Chapter 1 The Russian Model of Decision Making in Modern Business Systems

Purpose The purpose of the work is to develop a Russian model of decision-making in modern business systems. Methodology The method of modeling of socioeconomic systems and the method of formalization for graphic presentation of results of modeling are used. Conclusions A Russian model of decision-making in modern business systems is developed; it reflects not only the structure of managerial tools and peculiarities of its communication with business entities, that is, internal hierarchy of the business system, but also the algorithm of decision-making in modern Russian business systems, which includes six consecutive mandatory stages. The presented model showed simplicity and clarity of hierarchy of managerial staff and the business system on the whole. Due to this, authorities and responsibilities are not doubled – each business entity under the management of functional manager performs strictly determined business processes. This allows dividing any problem into a lot of subproblems, which are effectively solved by the corresponding functional managers on the basis of the mechanism of labor division. Due to this, alternatives are selected over a short period of time. Originality/Value It is determined that, despite multiple advantages, connected to logical succession of the process of making of managerial decisions in modern business systems, the Russian model of this process has drawbacks that are caused by stage-by-stage and fragmentary solution of problems and implementation of decisions, as well as by underdevelopment of feedback and marketing activities.