Effective Decision Making in Leadership: A Comprehensive Report

This report delves into the critical role of decision-making in contemporary leadership, particularly within the context of the 21st century's dynamic business environment. It presents a business report designed to be shared with executives, focusing on the Vroom-Yetton Decision Model as a key framework for understanding and implementing effective decision-making processes. The report explores various decision-making models, such as rational, intuitive, and creative approaches, and analyzes their impact on leadership effectiveness. It emphasizes the connection between the Vroom-Yetton model and successful leadership, discussing its stages, benefits, and limitations. The analysis includes research questions to guide leaders in selecting appropriate decision styles and concludes with recommendations for adapting and applying decision models to optimize outcomes in a collaborative environment. The report highlights the importance of leaders being adaptive and mastering appropriate decision-making models to stay competitive.

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Decision Making In Leadership
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Abstract
The purpose of the report is to show how decision-making affects leadership in the 21st century.
It explains the business report on decision making in leadership, which can be shared by the
leader at the executive meetings. The decision-making process is explained using the “Vroom-
Yetton Decision Model”. The various decision-making models are explained that can be adopted
by the leaders to influence decisions in the organization. The connection between the Vroom-
Yetton Decision Model and leadership effectiveness is explained in the report, which also
included various stages of the model, including the benefits and downfalls of adopting the model.
It can be concluded from the discussion that to become an effective decision-maker, a leader
should be able to adapt and apply the appropriate decision models in the organization, and
practising it frequently to become the master of it. As managerial leaders are, in today's
competitive world, the need of every growing organization and adopting the collaborative style
of decision making and treating each preposition as unique, the leader can optimize the chances
for a positive outcome.

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Table of Contents
Introduction......................................................................................................................................3
Discussion........................................................................................................................................3
How decision-making affects leadership in the 21st century?.....................................................3
Various decision-making models that affect leadership:-...............................................................4
1. Rational decision-making model...................................................................................4
2. Intuitive decision-making model..........................................................................................4
3. Creative decision-making model...................................................................................5
4. Recognition- primed decision-making model...............................................................5
5. Vroom-Yetton-Jago Decision Model............................................................................5
6. The OODA loop model.................................................................................................5
7. The recognition- primed model.....................................................................................5
8. The ladder of inference..................................................................................................6
9. Paired comparison analysis model................................................................................6
Decision making in leadership through the use of the Vroom-Yetton-Jago Decision Model........6
Decision quality...........................................................................................................................6
The commitment of the team.......................................................................................................7
Time constraints...........................................................................................................................7

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The connection between the Vroom-Yetton-Jago Decision Model and leadership effectiveness. .8
Benefits of the models in leadership............................................................................................9
Research questions to determine the correct decision style for the leaders in the organization10
Limitations of the model............................................................................................................10
Conclusion and Recommendation.................................................................................................11
References......................................................................................................................................13

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Introduction
The leadership in decision-making is an effective tool in most business operations today.
The existence and the existence of any business depend on its leaders and their capability to
make decisions that affect every individual at all levels of the organization (Dipboye & Dipboye,
2018). An effective leader should be aware of all the pros and cons of the decision involved in
the business and the leaders must know what decisions should be taken to preserve the interests
of the stakeholders. Every organization needs leaders who should know how to manage activities
through effective decision-making ability to make the organization sustain and competitive
advantage. The purpose of the report is to show how decision-making affects leadership in the
21st century. It explains the business report on decision making in leadership, which can be
shared by the leader at the executive meetings. The decision-making procedure is explained
using the “Vroom- Yetton Decision Model”.
Discussion
How decision-making affects leadership in the 21st century?
Due to globalization, technological changes and other factors have made successful
companies change their leadership and decision-making styles to be in the competitive market. In
slower organizations, where the traditional model was followed, does not work anymore in the
organizations. However, in today's business organizations, the leaders have become more
adaptive to different decision-making styles to cope up with the current scenario of the
organization. For example, a digital marketing agency has to grow rapidly and adapt the
technological changes to broaden the competitive landscape (Rüzgar, 2018). To expand the

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structure, the leaders have to be more effective and apply different decision-making models to
evolve.
In many organizations like startups and even the conglomerates, a greater level of
delegations is seen in the decision-making. Here the leaders adopt a more collaborative style by
communicating the visions and finding various ways to develop the members of the organization
(Browning, 2018). The leaders of today make everyday opportunities to influence the
organizations positively. The leader for making business decisions that will influence the
organization positively can adopt many alternatives. An effective leader takes potential time to
think about the negative outcomes before deciding what decisions can be taken. An organization
that does not follow any change mechanisms is likely to become stagnant in the market.
Various decision-making models that affect leadership:-
1. Rational decision-making model
This model consists of eight steps that leaders need to adapt for optimal decision-making.
The steps are recognizing the problems, creating the decision criteria, balancing the criteria,
identifying the substitutes, evaluating them, choosing the best substitute, executing and
evaluating the result. The limitation of this model is the lack of alternative and limited
information about what is the root cause of the problem (Gati, Levin & Landman-Tal, 2019).
2. Intuitive decision-making model
The model is based on gut feelings. In this model, the leader applies the intuition in many
ways to make the decisions. The leader uses his experiences, educational background, expertise,
alternatives and other variables for the decision-making.

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3. Creative decision-making model
In this decision-making model, the decision-maker gathers the information about the
situation and come up with original and unique decisions, generates initial ideas and goes under a
period of incubation and through Eureka moments take, test and finalize the decisions.
4. Recognition- primed decision-making model
This model includes contextual assessment and mental simulation to implement the
decisions. After the identification of the problem, the decision-maker identifies the
characteristics like goals, problem cues, and expectations and takes typical action.
5. Vroom-Yetton-Jago Decision Model
This model is based on the fact that not all choices are shaped identical. Some choices are
vital and include many inputs and people, while some decisions are taken randomly. The models
use three steps for decision making namely decision quality, time constraints and commitment
made by the subordinates.
6. The OODA loop model
OODA stands for observe, orient, decide and act. This is the simplest model among all, but it
guides the decision-makers on how to make the decisions in business. The main part is that the
leader has to align the information in hand to make a good choice.
7. The recognition- primed model
According to this model, the decisions should be made quickly based on the information
provided. It involves three stages experiencing the problem, analyzing the situation and
implementing the solution.

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8. The ladder of inference
Under this model, seven rungs on the ladder are considered while decision-making. They are-
reality and facts of the situation, selection of the reality, interpretation of the reality, assumptions,
beliefs and actions.
9. Paired comparison analysis model
Priority is considered as the main part of the model for the decision-making process. Under
this model, a table is prepared, which outlines all the options of the situations. Every option that
is selected for the decision must be listed in the table. After that, the options are compared using
the paired analysis (Gati, Levin & Landman-Tal, 2019).
Decision making in leadership through the use of the Vroom-Yetton-Jago
Decision Model
Any business cannot flourish without effective and quality decision-making. There is
success stories of the quality decisions of every organization that keep it pointed towards the
right direction. The model allows the leaders to make decisions based on the three aspects,
specifically decision superiority, the promise of the subordinate and time constrictions (Ullrich,
Pokorný & Sládek, 2018).
Decision quality
The organization is faced with new challenges every day. To gain competitive advantage
and survive in the market, an organization has to think and make decisions strategically. It
becomes important for the organization to come up with the right and quality decisions to cope
up with the problem. At many situations, decision-making becomes critical, so the leader has to

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involve a large number of resources, which includes information, time, employees and many
other resources to generate the alternatives.
The commitment of the team
Sometimes, some of the decisions affect the whole of the team. This also gives a chance
for the members to participate in the decision- making procedure by the organization. The usage
of the collaborative method will prove beneficial for this purpose because the involvement of
people and brainstorming will lead to more quality decisions.
Time constraints
More time taking in decisions will lead to more quality decisions, but when there is
limited time to choose between the alternatives and come to a conclusion, it becomes feasible to
include others in the process and undergo thorough research (Jaques, 2017).
Figure: The
Vroom-Yetton
Decision Model
Source:
(http://www.free-
management-
ebooks.com/news/ vroom
-yetton-jago-
decision model/)

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Figure: The Vroom-Yetton Decision Model
Source:(http://www.free-management-ebooks.com/news/vroom-yetton-jago-decision
model/)
The connection between the Vroom-Yetton-Jago Decision Model and
leadership effectiveness
A decision model is an essential tool for the decision-making and effectiveness of the
leadership for most business operations. The survival of any organization is dependent on its
leader's decision that influences the people as well as the organizational processes as a whole.
The parameters that shape the decisions are quality the decisions, the commitment by the
members and the time restrictions. There are different leader autocratic, consultative and
collaborative leadership styles. In oppressive leadership decision-making, a leader takes the
judgment individually and then tells others about the decision. Other members are not involved
in the decision. The consultative leadership style involves takes the decision on their own but
after consulting the members in the organization. The collaborative style deals in decision-
making where all the members are involved in the process and wok as a team. There is a
brainstorming session regarding the change (Sosnin & Molotov, 2017).
Benefits of the models in leadership
The focus of the model “Vroom-Yetton-Jago Decision Model” is to determine in what
way the group, leader or the condition determines the point of involvement of the individuals in
the decision-making process according to the current scenario of the problem. The decisions vary
according to the different problems that arise in the organization due to external and internal
factors. The model provides different forms of leadership in decision –making according to the

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various situations. The model gives different methods of decision-making because no one type of
style fits all the situations. The model will give a chance to the decision-makers analyze the
situation, generates alternatives and determines how much support a group can provide the
leadership in the process. The decision-making model can prove highly beneficial for the
organization by giving respect to the choices a leader wants to adopt. The organizations in the
21st century should adopt the collaborative and consultative style of decision-making styles
because it involves the participation of the members of the organization. The involvement of
different brains in the process will lead to more effective decision-making and in turn, affect the
productivity of the organization (Jaques, 2017). It can prove beneficial for the managers and the
leaders who try to make a balance between the participative management for the need to make
effective decisions.
Research questions to determine the correct decision style for the leaders in the
organization
The below questions are to be answered by the leaders to find out the right leadership
style and the right method of decision method.
 Is the superiority of the judgment vital for the organization?
 Is the result is dependent on the group dynamics?
 Has the problem been structured and defined properly for the clear understanding ng of
the scenario?
 Are the objectives of the team align with the objectives of the organization?
 Does the team is involved in the process and motivated to accept the decision taken by
the leader?

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 Are conflicts expected when the teams are involved in the decisions? If yes, how to
resolve the issue?
 Does the information that flows in the organizational hierarchy is made transparent for
the members at all the levels in the organization?
Limitations of the model
The “Vroom-Yetton-Jago Decision Model” is considered beneficial, but it is not
appropriate for all the situations. Its identity is doubtful whether this model can be utilised for
large groups or not. The decisions involve takes too mechanical processes. It may overlook some
subtleties, for example, the psychology of the leader, the complexity involved in the tasks,
emotional quotient of the assemblage and some indistinctness of the terms such as quality and
importance. There are situations where it may be not possible the model, such as emergencies
and other situations that constrain time. There is no provision for the group to start the decision-
making activity because group changing aspects can be quite complex sometimes under certain
conditions.
Conclusion and Recommendation
Therefore, it can be concluded from the above discussion that to become an effective
decision-maker, a leader should be able to adapt and apply the appropriate decision models in the
organization, and practising it frequently to become the master of it. For leaders whose decisions
can influence hundreds of people, should invest more time in exploring the decision-making
tools to avoid the traps that come during the process. Every leader should apply different
decision models to evaluate different problems because using the same model for all the
decision-making activity might create traps and proves hindrance because situations vary every

12DECISION MAKING IN LEADERSHIP
time. Because decision- making traps will make the leader suffer from choosing the wrong
course of action, which will result in problematic consequences. Global organizations need
leaders who know how to manage situations arising from change due to several internal and
external factors like globalization, technological change, price rise, natural calamity, recession
and many other economic issues that has a direct effect on the organizational processes. So, the
organization needs such leaders who can shift their roles and responsibilities according to the
situation. To overcome the problem of lack of effective leaders in decision making, every
organization should provide training to groom the managers so that they can turn into great
leaders for the organization to overcome the problem of uncertainty, volatility, ambiguity and
complexity while making decisions for the organization. Adopting the collaborative style of
decision making and treating each preposition as unique, the leader can optimize the chances for
a positive outcome. This will save time and money of the organization by avoiding costly
mistakes. In today's competitive world, the need of a managerial leader is the demand of every
growing organization.

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References
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Social Science, 9(2), 14-18.
Dipboye, R. L., & Dipboye, R. L. (2018). Leader Emergence and Effectiveness in
Organizations'.
Gati, I., Levin, N., & Landman-Tal, S. (2019). Decision-making models and career guidance.
In International handbook of career guidance (pp. 115-145). Springer, Cham.
Jaques, E. (2017). Requisite organization: A total system for effective managerial organization
and managerial leadership for the 21st century. Routledge.
Leitner, M., Pahi, T., & Skopik, F. (2017). Situational Awareness for Strategic Decision Making
on a National Level. In Collaborative Cyber Threat Intelligence (pp. 225-276). Auerbach
Publications.
Li, G., Kou, G., & Peng, Y. (2016). A group decision making model for integrating
heterogeneous information. IEEE Transactions on Systems, Man, and Cybernetics:
Systems, 48(6), 982-992.
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2016) (pp. 432-442). Vysoká škola ekonomická v Praze.

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Rüzgar, N. (2018). THE EFFECTS OF DECISION-MAKING STYLES OF LEADERSHIP ON
EMPLOYEES KNOWLEDGE SHARING WITHIN THE ORGANIZATION. Bilgi
Ekonomisi ve Yönetimi Dergisi, 13(2), 107-120.
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http://www.free-management-ebooks.com/news/vroom-yetton-jago-decision-model/
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