Industry 4.0
Vol. 7 (2022), Issue 2, pg(s) 71-75

BUSINESS & “INDUSTRY 4.0”

Managerial decision-making in the era of Industry 4.0

  • 1 University of Economics in Bratislava, Bratislava, Slovak Republic

Abstract

Fourth industrial revolution also known as Industry 4.0, is a concept that significantly influences the entire operation of businesses and management. It necessitates changes in individual managerial functions, not excluding decision-making. In management theory, managerial decision making is defined in terms of content through descriptive and normative theories. The aim of the presented article is to examine the normative and descriptive understanding of decision – making in the context of adaptation of individual approaches to changes in the business environment – especially adaptation to technological progress related to the fourth industrial revolution. An overrated aspect of decision-making in this era is its rational side due to the rapid development of computer technology and the availability of rich software support. On the other hand, there is a tendency to bring to the decision-making process the involvement of all involved, collective judgment, the ability to learn from the development of the situation or openness to feedback. The understanding of the decision-making process thus moves from its traditional concept to a new understanding, which includes the above-mentioned factors. Development leads to their integration in the form of a direction that does not yet have a name but means a synergy of rational decision-making and critical thinking and reasoning in the context of descriptive theories. The overall optimal result of the decision-making process is influenced by objective criteria through a rational-normative model, environmental characteristics and subjective influences, personality, and cognitive complexity of the manager.

Keywords

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