Question

1. Scholars propose that effective leadership behaviour varies from one situation to another and that a leader needs to take situational factors into account. Based on your studies in this course, explain the Normative Decision model.

Answer 1

Normative Model of Decision making

Human beings make countless decisions during their lifetime. Some decisions are as miniscule as deciding what to wear, and the others are as more important as investing millions in a business. Before taking a decision, it is also important to understand if the decision can be taken independently or if it requires inputs from others. Such situations are often faced by managers in the organization and it is a dilemma to decide which decision is in the best interest of the organization. In such cases, the normative decision model provides a systematic and consistent approach to decide the extent of participation of team members in the decision-making process. This model was developed by Victor Vroom, Phillip Yetton and Arthur G. Jago, and hence it is also called the Vroom-Yetton-Jago Model.

Decision-making process

The model represents five different strategies with different levels of participation from the team members and the manager.

• Autocratic Type 1 – The manager decides on his own without taking suggestions or inputs from the team members.
• Autocratic Type 2 – The manager consults the team members, obtains specific information and then takes the final call
• Consultative Type 1 – The manager shares the problems with his team members individually, hears their suggestions, and then takes the final call.
• Consultative Type 2 – The manager discusses the problems with his team members as a group, takes their inputs, and makes the final decision by himself.
• Collaborative G2 – The manager discusses the problems with his followers and they make a consensual decision under the guidance of the manager.

An autocratic style is appropriate if the manager feels that he has greater expertise about the situation and is confident about his decision. If he feels that the decision will be supported by the team and that he doesn’t have enough time to consult the members, then he can exercise the autocratic style and implement the decision independently

A consultative or collaborative decision might be beneficial if the problem requires the support and inputs of the team members. It is also a feasible option if the manager can afford the time to consult his team members before making a decision.

Thus, the Normative Model guides us in identifying a suitable method to make decisions that are in the best interest of the organization, while also keeping the constraints in mind.