A635.2.3.RB – How Companies Can Make Better Decisions
Hoch & Kunreuther (2005), claimed that there is growing proof of evidence confirming how emotions play a significant role in our decision-making process most especially when there are inconsistent outcomes. According to Shiv (2011), it is of utmost importance to invoke emotion to develop our decision confidence. He further stated that with decision confidence comes with a passion that is very persuasive, where our confidence is contagious, and most importantly, the emotion that emerges from our decision has a huge impact in the extraction of the utility from our experience. It has a direct bearing on our motivation and engagement in the successful performance of our critical tasks.
At Adventist Health System, all staff and leaderships are encouraged and empowered to adopt a behavior of producing or involvement giving them stakes in the decision-making or leading initiative that has a direct effect on their jobs or positions in the organization. The culture of producing, co-ownership, empowerment, and involvement has translated to increased productivity in our organization. Employees who feel vested in our organization cultivate the strong work ethics within their peers, they have become more self-sufficient, and are getting confidence in navigating their responsibilities, with minimal interference and depending lesser from their supervisors for direction in accomplishing tasks. The culture of producing and empowerment also fosters team cohesion within our organization.
Diversification and growth are driving how we manage finances and our workforce directing a higher level of flexibility and scalability. The required regulatory changes are forcing our Executive Leadership in restructuring cost management, engaging employees in decision-making to fully leverage talents, and data changing resulting in adopting new technologies that reinforce imperatives cost and P&L governance gearing to a value-added reporting and analysis. Although new technology-based product development is one of the most explanatory variables for a beneficial organization performance (Suzuki, 2015), we can also say that exploitative and exploratory innovation significantly influence our organizational performance (Suzuki, 2015). According to Suzuki (2015), exploitation relates to increased efficiency, organizational improvements and incremental adjustments while exploration equates to new possibilities, radical or revolutionary change, and diversified generation.
Sound decision-making is a skill that we all need to develop. I cannot think of an acquaintance that has not made a decision that was dreadful and regrettable. Good leadership and good decision-making go hand-in-hand. Effective executives have the ability to identify when a decision has to be made based principle and when it should be built on a matter-of-fact. They are also familiar with the systematic process of decision-making, its barriers, and its indisputably defined elements.
According to Argerys (1966), some impediments to good decision-making are:
· Restricted commitment – In my line of business as human resources professional, I have come across of the difficulties that a leader could experience when joining a new team as a leader. When positioned as Assistant Director of Human Resources, the team was lead by a director who did not have the ability to lead the team with clear vision and goal. There was no cohesiveness in the setting of goals, and the team’s role was not clarified. The members of the HR team were not communicating openly and honestly either due to fear of retaliation or just did not care at all, and it was very apparent that no one was committed to perform their jobs for the success of the team and the organization as a whole. Personality conflicts within the team were very apparent, and disrespect for each other was heightened.
I have learned that resolving conflict is not only a standard function of a leader in the workplace but to be successful, it is of utmost importance that every member of the team is committed to resolving ongoing or future conflicts or disagreement. Most importantly, their commitment to departmental initiatives is highly critical. I had a diverse team with a different culture, belief, and religion. Conflict within my team was inevitable. Defining to my staff that it is okay to agree to disagree, but we have to take personal differences outside the workplace.
· Subordinate gamesmanship – I have always believed that useful communication and transparency from the executive leaders is the key element to the success of a leader and any change management within the organization. Open communication is essential in strategic alignment and accountability that comes with change either in leadership or system technology to empower the employees and stakeholders in buying-in to leadership initiatives. Transparency from all levels of leadership is also essential so as not to get executive leaders get blindsided.
We just recently hired a new President/CEO for Florida Hospital HealthCare Partners. On our first executive team meeting, I was asked by our new CEO to report on our current hiring practices, recruitment bonus expenses, practice acquisitions commitment, and etc. My report reflected a verbal commitment between our West Division VP, FH Deland’s ex-CEO, and the Practice Manager of most recently acquired practice operations of a 12k annual productivity bonus payable to the Practice Manager. The productivity bonus is in addition to her annual salary of 97k which places her to be the highest paid Practice Manager across the region. I needed our CEO’s approval to continue processing bonus payout for the remainder of the year not realizing that I was the first person in the room who gave her the information. She was not very happy at all but has no other choice but to give me her approval since the commitment was arranged before her time. She then turned to her three VPs asking them of any additional information that she needs to know now. I did apologize to my three VPs for not giving them a heads-up of the topic that I was going to report to our Executive Team meeting. Our CEO did not believe that I had the need to apologize. It was quite an awkward moment.
· Lack of awareness – organizational leaderships do not naturally check their patterns of behavior whether it may hurt their subordinates or their colleagues. I am one of those leaders who are guilty of lacking self-awareness of my behavior. I caught myself multiple times in a situation where I reached to a realization that the initiative I was championing was not working and I have to dig deeper within me why things were not working. Come to find out, I was not actually buying into the initiatives I am championing, and it just makes sense that members of my staff were not empowered and engaged.
As a transformational leader, I have learned that I must always be a role model behaving with high standards and “walk the walk” even in times of testing occasions (Dubois, Hanlon, Koch, Nyatuga, & Kerr, 2015). I have learned to maintain emotional stability, becoming a better communicator and predictor about my audience. As a critical thinker, I am able to strengthen and choreograph my thoughts in a logical format, and therefore, become a better listener.
In addition to what Blenko suggested regarding the elements of good decisions such as
quality, speed, yield, and effort, in my opinion, part of the elements of a good decision-making is to define the problem and specify the solution to the problem. I have learned that when a manager or an employee comes into my office to present their problem, the first thing we do is we analyze the seriousness of the problem. Is the problem generic that it can be resolved through complying with our company policy or procedure or is there a presence of a pattern of behavior that the behavior poses a risk to the employees and to the organization as a whole? Or is the problem an isolated event. For example, a very productive and star employee suddenly behave in irate behavior. I typically sit down with the employee, listen to what the employee’s explanation as to the reason for the unacceptable behavior, correct the behavior, then we all move on. I don’t usually encounter the same issue when the issue is resolved in its first occurrence.
As leaders, we need to be able to trust our intuition and trust ourselves to make the effective decisions either in business or in our personal lives. We have to hone our skills of expertise in our own field to avoid the chance of overthinking. Being confident with the decisions we make and not second-guessing ourselves can save us time and energy remaining calm in times of distress making excellent personal or business decisions. We are just human and making mistakes or making wrong decisions are inevitable. It just a matter of how we accept uncertainties that we face and take those mistakes as opportunities for self-development and improvement.
References:
Argerys, C. (1966). Interpersonal Barriers to Decision Making. Harvard Business Review.
Dubois, Melissa, Hanlon, John, Koch, Jodi, Nyatuga, Betty, & Kerr, Nathan (2015). Leadership
Styles of Effective Project Managers: Techniques and Traits to Lead High Performance
Teams. Journal of Economic Development, Management, IT, Finance, and Marketing 7.1
(Mar 2015): 30-46. Retrieved from:
Hoch, S. J., & Kunreuther, H. C. (2005). Wharton on making decisions. (1st edition.).
Hoboken, NJ: John Wiley & Sons Inc.
Shiv, B. (2011). Brain Research at Standard: Decision Making. Retrieved from:
Suzuki, O. (2015). Unpacking performance benefits of innovation ambidexterity: Evidence from
the pharmaceutical industry. Management Revue. Retrieved from
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