LEADERSHIP
ARIZONA STATE UNIVERSITY
SOC 324 - SOCIOLOGY OF WORK AND ORGANIZATIONS
SPRING 2024
Introduction:
An organization is a collection of several individuals who are formally organized,
driven, and coordinated to achieve a common goal. In order for an organization to achieve its
goals, it must be driven by a leader. Everyone is born a leader, at least a leader for himself. In
leading an organization, one must have leadership skills, power, and authority. These three
things are related because leadership is a process where a person leads, guides, influences,
and controls the thoughts and behavior of others who are under his supervision to do
something in achieving predetermined goals through the power and authority he has. This
implies that the leadership process can be done either by force or without force in any
situation. Leadership and management are different things where leadership is part of
management. Nevertheless, these two things are interrelated and cannot be separated from
one another. Management carries out the management functions of planning, organizing,
directing, and supervising while leadership is one of the ways in the management function of
directing. A leader can be a manager although it is not necessary to carry out all management
functions but not all managers have the soul of a leader. Leadership skills are essential for
achieving organizational goals. An organization will develop, progress and remain
competitive if its leaders are responsive to changes that occur, able to adapt to a dynamic
environment, able to anticipate and be proactive towards various forms of change.
This chapter discusses leadership in organizations, the definition of leadership,
leadership theories, leadership styles and leadership ethics.
Leadership in Organizations
Any and all organizations of any type must have and require a top leader (top leader)
and / or top manager (top manager) who must carry out leadership and / or management
activities for the entire organization as a unit (Nawawi, 2003). Leadership is likened to the
head of a body in an organization, which if it does not take place properly will affect the
work of the entire organizational body itself. The quality of the leader is often considered the
most important factor in the success or failure of the organization (Bass 1990 in Menon
2002). When the organization develops and succeeds, it is the leaders who are seen as the
controllers of the organization, on the other hand, if the organization is unable to survive or
collapse, the leaders will be considered as the cause of failure.
There are several important concepts in organizational leadership: leader, influence,
members, and goals. This concept underlies the meaning of leadership in organizations.
Leadership is the process of a leader's influence on members in an effort to achieve
organizational goals because the leader is the driving force in the organization. This means
that without a leader, the organizational goals that have been set will not be achieved because
each member will only move or try to achieve their personal goals.
A leader will try to influence members to perform tasks in accordance with the job
description set by the organization. For this reason, a leader is expected to create and support
a conducive work atmosphere and culture so that it has a positive influence on its members
such as giving praise and appreciation, taking corrective action, providing punishment or
pressure for certain things, or helping members if needed. The existence of leaders in
organizations is also inseparable from conflict. Conflict in the organization is a conflict
between the leader and members, between members, or between groups. Every individual in
the organization has the potential to create conflict due to limited resources and differences
such as job descriptions, position/status, perceptions, and so on, such as when employees do
not do the work and throw responsibility to other employees or when leaders cannot carry out
their duties and roles properly. The leader's role in this case is to minimize and control
potential conflicts, act as a mediator, or turn conflicts into challenges.
Basically, conflict will always exist, difficult to eliminate, and the level of
conflict that occurs will vary. Conflicts that occur in organizations will train a person's
leadership traits to become an experienced leader who is able to know the reasons and causes
of conflict, types and strategies of conflict, and actions to resolve a conflict in order to
achieve organizational goals. Conflict is negative because it is a problem but conflict will
lead to creativity and innovation in problem solving efforts.
Definition Leadership:
Schermerhorn (2012), defines leadership as:
Leadership is the process of influencing others and the process of facilitating individual and
collective efforts to accomplish shared objectives.
(Leadership as the process of influencing others and the process of facilitating individual and
group efforts to achieve common goals)
Robbins (2003), leadership is:
Leadership is the ability to influence a group toward the achievement of goals.
(an ability to influence a group towards the achievement of goals).
Many definitions of leadership have emerged as a result of the phenomenon of
leadership being the center of attention, including: Schermerhorn (2012), defines leadership
as the process of influencing others and the process of facilitating individual and group
efforts to achieve goals together. According to Robbins (2003), leadership is an ability to
influence a group towards achieving goals while Rivai (2004), says that leadership is the
process of influencing or setting an example to followers through the communication process
in an effort to achieve organizational goals. Based on these definitions, it can be concluded
that leadership is a process and ability to influence others to achieve common goals.
Leaders are individuals who are able to influence members while leadership is the
nature of the application of influence by a member of a group or organization on other
members in order to encourage the group or organization to achieve its goals. A good leader
is not seen from the number of followers or the period of time leading, but seen from the
ability and leadership style that is successful in leading an organization. The success of a
leader in an organization It is not a guarantee of success to lead in other organizations. A
person can become a leader not only because they are driven by their own will but also
developed through education, training, and experience.
Theory Leadership
A leader must understand leadership theory as a reference in an organization. Robbins
(2003), divides theories of leadership into four categories, namely:
1. Leadership trait theories identify six traits that distinguish leaders from non-leaders focusing
on various traits and personal characteristics consistently associated with leadership: ambition
and energy, desire to lead, honesty and integrity, self-confidence, intelligence, and job-
relevant knowledge.
2. Behavioral theories of leadership are theories that suggest that Specific behaviors distinguish
leaders from non-leaders. The theories are:
a. The Ohio State Study. The most comprehensive and replicable theory of leadership
behavior emerged from research pioneered at Ohio State University in the late 1940s.
This study identified two dimensions that explain leadership behavior as described by
employees: initiating structure and consideration. Initiating structure refers to the degree
to which a leader determines and structures his or her own role and that of subordinates
toward the achievement of formal group goals. It includes behaviors that attempt to
organize work, work relationships, and goals. Tolerance is described as the degree to
which a leader tends to have a good relationship working relationship characterized by
mutual trust, respect the ideas of subordinates, and value the feelings of subordinates.
b. Studies from the University of Michigan. Leadership studies conducted at the University
of Michigan Survey Center at the same time as those conducted at Ohio State had the
same goal of locating characteristics of leader behavior that appear to be associated with
measures of performance effectiveness. The Michigan group also divided leader
behavior into two dimensions: employee-oriented leaders and production-oriented
leaders. Employee oriented leaders emphasize interpersonal relationships, give personal
attention to the needs of employees and accept individual differences among members.
Production oriented leaders, on the other hand, tend to emphasize the technical or task
aspects of the job - their main concern being on the completion of their group task, and
group members are a means to that end.
c. Managerial Table. A graphical depiction of a two-dimensional view of leadership styles
was developed by Blake and Mouton. They proposed a managerial grid based on the
"people-centric" and "production-centric" styles, essentially representing Ohio State's
initial tolerance and structure dimensions or Michigan's employee-oriented and
production-oriented dimensions. The managerial table has nine possible positions along
each axis which creates 81 different positions in which a leader's style can reside. This
table does not produce results but rather factors that dominate the leader's thinking in
getting results. Based on these findings, Blake and Mouton concluded that managers
perform best in the 9.9 style, compared to, a 9.1 style leader (task-oriented) or a 1.9 style
(club type leader).
3. Contingency Theory says that leadership effectiveness depends on the situation and others to
be able to isolate these situational conditions. Theories included in contingency theory are:
a. The Fiedler Model suggests that effective group performance depends on the right match
between the leader's style of interacting with subordinates and the degree to which the
situation gives the leader control and influence. Fiedler created an instrument, which he
called LPC (Least Preferred Co- Worker) which intends to measure whether a person is task-
oriented or relationship-oriented. Once an individual's basic leadership style has been
assessed through the LPC it is then important to match the LPC to the individual's basic
leadership style leader to the situation. The three situational factors or contingency
dimensions identified by Fiedler: (1) leader-member relationship i.e. the degree of
compliance, trust and respect members have for the leader; (2) task structure i.e. the degree to
which members' job assignments are structured or unstructured; and (3) power position i.e.
the degree of influence a leader has on power variables such as hiring, firing, discipline,
promotion and salary increases.
b. Path Goal Theory was developed by Robert House who took key elements from Ohio State's
leadership research on initial structure and tolerance, and the expectancy theory of
motivation. The essence of this theory is that it is the leader's job to assist subordinates in
achieving goals and provide the direction or support needed to match their goals with the
overall goals of the group or organization. House, identified four leadership behaviors
namely: (1) The directive leader lets subordinates know what is expected of them, the
schedule of work to be done, and provides specific guidance on how to accomplish the task.
This dimension parallels closely with the Ohio State Studies study, namely the initial
structure; (2) Supportive leaders are friendly and show concern for the needs of subordinates.
This dimension is the same as the Ohio Studies i.e. consideration; (3) Participative leader
consults with subordinates and uses their suggestions before making decisions; and (4)
Achievement-oriented leader sets challenging goals and expects subordinates to perform at
the highest level.
c. The Leader-Participation Model developed by Victor Vroom and Phillip Yetton deals with
leadership behavior and participation in decision-making. Recognizing that task structure has
various demands for routine and non-routine activities, they argued that leader behavior
should adjust to reflect task structure.
The leadership theory proposed by Robbins (2003), is a transactional leader, which is
a leader who guides or motivates their followers towards set goals by clarifying role and task
requirements. There are other types of leaders, namely: (1) charismatic or transformational
leadership, which inspires followers to go beyond their own self-interest for the good of the
organization and who is able to have a deep and lasting influence to their followers. With the
power of their personal abilities, they transform their followers by increasing their sense of
importance and the value of their tasks; and (2) visionary leadership is the ability to create
and articulate a realistic, credible and compelling vision of the future of the organization or
organizational unit that is currently growing and developing.
Leadership Style
In every organization there are leaders who will direct and empower the potential of
organizational members with different leadership styles. In this case, the leader has his own
way of practicing his leadership to obtain adequate influence results. Leadership style is a
person's overall pattern of behavior to influence the behavior of others in doing something. A
person's leadership style can be considered good and appropriate in one organization but is
considered less good and inappropriate in other places.
Nawawi (2003), says that leadership style is the behavior or method chosen and used
by leaders in influencing the thoughts, feelings, attitudes, and behavior of organizational
members or subordinates. According to Rivai (2004), leadership style is a set of
characteristics used by leaders to influence subordinates so that organizational goals are
achieved. It can be seen from the above definition that leadership style is a characteristic used
by leaders to influence their subordinates.
According to Rivai (2004), there are three kinds of leadership styles that influence
subordinates so that organizational goals are achieved, namely:
1. Authoritarian Leadership Style. Authoritarian leadership is also called directive or
dictatorial leadership. The leader gives instructions to subordinates, explains what to do,
then employees carry out their duties as ordered by the boss. This leadership style uses
the power in reaching decisions and developing its structure, so it is power that benefits
most in the organization.
2. Democratic Leadership Style. This leadership style is characterized by a structure whose
development uses a cooperative decision-making approach. In this leadership style, there
is cooperation between superiors and subordinates. Under democratic leadership
subordinates tend to have high morals, can work together, prioritize work quality and can
direct themselves.
3. Free Leadership Style. This leadership style gives full power to subordinates, the
organizational structure is loose, the leader is passive. The main role of the leader is to
provide supporting materials and participate if requested by subordinates.
Leadership styles can be learned and should be applied according to the situation of
subordinates or the environment of the organization. A good leader will switch to several
styles according to the situation of the subordinates and the work to be done. Leaders who
have an authoritarian leadership style consider themselves to have full authority, impose their
will, and have no tolerance for mistakes at work. In reality, absenteeism is high, employee
turnover increases, or performance decreases because they feel pressured and uncomfortable
at work, resulting in a decrease in organizational productivity. This implies that the
authoritarian leadership style is only appropriate in certain situations such as when
subordinates are in the unruly category.
Several studies found that each leadership style has an influence in the company.
Clinebell et al (2013), found that transformational leadership has the strongest impact on
affective commitment, transactional leadership affects affective commitment,
transformational leadership has a significant positive effect on normative commitment,
Transactional leadership has a significant positive effect on continuous commitment,
avoidance leadership has a significant negative effect on affective commitment. Iqbal et al
(2015), found that autocratic leadership is useful in the short term, democratic leadership
style is useful throughout the term, and participation leadership is useful in the long term and
has a positive effect on employees.
Leadership style is used by a leader to overcome or reduce conflicts faced by
individuals in the organization. Conflict is detrimental to the organization but conflict cannot
be avoided or eliminated so that conflict must be managed in such a way that it benefits the
organization. The more appropriate the leadership style applied by the leader to its members,
the tendency for conflict to occur will be reduced or minimum. Sehrawat and Sharma (2014),
found a positive impact of leadership on conflict management while Erzen and Armagan
(2015), found leadership has a small and significant impact on conflict management.
Ethics and Leadership
Ethics are guidelines for doing what is right and not doing what is not right. In an
organization, leadership must be based on ethical principles. Ethical leadership will influence
the behavior and actions of leaders because of the limitations of these ethical principles.
However, the application of ethical principles also applies to members so that a common
perception is needed in the organization. This common perception is poured into the form of
an organizational code of ethics that functions as an organizational monitoring tool. A written
code of ethics is a guideline for ethical and social behavior that is responsible for all members
of the organization. In implementing the code of ethics, the leader becomes a role model for
ethical behavior. Furthermore, both leaders and members must comply with the code of
ethics and Violators of the code of ethics must be sanctioned or punished.
Wibowo (2016) concluded from several studies that there are at least three dimensions
that can influence the growth of ethical leadership from a leader in an organization, namely
behavioral integrity, moral reasoning, and social distance. Furthermore, Wibowo asserted that
the more integrity of the organization's leaders, the more ethical leadership will develop in
the organization and the higher the morality of the organization's leaders, the more ethical
leadership will grow in the organization.
There are a number of studies that show the influence of servant leadership in an
organization such as ethical leadership behaviors can encourage increased job satisfaction
and employee commitment to the organization (Toor and Ofori, 2009), emphasizing the role
of managers' ethical leadership behaviors in promoting work engagement through the
creation of employee relationships that are based on employee engagement. on trust
(Engelbrecht et al. 2014), and servant leadership affects organizational commitment (Ilham,
2014).
Leadership that considers the ethical point of view is servant leadership. Servant
leaders are leaders who influence, serve, prioritize their members, do not use power, and go
beyond their own interests. According to Robbins and Judge (2013), the behavioral
characteristics of servant leaders are listening, empathizing, persuading, accepting
stewardship, and actively developing the potential of their members.
A number of research results show the role of servant leadership in organizations such
as: significantly affecting organizational culture, organizational commitment, OCB and
employee performance (Hawiki, 2016) or positively affecting employee engagement (Carter
and Baghurst, 2014).
DECISION MAKING:
Every organization will face complex and rapidly changing external and internal
environmental changes so that the organization must make many quick and precise decisions
so that organizational activities can run smoothly. A decision is something that is determined
based on factors of consideration, thought, and research that serve as guidelines for further
action. Making decisions is not easy but must be inevitable and tends to be done. No
managerial function, namely planning, organizing, directing, or controlling can be done
without decision making. Decision-making in organizations occurs at all levels but is a
central role of the leader because every decision produced will be important, long-term, risky,
and affect the organization and the organization's environment. Decision-making that Good
decisions are vital because they determine how the organization solves problems, allocates
resources and achieves goals. This means that organizational members, especially leaders,
must have the skills and knowledge to make decisions. In the decision-making process there
is often bias, a tendency of preference to certain results, so it is not neutral and not objective.
This can occur due to a constantly changing environment, information uncertainty, risk, or
conflicts that conflict with decision making.
This chapter discusses decision-making, biases and errors in decision-making,
decision-making processes and models, decision types, and decision-making styles.
Decision Making
Decision making is a process that results in one choice from several alternative
options. According to Schermerhorn et al (2012), decision making is the process of choosing
a course of action. in the face of a problem or opportunity. The results of decisions can be in
the form of actions that stem from the existence of problems, alternative problem solving, and
affect the organization. The quality of the decision depends on the knowledge, experience,
perception and situation of the decision maker supported by complete information and quality
communication. In a study by Negulescua and Doval (2014), it was found that most of the
managers interviewed used alternatives with possible related outcomes when making
decisions and even if they did not have enough information, they chose the best alternative
based on risk assessment and effective outcomes.
Decision making occurs as a reaction to a problem where there is a difference
between the current state and the desired state so that it requires consideration of several
alternative actions. The main factors for good decision-making are those that use thinking and
feeling in every decision. The most ethical decision-making is based on cognitive processes
while feelings (moods and emotions) have an important effect on decision making. Heidari
and Ebrahimi (2016), found there was a relationship between critical thinking ability and
decision-making skills through critical thinking scores and decision-making scores (P <
0.05).
People who are in a positive mood and emotions will make good decisions and find
good solutions to overcome problems. Virlics (2014), found that mood affects investment
decision-making, and positive and negative moods may have the same effect on investment
decisions while Hu et al (2015), found that emotions have a significant effect on risk
decision-making (generally, positive emotions cause participants to be more prone to risk
than negative emotions).
Bias and Error in Decision Making
Decisions are a must-do although not all decisions can be made well. To minimize
decision errors, leaders rely on experience (intuition), hunches, or rules of thumb. Intuition
relates to a background of past experience, hunches do not, while rules of thumb are explicit
statements that limit what can or cannot be done.
Some organizations use software assistance programs namely Decision Support
System (DSS) such as Microsoft Excel, Lotus 123, FoxPro visual, Analytical Hierarchy
Process (AHP) in assisting decision making. Khodashahri and Sarabi (2013), compared
decision support systems (DSS) and other information processing systems in the use of DSS
to assist semi-structured and single decisions and have rapid changes and ease of use and
access to information by managers.
The complexity of the problem and the limited ability to rationalize cause some
decision making to be done using general guidelines and some information.
but results in possible biases, errors, and inaccuracies in the decision. There are some
common biases in decision-making.
Table 11.1: Decision Making Bias (Robbins and Judge, 2013)
Bias
Description
Over confidence bias
Bias)
Tendency to be overconfident in
assessing personal decisions
Anchoring Bias
Tendency to rely on prior information
and not align to information
Next
Confirmation Bias
A tendency to be selective about
information that reinforces past
opinions, and prune
opposing information
Availability Bias
The tendency of grounded
decision at information
information that is easy
to get and find.
Escalation of
Commitment
(Escalation of
Commitment)
Tendency individuals
increasingly fixated
on the decisions made,
even after it was proven wrong
Randomness Error
The tendency to believe that one can
predict the outcome of events
unintentional.
Risk Aversion
Tendency to prefer certain outcomes
rather than risky outcomes
Hindsight Bias
The tendency to pretend to believe you
have accurately predicted the outcome
of an event, after the outcome has
actually occurred.
known.
Errors in decision making can have a negative impact, harming the organization and
even fatal, especially decisions made at critical times and in a hurry. For example, the
recruitment process. Employee recruitment is a process carried out by the organization to
obtain additional employees by finding suitable and qualified human resources for the job.
Decision errors can be related to the absence of a job description or a clear recruitment
process resulting in wasted effort, time, and money on unsuitable candidates. In addition,
there are several factors that can lead to decision failure, one of which is human error.
Shahriari et al (2008), found that five human errors occurred at the alternative evaluation
step; ignorance or negligence, overconfidence, underestimation, moralizing, and failure to see
which led to non-achievement of goals.
Decision-Making Processes and Models
In the continuity of every organizational activity there will be situations where one or
more decisions must be made. Decision making is a series of selection processes among the
various alternatives produced. Robbins (2003), says that optimal decision making is rational,
namely making consistent and maximum value choices within specified limits.
Furthermore, Robbins (2003), says that the choice is made by following a six-step
model, namely: defining the problem, identifying decision criteria, weighing criteria,
generating alternatives, assessing all alternatives on each criterion, and calculating the
optimal decision. The following is a description of the decision-making process:
1. Defining the problem. This model starts by defining the problem. A problem occurs
when there is a mismatch between an existing state and a desired state. Many poor
decisions can be traced to decision-makers ignoring the problem or incorrectly defining
the problem.
2. Identifying decision criteria. Once the decision maker has defined the problem, it is
necessary to identify the decision criteria that are important in solving the problem. At
this stage, the decision maker determines what is relevant in making the decision. This
step brings the decision-maker's personal interests, values, and preferences into the
process. Identifying criteria is important because what one person thinks is relevant may
not be to another. Also keep in mind that any factor not identified in this step is
considered irrelevant to the decision-maker.
3. Weighing the criteria. The criteria identified are rarely all equally important so the third
step requires the decision maker to weigh the previously identified criteria in order to
give them the correct priority in the decision.
4. Generating alternatives. The fourth step requires the decision maker to generate
alternatives that might be successful in solving the problem. No attempt is made in this
step to assess the alternatives, only to list them.
5. Assess all alternatives on each criterion. After the alternatives have been generated, the
decision maker The decision maker must analyze and critically evaluate each alternative.
This is done by assessing each alternative on each criterion.
6. Calculating the optimal decision. The final step in the model requires calculating the
optimal decision. This is done by evaluating each alternative against the weighted criteria
and selecting the alternative with the highest total score.
Since decision making is a process, the existence of a decision-making model will
help decision makers make quick and correct decisions. There are two alternative approaches
to decision making, namely: classic and behavioral (Schermerhorn, 2012).
1. The classical decision model views people as acting in a world of complete certainty.
Behavioral decision models accept the notion of bounded rationality (the concept of a
person's finite in processing information and time) and suggests that people act only in terms
of how they feel about a given situation. In short, in the classical decision-making model,
decision-makers act in a certain environment where the problem is clearly defined, all
possible alternative actions are known, and consequences are clear that allow for an optimal
decision that provides the best solution to a problem.
2. The behavioral decision-making model sees decision makers only acting in terms of what
they feel about a particular situation. Due to cognitive limitations that slow down the ability
to process information, acting decision makers in behavioral models tend to choose the first
alternative that appears to satisfy them.
Figure 11.1 shows that managers act rationally in an environment of certainty where
the problem is clearly defined, all possible alternative courses of action are known, and
consequences are clear. This allows for optimal decisions that provide the absolute best
solution to a problem. Behavioral decision models view decision makers as acting only in
terms of how they feel about a given situation. Due to cognitive constraints that limit
information processing capabilities, managers act with the following bounded rationality
where things are interpreted and understood as perceptions in the context of a particular
situation. Decision makers in behavioral models tend to choose the first alternative that
appears satisfactory to them.
Decision-making can also be based on intuition or feelings resulting from a series of
experiential processes but has a subjective nature. Intuitive decision-making occurs due to the
limited information available. According to Robbins (2003), intuitive decision making is an
unconscious process created from filtered experience. This means that rational decision
making is complementary to intuitive but the feeling aspect is more dominant. Khatri and Ng
(2000), found that intuitive processes are often used in organizational decision making where
the use of intuitive synthesis is positively related to organizational performance in unstable
environments, but negatively in stable environments.
Type Decision
Generally, a decision is made to solve a problem. This means that every decision is
made to achieve a goal. The type of decision in an organization can be based on several
things. According to Robbins and Judge (2012), there are two types of decisions, namely
programmed decisions and unprogrammed decisions. Programmed decisions are made as a
standard response to recurring situations and routine problems. These decisions deal with
things that decision makers have already experienced. Basically, these decisions apply
alternatives that are known to be appropriate for situations that occur frequently.
Unprogrammed decisions are specially conceived or customized to fit unique
situations. These decisions address new or unexpected problems that demand a customized
response. While past experience can help address competitive threats, quick decisions require
a creative solution based on the unique characteristics of the current market situation.
The most extreme type of unprogrammed decisions are crisis decisions where
unforeseen problems threaten major losses and disaster if not resolved quickly and
appropriately. Almost every organization develops a formal crisis management program by
training managers in crisis situations, assigning people to crisis management teams, and
developing crisis management plans to deal with various contingencies.
A decision will be considered wrong when the decision maker does not take into
account the risks and uncertainties of the environment or does not consider the various
alternatives available. Types of decision-making can also be based on certainty, risk,
uncertainty, and conflict situations with the following descriptions:
1. In a situation of certainty, the organization is in an ideal situation. Leaders can make accurate
decisions because they have complete information and the consequences of each alternative
are known.
2. In a risk situation, the organization estimates the likelihood (probability) of each consequence
selection of alternatives because the outcome of decision-making cannot be known with
certainty.
3. The organization is in a situation of uncertainty where the outcome of the decision is
completely unknown because it has never happened before (first time) so it is necessary to
collect information to make several alternative decisions to determine the probability value.
4. The organization is in a conflict situation if the alternative decision that must be chosen
comes from the conflict of two or more decision makers. This situation can be equated with a
risk situation because it is in an uncertain situation but can make the probability of the
possibility of these conditions occurring.
Determining the results of decisions in the organization can be done by a leader or
several leaders. A leader will find it easier to make decisions without having to wait or
involve others in the decision-making process. In addition, the process is faster and more
precise, especially in a state of urgency. However, if there is If the decision-maker makes the
wrong decision, the blame will fall on that person and can lead to conflict if they face
obstacles with other people. This is different if the decision maker consists of several people.
The results of this decision involve many people, are binding, and cannot be contested. The
results of the decision are based on mutual consent or agreement through majority decisions,
acclamation, voting, or deliberation for consensus. In the event of a wrong decision, the
responsible parties are all those who agreed on the results of the joint decision.
Decision-Making Style
In making decisions, each individual will approach each problem in different ways.
Decision-making style is more indicative of the attitudes and behaviors shown in solving
problems. Robbins and Coulter (2007) state that there are two dimensions to decision-making
style. The first dimension is the way of thinking. Type Rational thinking views information
in an organized manner and ensures that it is logical and consistent before making a decision.
Intuitive thinking types do not necessarily process information in any particular order but are
content to see it as a whole. The second dimension describes a person's tolerance for
ambiguity. Low ambiguity types have consistency and order to the way they organize
information so that ambiguity is minimal. On the other hand, some are high ambiguity and
are able to process multiple thoughts at once.
1. Directing style. This style type has a low tolerance for ambiguity, is rational in its
thinking, efficient, and logical. Directing style types make decisions quickly and focus
on the short term. Speed and efficiency in making decisions often result in making
decisions with minimum information and by assessing only a few alternatives.
2. Analytical style. Decision-makers with this style have much more tolerance for
ambiguity than directive style types. They want more information before making a
decision and consider more alternatives than directive-style decision-makers. Analytical
decision makers are characterized as decision makers who careful with the ability to
adapt or deal with unique situations.
3. Conceptual style. Individuals with a conceptual style type tend to be broader in their
outlook and have many alternatives. They focus on the long term and are excellent at
finding creative solutions to problems.
4. Behavioral style. Decision-makers with this type of style are very good at working with
others. They take an interest in the achievements of their subordinates and are very
receptive to suggestions from others. They often use meetings to communicate even
though they try to avoid conflict. Acceptance by others is important for behavioral
decision makers.
Although these four decision-making styles are distinct, most managers have more
than one style in terms of dominant and alternative styles.
Norsusilawani (2014), studied the decision-making style approach in resource
allocation that affect perceptions of organizational effectiveness and found that
rational/collegial decision-making styles positively affect organizational effectiveness while
autocratic/political decision-making styles negatively affect organizational effectiveness.
Decision Making Ethics
In every decision-making process, organizations include ethics as a key consideration.
In other words, the organization applies moral considerations in every decision-making
process. This is due to the fact that every decision must refer to the interests of many people
so that every decision or action taken must have consequences for others. Someone who
makes decisions for personal interests can lead to organizational failure. A decision is
considered ethical when it is legally or morally acceptable to all members of the organization,
but the application of decision-making ethics can cause negative feedback.
As in general decision-making, ethical decision-making is also based on high-level
cognitive processes but there are other views such as the influence of emotions that can affect
unethical behavior. Gaudine and Thorne (2001), developed a model that describes how
emotions influence components of an individual's ethical decision-making process. The
model shows that certain emotional states affect an individual's tendency to identify ethical
dilemmas and that individuals who experience arousal and positive affect can overcome
ethical dilemmas in ways that are consistent with more advanced cognitive moral structures.
Selart and Johansen (2011), meanwhile, found that stressful situations have a greater impact
on ethical action than on the recognition of ethical dilemmas, especially true for situations
involving punishment and lack of reward.
