Profits or Employment: Priorities of Future Managers

Profits or Employment: Priorities of Future Managers

Grzegorz Wojtkowiak (The Poznań University of Economics and Business, Poznań, Poland)
DOI: 10.4018/IJSECSR.2018070102

Abstract

The aim of this study was to identify possible differences between the basic grounds behind managerial decisions taken by university students in different countries. This paper was inspired by the article ‘Profit, Layoffs, and Priorities' by Daniel G. Arce and Sherry Xin Li, who repeated and extended A. Rubinstein's research. As the result of research, a hypothesis was tested. This was that with when students of technology are compared with economics students, they tend to be more driven by the need to maximise profit than to secure the interests of employees. Moreover, the research was expanded and as the result, another hypothesis was created that: the students who have a relatively stable job are more driven by the need to maximise profits than the wish to maintain a higher level of employment. The hypothesis was not verified but the base for future discussion was prepared.
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Behavioural Aspects Of Decision-Making

For many years, corporate social responsibility (CSR) has been one of the major topics of economics, generally omnipresent and repeatedly discussed by scholars and practitioners. However, as proven on many occasions, it is much easier to make theoretical declarations than to actually implement them in real life, and in the times of recession, they are even harder to apply to strategic decision-making (Fehre & Weber, 2016, p. 1424).

Nevertheless, social aspects (in a broad sense) certainly do have an effect on managerial decisions. Managers take into account not only social determinants, consequences, the internal and external impact of their choices, but also their beliefs, feelings and values which often bias the logic and rationality behind the decision-making process. Social issues are recognised as one of the behavioural aspects which determine managers’ conduct, thus affecting their decisions.

According to traditional economics, people take decisions with the maximisation of the so-called utility function in mind. Behavioural economics studies how people take decisions in uncertain situations without having the full picture of their results, suggesting that such decisions may not always be optimal. Taking into account psychological and economic aspects, behavioural economics claims that cognitive biases often prevent people from taking rational decisions (Ariely, 2009, p. 80).

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