Management's
Role in Effective Decision Making
Management must create
an environment that fosters good decision making on all levels
of the organization.
2 primary components in decision
making:
- functional/technical requirements
(such as primary line-level operations, customer service activities,
marketing and sales)
- management/leadership factors.
- how do you achieve cooperation
and coordination in implementing decisions?
This relates to setting and communicating direction, establishing
norms, developing strategies to prevent and resolve conflicts,
rewards, performance evaluation. Easy to overlook these more
strategic areas if you concentrate only on the functional issues.
- Rausch's 3C model (1999), which
asserts managers often overlook reactions of people who are involved
or affected by decision. Ask 3 non-prescriptive questions before
finalizing the plan:
- "How can we make sure we
gain appropriate control over this process? What else do we have
to do to make sure that we will reach the outcome we are setting
out to achieve? Additional control-related questions may be whether
participation in the decision-making process was appropriate
and whether the goals were communicated to all stakeholders.
- "Competence is concerned
with the knowledge, skills, and abilities for the functions,
including management/leadership and other stakeholder competencies.
Questions may also address what the planners have to do to make
sure that all stakeholders will have the necessary and/or desirable
knowledge and skills needed for competence.
- "Climate is concerned about
the environment in which staff members and other stakeholders
can find the maximum possible satisfaction from participating
or being affected. Questions in this category ask how to ensure
a climate for success, as well as what else needs to be done
so all the stakeholders are satisfied or not so dissatisfied
that they will create roadblocks to the decision."
Ethical decision
making:
Managers must always keep ethical considerations in mind, help
to build an ethical organization.
- complex interplay of economic,
personal, social and organizational issues can make ethical decisions
more difficult. According to the textbook,
"It is the responsibility of the decision maker to examine
the decision not in a traditional ethical/unethical mode but
in a mixed-motive format, in which ethics may exist within a
graduated and complex perspective. DiNorcia and Tigner, 2000."
I say that's a slimy position that will get the company into
major ethical and legal problems.
- Jones' issue-contingent model
has 4 sequential stages:
- recognize moral issue
- make moral judgment
- establish moral intent
- engage in moral behaviors
- then, according to Jones, you
must consider and define moral intensity of the issue by considering
6 characteristics:
- magnitude of consequences
- social consensus by public and
the organization that the decision is good or bad
- probability of effect: will
expected outcomes occur, and will the expected harm occur?
- temporal immediacy: length of
time between the event and expected consequences
- proximity: considering "nearness"
of consequences (i.e., ., terminating your own employees is "nearer"
than terminating a contract
- concentration of effect: number
of affected individuals
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