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Decision-making?
It’s not the only job of a manager. In fact, according
to management guru Peter Drucker, managers do not
generally spend a great deal of time making decisions.
But
decision-making is a specific managerial task and the
one that has the most far-reaching consequences attached
to it. When a manager makes a “good” decision, it
often seems that few people ever notice. But when a
manager makes a “bad” decision, it may be remembered
for years to come. Therefore, it is imperative that
managers recognize the mistakes to avoid in
decision-making. Eight of the most common errors are
described here.
Mistake
No. 1: Failure to Recognize a Problem. Frequently
managers operate on a frantic day-to-day basis without
realizing that a problem exists. These managers
complain, but seem resigned to the fact that things are
the way they are because of the “system” and someone
else must take the necessary positive action to change
anything that may be wrong. When this happens, managers
are abdicating their managerial responsibilities.
Anytime that schedules are presenting obstacles or
operations are not running according to plan, a manager
should suspect that a problem exists. It is incumbent
upon the manager to take action to aid in resolution of
the problem. Managers, so it appears, frequently pass
off problem-recognition responsibility because of lack
of experience or because of the attitude that to
recognize a problem carries with it the obligation to do
something about the situation. Therefore, no recognition
equates to no responsibility for solving the problem.
You can put your head in the sand.
Mistake
No. 2: Incorrect Problem Identification. Proper
identification of the problem is the next step in
effective decision-making. This step is also a most
difficult one because symptoms are often mistaken for
the real problem and effects are often confused with
causes.
Symptoms
and effects are mistaken for the problem because, as a
rule, they are more obvious. Managers attack the obvious
irritations not only because they are apparent, but also
because of the environmental pressures within which
decisions are made. Since managers function within a
very dynamic environment, time always seems to be one of
their chief adversaries. Thus, the obvious offers less
resistance. Other factors aiding in mistaken problem
identification are inaccurate perception of the
situation, lack of experience and lack of skill in
decision-making.
Any
decision that fails to deal with the real problem or
does not address the source of difficulty is, in effect,
a bad decision because it will most likely produce an
unsatisfactory solution. It will also result in further
decisions having to be made to solve the problem.
Mistake
No. 3: Insufficient Consideration of Alternatives.
For any problem that confronts a manager there are
probably at least three and maybe as many as six
alternative solutions. Failure to think through the
alternatives exposes a manager to the risk of
overlooking a sound, practical decision. Thinking
through alternatives means not only expanding one’s
mind to generate ideas — thinking outside the box —
but also considering the possible repercussions that may
come about by selecting each alternative — the
unsought consequences of a course of action.
Decision-making
requires careful thought, as well as investigation
beyond the obvious. Reasons for not thinking through
alternatives range from the pressures of time to
misperceptions on the part of the decision-maker.
Decisions,
when alternatives are not carefully considered, will not
be as effective as they should be and, more than likely,
will result in someone else having to make another
decision at a later time.
Mistake
No. 4: Inadequate Evaluation of Risk. Every decision
should be evaluated in terms of costs and benefits or in
terms of the risks involved and the results to be
obtained. Failure to do so often produces high-cost,
complex solutions where the payoff is minimal.
In
considering the aspect of cost versus benefit, a manager
has several methods available to handle risk so that the
most effective decision is made for a particular
situation. These methods include avoiding the risk by
seeking lower-risk solutions, reducing it by training
employees, or insuring against it through insurance or
hedging. If the decision maker evaluates risk
systematically, a more educated or calculated manner of
handling the decision will follow.
Mistake
No. 5: Repetitive Decisions. ‰ Page 68 From Page
66 Many managers handle the same problem over and over,
making decisions in each instance on a case-by-case
basis. Recurring problems can be more efficiently and
effectively resolved through the development of
policies, procedures, rules, regulations and the like.
If a manager lacks authority to initiate standing plans
of this nature, he or she should refer the recurrent
problem to those who can develop such solutions.
Situations that cause recurring problems will not, in
most cases, just go away. Thus, continuing to treat the
problem on a case-by-case basis is ineffective and
inefficient management.
Mistake
No. 6: Unnecessary Decisions. “Fools rush in where
angels fear to tread” is an old saying with sound
advice for decision-makers. Occasionally the problem
confronting a manager is of such a nature that the best
action is to do nothing, to simply watch and wait. While
few problem situations are likely to improve on their
own, there is always the possibility that they will not
deteriorate any further, either. To take action in such
a case may only subject a manager to unnecessary risk
— risk that could be avoided through an “action in
inaction” strategy. Because every decision entails
risk, it is important for a manager to know when to take
risk and when to sidestep it. But when the no-action
approach is used, a manager must continue to observe the
situation and take action if further developments merit
it.
Mistake
No. 7: Delayed Decisions. There is no evidence to
support the contention that decisions improve with age,
that the longer a decision is put off, the higher the
quality of the eventual decision will be. On the other
hand, fast decisions — not snap decisions — have at
least two advantages. First, an expeditious decision
gives a manager more time to correct a situation, should
the original decision prove to be the wrong decision.
Second, a quick decision allows a manager to move on to
other areas requiring his or her attention.
Mistake
No. 8: Lack of Follow-up. You have to follow through
on every decision implementation to see if the decision
is actually producing the result expected. Not every
decision is going to be as effective as you hoped. A
manager must always monitor the situation for awhile to
determine if things are working according to plan.
Many
times decision-makers are so relieved to have made a
decision that they wish to forget it and go on to other
things; they neglect effective follow-through.
Although
decision-making is not the only job of a manager, it is
an important task and most certainly one for which a
manager will be long remembered should he or she “blow
it.” Praise seems to be rarely accorded to the manager
who renders an effective decision. Perhaps that is
because a manager is paid to make good decisions.
Bad
decisions, on the other hand, may live forever. If you
are a manager on the way up, you really don’t want
that kind of fame on your record. |
