Lead Like a Boss: 4 Management Decision-Making Styles
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Decision making is a process in which you identify a question or problem, analyze it and then select the appropriate course of action to move forward with. There is no shortage of decisions to be made in everyday work situations.
Those in management are tasked with making a high volume of decisions which affect their organization daily. Some decisions carry more gravity and inherent risk, while some are as simple as choosing which coffee to supply in the office.
Here are 4 decision making styles that people in management positions can employ.
Top-Down
This decision making style places all of the deciding power with the leader of a group. The person in charge will make decisions based on their own expertise and judgement.
The employees under this manager’s supervision are informed of decisions and directed to act upon them as needed. For example, work projects and specific tasks may be assigned by a manager who has planned and decided the direction the team pursues.
This type of decision making is most appropriate when:
The leader is uniquely qualified to make decisions regarding an area of expertise
There is an urgent need and little time
The decision at hand is simple and can be made easily by an authority figure
Consultative
A consultative approach to decision making is more inclusive, but ultimately the leader retains their authority and will make the final decision.
Managers often ask their team to provide feedback and opinions on decisions that will make an impact on the team as a whole. This allows for differing points of view to be shared and debated, leading to a more well-rounded understanding of the situation.
Consultative decision making is helpful when:
Diverse perspectives are needed
Employees have valuable knowledge and insights
The leader wants to foster collaboration and team responsibility
It is important that when consulting members of the team they feel comfortable offering honest feedback. Don’t surround yourself with ‘Yes’ people who only say what they think you want to hear.
Procedural
Organizations usually have processes and procedures in place that automate some decisions. This means that there is a rule or “If, then” clause that requires a particular decision in response to a particular circumstance.
For example, a manager may make a pricing decision based on company guidelines that state product prices must be at least 10 percent lower than the direct competitor.
These organizational procedures take some of the weight of decision making off of individuals. A manager may have to “decide”, but because the decision is essentially predetermined it requires less thought and effort.
Consensus
Sometimes it is more reasonable to allow the larger group to have a say in making decisions, rather than just a leader or select few at the top.
Consensus decision making is more of a democratic style, where everyone is asked to participate in the decision making process. All opinions and input are considered and what is agreed upon by the majority is adopted.
An example might be if a company is trying to decide on a new vendor to provide lunch catering for the office. A vote may be taken among employees to find the most popular option and the vendor will be decided by the results.
Consensus decision making should be used when:
A decision will impact everybody in a group directly
The goal is to come to a majority (or unanimous) agreement
It is important that people at all levels get to influence the outcome of a problem
Decision making is a core responsibility of management. The decisions made determine company direction, from overall strategy to organizational culture and employee directives. Be sure to understand the different styles of decision making and apply them appropriately.
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“Decision-making is defined as the selection of a course of action among alternatives; it is the care of planning.”
