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Indigenous Management Practices in Africa
Decision-making Practices in Africa

Enase Okonedo,
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To cite this document: Enase Okonedo, "Decision-making Practices in Africa" In Indigenous
Management Practices in Africa. Published online: 27 Jul 2018; 221-247.
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Decision-making Practices in Africa
Enase Okonedo
Abstract
This chapter presents an understanding of the nature, peculiarities and factors that
influence decision-making by executives and managers across the various sub-
regions of Africa. Focusing on factors such as culture, faith, ethics, information
paucity and institutions, the chapter examines the prevailing nature of decision-
making in West Africa, East Africa, Northern Africa and Southern Africa.
Interestingly, decision-making in these regions is characterised by unique features
and peculiarities. The Ubuntu African philosophy was used to illustrate the trad-
itional African lifestyle and decision-making practice. Drawing from both trad-
itional and contemporary decision-making approaches, it identifies similarities as
well as differences in the approach employed by decision-makers across the various
sub-regions of Africa. To clearly articulate the similarities and differences, inter-
views and surveys were used to gather data from managers operating in these
regions. Factor analysis enabled the description of underlying factors that drive
decision-making within each region. The chapter further illustrates a framework for
decision-making practice in Africa, which shows the dynamics and important fea-
tures of decision-making among executives in Africa. The author describes decision-
making as an essential competence for managers and posits that being cognisant of
the factors that influence decision-making significantly improves organisational per-
formance. In conclusion, it recommends suitable strategies that enhance the quality
of decision-making for both managers and educators.
Keywords: Decision-making; culture; faith; institutions; information paucity;

African; managers
Indigenous Management Practices in Africa: A Guide for Educators and Practitioners

Advanced Series in Management, Volume 20, 221 247
Copyright r 2018 by Emerald Publishing Limited
All rights of reproduction in any form reserved
ISSN: 1877-6361/doi:10.1108/S1877-636120180000020012
222 Enase Okonedo
Introduction
Across the continent famed for its use of proverbs that succinctly describe received
knowledge passed on verbally from generation to generation, various sayings exist
on decision-making. From Burundi in East-Central Africa, an adage says, ‘A king
cannot reign without the support of the elders’; in Congo, Central Africa, there is a
proverb that ‘the art of negotiating is acquired from childhood’; from Ethiopia, in
the Horn of Africa, a proverb goes ‘better a single decision maker than a thousand
advisors’; while in Ghana, West Africa, a proverb states ‘One head does not contain
all wisdom’. These examples illustrate that from generations past, attention and
advice have been given on decision-making as part of the respective cultures. The
Ubuntu African Philosophy typically characterises life and decision-making within
an African community. This philosophy posits the idea of loyalty, social harmony,
solidarity and love for humanity and describes traditional ideologies of African
communities (Kamwangamalu, 1999). Africa is also known for her cultural and eth-
nic diversity as well as varying religious and traditional beliefs (Easterly & Levine,
1997; Fearon, 2003; Kamwangamalu, 1999; Lassiter, 2000; Serageldin & Mundial,
1994).
In Africa, the art of decision-making is governed by communal thinking, consen-
sus beliefs, elders’ participation and a shared goal among community members
(Mangaliso, 2001). Managers within this context have to make decisions in an
environment characterised by deep ethnic and tribal cultures, strong religious senti-
ments, weak institutions and accepted societal norms that sometimes go against
accepted ethical standards in other societies (Okeahalam & Akinboade, 2003;
Parboteeah, Seriki, & Hoegl, 2014). Although some authors have defined decision-
making as the art of choosing a course of action among various alternatives
(Ghuman, 2010), others view it as the process of selecting a logical choice from dif-
ferent options. The rational perspective as propounded by authors who belong to
the rational school of thought (Baumann, John, Dalgleish, & Kern, 2014;
Hammond, Keeney, & Raiffa, 2015) view decision-making as a systematic process
of selecting among alternatives based on known facts or reason. They have not con-
sidered the influence of such cultural and religion on the decision as it appears to be
in Africa. As such, Robbins (2001) stipulates that there have been limited studies
about how these influence the decision-making process.
Furthermore, several authors (Besley & Reynal-Querol, 2014; Birdsall, 2007;
Zoogah, Peng, & Woldu, 2015) have described the weak nature of institutions in
Africa. The dynamic nature of governments, institutions and the operating environ-
ment present a challenge in how decision makers analyse risks and make decisions
within the region. The challenge of insufficient data in Africa also influences the
approach to decision-making. Studies have shown that a significant challenge for
managers within the continent is the unavailability of sufficient information to aid
decision-making (Cogneau, 2016; Jerven & Johnston, 2015). Therefore, consider-
ation must be given to how lack of information influences decision-making in
Africa. In addition to the factors mentioned above, the dynamic nature of the
Decision-making Practices in Africa 223
African business environment (Kiggundu, 2002) also presents a further challenge to

executives who have to make business decisions.
This chapter aims to derive a clear understanding of nature, peculiarities and
factors that influence decision-making by executives and managers across the vari-
ous sub-regions of Africa. The primary focus of this study was on factors such as
culture, religion, institutions, availability of information and dynamism of the
environment amongst others to determine the influences of these factors on execu-
tives faced with making decisions within companies. It identifies similarities as well
as differences in the approach employed by decision makers across the various sub-
regions of Africa. This chapter is organised into seven sections. First 1 is the intro-
duction which gives an overview of decision-making practices in Africa, followed
by a brief description of the selected field of management (Organizational
Behaviour). The next section provides a summary of indigenous practices in Africa
and a comparison with other Western models of decision-making. A detailed dis-
cussion of decision-making practices in the African sub-regions was carried out in
the subsequent section. The methodology adopted in this study was described, as
well as extracts of interviews conducted with two chief executive officers (CEOs)
with operations in Africa and critical factors that influence their decisions.
Also, a comprehensive interpretation of data from the questionnaire adminis-
tered and discussion about the factors affecting decision-making in Africa was
examined. It considered the influence of culture, religion, institutions, lack of infor-
mation and other environmental factors as well as how they differ across the vari-
ous sub-regions of Africa. It also revealed the extent to which the factors as
mentioned earlier affect the decisions of managers operating across different
African countries. A section is dedicated to giving general advice for managers and
educators, as well as the benefit derivable from the understanding of decision-
making practices in Africa. The penultimate section describes the overall chapter
framework through the use of a model which gives a conceptual representation of
the chapter. The final section rounded off the discussion with summary and conclu-
sions on how decision-making could be improved by executives in Africa.
Brief Description of the Selected Field of Management:

Organisational Behaviour
Organisational behaviour (OB) is an area of management concerned with the
understanding, prediction and management of individuals’ behaviour within orga-
nisations. It focuses on the performance of both individuals and teams within an
organisation. In addition to its role in examining the behaviour of humans within
an organisation, it also examines the individuals’ role in job performance, leader-
ship, motivation, etc. There are two perspectives on OB: internal and external.
The internal perspective views the individuals’ behaviour as being based on feel-
ings, thought process, previous experiences and personal values. On the other
hand, the external perspective views an individuals’ behaviour as being based on
224 Enase Okonedo
environmental factors such as political factors, economic indicators, technological

advancement, social interactions and legislation. Organisational behaviour exam-
ines human behaviour within an organisational context, their interaction with one
another and the organisation as a whole.
Organisational behaviour is a multidisciplinary field which draws knowledge
from psychology, sociology, anthropology, social psychology, economics, etc. An
integration of these fields fosters the adequate understanding of how individuals
behave within an organisation. The scope of OB has expanded to include activities
of the external environment. Traditionally, OB focused on the concepts of motiv-
ation and the art of coordination of employee activities within the organisation.
More so, recognising the fact that organisations do not exist in isolation shaped
organisations as a whole (Campbell, Judge, & Robbins, 2010; Stroh, Northcraft, &
Neale, 2002). There has always been a stiff challenge in understanding how OB is
viewed across different culture by both academics and industry practitioners. The
complex dimensions of individual and organisational characteristics, societal factors
and external indicators need to be integrated into research to enable an excellent

understanding of the field (Aycan, 2000; Fischer, Ferreira, Assmar, Redford, &
Harb, 2005).
Relevant Indigenous Management Practices

There are varying views and perspectives postulated by early management scholars
on indigenous management practices in Africa. Not only is there the challenge of
definition but also the challenge of what makes up those indigenous practices.
While Jackson (2004) bolsters the view of (Kiggundu, 1989) that indigenous man-
agement can be described as bureaucratic and centralised, Ayittey (1991) views
otherwise and posits that indigenous management is characterised by consensus and
communal leadership. Marsden (1991) views indigenous management in three
ways indigenous people, indigenisation and insider knowledge. He saw indigen-
ous management as the method of management that shows the understanding of
the community. The South African Ubuntu ideology describes the African concept
of community and togetherness in decision-making and leadership. Traditionally, a
consensus approach to decision-making was adopted after series of discussions
before a single decision was made. This was done through consultation and inclu-
siveness in the decision-making process (Jackson, Amaeshi, & Yavuz, 2008;
Mangaliso, 2001).
On the contrary, Western models of management and decision-making are based
on the principle of rationality. Previous studies have looked at decision-making
from a rational perspective and models on the process of decision-making have
been proposed. Examples include the ‘PrOACT Model’ developed by Hammond
et al. (2015), ‘The Decision-making Ecology (DME) and General Assessment and
Decision-making (GADM) Model’ of Baumann et al. (2014). However, research in
decision-making has increasingly begun to delve into how the human mind works,
the various factors that come into play in decision-making by executives, and the
influence of heuristics and psychology in the process (Churchman & Schainblatt,
1965; Clemen & Reilly, 2013). There remains limited research into how differences
in the environment in which decisions are made may affect the process. Executives
and managers tend to approach decision situations from various perspectives, rely-
ing on the existence or absence of some factors before they decide. Some of the
approaches commonly employed are discussed.
• The rational decision-making model in which a problem is identified and alterna-

tives are known and set-out. The pros and cons of each are analysed using rele-
vant criteria based on the desired objective and the most suitable option selected
(Simon, 1979).
• Bounded rationality: This is the idea in decision-making in which the individuals’
rationality is often restricted to the information they possess, the subjective con-
straints of their minds and the limited time they have in making a decision.
Managers and executives try to construct simple models with the aim of selecting
the necessary information and avoiding complexity (Simon, 1982).
• Intuitive decision-making: The regular use of intuition and gut feeling especially
when the use of objective decision is ambiguous is a conventional approach used
by managers in business decisions. It is a process created out of prior experience
or knowing without deliberation (Dane & Pratt, 2007).
Factors Influencing Decision-making: An African Perspective
Culture creates specific rules that guide an individual in decision-making and also
makes individuals respond in specific ways to the events around them (Briley,
Morris, & Simonson, 2000; Chiu, Morris, Hong, & Menon, 2000). Ethnic and tribal
cultures are the bedrock of the African continent (Mau, 2000). This influences every
aspect of life and has shaped the way in which Africans respond to decision-making
in their environment. Increased diversity results in enormous challenges faced by
managers and executives in business as it leads to a more complex decision-making
situation. In studying the effect of culture on decision-making, research has proven
that traits play a significant role in informing our decisions (Kollmuss & Agyeman,
2002). Over the last decade, trait and cultural differences as a measure of culture
have received significant attention empirically. It has been discovered that the effect
of cultural differences on decision-making changes due to context (i.e. nature of the
task, time and choice alternatives). Thus, managers in Africa need a detailed under-
standing of cultural differences in decision-making, especially for decisions that per-
tain to external parties (Javidan & House, 2001).
An understanding of these factors can aid managers in business-related decisions
such as marketing decisions, negotiations and customer relationship management
decisions. As companies become more global, an adequate understanding of cul-
tural peculiarities could lead to a tremendous boost in internal performance. Being
226 Enase Okonedo
informed about the role and effect of culture enables managers to conciliate and
adapt to the cultural differences, thereby reducing haphazardness and error in
making decisions (Montgomery & Weinberg, 1979). In considering religion and its
influence on decision-making, various studies have established the relationship
between religious awareness and ethical decision-making (Loe, Ferrell, &
Mansfield, 2000; Rachels & Rachels, 2003). Iannaccone (1998) in his book titled
Economics of Religion identified religion to be a factor that enhances economic deci-
sion by managers; the role of spirituality in economic decisions; the nature of eco-
nomic models when altered to address issues concerning values and beliefs; and
finally analyses how religion influences economic choices emanating from indivi-
duals and managers in business. Indeed, the study of religion as an element that
influences economic decisions can be dated back to the days of Adam Smith.
Anderson (1988) suggests that it is a rational action for individuals to take part
in religious activities to improve their human capital. Religion is connected with
some societal decisions made by managers and executives as a result of their organ-
isational relationship with its environment. In some regions of the world, research
has found that individuals with a high level of religiousness and spirituality are
more risk averse. (Miller & Thoresen, 2003; Park, 2007). Studies have revealed that
there exists a strong relationship between religion and the development of Africa
(Haar & Ellis, 2006; Lunn, 2009; Marshall, 2001). Being a growing force in Africa,
religious growth is seen through the increasing number of churches, mosques and
other religious activities in various countries of the continent. This, in turn, influ-
ences the development of values and ethical awareness within the region (Haar &
Ellis, 2006).
In Africa, the organisational effectiveness is affected by the institutional frame-
work within the operating environment. Ingram and Silverman (2002) postulated
that institutional theories (i.e. Institutional theories of Organisation; theories on
economic policy, etc.) significantly contributed to how management views the oper-
ating environment and has formed the basis of how managers and executives
behave and make decisions. North (1991) states that the institutional frameworks
are merely constraints developed and structured by humans for their co-existence.
Urban and Hwindingwi (2016) in their studies of institutional factors among the
African emerging markets also emphasised the relevance of law and order as factors
hugely significant. Thus, we were interested in knowing the extent to which institu-
tional factors influence managers’ decisions in the various sub-regions of Africa.
According to Huber (1990), information availability is of great essence to making
decisions by executives in the business. In the absence of adequate and relevant
information, managers could make decisions that will adversely affect the oper-
ational, financing and investing activities of an organisation. Considering that des-
pite this limitation, decisions are made in an organisational context, several models
(i.e. information theory, decision tree model, probability theory, etc.) have been
developed by scholars to aid decision-making under uncertainty. Lumpkin and
Dess (1996) opines that the art of decision-making is continuously becoming a
source of competitive advantage used by managers to take a step ahead of their
competitor within the industry. Individuals faced with decisions within
organisations possess different internal psychological characteristics (i.e. attitudes,

personality, perception, cognitive construct, risk appetite and assimilation) and
external environmental cues that might inform their decisions. (Dimofte, 2010;
Fazio, 2007; Hong, Chiu, & Huang, 2012).
Therefore, it is quite evident that the African culture is diverse, characterised by
a distinct group of societies with unique features and each with their particular
characteristic that portrays their lifestyle. Culture is often expressed in various
forms, i.e. languages, clothing, music, religion, crafts, etc. Irrespective of culture
being so diverse, there exist similarities between the different cultures obtainable
from the regions. Culture plays a significant role in the way individuals behave.
Insight into the knowledge of people’s culture forms the perceptual disposition of
objects in the environment (McCracken, 1986). This implies that culture contributes
to how people perceive and respond to stimuli from their environment. Cultural
knowledge constitutes the exact intellectual structure and decision principles that
influence our decisions and plays a significant role as to how individuals perceive,
interpret and respond to their respective environment (Janz & Prasarnphanich,

2003).
A broad view of culture as a significant factor that influences decision-making
raises critical questions such as what cultural factors affect the decisions of man-
agers and executives and can these be measured? Are they consistent across the vari-
ous regions of Africa? To explore these, we looked at the effect of different factors
on the decisions of managers and executives of multiple firms in different sub-
regions of Africa.
Decision-making Practices Covering the Sub-regions of Africa
Methodology
This research is aimed to examine decision-making practices in Africa by deriving a

clear understanding of the nature (essential qualities recognised by decision
makers); peculiarities (odd, unusual characteristics or distinguishing traits); and fac-
tors that influence decision-making in the African context. In line with these, a
mixed methodology (qualitative and quantitative) was adopted to aid our under-
standing of these factors and how they affect the decision of managers operating in
Africa. The qualitative methodology adopted was done through the use of inter-
views conducted with two CEOs of leading multinationals in Africa. The interview
aimed to understand how they approached decision-making in Africa, as well as to
identify how factors peculiar to Africa influence their decisions. Particular attention
was given to how factors such as culture, ethics, faith, information paucity and
institutions affect managerial decisions.
To derive an understanding of decision-making practices in Africa, a quantitative
methodology was also adopted to clarify the scope of the study. A decision-making
survey was used to generate data from managers across various African countries.
228 Enase Okonedo
This objective was to understand the complexities of decision-making in Africa.

The survey was conducted through the distribution of physical questionnaires (to
managers within Nigeria) as well as electronically (to managers in other regions of
African). Each questionnaire instrument contained 40 items which covered various
areas of factors influencing decision-making in Africa and how they affect man-
agers’ decisions. A total of 60 questionnaires deemed complete were analysed for
the study. Although the number is not entirely representative of the continent, it
captured data from three countries in East Africa (Tanzania, Kenya and Zambia),
two countries in West Africa (Nigeria and Ghana), two countries in Southern
Africa (South Africa and Namibia) and one country in North Africa (Morocco).
Considering the complexity and vast coverage of the study, the analytical method
adopted was ‘Factor analysis’. This technique aided the understanding of factor
loads of the dimensions in decision-making practices in Africa as specified by the
respondents. It enabled the finding and description of underlying factors that drive
decision-making within each region.
Interviews with Executives of Organisations in Africa

As stated in the methodology adopted in carrying out this study on decision-
making practices in Africa, interviews were conducted with two individuals with
vast experience from Southern Africa and West Africa. Both are CEOs and
Managing Directors of multinational corporations in Africa and shared their
experience with us on their decision-making practices.
Interview I
The first interview was conducted through a Skype meeting. The interviewee is a
Nigerian-based managing director but with vast experience from South Africa.
During the interview, he expressed his views on how the nature of his operating
environment (Nigeria and South Africa) influenced his decisions. Various questions
were asked about the factors that affect the nature of decision-making in regions
where he had been in business. Below is a detailed discussion of the interview ques-
tions asked and responses given.
When asked; ‘You have led your firm through various strategic decisions which
have resulted in the laudable recognition in the industry. How did you do this?’ The
respondent gave an elaborate overview of how he achieved these.
He replied thus:
We consider our company and our business and a big part of it is our strategic decision to
develop skill sets and focus on certain skill sets in a particular environment. That is, in
Nigeria, we have decided to focus on certain specific services that will differentiate us from
other competitors. So, focus and differentiation are the key things that guide our decision-
making. Personally, my decision-making has to be preceded by credible information. The
context within which the decision is being made has to be understood properly. In my first few
months in Nigeria, I had to learn the culture and context, as well as the current challenges so
that at each step to make a decision; I could reference the context and be able to separate the
noise from the substance. The environment seemed very dynamic, very vibrant, and a multi-
tude of things that had to be continuously dealt with to serve as a guide to my decisions and
recommendation. (IDI/Managing Director/South Africa/September 2017)
We asked if he was influenced by the prevailing culture of his environment and

how it affects his decisions. He described these as an essential component that must
be considered:
There are two perspectives to it the positive influence and the embedded challenges. As for the
positive, it is essential to understand societal hierarchy, how people operate, and people’s pre-
ferences in the work environment. That allows us as a company to harness the environment
where our staff can deliver. Thus, culture influences the way we set up ourselves and how we
communicate with clients in the various parts of the world. So, the knowledge of the culture
informs how we adapt to the environment. The challenging side is in understanding people’s
behaviour, how they view integrity. These challenges make us put in place additional measures
and steps to curb their differences in values. In South Africa, cultural implications of decisions
are of great importance and are slightly different from what is obtainable here in Nigeria.
Here, one of the critical things that a manager has to contend with is the ‘History of the coun-
try & that of Apartheid.’ This has to be considered in interpersonal decisions and in setting up
a company’s policy. On like Nigeria, historical information about the country is not as funda-
mental as it is in South Africa. Thus, culture is a critical factor that must be considered by the
executive in the business. (IDI/Managing Director/South Africa/September 2017)
When asked about his managerial style and how it influences his business deci-
sions in the region, his response was:
I’m a Democratic-Autocrat! Two things apply in this case; first, when trying to find a position
that I could defend and justify, I consult people and try to get other views that would aid the
decision. The second part involves dispensing the decision. Here, I try to convince the relevant
parties that the angle I want to take is the right one. I don’t believe in the direct autocracy, but
in a participatory one where others are involved. However, when the decision is made, I try to
explain to others and make them see reasons why the part I have taken is the right one. It is true
that different individuals have a different approach to leadership, but in my experience, I have
seen managers give instructions based on authority. In Nigeria, the managerial hierarchy is quite
high where the boss issues directions and expects the lower individuals to execute. I consider this
ineffective because these people are entirely disconnected from the top. My approach is different
because I believe that position matters but individuals involved should be carried along. I have
found this approach efficient and sustainable. In South Africa, managerial style is crucial
because organisational hierarchy is much flatter. This implies that if an employee is given a dir-
ective that he does not agree with, he will most likely not do it. On like the Nigerian case where
employees will most likely act as they are directed by their boss. Managers are more consultative
than autocratic in this region, and most times try to show employees why there is a need for a
particular cause of action. (IDI/Managing Director/South Africa/September 2017)
The influence of ethics in decision-making was also discussed. When asked ‘Has
there been a time you experienced an ethical dilemma when making a decision?
What did you do in such instance?’
230 Enase Okonedo
This CEO replied thus:
In Nigeria, there has been a case where I had to dismiss a person because of poor perform-
ance or because the position is redundant. At that point, the person will try to plead, and it
becomes an emotional thing. Even when their salary is converted to the hard currency, it
doesn’t have much impact on the overall company performance, but at the same time if
their performance is not where it should be or the position not required, for me to retain
them is not the right thing. In those instances, I am placed in a dilemma maybe because
I know them personally, or the struggle they are going through. I had to remove that in the
decision making otherwise, it becomes a burden and contrary to an objective decision.
Therefore, I endeavour to maintain objectivity to be able to make hard business decisions.
In South Africa, it is harder for managers to make such decisions there because of the
Legislation. Labour law and other legislation in South Africa are quite more challenging
for businesses when compared to Nigeria. Very often in South Africa, you have people in
an organisation who are not effective, but the manager can’t get rid of them because
they’re protected by the law. Thus, managers also have to consider this in making critical
decisions about employees and in the entire recruitment process. (IDI/Managing Director/
South Africa/September 2017)
The influence of faith (if any) on the manager’s decision-making was also exam-
ined. In this, the CEO had a different view when he commented thus:
I think that if faith is brought into the business, it would be difficult to establish the
point where to draw the line. If your faith differs from someone else’s faith or from
that of the organisation, whose faith takes precedence? So, I believe that business deci-
sion should not be faith influenced, but should be objective, neutral, cross-sectional and
fair to everyone in all ways. I don’t subscribe to any particular faith or religion and
remain completely neutral to religion in business decisions. (IDI/Managing Director/
Furthermore, we sought to understand how this CEO made decisions in the

absence of adequate information. His response was that:
A situation analysis is an approach I will adopt by considering the consequences and effects of
the various options available. In the scenario analysis, I relate it to experience and/or general
knowledge on such matters and then use that to make a decision. (IDI/Managing Director/
He went on to describe how regulation in the regions affected his decisions. This
was described as:
In Africa, the influence of regulation is extremely dramatic and pronounced. When we decide
to do something, or how to go about it, we always consider the regulatory position. In
Nigeria, the regulatory framework is ‘extremely influential but not always effective.’ They may
tend to be weak in terms of technical knowledge but is significantly influenced by political
evolvement. There’s too much political influence on regulators, and in line, affects our deci-
sions as business managers. In South Africa, the case is precisely the same, and I consider this
to be a common problem across the continent. (IDI/Managing Director/South Africa/
September 2017)
Finally, when asked if he would take legal action to enforce contracts or agree-
ment and how the effectiveness of the judicial system has influenced his decisions,
his concluding statement was:
I would prefer a personal dispute resolution option than a legal action. It is important to note
that a lot of theoretical instances differ from what is obtainable in practice. We would try as
much as possible to avoid a legal action up until a point where the relationship is broken
down. But as long as we could communicate with the other party, we try as much as possible
to settle disputes amicably and avoid disqualifying ourselves from the market entirely. In
South Africa as well, the legal action option is the very last resort to dispute resolution.
I haven’t had to go through the court process here in Nigeria. However, it is clear that there’s
a political influence on the court process and we try as much as possible to avoid that option.
This also applies to South Africa from my experience. (IDI/Managing Director/South Africa/
September 2017)
Interview II
For the second interview, the CEO who is the regional head of Africa and the
Middle East in a multinational firm in the agro-allied sector expressed his approach
to decision-making and how the nature of his environment influenced his decisions
by responding to interview questions sent him. Below is a summary of the questions
asked and responses received.
When asked: ‘You have led your firm through various strategic decisions which
have resulted in the laudable recognition in the industry. How did you do this?’
His response was that:
The critical thing is first to determine the strategy and the strategic direction of the organiza-
tion and agree that with all the relevant stakeholders. While doing so, it is always good to scan
the environment in which we are operating and try and align the firm’s strategy with that of
the country in which we operate then, would make the execution much easier. (IDI/Managing
Director & CEO/African region/September 2017)
When asked what factors he considers when making some of these critical deci-
sions for the organisation he leads and what factors weigh more heavily when
making such decisions, he replied saying:
You have to be honest/fair in making the decision which is in the true interest of the organisa-
tion. It’s best to align the relevant stakeholders to your decision. If you believe that what is
being done is in the best interest of the firm, then you have to be ruthless in implementation/
execution. The key factors in making the decision are the impact it has on the stakeholders
like the community where we are operating, employees, customers, etc. Also, the other import-
ant factor is the long-term benefits of the decision. (IDI/Managing Director & CEO/African
region/September 2017)
This CEO went further to say that he considers the culture of the operating
environment in making decisions, but this was not the central focus. In his view, the
organisational culture plays a vital role in the implementation of those decisions.
232 Enase Okonedo
I do factor in prevailing culture while making the decisions. But this is not the central guiding
force in making the decision. The central guiding forces are those factors mentioned above.
However, Organizational culture plays an important role in how you implement/execute those
decisions. (IDI/Managing Director & CEO/African region/September 2017)
In describing the effect of managerial style on his decisions, he described this as:
Predominantly consultative but when it comes to compliance, it is a lot more directive.

I would say the style is more a situational one. But as a person, I believe in a consultative
approach to have an effective execution. (IDI/Managing Director & CEO/African region/
September 2017)
He responded to the question on ethics as a factor that influenced his decision

saying the organisational ethos guided his decisions and formed the basis of assess-
ment when making decisions in an ethical dilemma. Although he said ‘My faith
doesn’t come in the way of making the organisational decisions’, he described the
insight developed from business dealings helped in building the right strategy for a
business.
When asked the question of how he goes about making decisions in the face of
insufficient information, his response was thus:
When in this situation, try and gather as much information as possible. Also, hold an extensive
discussion with all the relevant stakeholders. Then you go by what you feel the most appropri-
ate given the circumstances. The key is to always test your decisions with the emerging situa-
tions/additional information and make the course corrections as and when required without
any delay. (IDI/Managing Director & CEO/African region/September 2017)
In explaining the effect of regulations on his decisions, the CEO was of the view
that:
Regulator’s action does affect key investment decisions, especially when there is a 360-degree
change in policies basis which you had best to invest… Equally, regulators’ inaction also
affects the decisions. (IDI/Managing Director & CEO/African region/September 2017)
He went further to say that:
legal action to enforce contracts or agreements would be the last choice as any legal action is
always a time-consuming affair. In emerging markets like Nigeria, legal recourse is very inef-
fective. But this can act as an effective tool to push for an earlier settlement of the dispute.
Data Interpretation and Discussion
The data gathered from the various regions of Africa were analysed using SPSS
Version 20.0. Factor analysis was used in examining the responses gathered from
the survey conducted. Using this method, we described the known variations
among correlated items that capture inherent factors that influence managers’
decision-making. Peculiarities of each country showed how they differed from one
another according to their regions and how far they deviated from the regional
ideology when it comes to decision-making. Also, the respective countries in each
region were analysed to determine how decision-making practices in particular
countries deviated from that of the entire region. Variables such as culture, faith
and religion, institutions, information paucity, and ethics were measured as factors
that influence decision-making practices in Africa. To that effect, conclusions were
drawn from the analysis which revealed the extent to which each of these factors
influenced managers’ decision across the various African sub-regions.
West Africa
In analysing the cultural components that influence the decisions of managers in

this region, a factor loading of about 0.85 reveals that managers seek the advice of
others before making decisions and also made decisions based on consensus.
Loyalty cooperation described the relevance of teamwork, commitment and soci-
etal influence. This is explained by statements in questionnaire items C3, C8 & C9
(My society encourages cooperation among individuals; Loyalty to the groups
I belong to influences my decisions and the conventions, and rules of my society influ-
ence my decision). The analysis reveals that managers’ decisions were influenced by
suggestions from elders (0.755) and collective decision-making (0.607). This implies
that loyalty and cooperation were considered by managers when making decisions.
The effect of language differences was revealed by the analysis of questionnaire
item C12 (Differences in language has influenced the way I interact with people when
making decisions) where a strong factor loading of about 0.911 indicates the extent
to which language influences manager’s decisions. Thus, in examining the nature of
decision-making by West African managers, cultural factors significantly influence
the decisions of managers in the business.
Eight statements were analysed to understand how ethics influence managers’
decisions. For instance, items E5 & E7 (In making decisions, I act in ways consistent
with what society typically considers as good values and I attach great importance to
integrity when making decisions) explain managers’ overall consciousness about
existing norms of the society and how they were considered when making decisions.
Factor loading of 0.807 reveals that managers were strongly influenced by the
moral implications of their decisions and endeavour to conform to the values of the
society.
In the West African sub-region, while a weaker factor loading of 0.561 reveals
that managers were of the opinion that business decisions should be independent of
faith, it was observed that prayer and spiritual guidance influenced their decisions
(0.820). When asked if praying was something they considered in making a decision,
a stronger value of 0.84 shows that managers in this region strongly agree to the
statement. Others reveal that direction from their spiritual leaders was also import-
ant. Questionnaire items F6 & F7 describes these findings (i.e. praying to God is the
234 Enase Okonedo
first thing I do before taking a decision, and I seek divine inspiration from God before
making a decision). Analysis of data on information paucity reveals that in the
absence of adequate information, managers rely on their previous experience.
Given the statement ‘In the absence of information, I rely on previous experiences
to make a decision’, most managers (0.781) agreed to this. Managers in the West
Africa region either rely on prior experiences in making decisions or utilise available
information.
The nature of institutions as they influence decision-making was defined by two
factors: bureaucratic inefficiency and socio-political influence. On bureaucratic in-
efficiency, in response to the statement ‘Bureaucratic inefficiency influences the way
I make decisions’, a strong factor of about 0.84 reveals that this had a significant
influence on their decisions. They describe the manner to which socio-political
factors influenced their decisions by their response to items ININ2, IN3 & IN4
(Regular strikes and protests affect my long- and short-term decisions; Societal unrest
is considered when setting my objectives; the level of political instability influences my
decision on investment). A factor load of about 0.88 reveals that more managers are
affected by these institutional weaknesses. This implies that in West Africa, the
nature of institutions influences the decisions of managers and how they approach
decision-making.
The Nigerian Perspective

In Nigeria, relative to the results gotten from the broader West Africa region, the
factor loading reveals that the norms of the society, collective decision-making and
respect for superiors influenced managers’ decisions. The extent to which societal
norms influence them was revealed by statements on item C9. The influence of col-
lective decision-making was revealed by item C4: I rely on collective decision-making
because it is a societal norm, while their respect for superiors was disclosed by the
analysis of item C7: I accept and respect the decision of my immediate superior with-
out question. Item C1: I listen to other people’s advice and recommendation before
taking a decision shows that listening to others (0.80) influence managers’ decisions.
It is important to note that listening to the suggestions of people stands out as very
significant when analysing decision-making from the regional perspective. This find-
ing is in synchronization with the cultural norms where children are taught to listen
and seek advice from elders in the community before making important decisions.
Therefore, it is seen that culture is an essential component in decision-making prac-
tices in this region.
Peculiarities to how ethics influence the decisions of managers in Nigeria were
observed from the analysis. The findings show that managers operating in Nigeria
were affected by the need to protect their integrity, conform to moral principles and
behave in a manner that is socially acceptable. The need to preserve their integrity
was revealed by their response to items E4 & E5 (Honesty and integrity guide my
daily relationship with others; I attach great importance to integrity when making
decisions). A high factor loading of 0.94 shows that managers tend to opt for deci-
sions that do not diminish their integrity. Conforming to moral principles can be
explained by the result gathered from item E7. This shows a strong factor loading
about 0.91 as managers prefer to act in ways that are in tandem with the moral
standards of the society.
Other factors, within the Nigerian context, that influence managers’ decisions
were faith and spiritual guidance. In responding to questions F1, F4 & F6, When
I’m worried or nervous, my faith helps me decide on what to do; When trying to solve
a problem, I ask God for the right decision; and Praying to God is the first thing I do
before taking a decision, a factor of 0.80 strongly reveals its influence on managers’
decisions. The result unveiled the role beliefs and faith played on managers’ deci-
sions. Thus, in line with the view of Haar and Ellis (2006), the study shows that the
growing level of religious activities in the African context also influences decision-
making by individuals in the region.
In understanding how institutional framework influence decision-making, bur-
eaucratic inefficiency (as described in item IN6: Bureaucratic inefficiency influences

the way I make decisions) and inconsistency in government policies (as in question
IN7: Inconsistent government policies influences my long-term objectives) were found
to be of particular interest to managers when making decisions. Socio-political tur-
bulence as stated in items IN2, IN3 & IN4 Regular strikes and protests affect my
long- and short-term decisions; societal unrest is considered when setting my objec-
tives, and the level of political instability influences my decision on investment also
formed critical institutional components that influenced decision-making in the
region. It is important to emphasise that within the Nigerian sub-region, a strong
factor load of about 0.86 reveals that regular strike actions affect managers’ deci-
sions; 0.82 indicated the influence of inconsistent government policies; while 0.90
emphasised the influence of bureaucratic ineffectiveness. This implies that the insti-
tutional factors were key influencers of managers’ decisions in this sub-region.
The Ghanaian Perspective
The analysis reveals that managers in this region were influenced by the need for
cooperation and consensus, advice from elders, collective decision-making, lan-
guage differences and the rules of the society. A close examination of questionnaire
items (C1, C3, C10 & C11) I listen to other people’s advice and recommendation
before taking a decision; my society encourages teamwork among individuals; I make
decisions at work based on consensus, and having different perspectives contributes to
the way I make decisions reveals that they were influenced by consultation with
other people, the need for teamwork and a diminished self-interest as compared to
the interests of the group. Managers also agreed to the statement that the advice
from elders influence the decisions they made. This depicts that managers and
executives operating in Ghana attach importance to the expectations of the society
236 Enase Okonedo
before concluding their decisions. The extent to which each of these components
affects decision-making by managers reflects a distinguishing feature of the region.
Two ethical components were identified from the analysis: ‘values of the society &
moral uprightness’. Values of the society were captured by items E2 & E7 In mak-
ing decisions, I endeavour not to violate the standards of the community; and in making
decisions, I act in ways consistent with what society typically considers as good values.
A 0.95-factor loading shows that managers found the values and prevailing standards
of the society to influence their decisions significantly. Moral uprightness shows that
moral relevance is considered significant in managerial decision-making. Similar to
the Nigerian perspective, integrity and moral uprightness were also unique peculiar-
ities to Ghana. Managers in this area are particularly conscious of decisions that
affect their integrity.
From the analysis, a strong (0.70) factor loading reveals that faith influences
decision-making. Judging from the statements given in items F1, F2 & F4, man-
agers place high importance on the direction from God and see it as an essential
factor that must be considered in making a decision. The analysis of item F8 I

rely on prophecies from spiritual leaders when making decisions with a 0.85-factor
load shows that they were influenced by the guidance from religious leaders. As the
overall West African perspective depicted, the peculiar components of information
paucity were intuitive decision-making and experience. Reliance on experience is
also prevalent as the results have shown that managers within this region rely on
previous experiences when faced with a challenge of insufficient information. It
could be inferred from the factor analysis of about 0.90 that some managers prefer
to do nothing (as seen in item IP5 I do nothing when information is unavailable)
when little or no information is available.
Finally, institutional factors such as ineffective governance, bureaucratic ineffi-
ciency and societal unrest were the fundamental components that highlight the
influence of existing institutions on decision-making. These factors were explained
by managers’ response to statements on items IN1, IN3 & IN6, respectively, and a
factor load of 0.80 indicates the influence of ineffective governance; 0.90 indicates
bureaucratic inefficiency; while 0.95 suggests the impact of social unrest on their
decisions. This shows that managers operating in this region are influenced by the
factors mentioned above when making a decision. Thus, the nature of decision-
making in Ghana shares some similarities with other West African countries and
these depict a commonality within the region.
Southern African Perspective

From the analysis, cultural influence on the decisions of managers operating in this
region encapsulates an exciting discovery of components that influence their deci-
sions: Loyalty and language differences; collective decisions and respect for the
decisions of superiors. Item C12 (Differences in language has influenced the way
I interact with people) explains the role of language on managers’ decisions and
reveals (i.e. factor loading of 0.983) that in this region, there is a need for managers
to understand the language of the community in which they operate as this will
influence the quality of decisions they make. The result from item C8 shows that
loyalty (0.98) to the group or social category to which they belong influence some
decisions. Collective decision-making is explained by the influence of teamwork and
consensus when making decisions. Item C3 (with a factor loading of 0.892) explores
how society encourages cooperation among individuals. The last component identi-
fied was the extent to which respect for the decisions and suggestions of superiors
influence the decisions of managers. They tend to have high regard for the superior
(i.e. as illustrated by item C7) and rely less on their personal views when deciding
for a group they belong.
In analysing the ethical components, the most outstanding factor that managers
operating in the region considered relevant was moral soundness and high integrity.
Compared to West Africa (i.e. Nigeria and Ghana) where managers are signifi-
cantly influenced by societal values and a moderate level of moral awareness, the
South African region reveals that managers are highly sensitive to the moral justifi-
cation of a decision before it is made, and managers consider the effect of such deci-
sions on their integrity. Items E1 & E4 respectively explain this and a factor loading
of 0.90 shows that managers operating in the Southern Africa region attach a high
sense of responsibility to the morals that govern societal interaction, as well as cher-
ish their public image and consider the effect of these on the choices they make.
In this region, faith was also discovered to have some influence on executive
decision-making. This stands out as managers sometimes rely on the act of prayer
to inform their decisions. This was revealed by their responses to when asked if they
sought divine inspiration before making a decision (Questionnaire item F6), a factor
loading of 0.90 shows that managers were strongly influenced by prayers or other
forms of spiritual consultation when making decisions. Over 0.92 factor load reveals
that guidance from religious leaders (i.e. pastors, clergy, etc.) was a critical compo-
nent that influences the decisions of managers in the business. From the perspective
of the influence of faith in decision-making, one could infer that some managers
sought spiritual direction before making critical decisions that would have a signifi-
cant impact on their operations.
Unavailability of adequate information causes managers to adopt different
approaches to decision-making. Within the South African region, we can infer from
the results gathered (i.e. 0.95-factor loading) that managers rely on their intuition
(as revealed by questionnaire item IP1), while about 0.93 factor shows a reliance on
the experience of the event. 0.95-factor loading indicted that managers would prefer
to do nothing when faced with such an instance as indicated by Item IP5. The
nature of existing institutions in South Africa was also examined to enable us to
understand how these influence decisions of managers operating in the region.
Three components were identified to be peculiar to this region: socio-political influ-
ence (i.e. political instability, social unrest, regular strikes, etc.); inefficient govern-
ance and bureaucratic inefficiency. The inefficiency of the government and
bureaucratic inefficiencies also significantly influence the decisions that managers
make. Some of these components weigh more heavily than others (IN1-0.96;
238 Enase Okonedo
IN6-0.93; IN7-0.482, etc.) and it’s important to note that in this region, socio-
political agitation was considered to strongly influence managers’ decision.
Republic of South Africa
Faith is another interesting dimension that we investigated, and it reveals the same
factors attributable to the region. Two components were also identified to influence
the decisions of managers in this region: ‘Decision guided by faith and reliance on
God.’ On decisions guided by faith, 0.80-factor loading indicates that managers rely
on their faith and divine direction when faced with critical decisions while a rela-
tively low portion of them (0.45) rely on God when making a decision. Similar to
West Africa (Ghana specifically), the analysis reveals that when faced with informa-
tion paucity; managers in South Africa rely on their intuition to make decisions.
This was captured by Item P1 on the questionnaire: ‘Where information is unavail-
able, I follow my intuition and gut feelings to make decisions’. Therefore, while
others will prefer to act passively, some other managers rely on their intuition to
make key decisions.
Societal factors and poor governance were identified as the critical institutional
components considered by managers when making decisions. Societal factors such
as regular strikes; societal unrest; and overall instability, while poor governance is
explained by two sub-factors: Inefficient governance and inconsistent policies.
Items IN1, IN2, IN3 & IN5 illustrate these factors.
North African Perspective
Interestingly, the results generated from our finding found no significant influence
of culture, ethics, faith and information paucity on the decisions of managers.
While it is important to note that managers in this region might be influenced by
other factors, the factors mentioned above were not found to be significant determi-
nants of their decisions. However, institutions were found to be significant factors
that managers consider when making decisions. As such, two key components:
socio-political inconsistency such as social unrest and political instability stood out
as the key differentiators that influence decision makers. Bureaucratic inefficiency
and the nature of political interference with business were also factors managers
considered most relevant and influential to their decisions.
East African Perspective
Using factor analysis, four components teamwork, societal influence, elders’

advice and language differences were identified the major factors that influence
managers’ decision-making in the region. Teamwork can be explained by their
proclivity for a collective decision, respect for superior opinion and a general sense
of community as indicated by factor loading 0.83. Therefore, managers in this
region are influenced by the views and suggestions of elders, sensitivity to the lan-
guage spoken by the people and the need for consensus. Prayer and reliance on spir-
itual leaders were components that explain the influence of faith on decisions of
managers in the region. When asked about the significance of faith in their deci-
sions, Survey items F1, F6, F7 & F8 reveal managers disposition towards faith. A
factor loading of 0.70 shows that faith played a role in influencing their decisions.
When asked how they made decisions in the absence of adequate information, a
factor loading of 0.899 shows that managers in this region referred to their previous
experience to a great extent. They express the opinion that their subsequent deci-
sions are anchored on their intuition or prior experiences. Institutional framework
in this region was explained by ‘strikes and societal unrest’ as well as ‘inefficient
governance.’ The same qualities (i.e. regular strikes and societal unrest) that are
prevalent in the nature of other regions also comes to play in this region.
Kenyan Perspective
In the case of Kenya, our analysis reveals that the most significant factor that influ-
ences managers’ decision-making is institutional factors. Of these, bureaucratic
influences (0.85), strikes (0.67) and societal unrest (0.85) were revealed to be the key
factors. Through the survey conducted, managers express their inclination as to
how strong or weak the existing institutions influenced their decisions. The factor
loading stated above depicts the peculiarity of decision-making in Kenya as man-
agers operating in the region tend to be sensitive to environmental factors such as
institutional gaps.
Advice for Managers and Educators
There is a need for managers and educators alike to adequately understand the
nature of decision-making within the African continent. The dynamic nature of the
African business environment, as well as the diversity of culture, religion and ethni-
city poses a significant challenge to decision-making in the region. For educators, it
facilitates an understanding of decision-making practices across Africa which
enables them to effectively facilitate knowledge sharing with executives and man-
agers. It is expected that this will improve decision-making culture among educators
and their audience. Thus, it guides decision-making practices in the business envir-
onment. For managers in practice, it clarifies the ambiguity that might arise in
understanding how decisions are made given the influence of ethics, cultural ideas,
institutional matters, religious excesses and lack of information. Managers will
make more effective decisions and expected to improve productivity when they are
guided by a deep understanding of how decisions are made.
240 Enase Okonedo
Having identified that socio-political influence such as regular strikes and social
unrest as well as bureaucratic inefficiencies that affect decisions, managers should,
therefore, be mindful of the effect of these on any course of action taken. Given the
communal nature of decision-making within the African context, it is important for
organisations to be mindful of over-emphasising the individualistic approach in
decision-making. When considering different aspects of business decisions, a com-
munal approach will assist to reduce sub-optimal decisions within this context.
Also, to avoid managers conforming to societal values that may be considered
unethical, it is imperative that organisations articulate boundaries defining un-
ethical practices so that decision makers in these environments can be appropriately
guided.
For executives operating in the African environment often characterised by
inconsistencies and lack of stability in government policies, decision-making could
be challenging as it affects long-term planning. Under such circumstances, man-
agers require skills such as adaptability and creativity to enable them to adapt to
the changing environment and make appropriate decisions. Organisations have to

consider ways by which they engage policy makers to ensure policy stability related
to specific industries for continued economic development of the various regions.
Furthermore, an in-depth knowledge of decision-making practices in Africa will
enable managers to reduce biases when making decisions. Being aware of the envir-
onmental factors that influence their decisions, managers are better able to distil
biases that impede effective decisions. This involves a conscious effort to separate
Decision-Making Practices in Africa
African Regions
Factors Influencing Decision Making

Practices
Institution
Culture Faith Information
Ethics
Paucity
• Consensus DM • Faith • Bureaucratic

• Elders • Prior • Moral Soundness Inefficiencies
Consultations Guidance Experience • Conformity to
• Language • Spiritual • Sociopolitical
• Intuitive Societal Values Agitations
Influence Leadership
• Loyalty & Decision • Moral principles • Ineffective
Cooperation • Supernatural Making(DM) Governance
• Collective DM Influence
Figure 1: Overall Chapter Framework.

objective facts from prejudices, and in turn, improve the quality of decisions made
(Figure 1).
Summary and Conclusion
Decision-making is an essential competence for managers. By being cognisant of

the factors that influence decision-making, organisational performance can be
improved significantly. Through an enhanced understanding of decision-making
practices in Africa, managers within various sub-regions of Africa can effectively
make appropriate decisions that suit the context in which they operate. In line with
the Ubuntu concept in African philosophy, our study of decision-making practices
in various sub-regions of Africa revealed that culturally, decision-making was
broadly based on community, social harmony and a sense of group involvement.
Being known for her cultural and ethnic diversity as well as different religious and
traditional beliefs, our study identified the factors that influenced decision-making
within the African context.
In our study to analyse the essential factors recognised by decision makers in
Africa, we found that a conglomeration of factors influences managers’ deci-
sions. These factors could serve as strengths and opportunities for better deci-
sions or pose challenges to effective decision-making. From the study, cultural
and ethical factors, as well as accepted norms of the operating environment
influence the decision maker, and also, they were identified as important envir-
onmental factors that should be considered by managers operating within the
African context when making a decision. Also, the nature of the institutional
environment in Africa was also identified as significant to making a decision.
Although described as relatively weak when compared to the Western institu-
tional environment, managers in Africa ought to adequately understand the
peculiar features of African institutions. To improve operational performance
and enhance effective decisions, our study identified factors such as bureaucratic
inefficiencies, societal unrest, inconsistent and government policies that should be
factored into managers’ decision. This implies that business decisions made with-
out carefully examining specific institutional factors might be disrupted by some
institutional tendencies.
From our study, decision-making in Africa upholds the ethical dogma of
moral soundness and integrity that conform to socio-cultural norms. Thus, the
decision-making practice in Africa greatly relies on elders’ consultation to validate
intuitive decision-making which ensures loyalty and cooperation in decision-
making practices. Some identified challenges faced by decision makers in Africa
include information paucity, the complexity and dynamism of the environment as
well as cultural and religious factors discussed in the section on decision-making
practices in the African sub-regions. To enhance the quality of decisions, it is
imperative to understand how the fundamental factors commonly identified
impede decision-making and how to address these within organisations.
242 Enase Okonedo
Improvement in the quality of decision will result in enhanced performance and

profitability, better acceptance by the society and increased value for the organ-
isation. Therefore, from the interviews and survey carried out, these peculiar fac-
tors for the respective African regions are identified and summarised below.
Collective Decision-making
The traditional African culture of living in communal settings where decisions are
jointly taken, and actions carried out in the common interest and for the common
good has transcended the communities into modern workplaces. Across the sub-
regions of West, East and Southern Africa, the study revealed that the more
common approach to decision-making is by consensus. Managers and executives
seek advice from others in making decisions. This consensus approach to decision-
making has value for organisations as it means that decision makers are open-
minded and welcome a variety of views especially from superiors that may lead to
better outcomes. To harness this, organisations need to guard against over-
emphasising the individualistic approach in different aspects such as performance
evaluation and reward systems which may lead to sub-optimal decisions. Thus, we
can effectively conclude that the traditional approach to decision-making practices
in Africa remains mainly by consensus and remains prevalent even in contemporary
decision-making approaches.
Integrity and Societal Norms
Furthermore, the traditional norms of the African society where actions of indivi-
duals living in communities are moderated by a fear of going against accepted
moral standards rather than by formal policing come into play. We find that
decision makers in organisations across the regions (i.e. West, East and Southern
Africa) place great emphasis on what the society in which they function considers
ethical values and are guided by these values when making decisions. The argu-
ment could be made that as societies have evolved and become subject to influ-
ences from other cultures and increasing unethical and corrupt practices, the
understanding of what is morally acceptable may have become skewed.
Therefore, if the younger generations of managers who have been raised in dys-
functional societies are being guided by such wrong values, when faced with deci-
sions, they may be conforming to societal values which may per se be unethical. To
counter the risk of this happening, which may have adverse consequences for orga-
nisations, it is imperative that organisations articulate boundaries especially govern-
ing unethical practices so that decision makers in these environments can be
appropriately guided. Therefore, despite the results generated from the study which
indicated that managers considered societal values as well as the moral implication
of their decision, some traditional practices are gradually fading away as the present
African society is faced with the risk of increasing integration of Western cultures
and ideologies.
Faith and Religion: Reliance on Spiritual Guidance
Another interesting finding from the study across the West, East and Southern
Africa sub-regions is the emphasis placed on faith and beliefs when faced with deci-
sions as shown by the survey. It is interesting that even though in general, the
respondents in the interview assert that decisions should be independent of faith,
the respondents to the survey across other countries answers to questions regarding
praying before making decisions and seeking spiritual guidance show the contrary
and a reliance on these factors. It may not be surprising given the deep religiosity of
most tribes in Africa. These factors contradict the rational approach to decision-
making which is commonly used in various organisations and societies. While they
may not be inimical to good decision-making if used in addition to a systematic
approach, they may be costly or damaging if heavy reliance is placed on these to

the neglect of a systematic approach. Therefore, organisations have to ensure that
there is a process in place to guide the approach to decision-making.
Paucity of Information
Another important factor that merits some discussion is what the predominant
approach is when faced with a paucity of information. In West and East Africa, we
find that in such situations, decision makers rely mainly on past experiences,
whereas in Southern Africa, they rely primarily on intuition or gut feeling in such
cases. Nevertheless, reliance on these is risky as the decision makers are often lim-
ited by their exposure and experiences. To guard against these, decision makers
have to be mindful of the psychological biases that lay them open to errors of
judgement where there is a paucity of information. Furthermore, there may be emo-
tional tags (an unconscious occurrence whereby the brain stores the occurrence of
an action or event together with the emotions associated with it) prevalent in the
minds of the decision maker which may lead to poor decisions. Besides, where
information is missing, determine if there is information relevant to the decision to
be made which can be obtained albeit at a cost. Where none exists, seek to gener-
ate/collect primary data, and even in situations where relevant data is available, be
mindful that in certain circumstances, these have to be queried and adjusted for
given the large informal sector of the African economy.
Bureaucratic Inefficiency and Government Policies
Bureaucratic inefficiency and inconsistency in government policies were found to

be of particular significance to managers of all African regions when making
244 Enase Okonedo
decisions. Socio-political turbulence also formed important institutional compo-

nents that influence decision-making across the region. With specific reference to
North Africa, socio-political inconsistency such as social unrest and political
instability stood out as the key differentiators that influenced decision makers.
For executives operating in environments in which there are inconsistencies and
lack of stability in government policies, it presents an unusual challenge as it
affects long-term planning. In such instances, it is imperative that decision makers
possess skills such as creativity, adaptability and the ability to think outside the
box. Organisations have to consider forming or becoming part of industry groups
and influential business leaders who can work with the government in power to
ensure policy stability related to specific industries for continued economic devel-
opment of the various regions.
In conclusion, having sought to derive a clear understanding of the nature, pecu-
liarities and factors that influence decision-making by managers across the various
sub-regions of Africa, particular attention was placed on factors such as culture,
religion, institutions, availability of information and dynamism of the environment

amongst others to determine their influences on the decisions of managers. I hope
that this chapter while setting out the results of the study into external factors that
influence managers in Africa has provided useful insights into how such factors can
be managed to ensure optimal decision-making.
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Indigenous Management Practices in Africa

Decision-making Practices in Africa

*Related content and download information correct at time of download.

Keywords: Decision-making; culture; faith; institutions; information paucity;

Indigenous Management Practices in Africa: A Guide for Educators and Practitioners

African business environment (Kiggundu, 2002) also presents a further challenge to

Brief Description of the Selected Field of Management:

environmental factors such as political factors, economic indicators, technological

and external indicators need to be integrated into research to enable an excellent

Relevant Indigenous Management Practices

• The rational decision-making model in which a problem is identified and alterna-

Factors Influencing Decision-making: An African Perspective

organisations possess different internal psychological characteristics (i.e. attitudes,

interpret and respond to their respective environment (Janz & Prasarnphanich,

Decision-making Practices Covering the Sub-regions of Africa

This research is aimed to examine decision-making practices in Africa by deriving a

This objective was to understand the complexities of decision-making in Africa.

Interviews with Executives of Organisations in Africa

We asked if he was influenced by the prevailing culture of his environment and

This CEO replied thus:

Furthermore, we sought to understand how this CEO made decisions in the

Predominantly consultative but when it comes to compliance, it is a lot more directive.

He responded to the question on ethics as a factor that influenced his decision

He went further to say that:

Data Interpretation and Discussion

In analysing the cultural components that influence the decisions of managers in

The Nigerian Perspective

eaucratic inefficiency (as described in item IN6: Bureaucratic inefficiency influences

The Ghanaian Perspective

factor that must be considered in making a decision. The analysis of item F8 I

Southern African Perspective

Republic of South Africa

North African Perspective

East African Perspective

Using factor analysis, four components teamwork, societal influence, elders’

Advice for Managers and Educators

the changing environment and make appropriate decisions. Organisations have to

Decision-Making Practices in Africa

Factors Influencing Decision Making

• Consensus DM • Faith • Bureaucratic

Figure 1: Overall Chapter Framework.

Summary and Conclusion

Decision-making is an essential competence for managers. By being cognisant of

Improvement in the quality of decision will result in enhanced performance and

Integrity and Societal Norms

Faith and Religion: Reliance on Spiritual Guidance

approach, they may be costly or damaging if heavy reliance is placed on these to

Bureaucratic Inefficiency and Government Policies

Bureaucratic inefficiency and inconsistency in government policies were found to

decisions. Socio-political turbulence also formed important institutional compo-

religion, institutions, availability of information and dynamism of the environment

Simon, H. A. (1982). Models of bounded rationality: Empirically grounded economic reason

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