Problem_Formulation_and_Identification_Paper

One of the most important parts of a manager’s job is to make decisions. Even more important for the organization is the manager’s ability to recognize and choose the correct decision-making style for the problem or situation to have a positive outcome. According to Robbins, “Decision-making style refers to the habitual patterns we tend to fall back on when faced with a decision situation” (2004, p. 21). The four main styles of decision making include: democratic, autocratic, collective-participative, and consensus. The members of team “C” attending University of Phoenix course MGT-350 have identified and analyzed how their organizations make decisions. There are inherent strengths and weaknesses each style poses and management needs to be sensitive to the perspectives of the stakeholders because they can be impacted by the organization’s decisions. Compare and Contrast The organization Judy works for is the Federal Government. Judy believes her organization is autocratic in its decision making style. Decisions are made by hierarchy in headquarters located in Washington, D.C. The leaders maintain total control and ownership for their decisions. They collect information for their decisions but do not request ideas or suggestions from others for their decision. Jon’s organization is a large architecture firm in Los Angeles. Jon believes his organization’s decision making style is autocratic and collective – participative. The managers of his organization keep detailed lists and charts for projects, which show how the projects are to be completed. Managers have the responsibility to ensure projects are kept within budget and meet state and local building codes. Often changes have to be made to ensure the project follows building codes and is within budget. When managers use a collective – participative decision making style they consider input from stakeholders and others to make decisions. Times may arise when managers will pursue an autocratic decision making style and will not involve others in changes and decisions being made. James’s organization is a large production facility that makes dry foods. His organization uses collective – participative, autocratic, and some democratic decision making styles. The managers and leaders in the organization receive large amounts of training every year. This training helps managers use and develop the talents of the individuals they work with. Managers create teams to work on projects; these teams investigate problems and do studies to collect data. Once the teams have finished, the manager invites them and other stakeholders to discuss the problem. The manager uses the collective – participative decision making style to make a decision after hearing from the team and the stakeholders. Managers use the autocratic decision making style to make small decisions or time sensitive decisions. Sometimes the solution to the problem is not critical, in these cases the manager will allow the group or team to solve the problem themselves which is the democratic decision making style. Judy, Jon, and James all have organizations that use the autocratic decision making style to some extent. Jon and James’s organization primarily uses the collective – participative decision making style. The autocratic and the collective – participative decision making style requires strong leadership. The involvement of others in the decision making process is the big difference between the two. In the autocratic decision making style managers make the decision with information they obtain. In the collective – participative decision making style the managers will involve others to assist them in making the decision. Managers will make the decision but not before they get more understanding and perspective from those around them (Leadership Management Development Center, Inc., 1997). Strengths and Weaknesses Each decision-making style has its advantages (strengths) and disadvantages (weaknesses). The collective – participative decision maker encourages other members in the organization to participate in giving solutions, perceptions, information, and ideas regarding an issue. The decision maker, or leader, maintains control of the decision but collects all the information before determining his or her decision. The advantages come from the decision maker being responsible for the end result of the decision and group involvement and participation is encouraged. There are disadvantages to this decision as well. Time-consuming processes, final decisions that are determined slowly, and a low security level due to the many people involved in the decision (Leadership Management Development Center, Inc., 1997). The opposite of the collective – participative style is the autocratic decision making style. The decision maker maintains complete and total power of the decision. The decision maker does not request any outside information or suggestions. The advantages to this style include quick decisions and a sole responsibility of the outcome for the leader (decision maker). This kind of style is ideal for emergency type situations because of its quick of decision making ability. The disadvantages to the autocratic decision making style are negative impacts on effort and morale, and outcomes are not persistently predictable. If a negative outcome occurs it can be a disadvantage to the leader due to a loss in credibility (Leadership Management Development Center, Inc., 1997). The consensus style of decision making occurs when complete control of the decision is given up by the leader to others. A team or group is entirely involved in determining a decision. Contrary to the democratic style, each member of the team or group must be in total agreement to the final decision. One advantage to this style is accountability from everyone. There is a group responsibility and commitment. Another advantage according to the Leadership Management Development Center, Inc. (1997) is: “A more accurate decision is usually made, with a higher probability of success, because so many ideas, perspectives, skills and ‘brains’ were involved in the creation,” (Decision making styles, para. 5). The disadvantages to this decision making style are time and energy. Making a decision using this style is time-consuming and extremely involved, creating a lot of work (Leadership Management Development Center, Inc., 1997). Stakeholders Problem-solving can be difficult no matter which style is used but once understanding the core of the issue a solution can be determined. Stakeholders are anyone that is affected by the decisions of the organizations and have vested interest in how things are run. Understanding the connection between the problem and stakeholders can help lessen conflict and generate better solutions. The process to by which the problem can be identified and described to stakeholders is a stakeholder’s analysis. Through the various decision-making processes used either collectively or individually gathers information for the analysis. The analysis consists of “five main steps: 1. Identify the general development problem that needs to be solved. 2. Identify all the stakeholders who have an interest in the problem/desired outcome (both positive and negative). 3. Assess importance of each of these stakeholders to the problem and their capacities to influence it. 4. Identify possible co-operation and conflict between the different stakeholders. 5. Use an appropriate tool to analyze and represent the information,” (NZAID Tools, 2010). The consensus and collective-participative styles give control to a group and there is a greater chance that the stakeholders’ interests will be addressed since many people are contributing to the decision. The autocratic advantage is that decisions can be made very quickly because it is the responsibility one person to make the decision. Stakeholders may take some comfort knowing that decisions can be made in a timely matter. Conclusion Whichever decision making style the manager of an organization chooses to use they must recognized why it is he or she is choosing it and what the outcome may be. Whether a company makes decisions autocratically with no input from others or they seek a collaborative effort and participation by all, including stakeholders, the decision can impact the way the problem is solved. Stakeholders may be sensitive to the way decisions are made and how problems are identified. Their perspectives and wellbeing of the organization will definitely benefit from choosing the best style of decision making for each individual problem. Reference Leadership Management Development Center, Inc.. (1997). Decision making styles. Retrieved from http://www.leadershipmanagement.com/html-files/decision.htm Logical Framework Approach. Annex 1: Stakeholder Analysis Process. NZAID Tools 2010. Retrieved on July 31, 2010 from http://nzaidtools.nzaid.govt.nz/logical- framework-approach/annex-1-stakeholder-analysis-process Robbins, S.P. Decide & Conquer: Make Winning Decisions and Take Control of Your Life, (2004). Financial Times/Prentice Hall, an imprint of Pearson Education.