Yasin Galip Gencer
Yalova University, IIBF Office: 514 Main Campus, Yalova, Turkey
Ulas Akkucuk
Bogazici University, 34342 Bebek- Istanbul, Turkey
DOI: https://doi.org/10.31410/EMAN.2018.980
2nd International Scientific Conference – EMAN 2018 – Economics and Management: How to Cope With Disrupted Times, Ljubljana – Slovenia, March 22, 2018, CONFERENCE PROCEEDINGS published by: Association of Economists and Managers of the Balkans, Belgrade, Serbia; Faculty of Management Koper, Slovenia; Doba Business School – Maribor, Slovenia; Integrated Business Faculty – Skopje, Macedonia; Faculty of Management – Zajecar, Serbia, ISBN 978-86-80194-11-0
Abstract
This study aims to propose the best decision making strategies for managers in times of economic depression. The economy of human needs; consists of trade, production, consumption, distribution, exports and imports. It is a branch of science that deals with the formation and distribution of personal and institutional wealth. It is the name given to the consumption of economic institutions, goods and services. Natural resources within this economy are labor and capital. The economic crisis may occur in many forms including a decline in consumer demand and firms’ investments, high unemployment, low production levels, low incomes and consequently a fall in living standards. Such economic crisis is often accompanied by uncertainties in financial markets and the fall in stock prices and the fall in the value of domestic currency relative to foreign currencies. These crisis form economic recessions and when these recession periods last more than several years it is called an economic depression. The biggest role in crisis management falls to the leaders in depression periods. Every movement of them, every application is critical. Leaders should first start with a good observation. Their observation will help them to identify threats and bring about new opportunities. Managers or managers who take over business management during the crisis period must have a strong sense of tension that is specific to the crisis environment and perform on-site diagnostics without creating a conflict environment. The availability of satisfactory results in the diagnosis points should be emphasized and focus on these points. The strategic decisions taken are of great importance. There are three strategic decision-making methods proposed in the literature, which are namely entrepreneurial method, adaptive method, and planner method. These methods are generally accepted ones in the literature and mainly the most efficient decision making strategies in times of economic depression. In the entrepreneurial method, decisions focus on opportunities rather than problems, and the main goal is the growth of the business. This brings focus an authority in crisis times. Then, in the adaptive method the strategic decision is aimed at finding solutions to existing problems rather than looking for new opportunities and serves the purpose of advancing the business gradually. Last step should be the planner method by which the future is planned accordingly with the relative information. Increasing need for rapid and accurate decision making in terms of the organization in times of crisis creates the tendency of centralization of the authorities within the organization. The crisis has many impacts on business functions. In order to successfully exit from the crisis environment, enterprises need managers whose leadership features are advanced, who can make quick decisions, take the signals of crisis in advance, take the necessary precautions, gather the employees around the common goal and turn the crisis into opportunities. When the crisis situation is encountered, businesses that apply these three strategic decision making methods can turn the crisis into opportunities and can get better positions.
Key words
Operations Management, Logistics, Strategy, Decision Making, Business Management