by Decision-making is a leadership skill that managers use to assess a situation and determine how the organization may proceed. The decision-making process involves the following steps:
- Identifying the challenge: In this step, the manager discovers an issue and determines the circumstances that led to the situation.
- Devising solutions: After learning more information about the case, the manager creates one or several possible solutions.
- Weighing options: The manager analyzes the advantages and disadvantages of each option and explores alternative solutions if needed.
- Making a choice: Once a thorough assessment takes place, the manager makes a final decision about what action to take.
- Informing others of the decision: The manager informs employees of the decision and explains how the decision influences the workplace.
Role:
Improve workplace productivity
Effective decisions can save time and propel work projects forward, increasing employee productivity. For example, employees at a small furniture store disagree about when to host the annual spring sale, which prevents them from promoting the sale and preparing the store for an influx of customers. The manager of the store announces the sale date in April. This decision starts the planning process and motivates employees to complete their associated occupational tasks.
Reduce conflict
The decision-making process can decrease conflict by setting clear expectations for employees, leaving little room for misunderstandings. As a manager, you can provide direction on how your team collaborates to achieve organizational goals. For example, you may assign teams for major projects to distribute the work evenly. Deciding what standards you want for your team can promote shared understandings instead of confusion.
Establish trust with the employees
Good decision-making can help managers show their employees that they value their work and have their best interests in mind. When a manager takes the time to evaluate, analyze and explain decisions, they also display thoughtfulness and trustworthiness. Employees may feel they can confide in their managers about their interests and concerns.
Create action plans in emergency situations
Emergency situations may require managers to make quick, impactful decisions to minimize damage and optimize benefits. For example, a small town experiences a power outage, and employees at a local grocery store become concerned with how this may affect their work hours.
The store manager decides to open the store operating on a generator and provide work hours for employees who can safely travel to the store. This ensures employees can work to earn income and the store receives business. When unexpected situations occur, it’s important for managers to assess organizational needs and decide how best to proceed.
