Thursday, September 20, 2018

A635.2.3.RB - How Companies Can Make Better Decisions

For this task, I was asked to watch a video interview of Marcia Blenko about decision-making. Blenko argues that decision effectiveness correlates positively with employee engagement and organizational performance. Chapter 3 of the text this week echoes this by recognizing that motivational climate influences the level of performance (Brown, 2011). While there are many benefits of effective decisions being made at top management levels, ensuring the whole team understands the decisions and involving employees in the process are just as important. "When people are involved in the decision making, they know they make a difference to the department’s or company’s success. When people know they make a difference, they find it easier to be motivated and satisfied with their job" (Stark, 2018). I feel employee engagement and decision effectiveness have a reciprocal relationship in organizations. Moreover, having employees involved in the decision-making establishes an environment where employees are able to make better day-to-day decisions. 

Although, decision making has it's benefits, there are some impediments to good decision making. Blenko says one obstacle is not being clear who to make the decisions whereas another obstacle is getting the right information to the decision maker (2010). Employees and management should also know the decision process. “Knowing how to make better decisions does not assure that you will make excellent decisions, but greater awareness of the decision process will help you avoid the pitfalls and make better choices” (Hoch, Kunreuther, & Gunther, 2001, p. 14). Whether organizations use Blenkos 5-step process or another, using a step-by-step process can help them make more deliberate, effective decisions by organizing relevant information and priorities.

Blenko suggests that there are four elements of good decisions: quality, speed, yield, and effort (2010).   There are definitely more steps or elements of good decision-making, such as clarity, considering alternative and thinking through alternatives.  However, these four elements do adequately gauge whether an already made decision was effective.  The only factor I might add would be commitment.  Brown says it may take three to five years for change to take place and that managers must live the new culture (2011).  Once a decision is made, commitment to make it happen is critical otherwise the change-process will fail.
  
This exercise reiterated a lot of information that I had already known or received through military leadership training. However, there is one thing that stood out to me in the interview that I can immediately use in my career and life. I must assess and prioritize the critical decisions, whether in my organization or in life. Benko says critical decisions are not always the big strategy decisions but are also the week-in and week-out operational decisions (2010). This reminded me of a video (Smee, 2016) my kid had to watch for homework that echoed the same sentiment about life. Just like we must prioritize the critical decisions in our organizations, we must put the important things first in life. 


Hoch, S. J., Kunreuther, H., & Gunther, R. E. (2001). Wharton on making decisions (1st ed.). New York: Wiley.
How Companies Can Make Better Decisions, Faster. (2010, October 13). Retrieved from https://www.youtube.com/watch?time_continue=13&v=pbxpg6D4Hk8
Smee, J. (2016, June 02). Tʜᴇ Jᴀʀ ᴏғ Lɪғᴇ - Pᴜᴛ Iᴍᴘᴏʀᴛᴀɴᴛ Tʜɪɴɢs Fɪʀsᴛ! Retrieved from https://www.youtube.com/watch?v=m0hqBIugr7I&feature=youtu.be
Stark, P. B. (2018, June 14). 6 Reasons to Involve Employees in Decision Making. Retrieved from https://peterstark.com/key-to-engagement/#

No comments:

Post a Comment