The Challenges of Organizational Decision Making

Effects of organizational decision-making on people and resources.

The organizational decision-making process, at its best, involves the full utilization of all of the enterprise’s people and resources. Organizations that centralize their decision-making practices out of habit or a desire for control, do not fully utilize the talents of their people. Non-profits and entrepreneurial for-profits don’t always have the financial resources that they need but they are almost always staffed by innovative and resourceful employees. These staffs are the organization’s greatest asset and yet our research and our experience clearly tells us that rampant decision-making confusion pervades most organizations. As a result, financial resources are wasted, employee attrition increases, mission are not achieved and the ability to scale is limited. Let’s examine a key decision-making scenario that affects many organizations.

We’ve all seen instances where cross-functional departments in an organization must come together to advance an overall decision-making process. Making a decision can have different implications for each respective group. Gaining agreement from all stakeholders is often a challenge. And when a companies overall strategy depends on the support of all business units, effective, organization-wide decision-making is crucial. While it is important to be able to achieve solid cross-functional decision-making, it is seldom accomplished due to the fact that different units are confused by who is the actual decision-maker.

Organizational change management is a growing discipline to help employes become better positioned to understand how the decision making process can affect individuals at a cognitive level. Performance improvement is intimately linked to this. As social sector organizations and companies seek to achieve their mission, change management solutions such as Decision Clarity, are becoming increasingly important tools. Recent research on decision-making conducted by Commongood Careers and EmpoweringWorkPractices brings new insight to this issue for non-profits.

Is your organization achieving its mission with effective decision-making that maximizes the potential of your people? Share your thoughts and let us know how you weight in on this important issue.

There are no comments yet. Be the first and leave a response!

Leave a Reply