UNSTABLING
IN THE LEGAL ENVIRONMENT AND DECISION-MAKING PROCESS
Mostafa
Jafari
University
of Zanjan, Iran, Islamic Republic of
E-mail:
strategy2000ir@yahoo.com
Masoumeh
Rahimi*(Corresponding Author)
Zanjan
University of Medical Science, Iran, Islamic Republic of
E-mail:
Masoumeh.rahimi@gmail.com
Maedeh
Bayat
Zanjan
Institute for Advanced Studies in Basic Sciences, Iran, Islamic Republic of
E-mail:
Maedehbyt@yahoo.com
Submission: 27/06/2016
Accept: 12/09/2016
ABSTRACT
The
aim of this study was to determine the impact of change dimensions in the legal
environment on the quality of each stage of the decision-making process of
senior managers in public institutions. The population of this study included
all general managers, directors administrative, Administrative
and financial and support assistants, Accountants and financial managers,
executive directors, deputies and
managers of Executive agencies of Zanjan province. To collect the information
from all elements of society, the census method was used. The data collection
tool was a researcher-made questionnaire that its reliability and validity were
confirmed (Cronbach's alpha coefficient: 0.87). Data analysis was performed
using descriptive statistics and inferential statistics techniques (Chi-square
test and Friedman test) by SPSS software. The results show that the dimensions
of changes in the legal environment factors affect on the two first and third
stages of the decision making process of managers (stages of data collection,
decision-making and its implementation). However, it hasn't affected on the
data, and information analysis stage.
Keywords: Change, Seven dimensions of
change in the legal environment, three stages of decision-making process, senior
managers of state institutions
1. INTRODUCTION
Decision-making
refers to mental (cognitive) processes that lead to selection of an action
among the alternative measures. Decision-making is the main core of and
planning, can be considered synonymous to the concept of management (MOHAMMEDAN;
HUSSEINI, 2014). Decision-making is an action that ultimately leads to a choice
within a process that can meet the organization's problem. The decisions are
taken in order to realize the objectives and according to the available
resources.
Decision-makings
determine the type of objectives and how to realize them. Thus, decision-making
is a mechanism that covers all activities of the organization, and indeed,
affects all members of the organization either individually or as a member of a
group (MOORHEAD; GRIFFIN, 2008).
In
recent years, in complying with the rapid and profound changes in the
environment and daily needs, the organizations have had changes, including the
use of information technology, population growth, consumerism, resource constraints,
etc. Each of these has made the managers to face with different situations. As
a result, the decision makers should deal with various problems by choosing
strategies and policies.
If
these decisions are not taken with evaluation and spending sufficient time,
they could lead to loss of organizational opportunities and resources.
Sometimes, making decisions by trial and error method can make irreparable
losses to the national wealth and resources and the surrounding environment,
and even makes the organizations' survival impossible (SALEHI, 2009).
It
should be however noted that decision-making is essential for the managers to
efficient use of manpower and resources of an organization. According to Koontz (1989), having a plan, program and policy is subject to
decision-making. Simon, also considers decision-making and management
synonymous (ALAGHEBAND, 2012). Today, we can say that the decisions of a
manager are somehow one of the most important success factors in the
effectiveness of the tasks and advancing organizational goals (KARIMI, 2012).
Change
is a fact that the individuals, groups and organizations need to consider for
their continuous survival and make it as a priority. Since today, the internal
and external factors of the organization have much dynamics that can change the
existing facts, and the organizations are forced to move from the status quo
towards the ideal situation (MOQIMI, 2014).
In a
study, Trader concluded that the acceptance of change by the employees is an
important factor in successful implementation of organizational change and
suggested contribution as one way to create acceptance (TRADER-LEIGH, 2002).
The purpose of this study is answering to this question; how changes in the
legal environment, impress the three stages of decision-making by senior
governmental managers?
2. THEORETICAL FOUNDATIONS
2.1.
Decision
and decision-making process
Decision-making
is a specific process that involves choosing a way among two or more existing
methods. The decision involves a self-conscious choice that allows one to
evaluate a specific behavior and way of thinking based on a series of given
conditions, and then, select an option to pursue and implement (KARIMI, 2012).
We
can say that decision-making is a process that decision is its result. In other
words, decision-making is the process of identification and selection of a
specific procedure among the options under consideration to achieve a
particular goal or solve a particular problem (ALAGHEBAND, 2012).
In
general, decision-making means choosing a solution from several solutions (MOORHEAD;
GRIFFIN, 2008). The process can be considered a detectable flow of events
related together in pursuit of a goal, purpose or end point. The process is the set of activities that create value for the costumer
(JIFROODI, 2010).
The
six-step decision-making process includes:
a)
Detection and identification of the problem or
issue
b)
Finding possible solutions to fix the problem
c)
Selection criteria for the measurement and evaluation
of possible solutions
d)
Determining the results of each of the possible
solutions
e)
Evaluating the solutions through examining the results
of them
f)
Choosing a solution among the different ways and
presenting the decision statement (SAEEDKIA, 2011).
In
Simon's point of view, decision-making process has three steps:
a)
Finding situations that require decision-making
b)
Exploration, processing and analysis of different
solutions
c)
Choosing one of the few recognized solutions (RAHMAN
SERESHT, 2011).
According
to the classical theory of decision-making, a manager is who functions in a
pretty sure world, and then, selects a solution that leads to the best results (AHMADI,
2015).
Based
on behavioral decision-making theory, the behavioral decision-maker is faced
with limited information rather than being faced with a completely assured
world, and seems to act in uncertainty conditions (AHMADI, 2015).
Based
on the theory of constraints, the managers should recognize resistance in its
various forms and use it to test and prepare change strategies and its
mechanisms to provide full and successful implementation of the process of
change (REZAEIAN; BABA AHARI, 2005).
2.2.
The
managers' types of decision-making
There
are fifteen types of decision-making for senior executives as follows:
a)
The single-stage or static decision-makings (at once
decisions) that the decision-maker focuses on the results of one stage and does
not consider the next steps and their results.
b)
The multi-stage and protracted decision-makings in
which the aim is not only to obtain a good result in one step but to make a
series of choices made for achieving an appropriate overall results of them (MOHAMMEDAN;
HUSSEINI, 2014).
c)
Planned decision-makings that are made based on the
existing habits, rules and procedures.
d)
Unplanned decision-makings that are used for an issue
that has not been repeated enough so that a policy can be determined for, or it
is so important to require a specific approach.
In general, as the individual promotes in the chain of organizational levels, the ability to take unplanned decisions becomes more important (MOHAMMEDAN;
HUSSEINI, 2014).
e)
Usual decision-makings are ones based on policies, procedures and regulations that are already set to facilitate
the organization activity. Using them , while facilitating the flow of things,
leads the managers and staff to devote their time and energy for addressing
other activities or solving new problems rather than repetitive and routine
issues (ALAGHEBAND, 2012).
f)
Unusual decision-makings include decisions that are
novelty, unique and not repetitive. They are risky and costly, difficult to be quantitatively assessed, involving long- term
commitments, requiring foresight and therefore, the probability of
error is high in their process.
g)
Institutional or organizational decision-makings are
those that are made by domestic managers in relation to formal - administrative
tasks proportionate to their authorities.
h)
Personal decision-makings are decisions that one
takes, which are based on his/her personality traits.
i)
Individual decision-makings evaluate cases in which
the manager makes decisions individually and then announces the decisions to
the staff groups.
j)
Advisory decision-makings (consulting individual with
the people) are decisions in which the manager speaks with some of the staff
about the problem, and becomes informed of their views. Then, based on consultation with persons,
he will make the decisions.
k)
Advisory decision-makings (consulting with the group)
are a type in which the manager introduces the issue or problem to the staff
groups during a meeting. The staff views are expressed during the group
consultation, and finally, the director makes the decisions by using the group
comments and opinions.
l)
Facilitating decision-makings (facilitate the
decision-making) are those in which the manager describes the framework of
decision-making in the role of a facilitator in addition to defining the
problem. The purpose of the director is to develop agreement on the issue and
decision making, while imposing his views on groups at the same time.
m)
Delegating decision-makings are those that the staff
makes with the permission of the manager and within the developed framework. In
this method, the manager does not play any direct role in decision-making until
being implicitly asked.
n)
Structured decision-makings are the well-defined ones,
in which the decision-maker is aware of the extent and time of adoption and
implementation of the decision and is autonomous in selecting one of the
decisions.
o)
Non-structured decision-makings include decisions that
are not clearly defined. Also, the exact time of making the decision, the period of the decision-making process and its
implementation time are not clear as well (GHOLIPOUR, 2014).
2.3.
Methods
and techniques of decision-making
There
are eleven methods of the decision-making as follows:
a)
The standard six-step method of decision-making that
includes six stages of identifying the problem, analyzing the problem,
determining the criteria of selecting the solution, proposing solutions,
choosing a solution, and implementing the solution.
b)
The 1-3-6 method pf decision-making: In this method,
everyone can say anything that comes to their minds freely. However, they
should avoid destructive criticism and conflict and long and boring speeches.
The method takes its name from how the group members work. Thus, first one,
then a three-member group, and then, a group of six people are formed to make
decisions.
c)
Delphi technique is designed for groups that are not
able to meet in person (MOORHEAD; GRIFFIN, 2008). The employment of this
technique is useful when the professionals are scattered far from each other,
and keeping the names of the members participating secret is desired, or when
linking between the specialists is difficult because of differences of opinions.
d)
The method of creative thinking is a skill in which an
individual acquires new ideas or relationships through combining the
problem-solving and decision-making skills and achieve the ability of detection
and selection of new solutions.
e)
Decision-making methods based on influencing factors
are approaches in which the enterprise managers use different methods of
decision-making due to the various influencing factors such as individual
characteristics, the organizational structure of the workplace and the cultural
contexts of the environment. Hofstede[1]
(1980) believes that the continued use of a decision-making procedure
considerably depends on the cultural features of the subordinates.
f)
Decision-making methods based on the cognitive
complexity and the task: In this category, the methods of decision-making are
divided into conduction, conceptual, analytical and behavioral methods with
regard to two factors of cognitive complexity or ambiguity and task-orientation
and people-orientation (GHOLIPOUR, 2014).
g)
Methods of decision-making by using leadership styles
theory: In this class, the researchers have classified the decision-making
methods using the theory, including the ordering, delegation, participatory and
sale styles in the range between the two areas with "full authority"
(arbitrary) and with "delegating full authority" (GHOLIPOUR, 2014).
In leadership theory, the leadership style used in the treatment of individuals
or groups depends on the readiness level of people whom the leader is trying to
influence.
h)
Arbitrary method: In this method, the decision-maker
decides by his own way and notifies it for implementation.
i)
Advisory method: In this method, the decision-maker
consult with the subordinates and the organization members as well as experts
and people with knowledge on the subject of consultation and makes a decision
based on information and rationality.
j)
Participation method: In this way, decision-making is
done with the participation of other members.
k)
Delegation method: In this method, the organization
manager delegates the decision-making authority to his subordinate managers or
a group of people in the form of policy-making or decision-making council in the company or organization (GHOLIPOUR, 2014).
2.4.
Decision-making
models and patterns
Five
decision-making models are as follows:
a) Garbage
Can model that specifically adapts to the conditions in which the technology
environment is not fully understood and the decision-makers are faced with
ambiguity and uncertainty.
b) Management
by objective model (MBO): In this decision-making model, the decision
objectives are developed in the first place, since in decision-making model
based on objective, the focus is on goals.
c) Contingency
decision-making model: The use of contingency approach in decision-making implies
that the decision-making process and implementation of each decision depends on
environmental situation and somehow to circumstances and conditions the
organization is faced with.
d) Scientific
decision-making method: In the method, statistics, mathematics and computerized
simulation are used. This method is used where the problems are analyzable, and
the variables can be also identified (KARIMI, 2012).
e) Intuitive
decision-making model: This approach is used in turbulent and unstable
environments where the correct information is not available or in unknown
situations. In this decision-making method, the manager has not a clear logic
in relation to its decision accuracy. However, relying on his inner vision and
acumen, he does what he thinks is right is at that moment.
2.5.
Changes
in the legal environment or extra-organization factors
The
organization environment includes all factors that are outside the boundaries
of the organization or potentially affect all or a part of the organization.
The close external environments that cause change are as
follows: Competitors, suppliers of the requirements, increasing loss of
resources, government agencies (and even their numerous and various
regulations), and the customers (whose priorities change offhand).
Also,
the distant external environment causing changes in the organization are as
follows: Economic and social conditions, political parties, technology
development that all should be predicted and evaluated and involved in
decision-making of the senior managers (HAZER, 1995).
Environmental
or extra-organizational changes either occur in public places, namely in the
political, economic, social, technological, legal, cultural and religious areas
or in the components of operating environment (industry), including customers,
suppliers of raw materials, competitors and the government.
2.6.
Types
of intra-organizational changes
Changes
influencing due the decision-making process occurs within the organization as
well as in the environment. Different types of intra-organizational changes are
as follows:
a) Passive
change that is the organization's response to the clear and present need for
change.
b) The
predictive change that begins without present clear and external demand and may
begin to benefit in a competitive advantage or to face with the events that are
expected to occur in the future and disturb the stability.
c) Modifying
change that occurs when the change is not caused by an urgent need. In this
type of change, the organization seeks to achieve better ways for strategic
vision by defending it (HAY, 2011).
d) Adaptive
change, which is a reactive and gradual response done in response to the
emergent necessities of change.
2.7.
Research
background
Decision-making
refers to mental (cognitive) processes that lead to selection of an action
among the alternative measures. Decision-making is the main core of and
planning, can be considered synonymous to the concept of management (MOHAMMEDAN;
HUSSEINI, 2014).
Since
the management method of managers is manifested in the kind of decisions made
by them and as decision-making is an integral and major part in determining
organizational goals and policies, organizational design, in choices made and
in all management actions, the importance of decision-making can be realized (RAFIEE,
1996).
The
success or failure of any organization in achieving its goals is subject to
having reasonable and rational policies and programs, arranged organizing,
accurate decision-making and having human and material resources. Taking
correct decisions that represents applying the correct and optimal style of
management can maximally take advantage of the available facilities and warn
the managers of making ill-considered and incalculable decisions (RAFIEE, 1996).
Simon
(1960) suggests that decision-making involves three basic steps: Determining
the position of decision-making, recognizing the possible methods to act and
choosing among the methods. Enforcing the decisions can be considered included
in the decision-making process. Thus, the manager who should implement the
approved policies – or the decisions made on the implementation of specific
policies – will face with a series of issues and problems that need
decision-making (RAHMAN SERESHT, 2011).
Griffith
(1959) considers decision-making as the heart of the organization and
management, and believes that all of the functions of management and
organization's dimensions can be explained in terms of the decision-making
process. Allocation of resources, communication network, formal and informal relationships
and the realization of the organization' goals are controlled by
decision-making mechanisms. Therefore, decision-making is the key to understand
the complexities of the organization and management performance (RAHMAN
SERESHT, 2011).
The
creativity impact on improving the management decision making shows that there
is a significant relationship between management's decision-making and
improving the employees' performance. Most of the governorates' managers
believe that they should increase creativity and innovation through research
and investigation to make better decisions. The more creative and risk-taking
managers would be able to make better, more dynamic and faster decisions (SARFARAZI;
SEPEHRNIA; KAVOOSI, 2011).
In
Islamic management, several factors are influencing the decision-making that
attention to them can have a significant impact on decision-making process and
its implementation. Three of these criteria are: Consultation,
right-orientation and trusting God. Considering all these factors, the decision
would benefit from a proper performance (BAHRAMI; KHEYBARI; NOORI ALAVICHEH,
2013).
Also,
the results of a study on the effects of stress caused by the organizational
factors on the quality of management decision making indicated that that the
organizational factors of stress have been effective on the quality of
decision-making of managers in the D.M.T[2]
company in Isfahan Province (ABZARI; EBRAHIMI KANI, 2001). The quality of corporate
executives decide D.M.T been effective in Isfahan province
Change
is a fact that the individuals, groups and organizations need to consider for
their continuous survival and make it as a priority. Since today, the internal
and external factors of the organization have much dynamics that can change the
existing facts, and the organizations are forced to move from the status quo
towards the ideal situation (MOQIMI, 2014).
In a
study, Trader concluded that the acceptance of change by the employees is an
important factor in successful implementation of organizational change and
suggested contribution as one way to create acceptance (TRADER-LEIGH, 2002).
3. METHODOLOGY
3.1.
Type
of research
This
research is an applied survey based on results. According to objective, it is a
descriptive – explanatory survey. Based on the relationship between the
variables, it is a correlative research. Based on time, it is sectional.
3.2.
Research
Variables and their components
In
this study, independent variable is the changes in the legal environment
factors, and the dependent variable is the "decision-making process of
public managers". The independent variable of "change" has seven
following components:
a) Inconsistency
in laws and regulations (discrepancies)
b) The
plurality and multiplicity of rules and regulations on a subject
c) Diversity
and newness of laws and regulations
d) The
severity of changes in the financial, human and informational of the
organizational
e) The
duration of laws and regulations (duration of the regulations validity)
f) The
extent of change effectiveness in laws and regulations of the organization (the
affected areas)
g) The
amount and capacity of changes by the organization and office
Three
components of the dependent variable (decision-making) include: Data
collection, data and information analysis, selecting the desired option and
execution of the decision. In this study, the purpose of the data collection
quality consists of methods for gathering data and information, number and
validity of resources used. Also, the quality of data and information analysis
refers to the methods and tools used to analyze the data, while the quality of
the implementation of the decision includes the speed of implementation and the
enforcement rate of the decision.
3.3.
Research
Hypotheses
The three
hypotheses of this survey are as follow:
a) The
dimensions of changes in the legal environment affect the quality of data and
information collection.
b) The
dimensions of changes in the legal environment affect the quality of data and
information analysis and selecting the desired option.
c) The
dimensions of changes in the legal environment affect the quality of selecting
the optimal choice and implementation of the decision.
4. CONCEPTUAL RESEARCH MODEL
Figure1: Conceptual Research Model
4.1.
Target
population
The
population of this study included all general managers, directors
administrative, Administrative and financial and support assistants,
Accountants and financial managers, executive directors,
deputies and managers of Executive agencies of Zanjan province in 2014 as
decision-makers or decision-builders, having the authority and responsibility
of identifying, financing, commitment, confirming, transference and payment
adaptation with laws and regulations.
study
population was 123 people that evaluated in the form of a census.
4.2.
Data
collection tool
The data collection instrument was questionnaire that
contains 21 questions that each one has a five- option response in the Likert scale.
Regarding the effectiveness rate, the seven indicators of legal environment
change are as follows:
a)
Diversification and newness of laws and regulations
b)
The multiplicity of laws and regulations
c)
Contradiction in the laws and regulations
(discrepancies)
d)
Rules and regulations duration (length of credit)
e)
The effectiveness extent of laws and regulations in
the organization (affected areas)
f)
The intensity of change in the financial, human and
information resources of the organization
g)
The amount and capacity of accepting changes by the
organization and office on the quality of the decision-making process.
Thus,
the questions 7 to 13 of the questionnaire evaluate the impact rate of change indicators
of the legal environment on the quality of the data collecting process. Also,
the questions 14 to 20 of the questionnaire examine the effect of legal
environment change indicators on the quality of data and information analysis
process, while the questions 21 to 27 of the questionnaire evaluate the impact
of legal environment change measures on the quality of the decisions
implementation process. In addition, through 6 questions, the demographic
characteristics of the target population including gender, education level,
age, work experience, organizational level and field of study, was collected.
4.3.
Data
collection method
The
questionnaires were duplicated as Hard Copy by the number of the target
population members (n= 123) and were distributed in-person among members of the
target population by the researcher and his colleagues as the financial
controllers. They were collected after the completion by the managers during
about two months.
4.4.
Questionnaire
validity
The
face and content validity of questionnaire were calculated by 20 decision-making experts in the statistical population, which on
average was 0.74, greater than the mean value of 0.5.
4.5.
Questionnaire
reliability
In
order to evaluate the questionnaire
reliability, the Cronbach’s alpha coefficient was calculated that the
reliability level of the questionnaire was equal to 0.87, which is higher than
the index value of 0.70. The reliability rate was calculated as 85% by re-test method.
SPSS statistical package was used for the calculation and analysis of data. The
Cronbach's alpha value for each search constructs is shown in table1.
Table1:
cronbach's alpha of each search constructs
|
|
Cronbach's alpha |
|
The impact of legal environment changes on the quality of data collection |
0.84 |
|
The impact of legal environment changes on the quality of data analysis |
0.83 |
|
The impact of legal environment changes on the quality of implementation
of the decision |
0.86 |
|
Entire alpha |
0.87 |
4.6.
Data
analysis method
Data
analysis was performed using descriptive statistics (frequency and percentage)
and inferential statistics (chi-square test, Friedman test, Shapiro-Wilk test
or Kolmogorov-Smirnov test) and by SPSS software. To examine the normal
distribution of data for each of the variables, the Shapiro-Wilk test or
Kolmogorov-Smirnov test was used to ensure the normality of data.
Also,
using Friedman test, one can say that which change indicator of the legal
environment has the maximum and which has the minimum impact on the quality of
the decision-making process. As such, using the chi-square test, the impact
rate of changes in the legal environment on the quality of data collection,
quality of data analysis and quality the implementation of the decision were
examined.
Considering
α = 0.01, to judge about H0 and H1, if the sig value was smaller than the
considered error rate, the H0 hypothesis would be rejected and the H1
hypothesis would be accepted; if the sig value was greater than or equal to the
error rate considered, the H0 hypothesis was accepted and the H1 hypothesis was
rejected.
4.7.
Demographic
characteristics of the target population members
The
majority of the target population had master degrees and were middle-aged (70%
between 36 and 45 years) with experience veteran (80% over 16 years), and the
absolute majority of them had educated in the fields of Management and
Accounting. 123 people in organizational posts, including general managers,
directors, administrative, financial and support assistants, accounting and
financial managers, other managers and deputies. The details of the target
community members' characteristics are shown in Table 2.
Table2:
Demographic characteristics of the target population members
|
Gender |
Male |
116 |
|
Female |
7 |
|
|
Education level |
Bachelor |
46 |
|
Associate |
3 |
|
|
Master |
73 |
|
|
Ph.D. |
1 |
|
|
Age range |
30 - 35 |
5 |
|
36 - 40 |
34 |
|
|
41 - 45 |
53 |
|
|
Over 45 |
31 |
|
|
Work experience |
5 - 10 |
2 |
|
11 - 15 |
22 |
|
|
16 - 20 |
50 |
|
|
Over 20 |
49 |
|
|
Field of Study |
Management |
54 |
|
Accounting |
42 |
|
|
Economy |
4 |
|
|
Other disciplines |
23 |
4.8.
Testing
the normality of data distribution in the population
To
examine the normal distribution of data, the H0 and H1 hypotheses were tested
at 5% error level. H0 show the normal
and H1 show the non-normal data distribution, respectively.
Table 3: The
results of the normality of the data regarding each variable
|
Kolmogrov – Smirnov test |
Shapiro-Wilk test |
|
||||
|
statistic |
Statistic |
Degrees of freedom |
Significance |
|
||
|
123 |
.003 |
.936 |
123 |
.000 |
The impact of legal
environment changes on the quality of data collection |
|
|
.111 |
123 |
.001 |
.974 |
123 |
.018 |
The impact of legal
environment changes on the quality of data analysis |
|
.161 |
123 |
.000 |
.923 |
123 |
.000 |
The impact of legal
environment changes on the quality of implementation of the decision |
As the significance level (sig.) of
the two above tests is less than 0.05, thus, the data distribution in the
target population is not normal. This means in order to test the hypotheses,
the non-parametric tests should be used.
Prioritization of changes in the
legal environment factors based on the effectiveness on decision-making process
of the government managers
The
changes in legal environment factors can influence the quality of data
collection, quality of data analysis and quality of implementation of the
decision. Based on this test, we can say that which factor has the maximum and
which has the minimum effect.
H0 means that the ranks are the same among the groups.
H1 means that the ranks are significantly different at
least between the two groups.
Table 4: The
impact of legal environment change on the quality of decision-making process
The
factor of legal environment change in the implementation of the decisions stage
has the highest effectiveness (By 64%). The effectiveness rate of changes in
the data analysis stage is significant (46%). However, it is less than their
effect in the other two phases (first and third phases) of decision-making.
Table 5: The impact of legal environment
change on the quality of decision-making process
|
Sig |
Df |
Chi-Square |
|
.000 |
2 |
66.37 |
Given
the above table (Table5), and considering α = 0/01 regarding H0 and H1, and the
Sig value less than the error rate (0.01), we conclude that the difference
between the effects of these three different variables is significant at 99%
confidence level. In other words, the effect of "legal environment change
on the quality of the implementation of the decision" is in the first
rank, while "the impact of legal environment change on the quality of data
collection" and "the impact of the legal environment change on the
quality of data analysis" are respectively ranked second and third.
Comparison of
the effectiveness of legal environment change on three stages of the decision
making process of public senior managers
In
this analysis, H0 is equal to the lack of effectiveness of legal environment
change on the three stages of the decision-making process, while H1 is defined
as effectiveness of legal environment change on the three stages of the
decision-making process.
Table 6: Results of chi-square test for
the impact of legal environment change on the three stages of the
decision-making process of public senior managers
|
Chi-Square |
Df |
Sig |
|
|
96.780a |
2 |
.000 |
The impact of legal environment changes on the quality of data collection |
|
.073a |
1 |
.787 |
The impact of legal environment changes on the quality of data analysis |
|
118.293a |
2 |
00.0 |
The impact of legal environment changes on the quality of implementation
of the decision |
Considering α = 0/01, the H0
hypothesis about the impact of legal environment change on the quality of data
collection and implementation of decision is rejected. Then, the legal
environment change affects the first and third stages (quality of data
collection and quality of implementation of the decision), but it has no effect
in the analysis of data stage.
5. RESULTS & FINDINGS
a)
From the perspective of all senior and mid-level
managers, the impact of changes in the legal environment on the decision-making
process is at high and very high levels.
b)
The senior managers more than the mid-level managers,
and the mid-level managers more than the basic principals know the changes in
the legal environment effective in the decision making process. This means that
the higher management level, the higher effectiveness of the legal environment
on the decision. Thus, the correlation between the level of management and
effectiveness rate caused by legal environment changes would be positive and
direct.
c)
Among the four groups of managers, only and just the
financial managers and financial controllers evaluated the impact of changes in
the legal environment as average. The other three groups have found the effect
as high and very high levels.
d)
The differences between "the impact of legal
environment change on the quality of data collection", "the impact of
the legal environment change on the quality of data analysis" and
"the effect of legal environment change on the quality of the
implementation of the decision" are significant at 99% confidence level.
In other words, the effect of "legal environment change on the quality of
the implementation of the decision" is in the first rank, while "the
impact of legal environment change on the quality of data collection" and
"the impact of the legal environment change on the quality of data
analysis" are respectively ranked second and third.
e)
The effects of seven components of the legal
environment change on the three components of decision-making are prioritized as
follows:
Table 7: The
priority of the impact of legal environment change indicators on the quality of
data collection
|
Rating |
Assessment Indicators |
|
First |
Inconsistency in the laws and regulations (discrepancies) |
|
Second |
Plurality and multiplicity of rules and regulations on a subject |
|
Third |
Diversity and newness of laws and regulations |
|
Forth |
The severity of changes in the financial, human and information resources
of the organization |
|
Fifth |
Duration of laws and regulations (Validity duration) |
|
Sixth |
The impact extent of the laws and regulations in the organization
(affected areas) |
|
Seventh |
The rate and capacity of accepting changes by the organization and office |
Table
8: The priority of the impact of legal environment change indicators on the
quality of data analysis
|
Rating |
Assessment Indicators |
|
First |
Inconsistency in the laws and regulations (discrepancies) |
|
Second |
Plurality and multiplicity of rules and regulations on a subject |
|
Third |
The severity of changes in the financial, human and information resources
of the organization |
|
Forth |
Diversity and newness of laws and regulations |
|
Fifth |
The impact extent of the laws and regulations in the organization
(affected areas) |
|
Sixth |
Duration of laws and regulations (Validity duration) |
|
Seventh |
The rate and capacity of accepting changes by the organization and office |
Table
9: The priority of the impact of legal environment change indicators on the
quality of the implementation of the decision
|
Rating |
Assessment Indicators |
|
First |
Inconsistency in the laws and regulations (discrepancies) |
|
Second |
Plurality and multiplicity of rules and regulations on a subject |
|
Third |
The severity of changes in the financial, human and information resources
of the organization |
|
Forth |
Diversity and newness of laws and regulations |
|
Fifth |
The impact extent of the laws and regulations in the organization
(affected areas) |
|
Sixth |
The rate and capacity of accepting changes by the organization and office |
|
Seventh |
Duration of laws and regulations (Validity duration) |
6. DISCUSSION & CONCLUSION
a)
The legal environment change affects the quality of
data collection. In other words, it was found in evaluating the effectiveness
variation of legal environment change based on indicators such as diversity,
contradictions and discrepancies in the rules and regulations, the severity of
changes in the financial, human and information resources, the extent of impact
that the variable affects the quality of data collection negatively and
reversely. In other words, with greater intensity and rate of change of the
legal environment, the factors of identifying available resources, methods of
data collection and the reliability of resources needed for making high quality
decision is affected.
b)
The legal environment change will not affect the
quality of data analysis. In other words, after collecting the required
information on the issues, the factor of legal environment change would not
influence the methods and tools required to analyze the data and information.
c)
The legal environment change affects the quality of
the implementation of the decision. In other words, it was found in examining
the effectiveness of legal environment change variables that these variables have
a negative and impact on the quality of the implementation of the decision.
d)
To significantly increase the quality of the
decision-making process of top public managers, in the first step, the
contradiction between laws and regulations should be resolved.
e)
In the second step, by reducing the number of laws and
regulations on a subject, the quality of the decision-making process of top
public managers can be considerably increased.
f)
By reducing changes in the financial, human and
informational resources of the organization, the quality of decision-making
process can be increased for all senior and mid-level managers.
g)
From the perspective of all managers, the variety and
newness of rules and regulations should be reduced to enhance the quality of
the decision-making process.
h)
According to governmental senior managers, the impact
extent of laws and regulations in the organization (affected areas) is another
indicator to be improved for increasing the quality of the decision-making
process of the managers.
i)
In the eyes of all senior and mid-level managers,
increased rate and capacity of accepting changes by the organization and office
can improve the quality of decision-making by senior management.
j)
According to all the managers, increased longevity of
the laws and regulations (period of validity) can improve the quality of
management decision making process. To gather proper data and information in
the face of change, the managers can use two methods: Participatory method
(through formation of workshops and meetings, and act according to their
opinions) or consulting method (consultation with the target group with
knowledge on the changes).
Also,
the delegation method may be used for implementation of the decision. In this
method, the manager delegates the decision-making authority to his subordinate
managers, and also leaves his authority to a group of people defined in the
form of policy-making or decision-making council within the company or
organization.
In
this approach, the participation of subordinates in decision making leads to
their reduced resistance against the changes resulting from the implementation
of the decision. Also, their participation could accelerate the implementation
of decisions. For the participants consider themselves bound and commitment to
implement the decision and spend their ability to implementation it.
Also,
participation of the subordinates in decision-making will empower them and make
them to try to gain new information and think creatively. In addition,
utilizing the voluntary commitment of people willing to work and learn through
dialogue and not through the issuance of official orders is one way that can be
used in facing with change.
7. IMPORTANT NOTE:
This article is written based on a
master's thesis Mr. Mohammad Reza Ahmadi of the Azad University of Zanjan, and
doctor Mostafa Jafari (first author) was the thesis advisor. It should be noted
that Mr. Ahmadi did not have any participation in the formulation of this
article.
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