Impact of Individual Differences and Constraints on Decision-Making

This essay delves into the realm of organizational behavior, specifically examining the intricacies of decision-making processes within organizations. It explores the influence of individual differences, such as personality traits, self-esteem, and gender, on the choices made by individuals within a company. The essay also highlights the impact of organizational constraints, including performance evaluation systems, reward structures, formal regulations, and time constraints, on decision-making. The author argues that these factors can shape and sometimes limit the rationality of decision-making. The essay emphasizes the importance of considering individual differences and organizational constraints to make effective and informed decisions that align with organizational goals and objectives. The essay also highlights the importance of effective communication and leadership styles that consider these factors.

Running Head: Organizational Behavior
Organizational Behavior

Organizational Behavior
Individual difference and organizational constraint that constrain the decision-
making in organization
Decision making plays a great role at the time of conducting the activities of the
company. The process of decision making in the company takes place at all the levels. The
manager of the company should not think that they are right in every decision. It is the duty of
the manager to evaluate the issue with all the workers so that they can also get the knowledge
and give their suggestions and views. The decision is taken by analyzing the different situation.
Through proper decision making it can be possible for the company to identify the problems so
that hindrances cannot take place at the time of conducting the activities of the company. If a
proper decision is not taken in the company then it can give an adverse effect on the overall
operations that are taking place on a routine basis (Kiresuk, 2014).
It can be analyzed that company itself constraints the decision makers and make a
deviation from the overall rational model. The top management or the managers of the company
shape their decisions to show the overall performance of the organization. The decisions are
taken by focusing on the activities conducted in the company (Pettigrew, 2014).
There are various challenges faced by the organization or the manager at the time of
implementing the decisions which are taken. The challenges that are faced by the company are
related to the environment in which support is not given and in this, it is analyzed that decisions
made by the top management or the managers are not accepted by the employees. The managers
take the decisions with confidence but the individuals or the employees do not accept the
decisions made by the managers. Next is related to ineffective communication as it is important
for the manager to implement the decisions by having proper communication with the
employees. This can help them to accept the changes but the managers do not communicate
effectively and it becomes a challenge for them to implement the decisions in the company
(Mone and London, 2018).
The individual difference also gives impact on the decision making. There are many
individual differences like the difference in personality, self-esteem, and Gender. Each and every
individual has a different personality. One of the aspects of personality is conscientiousness
which is related to a desire to complete the task effectively. These type of individuals focuses on
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conducting the activities with efficiency and in a managed form (Pervin, 2015). Therefore, it has
been evaluated achievement striving people escalate their commitment and these type of people
are more affected by the hindsight bias (Butler and Ghosh, 2015). The individual who focuses on
achieving success tries to enhance their level of commitment towards the organizational
decisions. If decisions are not taken into consideration by emphasizing the views and opinion
then it can affect the level of commitment of the employees who are conducting the activities
with efficiency. There are also many individuals with high esteem and they think of themselves
by not considering the other employees of the organization. They can blame other people for
their failure and can take credit for the success (Jackson et al., 2017).
Therefore, the decision which is taken in the organization should consider the mindset of
all the individuals so that these differences do not take place and activities can be conducted in a
right direction. Next individual difference is related with Gender. In this, it can is analyzed that
women evaluate the decisions more than men. Women engage in rumination which means that
they overthink the problems as compared to men. By overthinking the problems they sometimes
develop it as a depression which affects the overall activities of the company and the efficiency
towards the work. Also, the differences in women take place early if a comparison is made with
the men (Koch, D'Mello and Sackett, 2015).
There are various organizational constraints like performance evaluation, reward systems,
formal regulations, and system imposed time constraints. The decisions are taken by the
managers to reflect the organizational performance evaluation and reward system so that formal
rules and policies can be compiled and to achieve organizational imposed time constraints. It has
been evaluated that organizational decisions also act as a precedent to constrain the current
decisions.
One of the aspects is related to the performance evaluation in which managers are
influenced in their process of decision making on which there are analyzed. If the manager of the
division department believes that the manufacturing plants which is under his responsibility are
operating in a good manner when no negative comments are given, then the emphasis should be
given on the plant manager who ensures that no negative information can reach the division boss.
In this proper evaluation is made so that actual efforts made by the people can be analyzed
(Shields et al., 2015). For instance: if a college dean believes that an instructor should not fail
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Organizational Behavior
more than 10 % of the total students then it will show the ability of an instructor because
expectation should be maintained that the instructor who wants to receive a favorable result will
take a decision not to fail many students.
Next factor related to the organizational constraints is reward systems. In this, it is
evaluated that the reward systems influence the decision makers by giving them an option which
is more preferred in context to the personal payoff. For instance: of the company rewards risk
aversion, and then managers will take conservative decisions. It has been seen that General
Motors gave promotions and incentives to the managers who are on a low profile so that
controversies can be avoided and the productivity level of the employees can be enhanced. The
outcome which is analyzed is that the managers started adapting the tough issues and pass the
decisions of controversies on to the committees.
By giving rewards it can be easy for the company to enhance the productivity level of
the employees (Vasu, Stewart and Garson, 2017). Rewards are the best way through which the
employees will take the decisions in a proper manner and also conduct the activities with
efficiency. This is considered as a major organizational aspect which is considered by the top
management so that employees can be motivated and conduct the activities in a right manner
(Pinder, 2014). If an employee is given a target to complete a specific activity within the limited
time frame and for this, he or she will be rewarded then it is seen that they will complete the task
in a proper manner (Nuttin, 2014). So, sometimes the decisions are also affected by the rewards
given or offered to the employees.
System-imposed time constraints are the next factor. In this, it has been analyzed that
companies impose deadlines on the decisions. The decisions which are implemented are for
specific time and it is important for the employees to follow it so that the outcome can be
received in a proper manner.
For example: The manager tells to the employees that the department budget should be
completed by the next Friday. Also, the report which is related to the new product development
should be ready for the executive committee so that they can review it by the first of the month.
It is important that a host of decisions should be made in a proper manner in order to be a
competitive firm in the market. It is also the technique through which the company can make the
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customers satisfied and happy. If an organization is conducting the activities in a managed form
then it can be easy to enhance the satisfaction level of both the employees and the customers. It
has also been seen that every important decision is related with the explicit deadlines only and it
is for certain time so that in a managed way the task can be completed (Wagner III and
Hollenbeck, 2014).
In this situation, the decision makers have to face a time pressure and it is difficult to
collect the information that can affect the final choice. The time given is limited and they are
forced to complete the task accordingly and within the time framework. So, it is one of the
important organizational constraints that impact the decision-making process.
It is concluded that there are various individual differences and also organizational
constraints which constraints the organization decision process. The individual differences which
are explained in the report are personality, self-esteem, and Gender. These are the major factors
which constraints the process of decision making. It is important to focus on these aspects at the
time of making decisions so that activities can be conducted in a proper manner. It can also help
to accomplish overall goals and objectives of the company.
Also, the discussion is made on the organizational constraints which are performance
evaluation, reward systems, formal regulations, and system imposed time constraints. Therefore,
it is concluded that these are the major individual difference and organizational constraints that
constrain the decision-making process of the company.
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