10. Making Choice and Evaluation in Decision-Making process

As problems are defined and information about problems and outcomes is examined, choices emerge. Weighing options and selecting are the most visible decision-making processes.

Sometimes choices are difficult and taking decisions is very hard, especially when choices are not clear and their results are unpredictable.

The selection process does not necessarily require reasoned judgments; the compromises of group decision-making often produce results that only few individuals prefer; satisfying single interests often means ignoring the interests of others.

Decisions do not end with choices among alternatives. Decision-making involves evaluating the effects and actions. Evaluation may be formal (an official study of the results produced by a new government program) or informal (scanning the news, talking to colleagues).

The most difficult aspect of evaluating choices is establishing the criteria. The most common criterion is the result. Results are not universal criteria for the quality of a decision. The evaluation of any decision-making must involve looking at results and processes as well as the situation faced by decision makers.

11. Models of decision-making

There is no right or wrong way to make decisions. Sometimes cautious deliberation is the best path; at other times risks are required. But scholars speak about two broad categories of models of decision-making: rational and nonrational models.

Rational decisions are choices based on judgment of preferences and outcomes. In nonrational models choices do not result from the deliberate balancing of pros and cons. The decision process there is too complex to take into account multiple goals, alternatives and impacts of every alternative; the time required to take a decision is too short.

Both rational and nonrational models of the decision process are products of value-neutral social science. Values enter rational decision models only in the form of preferences.

12. Transactional and Transformational leaders

Leadership is the direction and guiding of other participants in the organization.

Leadership differs in degree. Transactional leaders exchange rewards for services. They give their subordinates the direction, support, and confidence to fulfill their role expectations. They also help subordinates understand and satisfy their own needs and desires. They are good managers.

Transformational leadership is more dramatic. Transformational leaders change the relationship of the subordinate and the organization. They encourage subordinates to go well beyond their original commitments and expectations. If transactional leaders expect diligence, transformational leaders foster devotion. These leaders have the ability to reach the souls of others to raise human consciousness. They raise the level of awareness and encourage people to look beyond their self-interest.

Both forms of leadership are important. When people in positions of authority encourage subordinates to believe that their work is important – not merely a fair exchange of pay for work – motivation, commitment, and performance surpass routine expectations.