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Universities Press
Management
NOTES
DECISION
TAKING
m
GO
DECISION TAKING
Titles in the series:
Appraisal and Appraisal Interviewing
Decision Taking
Delegation
Effective Management in the Public Service
Effective Supervision in the Factory
Effective Supervision in the Office
Effective Use of Time
Induction
Involvement of Young People at Work
Job Descriptions
The Manager as a Leader
The Manager's Responsibility for Communication
Managing Change
Managing for Total Quality
Motivation
Target Setting
Training your Staff
DECISION TAKING
by Colin Chase
Universities Press
UNIVERSITIES PRESS (INDIA) LIMITED
Registered Office
3-5-820 Hyderguda, Hyderabad 500 029 (A.P.), India
Distributed by
Orient Longman Limited
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Other Offices
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© The Industrial Society 1993
First published in the U.K. by
The Industrial Society
London WIH7LN
First published in India by
Universities Press (India) Limited 1997
Reprinted 1997
ISBN 81 7371 050 3
This edition has been authorised by The Industrial Society
for sale in India, Nepal, Bhutan. Bangladesh, Sri Lanka
and the Maldives only and not for export therefrom.
Printed in India at
Isvarya Graphics,
Hyderabad 500 004
Published by
Universities Press (India) Limited
3-5-820 Hyderguda. Hyderabad 500 C29
(v) - | c o
CONTENTS
Foreword
1
vi
Setting the Scene
1
2
The Decision Taker as a Leader
3
3
Stages of Decision Taking
4
4
Key Actions for Decision Taking
7
Appendix
Company policies—decision taking
17
FOREWORD
Whatever the discipline or level of management, the
responsibilities of a manager are many and various. It is their
job to produce results with essentially just two resources—
people and time.
To maximise the potential of both, most managers need
some reminders and basic guidelines to help them.
The Notes for Managers series provides succinct yet com
prehensive coverage of key management issues and skills.
The short time it takes to read each title will pay dividends in
terms of utilising one of those key resources—people.
This book serves as a summary of the experience of man
aging participation. It recognises our fundamental reality
that, whether managers like it or not, the employees are the
people who ultimately decide whether commitment and
co-operation are to be given in the implementation of deci
sions affecting them. Managers can decide what they want
about what needs to be done, but making it happen is an
entirely different matter.
ALISTAIR GRAHAM
Director, The Industrial Society
1
SETTING THE SCENE
We face an ever increasing rate of change, both with the
society in which we live, and at the work place.
The development time of most products must now be
measured in months, rather than years, to remain competi
tive within the international market-place. Services are
under constant pressure for improvement, whether by local
authorities, health service, hotel and leisure industry or
travel. People demand more, the knowledge of availability
is greater, and the scope for choice is continually increasing
as previous market barriers and regulatory systems dis
appear.
The challenge to those who manage is to decide how best
to cope with these changes; how to react to external pres
sures on the company; how to avoid being always in the
situation of reacting, and instead be in the position of taking
the lead by being a master of change. Most of these deci
sions regarding new courses of action will take us into areas
where clear answers seldom exist. This will demand our
assessment and judgement about people and activities now
and in the future. Frequently this will involve compromising
priorities, making choices, evaluating ideas and deciding
against conflicting criteria. In essence, this is what manage
ment is mainly about—taking decisions and getting them
implemented.
Possibly, it is getting them implemented that causes the
greatest problem. This may be through insufficient thought
being given to the factors affecting how the decision is trans
lated into action. Alternatively, that the worst fears are con
firmed as the results of the decision take effect and people
react to these results.
Clearly, anyone in a position of authority cariyinga title of
'manager', 'supervisor', 'officer', 'executive', 'chargehand',
1
'captain' or any other that equates to demands of leader
ship, must take all possible steps to be as professional as
possible in the field of decision taking. Our very future
depends upon the decisions all sorts of people take every
day at work. Decisions affect how others operate, what work
is done, whether they even eventually have a job or, i ndeed,
their health and safety.
We need, therefore, to address the issues of decision tak
ing from a people aspect. From theaspect of establishing the
manager as a leader who is capable of planning the future,
rather than reacting piecemeal to each new event that
impinges on the organisation. This is the area of decision
taking that will be addressed in this book: considering how
we can best approach the decision taking process in a man
ner that will improve the quality of our decisions and, subse
quently, the manner in which they are implemented.
2
2
THE DECISION TAKER
AS A LEADER
Coupled with the increasing rate of change is the increas
ingly high level of expectation of people at work. As pro
ducts and services change, better entertainment systems
become available, extended travel a feature of vacations, car
ownership an accepted norm, education and traininga con
tinuing feature of life, so will the demand of managers to
manage by ability and not by status become more pressing.
This results in a much more open style, where steps are
taken to keep people informed; to ensure that they under
stand the aims of the organisation and their own individual
roles within it. Somehow, the environment has to be created
which encourages people to make.use of their skills and
ingenuity to the common value of the organisation. This
leads to establishing forums for joint discussions, generating
ideas and suggestions as well as questioning current
activities.
Through involving people in the decision process, there
grows a fear that management loses the initiative. What we
need to understand is that the process of decision taking
involves people in a manner which contributes to the effec
tiveness of the decision and its implementation without
undermining the vital leadership role of an individual
leader.
What, therefore, we must develop is the ability to com
bine the many skills that encapsulate the manager as a
leader, in being an effective decision taker.
3
3
STAGES OF
DECISION TAKING
The art of leadership is in making difficult things simple. In a
similar way, a checklist for decision taking should be devel
oped that enables ease of reference for most effective use.
From the gathered wisdom of many managers and leaders our
decision taking process can be based on five principle stages.
The five C’s of decision taking and
implementation
1
2
3
4
5
Consider. The thinking starts now! Define the objective;
consider the problem.
Consult. The stage at which you take initiatives to involve
those affected.
Commit. Ensuring that appropriate action will be taken.
Communicate. The stage at which you explain what has
been decided and why.
Check. The need for visible leadership in ensuring the
decision actually works.
This is our foundation (see Table 1) on which we can build
more detailed actions. First, though, it is necessary to make
three major points about these stages.
•
4
It cannot always be a progressive step-by-step process.
Sometimes it is necessary to go back a stage and repeat
part of the loop. For example, following consultation with
others and establishing further facts, it becomes clear that
we need to return to the initial question or problem and
reconsider the objective. However, we must be careful
that this is not an eternal loop for ducking decisions! This
will be taken up later in the next chapter.
Consultation is not applicable in all situations. Through
reasons of policy, time, or the extent of an emergency, the
manager may well be in the situation of moving straight
from the 'consider1 stage to the 'commit'. This is all part of
the vital thought process that must happen at the outset,
so that the implications of omitting the consultation are
understood, and appropriate actions taken to cope with
this when at the 'communicate' stage.
There is no recognition of negotiation in this 5-stage pro
cess of decision taking. This is because negotiation is a
separate stage when no one leader has the authority to
take the decision. When that authority does exist, we
must ensure that neither 'consult' nor 'communicate'
degenerate into negotiation. It is vital that we either have
one person taking the decision and being accountable, or
a joint party negotiating. In either event, consultation
before meeting at the negotiation table is important, as
are the communication processes that would follow.
During negotiation, however, we have more than one
organisation system conducting these two stages (e.g.
management seeking views and explaining outcome,
whilst union officials or employee representatives would
be doing likewise).
5
Table 1. Decision taking—key actions
Consider
Consult
Commit
Communicate
Check
Ultimate objective
Others likely to be
affected
A plan of action
within time scale
Face-to-face in
teams
Decision is being
implemented
Walk the job
ESTABLISH
Problems
Cause and effect
Who is affected
Time scales
Constraints
ENCOURAGE
Attendance
Suggestions
Listening
Creativity
Time to think
Take the decision
Write it down
Be committed and
enthusiastic
EXPLAIN
Sell the decision
Check understanding
EVALUATE
Understandingand
acceptance
Training
Standards
Quality
Delegation
Rewards
Is it achieving the
objective?
What, Why, When, Who, Where, How.
4
KEY ACTIONS FOR
DECISION TAKING
Regardless of the complexity of the decision it is vital to be
clear at the outset who will ultimately take that decision.
Managers are more enthusiastic about carrying out deci
sions that they have made themselves. Doubtless most of us
know examples of marginal, or difficult decisions that have
been turned into highly effective ones as a result of the
commitment and enthusiasm of the person who took it.
One lesson to be learned from this is that it is much more
practical to delegate decision taking as far down the line as
possible.
This is much easier said than done, sincedoingso involves
trusting people and carrying the can for subordinates who
make mistakes, as they inevitably will, from time to time. A
decision-taking policy shows that there are enormous
rewards to be gained from trusting people, and taking the
risk, rather than not trusting them, with all the accompanyjng problems of time, failing initiative and morale, and
enjoying the false luxury of being indispensible.
The actions that follow, under the five stages we have
already identified, are as applicable to a senior manager tak
ing policy decisions, as they are to the supervisor tackling
today's problems. The major difference relates to the
timescales involved in taking the decision, and in the extent
of future impact. For those involved, however, the distinc
tion is of scant interest—either the decision will be effective
or it will not.
It is incumbent on leaders at every level to think carefully
about the following actions and to be continually lookingfor
ways to be 'in charge of their own destiny'.
7
1
Consider
The decision-taking process starts when it is apparent
that some management action or initiative is necessary. The
first action is to give yourself time to think. Consider if
the real problem is being tackled and not merely the super
ficial symptoms of an underlying factor, or, indeed, whether
intervention is actually necessary. Some problems solve
themselves without the need for outside help. In some cir
cumstances, the best possible decision to take is to take no
decision. Next, however, you should consider what your
aim is; what is it that you want to achieve? Finally it is sen
sible to establish what are the constraints within which
action must be taken.
Establish
•
•
•
•
•
What information do I need? How do I get it?
Is the decision mine? Am I assuming too much author
ity? Am I undermining someone else's responsibilities?
Who is likely to be affected by the decision?
What other constraints are there likely to be? (E.g.
policies, precedent, legal, financial, external influences.)
Time-scales. What is the latest possible date or time by
which the decision must be taken? If we decide too
soon, we may deprive ourselves of information or rele
vant factors which have not yet come to light. If we
delay, we may prevent others in the organisation from
getting on with their jobs, thus wasting resources.
Finally, ask yourself: 'What would happen if no decision
were taken at all?' (In this way, you may well save yourself a
great deal of time and trouble.)
Checklist
•
•
•
•
8
Has the real problem been defined?
What is the decision intended to achieve?
By when must the decision be taken?
What other constraints are there?
•
•
•
What would be the effect if no decision were taken?
What information is needed?
Should it be delegated?
2
Consult
Experience shows that group decision taking is not usually
practical. Yet at the same time, all the evidence is that, when
people are not involved in decisions that affect them, their
commitment is difficult to obtain. The most effective way of
involving people is to adopt the approach of consultation
before decision. But the crucial word is 'before'. Consulting
people after decisions have been made is rarely productive
and frequently leads to resentment, as many managers have
found to their cost.
In cases where consultation is not appropriate, it is vital to
plan the communication stage well, and to make every
effort to achieve acceptance of the decision. Where consul
tation processes have taken place, there is far greater under
standing of the intentions of management, often creating an
atmosphere of wishing to help on the part of the workforce.
It cannot be emphasised too often that managers have to
get results through people. Others must carryout their deci
sions. Managers therefore need co-operation and commit
ment. To get these, they must convey to an increasingly bet
ter educated, articulate, and critical workforce, the facts of
the situation relating to the decision.
But people perceive facts and situations from different
standpoints. They see things differently; their feelings are
involved; their interests are affected; their jobs and security
may appear to be threatened and, above all, they often have
the knowledge and experience which springs from having to
carry out decisions and do the actual work. They therefore
have much to contribute to the decision making process,
but must clearly understand that the decision itself is the
responsibility of the appointed leader.
9
Encourage consultation
Consultation can, in many instances, be limited to the
immediate work group, as is often the case with operational
decisions. But some tactical and strategic decisions affect far
wider areas of an organisation, and this calls for the use of
whatever formal consultation arrangement exists. The
organisation may or may not be unionised, but, where
unions are recognised, they must be included. A meeting
should, therefore, be called with those involved, or their
representatives, and the maximum amount of information
made available.
Increasingly, decisions cut across conventional organ
isation boundaries. Lateral teamwork is becoming more
important, and, frequently, it is of value to establish a multi
disciplinary team for specific problem solving activities.
However, it is vital that vertical teamwork is strengthened
before forming teams for generating ideas and suggestions
that cut across the functional structure.
Working to timescales
The timing of consultation will often call for sensitivity and
good judgement. There is a strong case for consulting as
early as is practicable, so as to allow as much time as poss
ible to weigh up the pro's and con's of the situation. But, 01.
the other hand, the desirability of early consultation has also
to be weighed against the need to avoid long, drawn out,
and possibly destructive discussions of contentious issues,
as well as raising hopes or apprehensions unnecessarily
early. In any event, it is wise to set a time limit so that every
one knows when consultation will stop and a decision be
taken.
Checklist
•
•
•
10
Have all the people who should be consulted been
identified?
Has the information which should be tabled, including
the constraints, been assembled?
Have meetings been convened of consultative commit
tees and trade union representatives?
•
•
•
3
Has the timing of consultation been chosen with care and
a date been set for concluding the process:’
Have you attempted to think outside the problem by cre
ating a task force and using creative techniques such as
brainstorming?
Are you fully prepared to listen to ideas and suggestions,
without jumping to conclusions?
Commit
Having completed the first two stages, all that remains is to
take the decision. One must weigh up the gathered views
and opinions, evaluate the ideas and suggestions put for
ward, and review the facts. The result is a rational considera
tion of the risks, probabilities, and rewards.
In actuality, many managers are given an uncomfortable
time by this process. Why is this so? Many reasons could be
given, but the chances are that the answer is reflected in
one, or more, of the following:
o
©
•
•
insufficient time to think at stage 1; being under pres
sure, or simply failing to resist your own burningdesire to
get on and act
failing to listen at stage 2; either not consulting at all, or
doing it in such a way that you were not really receptive
to the views, opinions and suggestions of others
failing to assemble sufficient relevant data at stage 2; or
assemblingso much that the important issues were sub
merged under superfluities
failing to face the issues within the timescale set for
action, and not progressing beyond stage 2.
Far better instead to:
•
•
review the information already assembled—which
should include feelings as well as facts
try to assess the extent to which the absence of some
information will affect the quality of the decision
•
•
•
list the operations and the arguments for and against
give yourself time to think; if possible, sleep on it
discipline yourself to decide within the set timescale.
Making up your mind
The decision, when arrived at, can sometimes be
appropriately described as 'the least worst' decision rather
than 'the best' decision since there are bound to be some
disadvantages and some interests adversely affected. For
this reason, decisions sometimes demand courage and
resolution to face up to unpopularity and dissent. Once the
decision has been taken, be committed and enthusiastic
about the plan of action, however finely balanced the deci
sion.
Checklist
•
•
•
•
•
•
•
•
•
Review the objectives established at Stage 1.
Classify them according to importance—what must we
achieve? What would we like to achieve?
List all options (and feelings).
Evaluate options against objectives.
Choose the best option and assess the consequences—
if these are too great the second best option may have to
be considered.
Make a serious attempt to see the consequences of each
option.
Take the decisions—it may be the 'least worst'.
Record the decision and the plan in writing.
Be committed and enthusiastic.
Group decisions
Because decisions frequently affect an entire group of
people, some managers are tempted to implement deci
sions because they will be popularly received by the
group—but not necessarily because they are the right course
of action!
12
However tempting, it is worth remembering that:
o
©
o
group decisions are frequently an outward and visible
sign of consensus or compromise, for which few people
feel any real enthusiasm—unless the decision is obvious
they frequently result from majorities outvoting
minorities, but make no provision for the needs of the
latter
nobody remains accountable for what happens—if
queries or problems arise, people feel free to pass the
buck.
It is seldom worthwhile passing the decision taking pro
cess to a group. Teamwork is more likely to be weakened by
providing the team with total responsibility.
4
Communicate
More decisions flounder because of poor communications
than for any other single reason. Most managers all too fre
quently have experience of this, and it is appropriate to review
the key points.
First, it is vital to secure peoples' commitment to decisions
by communicating face-to-face. It is a selling operation,
explaining the decision so that people have the opportunity
to ask questions. This way, we all find it easier to understand
and accept—even though we may not agree. If we only use
the notice board, company newspaper, scan light, or a video,
the decision is likely to fail. Any of these communication
methods are invaluable back-up tools to the team meeting or
equivalent forum, according to the nature and impact of the
decision.
Second, it must be remembered that it is the job of whoever
takes the decision to ensure that it gets communicated. Part of
the problem at stage 3 may be hesitancy in taking the decision
because of concern at facing the consequences of that deci
sion. Managers who are leaders do not evade the importance
of communicating face-to-face and ensuring that the decision
is communicated down and across all necessary manage
ment lines.
13
Team briefing
Many of the problems of communication can be overcome
by installing team briefing to ensure that the decision and
the reasons for it are transmitted right the way down the line,
from the level at which it is taken, to those whom it actually
affects. It also ensures that the message is put over only by
those who can be accountable for doing so. In this way,
managers can check that even an unpopular decision is
enthusiastically and properly put over—and it is enthusiasm
that forms the springboard for a decision's success.
You can still insist that subordinates who manage others
put a message across and do not fall back on weak apologies
such as: 'It's not my fault, it was management's decision'.
Team briefing is a good way of making sure that managers do
actually manage, and that they are reinforced and consoli
dated in their rightful position as leaders of the work group
(see Team briefing and The manager's responsibility for
communication, in this series).
Explain
The crucial points to communicate are the decisions and the
reason for them, plus examples that will make the message
real for the receiver. People need to understand when the
decision will be implemented, who will be affected and how
and, finally, what the procedure is for registering a complaint
or grievance.
It is the added dimension of 'explanation' to information
which helps reduce people's fear of change, and also effec
tively combats the grapevine, that rumour network frequently
giving remarkably accurate information, completely distorted
reasons, and, as a result, severe management headaches!
Checklist
•
•
•
•
14
Have the methods of implementing a decision been
planned?
Have all those affected been briefed in teams, with facts
and reasons, face-to-face?
Are the channels for feedback fully understood?
Have all those affected accepted the decision?
5
Check
Finally, there is a need to know whether the decision you
have taken is actually working. Naturally, a great deal of
information can be obtained through the normal channels
of returns and statistics, not to mention the feedback from
trade union representatives and from briefing groups. But
there is no substitute for going out to see for yourself as well.
By going out and walking the job, managers can observe
the operation for which they are responsible by talking with
people. They can gauge a great deal, not just from what
people actually say, but also from the way that they say it.
Vhey can develop their ability to observe the signs of effec
tive team work, and can often catch the first 'wisp of smoke'
from an impending crisis. Also, observing, for themselves
enables them to determine whether or not any corrective
action is necessary. Above all, however, it enables people to
see that managers are acknowledging their own responsi
bility!
If the decision is working then we need to know that, so as
to identify good practices and promote a positive climate of
motivation by 'catching people doing things right'. If the
decision is not working, then we need to review potential
weak areas:
•
•
•
•
•
•
inadequate information
poor judgement
lack of courage
inadequate plans for implementation
a breakdown in briefing
lack of enthusiasm on the part of management.
Evaluate
•
•
•
whether people have understood the briefing and
accepted the implications
whether anyone needs trainingas a result of what is now
being actioned
that standards are being achieved
15
•
•
•
•
whether quality can be improved
whether authority can now be delegated for subsequent
decisions
whether any rewards are justified
is corrective action needed?
Nowadays, we must take decisions by drawing upon
other people's skills and experiences whilst still having the
leadership responsibilities of deciding which course of
action. Equally, we must have the commitment to see that
course of action implemented, with all that is required in
standards of quality of goods and services. Decision taking
draws upon all our ski Ils of communicating. It also demands
making the time to think and getting others to think, whilst
keeping to your timescales and not ducking issues. There is
much to commend the stages and key actions contained in
this booklet. One may even become a better leader in the
process.
16
APPENDIX
COMPANY POLICIES—DECISION TAKING
A number of organisations have evolved policies on decision tak
ing. These, of course, amount to little more than guidelines—how
can you legislate for every situation? However, at the same time,
they can be enormously helpful once the right sort of environment
has been created. They help managers sort out the priorities and
make them more consistent people to work for or deal with. Here
are two typical policies, written down, after consultation, by chief
executives.
Policy 1
o
Decisions should be delegated as far down the management
chain as practicable.
•
Sufficient preparatory work, often by specialists, should be
carried out to ensure that a meaningful discussion with
employees or their representatives can take place.
®
Managers should take the final decision only after considering
fairly and fully the facts and the opinions of employees or their
representatives.
•
Employees or their representatives should be involved as early
as possible before any decision is taken on changes which may
affect their conditions of employment, their work or their
working environment.
•
All relevant information should be provided in terms which
can be readily understood.
•
Many day-to-day decisions can be made without direct
employee involvement on every occasion if general para
meters are already established.
Policy 2
Delegation. Ourpolicyon decision taking is based upon the prin
ciple that the most highly motivated decisions are those that we
take ourselves. Therefore, wherever possible, decisions in this
17
organisation should be delegated to whoever has to carry out the
action.
Consultation. Where a decision is to be taken that affects either
an individual or a number of people, it is the job of the leader of
that group to take the decision after consulting. Leaders should
therefore, first, sincerely seek people's views, except on those few
occasions when time prevents. They will also consult employee
representatives, where appropriate. Having done this, they will
then take the decision themselves, basing it upon what they
believe to be right, but having taken into account the views
expressed, their own experience, and judgement.
Explanation. Deciders will explain why they have taken the deci
sion, in order to help people to live with it and enthusiastically
carry it out, even it they don't agree.
Consistency. Where a decision has been taken at a higher level,
and affects people, it is the responsibility of the leaders at every
level to see that it is implemented energetically, whether they
agree or not.
Company objectives. When taking decisions, the guiding prin
ciple will be the greatest possible achievement of the organisa
tion's objectives. The decision taker will try to be as positive and
consistent as possible. If events show that the decision is wrong,
the deciders must be prepared to admit that they made a mistake
and change the decision accordingly.
Right of appeal. If somebody believes that the decision involves
an injustice and not merely a difference of opinion, they must be
encouraged to make use of the grievance procedure or, after talk
ing to their immediate boss, go and see the level above.
18
This book emphasises the importance of clear
decisions—how to go about making and
implementing them. The book also covers
action points on gathering information,
consulting relevant people before deciding,
and evaluating the results of the decision.
The Notes for Managers series provides succinct yet
comprehensive coverage of key management issues
and skills.
ISBN 81-7371-050-3
9
Universities Press
Colin Chase: Decision Taking
I Orient Longman
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