Akademik Məlumat İdarəetmə Sistemi
37th International Scientific Conference on Economic and Social Development - Socio Economic Problems of Sustainable Development, Baku, Azerbaijan, 14 - 15 February 2019, pp.1044-1051
Improving the management process requires an understanding of the new economic approach - mental accounting, ways to more effectively manage human psychology and its interaction with the environment. This paper explains the essence of the mental accounting concept in a theoretical-practical way. The psychological, economic and organizational aspects of the decisions taken by the people regarding the management have been analyzed and have led to rational and irrational decisions. The influence of psychological states, logic, knowledge, and skills on decision-making processes has been studied when people make their financial decisions. Along with the reasons for making accounting decisions, the results and problems revealed. Explaining the mechanisms of influence of interest in making financial decisions, the possibilities of balancing their psychological and economic conformity with the rational behavior of people were attracted to an investigation. Preparation of decisions affecting entrepreneurial activity has been explained in accounting stages, analysis of the opportunities given in the decision-making process and the existing problems. The psychological and organizational difficulties arising from financial decisions have been shown. The influence and attitudes of existing attitudes and relationships within the structures and deficiencies during the implementation have been identified, based on the diversity of the management system. In the research process, we conducted a survey questionnaire by focusing on various accountants' experiences and used a comparative and related analysis, summarization, grouping, and synthesis methods. The paper introduces recommendations to enhance the effectiveness of financial decision and identify the limitations of the psychological impacts on making financial decisions within the scope of the authority, law and duty commitments of the organization. In the context of the limited resources and increased need, the practical consideration suggestions were made regarding the adoption, implementation, and evaluation of financial decisions.