DECISION MAKING MODELS
Participative decision making is the extent to which employers allow employees input or participation in organizational decision-making (Probst, 2005) whereas autocratic management does not allow employee participation in the decision making process.
According to research carried out in Isfahan Hospital all head nurses of various wards were investigated with questionnaires being used to collect data. The head nurses used constructive, participative and autocratic management styles respectively with a higher percentage using constructive and participative styles this is attributable to the organizations culture and the nature of the organization, a teaching hospital. (Ghalrize et al.,n.d.)
Centralized decision making is where power is held and exercised by one individual or a few individuals at the top as in the case of dictators. It is mostly common in small organization owned by one or few individuals. These leaders do not entertain any suggestions or initiative from subordinates. Decentralized decision making is where power is exercised at all levels of management, corporate middle level and tactical level but in different degrees.
The success of a management style adopted by a company whether centralized or decentralized depends on factors such as type, culture, ownership and size of the organization.
According to research most organizations prefers centralization with more than half of company’s structure adopting a centralized model. A fully decentralized structure is only by less than ten percent of organizations. The rest incorporate both the centralized and decentralized model. (Recruiting Metrics, 2003).
Formal management is where by the leader relies on the established formal channels of communication and the relationship between himself and the employees is strictly business related. In informal management style the leader develops a more relaxed and personal relationship with his subordinates and they relate as if they were at same level of management.
SEED is a mentoring program in Sun Engineering, executives decided whether to adopt a formal or informal approach when mentoring there juniors. Over time SEED has developed into a formal system with metrics, published processes, and web tools. However Sun staff also benefits from many informal mentoring with at least a third of the numbers informal mentoring relationships (Dickinson, 2009).
The mentoring program is a great success because the executive take either a formal or informal approach when mentoring where appropriate.
Dickinson K. (2009).Formal vs. Informal Mentoring.
Ghalrize et al., (n.d.). Decision-making methods of the head nurses.
Probst T.M. (2005). Countering the Negative Effects of Job Insecurity through Participative Decision Making: Lessons from the Demand–Control Model. Journal.
Recruiting Metrics and Performance Benchmark Report Staffing Org, Inc And the human Capital metrics consortium. (2003).
Vroom et al., (1988). The New Leadership: Managing Participation in Organizations.