Decision Making Process

Decision Making Process

Everyone in an organization makes decisions: the operator on the production floor, the nurse in the hospital, the teacher in the classroom. The process they follow in making these decisions are often implicit or automatic and are made consistent with the outcomes or results needed or the policies which govern the subject areas involved in the decision.

People in supervisory, managerial or leadership positions face a unique challenge when making decisions. They have to decide in ways which enlist others to implement the decisions, to “buy-in” or have “ownership” in the decisions because the ultimate test of a good decision is one which is actually implemented, which makes a difference.

Consequently, people in these roles have two decisions to make whenever they have to make a decision: first, decide who should be involved in making the decision so that there is ownership and commitment to implement the decision; and second, what process needs to be followed by these people in making the decision.

Another important consideration in evaluating the decision making process is the efficiency of the process, the time it takes. Obviously, a decision involving a supervisor and eight subordinates is consuming many more resources and is less efficient than one which involves only the supervisor if the decision is effectively implemented. If the decision is not implemented, the process the supervisor used is not only inefficient, it is ineffective.

This then leads us to three key criteria for evaluating the decision making process, is the decision a good one, was it implemented and was the decision made in the least amount of time.

First, lets consider who needs to be involved in making a decision so that the participants are commited to implementing it. Vroom and Yetton in their article “A New Look at Managerial Decision Making,” published in Organiza-tional Dynamics, (Vol. 1, No. 4, 1973) identify 6 “Types of Management Decision Styles” based on who is involved in what way in a decision. These are listed

below with some modifications and two additions, the “D’s.”

Type Who decides Information and Process

A-I Person authorized. Information this person has available.

A-II Person authorized. Obtain information from subordinates or others who have the information needed.

I-I Person authorized. Shares problem with subordinates or others who would be involved in carrying out the decision individually, one-on-one, to obtain their input, ideas, advice, suggestions, or recommendations. Then the authorized person decides.

I-II Person authorized. Shares the problem with subordinates and others as specified in I-I as a group, lets them know that he/she will still make the decision, and then collectively obtains their input, etc.. Then the authorized person decides and lets the group know the decision.

C-I Person authorized and one other The authorized person shares the problem individually with a subordinate or other person who would be involved one-on-one, lets the person know that they both will have to agree to support the decision they make, and then reach the decision by consensus.

C-II Person authorized and group assembled Same process as with a C-I except that the person authorized is sharing the decision making. The person authorized has no more vote all together than anyone else in the group and is willing to accept and implement any solution which has the support of the group.

D-I A person authorized The person authorized to make the decision delegates the decision to who in their judgement is more involved, able and willing to make

by the person authorized. the decision. The person accepts the decision of the person to whom it has been delegated.

D-II A group authorized Same process as in D-I except that the decision has been delegated to group which may include subordinates, peers, and others who may be by the person authorized involved and are able and willing to make the decision.

Given these possible options, how does the person authorized to make a decision decide who should be involved so that a good decision is made, it is implemented, and it uses the least amount of time. Vroom and Yetton identify seven “problem attributes” which need to be taken into consideration when deciding who should be involved. They are most easily understood by the questions the person can ask him/herself when analysing the problem to be addressed.

1. Is this an important problem? Will the decision we make really make a difference. If we decide one way or the other, will it have a significant impact on the organization.

2. Do I have the knowledge or information which will allow me to make the a good or the best decision?

3. Is this a routine decision, one we make all the time, one where the process for making it is clearly described and understood? Is it structured or unstructured, routine or unique?

4. Is acceptance and support of the decision critical to effective implementation by subordinates, peers, or others who would have to be involved in carrying it out?

5. If you were to make the decision by yourself, are you reasonably certain that those involved in carrying it out would accept it.

6. Do the people who would need to be involved in implementing this decision share the organization goals which are to be obtained in making this decision?

7. Would those who would be assembled be likely to have differences or conflict about how the decision would be implemented?

Vroom and Yetton array these questions in a decision tree which will tell the authorized decision maker which of the eight types of decision will yield the best decision in the least amount of time and which will be faithfully implemented. Now that we have the decision made about who needs to be involved in making the decision, lets address the issue of a decision making process. There are 10 steps in the decision making process if you include those steps (1 and 2) which help you decide how to decide, who should be involved in the decision making process. The ten steps are summarized below.

1. State decision to be made and decide who should make it.

2. Assemble the decision makers and organize for the decision by designating a group facilitator and recorder.

3. State the decision to be made and explore the context:

a. Tie the decision to an goal or objective which the decision is oriented to achieving.

b. Explore the causes of situation which give rise to the need for a decision to be made.

c. Determine the impact of not deciding.

d. Remind the group of the type of decision (A,I,C,D) and why this type was selected.

e. Specify the criteria for evaluating decision.

4. Identify optional decisions.

5. Describe effects of each option and select best option or combination of aspects of each option.

7. Plan implementation of the decision.

8. Plan communication of decision to those not present who need to know.

9. Plan review of the decision at a future date in which you will apply the criteria you identified under 3. e. above.

10. Review the process used to make the decision in the meeting to improve it.

To illustrate this process, we will use an example of a decision made by a work team to select a new worker. The supervisor is authorized to make the decision and determines that the support of the team members will be critical for the success of any newly hired employee. He/she decides to use an I-II decision process, he/she

will make the final decision but wants the groups input on the decision. He invites everyone in the team to meet with the potential candidates and assembles the team for the decision making process including the personnel department representative to this product team.

After designating a recorder and a facilitator, the facilitator takes the team through the decision making process. First, they review the goals of the team and the characteristics, attitude, and abilities the person selected will have to have in order to assist in achieving these goals. Next, they review why the person who had the position left and determine if they need to change the work or work environ-ment so that a new person will stay. They consider whether they can do the work without the person and conclude that they can not. The supervisor then reminds the group that he/she wants their input and recommendations and will make the final decision taking into consideration what they say.

The group then considers each option, in this case the three candidates they interviewed. They consider their strengths and weaknesses with reference to the vacant team member role. They determine who they think is the best candidate for the job and the are clear why they think so. The personnel expert assures that the criteria and processes used are consistent with policies and procedures. The supervisor then announces his/her decision and the reasons he/she made it.

Planning ensues in which the actual hiring, orientation, and training of the new person is assigned to those responsible. The team then plans when and how they will review the decision such as at the end of the probation period. They plan how they will inform the unsuccessful candidates and communicate the decisions to those within the organization who need to know about the decision. Finally, they review the process they used for making the decision and make suggestions for improving in next time around.