Leaders in an organizational environment have to make decisions daily. The Vroom-Yetton-Jago Normative Decision Model helps explain when and how to have employees participate in decision making.
Vroom-Yetton-Jago Normative Decision Model
Fun Town Amusement Park’s management is facing a huge decision. Every year, the company plans for a new ride to unveil during the opening season. This year, the company has been presented with three new ride options from the design company: a giant swing, a floorless rollercoaster, and a haunted mansion.Management has to choose what type of leadership decision-making process they will use to choose the ride.
Leaders in organizations have to decide when to have employees participate in the decision-making process. Fun Town Amusement Park has decided to follow the Vroom-Yetton-Jago Normative Decision Model to help their managers determine which type of decision-making strategy to use for the ride selection this spring. The model explains the differences between authoritative, consultative, and democratic types of leadership by offering five forms of leadership decision making that Fun Town’s managers can choose for the ride.The managers have been given a one-day, off-site meeting to discuss which type of leadership style they will use to effectively make this massive corporate ride decision. Let’s take a look at the first type of leadership decision making they are considering today.
The first form that the Vroom-Yetton-Jago Normative Decision Model suggests is known as decide, or Autocratic Decision I. In this form, Peter, the general manager of the park, would make the choice alone without any outside consultation, and then he would sell the decision to the group.
This form of authoritative decision making is needed when time constraints create difficulty in consulting other members or employees. Peter should still consider the significance of the decision, as well as the details of the topic, to safely conclude that the ride selection can be made solo without outside input.The managers at Fun Town feel that if Peter chooses which ride should be selected, it will cause trouble within the company.
First of all, the company prides itself on surveying employees for their feedback and thoughts on improving the park. Next, this is a 15-million-dollar investment and should not be a rush decision. The managers are now looking at the second form of the Vroom-Yetton-Jago Normative Decision Model to see if it would work for their particular ride situation.
Another leadership choice the Fun Town managers are investigating is called consult individually, or Autocratic Decision II. In this model, the manager solicits opinions from each member of his staff individually and then still makes the final decision by himself. At Fun Town, Peter would present the rides to his staff and then analyze the input. The final decision would still be up to Peter regarding exactly which ride to purchase.This appeals to the general manager, but he worries that he does not have the time in his schedule to meet individually with his staff. They decide to move on with the Vroom-Yetton-Jago forms of decision making.
The next form of decision making is called consult group, or Consultative Decision I. In this form, the manager describes the issue to all employees in a meeting and listens to their input. He then still makes the final decision by himself.So far, the team agrees that this option is the best one. It saves time yet still lets the entire staff discuss the three ride choices. One of the members of management would like a more democratic method to decision making, and she brings up the fourth form of the model.
The fourth form of decision making is called facilitate, or Consultative II. This type of leadership model relies on presenting the issue to the group in a meeting where the manager acts as a moderator. This model is dependent upon consultation between the manager and group members. In fact, the manager’s opinions are given the same weight as the rest of the group members’. The final outcome of this exercise should be concurrent on the decision.For example, Peter would call a company meeting to present the three ride options. After the mini-presentation, the floor would be open for discussion until a final agreed decision by the entire group was chosen.
This is unrealistic for a company as large as Fun Town. There would be too many different opinions, and it would be hard to reach a consensus regarding the ride choice. There is one more choice for Fun Town to consider as a decision model.
The last type of leadership decision model is called delegate, or Group Decision. In this situation, the manager allows the group to decide on the final outcome. The manager has no real input, and the problem is given to the group to solve.
Peter could approach the ride issue in this manner by giving the group specific guidelines to come up with a solution. The main concern about using this model is that it could be difficult for the group to come up with a selection without one person making the final determination.
The management team has spent an enormous amount of time considering the different leadership decision models. Since the ride is an expensive decision that needs to have a quick finalized outcome, the team has decided to consult. Peter feels that this model will allow all employees to have a part in the decision, yet he still will have the final say to ensure that the choice is a good match for the overall marketing strategy of the company. He is the boss!The meeting was held last week, and the final ride choice was the Giant Swing! Fun Town Amusements is excited to see how the new ride impacts customer attendance this year.
The Vroom-Yetton-Jago Normative Decision Model explains the differences between authoritative, consultative, and democratic types of leadership by offering five forms of leadership decision making. Companies need to decide whether they want to decide, consult individually, consult group-wise, facilitate, or delegate within their organization when faced with a decision.
When you have completed this video, you should be able to:
- Explain the purpose of the Vroom-Yetton-Jago Normative Decision Model
- List the five types of leadership decision making offered by the Vroom-Yetton-Jago Normative Decision Model, and understand under what conditions each option would work