Decision-making style, tools, and techniques
The most prevalent decision-making style in my organization is the collective Participative decision-making style. This style is also known as shared leadership, employee empowerment, or employee involvement. As the leader, I give the stakeholders a chance to air their views, but I ultimately make the final informed decision. According to Probst 2005, this style involves the employer encouraging the employees to share or participate in organizational decision-making.
The perception behind this style is that the organization can benefit from the special motivational effects of improved worker’s participation (Latham, as cited in Brenda, 2001, p. 28). Hence, if they are involved in making the decisions, they will do their best to affect them, leading to the achievement of organizational goals. The most common tools used in decision making in my organization are the decision-making matrix and the rule-based tool.
The rational decision-making technique is applied. Though these are the tools and techniques, it is vital to alter them to suit the situation at hand. For example, a decision on the dividends was arrived, using the rule-based tool, which has a predetermined format that led to a lot of disharmony among some stakeholders. If this decision were made using grid analysis, all the information collected would have been rationally analyzed. A better decision arrived at without any negative impact on the shareholders.
Decision-making model and stakeholder influences on it
I prefer the rational decision-making model. I prefer this model because I like the concept behind it: gather as much information as possible, analyze it, and then come up with a rational and informed decision. This goes hand in hand with the collective participative decision-making style because I can gather views, ideas, skills, and different concepts from others. Then, through critical analysis and rational thinking, I can make sound decisions.
According to Freeman, 1984, a stakeholder is defined as any group or individual who can affect or be affected by an organization. Internal and external stakeholders significantly influence the decision-making model that best suits the situation because there may exist some form of conflict of interest between the two groups making decisions making a daunting task. The decisions made must be an account table for these two groups.
For example, suppose the external stakeholders like the government stipulate a policy to increase taxes. In that case, the internal stakeholders like the employees will be disgruntled, leaving management with a heavy decision making the task of whether to raise the pay and reduce their markup or not intervene and run the risk of less motivated employees who will affect the organization’s productivity.
Management’s roles and responsibilities in decision implementation
Managers are charged with a major role: implementation of the decisions made. There are several factors that decision implementation: the organizational structure, that is the formal and informal structures, and organizational culture, which includes its ideologies, traditions, values, and standards and the organizational learning, that is the ability of implementers (managers) and the organization at large to learn and participate in the implementation of the decisions all for a common goal.
To ensure the effectiveness of the decision, these key issues must be addressed. Firstly, the organization structure must be solid and must be respected so that if the top manager gives directions, they are followed and implemented to the latter. This also brings order making implementation easier. Secondly, the organization must embrace the culture of owning and working towards its vision. If the vision is imbibed in each person from top management to all the subordinates, then there will be goal congruence and hence facilitate decision implementation because all stakeholders will work towards a common goal.
The managers, who are the implementers of these decisions, must have the relevant skills vital if an effective implementation is to be achieved. For example, they ought to have proper communication, interpersonal, and managerial skills. They should motivate the employees to implement the decisions and act as role models to them.
The steps for effective management of a decision implementation plan
There are seven fundamental steps in the management of decision making: setting up things to be done first and objectives, set up substitute solutions, gathering of relevant data necessary in making a decision, planning for systematic implementation of best solution from the former step, execution of the judgment and assessment and appraisal son as to formulate any necessary improvements.
Managers should go longer lengths and supervise the progress of how the decision implementation is carried out. This can be done by following the five main arms of management. These are Prevoyance meaning they should be forward focussed and draw a plan of action or strategy, organizing the undertaking as a whole, commanding the personnel to work towards implementation, and coordinating the activities to create harmony and goal congruence and to control all activities ensuring conformity to the set standards and targets. When implementing decisions in global organizations, it is important to consider their organization structure, organization culture, and all stakeholders involved as it is a global organization and so the decision implementation will have an impact on many people.
Tools and techniques for evaluating a decision
When the decision has been implemented, then an evaluation of its impact is necessary to inform management on the progress and to be able to elicit any necessary improvements or adjustments to be made. Management can use study techniques, for example, to study the impact or change that has occurred after decision implementation. Tools such as questionnaires can be used to monitor or test the impact of the change and the data collected can be analyzed and represented in graphs, for instance, to show a trend over time.
This will give a clear picture of the impact of decision implementation. The results will dictate if any amendments are to be made, any necessary change of policies, or whether the decision was a perfect idea. The standards set for evaluating the outcome would be the expected results or desired change. We could also use another organization as the benchmark and compare our results to theirs. Also, some global standards like the International Organisation for Standardization, ISO could be the benchmark to evaluate our outcomes.
Examples of decision-making in the workplace
- The consultation method; where the boss calls all the head of the department and discusses the issue at hand and decides.
- The boss involves all the employees in a meeting where they discuss the issue at hand, come up with a solution, and decide.
- The boss and board of directors discuss the issues and decide without involving the employees.
- The boss just takes the issues by the horn and thinks about it deeply. He eventually comes up with the verdict. The one-man show strategy.
Latham, G.P., Winters, D.C., & Locke, E.A. (1994). Cognitive and motivational effects of participation: A mediator study. Journal of Organizational Behavior, 15(1), 49–63. Web.
Probst, T.M. (2005). Countering the Negative Effects of Job Insecurity Through Participative Decision-making: Lessons From the Demand–Control Model. Journal of Occupational Health Psychology, 10, 320–329. Web.