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7:20 am - Tuesday October 22, 2019

Managerial decision making and the decision process

| Leadership, Management | Rating: 4.5
by Numan

Decisions drive an organization. The theory on decision making is vast but can be summarized quite effectively by using Vroom and Yetton’s normative model for decision making.
The model characterizes several types of decision making, each suitable for varying situations. These types are:

A1: Leader takes known information and then decides alone.
A2: Leader gets for information from followers, and then decides alone.
C1: Leader shares problem with followers individually, listens to ideas and then decides alone. C2: Leader shares problems with followers as a group, listens to ideas and then decides alone. G2: Leader shares problems with followers as a group and then seeks and accepts consensus agreement.

According to Vroom and Yetton each decision is influenced by two major factors:

1.Decision Quality – Is the quality of the decision measurable?

a. Does the manager have the necessary skills and information to make the decision? Do employees possess that information?
b. Does the issue at hand have a structural resolution? Is the problem structured?
c. Can the probability of decision being the correct solution be measurable?

2. Acceptance

a. Does the implementation of the decision require employee acceptance? Do employees have an interest to be involved?
b. Will the decision be accepted by employees if taken alone by the manager?
c. Is there an identity between employee and organizational goals?

The implementation of the model is rather simple. If acceptance is of importance types A1 and A2 will be less suitable. If the manager sees decision quality as important and employees do not then G2 would be less suitable.

Source: Vroom, V.H. and Yetton, P.W. (1973). Leadership and decision-making. Pittsburgh: University of Pittsburgh Press

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