ROLE OF INTUITION IN MANAGERIAL DECISION QUALITY

• Main Author: Revanto, Firman
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/39388
• Institution: Institut Teknologi Bandung

Upstream oil and gas companies face risks due to uncertainties of, such as, fluctuation of commodity prices, safety, environmental issues, politics and global socioeconomic situation. Therefore, managerial decisions are crucial. Reliable decision making process is very essential. Decision makers are accountable to ensure the expected quality of decision will be achieved. While logical analysis is still a norm in the decision making processes, the roles of tacit knowledge and intuition has been recently getting more attention in the management literatures. Intuition is considered essential to making good and right decisions, particularly for those managers in an organization who sometimes are under the conditions of high uncertainty. This study investigates how and to what extent intuition involved in the process of decision making. The research presented in this thesis is “a snapshot” of how intuition plays its role in decision making process at an oil and gas company in Indonesia. PT ABC is a multinational oil and gas company that has longstanding operation in Indonesia and has significant contribution for GOI’s revenues, and national GDP. In order to accomplish the aforementioned purpose, the author conducted a series of qualitative in-depth interviews with nine PT ABC’s decision makers representing three level of management hierarchy in the company i.e. executives, middle management and operational management. The study concluded that decision makers are, in fact, aware of the existences of intuition in certain cases of decision making processes, especially in executive level. However there are still hesitation to explore and formalize intuition as part of decision making process due to level of awareness and some misconceptions. Furthermore, this study also proposes recommendation of how the company and decision makers could explore, develop and control intuitive intelligent to gain the benefit from it’s potential to improve decision quality.