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MANAGERIAL RISK-TAKING: AN EMPIRICAL STUDY

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It is generally believed that managers are more risk-taking than others. However research has shown managers to be both risk-averse and risk-seeking, depending on the target performance or reference points. The present study is an attempt to see if managers differ from others in risktaking propensity. Managers, non-managerial employees and MBA students from different organisations in Madras were administered the CDQ and modified Risk-in-Basket. Results of ANOVA and Chi-square analysis show that managers, potential managers (M.B.A. students), and non-managerial employees do not differ significantly in risk-taking as measured by the instruments used. The study concludes on the note that managers may be attributed higher risktaking due to their ability and that what is really expected from our managers is successful risktaking, rather than more risk-taking.
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Document Type: Research Article

Publication date: 1999-01-01

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