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Decision Making and Management Effectiveness

Introduction

Effective management is associated with the power to influence others to work towards common organizational goals in order to achieve the desired objectives through their input (Islam and Ismail, 2008). Effective managers are those who “create a proper climate in which employees can develop to their fullest potential” and ensure their optimal participation (Steers and Porter, 1983). One of the ways in which effective managers can influence employees positively is through their participation and involvement in the decision making process. This paper aims to analyze the reasons why decision making is believed to be a fundamental aspect of management effectiveness. The paper also seeks to explore the meaning and significance of participative decision making, employee involvement, employee empowerment and employee ownership as vital aspects of effective management.

Participative Decision Making

Decision making in companies and organizations is associated with effective employee participation and is considered to be a determining feature of effective management, which not only has a crucial impact on performance but also on the productivity (Shaskin, 1984). Literature on decision making substantiates that participation in decision making related to work issues tends to result in positive attitudes towards company managers and the organization in general and research indicates that decision making is positively linked to job satisfaction (Nykodym, Simonetti, Nielsen and Welling, 1994).

Issues at the work place generally necessitate participation in decision making with regard to the work that should be done, the process of organizing the work and the persons involved in carrying out a particular task or work (Nykodym, Simonetti, Nielsen and Welling, 1994). Cotton, et al., (1988) assert that participative decision making at work is generally direct and formal and relates primarily to work issues with the workers having an important say and influence in the decision making process. However, they also affirm that not all companies and organizations may have formal participatory decision making and participatory decision making could be an informal process which occurs through participation due to interpersonal relationships between managers and their subordinates (Cotton, et al., 1988). Despite its important role in effective management, researchers note that participative decision making needs specific milieu or background to take place and can prove to be extremely beneficial to large-scale companies if employees are given the opportunity to use participative decision making to bring about positive changes at their workplace (Greengard, 1993).