Practitioner's View on the Future of Economic Decision-Making in Project Management: A Research Note

Practitioner's View on the Future of Economic Decision-Making in Project Management: A Research Note

Brian J. Galli (Assistant Professor and Graduate Program Director, Master of Science in Engineering Management Industrial Engineering, Hofstra University, USA)
Copyright: © 2019 |Pages: 23
DOI: 10.4018/IJAIE.2019070103

Abstract

As of now, the best means to plan for the future is project management because it has been proven effective in problem-solving and generating solutions. Few projects entail economic decision-making because of the cost factor, but the wrong decisions can be made because of the complications that come with making economic decisions. However, financial decision-making does not only entail gathering information and making decisions accordingly. The economy must be analyzed and the future economy must be estimated for any economic decisions to be viable. This study highlights the future trend, as well as the significance of economic decision-making within project management. Furthermore, it tests several factors: economic decision-making influence, creativity, risk profile, and the management team size for a successful project. Primarily, this study will assess how significant economic decision-making is in project management.
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Introduction

The Future of Economic Decision-Making in Project Management

There are many fields of application that involve mathematical methods and computer technology, but human activity is still essential. With decision-making, the outcome can be very serious because it is a matter of selecting a strategy that can result in certain consequences. Thus, decision-making is considered a unique type of human activity because it entails the selection of one solution from various options (Best, 2016). It is a complex process that requires significant mental effort for those who have made such a choice in business or personal environments (Galli, 2018b; Caro, Briggs, & Siebert, 2012). Thus, methods that guide people to understand any wants and needs are valuable, as one can assess desired goals and available resources for any position.

The most helpful decision-making methods were emphasized by practitioners and theoreticians for many years. Also, economists built on such methods, as well as specialists in state or administrative management, attorneys, and the military (Caro, Briggs, & Siebert, 2012). Recently, the focus has shifted to how decisions are made and how it is helpful during difficult problem-solving situations. During decision-making, problems are addressed from unified positions, rather than from the particular areas of application (Caro, Briggs, & Siebert, 2012). Various studies illustrate that there are shared characteristics in human behaviors during economic, political, social, and technical decision-making situations. Though human behavior is varied, behaviors are alike in given circumstances to determine the standard methodological tasks for the specific decision theory (Tatić & Činjarević, 2016).

Progressive and project management are needed to address institutional and social issues (Caro, Briggs, & Siebert, 2012). Project management has evolved into the contemporary method for planning for the future, as well as addressing current issues in the community. Thus, one must study the best practices for projects that will guarantee success (Fox, 2016). When a project fails, one must pinpoint what went wrong in a total or partial manner.

This study will highlight future economic decision-making in project management. Furthermore, economic decisions involve financial decisions, as well as decisions made daily from an individual level to banks within multiple countries. Globalization has caused the economy to become interdependent, so it is difficult to assess. Thus, this evaluation is done with models for predicting future economic movements, as economic decisions are best made by accurately analyzing the economic situation. This study attempts to find if economic decisions lead to a project's success or failure.

Problem Statement

Social and economic environments are fluctuating significantly. Thus, project managers undergo certain challenges because they must always make good decisions, but it is not easy to do so in a complex environment (Fatfouta et al., 2015). Previous methods may not be applicable to current situations, so one must understand the future economic decision-making in project management. This study aims to uncover mathematical models for future economic decisions in project management. Additionally, this study seeks to research the applicable mathematical models and methods in a project environment. Lastly, this study aims to research any factors that need consideration when applying mathematical models.

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