Management's
Role in Effective Decision Making (continued)
- Organizational redesign
- if challenges require, managers
should make conscious effort to redesign organization to ensure
effective decision making
- redesign can also create an
entrepreneurial spirit via redesign: limit bureaucracy, including
all employees in decision making (Osborne, 1995)
Empowerment/Participative
Decision Making
- may require that managers turn
some of their power over to employees to make decisions
- build trust with employees,
so they will be willing to take responsibility
- "Involving employees in
the decision-making process will reduce what is referred to as
the trap of professional arrogance," when executives think
they have all the answers (Cohen-Rossenthal, 1994) This also
reduces absenteeism and turnover, and increased job satisfaction
(Soonhee, 2002).
- Participative Decision-Making
(PDM)
- a continuum: from low to high,
depending on company attitudes toward worker involvement
- positive outcomes: reduce role
conflict and ambiguity. Increases job satisfaction, "organizational
citizenship behaviors" such as being conscientious, and
helping coworkers.
- reciprocal: workers perceive
that managers support them. They respond by more of the "organizational
citizenship behaviors" (VanYperen, van den Berg, and Willering,
1999).
- by actively involving groups
in decision makers, you can get better decisions, due to varying
perspectives, but it can also result in group think. Using a
facilitator may overcome those problems.
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