A630.4.4.RB - How Companies Can Make Better Decisions

Today’s leaders are faced with increasing pressures to make the right decisions at the right time. Making the correct decision may make or break a company and might positive or negatively affect the cultural norm in the company. Decision don’t have to be made by one single individual, as described by Brown (2011), good deal of evidence showing that decisions implemented by members who use consensus rules are more effective. Collaboration within employees when making a decision, positively effects how the organization is operating.

 In Marcia Blenko’s interview with the Harvard Business Review, she argues that decision effectiveness correlates positively with employee engagement and organizational performance (HBR, 2010). Marcia Blenko, stated that researched showed that there is high correlation between decision effectiveness and financial results in multiple companies (HBR, 2010). Employee engagement is extremely important in decision effectiveness. Blenko, defined decision effectiveness into four components: the quality of the decision, the speed of making the decision, the yield of the extent of the decision and how much effort in making the decision (HBR, 2010). In my view, these elements are essential in decision-making. In my experience I have also seen that communication and trust also play a major role in the decision making process. In my current department I have seen that bad communication and lack of trust from employees lead to bad decision effectiveness.

            Blenko, described a couple of impediments to good decision making such as: organizations are more complex, and employees aren’t clear who is the decision-maker; the right information doesn’t get to the decision maker and leadership behavior gets in the way (HBR, 2010). These impediments are true of my organization; with the rapid growth and the unrealistic expectation from leadership, this makes it hard on managers to be secure in decisions. Additionally, tasking without proper guidance and resources are big problem in my department.

            In conclusion, the takeaway from this exercise to use immediately in my organization is that employee engagement is correlated to effective decisions. As a leader, I must empower my subordinate and give them the tools necessary to help me in the decision process. 

Reference:

Brown, D. (2011).  An experiential approach to organizational development (8th Ed.). Saddle River, NJ:  Pearson Education, Inc. EndFragment

Harvard Business Review (2010, October 13).  How companies can make better decisions. Retrieved from: http://www.youtube.com/watch?v=pbxpg6D4Hk8&feature=player_embedded