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Apr 19, 2023 · Decision-making is a critical leadership quality that can make or break your career. A good decision-maker is someone who can analyze the available options, identify potential consequences, and ...
Mar 26, 2023 · 8-Step Decision-Making Process to Making the Best Decisions. So let’s set aside the bad examples of the business leaders and gurus who rely on their gut in their decisions and follow the ...
- Overview
- What is decision-making?
- Why is decision-making an important leadership skill?
- Five important decision-making skills
- Tips for decision-making as a leader
Managers use leadership abilities to guide their team members and improve the organization. Leadership may require managers to make decisions that impact employees. To make effective decisions as a leader, it may be helpful to understand how decision-making skills can help you make tough choices. In this article, we discuss why decision-making is a...
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.
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.Related: 4 Types of Decision-Making Styles (With Examples)
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.
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.Related: The Importance of Confident Decision-Making
1. Research
Collecting information through research can provide resources for making an informed decision. For example, if you're a manager at a retail store that wants to target new customers through social media, you can research the features and users of several platforms. You are then more prepared to choose the most engaging platform for your company's target audience.
2. Creativity
Creativity can allow you to design original solutions to problems. With an open mind, you can consider alternative options that may work better than a traditional solution.
3. Critical thinking
As you assess your options, you can use critical thinking skills to evaluate the pros and cons of the situation. You can determine the benefits that one path may bring or the risks associated with another path. You can use visualization techniques to imagine the outcomes of your decisions. Critical thinking skills can also help you decide if your organizational goals are realistic and if your company policies are easy for your team members to understand.
Track organizational progress
You can keep detailed records of activity in your organization, which can serve as another resource when making a decision. You can also keep track of the outcomes of previous decisions for good examples or to avoid repeating mistakes.
Seek advice from a mentor
Mentors who've held leadership positions can guide you through the decision-making process. They can make recommendations from a managerial perspective and give you advice on how to implement changes in the organization.
Encourage open discussions with your employees
Listening to the unique viewpoints of your team members can allow you to assess your organization holistically. For example, if you're a restaurant manager and you want to downsize the menu, you can ask your servers to explain what menu items customers frequently request, which can help you decide what items to continue offering.
Mar 14, 2024 · 4. Familiarize Yourself with Financial Statements. Any organizational leadership decision you make is bound to have financial implications. Building your decision-making skills to become familiar and comfortable with your firm’s finances is crucial.
Mar 22, 2022 · As a new leader, learning to make good decisions without hesitation and procrastination is a capability that can set you apart from your peers. While others vacillate on tricky choices, your team ...
Nov 18, 2022 · This encourages thinking beyond obvious or given options and fosters more insight and creative thinking. Good decision-makers naturally do this – they look at solutions in terms of what is possible. 3. Logical Reasoning: The Ability to Reason Well and Weigh Options Accurately.
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Aug 29, 2023 · Strategic Versus Tactical Decisions. The first step in being a leader with good decision-making acumen is to determine whether this is a strategic or a tactical type of decision that you are facing.
