The Influence of Decision Making in Organisation Leadership and Management Activities (2024)

Corresponding Author:

Nichodemus Obioma Ejimabo

Wayland Baptist University Fairbanks Alaska, USA

Journal of Entrepreneurship & Organisation Management

Abstract

This study explores the influence of decision making in organisation leadership and management activities that impact creativity, growth, and effectiveness, success and goal accomplishments in current organisations. The purpose of this qualitative critical ethnographic study was focused on identifying the factors influencing success in decision making among organisational leaders and managers in organisations' practices. The qualitative paradigm was used in order to gain in-depth knowledge and understanding of the issues and challenges influencing effectiveness, and success among organisational leadership and managements in business practices. The author being committed and determined to discovering a pattern of meaning through experience, systemic thinking, assessment, and creative analysis used the Kurt Lewin Leadership philosophical underpinning approach of leadership namely:autocratic, democratic, and laissez-faire methods of leadership decision-making processes in the context of this study, with the aim of discovering the main factors rather than specific variables and outcomes affecting decision-making among business leaders. Approximately, four hundred past and current business executives and managements participated in this study. Data was collected through structured interviews and surveys. The results that emerged from the data indicated that there is great needs for change and improvement in decision-making among organisational executives while accommodating technology, diversity, globalization, policy, teamwork, and leadership effectiveness.

Keywords

Teamwork; Leadership; Management; Decision-making; Policy; Communication; Organisation growth; Ethics and leadership activities

Introduction

In general, leadership decision making (LDM) among other qualities and functions of leader offers an ongoing creativity and important new insights into leadership and management activities in all organisational operations. The purpose of this study was focused on identifyingthe factors influencing success in decision making among organisation executives, leaders, managers, and supervisors in organisation' practices. Organisation is undoubtedly a systemic network that is both complex and dynamic in nature. In organisations, tough quality and sound decision making are the major element and essence of leadership. The other goal of this work is to discover a scientific break-throughwhich is based on the experience, knowledge and the skills of the selected participants of this study with the aim of improving quality decision making among leaders and overall accomplishment of organisational goals, objective, and performance. In this regard and for effectiveness, a leader must have self-confidence in order to gather and process information and solve problems. For them a person riddled with self-doubt would never be able to take the necessary action nor command the respect of others. Leaders must know what decisions to make and keep the interest of all stakeholders involved. Followers will be less committed to the team if the leader doubts their decisions. They must show followers that they are able to acknowledge when they are wrong and move forward to a better solution. In discussing the statement of the problem; bad policy and inconsistence in decisions making are among the major challenges in organisational systems and have created many unresolved problems among leaders and their employees in our current workplace and entire society. The inabilities of some leaders in developing good policy standards, knowledge, basis, protocols, environments, and skill that incorporate support and optimal decision design for their organisation is troubling and have caused the closure of many business in the country due to either lawsuit or mismanagement. Another significant problem that encouraged this work is the lack of knowledge on how to design positive decision environment, healthy communication skills, and essential tools for leadership decision making in the entire organisation. Many leadership practitioners and scholars believed that any organisation faced with negative policy and decisions by its leadership and management will continue to fail, their people will be often left to ponder the cause, and that organisation would be unproductive in their business while giving way to employees to break the circle for both job performance and goal accomplishment. For instance (1), said, "AUthentic leaders exemplify high moral standards, integrity, honesty, and authentic leaders acknowledge their personal limitations and shortcomings, and are therefore less likely to adopt a defensive attitude about organisation problems" Furthermore, creative policy development and decision making among organisational leaders and management are vital importance to the growth, development, and success of business establishments. For instance, choosing the best alternative form many alternatives and making a good decision in critical matters and challenging situations is always a good strategy of solving problems in most organisations. Thus, the problem in most organisation is that problems tend to present themselves in non-associated symptoms. And the tendency of organisational members and business executives is often address symptoms of the problem irrespective of the facts that members may "know that the problem they are addressing is just a mere symptom. This point contributes among other factors, one of the major loopholes in decision making by management and organisational leaders. However, being able to see problems from a variety of other perspectives from within the organisation allows for a better understanding of the problem (2).

There is a plethora of studies on different topics on organisational leadership and decision making. However, there is a gap in literature particularly on leadership decision making and the variations that exist on the manner, perception, skills, and processes used in making decisions.

This qualitative ethnography study was centered on identifying the factors influencing success in decision making among organisation executives, leaders, mangers, and supervisors in organisation' practices and effectiveness. This method allowed the researcher to see and work with the participants from both their natural environment and cultural individual settings. By using this method, the researcher did not seek to conuct full contextual description but rather looked for patterns in meaning as well as similarities and differences that lead to contextualization, categorization and eventual theoretical codes and relationship among concepts that explained this variation. He also examined some leaders' attributes while being determined to provide a framework for helping organisational leaders and executive managers the ability to choose who should make distinct decisions in various critical and challenging situations. This work was designed to discover a concrete, effective, efficient, unambiguous, and useful means to know and use to implement each leadership decision processes that the situation deems fitting well in the company's problems. It was also the hope of the researcher to find a distinct, precise, and concise (separating oranges and apples) way to tailor solutions to fit the needs of the individual employees and employers based on their leadership and learning styles; mission and vision; strategicobjectives, and goal accomplishment. A nationwide study of four hundred past and current business executives, leaders, and management participated in this study and they identified some factors that influenced their decisionmaking in their respective organisation.

This work was also aimed at showing that the establishment and implementation of a proper policy and decisions that will influence the organisation leadership and management must include a review of the existing policies, strategies and standards to ensure that leaders, managers, supervisors, and employees will continue to achieve an efficient and effective role in both performance management and goal accomplishment in the system. The best approach to lead, and manage an organisationeffectively is to understand the organisation in all its entity, and its growth, success, and goal accomplishments will be based solely on the policy, mission, and vision of the organisation. A good understanding and the establishment of sound decisions and policies are very important for organisation leadership activities and reform (3). Sound decision making in every organisation must be for leaders and managers the direct result of knowing their criteria for success, the scope of their choices, and the inherent risk of each alternative(4).

Meaning and Definition of Leadership and Decision Making According to (5), the term leadership is a word taken from the common vocabulary and incorporated into the technical vocabulary of scientific discipline without being precisely redefined. Both leadership and decision making are terms that are seriously considered to be of vital in the operations of any organisation, society, and country. These terms have been a major topic of research in both psychology, social sciences, and other disciplines for almost a century and has spawned thousands of empirical and conceptual studies. They have gained the attention of researchers worldwide and are expensive terms with many (different) meanings, definitions, and applications in which case one size does not necessarily fit all. There are almost as many definitions of leadership (and decision-making) as there are persons who have attempted to define the concept (6). Because of their importance, usefulness, and value; many people have tried define them differently to suit their situation, individual or group interests, positions, perspective, and circ*mstances while creating a pattern of meaning as well as maintaining their effectiveness in any organisational activities and practices. While the term "leadership" is associated with influence and the ability to empower, encourage, support, and help others by an individual or group of individuals to accomplish a goal; decision-making as theory is focused exclusively choice and the ability of the leader to select the best alternative from the many options (7). How to integrate the two processes has emerged as a complex and important issue in the organisational literature (8).

Below are some the ways different scholars had defined the above terms:

* Leadership is a process whereby individual influences* a group of individuals to achieve a common goal (9).

* Leadership is the process of making sense of what people are doing together so that people will understand and be committed (10).

* Leadership is the process of influencing others to understand and agree about what needs to be done and how to do it, and the process of facilitating individual and collective efforts to accomplish shared objectives(5).

* "Leadership is a process of giving purpose (meaningful direction) to collective effort, and causing willing effort to do expended to achieve purpose" (11).

* Decision making is a deliberative decisive social action, concerned with choosing what to do in the face of a problem (12,13).

* "Decision making is a choice from among two or more alternative courses of action, or objects, giving due regard to the advantages and disadvantages of supporting information about each (https://www.merriam-webster.com/dictionary/decission).

* Leadership decision making is an intendedly rational human choice leading to human action embodying the logic of consequence (March,1991).

* Decision making is a commitment to action, a discrete and concrete phenomenon driven by rationality (13).

In this study, leadership decision making (LDM) is defined as a dynamic process of choosing from the best different alternatives and associated with the systemic act of making a choice. In organisational worldwide, decision making has been a serious educational and organisational issue for many years and had continued to baffle many researchers as they look for creative and effective solution for this profound societal and organisational challenge. Therefore, to understand organisational decision making process, leadership must define what the future should look like, aligns with that vision, and inspire them to make it happen despite the challenges and obstacles involved. Leaders must know how to lead as well as manage, otherwise, without leading as well as managing effectively, today's organisations will face the threat of extinction (14). Thus, leaders and workers in every organisation should be influenced by policy and decisions while working together to attain strategic goals and objectives. Complexity and other factors or challenges had shown that there is great need for the development and implementation of proper policy by organisational. Basically, some recent studies have shown that decision making has a central role to play in developing and influencing organisation activities. These activities include healthy working environment and trust that helps in developing effective communication and openness in the relationship between employees and management; between superiors and subordinates; between trade union and management; and among workers in the workplace (15).

The Theoretical Framework of Kurt Lewin

The author used the theoretical framework of psychologist Kurt Lewin methods of leadership behavioral styles and decision-making processes in the context of this study, with the aim of using them in discovering the main factors rather than specific variables and outcomes affecting decision making among business leaders. Lewin theories of "Leadership styles and their effects" in collaboration with colleagues Lippitt and white carried out research relating to the effects of three different leadership styles on active boys' activity group in Iowa-1939. His thinking was changing to emphasize social psychological problems. These school-children were assigned to one of three groups with an authoritarian, democratic or laissez-fair leader. The childer were then led in an arts and crafts project while researchers observed the behavior of children in response to the different styles of leadership. He is well known for his term "life space" and work on group dynamics as well as T-groups. Lewin's commitment to applying psychology to the problems of society led to the development of the M.I.T Research Center for Group Dynamics - "He wanted to reach beyond the mere description of group life and to investigate the conditions and forces which bring about change or resist it" (16)

The Kurt Lewin's three leadership styles or behaviors described below, influence the leader-follower relationship, group success, group risk-taking, group problem-solving strategies styles which are namely; autocratic (authoritative), participative (democratic), and delegative (laissez-faire) are described in (Figure 1).

Figure 1: Kurt Lewin's three major leadership decision making styles.

Autocratic:

Autocratic leadership known as authoritative, is a leadership style by which leaders have absolute control over a group, make choices and all decisions in the organisation based on their own ideas and judgments and rarely accept any advice from followers.

Participative:

Participative, which is also known as democratic is a leadership style that allows and encourages members of the group to share, express their ideas, and take a more participative role in the decision-making process of the organisation.

Delegative:

Lassez-faire leadership, also known as delegative, also known as laissez-faire is a type of leadership style in which leaders by providing the tools and resources needed (with little guidance) are hands-off and allow group members to make the decisions in their organisations.

Figure 1: Kurt Lewin's three major leadership decision-making styles.

Although everyone makes decision on a daily regular basis, but the clear understanding of the role that authoritarian, democratic, and laissez-faire leadership styles play in group is vital background for all those interested in leadership, management, and the sociology of social interaction in groups and organisations.

While these decisions are made in our personal and professional lives; various factors influence leaders and managers' decisions in their individual workplace. Leaders choose their paths based on their style in figure 1 was designed to show that it is possible for both leaders and manager of any organisation to change their style, and to be trained to improve their leadership and adopt appropriate management style for their situation and context (17). Lewin is now mainly remembered as the originator of the 3-step model of change (18), and this tends often to be dismissed as outdated [19-24] yet many researchers and leaders still agree that contribution to our understanding of individual and group behavior and the role these play in organisation and society was enormous and is still relevant in leadership and management practices.

Over years, the study of organisational behavior has led to a number of useful models for decision making in many businesses. As with decision making and all other organisational issues and challenges, overcoming any kind of small deficiency can help leaders and managers become more dynamic, efficient, and successful in their organisations as well as the society. All groups (employees and employers) must be educated about the relevant needs and concerns of their company in order to produce visionary and dedicated leaders to led their businesses. For example: a business owner should start out by examining all possible alternatives when making decisions, including the option of doing nothing. Coherent awareness and knowledge in this matter should be established in order to maintain appropriate contingency model that identifies style of leadership decision making that is useful to the different situations in any working organisation (25). People associated with administration and management in companies must know that decision-making process in any organisation is somehow complicated and complex in nature.

Major Factors that Influence Leadership Decision Making in Organisations

This work continues to explore the major factors that influence decision making among organisational leaders. Studies designed to examine the positive challenges of good leadership decision making as an ongoing leadership process (9) may have application to any organisational success and goal attainment in the future. Many studies by different professions had shown that there are several important factors that may influence leadership decision making in organisations. These factors include: past experience (26), cognitive biases (27), age and individual differences belief in personal relevance (28), and an escalation of commitment as well as the influence what choices people make.

People make decisions about many things differently and under different circ*mstance or situation. For example, a decision about anew product may rest with those in product management, manufacturers, marketing research, and finance. They make political decisions; personal decision, including medical choices, romantic decision, and career decision; and financial decisions, which may include some of the other kinds of decisions and judgments. Quite often, the decision-making process is fairly specific to the decision being made. Some choices are simple and seem straightforward, while others are complex and require a multi-step approach to making the decisions (29).

Leaders and managers in any organisation should weigh all necessary option and the outcomes of their decisions while being aware that each of the decisions made either affect the organisation as a whole, shareholders or any member of the organisation. For a sound and comprehensive decision making, leaders should understand that all rational decision making processes requires a great deal of time and a valid sharing or knowledge of information. They should be able to sue the best type of leadership decision-making style described in Figure 1 to determine the systemic process to apply in any given situation as well as the people or group to be involved in the decision making process. Since leadership and management activities in organisations involve change, inspiration, motivation, and influence, management and effective leadership, both leaders and managers must then strive to focus on the process of setting and achieving the goals of their businesses through the functions of management, with reference to strategic planning, organising, directing, controlling, and goal accomplishments.

Despite the factors mentioned above as well as the ones shown in Figure 2 sometimes, some individual differences may also influence decision making. Research as postulated earlier has indicated that age, socioeconomic status, and cognitive abilities influence decision (30). For instance, anger, hatred, divorce, death, and other individual challenges and crises may add to the factors that influence leadership decision making in the workplace and other environments.

Figure 2: Major factors that influence leadership decision making in organisations...

/Education and Experience/---->/Belief and Cultural Environment/---->/Cognitive Biases/---->/Leadership Influence/---->/Politics and Policy/--->/Technology/--->/Age and Individual Difference/--->/Time and Change/--->/Communication/.

However, there are many elements and unavoidable factors that influence the leadership decision-making process in many organisation in the society, including who makes the decision and type of leadership style(Autocratic, participative, or delegative leadership style) used in making the decision. In this study, the most important factor influencing leadership in decision making is the systemic process behind decision-making as well as the ongoing complexities associated with it. These factors are mentioned in figure 2. These identified major factors are affecting the decisions leaders make in their organisations as well as increasing the wave of challenges and inconsistency among the employees in the workplace. Every organisation has the chance of being great and successful when all of the employees work toward achieving its goals. Poor leadership decision making is always associated with chaos and conflicts among working people in organisation. Since leadership is focused on the ability to influence others to accomplish a goal, the researcher believed that the quality of decision exhibited by organisation leaders is a critical determinant of organisation success. therefore a good leader must be the one who sees the whole picture rather the particular. He/She must be the one who organises the experience of the group, offers a vision of the future, as well as train followers to become leaders (25). Thus, the understanding of these factors will empower and enable leaders to be creative and effective in choosing from the best alternative when making decisions for their business as well as the establishment of a healthy working environment for everyone in their companies.

Although some studies have provided significant insight into the factors, constraints, and obstacles influencing decision making among organisational leadership and management in our society, there is still a need for more studies regarding effective leadership decision making, systemic thinking, creative, dedication, managerial communication, and accountability to enable improvements and leadership capabilities on business leaders and managers. For instance, Sunstein and Thaker (31) stated that a new general strategy for improving biased decision making has been proposed that leverages our automatic cognitive processes and turns them to our advantage (31). According to Moore and Loewenstein, some research on joint-versus-separate decision making highlight the fact that our first impulses tend to be more emotional than logical. Shiv and Fedorkihn indicated that some additional suggestive results in this domain include the findings that willpower is weakened when people are placed under extreme cobnitive( load and when they are inexperienced in a choice domain (32). In like manner, some recent research have shown that some leaders still lack the education, knowledge, quality, and leadership styles associated with sound decision making in their organisations. They either neglect or ignore decision-making processes that are aimed at improving the standard of the strategic plans, mission vision, and goal attainment of their companies. This work is designed to enable leaders and managers to make good decisions for their business as well as to accomplish their organisational goals while remedying the lack of clarity surrounding the construct of some employees. In order to help our current leaders, educate, and train future leaders, the need has been recognises for in integrative research which explicitly considers the impact of context on strategic processes (33).

Support of Literature

The study was aimed at understanding the major factors that influence leadership decision making in organisations. It shows that forms of participation are functional when a leader has the authority to make decisions; when a decision can be made without stringent time limitations; when the subordinate have the relevant knowledge to discuss and implement the decision; as well as when a leader is skilled in the use of participative techniques (34). To help identify what makes efficient leadership decision making, a nationwide study of four hundred past and current business executive, leaders, and management in the United States participated and identified some factors that influenced their decision making in their respective organisation. This work was based on the perceptions and view of the above-selected leaders in discovering the major factors that influence organisational decision making in most business across the nation. Making decisions is what leaders and managers do every day in their individual workplace. Thus, apart from individual or group outcomes, leadership decision making is at the heart of virtually all management work and a key driver of organisation outcome [35-37]. The review of related literature in this study reveals that leadership decision making in organisation has emerged as one of the most challenging, complex, and active areas of leadership and management future research. Studies of complex social systems suggest that the major reason for (organisation) failure lies in the way decision makers think about and execute the change process (38).

The literature review consists of six main sections, namely:

1- the role a leader in organisation decision making,

2- understanding the importance of decision-making process

3- factors influencing leadership decision making

4- ethics and decision-making models

5- communication in decision making

6-

The literature review enabled the author to identify a resemblance, what has been done and what needs to be investigated with regard to the topic. Understanding the process by which leaders and managers make decisions is important to understanding the decisions they make in organisation. Effective leaders and managers often provide an encouraging atmosphere to perk up the performance and efficiency of their followers Leiter and Maslach. As already stated, making decisions in organisations is what leaders and managers do every day in their respective business endeavors. While some choices in decision-making process may be seen as being simple and easy in thinking, most of the organisation decisions are complex, challenges, time-consuming and often require a multi-step approach to making the right needed decisions by leaders. Although many researchers had argued that the size of organisation can be a factor in the decisions their leaders make. For example: Fredrickson and Iaquinto agreed that large size is associated with comprehensiveness in organisation strategic decision making. More importantly, Dean and Sharfman as well as the Bradford studies (39) found no differences in strategic decision-making process that could be attributed to organizational size. For this researcher, regardless of the nature and size of the organisation, leadership decision making is always of vital importance and special significance because they affect the fate of all employees and the entire system in the organisation in one way or the other. For instance, identifying critical situations and making quality leadership decision on that regard, on behalf of the entire organisation has been recognised by both organisational and academic investigators as defining aspect of effective leadership and management processes in businesses. In his opinion, Yukl (5), identified good decision making as one of the key components of leadership and strategies in organisational management. All leaders and other decision maker in companies should understand that a leader is one who can lead a group of people to accomplish common goals in the right direction, with cost efficiency, within the time frame, and achieving the desired outcome (40).

The Role of a Leader in Organisational Decision Making

Everyday leaders make decisions. Decision making is the key role of leadership and people always associate leadership in business and politics with making good decisions and great emphasis on being the head of a group. Leaders must be effective in their organisational decision making by pulling rather than pushing; by inspiring their subordinates rather than ordering them; by enabling people to use their own initiative and experiences and actions in the organisation. It of vital importance to know that functional leadership is not usually defined by a specific set of behaviors but instead by generic responses that is prescribed for and will vary by different situations. In their view, Hackman and Walton maintained that: the emphasis switches from "what leaders should do" to "what needs to be done for effective performance"(p.77). Every organisation is a systemic whole and network that is dynamic, challenging, complex in nature, and established for the purpose of serving the common good, and goal accomplishments While no leader exists and operates outside the organisation, all organisations and need leaders to exist, and survive in all its operations. According to (14), leaders must know how to lead as well as managing effectively, today's organisation face the threat of extinction.

In the view of Glanz (41), the crux of good leadership is the ability to make thoughtful, reasoned decisions. In order to be the best judge, a leader should have critical thinking skills. They must respond quickly to situations. They must also reflect and be able to point out areas that need improvement. Good judgment in the context educational leadership requires that the leader have a firm grounding in the educational enterprise, combined with a keen sense of awareness of the complex factors that impinge on school practices. According to Northouse (9) leadership is defined as: "process whereby an individual influence a group of individuals to achieve a common goal" (p.3).For him, a leader must be willing to take responsibility and tasks, pursue goal, self-confident, exercises initiative in social situations, and willing to accept consequences in all organisational decisions.The paradigm of Northouse, which state that leadership is a process whereby an individual influences a group of individuals to achieve a common goal, clearly focused on the leadership decision making in organisations. It conceptualizes and identifies the five basic elements common to the phenomenon of leadership. These five components include the following elements, and themes that the core "consensus" components of how leadership is currently conceptualized in the view of Northouse:

1- leadership is a process

2- leadership emerges out of a reciprocal relationship of influence

3- leadership occurs in a community or group context

4- leadership involves goal attainment around shared visions

5- leadership is intentional about making real or concrete change (9).

A greater attention to the above paradigm and paradigm and five components of organisation leadership and management decisions should provide distinct into effective decision-making process in all situations. Both employers and employees should know that sometimes mistake may happen and the important decision made by intelligent, responsible people with the best information and intentions of may go wrong. For instance: the Iraq war and the meltdown of the financial markets in 2008. In such situations, effective leaders are required to acknowledge their mistakes and take the necessary steps to either repair, correct, or amend the situation. For in every organisation activity, constant, clear, and quality leadership is necessary for success [42,43]. The way leaders behave and what they choose to do will be judged ultimately by the purpose or motivation of those actions and the values that guide their leadership decisions and behaviors. Leana (44), has found that leader behavior strongly influences the number of alternative solutions proposed and discussed by group and the actual final decisions made by them. Due to the complexities associated with many organisations, leaders and managers should through sound decision making be able to influence the growth and development of their businesses by bringing in new strategic techniques, technologies, training, and development of employees, updating of policies, as well as keeping to the moral standards while maintaining the mission and vision of the organisation.

Every business and institutional leader should be held to common standards, with roles and procedures that are clear, firm, fair, and consistent while treating all involved in their company with dignity, prudent, and respect irrespective of their differences. In making good decisions and working effectively well among works in the organisations, it is necessary that leaders should be deemed as a strategic aim of the organisation (45). However, leaders must have self-confidence, plan, ahead, listen, seek correct information, be analytical, and where necessary get their subordinates involved in the decision making process while avoiding not to act in a hurry. There must be a set of steps to incorporate the above elements all business leaders ability to translate intentions into reality by aligning the energies to the organisation behind an attractive goal. As leaders, you are expected to make decisions that are in the best interest of the whole organisation. In affirmation and support of the above statement; Jacobs and Jaques (46) stated:

Executive leaders "add value" to their organisations in large part by giving a sense of understanding and purpose to the overall activities of the organisation. In excellent organisations, there almost always is a feeling that the "boss" knows what he is doing, that he has shared this information downward, that it makes sense, and that it is going to work.

Understanding the importance of decision-making process

A good understanding and the establishment of sound decision and policies are very important for leadership in all businesses. Leadership is a functional one, meaning that leadership is at the service of collective effectiveness [47-49]. People in leadership positions, be it in institutions, businesses, government, or nonprofit organisations are challenged every day with a myriad of leadership decision making in their individual company. Tese business leaders and managers are always making decision that are associated with their subordinates, policy, planning, controlling, methods, training, and compensations do so often in critical, complex, and challenging situations. Leadership decision-making is an integral part of any organisation. It involves a sequence of activities that involves leadership's courage, and evaluation, as well as "gathering, interpreting and exchanging information, creating and identifying alternative courses of action, choosing among alternatives by integrating the often differing perspective and opinions of team members; and implementing a choice and monitoring its consequences" (50). As a process of selecting from the many different alternatives, organisational leaders must consider, analyze, and evaluate the best of all different alternatives from which advantages and disadvantages are known. This particular process will help them to make good decisions and enhance the successful operation of their business.

The more skilled leaders are, the more likely they will feel confident in their abilities and competent to make good decisions. For it is only the leader that understanding the nature and principles of decision making will be able cope with complex and challenging situations more effectively than the leader who does not possess any of the ideas. For example: the leader who had the knowledge and have studied the qualities and characteristics of organisation diversity stands a better chance of making decision on team building when compared with a leader who have not. Decisions making is of vital importance in organisation because it permeates through all managerial functions and all areas of business including; recruitment, selection, job description, organising, planning, training, marketing, policy, and compensation among others. Simply put, it is the act of carrying out managerial tasks and responsibilities. According to Mumford, Zaccaro and Harding (50), problem-solving skills refer to a leader's creative ability to solve new and unusual, ill-defined organisational problems. Nahavadi (40) claims that a leader is anyone who influences individuals or group within an organisation, helps them in the establishment of goals, and guide them toward achievement of these goals, thereby enabling them to be effective.

Factors influencing leadership decision making

Organisation leadership is the plan the leaders have in place for the organisation. They organise a plan in place to establish success and accomplish goals of a company. Decisions are made in organisation daily. These decisions no matter how big or small, impact organisation in a major way. It's important for leaders to evaluate the situation before making a decision. As earlier indicated, many studies by different professions had shown that there are several important factors that may influence leadership decision making in organisations. These factors include past experience (26), cognitive biases (27), age and individual differences belief in personal relevance (28), and an escalation of commitment as well as the influence what choices people make. Understanding the factors the influence decision-making process is important to understanding what decisions are made. That is, the factors that influence the process may impact the outcome (29). In like manner, the other major factors that can influence decision making include: leadership style influence, a variety of cognitive biases, change, technology, politics, communication, economic status, market cost, and social responsibility among other factors. The above-mentioned factors can affect any organisationin one way or the other. Dietrich in discussing leadership decision making strongly agrees that age, environment, socioeconomic status, biases, past experiences are among the relevant factors that influence decision making among organisational leaders and managers.

As mentioned in Figure 1 the three major leadership behavioral styles Kurt Lewin can influence decision making in any organisation. There are namely: autocratic, participative, and delegate leadership style.

* The autocratic also known as authoritative decision making is associated with a leader having a total control and ownership in making decisions in the organisation. Here the leader makes decisions with no consultation or suggestion of ideas from his subordinates. This style works well when decisions have to be made quickly and in emergancy situations.

* The participative or democratic style is more inclusive of the group. This leadership style that allows and encourages members of the group to express their ideas, and be involved in the decision-making process of the organisation.

* The Laissez-faire otherwise known as delegate style allows the leaders to delegate the decisionmaking responsibilityto an individual or group. This style works well if the leader is surrounded by motivated, skilled and talented group of employees.

The understanding of the culture of the people of any group by a leader is an authentic way of knowing them. Morgan (52) describes culture as an active living phenomenon, through which people jointly create and recreate the world in which they live. The lack of the culture and knowledge of people in your organisation may affect your business. The people's culture is very important and what they think ought to be done in their society (53). Previous experiences can greatly affect future decisions. Juliusson Karlsson and Garling (26) also indicated that past decisions may influence the decisions people make in the future.

More recently, some researchers have stressed the importance of environment, social, and emotional influences on decisionmaking [54-56]. Fischhoff (54) emphasizes the effect that context and interpretation can have on decision-making and loewenstern "(55) stresses that visceral factors, such as sexual arousal or hunger, can greatly affect decision-making processes. Today, teams and organisationface rapid change like never before. Globalization and technology have increased the markets and opportunities for more growth and revenue. Leadership is human communication which modifies the attitudes and behaviors of others in order to meet shared goals and needs.

Ethics and decision making models

Ethics code in organisation are tool for clarifying acceptable behavior and provide guidance to managers when dealing with ethical dilemmas (57). Ethics is very important in business and each leader has an important role to play in ethical decision making in their organisations. Since ethics is defined as the philosophical study of moral behavior, of moral decision making or of how to live the good life. The expectation and common theme for any organisational leader and manager to play in ethical decision-making process in dedication, trust, fairness, acting in good faith, and transparency. It is an essential configuration of organisational leadership and management. For instance, it will be of vital importance to have a valid framework in place that would encourage leaders to analyze and make ethical decisions while helping them avoid some complexities and ethical dilemmas in the system that cannot be resolved through the application and implementation of codes of ethics. In this regard, Corey (58) suggested the following ethical decision-making model to keep both leaders and decision makers informed in decision-making process as well as in the resolution of ethical dilemmas. The model is as follows:

step 1: Identify the problem.

step 2: Identify the potential issues involved.

step 3: Review relevant ethical guidelines.

step 4: Know relevant laws and regulations.

step 5: Obtain Consultation.

step 6: Consider possible and probable courses of action.

step7: List the consequences of the probable courses of action.

step 8: Decide on what appears to be the best course of action (58).

The author strongly believed that the above model is of great significant and also maintains that there are some other ethical values that leaders can use to help them better make their decision and serve the value that is most important to them in any given situation. These ethical standards include integrity, respect, compassion, justice, prudence, temperance, and common good among other things. In order to make a decision in leadership, a thorough explanation requires appealing to a rule, using a theory, and applying a value. This value simply defined is a single word or phrase that identifies something as being desirable for human beings. Values are those goods that our theories, rules, and decisions work to bring about about in the world. They (values) are acted on and applied on by theories and then rules (59). In simple terms, values are not a high-minded code based on personal or company ethics, they are a proposal for creating a work environment that drives accomplishment. Values offer people a framework for their decision, broad limitations for their ideas, and moreindependence to make a change. In this perspective, Despain (60) postulated that values is defined as shared beliefs with standards for behavior in the workplace, are the key succeeding in changing and challenging times.

Leaders and managers must have guidelines about what decisions are moral because we have identified certain things as being good, which these decisions seek to uphold.

Organisational leaders must possess the following qualities both in leading and decision making in their business:

* Being true to one's basic moral values.

* Involves honesty, promise-keeping, loyalty, dependability, and consistency.

* Uphold the dignity of persons; treating them as an ends and not as the means.

* Have concern for the suffering of others and willing to help out.

* Acting on one's professional duties and obligations.

* Able to perform good for people and avoiding harm.

The above principles suggest that leaders must endeavor to do the right thing in their decisions their subordinates depends to an extraordinary degree on the expressed values of the leader and believe to success by following the leadership decisions. Adherence to ethical standards both in leadership and decision making process must be a foundation of all organisational rules and policies. Macintyre (61) affirmed that virtue is an acquired human quality, the possession, and exercise of which enables us to achieve those goods which are internal to practices, and the lack of which prevents us from achieving any such goods. Leadership decision making is about others and not self. It is about trust and not about power. It is about creating results by generating cultures where people know it is okay to be unique and unlike others, so they freely take off their fronts, express themselves, and do great things. Looking within ourselves and modeling how we think through our own personal and professional ethical code helps shape our teaching and reconfirms what we are teaching in the classroom (62).

Communication in decision making

A good understanding and the establishment of a valid communication and decision making are of such significance to leaders and managers in the creation of clear policies in all their individual organisations and businesses. While leadership is a functional one, meaning that leadership is at the service of collective effectiveness [47-49] communication in the other hand is arguably one of the single most important aspects of organisational management tool. Communication is the primary function of any effective leader in an organisation. In any business operations, valid, effective and share communication are great importance to the leaders and managers of every organization. Although organisational leadership has become increasingly complex in both purpose and structure and therefore requires suitable methods of leadership decision systemic styles to address this challenge. One of these suitable centers on effective communication and provision of good working environment.

Communication is one most essential skill that contributes to any successful business. While some of the importance roles of effective leadership in present-day business improvement have been stressed, there is a continuing global debate about the leadership decision making approaches that are most beneficial to maintainable major organisational improvement. It is also useful to be aware that, in today's society, organisational leadership, decision-making, growth, effective management, and organisational success are based on the quality of the decisions policymakers or make Ejimabo (3). Thus, the establishment of appropriate approach, ways of improving communications, and quality of decision making in any organisations must include the following elements by organisational leaders:

* Appropriate channel for all communications

* Awareness of how perception, culture, channel, and language can create

* Provide a valid working relationship and climate

* Encourage feedback

* Mutual respect and trust

* Promote dialogue and group consensus

* Listen effectively

* Be clear with words used as intended meaning may be misinterpreted

* Be aware of the culture and diverse nature of the employees

Leadership is all about getting people to work together to make things happen that might not otherwise occur prevent that which ordinarily would take place. Leadership must cultivate a meaningful relationship in all businesses that requires clear, honest, and reciprocal communication. Leadership position involves motivating others and one way to accomplish this is through a process of sharing information in the system decision making. It is believed that in organisations, leaders have a moral responsibility to take care of their followers and help them develop their personal cares, to be a consultant for followers' personal problems (63). They must decide on their values and set goals to ensure a fruitful decision-making process. Therefore, before making a final decision or taking any course of action, leaders must discover or create a set of alternative courses of action and gather information with which to make a decision, they must apply information for each course of action to predict the outcomes of each possible alternative and make a decision for implementation (64).

Communication is both complex, irreversible (it is difficult to take back messages that have been sent), and it involves more than just one person sending a message to another. Instead, communication can be seen as the primary defining characteristic of every leader that involves the negotiation of shared interpretations and understanding in the entire organisation. Leaders need followers and followers need leaders in order to accomplish the desired goals and outcomes [65-68] in their individual organisations.

Research Questions

The purpose of this study was aimed at understanding the major factors that influence leadership decision making in organisations. It was focused on identifying what makes for efficient leadership decision making in businesses from the perceptions and views of a nationwide study of four hundred past and current business executives, leaders, and management in the United States. Decision-making about facing a question, to be the one you to be or not to be.

The research questions were:

1- How can quality and sound leadership decision-making process be improved in major organisation operations?

2- What factors facilitate the implementation of a successful decision-making process among leaders in organisation?

3- What are the best processes of uncovering strategies to fend off decision-making errors in any organisation?

The researcher believed that the answers generated from the above and other related questions that have emerged in the course of this study may provide meaningful useful insights to organisational leaders and managers in their decision making processes. Organisational decisions are at the heart of leader triumph, and at times there are critical moments when they can be difficult, confounding, and terrifying. However, the bravest decisions are safest.

Methodology

The author used the qualitative critical ethnography paradigm in this study to understand the major factors that influence leadership decision making in organisations. The qualitative method places emphasis on understanding through observation, careful documentation, and thoughtful analysis of people's words, actions, and records Creswell (69). This methodology was based on the experience of the researcher and selected participants with the aim of identifying what makes for efficient leadership decision making in organisations. Although the design of a particular business program in San Antonio, Texas and the background and experiences of the investigator set the context of this research. It is important to note that the design and some of the organisational activities in Texas offered the researcher a unique opportunity to effectively examine the role of leader's behavioral styles with reference to leadership activities and decision making in the sittings.

The principal concern in all aspects of this study was to reach some relevant understanding of the major factors that influence sound decision making among leadership and management in businesses as well as discover an avenue of better solutions to the challenges and complexities associated with decision making in organisations. In this regard, a nationwide data was randomly collected from four hundred past and current business executive, leaders, and management in some cities and states of the United States. This study was confined to full-time organisational leaders, managers with at least seven year's experience in leadership decision making and other leadership activities. With this process, the authoand r was able to gather, not only useful, relevant, and meaningful information, but more importantly, the ability to employ a distinct and analytical techniques in this effort discovering the major factor that influences leadership decision making in organisations. These made interpretation and understanding of the phenomenon in its context and even beyond, more viable (70).

In this study, the researcher resorted to critical ethnographic design in this study in order to gain-depth knowledge and authentic understanding of the issues and problems associated with leadership decision making in businesses. The author was disposed to discovering a pattern of meaning the natural and cultural setting, was interested in the process rather than outcomes, in the context rather the specific variables, and in discovering rather than confirmation (71). In the view of Denzin and Lincoln, a research design is defined as "a basic set of beliefs that guide action" dealing with first principles, ultimate or the researcher's worldviews. The critical ethnographic design was selected in this study because it is seen by many scholars as one of the most effective means of doing comprehensive, systemic, and authentic research. It is also a research method that is located in the practice of both sociologist and anthropologists, and which should be regarded as the product of a co*cktail of methodologies that share the assumption that personal engagement with the subject is the key to understanding a particular culture or social setting. Participants' observation is the most common component of this co*cktail, but interviews, conversational and discourse analysis, documentary analysis, film and photography, life histories all have their place in the ethnographer's repertoire. Description resides at the core of ethnography, and however, the description is constructed it is the intense meaning of social life from the everyday perspective of group members that is sought (72).

Based on the researcher's judgment and the purpose of the research Babbie, Greig and Schwandt [73-75] and in looking for those who "have had experience relating to the phenomenon to be researched " Kruger (76), the key participants were limited to the perceptions, experiences and views of 4 hundred past and current business executives, leaders, and managements from some cities and states in the United States. The participants were randomly selected from different cities and states in the country. They consist of 4 hundred full-time organisationalleaders and managers with at least seven years' experience in leadership decision making and other leadership activities, three hundred men, and one hundred women, with an average age of 55. They also had bachelor degree as their minimum education level, although55% of them have master's degree in their professions. The informed consent agreement from and the purpose of the research study were explained to the participants at the beginning of each interview (3).

To achieve these objectives, this study was based upon a qualitative method, duplicating the self-design survey questionnaire developed from research questions and discussions from the focus group interviews.

The (quantitative) survey data were collected only as a response to the questionnaire and used to support the qualitative data only in the study. It took about 17 months of intensive fieldwork to be designed and executed and used can be characterized as a multi-method, in-depth research (77). The data collection include:

1- individual and semi-structured interview with the selected participants forming twelve groups of different individual leaders

2- selected leaders and managers useful responses to the research questions

3- survey data which was collected as a response to the questionnaire and used support qualitative data

4- examining the leadership literatures over the past 12 years

5- supplementary information from archives with reference to internal documents and reports.

All selected individuals and each group participated in two separate interviews to avoid responses being filtered only in the single ideas of a particular interviewee. Here, the investigator chose the researcher's role as an active listener and collaborator "to tell the story from the participants' view rather than as 'expert' who passes judgment on the participants" (78).

According to Creswell, data analysis employed a concurrent nested model. The study followed a sequence of distinct steps in order to secure the reliability of the data based on participant's recall. The qualitative data analysis, which is primarily inductive and recursive process, were analyzed and organised into categories in order to identify themes or patterns as these facilitated a deeper knowledge and understanding of the major factors that influence leadership decision making in businesses. The questionnaire and final survey revisions were made to support and improve the content and process of the data collections, both incorporated qualitative and survey (quantitative) items. Thus, the survey (quantitative) data was systematically organised, analyzed and given a basic descriptive statistical treatment in the study. A follow-up research was conducted by implementing focused interviews of both the selected past and current leaders and managers in different organisation to corroborate the data from the final survey and identify additional variables. The author allowed the selected participants to serve as a check to the study to ensure immediate validation as to the accuracy communication between the researcher and the selected participants added to the confidence and VALIDITY of the interview transcripts.

The Influence of Decision Making in Organisation Leadership and Management Activities (2024)

FAQs

What is the influence of decision-making in leadership? ›

Leaders make clear, consistent decisions and ensure everyone works towards common goals and objectives. Their decisions help in creating alignment and coherence within the organization. In today's dynamic business environment, leaders must be able to adapt quickly to changing circ*mstances and emerging trends.

What are the influences on decision-making in an organization? ›

The managers identified the resources held by the company, its business objective and the economic account as the most important economic factors influencing the decision- making process. Leadership style and organizational structure have the most influence over the efficiency of decision making.

What is the importance of decision-making in organization and management? ›

Decision-making is perhaps the most important component of a manager's activities. It plays the most important role in the planning process. When the managers plan, they decide on many matters as what goals their organisation will pursue, what resources they will use, and who will perform each required task.

What are the factors that influence decision-making in management? ›

Factors Influencing Management Decision-Making

Organizational Structure: The hierarchy, division of labor, and communication channels affect how decisions are made and implemented. Resources: The availability of financial, human, and technological resources can limit or expand decision-making options.

What are the five elements that influence decision-making in an organization? ›

The process of making decisions in organizations is determined by various factors: economic, social, organizational, personal and psychological.

Why is decision-making important for leaders? ›

By making well-informed decisions, they can effectively solve problems and overcome obstacles that arise. Risk Management: Decision-making involves assessing risks and opportunities. Effective leaders weigh potential outcomes, make calculated choices and manage risks to ensure the organization's stability and growth.

What are the 5 influences on decision-making? ›

The external environment, including political, environmental, social, technological, legal and ethical factors, as well as competition, must be considered when decisions are being made.

What is the most important influence on managerial decision-making? ›

The most important factor influencing the decision-making process is the personality of the manager. The manager's family background, education, and information can be considered as sub-bases that constitute the personal factor in the decision-making process.

How can you influence decision-making? ›

To effectively influence decision-makers, you must present your ideas, solutions, or recommendations in a way that appeals to their logic, emotions, and values. To do this, it is important to establish your credibility by demonstrating your expertise, experience, and achievements in your field.

What is an example of decision-making in management? ›

For example, a business manager may decide to invest in marketing to attract new customers. This decision could involve analyzing the costs, benefits, and risks involved with each possible course of action and choosing the best course of action for the organization.

How does effective decision-making contribute to organizational performance? ›

Effective decision-making can immensely impact organizational performance. By developing your decision-making skills, you can exercise sound judgment and guide your team through the appropriate frameworks and processes—resulting in more data-driven decisions.

What is the decision-making process in an organization? ›

Decision making is the process of making choices by identifying a decision, gathering information, and assessing alternative resolutions. Using a step-by-step decision-making process can help you make more deliberate, thoughtful decisions by organizing relevant information and defining alternatives.

How does leadership influence decision-making in management? ›

In servant leadership, the leader focuses on the needs of the team. They listen actively to their input and empower them to make decisions. When team members feel heard, valued, and included in decision-making, they become engaged, motivated, and committed to the team's goals.

What is a real life example of decision-making? ›

Some examples of how we demonstrate our decision-making skills in our daily lives include choosing what to eat for breakfast, deciding which route to take to work, and determining how to prioritize tasks.

What are the three major influences on decision-making? ›

The three major influences on the consumer's decision-making processes are Situational influences, Psychological influences, and social influences. Psychological influences partly determine people's general behavior and thus influence their behavior as consumers.

What are the influences on decision-making? ›

DECISION MAKING DRIVERS

Human decision-making emerges from the confluence of multiple factors – environmental, situational, experience, education, personality and much more.

What is the most important factors that may influence the decision-making of a leader? ›

These include: Leadership qualities; the culture, the leader belongs to; Environment where the decision is made: certainty, risk and uncertainty; Time and related factors. There are several styles of management decisions.

Why is being decisive important in leadership? ›

Decisive leaders seek out the appropriate information they need to make good decisions. In addition, they show an understanding of the knowledge held by their direct reports, colleagues, and leaders. This helps them gather information from these resources before making a final decision.

What is the decision-making theory of leadership? ›

Decision-Making Theory – effective leaders size up situations, assess them, then determine how much support the group will give towards the effort and adjusting their leadership style to fit.

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