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Comparing Public and Private Sector Decision-Making …

Comparing Public and Private SectorDecision- making PracticesPaul C. NuttThe Ohio State UniversityABSTRACTP ublic and Private Sector decision making is studied with an experiment. The study comparesdecision making in a tax-supported general purpose governmental agency with that doneby a business firm selling to a market, using a simulation to capture differences in thepreferences and practices of mid-level managers working in the two sectors. The simulationcalls for participating managers to assess the risk and prospect of adopting budgets tailoredto match each Sector . A cognitive culture that stresses analysis, speculation, bargaining, ornetworking is employed to fashion a budget appropriate for a Public and a Private sectororganization, each with a controversial and a noncontroversial budget amount.

SECTOR, CULTURE-BASED DECISION MAKING, AND CONTROVERSY As noted by Papadakis and Barwise (1998), the influence of context on decision making is largely unexplored. Contextual influences arise from an organization’s role in a society, such as being an instrument of public policy or a means for creating wealth for shareholders.

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