Decision Making & Productivity in the Workplace

Decisions naturally have an impact on many aspects of the workplace. In addition to the decisions themselves, the decision-making process, as well as the implementation of decisions, have the potential to impact productivity in the workplace. The cost of the effort required to produce a particular product or service increases as productivity decreases. Because of this direct impact on the bottom line, it is essential for organizational leaders to consider all aspects of the decision-making process in order to minimize the negative effects it can have on productivity.

The Facts

According to the United States Department of Labor, "Increasing employee voice either through unionization or employee participation in decision making raises productivity." By encouraging worker input in the decision-making process, managers can greatly increase employee engagement levels, thus improving productivity. Watson Wyatt researchers found that "companies with highly engaged employees experienced 26 percent higher employee productivity."

Leadership Styles

Varying leadership styles have the potential to impact the decision-making process and its effect on productivity in the workplace. Some leadership styles encourage employee input in the decision-making process while others discourage input. For example, a manner with an autocratic style makes decisions with no input from workers. This can demotivate workers who feel their voices are not heard in the decision-making process. Conversely, a manager who exhibits a democratic style includes workers in the decision-making process, which can have a positive impact on productivity in the workplace.

Organizational Culture

Jeff Prouty, founder of managing consulting firm, The Prouty Project, says productivity can be boosted by creating a transparent office culture in which decisions are made in an open and honest manner. This transparency in the decision-making process encourages a culture of sharing in which workers are included in the decision-making process. Additionally, when managers and leaders share information with workers rather than hiding their intentions and motives, they will naturally hold themselves to a higher level of accountability. In such a culture, workers will have a higher level of trust in the resulting decisions.

Solutions

One of the most effective strategies for improving employee engagement in the decision-making process, and thus improving productivity, is to empower workers to both engage in the decision-making process and to make decisions about day-to-day work activities on their own. Empowered employees are more likely to participate openly and actively in the decision-making process.

References

• Center for Information-Development Management; Just What Do We Mean by Productivity? Dr. JoAnn Hackos; July 2004
• U.S. Department of Labor; Generating Productivity Growth: A Review of the Role of Workplace Practices and Computers; September 1996
• "Bloomberg Businessweek"; Employee Engagement: What It Is and Why You Need It; Derek Irvine; May 2009
• "Minneapolis-St. Paul Business Journal"; Boost Productivity, Bottom Line With Transparent Office Culture; Jeff Prouty; March 2007
• DecisionWise Leadership Intelligence; Employee Empowerment vs. Employee Engagement; Charles Rogel; July 2010