Decision-Making Models for Technological Change

Vroom-Yetton-Jago Decision-Making Model

Our world market is a competitive one, and it requires organizations to make constant changes in order to retain their competitiveness in their industry. Technology changes are one example of changes an organization can make to remain competitive. Companies that use outdated software with limited capabilities will quickly be surpassed by companies willing to spend the time and money to update to meet customers’ needs. This issue recently affected my organization, and the decision was made to purchase a new platform from another organization that would meet our needs.

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If an organization needs to update its software systems, leaders should complete a risk analysis in order to determine how the options will affect employees and customers. Risk analysis is the process a leader completes to identify the potential threats in making a particular decision and what is the likelihood those threats will materialize if that decision is made (Mindtools 2017). It is impossible to know every possible problem or issue that could arise, but by completing the risk analysis, leaders will have a better understanding of what could happen based on the options available. It is also critical that all stakeholders are involved in this risk analysis. The leader may need to reach out to other departments and people within the organization to fully understand the impact of making a decision for or against a system upgrade.

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One set of decision-making models is the Vroom-Yetton-Jago decision-making models. These models theorize that decision-making and implementation falls on a spectrum between the leader fully making a decision on his or her own to the team making a decision as a whole, and the type of decision-making process a leader uses is based on the decision being made and the time and resources available to that leader (Burns, Sorenson, Goethals, & Sage Publications, 2004, p. 322). I believe these models of decision-making work well when thinking about software updates. This type of decision should be made by getting as much information as possible from all stakeholders involved and then the leader making a decision with that information. This would be considered an “AII” or autocratic II type of decision-making based on the Vroom-Yetton-Jago models, and it could be highly effective if done correctly. While the leader does want to include all relevant information from employees and stakeholders throughout the organization, he or she must make the decision in the end. If the leader made the decision to move to a new software system without consulting with other employees and stakeholders, he or she might miss information that is critical to the success or implementation of the decision. However, the leader would want to avoid giving too much power to others in regards to making a decision about software upgrades. If all employees and stakeholders are given an opportunity to vote and decide on the upgrades, it is likely a decision wouldn’t be made because of many differences in opinion about technology and change. A leader’s best option is to ask for information from others to fully understand the scope of the issue, and then make a decision on his or her own.

References

Burns, J. M., Sorenson, G. J., Goethals, G. R., & Sage Publications, i. (2004). Encyclopedia   of Leadership. Thousand Oaks, Calif: SAGE Publications, Inc.

Mindtools, Ltd. (2017). Risk Analysis and Risk Management. Retrieved       from: https://www.mindtools.com/pages/article/newTMC_07.htm

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Daniel Fortune

Daniel Fortune is a successful business professional, entrepreneur, father, and lover of travel.

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