Decision Making Process

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1. Table of Contents Abstract............................................ 3 1. Introduction......................................3 2. Literature Review.................................4 2.1 Problem Solving vs Decision Making.....................4 2.2 Theoretical Models of Decision Making..................4 2.2.1 The Rational Choice model...........................5 2.2.2 The model of bounded rationality....................5 2.2.3 The incrementalist view.............................5 2.2.4 The organizational procedures view..................5 2.2.5 The political view.................................. 5 2.2.6 The garbage can model...............................5 2.2.7 The individual differences perspective..............5 2.2.8 Naturalistic decision making........................5 2.2.9 The multiple perspectives approach..................6 2.3 Rational Choice Decision Making Process................6 2.3.1 Step 1 – Define the problem.........................6 2.3.2 Step 2 – Choose the best decision process...........6 2.3.3 Step 3 – Develop possible choices...................6 2.3.4 Step 4 – Select the choice with the highest value. . .6 2.3.5 Step 5 – Implement the selected choice..............6 2.3.6 Step 6 – Evaluate the selected choice...............6 2.4 Problems in Decision Making Process....................7 2.5 Employee involvement (EI) and participation (EP) in Decision Making............................................8 2.6 Employee involvement (EI) Practices....................9 2.6.1 Advantages of employee involvement (EI).............9 2.6.2 Disadvantages of employee involvement..............10 3. The Company – XXX Malaysia.......................11 3.1 XXX organizational culture and behavior...............12 3.2 XXX Decision making process...........................13 3.2.1 Health Concerns for Staff working on Shift.........13 3.2.2 General Practice in XXX............................15 4. XXX vs the decision making model in the literature 16 5. Recommendations..................................17 6. Conclusion.......................................18 References......................................... 20

Transcript of Decision Making Process

Page 1: Decision Making Process

1. Table of ContentsAbstract................................................................................................................31. Introduction..................................................................................................32. Literature Review.........................................................................................4

2.1 Problem Solving vs Decision Making.........................................................................42.2 Theoretical Models of Decision Making.....................................................................4

2.2.1 The Rational Choice model..................................................................................52.2.2 The model of bounded rationality........................................................................52.2.3 The incrementalist view.......................................................................................52.2.4 The organizational procedures view....................................................................52.2.5 The political view.................................................................................................52.2.6 The garbage can model........................................................................................52.2.7 The individual differences perspective................................................................52.2.8 Naturalistic decision making................................................................................52.2.9 The multiple perspectives approach.....................................................................6

2.3 Rational Choice Decision Making Process.................................................................62.3.1 Step 1 – Define the problem.................................................................................62.3.2 Step 2 – Choose the best decision process...........................................................62.3.3 Step 3 – Develop possible choices.......................................................................62.3.4 Step 4 – Select the choice with the highest value................................................62.3.5 Step 5 – Implement the selected choice...............................................................62.3.6 Step 6 – Evaluate the selected choice..................................................................6

2.4 Problems in Decision Making Process........................................................................72.5 Employee involvement (EI) and participation (EP) in Decision Making...................82.6 Employee involvement (EI) Practices.........................................................................9

2.6.1 Advantages of employee involvement (EI)..........................................................92.6.2 Disadvantages of employee involvement...........................................................10

3. The Company – XXX Malaysia.................................................................113.1 XXX organizational culture and behavior.................................................................123.2 XXX Decision making process.................................................................................13

3.2.1 Health Concerns for Staff working on Shift......................................................133.2.2 General Practice in XXX...................................................................................15

4. XXX vs the decision making model in the literature...............................165. Recommendations.......................................................................................176. Conclusion...................................................................................................18References..........................................................................................................20

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Abstract

In the era of globalization and rapid changes in today’s business and organizations, decision

making has become an integral part of organizational operations and managerial activities at

every organizational level. Many empirical studies suggested that employees and the

organization have benefited from a good program of Employee Involvement (EI), Employee

Participation (EP) and decentralized decision-making in an organization. As such, this paper

intended to provide a general overview of decision making, theoretical models of decision

making, rational choice decision making as the selected model, problems in rational choice

decision making model, and literature review of EI practices, and the advantages and

disadvantages of EI decision making in organizations. The selected organization in this paper

is a Multinational Company – XXX Malaysia based out Cyberjaya, Selangor. The current

decision making process and practice of XXX Malaysia will be dissected and compared

against market practice. Subsequently, some recommendations to improve the current

practice in the organization will be made based on the analysis.

1. Introduction

Decision making is one of the most important process in an organization impacting in every

level, including, individual, group and organization. It is often associated with problem

solving and group processes in the organizational structure. According to Harris (2012), the

standard and universal definition of decision making is “the study of identifying and choosing

alternatives based on the values and preferences of the decision maker. Making a decision

implies that there are alternative choices to be considered, and in such a case we want not

only to identify as many of these alternatives as possible, but to choose the one that best first

with our goals, objectives, desires, values and so on”.

Decision making should start with the identification of the decision maker(s) and

stakeholder(s) in the decision, reducing the possible disagreement about problem definition,

requirements, goals and criteria (Baker et al. 2001). In a typical organization today, managers

are usually make plenty of decisions, some of the managers being operational and others

being strategic. There are typically three levels of management which are top level who will

make the strategic decision, middle level who will make the tactical decision and first or low

level who will make operational decisions. Making decision is a mXXXer of a huge

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responsibility which affecting the organization as well as their employees and other

stakeholders.

In relation to this topic, we will take a closer look at an established organization on

the practice of how they make an important decision making and the process to establish a

decision.

2. Literature Review

2.1 Problem Solving vs Decision Making

Decision making and problem solving are critically important skills areas for managers,

supervisors, planners, coordinators and individuals. It is important to be able to identify

current and potential problems and to make sound, timely decisions before anything goes

wrong. According to Study (2005), Problem solving and decision making is related to one

another and the definition is as follows:

Problem solving – is a set of activities designed to analyze a situation systematically and

generate, implement, and evaluate solutions.

Decision making – is a mechanism for making choices at each step of the problem solving

process.

Decision making is part of problem solving, and decision making occurs at every step

of the problem solving process.

2.2 Theoretical Models of Decision Making

According to Akdere (2011), there are a number of theories associated with decision making.

Some of the well-known theories are 1) Statistical decision theory; 2) Multiobjective decision

making theory; 3) Social decision making theory; 4) Affective decision making theory; 5)

Normative decision making theory; and 6) Descriptive theory. However, only a handful of

them actually deal with the decision making process in the organization.

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Under theoretical models study conducted by Muir, Clinical and Standard (2004), they

listed out various models of decision making. The following list of views, supporting theories

and models is based upon categorizations related to decision making;

2.2.1 The Rational Choice model

The rational manager view assumes a rational and completely informed decision-maker as

described by neoclassical microeconomic theory around the middle of the previous century.

2.2.2 The model of bounded rationality

The process-oriented view which is based on bounded rationality, where incomplete

information and that optimal choices are not always required. Bounded rationality is

characterized by the activities of searching and satisfying. Alternatives are searched for and

evaluated sequentially. If an alternative satisfies certain implicitly or explicitly stated

minimum criteria, it is said to “satisfice” and the search is terminated.

2.2.3 The incrementalist view

The logical incrementalist view involves a step by step process of incremental actions and

keeps the strategy open to adjustment.

2.2.4 The organizational procedures view

The organizational procedures view seeks to understand decisions as the out of standard

operating procedures invoked by organizational subunits.

2.2.5 The political view

The political view sees decision making as a personalized bargaining process, driven by the

agendas of the participants rather than rational processes. People differ on the organization’s

goals, values and the relevance of information.

2.2.6 The garbage can model

The garbage can view describes decision making is an “organized anarchy”. This model

emphasizes the fragmentedness and chaotic nature of decision making in organizations, rather

than the deliberate manipulations implied by the political view.

2.2.7 The individual differences perspective

This model focuses the XXXention on the problem solving behavior of the individual

manager, as influenced by the manager’s decision making style, background and personality.

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2.2.8 Naturalistic decision making

Naturalistic decision making is concerned with investigating and understanding decision

making in its natural context.

2.2.9 The multiple perspectives approach

This model for decision making as an XXXempt to “sweep in” all possible perspectives on a

problem. It is a concept of unbounded systems thinking, which assumes that any problem is a

member of any other problem.

2.3 Rational Choice Decision Making Process

A research study conducted by Neag and Pricopi (2010), listed out the steps of rational choice

decision making process into following steps as follows:

2.3.1 Step 1 – Define the problem

Assessment of the context and detection of the existing problem. Although an initial step, this

is a critical moment in the entire decision making process. In many situations, the incapacity

to correctly seize the issue leads to failure or inaction.

2.3.2 Step 2 – Choose the best decision process

Selecting the best available decision process.

2.3.3 Step 3 – Develop possible choices

After identifying the problem and selecting the process, next is to search viable alternative

choices or solutions. During this step, creativity and “out of the box” thinking are essential.

2.3.4 Step 4 – Select the choice with the highest value

Ascertain the choices or options based on the evaluation done in the previous step.

2.3.5 Step 5 – Implement the selected choice

Once a solution has been rationally chosen, one must put it into practice. The success of an

efficient implementation lies in better planning and accurate communication.

2.3.6 Step 6 – Evaluate the selected choice

Evaluate the selected solution through comparison or any chosen evaluation method. The fact

results must constantly compared with the planned ones.

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Figure 2-0: Rational decision making process flow chart depicted the rational choice

decision making process.

Figure 2-0. Rational decision making process.

2.4 Problems in Decision Making Process

The rational choice decision making seems logical, but quite difficult to implement in reality

because people are not and cannot be perfectly rational. There are few problems associated

with steps of the rational choice decision making process (McShane & Von Glinow, 2015).

The problems are:

1. Problems with problem identification - the problem identification stage is itself filled

with problems.

2. Problems with goals – the rational choice paradigm assumes that organizational goal

is clear and agreed on but in reality, organizational goals are often ambiguous or in

conflict with each other.

3. Problems with information processing – it assumes that decision makers can process

information about all alternatives and their consequences, whereas it is not possible in

reality.

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4. Problems with maximization – The issue is people engage in “satisficing” rather than

maximization. People satisfice when they select the first alternative that exceeds a

standard of acceptance for their needs and preferences.

2.5 Employee involvement (EI) and participation (EP) in Decision Making

Employee voice is a very important factor in the success of an organization. Many

researchers including (Irawanto, 2015; Lamley, T 2010; Singh, 2009; Lengnick-Hall and

Lengnick-Hall, 1992; Walumbwa et al., 2011; Leana, Ahlbrandt, and Murrell, 1992) argue

that successful voice regimes not only positively affect the performance of employees in

terms of quality and productivity but also help to negate the issues which might explode if

necessary action is not taken. Lawler (1999) states that moving decision making power

downward in organizations is at the core of what employee involvement is all about.

According to Pleskac, Keeney, Merritt, Schmitt, and Oswald (2011), employees will

show more interest in staying with the organization if they have more opportunities to express

their dissatisfaction, grievances and to change the unsatisfactory work conditions. It means

every employee is regarded as a unique human being, not just a cog in a machine and each

employee is involved in helping the organization meet its goals. Each employee’s input is

solicited and valued by his or her management. Employees and management recognize that

each employee is involved in running the business.

Lamley, T (2010) defines employee involvement (EI) as a process for empowering

employees to participate in managerial decision making and improvement activities

appropriate to their levels in the organization, whilst employee participation (EP) is a process

of employee involvement designed to provide employees with the opportunity to influence

and where appropriate, take part in decision making on mXXXers which affect them .

Employees are the fuel that runs the engine of the organization and it is believed that their

non-involvement in the decision making process creates tensions between management and

staff. It leads to lost man hours among others which adversely affect the fortunes of the

organization.

(Irawanto, 2015) mentions employee involvement (EI) and employee participation

(EP) is now considered a key element in the successful implementation of new management

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strategies and plays an important role in determining the degree of job satisfaction,

commitment of the employee as well as their motivation. In his study on the relationship

between employee involvement and employee motivation conclude that high involvement of

employee in the organization's decision making process has increased the employee work

motivation as well as well-being.

Employee involvement and employee participation is also termed as “decentralized

decision making” where decision making authority is delegated to the worker with no or

minimal interference from the manager (Zábojník, 2002).

2.6 Employee involvement (EI) Practices

According to Freeman and Kleiner (2000) there are about eight EI practices. They listed it out

as follows:

1. Self-managed work teams

2. Worker involvement in the design of EI programs

3. Total Quality Management - TQM

4. Committees on productivity

5. Worker involvement in work processes

6. Suggestion or complaint systems

7. Information sharing with employees

8. Opinion surveys

2.6.1 Advantages of employee involvement (EI)

Employee involvement improves decision making in several ways. The outcomes of the

decision making itself are much better as compared to centralized decision making. Problem

identification steps are done faster and better. Due to the size of people participate in the

process, more and better choices are produced. When several people working together can

potentially generate better solutions than the same people working alone, which then help

decision maker to select the best alternative. (McShane & Von Glinow, 2015).

In a larger context from organizational perspective, a key result in a long term study

of employee involvement (EI) practices conducted by Lawler (1999) found the employee

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involvement practice has significantly improved corporate performance. The test was

conducted on EI practices against five measures of corporate performance, and the results

showed a higher return on the identified measurement.

Black and Gregersen, 1997; Kim 2002; Han, Chiang and Chang, 2011 as cited by

(Irawanto, 2015) mention that employees involvement in decision making has improved job

satisfaction in an organization and considered as a key element in the successful

implementation of new management strategies which in turn increases the commitment of

the employee as well as their motivation.

A study by Shadur et al (1999) and Cadwallader et al. (2010) as cited by (Irawanto,

2015) found that involving employees increases their effort, which subsequently improves

efficiency and productivity, reduces the cost of monitoring employees and leads to

increased commitment. When sensitive financial and organizational information is shared

with employees, they believe they are better off, feel trustworthy and being treated fairly

and openly by the management. As a result of this relationship, the management or

organization will see the positive impact on task and performance effectiveness.

In relation to change management perspective, it is argued by Negulescu & Doval

(2014) that employees will be more likely to accept decisions in which they involved.

Employees will be in a right or better position to adapt the new changes if they know what is

expected from them and what is the current situation of the organization.

Irawanto (2015) concludes that employees who enjoy involvement or participation in

making decision feel secured in their job and will be indirectly motivated to provide the best

possible performance in their job, which reflects their pride and loyalty towards the

organization.

2.6.2 Disadvantages of employee involvement

Although there are a lot advantages when involving employee in decision making, there are

few notable disadvantages as well. According to Lengnick-Hall & Lengnick-Hall (1992),

there are at least two known issues associated with EI.

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Poor decision quality due to deficiency of skills – decision quality can be questioned

if proper preparation or knowledge is not passed on to the employees. Level of XXXention

and employee’s effort in their contribution of the decision making process can be low as a

result from lack of knowledge and skills. In other words, unqualified employees to make

decisions often lead to poor choices. When this occurs, the benefits of EI is not realized, yet

organizational trust, commitment and performance are severely compromised.

Increasing participation does not decrease accountability – while decision making

activities and influence can be shared, the effect of the consequences of either a good or a

poor decision cannot be as completely diffused. This means that those who are accountable

for decisions need to monitor and actively manage both the decision making processes and

the decision outcomes. For example, a general manager allows a selection committee to hire a

production manager who fits the social structure, but is not competent to oversee the planned

acquisition of a new technology, the general manager, not the committee, will be held

accountable for ineffective performance.

Meanwhile, a study conducted by Coye and Belohlav (1991), found that top-down

communication plays a big role to ensure the success of employee involvement program.

Poor communication with unclear objectives and lack of coordination, lead to lack of

employee commitment and participation from the employees. When some employees do not

understand the objectives, they simply ignore program by not participating actively. It may

also worsen the business condition.

3. The Company – XXX Malaysia

XXX is an American multinational telecommunications corporation. The headquarters is in

Dallas, Texas. XXX is a provider of telecommunications services to consumers in the US,

and to businesses and other providers of telecommunication services worldwide. XXX has

presence across the globe, including Malaysia and employed approximately 243,000 people

as of January 2014.

XXX Malaysia (which will be adverted to as “XXX” in this paper) was founded in

2008 after they won the biggest IT outsourcing contract from an oil and gas company,

XXXX. The contract covers the entire XXXX network infrastructure commissioning and

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maintenance globally. The XXX total workforce as of October 2015 is around 350 employees

based out Cyberjaya and Petaling Jaya.

XXX is comprised of multiple service organizations from global service assurance,

shared services, service management and consulting services, and divided into several

functional structures. The organization structure is based on hierarchical structure with

multiple level of reporting line from level one to the top level of the company, the CEO.

XXX is a transnational company and therefore, the location of employees and the

supervisors or managers is scXXXered around the world. Top level management mostly

resided in the country of origin, the USA, the middle management and first level management

are mostly in the hub centers of the company like in Amsterdam, Singapore, Hyderabad,

Bratislava, Tokyo and Cyberjaya. Figure 3-0 depicted the corporate hierarchy of XXX. The

lowest level is the “level 1” management, including clerical employees, engineers and

supervisors, then followed by “Level 2” management being the middle level management

and up to the top level, which are the Vice President, Executive Vice President, Senior

Executive President and Chairman/CEO.

Figure 3-0. XXX Corporate hierarchy.

(removed)

3.1 XXX organizational culture and behavior

Although the company has present worldwide and diverse community, the organization

culture and behavior is more towards US-centric culture. A few well known American

cultures are individualistic, teamwork, efficiency, directness, openness, competitive and high

achiever (Ismail, 2013).

In XXX, there is a unique culture which is widely practiced across the organization.

The tagline is called “One XXX”. The chairman of XXX emphasizes on working as “one”,

think as “one” and deliver the promise to the customer as “One XXX”. This culture in a way,

affects how decision is made in the organization. Generally, it has been a company’s

philosophy to involve employees (EI) and encourage participation (EP) in daily routines.

(removed)

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3.2 XXX Decision making process

Due to the fact that XXX is such a huge organization, a lot of decisions are made on a daily

basis at various levels. The focus of this paper will be on operational decision making by the

first level management (team-leader) since the decision at the highest level like merger and

acquisition, is not much visibility at the lowest level. The recent example of operational

decision making which was concluded earlier in the year will be discussed further.

3.2.1 Health Concerns for Staff working on Shift

Operational or technical issues are the common issues which always been addressed by the

first level management. Example of technical issues are degrading of network performance,

unauthorized implementation, missing deadline, imbalance project assignment and so forth.

In today’s outsourcing services, cost efficiency is one of the key elements for XXX to

stay competitive in the marketplace. Offshoring to cost effective work centers have become

part of the outsourcing strategy for XXX. At these centers, “24x5” rotating shift work

covering three regions is deployed in most of the service delivery teams. The strategy works

perfectly for the organization, but unfortunately shift work is known to be one of the

detractors for most of the affected employees.

3.2.1.1 What is the issue?

Earlier this year, an unusual trend in absenteeism rate mostly due to sick leave has been

observed by the management. The employee who reports-in sick is usually from a team

performing night shift or “graveyard” shift in the previous week. The situation has become a

threat to the business as team’s productivity becomes low due to shortage of staff.

The burden has been put on the remaining employees as they have to take up the

additional tasks. Over time, the trend has become predictable and more employees report-in

sick although they were not on the same shift cycle in the previous week. As a result,

employee motivation has gone down and start impacting customer’s satisfaction.

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3.2.1.2 Resolution steps

In the team’s bi-weekly meeting, the team-leader highlighted the declining trend to the team

as an effort to address and resolve the problem. The team mentioned that working on night

shift for five days a week is very challenging. The employees feel that they don’t get enough

rest, although they are given two days rest before starting a new shift on the following week.

They become fatigued, unfit to work and the easy way out is to report sick.

3.2.1.3 Solicits the team for an idea or suggestions

As shift work is part of the business requirement and widely deployed by other centers, there

is not much option available for the team. Instead of ignoring the situation, the team-leader

solicits his team for a viable solution to the problem.

There were two practical solutions have been suggested by the team. The first option

is to introduce a permanent night shift team and secondly to introduce a flexible night shift

environment. The first option has been ruled out as it will introduce a new problem to the

team which is lack of team bonding. The permanent night shift team is also seen to be

working in silo as they have less physical interaction with their peers.

The second option is more practical, but requires more coordination internally. Since

each sub team has four engineers, the general idea is to allow two engineers to join the

evening shift (Europe time zone) leaving the other two engineers working on night shift. To

ensure fairness, the two engineers must rotate with the other two engineers so that each

engineer only needs to work on night shift one week a month instead of two weeks a month.

3.2.1.4 The solution

Both of the options were suggested by the team and they feel that is the best options for them

to improve their health concern. The team-leader did not make his own decision, but storming

the possible solutions during team meetings, which indirectly empower the team to make

their own decision.

The final decision was made by the team-leader. Taking consideration of team

bonding and fairness to others, the obvious decision made by the team-leader is to go with the

second option. The decision was implemented in the following shift cycle, and performance

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and productivity were tracked for three months. The team-leader review the decision he made

by asking feedback in the bi-weekly team meeting for three months. The solution is in use

today and the absenteeism issue has been completely removed and productivity is also

increased.

3.2.2 General Practice in XXX

XXX uses a lot of survey systems like a suggestion and opinion surveys as well as employee

engagement on regular basis. Example of survey systems is called “eNPS” – Employee Net

Promoter Score. The system is conducted on a quarterly basis, which is sent to all employees

to answer few simple questions. The questions usually lead employees to provide

improvement suggestions and anything related to the climate of the company.

XXX also setup a web-based suggestion system similar to a suggestion box. The

system is available online 24x7 and it is open to all levels of employees. The management

then collected the data, processed and brainstorm further by forming a task-force team.

Recently, XXX introduced a new compulsory training program called “Workforce 2020”.

Most of the employees especially managers are not familiar with the training program which

lead to poor communication on the importance of employee participation in the training.

Employees use the system and feedback that their managers are not equipped with the

necessary information and failed to convince the employee. Managers now have to join a

weekly meeting as to equip the managers with as much information as possible.

Apart from that, XXX also organize a monthly “Let’s talk” session where the top

level management usually Assistant Vice President (AVP) and Vice President (VP) schedule

a one hour “virtual” session for all staff located around the world. There are multiple sessions

limiting to a maximum of twenty participants per session. It is an open discussion with higher

level management. The issues vary from one department to another and most of the time the

AVP and VP try to address the issue and make candid decisions. Example of topics discussed

in the session is an overdue approval request for staff backfill.

4. XXX vs the decision making model in the literature

American corporations have been big advocates of employee involvement and participation

(Ismail, 2013). The focus on employee involvement on the part of XXX is in line with most

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of the paradigm discussed in the literature. XXX recognizes employees as an important

resource that should be involved in the decisions making process.

Rational decision making - Based on the decision making process on “health

concern” issue as an example, most of the components discussed in the literature are similar

to what is being practiced by XXX. The team-leader uses rational decision practice by

systematically assessing the actual issue in the team, encouraging openness by storming the

issue publicly via team meeting, enabling all team members to speak up and come up with

possible options as a team.

Organizational culture and behavior - The team-leader also include XXX culture

and behavior in the decision making process. The “One XXX” culture which emphasizes on

teamwork contribute significantly to the success of the process. The decision is derived from

the consensus agreement from all team members and the final part of the process is for the

team-leader to choose the most appropriate solution to the identified problem.

Communicate prolifically - Coye and Belohlav (1991) indicate the importance of

communication in the decision making process. In relation to this, the team-leader did well by

communicating the need to address and resolve the issue with the team. The team clearly

understand the situation thus actively participate and responding to the need of resolving the

issue.

XXX investment - In summary, XXX invested and implemented a lot of other ways,

tools and systems to collect employee’s voice and to encourage employee’s participation in

the decision making process. Soft-skills training is one of the biggest investment for the

employees. Apart from training, XXX also invest on system like online surveys to gather

employee feedback. A study conducted by May, J (2010) found that confidential surveys

often result in more candid feedback than other means. The investment on this area has

developed a better culture of employee involvement and participation.

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5. Recommendations

Based on the literature review, involving employees in organizational decision making has a

lot of benefits to both employees and the organization. A recommendation is being made

based on the above mentioned topic against the current practice in the selected organization.

Soft-skills, e.g. Communication, negotiation skills – Although current XXX process

is similar to the literature, but it does not represent the entire team of XXX. Through personal

observation, some team-leaders are lack of soft-skills like communication and negotiation

skills. Most researchers pointed out that high standard of communication contribute

significantly to the outcome of decision making. When team-leaders communicate and set the

objectives clearly will promote more participation from employees. (May, J 2015; Shadur et

al, 1999; Coye and Belohlav, 1991). As such, investing on soft skills is not a one-time

investment but considered as ongoing investment. At the same time, team-leaders must also

take his or her own initiative to improve themselves.

Information Sharing culture – to extend the success of the larger group of XXX,

those successful team-leaders should share his or her success story with others. Some

keyword like “openness” in the decision making process can be used as part of the

information sharing content so that employees from other departments feel motivated to

actively participate in the decision making process.

In a larger context of information sharing culture, management transparency in

sharing information like financial report, merger and acquisition plan, and business plan with

employees. Employees feel honored when such information is shared with them. This will

indirectly encourage employees to participate more actively in the decision making process

(Coye and Belohlav, 1991).

Support from the management or organization – The issue may be resolved at the

operational level, but from the top management perspective, their support and commitment

are also required. For example, on top of the agreed decision at the operational level, the

management may support the decision by providing transportation service for those working

on night shift to ensure their safety. The additional cost could be the show stopper for the

management, but this is just an example how management can support and enhance the

decision making process.

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Celebrate successes – it is important to ensure success derived from employee

involvement and participation is recognized and rewarded. This will encourage more

employee involvement and participation in the culture. The earlier example, may not an

appropriate example for this, but may suitable in different situations like employee

involvement in resolving bigger issue involving large amount of money (cost reduction

initiative) as an example. The contributors deserve a recognition from the management.

When the news is widely broadcasted, more employees will be XXXracted and will

participate in future initiatives (May, J, 2010).

6. Conclusion

Many empirical literature on employee involvement (EI), employee participation (EP) and

decentralized decision making found positive impact and benefits on both employees and the

organization. Researchers have conducted many studies on different industries from

government agencies, banking, education, human resource, services industry and so forth,

and the results of the study have always shown positive results as described above.

The practice is not only working for an established organization, but small

entrepreneurs should also embrace the practice. Leave the decision making activities to the

people who knows their work better, i.e. the employees and the management should focus on

the precious time to do some bigger and better for the organization.

The management and the organization should continue to invest in human

development or skillset training as the success of decentralized decision making rely on

communication (to clearly communicate the objective from the top down) and the employees

must have the right skill set to deliver and “champion” the role as an active participant in the

decision making process.

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