S Ulich 2021
S Ulich 2021
S Ulich 2021
Article
Management Styles and Decision-Making: Pro-Ecological
Strategy Approach
Adam Sulich 1, * , Letycja Sołoducho-Pelc 2, * and Marcos Ferasso 3, *
Abstract: Management style and decision-making create an organization’s culture and influence its
performance also in the pro-ecological dimension. Therefore, this paper’s originality lies in how it
explores the effect of management style to inform our understanding of decision-making when using
a sustainable approach. However, the cause-and-effect relations between decisions and management
style remain vastly unexplored. The paper’s aim is to explore whether the management style serves
as a basis for decision-making or if it is an effect of decisions. This research addresses a research
question: is the management style a basis for decision-making or an effect of the decisions in a pro-ecological
context? We used a comprehensive literature review by using inductive and deductive approaches to
analyze the relations between decision-making and management style. The paper also illustrates how
organizational culture images can inform accounts of business realities influencing organizations’
green strategies. The analogies followed relations between color symbol and guiding metaphor. The
Citation: Sulich, A.; Sołoducho-Pelc,
L.; Ferasso, M. Management Styles
article presents a theoretical discussion on the influence of management style on decision-making in
and Decision-Making: Pro-Ecological the organization, based on original literature research in pro-ecological strategy related decisions. As
Strategy Approach. Sustainability a result, a decision-making style model is proposed. This nonorthodox approach might open up new
2021, 13, 1604. https://doi.org/ avenues of thought in the field of decision-making, management styles, and pro-ecological strategy.
10.3390/su13041604 Theoretical and managerial implications and directions for future research are also addressed.
Academic Editors: Keywords: managerial decision; management metaphors; organizational culture; pro-ecological
Andrzej Raszkowski, Gerard J. Lewis strategy; management style; sustainable development
and Alessio Ishizaka
Received: 5 January 2021
Accepted: 29 January 2021
Published: 3 February 2021
1. Introduction
dominant view presents the management styles as metaphors [18–21]. An in-depth analysis
of organizations, in the context of the relations between management style and decisions,
is underdeveloped [22,23]. Therefore, in this research, we address the following research
question: is management style a basis for decision-making or an effect of the decisions in a pro-
ecological context? This paper’s primary goal is to answer this scientific question, which
reflects the presented research gap.
In this literature review article, we set future research assumptions by focusing on the
analysis of explicit components of the decision-making process [24]—i.e., the choices [8]
and the key green decision-makers [4]. Therefore, this paper is an overview of some of
the most common management styles [18,23] combined with the decision-making factors
from a sustainable development and greening business approach [25]. This paper is a
comprehensive literature review and serves the prepare planned research with public ad-
ministration entities and organizations dedicated to their management styles and relations
between them in the matter of pro-ecological strategies and renewable energy investments.
This research contributes to the existing body of literature as follows. We postulate that
management style is more fundamental to the process and is not an effect or a result of the
decision-making process in the ecological context. We illustrated our research with our own
proposed figures and model for a pro-ecological sustainable strategy approach. There are a
group of endogenous (internal) organizational factors that influence managers’ decision-
making. This approach allows changes in the organization and evolution of management
style. Among the most important factors are those creating an organizational culture
(with shared views, values, and ideas) related to the organization’s functioning in the
changing business environment [26,27]. Another contribution is that our findings proved
and allowed us to set future research assumptions in the pro-ecological strategy approach.
The article is organized as follows. Firstly, after this introduction, we present a litera-
ture review divided into six subsections, each dedicated to one specific aspect. Secondly,
we discuss our literature review. Thirdly, we consider our research assumptions to be
further discussed. In this section, we also present managerial implications and future
research proposals and the limitations of this study.
2. Theoretical Background
2.1. Organization Culture
Management is science often associated with business [28,29], economics, psychol-
ogy [30], and philosophy [31,32]. In addition to management, a harmonization [30] of
activities within the organization is achieved as a result of acceptance by the participants
of the organization of the system of norms [33] and values embedded in its organiza-
tional culture relating to shared views, ideology, values, beliefs, and expectations [34,35].
There is no consensus on the organizational culture definition; however, its impact on
organizational performance and results are widely recognized [36], especially when a pro-
ecological approach is measured [37]. The internal coherence of this system and the degree
of adjusting the management mechanisms used in the organization are determinants of
the effectiveness of the organization’s functioning [3,38]. Commanding the correctness
of the above observation, we can indicate that the organizational culture creates a kind
of “decision algorithm” that gives meaning and direction to actions carried out by the
organization [39–41].
Failures in adjusting the management mechanisms to the organizational culture cause
the emergence of the phenomenon of dissonance in decision-making processes, which leads
to a reduction in the effectiveness of the organization’s functioning [41,42]. Organizational
culture is not a time-stable monolith [40,43]. On the contrary, under the influence of
changes taking place in the environment, it is subject to changes and transformations [25].
These changes have are slow and related to different strategies [26]. The complexity
of transformation processes is deepened by the nature of organizational culture [25,44].
A culture [45], is a factor stabilizing an organization’s functioning [46] and organizing
decision-making processes. On the other hand, this can be a factor inhibiting the process
inant in the organization [47]. Changes in the organizational culture and management
style are possible but based on a discussion of desirable behaviors, aligned with the
adopted profile of a desirable and constructive organizational culture. In the pro-ecologi-
cal strategy context, failure and instability occur when there is a dissonance between the
Sustainability 2021, 13, 1604 announced strategy and its execution. Employees and customers are very much aware 3 of 18of
the need for conservation and sustainability and they lose their trust if such phenomena
appear [48,49].
Organizations
of introducing changescreate
to thean management
environment stylefor decision-making
[1,23]. However,that impacts
there should the
beorganiza-
a good
diagnosis of the organization’s culture to assess which type of behavior is dominant in theas
tions themselves and the natural and business environment, which can be recognized
organizational
organization [47].culture
Changes [50].
in This internal environment,
the organizational which
culture and supports style
management the decision-mak-
are possible
ingbased
but process,on can be described
a discussion as an organizational
of desirable culturewith
behaviors, aligned [23,27].
the There
adopted is always
profilean of or-
a
ganizational
desirable culture, suchorganizational
and constructive as weather or atmosphere
culture. In the[51,52], which arestrategy
pro-ecological terms often asso-
context,
ciatedand
failure with the organizational
instability occur when management styles orbetween
there is a dissonance organizational characterstrategy
the announced [51] or spirit
and
[53]. These similarities to the natural environment elements are
its execution. Employees and customers are very much aware of the need for conservationjustified due to changes
thesustainability
and pro-ecologicaland approach
they lose induces in the
their trust if organizational
such phenomena culture
appear [54,55]. The changes in
[48,49].
the Organizations
organization’s culture
create an areenvironment
important forfor change management,
decision-making motivation,
that impacts the andorgani-
leader-
ship (Figure
zations 1) [56].and the natural and business environment, which can be recognized
themselves
Organizational
as organizational managers
culture are internal
[50]. This responsible for balancing
environment, which the supports
relative stability of the
the decision-
organizational
making process,culture
can be [33,57].
described This asbalance guarantees culture
an organizational the maintenance of theisorganiza-
[23,27]. There always
antion’s identity and
organizational its constant
culture, such astransformation. This balance
weather or atmosphere is a condition
[51,52], which are forterms
keepingoften up
with changes
associated withinthe
theorganizational
environment [57] while beingstyles
management awareoroforganizational
the difficultiescharacter
that arise[51]both
orinspirit
the processes
[53]. Theseofsimilarities
diagnosingtoand transforming
the natural organizational
environment elementsculture [58]. The
are justified due to im-
portancethe
changes of pro-ecological
managers as an organization’s
approach induces leaders
in theand their influence
organizational on organizational
culture [54,55]. The
changes
culture in the organization’s
is presented in Figureculture
1. are important for change management, motivation,
and leadership (Figure 1) [56].
Figure1.1.Management
Figure Managementstyle
style and
and organizational
organizational culture
culture relations.
relations. Source:
Source: Authors’
Authors’ elaboration
elaboration based
based on [36].
on [36].
Then, leadership
Organizational is an immanent
managers part offor
are responsible thebalancing
managerial theactivity
relativeand, through
stability mana-
of the or-
gerial functions,
ganizational managers
culture influence
[33,57]. This balancetheguarantees
organization’s culture [23,46].
the maintenance On organization’s
of the the other hand,
their management
identity styletransformation.
and its constant influences the leadership andisculture
This balance in thefor
a condition organization
keeping up[56,59].
with
The management style is related to the organizational culture and
changes in the environment [57] while being aware of the difficulties that arisetherefore should
bothbein a
balance between these two organizational characteristics. The interactions
the processes of diagnosing and transforming organizational culture [58]. The importance between man-
ofagement
managers style andorganization’s
as an organizational culture
leaders dotheir
and not indicate
influenceone
onelement as superior—they
organizational culture is
are equal.in Figure 1.
presented
Then, leadership is an immanent part of the managerial activity and, through manage-
rial functions, managers influence the organization’s culture [23,46]. On the other hand,
their management style influences the leadership and culture in the organization [56,59].
The management style is related to the organizational culture and therefore should be a
balance between these two organizational characteristics. The interactions between man-
agement style and organizational culture do not indicate one element as superior—they
are equal.
currently the subject of research in organizational theory and strategic management [63]
and has become a widely known and well-developed area in business management.
Decisions can be defined as a set of choices between proposed solutions, and can be
expressed in the sentence: “When we make choices, we make a decision” [64]. Decision-
making is a cognitive process that results in the selection of alternatives and the choice of
options or directions of action. In a theoretical approach, decision-making is an intellectual
and rational process. Decisions are taken based on selecting criteria or strategies [25]. In
business practice, decision-making is a less specific process and is influenced by many
factors, such as values, norms, interests, or context. Decision-making is regarded as a
concordance test showing the match between subjective factors related to the decision-
maker and the expected impact of alternative options or actions [65]. Decision problems
require the consideration of many issues and factors and, therefore, they become more and
more complicated because of [62]:
1. having complicated, comprehensive structures;
2. relating to multiple objectives;
3. associatation with uncertainty and risk;
4. relation to multiple stakeholders.
Making decisions means also making choices and solving problems. In a broader
sense, managing an organization concerns setting goals and ways of achieving them and
shaping the organization’s future. Conscious and rational, as opposed to random, choices
are made in the management decision-making process [66]. Making choices should be
preceded by making the right decision. Such a decision is based on relevant information
and brings the expected results. The decision is a process, not a matter of the moment.
The decision itself is important, but most people remember the result of the decision. In
the decision-making literature, the mechanisms are not precisely defined [1,67,68]. The
judgment of the decision-making process is distorted by the influence of intelligence,
intuition, common sense, and luck. Organizations use decision trees, influence diagrams,
simulation models, and alternative forms of decision support to deal with the complexity
of decision-making problems and help make a decision. Additionally, the need to integrate
management with psychological aspects of decision-making [62] is currently underlined.
Decision-making takes place when there are alternative choices that could be made.
One solution is selecting a decision from several potential variants. The choice of a variant
should consider various factors, such as an achievement of the organization’s goals, re-
sources, regulations in force, planned effects, and expected benefits. The dilemma between
priority of decision-making process and management style is comprehensively presented
in Figure 2. This figure shows the decision-making chain as a process of decision-making
and its effects on making a decision. At the exit, i.e., before making a decision, internal
factors (related to the organization) and external factors (determined by the environment)
were taken into account [69,70]. In turn, at the exit—after making a decision—a solution is
chosen and the organization can assess the effects (positive or negative).
Figure 3 shows some critical steps in the decision-making process [46] as a cycle
(not a chain, as in Figure 2). Decision-making is usually preceded by decision analysis.
This analysis step allows us to better understand the problem [71]. The decision-making
process precedes the collection, selection, and analysis of information. As a result, the
decision-maker should obtain knowledge that determines the decision-making process [62].
This provides a framework that will help clarify and formulate the judgment. The starting
point is the judgment of the situation or problem.
Sustainability 2021, 13, 1604 5 of 18
Sustainability 2021, 13, x FOR PEER REVIEW 5 of 19
Figure 3 shows some critical steps in the decision-making process [46] as a cycle (not
a chain, as in Figure 2). Decision-making is usually preceded by decision analysis. This
analysis step allows us to better understand the problem [71]. The decision-making pro-
cess precedes the collection, selection, and analysis of information. As a result, the deci-
sion-maker should obtain knowledge that determines the decision-making process [62].
This provides a framework
Figure that will helpchain.
2. The decision-making clarify and formulate
Source: the judgment. The starting
Authors’ elaboration.
Figure 2. The decision-making chain. Source: Authors’ elaboration.
point is the judgment of the situation or problem.
Figure 3 shows some critical steps in the decision-making process [46] as a cycle (not
a chain, as in Figure 2). Decision-making is usually preceded by decision analysis. This
analysis step allows us to better understand the problem [71]. The decision-making pro-
cess precedes the collection, selection, and analysis of information. As a result, the deci-
sion-maker should obtain knowledge that determines the decision-making process [62].
This provides a framework that will help clarify and formulate the judgment. The starting
point is the judgment of the situation or problem.
Figure3.3.The
Figure Thecycle
cycleofofcrucial
crucialsteps
stepsininthe
thedecision-making
decision-makingprocess.
process.Source:
Source:Authors’
Authors’elaboration.
elaboration.
decision is conditioned by the awareness of the necessity to make choices and the assumed
effects of the decisions [80].
The benefits of a decision can be considered in various ways, most often from the or-
ganization’s perspective and other stakeholder groups [81–83]. Making a decision requires
a comprehensive view of the organization and its environment. It is not only economic
criteria that are important in this process. Ethics, morality, social responsibility, and,
more recently, sustainable development are factors that can shape the decision-making
process [16,80].
When making a decision, one should select an action variant [46]. There is a need
to consider the effects and benefits assessed from the perspective of the organization’s
goals and development in the long term [80]. The decision-maker should be responsible
for the consequences of the decision from the point of view of different areas and different
stakeholders [84].
into the strategy of the organization. The approach to environmental strategy can be reac-
tive or proactive [25]. Red and orange styles determine the choice of a reactive and brown
strategy, where companies act minimally, resulting from external pressure to formulate an
environmental strategy [15,41]. Green and teal management styles remain in opposition to
the brown strategy. They represent an active, open approach to green strategy, which is a
result of the organization’s priorities, values, and openness to new ideas and conditions for
sustainable development [91].
Brown
Pattern/Scheme;
Amber command and Army. hierarchies); (public school
No discussion.
control. The future is Stable and systems, police
the repetition of replicable departments);
the past. processes. Religious
organizations.
The goal is to beat the
competition; achieve
Multinational
profit and growth. Rigid
Innovation; companies;
Management by Procedures;
Orange Machine. Accountability; Investment
objectives (command Machine Oil;
Meritocracy. banks;
and control over Consultations.
Charter schools.
what, freedom
over how).
Focus on culture and The business is
Empowerment;
empowerment to known for Discussion;
Egalitarian
boost employee idealistic Democratic
Green Family. management;
motivation. practices decision;
Stakeholder
Stakeholders as a (Starbucks, Consensus.
model.
primary purpose. Zappos).
Green
Self-management
replaces the
Self-
hierarchical pyramid.
management; A few
Organizations are Living Independence;
Teal Wholeness; pioneering
seen as living entities, organism. Mindfulness.
Evolutionary organizations.
oriented toward
purpose.
realizing their
potentials.
Source: Authors’ elaboration based on [20,33].
psychologicalfactors,
psychological factors, not related
related to toknowledge
knowledgeand andprofessional
professional preparation,
preparation, playplayan an
im-
portant role
important roleininthe
thedecision-making
decision-making process
process [55,93]. The intuitive
intuitive thinking
thinkingandandreflexive
reflexive
approachofofdecision-makers
approach decision-makershave haveaasignificant
significantinfluence
influenceonondecision-making.
decision-making.AnotherAnother
featureisisCore
feature CoreSelf-Evaluations
Self-Evaluations(CSEs),
(CSEs),which
whichshapes
shapesthe thedecision-making
decision-makingprocess.process.As As
indicatedby
indicated by[1],
[1],this
thisfeature’s
feature’slevel
levelisisessential.
essential.CSE
CSEisisformed
formedatatan anaverage
averagelevel
levelthat
that
allowsavoiding
allows avoidingthe thetrap
trapofofoverconfidence
overconfidenceand andaffects
affectsthetheachievement
achievementofofbetterbetterresults.
results.
Decision-makers who
Decision-makers who make quick quickdecisions
decisionsuseusemuch
much information
information andand
come comeup with
up
many
with alternative
many alternativesolutions. TheThe
solutions. pace of decision-making
pace of decision-making is influenced
is influenced bybythe
theability
abilityto
tointegrate
integrate strategic
strategic decisions
decisions andand tactical
tactical plans
plans [96].[96].
MakingMaking a strategic
a strategic decision
decision in a
in a chang-
changing, turbulent
ing, turbulent environment
environment is difficult
is difficult [97] because
[97] because the changes
the changes are radical,
are radical, and and it is
it is diffi-
difficult to estimate
cult to estimate thethe course
course ofofchanges.
changes.The Theway
wayto to avoid
avoid making the wrong wrongdecision
decisionisis
through
throughthethe“wait
“waitand andsee”
see”strategy,
strategy,which
whichmeans
meanswaiting
waitingfor forthe
thesituation
situationtotounfold
unfoldoror
following
followingother
otherdecision-makers
decision-makers(benchmarking)
(benchmarking)[98]. [98].InInFigure
Figure4,4,wewepresent
presentourourresearch
research
results
resultson
onthe
therelations
relationsbetween
betweenthe themanagement
managementstyle styleandanddecision.
decision.
Figure4.4.Management
Figure Managementstyle
styleand
anddecision-making
decision-makingoptions.
options.Source:
Source:Authors’
Authors’elaboration.
elaboration.
The
Theconducted
conductedtheoretical
theoreticalstudy shows
study showsthatthat
management
management stylestyle
can influence decisions
can influence deci-
(option A, Figure 4). The reverse situation is also possible when decision-making
sions (option A, Figure 4). The reverse situation is also possible when decision-making shapes
the management
shapes style (option
the management B, Figure
style (option 4). More
B, Figure 4). often, we found
More often, a situation
we found where
a situation the
where
management
the managementstyle style
shapes decision-making,
shapes which which
decision-making, can be can
seenbeinseen
organizations such as such
in organizations red
and amber
as red andtaxonomies. These organizations
amber taxonomies. can be defined
These organizations can beasdefined
the opposite
as theofopposite
a participa-
of a
tory management style. We deal with “hard-handed rule” prescriptive, unquestionable,
participatory management style. We deal with “hard-handed rule” prescriptive, unques-
and unchanging
tionable, management
and unchanging styles in such
management organizations.
styles in such organizations.
2.6. The Decision-Making Modalities in a Pro-Ecological Context
2.6. The Decision-Making Modalities in a Pro-Ecological Context
Relating the decision-making to the strategy, one can assume a decision-making
Relating the decision-making to the strategy, one can assume a decision-making
strategy [99]. As indicated in Eisenhardt’s research, in the modern approach to strategy,
strategy [99]. As indicated in Eisenhardt’s research, in the modern approach to strategy,
decision-makers ask themselves the question: Where are we going? They also ask the equally
decision-makers ask themselves the question: Where are we going? They also ask the
important question: How do we want to get there? [100]. Strategic decisions are connected
equally important question: How do we want to get there? [100]. Strategic decisions are con-
to top management. Broadly understood, strategic decisions in terms of scale and impact
nected
are to top
critical management.
to the organization Broadly
over theunderstood,
long term. strategic
Preciselydecisions
because of in their
termsimportance,
of scale and
impact are critical to the organization
strategic decisions are related to the strategy [101].over the long term. Precisely because of their im-
portance, strategic decisions are related to the strategy [101].
Strategic decision-making is a particular type of decision-making in uncertainty [102].
Strategic decision-making
Such decision-making is a particular
involves formulating type
goals, of decision-making
identifying the problem, in generating
uncertainty
[102]. Such decision-making involves formulating goals, identifying
alternative solutions, evaluating, and selecting [103]. The organization’s success strategy the problem, gener-
ating alternative solutions, evaluating, and selecting [103]. The
emerges from the decision-making process, where collective intuition, avoiding political organization’s success
strategy
issues, emerges
shaping from the decision-making
constructive process, where
conflicts, and maintaining momentumcollective intuition, avoiding
in decision-making is
political issues, shaping constructive conflicts, and maintaining momentum
of strategic importance. Making a strategic decision is related to decision effectiveness in decision-
and
makinginismaking
success of strategic importance.
a decision [104]. Making
Referringa strategic
to these decision is related
studies’ results, thetoanswer
decisiontoeffec-
the
tiveness and success in making a decision [104]. Referring to these
question “how?” and the associated manager’s decision-making process shapes the organi- studies’ results, the
answer to the question “how?” and the associated manager’s decision-making
zation [100]. In a strategic decision, decision-making is essential, but the implementation process
ofshapes the organization
a strategic [100]. In
decision is equally a strategicItdecision,
important. decision-making
can be assumed is essential,
that the problems but so
are not the
implementation
much about making of a strategic decision is equally important. It can be
decision, but about its implementation [66,105]. assumed that the
problems are not managers
Even though so much about play making
multiplearoles
strategic decision,
in business but about there
operations, its implementation
are concerns
[66,105].
with top executives’ roles to integrate internal and external challenges in the decision of
Even
strategy though managers
formation [106,107]. play multipletoroles
According in business
Andrews, operations,
a strategy there aredecision-
is a “rational concerns
with top
making executives’
process”, where roles
firmsto are
integrate
lookinginternal and external
for a possibility challenges
to adjust in the
to internal anddecision
externalof
strategyand
contexts formation
conditions[106,107]. According to Andrews,
[25]. “Strategy-making a strategyisisa multi-stage
in organizations a “rational decision-
process
Sustainability 2021, 13, 1604 9 of 18
involving numerous individual decisions that are influenced by both internal and external
considerations and which involve contested positions between the key actors involved.
This is no less evident in the field of corporate greening as in other areas of organizational
decision-making” [25]. The environmental strategy defines the organization’s activities that
influence the environment and points to environmentally friendly practices [25,108,109].
In this strategy, companies specify how they manage relations with the natural environ-
ment [41], and they adopt strategic attitudes and general environmental strategies [25].
The environmental strategy should be adapted to the conditions of the organization’s
internal and external environments. Researchers indicate many factors initiating environ-
mental initiatives, resulting from external pressures [110] and internal conditions [111].
Most often, decision-makers in an organization make choices about environmental strat-
egy [4] influenced by factors such as risk management and assessment of market oppor-
tunities, resistance to change, corporate reputation, market growth, product design and
development, operational efficiency, capital budgeting, costing, human resource man-
agement, and the possibility of implementing an environmental strategy [25,69,111,112].
Technological progress and inventions (eco-innovations) are also key factors for the green
performance of organizations [104,105]. Therefore, organizations may choose different
environmental strategies depending on their organizational and ecological contexts. Busi-
nesses can make a variety of decisions on environmental strategies and issues to integrate
environmental challenges into a company’s strategy: from reactive and passive to a more
proactive, innovative, and leadership-based approach [25,113]. Organizations carry out
various environmental activities—a wide range of activities from minimal initiatives to
merging the organization’s strategy with pro-environmental activities. The version of the
merger requires the organization to take into account resources, factors, and interests, and
support from the organizational values and culture [69,114].
Figure
Figure 5. Styles
5. Styles of management
of management in relation
in relation to number
to number of decision-makers.
of decision-makers. Source:
Source: Authors’
Authors’ elabora-
elabora-
tion.
tion.
The Inrelations
Figure 5,between
we show that there is
management impossible
style unlimited growth
and decision-making in the dimensions
in an organization de-
pend on several factors. The most important features are the specificity ofaxis).
of flexibility and freedom (y axis) and number of decision-makers (x Then, we
the organiza-
created
tion, Figureand
its history, 6 where we reversed
the business the axes
industry. (but there
Analyzing the isresearch
a difference between
results decision-
on decision-
making participants and decision-making effectiveness). Therefore, Figures
making and management style, we proposed a graphical presentation of the decision- 5 and 6 are different.
However,
making stylethe numberWe
diagram. of decision-making
assumed that each participants (represented
of these styles on x axis,
would shape Figure 5)
a different ap-and
decision-making participants (y axis in Figure 6) are related. There is a breakpoint of the
proach to decision-making. Although Figure 5 suggests that the freedom and flexibility
effectiveness in decision-making when there are too many decision-makers. Because of
Sustainability 2021, 13, x FOR PEERdrift towards infinity along with the number of decision-makers, there is a point when the
REVIEW 11 of 19
this observation, we introduced Figure 6, where the top point represents the breakpoint of
organization becomes anarchic [41].
the effectiveness [15].
In Figure 5, we show that there is impossible unlimited growth in the dimensions of
flexibility and freedom (y axis) and number of decision-makers (x axis). Then, we created
Figure 6 where we reversed the axes (but there is a difference between decision-making
participants and decision-making effectiveness). Therefore, Figures 5 and 6 are different. How-
ever, the number of decision-making participants (represented on x axis, Figure 5) and
decision-making participants (y axis in Figure 6) are related. There is a breakpoint of the
effectiveness in decision-making when there are too many decision-makers. Because of
this observation, we introduced Figure 6, where the top point represents the breakpoint
of the effectiveness [15].
The decision-making effectiveness along with flexibility and freedom are limited. To
avoid anarchy in an organization, there have to be common goals and values shared
among team members. Another condition is to keep coherence between management style
and organizational culture [49,123]. In the directive style, there is no place for flexibility
and freedom in implementing the management style. This style can be described by the
red management style metaphor. Additionally, the decision-making process is confined
to the decision-maker, where employees have no voice. Each subsequent style of decision-
making increases the flexibility and freedom and the participation of employees and
stakeholders in making decisions. In the behavioral style of decision-making, flexibility,
freedom, participation in making decisions is the greatest. In this conceptual paper, we pro-
Figure pose a model tostyles
Figure6.6.Decision-making
Decision-makingstyles
helpand
recognize
andleader’s
different
leader’stypology
decision-making
typologydiagram.
diagram.Source:
styles aselaboration.
Source:Authors’
presented in Figure 6.
Authors’elaboration.
The decision-making effectiveness along with flexibility and freedom are limited. To
avoid anarchy in an organization, there have to be common goals and values shared among
team members. Another condition is to keep coherence between management style and
organizational culture [49,123]. In the directive style, there is no place for flexibility and
freedom in implementing the management style. This style can be described by the red
management style metaphor. Additionally, the decision-making process is confined to the
decision-maker, where employees have no voice. Each subsequent style of decision-making
increases the flexibility and freedom and the participation of employees and stakeholders
in making decisions. In the behavioral style of decision-making, flexibility, freedom,
participation in making decisions is the greatest. In this conceptual paper, we propose a
model to help recognize different decision-making styles as presented in Figure 6.
In Figure 6, we presented a decision-making styles diagram described by two factors:
decision-making effectiveness and flexibility and freedom. We assumed that a high level
of decision-making effectiveness is possible only in organizations with the appropriate
flexibility and freedom. The optimal level of flexibility and freedom should be neither low
nor too high. This is a situation that organizations strive for, but it is difficult to achieve and
maintain. We matched the decision-making styles to the management styles. Each decision
style was assigned a color according to the classification of management styles presented
in Table 1. A low level of decision-making effectiveness and flexibility and freedom is
characteristic of the directive and authoritative style.
It is accepted that different managers display different management styles in the
course of their work [33]. Through their management styles, they also create different
organizational cultures [23], one of the most explored characteristics of the organization
in management science since its introduction to the academic debate [14]. On the other
hand, there are well-known examples of managers who were inefficient in new organiza-
tions [41,85] because of the settled organization cultures or were not accepted with their
management style [19,124]. The quality of strategic decisions influences performance [125]
and is also essential for firms’ survival [119]. Then, a balance between responsibility and
freedom, stable or unstable strategies [57] seems to represent the choice dimensions of
management style [10,23,115]
Individuals rule such organizations. In turn, the low level of decision-making effec-
tiveness and the high level of flexibility and freedom cause chaos in an organization where
everyone rules—i.e., no one is responsible for the decisions made. These organizations
are represented by the colors green and teal. The analytical management style marked in
orange is the closest to the optimal situation. This style allows for high decision-making
effectiveness and high flexibility and freedom levels. Bearing in mind the research subject,
we decided that it is worth relating the research results to leadership in an organization.
The decision-making styles diagram allowed the identification of five types of leaders.
Command leader refers to the directive and authoritative style of management. The laissez-
faire leader is a teal behavioral style. The servant leader, on the other hand, is the green
democratic management style. The transformation leader and participation leader refer to
the orange analytic style of management.
In Figure 7, we present previously presented comprehensive ideas about formulating
the green and pro-ecological strategy which results in green decisions. We based the
proposed concept on the model of all known green strategies developed by Worthington.
There are two unequal dimensions for such a conceptual model. The larger internal
business environment inside the organization and external business environment, where
only part of the strategy is communicated but all effects of decisions are visible outside of
the organization (Figure 7).
Sustainability 2021, 13, x FOR PEER REVIEW 12 of 19
There are two unequal dimensions for such a conceptual model. The larger internal busi-
Sustainability 2021, 13, 1604 ness environment inside the organization and external business environment, where12 of 18 only
part of the strategy is communicated but all effects of decisions are visible outside of the
organization (Figure 7).
Figure
Figure 7. A conceptual
7. A conceptual model model for a pro-ecological
for a pro-ecological sustainable
sustainable strategy
strategy approach.
approach. Source:
Source: Authors’
Authors’ elaboration.
elaboration.
ThereThere
are other implications
are other related
implications to the to
related sustainability and longitudinal
the sustainability character
and longitudinal of
character
organizational culture and
of organizational management
culture style, where
and management change
style, whereischange
slow, but is affects the affects
slow, but green the
strategy (presented
green in Figure 7).
strategy (presented The division
in Figure 7). Theline shares
division strategy
line shares (there
strategyare(there
sustainable
are sustain-
and temporary
able and temporary strategies) and factors that influence it, and both have external
strategies) and factors that influence it, and both have internal and internal and
characters;
externaladditionally,
characters; the right side the
additionally, of Figure 7 represents
right side of Figurethe7 flexible andthe
represents short-term
flexible and
elements.
short-term elements.
4. Concluding
4. Concluding Remarks
Remarks
Decision-making concerns
Decision-making humanhuman
concerns activities in manyinareas
activities many of areas
personal and professional
of personal and profes-
life [9].
sional life [9]. It is often compared to breathing because this activity is theofessence
It is often compared to breathing because this activity is the essence life andof life
a natural process [62]. Relating decision-making to management and business, it must
and a natural process [62]. Relating decision-making to management and business, it must
be pointed out that this theory is 60 years old, but this is still actual, especially in the
be pointed out that this theory is 60 years old, but this is still actual, especially in the pro-
pro-ecological strategy context.
ecological strategy context.
In this paper, we provided a summary of the management theories by comparing
In this paper, we provided a summary of the management theories by comparing
decision-making with management style. Most prior literature on the decision-making
decision-making with management style. Most prior literature on the decision-making
process has focused on studying the process and looking for an answer to questions: What is
process has focused on studying the process and looking for an answer to questions: What
the process type? Is it ethical, rational, emotional, collective, or data-driven? Researchers focused
is the process type? Is it ethical, rational, emotional, collective, or data-driven? Researchers fo-
on the various factors that shaped the process and its effects on the works on decision-
cused on the various factors that shaped the process and its effects on the works on deci-
making, one of them being a need of natural environment protection and sustainability.
sion-making, one of them being a need of natural environment protection and sustaina-
As a result of our research, we assumed that culture and strategy are potent fac-
bility.
tors in the decision-making process for green strategies. In research on organizational
management As aand
result of our research,
leadership, we assumed
much attention that culture
has been paid to and strategy are
management potent
style. factors
Based
on literature studies and analyses results, we concluded that decision-makers’ influenceman-
in the decision-making process for green strategies. In research on organizational
agement and leadership,
on decision-making could notmuch attention has
be questioned. been paid
However, to management
external factors suchstyle. Based on
as social
opinions, economic trends, and environmental needs have to be taken into consideration. on
literature studies and analyses results, we concluded that decision-makers’ influence
Then,decision-making
green strategies could not be questioned.
or pro-ecological managementHowever,
stylesexternal factors such
are approaches as social
that affect deci-opin-
ions, economic trends, and environmental needs have to be taken
sions and are influenced by the sustainable development idea. The sustainability concept into consideration.
is, without a doubt, the most influential factor on business; however, its impacts on the
management or leadership styles and decision-making are not fully understood.
In this research, we assumed that management style is a factor that shapes decision-
making in an organization Therefore, we answered the research question stated in the
introduction section. Different management styles that decision-makers implement in orga-
Sustainability 2021, 13, 1604 13 of 18
Author Contributions: Conceptualization A.S., M.F. and L.S.-P.; methodology A.S. and L.S.-P.; formal
analysis A.S. and L.S.-P.; investigation A.S., L.S.-P. and M.F.; writing—original draft preparation A.S.,
L.S.-P. and M.F.; writing—review and editing A.S., L.S.-P. and M.F.; visualization A.S., L.S.-P. and
M.F.; supervision A.S.; project administration, A.S., and L.S.-P.; funding acquisition, A.S., and L.S.-P.
These authors contributed equally to this work. All authors have read and agreed to the published
version of the manuscript.
Funding: (A.S.) The project is financed by the National Science Centre in Poland under the program
“Business Ecosystem of the Environmental Goods and Services Sector in Poland”, implemented in
2020–2022; project number 2019/33/N/HS4/02957; total funding amount PLN 120,900.00. (L.S.-P.)
The project is financed by the Ministry of Science and Higher Education in Poland under the program
“Regional Initiative of Excellence” 2019–2022; project number 015/RID/2018/19; total funding
amount PLN 10,721,040.00.
Institutional Review Board Statement: Not applicable.
Informed Consent Statement: Not applicable.
Data Availability Statement: Not applicable.
Acknowledgments: We acknowledge the support given us by the proof-readers Zuzanna Sulich and
Magdalena Sulich and consultations related to the paper were provided by Piotr Zema and Tomasz
Zema. We are especially grateful to the Jerzy Tutaj and Max Weber Institute (Jedlina-Zdroj, Poland)
for library access and further cooperation possibilities. The authors thank the anonymous reviewers
and editor for their valuable contributions that improved this manuscript.
Conflicts of Interest: The authors declare no conflict of interest. The funders had no role in the design
of the study; in the collection, analyses, or interpretation of data; in the writing of the manuscript, or
in the decision to publish the results.
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