Effective Decision-Making, Teamwork, and Leadership in Organizations

Posted on Dec 12, 2024 in Other subjects

Decision-Making

Decision-making is the reaction to a problem, a discrepancy between the current state and a desired state.

Rational Model of Decision-Making

  • Define the problem: A problem exists when there is a discrepancy between a desired state and the current one.
  • Identify decision criteria: Identify the criteria that are relevant to making the decision.
  • Weight the criteria: Prioritize the identified criteria.
  • Develop alternatives: List possible alternatives that could solve the problem.
  • Evaluate alternatives: The decision-maker must evaluate and rank each alternative against the criteria.
  • Choose the best alternative: Calculate the optimal decision by evaluating each alternative and choosing the best one.

Premises of the Rational Model

  • Problem clarity
  • Known options
  • Clear preferences
  • Constant preferences
  • No time or cost constraints
  • Maximum payoff

Creativity in Decision-Making

The decision-maker needs creativity to fully understand the problem.

Groups and Teams

A group is an interdependent set of individuals who set and achieve specific objectives.

  • Formal groups are defined by the organization’s structure, with designated work assignments establishing tasks.
  • Informal groups are alliances that are neither formally structured nor organizationally determined.

Group Structure

Group structure shapes the behavior of its members.

Structural Variables Shaping Groups

  • Formal leadership
  • Roles: Expected behavior patterns attributed to someone occupying a given position.
  • Norms: Acceptable standards of behavior within a group.
  • Status: A socially defined position or rank given to groups or group members by others.
  • Composition: The mix of skills and knowledge within a group.
  • Group cohesion: The degree to which group members are attracted to each other and are motivated to stay in the group.

Work Teams

A work team is a group of people committed to achieving common goals.

  • Composed of a small number of people with complementary skills.
  • United by a common purpose.
  • The essence of a team is commitment.
  • Trust to identify and solve problems.

Essential Elements for Group Formation

  • Unity of purpose
  • Integration
  • Open communication
  • Clarity of roles and responsibilities
  • Participation and commitment
  • Consensus
  • Feedback

Benefits of Teamwork

  • Improved efficiency
  • Increased productivity
  • Improved quality
  • Reduced staff turnover and absenteeism
  • Reduced waste
  • Reduced downtime
  • Reduced conflict
  • Enhanced innovation

Characteristics of an Effective Team Member

  • Knows how to handle stress
  • Is formal and accountable
  • Communicates formally
  • Knows how to listen
  • Criticizes constructively
  • Has a cooperative spirit
  • Seeks feedback

Communication

Communication is a form of contact involving the transmission of ideas, facts, and values.

Functions of Communication

  • Control
  • Motivation
  • Emotional expression
  • Information

Communication Management

  • Downward: Communication that flows from one level of a group or organization to a lower level.
  • Upward: Communication that flows to a higher level in the group or organization; used to provide feedback to higher-ups, inform them of progress toward goals, and relay current problems.
  • Horizontal: Communication that takes place among members of the same workgroup, among members of workgroups at the same level, among managers at the same level, or among any horizontally equivalent personnel.

Barriers to Effective Communication

  • Noise
  • Not communicating properly
  • Not capturing the emotional content
  • Lack of trust and respect between sender and receiver
  • Stereotypes and prejudices
  • Insecurity about our ideas
  • Using terms above the level of understanding

Leadership

Leadership is the ability to influence a group toward the achievement of a vision or set of goals.

Traits of Effective Leaders

  • Cognitive abilities
  • Personal motivation
  • Desire to be a leader
  • Self-confidence
  • Creativity and originality
  • Warmth
  • Flexibility
  • Adaptability
  • Charisma

Leadership Process

  1. The leader identifies the needs of the employees.
  2. Appropriate goals are set.
  3. The leader connects rewards with goals.
  4. Actual performance is achieved.
  5. Employees are motivated and satisfied and accept the leader.
  6. The leader provides support to achieve goals.
  7. Employees and the organization work effectively.

Leadership Styles

  • Directive leadership: Focuses on the allocation of tasks, successful performance, and work programs.
  • Supportive leadership: The leader cares about the employee’s needs and creates a pleasant working environment.
  • Achievement-oriented leadership: Sets expectations and gives confidence to employees to achieve challenging goals.
  • Participative leadership: Invites employees to participate and tries to incorporate their suggestions into decisions.
  • Situational leadership: The leader adapts to each situation and the needs of the employees.
  • Charismatic leadership: Emotional in nature, conveying emotions non-verbally.

Organizational Structure

Organizational structure is defined as the formal way tasks are split and grouped at work.

Elements of Organizational Structure

  1. Work specialization: How tasks are divided into jobs.
  2. Departmentalization: How common tasks are coordinated.
  3. Chain of command: A continuous line of authority that clarifies who reports to whom.
  4. Span of control: The number of employees a manager can effectively and efficiently direct.
  5. Centralization and decentralization: (1) Decision-making is concentrated at a single point in the organization. (2) Decision-making is pushed down to the managers closest to the action or even to workgroups.
  6. Formalization: The degree to which tasks are standardized.

Organizational Culture

Organizational culture is the result of a process in which members of the organization interact in decision-making, inspired by principles, values, beliefs, and shared procedures.

Functions of Organizational Culture

  1. Defines the boundary between one organization and others.
  2. Conveys a sense of identity for organization members.
  3. Facilitates the generation of commitment to something larger than individual self-interest.

Organizational Change

Forces of Change

  • External: Demographic changes, technological advancements, market changes, sociopolitical pressures.
  • Internal: Human resources problems, poor job satisfaction, low productivity, high turnover, conflicts.