance Feeling and Instinct Emotional


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Conceptual Erratic Recognition Intuition an Judgment Creative

Directive Explodes Power and status Rule and Policies Focused

2.6.7 ManagerSubordinate styles

According to Rowe and Boulgarides (1992), they cited that the relation between

managers and their subordinates can rise the conflict when the expectation of them are

significant different. Futhermore, Rowe also said that directive and behavioral style is

the most likey to encounter conflict. Table 1.3 shows the potential conflict areas in the

managerial levels.

Table 2.4 Manager-Subordinate style conflicts (Adapted from Rowe and

Boulgaride 1992:33)

Subordinate StyleDirective

Back-up Junior Middle Senior

AnalyticBack-up: Middle Senior

ConceptualBack-up

Junior Middle Senior

BehavioralDominant

all level

ManagerStyle

DirectiveBack-up.Junior.Middle.Senior

No Conflict Minimal conflict Potential Conflict Potential Conflict

AnalyticBack-up:

.Middle

.Senior

Minimal Conflict No Conflict Minimal Conflict Potential Conflict

ConceptualBack-up

.Junior.Middle

.SeniorPotential Conflict Minimal Conflict Minimal Conflict No Conflict

Behavioral.Dominant

all levelPotential Conflict Potential Conflict No Conflict Minimal Conflict

2.7 Other Study Used Decision Making Styles Inventory


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2.7.1 Research of Zhou Bei (2006)

Research ofZhou Bei (2006) was conducted in two companies, namely South African

Breweries Limited and Tsingtao Co., Ltd who conduct business in South Africa and

China, respectively. The research population consisted of 180 business managers in

both companies. The result of this research explored that the dominant style of the

operations managers in both companies was behavioral, which difference from the

human resource and finance managers who were back-up intensity in all four decision

styles. The mean scores of both companies is, Directive: 73.54, Analytical: 88,

Conceptual: 76.93, Behavioral: 61.5

2.7.2 Research of Abdulrahman AlQarni (2003)

The research of AlQarni (2003) explored managerial decision styles of the managers

of Floridas state university libraries, and the relation between the variety of managers

decision styles and the following seven variables: gender, age, ethnicity, educational

level, educational major, administrative experience, and current position. This study

of Abdulrahman AlQarni (2003) indicated that the majority of Florida university

library managers (n=40 or 47% out of 85 respondents) scored within the very

dominant and dominant behavioral DMSI levels and this was followed by the

conceptual decision style (n=28 or 32.9% out of 85 respondents)

2.7.3 Research ofI smail Hussein AmzatThis study was conducted to investigate on 1,117 university teaching staffs on

decision making styles and their relationship with job satisfaction in five

Malaysian public universities. The studies indicated that three out of the five

public universities in Malaysia had adopted the behavioral decision style, two other

universities had adopted the analytical and conceptual decision styles.

2.7.4 Research of Jamian, Sidhu, and Aperapar (2008)

The research of Jamian, Sidhu and Aperapar (2008) explored the decision making

styles of deans in Malaysian Public University. The findings indicated that a


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generality of the deans adopted at least one very dominant or dominant DMS,

chiefly behavioral DMS, followed with one or two back-up decision styles.

3.8 Summary

The purpose of this chapter was to provide the finding and knowledge on the subject

of decision-making, type of decision, decision making process, specific decision-

making styles in order to understand the rationale for certain approaches or styles to

decision-making.

In this study, the researcher chooses the theory and instrument of Professor Alan

J.Rowe, Mason, and Boulgarides as a based theory and instrument for this research

because of its rational reliability and valid instrument.

Chapter 3 will address the research strategy in more detail. This will comprise, the

type of research, the design, all the aspects regarding the research population and

sampling and as well as the instrument used to collect data.


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CHAPTER III

METHODOLOGY

This chapter explains the purpose of the research and the research strategy, as well

as the methodology that was used to conduct the research. It also outlines the

investigation and population used in the sampling process.

3.1 Type of the research:

The type of this study is descriptive and exploratory research. In this study, researcher

wants to describe the decision styles of mangers in HCMC, and explore the difference

among categories of demographic groups. Researcher also wants to explore the

relation between the managerial decision styles of managers in HCMC and the

success of their decision. Therefore, researcher chose to use descriptive and

exploratory research.

3.2 Research purpose:

The purpose of this research is to study the managerial decision styles of the managers

in Ho Chi Minh City and explore the difference among the categories of demographic

variables groups in decision style of managers. It was designed to:

1. Explore the managers managerial styles in Ho Chi Minh City

2. Explore the difference among categories of gender groups; age groups; number of

subordinates groups; educational level groups; organization industry groups; job

position groups in managerial decision styles.

3. Explore the success of each decision styles on the result of their decision and the

obedience of staffs

To clarify these purposes the following questions were posed:


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What are the managerial decision styles of the managers (directors, associate

directors, assistant directors, vice director, the heads of departments and

supervisory management) in Ho Chi Minh City

Are there anydifference among gender groups; age groups; level of education

groups; job position groups; number of subordinates; organization industry in

the managerial decision styles?

Is there a relationship between the managerial decision styles of managers and

the success of their decision

3.3 Research Design:

3.3.1 Research Method

The design for the study method is the survey research method. Survey is considered

as one of the most common type of quantitative, social research. In survey research,

the researcher selects a sample of respondent s from a population and administers a

standardized questionnaire to them. Survey research has considerable believability. It

was accepted and used in academic institution. The main purpose of survey research

is to enable researcher to generalize about a large population by surveying a small

portion of the population (The Health Communication Unit, at the Centre for Health

Promotion, University of Toronto, 1999)

3.3.2 Time dimension

The time dimension of the research is cross-sectional. According to Cooper and

Schindler (2001: 136) Cross-sectional studies are carried out once and represent a

snapshot of one point in time. After collecting all data, the processing will be carried

out.

3.3.3 Research Population

According to Department of Planning and Investment of Ho Chi Minh City, there are

about 184,000 companies were established in 2012 in Ho Chi Minh City. Out of

184,000 companies, 96 %( 176,000) of them were small and normal sized companies.


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Researcher estimates that there are 90% of total 176,000 companies were small size

companies. It is about 158,400 small-sized companies. Each small company has

about 1 to 2 managers have right to make decision. Researcher chooses the mean is

1.3. Each normal-sized company has about 5 to 10 managers have right to make

decision. Researcher chooses mean is 7.3. Furthermore, each large-sized company has

50 to 200 managers have rights to make decision. The researcher chooses the mean is

110. So researcher estimates that there are about 342,000 managers in Ho Chi Minh

City. Therefore, the total population of this research is estimated about 342,000

business manager in Ho Chi Minh City.

3.3.4 Data Coll ection I nstruments

3.3.4.1 Advantages and Disadvantages of Sur vey Questionnaire

This study conducts a survey questionnaire. There are many advantages of survey

research. According to the Health Communication Unit, at the Centre for Health

Promotion, University of Toronto (1999), firstly, using survey can help to complete

structured questions with many stakeholders within a relatively short time frame. It

also can be completed by telephone, mail, fax, or in-person. It is also quantifiable and

generalizable to an entire population if the population is sampled appropriately.

Furthermore, standardized and structured questionnaire minimizes interviewer bias.

The questionnaire can enable the researcher get a tremendous volume of information

in short period of time. Lastly, research can take less time to analyze than qualitative

data.

These advantages can help this study in some following reasons. Firstly, since thepurpose of this study is to explore and generalize the entire population of manager in

Ho Chi Minh City, quantitative research method must be conducted, hence the survey

research can solve this problem. Furthermore, the participants of this research are

managers, so by conducting survey researcher can deliver questionnaires to a

numerous number of respondents and get back easily. Lastly, questionnaire can help

researcher to receive desired data.


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According to the Health Communication Unit, at the Centre for Health Promotion,

University of Toronto (1999), there are some disadvantages that researcher can

receive when they conduct survey. Firstly, it is more difficult to collect a

comprehensive understanding of respondents perspective (in-depth information)

compared to in-depth interviews or focus groups. In addition, it requires some

statistical knowledge, sampling and other specialized skills to process and interpret

results. Lastly, conducting survey can be very expensive.

3.3.5 Structur e of Questionnai re

3.3.5.1 Content of Questionnaire

The Questionnaire contains two parts:

Part 1: Decision making style Inventory developed by A. J. Rowe and R. O Mason,

aims at clarifying preferences when facing a situation which decision maker have to

release a decision

Part 2: Nine questions in part 2 were designed to get descriptive data. It comprises 6

demographic questions which are to receive information and to determine respondents

profile and background as well. In addition, there are 3 rating scale questions which

are to inspect the successes of each decision style. First question is to inspect the

successes on the result of managers decision evaluated by him (success A). Second

question is to inspect the successes on the result of managers decision evaluated by

his higher level manager in point of his view (success B). Third question is to inspect

the success of the decision on the obedience of subordinates. Rating scale is from 1 to

5, while 1 is the most success and 5 is not success.

3.3.5.2 Questionnaire Translation

Questionnaire was translated into Vietnamese language so as to match with local

populations language. The translation applied double build method to ensure the

equivalence of meaning (Refer to Mouton 1996). Firstly, the questionnaire was


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translated into Vietnamese, and then the Vietnamese version was translated back into

English. Some errors was recognized and fixed then.

3.4 Data collection procedure

This study, researcher used two ways to deliver questionnaires to respondents. Firstly,

it was Drop-off and Pick-up Method. Questionnaire was delivered to participants

through 3rdparties who have intimacy relation with respondents. Secondly, the

remaining method is Taylor Design Method. Questionnaires were delivered to

participants in their management training classes.

3.4.1 Drop-off and Pick-up Method

According to Allred, Davis (2010) Drop-off and Pick-up Method (DOPU) this is

the method that questionnaires are hand delivered to respondent at their home or

business, researchers have chance to meet respondents face to face. The result in

response rate of this technique is quite high, about 93% in natural resource-related

studies (Olsenetal. 1998)

When implementing the DOPU method, face-to-face contact and verbal

communication with respondents permitted researchers to better determine eligibility

than did leaving the questionnaire on the doorknob. Relying solely on respondents to

indicate ineligibility on the survey instrument was not as effective as verbal

confirmation of eligibility in the DOPU. (Shorna Broussard Allred, Amy Ross-Davis,

2010)

In this study, the researcher delivered questionnaires to respondents who are

management staff through the 3rd parties who are friends of researcher. These friends

are the people who have been working in departments which are under control of

participants of this research. The 3rd parties trained to master the questionnaire would

give questionnaires to respondents in their relax time. The 3rd parties have intimacy

relation with respondents; they can talk and instruct the participant clearly and


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precisely. Consequently the respond rate is also higher than using other method such

as web survey.

The finding show that the number of usable questionnaires is 58, the response rate is

84 %.

3.4.2 Class Survey - Taylor Design Method

The Tailored Design Method developed by Dillman is widely considered as the state

of the art method to maximize survey response rates. According to Dillman, Tailored

Design Method include: making the survey respondent-friendly, including a stampedreturn envelope, using five varied contacts with survey recipients, providing a

financial incentive in the same mailing as the survey itself, and personalizing

correspondence.

In this study, researcher delivers questionnaires to participants who had been studying

in some manager training classes. These classes were the good places for conducting

survey because there were numerous of managers who were in many levels of

position. Furthermore, they were also in many areas of business which enable the

sample more appropriately. The questionnaires were delivered to participants before

break-time of each class. This method could help researcher got a large number of

participants in relatively short time. The bigger number of participant of sample is the

more precision that the research can generalize total population. Especially, the

sample of this study is managers. It is quite complicated, and takes much time to

approach many managers one by one to give questionnaires and get back. Therefore,

delivering questionnaire to managers in their training classes is a suitable strategy.

The finding show that the number of usable questionnaires is 52, the response rate is

55 %.

3.5 Measurement Instrument

The measurement instrument to be used is the Decision Style Inventory as developed

by Rowe, in 1981 and revised in 1985. Rowe is Professor of organization and


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management at the University of Southern California in the United States of America.

Researcher asked for the permission to use the instrument for the research by

electrical mail, but Professor Alan J.Rowe passed away on June 2, 2011.

Consequently the researcher could not get the permission to use this instrument, but

all other researchers used DSI instrument could totally have the permission of

Professor Alan J.Rowe, and without fee.

According to Rowe and Mason (1987), they proposed a term decision making style

(DMS) as the way a person uses information to formulate a decision (p.5). This

theory divides decision style of people into four styles. They are directive style,analytical style, conceptual style, and behavioral style. Each people usually have one

dominant style and one followed style. In 1992 Rowe and Boulgarides develop a

model Decision Making Style Inventory (DMSI) which was used to measure the

intensity of four styles which affect to each people. This instrument consists of twenty

questions which have four numbers to responses. In addition, there is no right or

wrong choices. The result will show decision styles of respondents. Decision styles

will reflect the way decision maker reacts to a given situation (Rowe and Boulgarides

1992: 28).

3.6 Limitation.

Since the limited ability and time, researcher just conducted the study on the success

of business managers in the point of view of them. It was not an objective method.

The author proposes a method which is more objective. Other studies should conduct

a survey on the success of managers through their subordinates plus their higher level

manager. This method is quite complicated and costly, but it can help us to get precise

data.


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CHAPTER IV

ANALYSIS AND INTERPRETATION

OF THE DATA

4.1 Introduction

This chapter will present the data collected from 110 respondents from 41 companies.

Data was collected from November 1, 2012 to December 26, 2012. The data was

analyzed to identify their decision styles. It is also to explore the difference among

managersage group, gender group, job position group, organization activities group,

education level group, and number of staffs under control group in their four decision

styles. Furthermore, it also identifies the relationship between four decision styles and

the success of managers decision.

4.2 About the Respondents

4.2.1 Response rate.

The usable returned questionnaires of this research are 110 business managers. The

total numbers of participants of this survey are 167. Out of 167 participants, there

were 95 of participants who were in some manager training classes, while 72

participants were asked through drop-off method. Out of 95 participants in training

class, there were 77 returned questionnaires, twenty five of them were unusable and52 were usable. Furthermore, out of 72 participants surveyed through drop-off method,

there were 66 returned questionnaires. Eight of them were unusable and 58 were

usable. Therefore 110 surveys were returned and usable. Almost unusable

questionnaires were false because participants did not fill the questionnaire

completely. The total score of decision style did not equal 300. Table 4.1 indicates

the response rate in detail.


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Table 4.1 Response rate

Data

Collection

Procedure

Number of

Participants

Returned

Survey

Unusable Usable Percentage

Class Survey 95 77 25 52 55%

Drop-off 72 66 8 58 84%

Total 167 143 33 110 66%

4.2.2 Prof il e of respondents.

This part of the questionnaire is to formulate the profile of 110 business managers

from 41 companies in Ho Chi Minh City. The profile shows six independent variables

which may have the relation with each decision styles.

4.2.2.1 Age

Of the 110 respondent, the highest concentration of 44.5% (n=49) respondent was in

category below 30 years old. There were 37.3% (n=41) of respondents who were

between 30 and 39 years old. The representation in the remaining over 39 years old

category was 18.2% (n=20). In this sample, number of young managers dominates

number of old managers. Figure 4.1 shows the age group category distribution.

Figure 4.1 Age

45%

37%

18%

< 30 30 - 39 > 39


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4.2.2.2 Gender.

The data collected shows that male represent 53.6% (n=59) of respondent, while

female represent 46.4% (n=51). In this sample, number of male respondents equals

the number of female respondents. The gender distribution was illustrated in figure

4.2

Figure 4.2 Gender

4.2.2.3Organization industry

The finding shows that out of 110 respondents, there were 80 of respondents who

work in service industry, it gain 72.7% of total respondents. Moreover, there were just

5.5% (n=6) of participants work in manufacturing industry, while 24 of participants

work in both service and manufacturing industry, it just accounts for 21.8 % of total

respondents. Almost participant has been working in service industry, while rare

participant work in manufacturing industry. More detail about the result is indicated

in figure 4.3

Figure 4.3 Organization Industry

54%

46%

Men Women

73%5%

22%

Service Manufacturing Both


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4.2.2.4 Current positi on

The finding shows that out of 110 returned questionnaires, there were 25.5% (n=28)

of participants who are top managers, while 42.7% (n=47) participants are in middle

manager positions in their organizations. In addition, there were 31.8% (n=35) of

respondents are supervisors. Hence, middle managers who are head or vice head of

department account much percentage more than top managers or supervisors. More

detail about the result is explore in figure 4.4

Figure 4.4 Job Position

4.2.2.5 Number of subordinatyes

Of 110 responders, 20% (n=22) of participants have more than 50 subordinates. In

addition, 22.7% (n=25) of respondents have 15 to 50 subordinates, while 57.3%

(n=63) of participants have less than 15 subordinates. So, a large number of

participants have less than 15 subordinates. Figure 4.5 reflects the number of

subordinates.

Figure 4.5 Number of subordinates

25%

43%

32%

Top Manager Middle Manager Supervisor

57%23%

20%

50


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4.2.2.6 Highest education level

The result of the survey shows that out of 110 returned questionnaires, there are 86

(78.2%) respondents got bachelor degrees as the highest education level, while there

are 24 (21.8%) respondents passed postgraduate. Lastly, No one has general education

as the highest education level. All respondents in this study have undergraduate

degree or higher. The figure 4.6 reflects the percentages of the highest level education

that respondents received.

Figure 4.6 Education Level

4.2.2.7 Summary

The following table wills summarize the descriptive statistics of the respondents in

detail.

Table 4.2 summary of demographic descriptive statistics

Frequency Percent

Age

Less than 30 years old

30-39 years old

More than 39 years old

Job Position

Top manager

49

41

20

28

44.5%

37.3%

18.2%

25.5%

78%

22%

0%

Undergraduate Postgraduated High school


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Middle manager

Supervisor

Gender

Male

Female

Education Level

High school

Graduate

Postgraduate

Number of subordinates Less than 15

15-50

More than 50

Organization Activities

Service industry

Manufacturing industry

Both

47

35

59

51

0

86

24

63

25

22

80

6

24

42.7%

31.8%

53.6%

46.6%

0

78%

21.8%

57.3%

22.7%

20%

72.7%

5.5%

24%

4.3 Descriptive Statistics of All Respondents Managerial Decision Style and

Decision Style Patterns

4.3.1Respondents Managerial Decision Style

A descriptive analysis was conducted to describe and explore the decision style of

participants and their decision style pattern.

The finding from questionnaires show that the decision style intensity level of

majority of the participant, about 45.5% (n= 50), is back upfor directivedecision

style. The result also shows that the largest number of participants, about 58.2% (n=

64) scored at least preferredlevel of intensity foranalyticaldecision style. Similarly,

almost all of participant (62.7%, n=69) scored at least preferredfor conceptual


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decision style, while there are 48.2% (n=53) of participant scored at very dominant

intensity levelfor behavioral decision style. Table 4.3 shows the result in details.

Table 4.3 Managerial Decision Style

Managerial

Decision

Style

Least

PreferredBack Up Dominant

Very

DominantTotal

Directive16

(14.5%)50

(45.5%)

27

(24.5%)

17(15.5%)

N 110

Analyticcal64

(58.2%)

29

(26.4%)

10(9.1%)

7(6.4%)

N 110

Conceptual69

(62.7%)

35

(31.8)

4(3.6%)

2(1.8%)

N 110

Behavioral13

(11.8%)27

(24.5%)

17(15.5%)

53

(48.2%)

N 110

Level of Intensity

Directive. Below 68= Least preferred, 68-82= Back up, 83-90=Dominant, over 90= Very dominant.

Analytical. Below 83= Least preferred, 83-97= Back up, 98-104=Dominant, over 104= Very dominant.

Conceptual. Below 73= Least preferred, 73-87= Back up, 88-94=Dominant, over 94= Very dominant.

Behavioral. Below 48= Least preferred, 48-62= Back up, 63-70=Dominant, over 70= Very dominant.

4.3.1.1 Analyzing the result

According to the table 4.3, 24.5% of participant scored in the dominant level of

intensity for directive style, it means 24.5 % of them use directive style frequently in

preference to other styles. In addition, there were 17 participants account for 15.5%

who always use directive style. Rowe & Boulgarides (1992) showed that the one who

use scored directivestyle as dominantand very dominantlevel of intensity are

autocratic and have a high need for power. They also have low tolerance for

ambiguity and low cognitive complexity. Furthermore, they just focus on technical

decisions which involve a need for speed, efficiency and limited alternatives. When

giving decisions, they aim to achieve the result, security and status. These people are

motivated by power and status. When they get stress, they become explosive and


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angry with other people. Their thinking mode is focused, so they use rules policies for

problem solving.

Through 110 returned questionnaires, there were 10 and

The Decision Making Style of Business Managers in Ho Chi Minh City

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