When defining what makes a good manager, the ability to make tough, strategic decisions is always high on the list. In fact, it’s one of the most important qualities a manager should possess when leading a team.
In this blog, we explain why decision-making is important in a leadership role and how you can develop your skills when considering decision-making methods in management.
- Why Is Good Decision-Making Important?
- The Four Methods for Decision-Making Success
- How to Make Wise and Strategic Decisions
WHY IS GOOD DECISION-MAKING IMPORTANT?
A manager must know when and how to make decisions to be an effective leader who can get the best out of their team. Whether relating to a client, a piece of work or even a team member, a good leader has to decide what’s best for the success of your staff and business.
There are plenty of benefits for a team when good decision-making is applied, including:
- Increasing productivity: Making the right decisions at the right time can boost morale for your business. A manager who can direct their teams in the right direction can save time, know what tasks to prioritise and, in turn, increase productivity levels.
- Encouraging motivation: Good managers know what to do when their teams feel unmotivated and overworked. By making the right decisions for their team and maintaining a good rapport, managers can encourage motivation for effective working.
- Saving on time: With a strong and effective manager who knows how to time manage and deal with staff, things can be done quicker and more efficiently.
- Addressing conflict: When a team member is unhappy, an assertive manager with strong decision-making skills will know how to resolve the issue professionally.
The Four Methods For Decision-Making Success
There are four main methods in the decision-making process. All four have their pros and cons — you can’t please everyone. We’ll look at these methods and when they’re best used in a managerial position. These are:
This method is used when one person decides on the next step. This might be the main authority figure or leadership team. That individual might delegate the power to another member of the team.
This can be a suitable method of raising authority or assertiveness. However, it leaves no wiggle room for debate and can cause a decrease in morale across the team if they feel their opinion isn’t considered.
This involves consulting other team members before making a decision. You can listen to someone’s opinion without feeling obliged to let that opinion dictate your decision, but overall this method involves a manager making the final decision.
This can be an efficient way of gaining ideas and support without undermining the decision-making process. Involving a range of opinions is a good method for businesses and team morale.
However, it’s vital for managers to remain assertive and still do what’s best for the business, even if staff or leadership say differently.
3. VoteThe group votes in a formal manner to reach a decision. This can be used in various serious situations, such as employee dismissals or decisions regarding pay and positions.
Voting is best suited to situations where efficiency is the highest value and you select from several good options. This is the fairest way of deciding an important decision, provided the group of voters are balanced.
This method is also a great time saver but shouldn't be used when team members don’t agree to support the final decision.
Consensus involves negotiating a position that everyone can agree to in a fair and balanced manner. This is often used to back up a business decision or change within the company and can be used as a seal of employee approval.
This method can boost morale and productivity in a workplace by making employees feel valued and can lead to high-quality decisions. However, depending on the topic, this decision-making method may take a long time and can lead to many compromises from a managerial perspective.
How To Make Wise and Strategic Decisions
By making more informed, business-led decisions, a manager can positively impact your company and be an invaluable asset to your company's success. To reap the benefits of an effective manager who can make tough decisions, you must train them to confidently deliver them.
Regular, practical training for your manager opens the door to many opportunities for your business. Developing their skills can help them with the confidence to lead their team effectively and with respect from employees.
Before deciding to use one of the four methods, a manager should consider:
- Who will your decision affect?
- Is your decision likely to cause backlash?
- Who’s the best person to consult regarding this decision and why?
- What can you do to support your decision and why did you make it?
- How many people should you involve?
Would You Like To Learn More About Effective Management?
By making the right decisions and leading a team in the right direction, a manager can increase productivity and morale in your workplace.
Would you like to learn more about effective leadership training and development? Download our leadership training brochure today to learn how you can develop your manager’s skills.