CHAPTER II

REVIEW OF LITERATURE AND RELATED STUDIES

This chapter presents the literature and studies that provided the researchers rich

ideas about the concerns of the present research. The researchers referred to possible

sources of information relevant to the present undertaking to substantiate and reinforce

the presentation.

The first part discusses data lifted from various related literature such as books,

periodicals and websites.

The second part discusses the findings, conclusions and recommendations of

studies already undertaken which have direct bearing on the study.

Related Literature

Decision making and problem solving are ongoing processes of evaluating

situations or problems, considering alternatives, making choices, and following them up

with the necessary actions. Sometimes the decision-making process is extremely short

and mental reflection is essentially instantaneous. In other situations, the process can drag

on for weeks or even months. (Hougton Mifflin Harcourt, 2016)

Decision making process is continuous and indispensable component of managing

any organization or business activities. Decisions are made to sustain the activities of all

business and organizational functioning. (Management Study Guide Privacy, 2017)

Leaders are responsible for establishing a process by which decisions are made.

This process is critical to organizations because it can hinder or facilitate goal execution,

job satisfaction, and overall effectiveness. Leaders must determine at what level of the
organization decisions are made, how much participation and power employees have in

the process and the best approach to making decisions. (Rachel K. Van, 2007 July 19)

Leaders must know what decisions to make and keep the interest of all

stakeholders involved. Followers will be less committed to the team if the leader doubts

their decisions. They must show followers that they are able to acknowledge when they

are wrong and move forward to a better solution. (Nichodemus Obioma Ejimabo, 2015)

Human resources (HR) department managers play an important role in the

processes of defining and implementing organizational strategies. From this perspective,

decisions made by HR managers directly influence organizations’ competitiveness. (,

Carolina Walger, Karina De Dea Roglio, Gustavo Abib, 2010)

Be it strategic, business activities or HR matters, processes of making decisions is

complex, involves professionals of different genre. While small organization involves all

levels of managers, complex organizations largely depend on a team of professionals

specially trained to make all sorts of decisions. (Management Study Guide Privacy

Policy, 2017)

The term decision style is the way a person uses information to formulate a

decision (Rowe and Mason, 1987)

Decision style is still a cognitive process which includes one’s personality in

relation to one’s needs, values and self-concept. (Ata Elayyan M. Al Shra’ah, April 2015)

An employee relation refers to a company's efforts to manage relationships

between employers and employees. An organization with a good employee relations

program provides fair and consistent treatment to all employees so they will be
committed to their jobs and loyal to the company. Such programs also aim to prevent and

resolve problems arising from situations at work. (Study.com, 2013-2017)

Employee relations programs are typically part of a human resource strategy

designed to ensure the most effective use of people to accomplish the organization's

mission. Human resource strategies are deliberate plans companies use to help them gain

and maintain a competitive edge in the marketplace. Employee relations programs focus

on issues affecting employees, such as pay and benefits, supporting work-life balance,

and safe working conditions. (Study.com, 2013-2017)

Gender equality and gender differences in decision making have always been an

issue for years. Although both sexes have been compared and contrasted on many

different aspects, males are typically stereotyped as the dominating species while females

are the subordinates. (https://ainnizisoka.wordpress.com/2012/12/06/men-vs-women-

gender-roles-in-decision-making/)

Aging is associated with significant decline in cognitive functions. But does this

translate into poorer decision making? Psychologist from the University of Basel and the

Max Planck Institute for Human Development report that in simple decisions situations,

older adults perform just as well as younger adults. However, according to their study

published in the economic journal Cognition, aging may affect decision performance in

more complex decision situations. ( Universitat Basel, June 2015)

Business managers are responsible for overseeing and supervising a company's

activities and employees. Small businesses rely on the business manager to keep workers

aligned with the goals of the company. Business managers report to top executives in a

larger organization, but in a small company, the manager might either own the company

or report directly to the owner. Business managers oversee the activities of workers; hire,
train and evaluate new employees; and ensure that a company or department is on track

to meet its financial goals. Business managers might also develop and implement

budgets, prepare reports for senior management and ensure the department complies with

company policies. Managers also ensure workers have the resources to complete their

work. The size of the company can determine the type of activities the manager performs

(Hearst Newspapers, LL, 2017).

As with so many writers about management, most crucial part of managerial activity as

that concerned with making decisions. They may have to both initiate change and take an active

part in deciding exactly what is to be done. In principle, they are acting voluntarily. This is very

different from their role as a disturbance handler, where managers have to make decisions which

arise from events beyond their control and unpredicted. The ability to react to events as well as to

plan activities is an important managerial skill. The resource allocation role of a manager is

central to much organisational analysis. Clearly a manager has to make decisions about the

allocation of money, people, equipment, time and so on. In doing so, a manager is actually

scheduling time, programming work and authorising actions. The negotiation role is put in the

decisional category because it is 'resource trading in real time'. A manager has to negotiate with

others and in the process be able to make decisions about the commitment of organisational

resources (Management Role, Henry Mintzberg, 2010)

The following statements above are related to the current study because it talks

about decision making style, employee relation and managerial skills which are also the

ideas that this current study would like to pursue. These concepts from different

literatures would assist the findings of the study to strengthen the results’ discussions.
Related Studies

This research is concerned the implication of Decision Making styles on

employee relation of Managers in selected business in Lucena City. The study will be

patterned and based after the following related studies:

According to Al-Omari (2013) on his study entitled, “The Relationship between

Decision Making Styles and Leadership Styles among Public Schools Principals,”

directive people have low tolerance for ambiguity, a characteristic that sometimes makes

one feel insecure, rigid, and incline to be aggressive. Socially, they are impersonal, and

do not socialize well. Exposed to stressful events such persons can yield to anger,

antagonism and rage.

According to Al Shra’ah (2015) on her study entitled, “The Impact of Decision

Making Styles on Organizational Learning: An Empirical Study on the Public

Manufacturing Companies in Jordan”, participation in decision making processes”,

Decision making is a tool of training of future leaders. Accordingly, the leaders' mentality

is the strategic approach of survive and growth. Thus, participation in decision making

processes improves leadership styles and capacities.

Moreover, according to Davoudi, et. Al (2014), on their study entitled, “The

Relationship between Manager’s Decision Making Styles and Teachers Empowerment in

Saveh Primary School”, that there is a need to change the culture, behavior and leave the

old habits, create a very strong relationship between the manager and staff and given

interfere and comment and participate in the tasks to employees and with granting

decision-making authority to employees, to increase their efficiency and to better play the

role of organizational. Therefore, managers should be looking for opportunities to expand and
develop the role and tasks and participatory fields of their staff and with the creation of a

common purpose between the staff and their, to refrain from quick decisions issues.