Annotated Bibliography on Contextual Factors in Organizational Decision Making

This paper presents an annotated bibliography on contextual factors in organizational decision making, covering topics such as organizational structures, environmental forces, risks, business practices, and diverse firms.

Running head: MANAGEMENT AND BUSINESS
MANAGEMENT AND BUSINESS
Name of the Student:
Name of the University:
Author note:

MANAGEMENT AND BUSINESS
Introduction
Contextual factors refers to the characteristics of the environment or ecology which
are in relation to the effectiveness of a collaboration. It is very important for the process of
organisational decision making. Decision making plays a very important role in the success
of an organisation as the skilled performers in the business are often required to make
decisions that are appropriate for the issue under high time pressures. Contextual factors are
very essential for the selection of the strategic decision methods. They helps in facilitating
and attenuating the pursuit of the affordability and quality. This paper is going to elaborate on
presenting an annotated bibliography on a total of five topics- a. Organisational structures or
governance, b. Environmental forces, c. Risks confronting the firm, d. Organisation and
business practices, and e. the functions of diverse firms, from some chosen journal articles.
Those articles are- Journal of Management, Journal Of Business Research, International
Business Review, The Academy of Management Annals and Human Resource Management
Review.
Discussion
Annotated Bibliography
a. Organisational structures or governance
Albers, S., Wohlgezogen, F., & Zajac, E. J. (2016). Strategic alliance structures: An
organization design perspective. Journal of Management, 42(3), 582-614.
The main conceptual factors that are beings discussed in this journal article by Albers,
Wohlgezogen and Zajac (2014) are that of functional structures, divisional structure, matrix
structure and process structure. Process Structure divides the organisation by means of a
process. It included researching, manufacturing and sales. The organisations that are process
based consider the different processes in relation to one another as well as the customers. The

MANAGEMENT AND BUSINESS
next is of Matrix Structure, which is often overlaid on the top level of the functional structure
of a company for coping up with the projects that consider many departments. Moreover,
functional structure is based on the structure of the manager on the functions of the
employees. It is a very simple concept for the organisation of the company. The different
functions like the finance, the internet technology and the human resource departments have
their own department and each one of them focus on that function. The last is the divisional
structure. In many companies, there are several divisions and they are regarded as mini
companies and they all are built on specific products or regions. The findings of this article
suggest that due to some fundamental shifts in the information and communication
processing costs as well as the increasing modularity of the services and products, the
innovation nature have changed in contemporary world. Hence, it is very important for the
managers in the organisations to consider these factors while planning organisational
structure and making divisions on the departments.
b. Environmental forces
ÖNEREN, M., Tayfun, A. R. A. R., & YURDAKUL, G. (2017). Developing Competitive
Strategies Based on SWOT Analysis in Porter’s Five Forces Model by
DANP. Journal Of Business Research-Turk, 9(2), 511-528.
In this global context, conducting a successful business seeks the support of all the
environmental forces. In this study, the authors have analyzed the environment of a global
companies. This paper has focused on the governance and social responsibilities of the firm
and detailed the importance of environmental factors in the growth of the firm in a
competitive market. To these authors, the company has successfully evaluated the internal as
well as external environment through PESTLE analysis, SWOT analysis, BCG matrix and

MANAGEMENT AND BUSINESS
porter’s five forces model. These analyses have helped the company directly to develop
strategies and methods to operate in the global market (Khan, Alam & Alam, 2015).
There are six major environmental forces that affect the operation of the companies
directly. These include demographic, sociocultural, political or legal, technological, economic
and global factors. The political legal and economic factor determine the strength of the
market whether the business will be successful in this context, on the other hand the
demographic, social cultural contexts determine the demands of the customers of the market.
Based on these factors, the companies form theory policies and strategies also that they get
the best in that particular environment. This knowledge is important for the managers as they
are the main players who lay the strategies and techniques of the smooth running of business.
Perfectly analyzing and evaluating the strengths and weakness of these factors, the company
needs to develop its strategies otherwise the business will be led to failure definitely.
c. Risks confronting the firm
Mata, J., & Portugal, P. (2015). The termination of international joint ventures: Closure and
acquisition by domestic and foreign partners. International Business Review, 24(4),
677-689.
The main contextual factor in this study is that of the closure and the acquisition by
the national and international partners. This has been portrayed as one of the significant risks
that a firm confronts in its business operations. The decision in context to asset specificity as
well as the size of the venture is likely to influence the possibility of the closure but it is not
the same for acquisition. This study has uncovered the influence that the ownership lay at
forming the joint venture and at various different points of its evolution is on the basis of
termination of the joint ventures. It has analysed the process of termination of the joint
venture process and at the same time, it has also considered the different alternatives by

MANAGEMENT AND BUSINESS
means of which the termination could take place. It is very important for the organisational
managers to consider this as at some day or the other, the managers are likely to face this
challenge in conducting their business, whether it be in domestic or foreign boundaries.
d. Organisation and business practices
Kieser, A., Nicolai, A., & Seidl, D. (2015). The practical relevance of management research:
Turning the debate on relevance into a rigorous scientific research program. The
Academy of Management Annals, 9(1), 143-233.
The main concept factor in this article is of dialogue that is regarded to be a
ubiquitous element in the field of Public Relations and business practices. It has addressed
the notion that there is a high need for analysing the dialogue as well as its aspects in the
functionalist PR role research. It has also explored the roles of Public Relations to the
relevance of the dialogues and has analysed how it could be related to the organisational
contexts. Moreover, Person (2017) have built on the literatures in the role of dialogues in the
Public Relations. It is to note that there are several organisations that have some or the other
kind of operational issues which could be improved by means of introducing best practising
methods such as quality management, delivery, stock control as well as the supply chain
management. As the business grows, it needs to change with the change in circumstances.
However, there is a high need of Public Relation department as it is a very crucial part for
maintaining and enhancing the brand image of the organisation. Hence, the organisational
managers should consider this factor while conducting business, especially in this
contemporary world of high competitiveness.
e. The functions of diverse firms.
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), 139-145.

MANAGEMENT AND BUSINESS
This study by Stone and Deadrick (2016) has pointed out the factors either support or
create issues for the successful operation of the firms. In this context the study has identified
the factors that enhance the efficiency as well as independence of the boards of directors. The
authors have focused on the human resource of a firm that definitely plays an important part
in the smooth operation of the companies. This paper has empirically analyzed the gender
diversity of the firms in managing the employee satisfaction process in the firms.
In order to examine the actual situation, the authors have collected exclusive data
from 3876 public firms in 47 different markets. As detailed from these data, it has been found
that the companies who have female directors are more efficient in their accounting as well as
performance. In addition to this, the firm cannot perform better even if they are supported by
the external independent directors when the human respect structure is not diversified. The
subject associated with the functions of the firms is understood from the needs of gender
balanced boards which enhances efficiency of the functions of the companies. This
knowledge from this study therefore can help the managers of the organizations to understand
the essentiality of the gender balance in the human force. This will help the managers to
reduce the effects of gender biasness and harassment which create barrier for the smooth
functioning of the firms. In order to increase the performance and reputation, the managers
need to empower their employees.
Conclusion
Hence, from the above analysis it is to state that contextual factors are very important
for any study to assess an in depth understanding of the subject. With the same, it is very
important in the making of organisational decisions. However, it is also to state that these
contextual factors are often been ignored while researching or reporting on a particular
subject as they are perceived to be a notable barrier for research utilisation that are related to

MANAGEMENT AND BUSINESS
the activity. Moreover, the contextual factors influence the organisational performance as it
influence the performance of the employees’ appraisal process. Hence, ultimately, it is
influencing the organisational decision making process.

MANAGEMENT AND BUSINESS
References:
Albers, S., Wohlgezogen, F., & Zajac, E. J. (2016). Strategic alliance structures: An
organization design perspective. Journal of Management, 42(3), 582-614.
Kieser, A., Nicolai, A., & Seidl, D. (2015). The practical relevance of management research:
Turning the debate on relevance into a rigorous scientific research program. The
Academy of Management Annals, 9(1), 143-233.
Mata, J., & Portugal, P. (2015). The termination of international joint ventures: Closure and
acquisition by domestic and foreign partners. International Business Review, 24(4),
677-689.
ÖNEREN, M., Tayfun, A. R. A. R., & YURDAKUL, G. (2017). Developing Competitive
Strategies Based on SWOT Analysis in Porter’s Five Forces Model by
DANP. Journal Of Business Research-Turk, 9(2), 511-528.
Stone, D. L., & Deadrick, D. L. (2015). Challenges and opportunities affecting the future of
human resource management. Human Resource Management Review, 25(2), 139-145.