Abstract
The purpose of this study is to compare and evaluate how an independent bank in Southern California makes certain financial operating decisions to the theories of decision making; and to make recommendations as to how to improve the quality of the decision-making procedure for the various independent banking officers, and recommend further academic thought and research that could be done in this area of decision making. This research effort seeks to: (1) identify the variability in the decision-making process among individual banking officers utilizing different decision-making techniques or styles when they are making decisions pertaining to accepting funds for deposit and/or granting of credit as well as (2) determine what financial information is used or needed in this decision-making process. The branch-banking officers follow their own informal procedure when they are making decisions to accept funds for deposit and/or grant credit. Each individual officer has his or her own unique decision-making style. Many of the banking officers only used a selected portion of their decision-making process to deliberate their choice as opposed to evaluating their complete decision-making procedure and then deliberating their choice. Many of the decisions were based on emotions, feelings, and comfort of the decision maker rather than on facts, figures and findings. A formalized system of decision-making procedures should be adopted to help the decision makers make uniform financial operating decisions. This procedure should have a systematic deliberation process that would prescribe a logical and deliberate process for the decision maker to follow, identify the objectives, evaluate the alternatives, measure the benefits and risks of each alternative, and deliberate choice. Such a procedure would be in accord with the theories of decision making. (Abstract shortened with permission of author.).