MGMT601 - Decision Making in Leadership: Report Analysis

This report delves into the critical role of decision-making in leadership, analyzing various models and their impact on organizational effectiveness. It begins by introducing the significance of decision-making as a core leadership function, emphasizing the need for informed choices among multiple alternatives. The report then explores different decision-making models, including the rational decision-making model, administrative man model, and retrospective decision-making, highlighting their strengths and weaknesses. The rational decision-making model is selected as the most suitable for leadership, detailing its eight-step process from problem identification to evaluation. The report further examines the link between decision-making models and leadership effectiveness, focusing on how leaders can leverage rational decision-making to enhance their credibility, improve organizational performance, and make logical decisions. The report concludes with recommendations for leaders to adopt the rational decision-making model, evaluate alternatives, and foster inclusive practices to achieve effective leadership. The report uses APA style and includes citations and references, demonstrating good writing, research, and analytical skills.

RUNNING HEAD: DECISION MAKING IN LEADERSHIP 0
2020
Decision Making in Leadership
Student’s details-

DECISION MAKING IN LEADERSHIP 1
Contents
Introduction................................................................................................................................2
Main Decision-Making Models.................................................................................................2
Rational Decision-Making Model..........................................................................................3
Decision-Making Model and Leadership Effectiveness............................................................4
Recommendation........................................................................................................................5
Conclusion..................................................................................................................................6
References..................................................................................................................................7

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Introduction
Decision making has been a crucial part of leadership that attempts to select the most
suitable outcome from amongst the several alternatives. Decision making is considered as the
ongoing process of determining the solution for a problem which is beneficial for the
organization (Reem, Kitsantas, & Maddox, 2014). Moreover, it is important for the leaders to
have the decision-making skills in order to make informed choices from amongst the number
of choices. Here, the report is based on the selection of decision-making model to be used by
the leader in order to make the effective decision within the organization. The report has
considered the description of one decision making model and the way it can be linked with
the effectiveness in leadership. Finally, recommendations are given for solution of the
problems identified.
Main Decision-Making Models
Decision-making is important aspect of making the appropriate choice and can
ultimately influence the entire organization within which the decision is made. Decision-
making models define the approaches of the decision maker into certain situations (Gati,
Levin, & Landman-Tal, 2019). First decision making model is the rational decision-making
model in which the decision maker is totally rational and uses the relevant information for
making the effective decision. According to this model which is based on the classical
approach of decision making that follows various steps for making a good decision. As per
this model, decision is made after the evaluation of certain factors of decision and the
evaluation of the problem that can reflect the standards for the decisions taken (Cascetta,
Cartenì, Pagliara, & Montanino, 2015). This approach is used to find out the optimal decision
which are being undertaken after the weighing of certain decision-making criteria and making
the effective decision by following the process that will lead the decision maker to take the
optimal decision.
Second model of decision-making is the administrative man model or bounded
rationality model that ignores the rationality of human decision regarding the problems. The
decision maker under this model need to make the decision through the weighing of limited
number of alternatives from which the decision maker makes the effective decision (Dhami,
al-Nowaihi, & Sunstein, 2019). As per this model, the person can make the decision through
the cognitive ability and the time constraints in which the better understanding of the actual

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process of decision-making. Bounded rationality in the decision making can attain the
suitable outcome which is limited to the information and the mental capabilities of the
decision maker. In this approach, satisficing decision is made in which the person strives to
choose the satisfactory result with the minimum push. Specifically, the decision maker
accepts the very first alternative that meets the minimum requirements of the decision.
Further, there is model of retrospective decision-making that elaborates the tendency
of the decision maker to be irrational and also biased under the decision making. The decision
maker considers the decision which is best suited as per the situation and undertaking of non-
programmed decision (Joseph & Gaba, 2020). This is implicit favourite decision-making
model that evaluates best alternative with every other alternative by making the comparison
of the possible strengths and weaknesses of the decision. This models specifically an
effective approach as it is undertaken through the choosing the best option for the give
problem. In this model, the decision maker makes appropriate evaluation of the additional
alternatives and quickly more efficiently find out the best solution through giving proper
justification of the decision taken (Tyran, et al., 2018). Also, the decision uses the intuition
rather than the rational thoughts for the rationalization of the solution. After the determination
of various models of decision making, the best model that can be used is rational decision-
making model.
Rational Decision-Making Model
Rational decision-making model is best model for the undertaking of the suitable
decision as per the circumstances. The components of the model include the eight steps that
are used for the decision-making process. Firstly, it includes the identification of the problem
and establish the criteria on the basis of decision will be made. Further, weighing criteria will
be evaluated and measured as against the criteria (Li, Ashkanasy, & Ahlstrom, 2014). The
next step in the rational decision-making process is the generation of several alternatives
which might be the possible solutions for the decision. Furthermore, the alternatives are
measured on the basis of the criteria set by the decision for the evaluation of the decision. The
decision maker then evaluates and chooses the best decision that best suits to the requirement
of the situation. The decision is then implemented in order to make the optimal output and
reach to the effective decision (Calabretta, Gemser, & Wijnberg, 2017). Lastly, a rational
decision maker evaluates the decision in order find out the effectiveness of the decision and
also making effective approaches for the further planning.

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This model is effective as it allows the decision make to make the logical decision as
per the problem of the decision maker. It is the effective amongst all the other decision-
making models as it clarifies the objectives and the problems more clearly. This allows the
individual to make the rational outcome as the decision maker is very well aware of the
alternatives and has the idea of the consequences which precisely avoids the biasness into the
decision making (Koechlin, 2020). Further, the decision maker can make the anticipation of
future and present circumstances and a good search of all the possible alternatives.
This model has an effective approach that the individual must undertake on the basis
of the situation. For example, when the manager within the company faces a conflict solution
which is the problem for the manager can be resolved by the rational thinking of the manager.
By the help of this model, the manager can make the rational choices by looking for various
options and also making the rational choices which are free from bias and can promote the
effectiveness of the decision and often can solve the conflict. Another example can be seen
from the situation in which the manager faces the decision-making problem regarding the
changes to be brought up into the organization. This problem can be solved through the
rational approach in which the manager can make the decision through the logical approach
and determination of present and future circumstances (Gati, Levin, & Landman-Tal, 2019).
Thus, rational model of decision making is effective and can be applied in the maintaining of
leadership effectiveness.
Decision-Making Model and Leadership Effectiveness
Decision-making is considered as the important part of leadership in which the leader
is expected to make the right decision on the basis of various alternatives to be evaluated for
getting the favourable outcome. Leaders make the decision on the basis of the intuition,
beliefs and required knowledge which is to be applied for getting the result (Hoyt & Price,
2015). It can be noted that the rational decision making is effective for the leadership
effectiveness in which the leader needs to be logical and make the decision on the basis of the
rational thinking of the leader. Leaders need to make the effective decision in the sense that
the leaders are expected to make the informed decision about the operations of the business.
Moreover, a leader is expected to have the necessary skills and competencies for the making
of the desirable decisions (Cianci, Hannah, Roberts, & Tsakumis, 2014). Further, the leader
provides the customer satisfaction and best quality of the results on the capabilities of the
leader on the concentration of the consumers.

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Furthermore, the leader needs to make the rational decision for the actualization of the
objectives of the organization. Moreover, the leaders can effectively use the rational model of
decision-making by interpreting and understanding of the decision in which the leader can
improve the credibility and the performance of the organization. Further, the leader’s
cognitive ability can be used for the logical process for the making of the decision for the
future development (Calabretta, Gemser, & Wijnberg, 2017). Also, the leaders will use the
probable solution for the tackling of the technical and procedural aspect of business. This
rational model of decision-making can be used for the leadership effectiveness in which the
leader can use this model for the making of the rational and logical decision. The leaders can
use this model through the weighing of the decision-making criteria and also making of the
precise choice by evaluating of several alternatives (Riaz & Khalili, 2014). The rational
decision-making is important for the leadership effectiveness in which the leader can make
the concise decision through the avoidance of the errors and reduces the risk and uncertainties
through the blending of discipline and logics.
The situational analysis of the application of the rational decision making under the
leadership practice can be seen from the fact that the leader’s approaches in terms of making
of the logical decision. For example, when the leader within the organization wants to share
the roles and responsibilities within the team members which are working on the particular
project. The leader faces the decision-making problem in which the leader has to decide upon
the nature and type of work to be allocated to each employee as per their level of expertise.
This can be the decision-making problem which can be resolved through the rational thinking
of the leader. Further, one more example can be observed from the decision-making problem
faced by the leader in which the leader creates a change into the organization. The decision of
the leader greatly depends upon the nature of employees, resistance of change, new
alterations and the money which is needed to be spent for the change (Uzonwanne, 2016).
These are the factors that are carefully be evaluated by the leader while making the desired
decision. These factors are examined in order to improve the effectiveness of the decision.
Recommendation
From the above analysis, it can be recommended that the leaders should make the
decision by the prior evaluation and examination of certain factors which will lead to the
effective solution to a given problem. Further, the capability to solve a specific problem
depends upon the decision-making skills of the leaders which enables them to make the right

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choice (D’Aunno, Alexander, & Jiang, 2017). From amongst all the models of decision-
making, leaders are expected to choose the rational decision-making model that will enable
the leaders to make the concise and logical decision. The leaders should rely on the rational
decision-making model in which the leaders make the decisions which have the possibility to
get the long-term positive outcome. Further, leaders should be aware about their strengths
and skills and they must evaluate every alternative to get the aptness of the decision and also
making the accurate choices. Not only alternatives, leaders should motivate their employees
and team members through undertaking inclusive practices into the decision-making process.
Moreover, leaders should make the systematic and logical step for the solving of the problem
and attain the effectiveness in the leaderships which can be beneficial for the employees and
the teams.
Conclusion
To conclude, it can be said that the leaders play a significant role in the decision-
making process and they are expected to make their best decisions as per their capabilities.
Further, the leader’s rational decision-making and cognitive skills can be helpful in the
attaining of the effectiveness in the leadership capabilities. The decisions of the leaders are
based on various factors that can avail the leaders a correct path to reach the desired outcome
after the evaluation of various factors. Here, the report is made on the evaluation of various
decision-making models and selecting one leadership model that will fit to the leadership
effectiveness. It has considered the rational decision-making model which can be used for the
effectiveness of the leadership capability.

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References
Calabretta, G., Gemser, G., & Wijnberg, N. (2017). The interplay between intuition and
rationality in strategic decision making: A paradox perspective. Organization Studies,
38(3-4), 365-401.
Cascetta, E., Cartenì, A., Pagliara, F., & Montanino, M. (2015). A new look at planning and
designing transportation systems: A decision-making model based on cognitive
rationality, stakeholder engagement and quantitative methods. Transport policy, 38,
27-39.
Cianci, A., Hannah, S., Roberts, R., & Tsakumis, G. (2014). The effects of authentic
leadership on followers' ethical decision-making in the face of temptation: An
experimental study. The Leadership Quarterly, 25(3), 581-594.
D’Aunno, T., Alexander, J., & Jiang, L. (2017). Creating value for participants in
multistakeholder alliances: The shifting importance of leadership and collaborative
decision-making over time. Health care management review, 42(2), 100-111.
Dhami, S., al-Nowaihi, A., & Sunstein, C. (2019). Heuristics and Public Policy: Decision-
making Under Bounded Rationality. Studies in Microeconomics, 7(1), 7-58.
Gati, I., Levin, N., & Landman-Tal, S. (2019). Decision-making models and career guidance.
In International handbook of career guidance (pp. 115-145). Springer.
Hoyt, C., & Price, T. (2015). Ethical decision making and leadership: Merging social role and
self-construal perspectives. Journal of Business Ethics, 126(4), 531-539.
Joseph, J., & Gaba, V. (2020). Organizational Structure, Information Processing, and
Decision-Making: A Retrospective and Road Map for Research. Academy of
Management Annals, 14(1), 267-302.
Koechlin, E. (2020). Human decision-making beyond the rational decision theory. Trends in
cognitive sciences, 24(1), 4-6.
Li, Y., Ashkanasy, N., & Ahlstrom, D. (2014). The rationality of emotions: A hybrid process
model of decision-making under uncertainty. Asia Pacific Journal of Management,
31(1), 293-308.

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Reem, A., Kitsantas, P., & Maddox, P. (2014). The impact of residency programs on new
nurse graduates' clinical decision-making and leadership skills: A systematic review.
Nurse Education Today, 34(6), 1024-1028.
Riaz, M., & Khalili, M. (2014). Transformational, transactional leadership and rational
decision making in services providing organizations: Moderating role of knowledge
management processes. Pakistan Journal of Commerce and Social Sciences (PJCSS),
8(2), 355-364.
Tyran, M., Jiang, N., Cao, M., Raldow, A., Lamb, J., Low, D., & Lee, P. (2018).
Retrospective evaluation of decision-making for pancreatic stereotactic MR-guided
adaptive radiotherapy. Radiotherapy and Oncology, 129(2), 319-325.
Uzonwanne, F. (2016). Influence of age and gender on decision-making models and
leadership styles of non-profit executives in Texas, USA. International Journal of
Organizational Analysis.