Changes in Decision Making

Topics: Leadership, Management, Organizational studies and human resource management Pages: 5 (1443 words) Published: January 19, 2013
Managerial Decision Making and Management Organizational Change Managerial Decision Making and Organizational Change
Two very important aspects of good leadership include managerial decision-making and managing organizational change. The two are closely related, enough so that for one to be affective the other has to be just as successfully managed. A good leader possesses the quality of good managerial decision-making, learning from experience, creating change, diversity and creative decision-making (Hellriegel, 2011). A successful leader is also one who is organized in the process of change (Hellriegel, 2011). Today’s leaders have different challenges than managers of businesses from over a decade ago. New technology has helped coordinate structure more efficiently and improved cost performance ( /change/). As recently as the 1980’s new stresses such as balancing with shareholders, narrowing down operating efficiency, working with world markets and an entirely new form of competition, have all increased the demand for leaders good decision making and creating organized change. The success of any business heavily relies on these two factors. One of the key factors in a successful manager managerial decision-making that relies on: learning from experience, creating change, diversity and creative decision-making (Hellriegel, 2011). Learning from experience is a vital piece of decision-making as it helps figure out what a business should and should not do again. Three pieces to this process include assessing certainty, risk and uncertainty (Hellriegel, 2011). When thinking about certainty, a manager has to be informed about the problem at hand, figure out alternative solutions based on past events, address solutions already known, and come up with results (Hellriegel, 2011). According to Hellriegel, once the certainty is known the risk needs to be defined (2011). This includes defining the problem, specifying the probability of events, and the probability of the solution leading to a result (Hellriegel, 2011). This process requires diligence, honesty and addressing the facts realistically, and is a vital part of the success of a business. A good leader will go beyond addressing not only risk but also uncertainty. Attempting to prepare for uncertainty is very challenging in that it has no “information to assign probabilities to the outcomes of alternative solutions” (Hellreigel, 2011). If uncertainty is not addressed, a crucial part of planning is omitted and can lead to failure on management’s lack of planning for uncertainty. The second factor in successful decision-making is creating change once a plan is devised (Hellreigel, 2011). The challenge in this step is not forcing change upon managers’ employees. When change is forced onto employees, they will resist and potentially the plan can fail. With good leadership change happens naturally. According to Hellreigel, core components of good leadership include: creating hope, reflecting trust, being positive and raising optimism (2011). When these are utilized change is more likely to happen and remain in affect, raising the potential for success. The third and fourth factors in successful decision-making are diversity and creative decision-making (Hellreigel, 2011). Adding diversity can greatly improve the chance for new ideas to implementing change, and can largely improve the chances of greater creativity in the process. For these to be effective its’ leaders have to ask: what needs to be done, what is right for the organization, take responsibility for decisions and communicating them (Hellreigel, 2011). The second aspect of good leadership includes organizational change that is planned and researched. This ties in to managerial decision-making in that it involves drawing out the details once plans are made. Hellreigel (2011) notes that developing employee competencies is a common way for companies to assure planned change is possible. Often,...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Judgment and Decision Making Essay
  • Decision Making Essay
  • Essay about Decision Making
  • Essay about Organisational Culture and Decision Making
  • Decision making Essay
  • decision making Essay
  • Decision-making Essay
  • decision making Essay

Become a StudyMode Member

Sign Up - It's Free