How Decision Making In Organization Can Make Or Break The Organization

How you and your business make decisions has a huge impact on the well-being of management and staff. Choices that show the company cares about their employees and families make a huge difference in the retention of employees and increased productivity.

Organizations that show little consideration for their staff will retard their growth. Here is how a company’s decision-making process can break the organization.


It will break the organization when:

1.     The decision-making process is abusive:

Decisions that hurt employees, begin a decline in the work environment of the company.

A choice that could put the safety of employees at risk because of the need to save money will severely lower moral. Lower moral comes poor training, old and unsafe equipment, exhausted employees, inadequate compensation, lack of breaks, bullying by higher management and a lack of respect for human rights.

2.     Decisions made are unclear:

Decision made need to be clear. People don’t need to know everything about the decision but enough to understand why it is happening and how it is going to impact them. You want your employees to buy into the decisions made so they will do their best work for you.

3.     Decisions rare imposed:

Feedback should happen before actions become implemented.

Actions taken, without prior feedback,  miss out on the wisdom of those who are going to make it work. You want to use the expertise of your workforce to help you to make the best choices possible. The more you can have staff participate in the decision-making process the more likely they are going to be fully committed to the changes.

4.     Not enough time is given to follow through on the decision:

Big decisions need enough time for all members of the organization to be ready for it. Each person in the organization needs to know how it will impact their jobs.  Each person needs the proper training, so they have the confidence to make the new environment work. There must be enough time for staff to prepare for the changes otherwise the changes will not be smooth. When new initiatives begin before staff are ready everyone is going to look bad.

Read More About Making Better Decisions: Click Here 

Decision making that enhances the organization when:

1.     The decision made is clear:

When clear decisions are made most people are willing to participate in the new initiative. They are eager to join because they understand the purpose. Even if it means a significant change, they will be willing to participate because they know it is the best choice to keep the company healthy and productive.

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2.     The decision made enhances the whole organization:

When people can see the direction, the company is going and can look at the benefits of it they are happy. Happy employees will do everything they can to make the changes go as smoothly as possible. Staff are excited to be part of an organization that is staying relevant for the future.

3.      Staff and management have all the tools they need to make the changes:

If you have staff and management excited together for the new initiative, you don’t want to waste this positive energy. Positive energy in the organization will help to make the rollout go smoothly.

When staff and management are trained and comfortable with the new software and products, then they will do an excellent job of introducing the changes to clients.

When everything is going smoothly through the transition everybody, both employees and clients are happy. Staff are not embarrassed by new equipment not working. Customers are not frustrated by delays.

The excitement that began with the anticipation for the new project will continue in the early weeks motivating everyone to make this a success.

4.      Enough time is given to carry through with the decision properly:

Excellent planning will help the team leaders to know how much time is going to be needed to prepare for the project. Everyone connected with the changes needs training. People in the different departments will need specific information for their own needs. Software and equipment need testing. Everyone needs to be on board and ready to go.

5.     Space is given to clarify the decision:

Everyone learns at a different pace. There may be people whose first language is not English.  Management needs to ensure there are opportunities for employees to ask questions both in groups and individually. Management needs to create a team atmosphere for all employees and management to support each other.

You might want to set up mentoring for the less experienced employees. Mentoring can make a big difference in forming new leaders in the organization.

6.     There is flexibility:

When new projects start, you may discover that specific procedures need to be adapted. Remember the people who are doing the work are becoming the experts. Listen to their concerns and suggestions. They can help you to increase your productivity.

7.     It builds up goodwill in the organization:

Decision making that is people focussed builds up the goodwill in the organization. The good-will you have built up the better you will be able to deal with problems that will come up.

You build up the good-will be treating your employees with dignity. You show appreciation in words, in your treatment of your employees and in the financial remuneration you give them.

You make it clear that racism and homophobia are not acceptable. You have an intentional policy to ensure that people are treated well no matter their gender, disabilities, or sexual orientation.

You build of good will with excellent employment assistant plans. You build up a sense of community and home by having social events. You don’t overwork your employees. Your productivity goes up because people love coming to work.

You have a clear grievance or disciplinary process set up for when issues come up. It needs to be a process people can trust. It needs to be confidential except when people need to know. There need to be trained people to help individuals to work through the conflict. When conflict is resolved, people can move on.

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Decision making that empowers people will strengthen any organization. Decision making that shows respect and compassion for those affected by the decisions will have the support of management and workers. Organizations that base decisions only on the return on investment for shareholders will lose in the end.

It makes sense that employees who are happy will be more productive. If you are so glad because you feel appreciated and supported in your work, you will make an extra effort.

The best companies today are the organizations who care about the staff, the communities they are based, the clients and the world.

If you show little social concern, you may profit for a while, but it will backfire in the end with a high turnover of staff. It will show up in declining sales if people discover your use of slave labour and poor environmental policies.  Word will eventually get around if your products are poorly made, e.g., they don’t work right out of the box.

Decisions that build up the company and community are going to help create healthy organizations that are going to be around for a long time.  These are the companies who will keep up with the changes. These are the companies that are going to be part of making the world a better place.

I am, Roland Legge a Life Coach here to help you grow healthy dynamic leaders for your organization.  You can join my private newsletter list for Free Monthly Advice and get Your Free Enneagram Test and sign up for a Free 30 Minute Discovery Call with me in my Acuity Scheduling Calendar.

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