The purpose of this study is to examine the relationship between constraints in decision making and corporation performance. It was conducted as follows: investigating factors of constraint on reasonable decision making through the reference of the re...
The purpose of this study is to examine the relationship between constraints in decision making and corporation performance. It was conducted as follows: investigating factors of constraint on reasonable decision making through the reference of the related papers, and the empirical studies to varify relationship between two variables. Through the investigation of related papers on the constraints, two constraints were indicated for empirical studies: cognitive constraints and affiliative constraints. And the empirical studies was performed as the questionnaire survey to the middle management staff, and data collected was validated by the statistical method. As a validation result, it apprears each constraint partially influences corporation performance, that is, the more constraint, the less increasing rate of net sales. But no relationship is found between each constraint and the rate of net profit. Regarding the effect degree of two contraints on corporation performance was different: the effect degree of affiliative constraints were twice or more than the cognitive constraints. The research results give us the following suggestions: company should be concerned about constraints in decision making for the middle management staff and tried to find out to get rid of them, particularily affiliative one. This kind of actions can be very helpful for the improvement of corporation performance.