RISK TAKING BEHAVIORS, DECISION MAKING STYLES AND LEADERSHIP

STYLES OF PUBLIC OFFICIALS OF TUGUEGARAO CITY

Objectives: The main objective of the study is to assess the different risk taking behaviors,

decision making and leadership styles of city officials of Tuguegarao. It is not only significant

for the people but also for the officials so that they can reflect whether they’re performing their

duties and responsibilities as public officials.

Variables:

Method: This study will use both the quantitative and qualitative method of research. The

quantitative aspect that will be employed is the descriptive correlational research design. The

descriptive method will look into the profiles as well as the risk taking behavior, decision making

style and leadership styles of the respondents. The correlational method will be used to describe

the relationship between existing variables.

Further, the qualitative method will be used to analyze responses of the city officials.

Introduction

Decisions are necessary actions in any society. Most often than not, it is the leader who

serves as a rudder that directs the movement of the society. The decision that a leader formulates

necessitates a lot of weighing of things and pondering coupled with a risk because decisions

could transform or deform a society. Decision making is often associated with risk taking. When

a leader decides, he plunges into the unknown. Consequently, once “the die is cast”, the risk is

undertaken, there is no turning back and one has to carry on the decision made.

Decision often necessitates risk because not all decisions could bring about positive

effects to the institution. Risks are uncertainties about events that may or may not happen.

Almost any human endeavor carries some risk, but some are more risky than others. Hubbard

(2009) proposes instead that risk is a kind of “vector quantity” that does not collapse the

probability and magnitude of a risk by presuming anything about the risk tolerance of the

decision maker. Risks are simply described as a set or function of possible loss amounts each

associated with specific probability. How this array collapsed in a single value cannot be done

unless the risk tolerance of the decision maker is quantified.

Kimberly and Rottman (1987) describe decision making in organizations as a process of

behavior with the economic model (or total rationality) at one extreme and with the social model

(or complete irrationality) at the other extreme. This description implies that only irrational

decision making accords human values precedence over economic values. In the organizational

environments of the 21st century, leaders must find some middle ground between these extremes,

for it is evident that neither set of values can be ignored. Leaders make decisions every day that

affect their team and their institution. Before any leader makes a decision, one has to define first

the goals. To make sound decisions as a manager, one needs to collect information from anyone

involved and affected by the decision.

Decision making is a mechanism for making choices at each step of the problem solving

process. It is an important process for organizational effectiveness. It is an organizational process

because it transcends the individual and has an effect on organizational goals. It is a process of

identifying and choosing alternative courses of action in order to come with the most suitable

option. The decision making process is a key determinant of the success of both the management

and the organization. The process of decision making involves selecting a particular course of

action from all the alternatives available. It helps an individual to narrow down the choices

available to him.

C.V Raian (2010) states that decision making plays an important role in all phases of the

management, i.e. planning, organizing, directing, controlling, staffing, etc. Leaders often find

themselves facing alternative courses of action, out of which they are expected to choose or

decide upon a single course of action. The decisions they make are influenced by various factors

like past experience, the external environment, human relationship within the organization and

the cognition levels of the decision makers themselves. These decisions made by the managers

are expected to lead the organization towards the achievement of its objectives.

Moreover, decision making requires being aware of one’s own and agency’s ethical

values and applying them when necessary. Ethical decision making involves being sensitive to

the impact of one’s decisions and being able to evaluate complex, ambiguous and incomplete

facts. Valasquez, et al (2009) simply states that ethics refers to the standards of behavior that tell

us how human beings ought to act in the many situations in which they find themselves. As such,

organizations started to look into ethical considerations as an utmost priority in terms of decision

making.

Along this line, organizational structure plays an important influence on the elicitation of

the desired risk-taking behavior and decision making. Like any society, Tuguegarao City

undergoes the process of decision making through its elected officials, the city officials who may

exhibit varied risk taking behaviors and ethical considerations in formulating decisions.

Notably, the city officials are the leaders of the city of Tuguegarao. They play an

important role in supervising the welfare of the people within its jurisdiction. Much of the

expansion and advancement of Tuguegaraoenos’ welfare and development lies on the official’s

ability to take a risk as well as to decide. Issues, problems and concerns are threshed out based

on the official’s ability to smoothen the rough sailing journey of the city.

Indecisiveness will make the city officials appear not making tough choices or taking a

stand on issues that affect the society. They need not to be concerned that taking a stand on

issues will cause dislike from others because it is impossible to anyone to like them. Every day,

they need to make decisions that have moral implications.

Apparently, most officials would hate the idea of risk but along with decisions are risks

one has to contend with. One may spend a great deal of time and money to reduce risks but one

can never eliminate it. The reason is that some amount of uncertainty is built in to all aspects of

the world around us. One cannot predict with certainty which events will occur or where they

might occur.

As leaders, the officials have the responsibility to make decisions to cater to the present

dilemma the city is experiencing. As the supervising persons of the city, it is important to

understand one’s ethical obligations so that the society’s expectations can be met as

exemplifying the appropriate behavior for others. Thus, they play a significant role in

transforming the city based on their risk taking behavior decision making styles and leadership

styles which affected by their ethical principles as individuals.

It is on this context that the researchers will embark on this endeavor to look into the risk

taking behavior, decision making styles and leadership styles of City Officials grounded on their

managerial ethics as they perform their roles as leaders of the city of Tuguegarao.

Conceptual Framework

Organizational decision making is complex, multifaceted and multidimensional process

which is influenced by many factors. Rowe and Boulgarides (1992) explain that the decision

maker is influenced by various factors including personal needs (such as security, structure,

support, recognition, opportunity, and rewards), pre-potent needs (such as frustration, anxiety,

achievement and control),organizational forces (such as policies, staffing, culture, productivity,

and conformity), and environmental forces (such as government, society, competition, resources,

technology, clients/customers). After the interplay of these forces the emergent behavior results

in feelings, decisions and actions.

Decision related factors can be defined broadly into two categories including

organizational factors and individual factors i.e. personal characteristics of the decision maker.

As cited by Muhammad Naveed Riaz, et al (2010), many researchers investigated that decision

making styles of managers are influenced by many factors including national origin, type of

organization, industry, education, age, socioeconomic status, organizational size and

management level in the organization.

Further, managers make various types of decisions depending in the management level

and hierarchical position in organization. Managers may make relative minor decisions that are

primarily operational or tactical in nature. In contrast, managers may make more strategic

decisions that involve layer outlays of capital (Certo, Connelly, and Tihanyi, 2008). Using

Decision Style Inventory relationships between decision making styles and varying management

levels, Pennino (2000) found that lower level managers displayed a behavioral decision making

style (quest for support, low tolerance for ambiguity, and short term problem solving) an the

individuals in the high level of management displayed a conceptual style of decision making

(creativity, risk taking, high tolerance for ambiguity and cognitive complexity). Researchers

(Blankenship and Miles, 1999; Heller and Yuki, 2000) found that decision making styles of

managers vary across management levels.

Moreover, as cited by Muhammed Naveed Riaz, et.al (2010) women generally thought to

be more intuitive and empathetic than their male counterparts (Brenner and Bromer, 2001), who

are seen as analytical and logical problem solvers in the workplace (Loden, 1998). Despite this,

women are often under-represented in management, where the use of intuitive decision making

style is thought to be effective (Agor, 1989). Hablemitoglu and Yildirim (2008) said female

leaders were more likely opt to use avoidant decision making style in relation to rational decision

making style. On the other hand, male students were more likely to adopt intuitive decision

making style in relation to rational decision making style.

On the other hand, Kim and Hasher (2005) investigated that older adults are more likely

to employ intuitive decision making style (involving heuristic and information processing

intuitively), while younger adults are more likely to adopt rational decision making style

(characterized processing information in an analytic and systematic manner). The results show

that older adult are less likely to change their decisions or decision making style because of

larger past experience in decision making. The results are to some extent consistent with the

somatic marker hypothesis which illustrates that feelings and emotions (somatic markers)

becomes associated with the positive and negative outcomes of a given response situation via

lifetime experiences. Spaniol and Bayen (2005) observe tranquil judgment in retired people,

probably because of their difficulties with the working memory. Many researchers (Charness

and Bieman-Copland, 1992; Craik and Salthouse, 1992) argue that working memory declines

with age, thus limiting older peoples’ capacity to monitor decision processes. On the other hand

Dror, Kotana, and Mungur (1998) suggest that age does not degrade the quality or speed of the

decision. Minett, Yaman, and Denizci (2009) discovered that older managers are less likely to be

involved in rule-based decisions. (Riaz, et.al 2010)

Experienced people are also more likely to employ intuitive decision making style

(Bergstrand, 2001; Callan and Proctor, 2000). Some decisions are made under conditions of

urgency and demand high technical expertise. Other decisions can be the product of a more

deliberate analysis of information and data. Furthermore, many decisions are sequential or

conditional; the decision made at one point in time will affect the decisions options available at a

later time. It is typically impossible for a leader to possess all the information needed to make an

informed decision. Consequently, the ability to make obtain relevant information, the skill to

know the differential importance of the information as it related to a given decision, and the

capacity to way various decision options are all critical leadership skills. Great leaders are skilled

decision makers, or they know how to delegate the responsibility for decision making to others

within the organization (Muchinsky, 2007).

In organizations, ethical decision making should be focused (Winston, 2007). In

Australia, teachers and students are well equipped with multi-cultural education that increases

their understanding of the apparent and hidden cultural adversity issues in real life decision

related to family, relationships and career decisions (Hesketh and Taylor, 2001). Technology in

general and information technology in particular plays a vital role in teaching leaders regarding

data based decision making (Information Technology and People, 2002) but most of the leaders

are found reluctant in adopting new information technologies related to decision making

(Townsend, DeMarie, Hendrickson, and Whitman, 2000). Researchers (Essner and Strother,

1962; Gopula and Hafeez, 1964) found that decision making styles differ due to the type of

education (Riaz, et.al. 2010)

This study is based on the concept that city officials play a significant role in the decision

making process that could affect the city of Tuguegarao and its residents. It is undeniable that the

officials play a significant role in meeting the public thrusts. Therefore, as leaders in the

organization, the officials risk taking behavior, decision making style and leadership styles is

equally important in looking into the ethical principles used in springboards in the formulation of

the decision.

Research Paradigm

Figure 1. Conceptual model of the study

Figure 1 shows the paradigm of the study. It shows the profile and managerial ethics as

the independent variables and the decision making style as the dependent variable of the study. It

could be noted that risk taking behavior is subsumed in decision making, hence, the study also

looks into the risk taking behaviors, decision making styles and leadership styles of the

respondents when group according to their profile and determines the relationship between the

risk taking behavior, decision making style and leadership style of the respondents. As a result of

case analysis which determines the risk-taking behavior, decision making style and leadership

style of the respondents, managerial ethic is ascertained.

RESEARCH METHODOLOGY

The study will investigate the views and experiences of elected city officials of

Tuguegarao about their behavior in risk-taking and styles in decision-making and in leadership.

This chapter presents the methodology that will be used in the conduct of the study. It includes

Profile

Age Sex Position Years in service

Managerial Ethics

Beneficence Justice Fidelity Non-maleficence Respecting autonomy

*Risk Taking Behavior

*Decision Making Style

*Leadership Style

the research design, respondents and sampling techniques, research instrument, data gathering

procedures and data analysis.

Research Design

This study will use both the quantitative and qualitative method of research. The

quantitative aspect that will be employed is the descriptive correlational research design. The

descriptive method will look into the profiles as well as the risk taking behavior, decision making

style and leadership styles of the respondents. The correlational method will be used to describe

the relationship between existing variables.

Further, the qualitative method will be used to analyze responses of the city officials.

Locale of the Study

The study will be conducted at different areas in Tuguegarao City. The Researchers will

float questionnaires at the City Hall. The City Hall will be chosen as study site because

obviously it is where the City Officials are.

Researchers will also go to different barangays in Tuguegarao City to float questionnaires

to randomly-selected Tuguegaraoenos.

Please see Note in the Research Instrument section.

Figure 2. Map of Tuguegarao City

Respondents and Sampling Techniques

The respondents will be ALL the public officials of the city of Tuguegarao to perfectly

assess their risk-taking behaviors, decision-making styles and leadership styles. Public officials

play an important role in the city. Thus, the respondents will be the Mayor, Vice Mayor,

Councilors and Ex-officio Councilors. If some of them are not available due to personal reasons

during the conduct of the study, then Convenience sampling technique will be used.

The views and opinions of Tuguegaraoenos about their city officials will also be

conducted if the Researchers have sufficient time or opportunity to do so. Random sampling

technique will be used to determine the sample size.

Research Instrument

The primary data will be obtained through floating of questionnaires to the city officials.

The aim of the said activity is to collect information on their individual attributes, to assess their

experiences and opinions of the work they do and especially to know their behavior in risk-

taking and styles in decision-making and in leadership. All the participants will be asked the

same questions which will be drawn from a guide that will be developed for the purpose of this

study.

The questionnaires will be composed of the following categories:

For City Officials: (i) Greetings; (ii) Profile of respondents; (iii) Self-Assessment

questions or questions based on the Decision Making Style inventory which is based on Pierre

Casse’s Training and the Risk Taking Inventory authored by Gene Calvert of the Highwire

Management. The purpose of the questionnaire is to know what factors affect and to assess the

risk-taking behaviors, decision-making styles and leadership styles of city officials of

Tuguegarao.

For Tuguegaraoenos: (i) Greetings; (ii) Profile of respondents; (iii) Open-Ended Survey

questions. The purpose of the questionnaire is to know their thoughts about their city officials or

how they feel about the service of the city government.

Note: Survey questionnaires for Tuguegaraoenos will only be floated if there’s sufficient time to

conduct some.

For this investigation, the questionnaire for city officials will be based on the following:

The Decision Making Style inventory based on Pierre Casse’s Training for Multicultural

Managers (1982) will be used to determine the decision making styles of the public officials. It

will be consist of twenty items that will determine whether one employs factual, intuitive,

analytical or normative decision making style. Factual decision making style reflects managers

who are basically cool, patient, down-to-earth, oriented to the present, precise and realistic, stick

to facts and content-oriented. Intuitive decision making style reflects managers who are

charismatic, imaginative, and quick to their reactions and jumps from one idea to another.

Analytical decision making style is characterized by a systematic, logical, step-by-step way to

look at things, people and ideas. Normative decision making style is people-oriented and stresses

the importance of communication, relations and teamwork. It uses the following scale:

5 - Very Much 3 - Somewhat 1 - Marginally

The Risk Taking Inventory authored by Gene Calvert of the Highwire Management will

be used to determine the risk taking behaviors of public officials. It is a fifteen item

questionnaire that determines the level of risk taking behavior of the officials. High risk taking

behaviors are characterized by officials who prefer uncertainty and stimulations over choices

where the risk is low and the certainty of the outcome is high. Low risk the officials in the

situation where they need to decide on. It is reflected by the official’s ability to maintain their

comfort zones.

The Leadership Style of public officials will be based on the results of the Decision

Making Style inventory and the Risk Taking Inventory. In addition to it is the information that

will be gathered by conducting survey to Tuguegaraoenos to whom they serve.

Collection of Data

The researchers will seek the permission of every official for the conduct of the study. A

letter requesting the permission to conduct will be sent to all of the officials for their approval.

After the approval, a separate letter will be sent for the distribution of research instruments for

the public officials.

Here is the Proposed Timetable of Activities of the Researchers:

Activities Date

Design questionnaire and other data collection components June xx

Submission of Letter of Permission to conduct survey June xx

Approval of Letter of Permission to conduct survey June xx

Publish and reproduce questionnaires June xx

Circulate questionnaires June xx

Retrieve questionnaires July xx

Start documentation review July xx

*Interview Questions Finalized July xx

*Submission of Letter of Permission to Interview July xx

*Approval of Letter of Permission to Interview August xx

*Schedule Interviews August xx

*Collect additional information August xx

Read & evaluate information August xx

Organize information September xx

Write the first draft of document September xx

Review & revise first draft September xx

Write & revise additional drafts October xx

Edit final draft October xx

Publish & submit document October xx

Note: Dates will depend on the accomplishment of succeeding activities and agreements between

Researchers and their Professor.

The types of interview to be conducted will be based at the convenience of the

respondents which are the Tuguegarao City Officials.

*only if needed.

Data Analysis

There will be both quantitative and qualitative data to be used to answer the questions

posed in the Statement of the Problems. Most quantitative data will be analyzed through various

types of descriptive analysis. Content analysis will be used to review qualitative data. Content

analysis identifies themes which emerge from written data. These themes are then analyzed in

order to answer the main questions of the study. Findings in the study will triangulate data for

improving their reliability. When feasible and available, the study will make judgments through

pre-established criteria or through generally accepted norms.

The data will also be encoded and analyzed through descriptive statistics such as

frequency distribution, getting the percentage, and Chi-square test of independence.

In Frequency distribution, Researchers will first graph the values of the variables and it

will be listed across the bottom of the graph. The number of times the value occurs is listed up

the side of the graph. A bar is drawn that corresponds to how many times each value occurred in

the data.

The formula in determining the Percentage is as follows:

Percentage = (Value/Total Value) x 100

Percentage= VTV

x 100

Frequency distribution and percentage will be used for the evaluation of the profiles and

other responses from the respondents.

Chi-square is a statistic used when testing for associations between categorical or non-

numeric variables. It is also used as a goodness-of-fit test to determine whether data from a

sample come from a population with a specific distribution. Chi-square test of independence will

be used to test relationship among risk-taking behaviors, decision-making styles and leadership

styles of the respondents.