"Decision making" refers to a number of
processes in which the final development of the Ultimate Decision in a person’s
life leads an organization, at least in the leadership, management, and
business areas.
• "In any moment of decision, the best thing you can do is the right
thing. The next best thing is the wrong thing. The worst thing you can do is
nothing". Theo Roosevelt
• "Decisions are the hardest thing to make, especially when it is a choice
between where you should be and where you want to be."Unknown
Steps in the Decision-Making Process (Rational Model)
1. Identify the Problem/Opportunity - Identify what decision needs to be
made?
2. Gather Data and Alternatives - Collect as much relevant data and
alternatives to action as possible.
3. Evaluate Alternatives - Now you able to get down to identifying the pros and
cons for each option you have.
4. Weigh the evidence
5. Choose the Best Option - Choose the best option. One that seems
"do-able".
6.Implement the Decision / Act - Begin to implement your option!
7. Review the Outcome - Look back at the outcome, make changes if necessary.
Barriers to Effective Decision Making
• Cognitive biases (e.g., confirmation bias, overconfidence)
• Time limits
• Lack of Information - The lack of information causes bad decisions and bad
choices.
• Emotional Influences - Stress or excitement can impact good decisions.
• Groupthink - feeling pressured to conform to those decisions by a team.
• Analysis Paralysis - Overthinking causes paralysis in decision making.
• Organizational culture
Types of Decision Makers
1.Autocratic Decision Maker
Definition:
An Autocratic Decision Maker makes decisions without seeking input or
suggestions from others.
Characteristics:
• Centralized control
• Decisions usually made quickly
• Leader makes all decisions (have full responsibility)
• Tendency towards top down
Advantages:
• An autocratic decision maker can make quick decisions, especially in
emergencies.
• Clear chain of command.
• Can avoid conflict (fewer opinions).
Disadvantages:
• Team members may feel "un-valued".
• Can develop lower morale and/or motivation.
• Very little chance of creativity or innovation.
Best Used When:
• When time is not on your side (e.g., emergency situations)
• Decisions are uncomplicated or "routine"
• When team members are younger, or less experienced, or have not proven track
records of being dependable.
• In a military regiment, or organization with a hierarchical structure.
2. Democratic/Participative Decision Maker
Definition: This leader gathers team input, and encourages team involvement for
engagement and team buy in for a group decision.
Characteristics:
• Gathers input from the team and seeks consensus; collaborates and brings
their power together.
• Will slow down their process for the consultation, and is likely to embrace
feedback, brainstorm and generate ideas and develop shared goals.
• Shared ownership.
Advantages:
• Is likely to enhance morale and buy in for the team.
• Will consider multiple perspectives.
• Will, hence, make higher quality decisions.
• Brings more trust, collaboration, team work and ability to resolve conflicts.
Disadvantages:
• Will yield a longer turnaround-time.
• May allow for indecision, or feud.
• If input is neglected, team frustration may abound; loss of interest.
Best to apply when:
• The decision affects a large number of team members.
• Input from diverse members will lead to a better decision.
• The group is expert in content.
• Academic or innovation space.
3. Laissez-faire Decision Maker
Definition: This leader delegates and provides the authority for team to
make known decisions with as little hindering direct interference as possible.
Characteristics:
• Little or no direct interference from the leader serves as a challenge for
team.
• The leader brings a challenge to team in an indirect way.
• The group has high levels of trust and respect in the team.
• The group is comfortable in the decision making with expected levels of
independence and initiative.
Advantages:
• Establishes a climate of decision making to encourage innovation and
creativity.
• The team feels trusted with authority.
• Allows a work team of skilled/experienced team members autonomy.
Disadvantages:
• May result in any confusion.
• Poorly demonstrates coordination-no synchronization or catching overlap.
• Poor or inconsistent decisions.
Best applied when:
• The team has many individuals who are skilled and self motivated.
• The work requires some creativity or innovation component.
• eg. research team project, tech start-ups, freelance project alone, etc.
Decision Maker Style Speed Team Involvement Morale Impact Best For
Autocratic Fast Low :Low Urgent or regular repetitions tasks
Democratic Medium High :High Anything complex or collaborative work
Laissez-faire Variable High Very :High (only if team capable) Creative or
Experts Teams
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