Organization
Decision making is critical to a corporation. Organizational success depends on making hundreds or even thousands of decisions every day, and those decisions need to be of the highest quality in order for the organization to thrive. In a seminal work, Simon (1979) built the case that rational decision-making was essential to businesses. Data could drive decisions and the analysis of the data should reflect calm, reasoned analysis rather than gut feelings or other means of making decisions.
However, perfect rationality is not typically possible, and managers must resort to what is known, accepting the various constraints that limit the ability of the manager to obtain perfect information on which to make a decision. At lower levels, decisions are simpler, and it might be possible to obtain the needed data, but at higher levels, decision-making is often complex, and the information ambiguous. This reality challenges the ability of a manager to make a decision, as the manager is being called upon to make a reliably good decision under condition of significant uncertainty. Having people in these types of positions who can perform well is essential to the success of the organization. First, these need to be people who recognize the constraints that they face and make decisions accordingly, rather than delaying the decision-making process indefinitely. Further, the ability of a manager to interpret ambiguous information effectively is an essential skill.
Once a decision has been made, it is necessary at that point to pursue the chosen direction, by setting out clear strategy that implements the decision. Second-guessing and perpetual backtracking again make it difficult for the organization to thrive, as it will have no sense of direction, waiting for perfect information that will never materialize. There will often be a depth of post-decision dissonance, and how the manager handles this is important. The manager should be able to address post-decision dissonance and ensure that it is not a matter of new information making the decision look bad -- the manager will be faced with multiple post-decision opportunities to backtrack, and should be able to evaluate them rationally to understand which are meaningful and which are just noise.
Leadership and strategy are critical elements of the business, closely linked because the leader formulates strategy and because the strategy has to be supported by the leader. Strategy is the direction in which a firm wishes to compete; what structure it will, in what markets it will compete, where it will operate geographically are all elements of organizational strategy. A business needs a clear sense of what it does, how it does it, and where it does it, in order to have the sort of focus typically needed to excel.
There are many different types of leaders, but each is charged with setting strategy and ensuring that the organization is in a position ot execute that strategy effectively. There are many types of leaders who are not effective, but rather just people put into leadership positions without having any genuine leadership capabilities. A true leader has a strong value system, desires to make an impact, but Positive associations have been found between ethical leadership, for example, and organizational outcomes (Eisenbeiss, et al., 2015), illustrating the important role that the leader plays in setting the tone for the organizational culture, and ensuring that the company has a strong ethical compass. When these things are in place, it makes the organization more ready to pursue whatever strategy that the leader proposes, because the organization's followers have respect for the leader and take their cues from the leader.
There are different types of diversity, and they can all add value to an organization. Some of the different ways that diversity is conceptualized are demographic diversity, cultural diversity and diversity of thought. The former is easy to measure, the latter roughly easy to measure, the latter nearly impossible. But the former two are just proxies for the third -- an organization benefits from the input of different ideas, different thought processes, different ways of seeing the world. Studies have shown that diversity matters, not just at the customer-facing levels of the organization but at higher levels of management as well, and mainly because the diversity in outlooks and thought can spur new ideas, more innovation and help the organization to solve problems more quickly and effectively (Miliken & Martins, 1996).
Another reason for encouraging diversity in organizations is to reverse patterns of exclusion -- the social justice angle. It is important, however, the diversity initiatives...
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