Managers are often encouraged to listen and collaborate during decision-making, but sometimes, this democratic leadership style isn’t the most effective approach. While inclusivity and participation can empower employees, certain decisions require managers to be more direct. Understanding the balance between executive authority and team involvement can transform a slow, confused organization into an efficient and motivated one.
Executive Vision vs. Day-to-Day Decisions
A company’s vision is the purpose and direction of a company, which should largely be shaped by executive leadership. Long-term goals set the path for the organization and require a high-level understanding of the environment in which the organization operates, including markets, competitors, and brand identity. While gathering input from various department heads may provide valuable insights, the ultimate decision should fall within the scope of executives.
Vision setting and other large-scale corporate decisions are not situations well suited for a democratic process. Working to incorporate too many opinions can dilute focus and prevent decisive action. It is the responsibility of leadership to guide the organization toward a strong, cohesive future, even if decisions aren’t popular in the short term.
With all this being said, managers should still gather feedback. Successful leaders consistently gather data from employees, not to vote on strategies, but to inform them. Surveys, one-on-one conversations, and management insight tools can support leaders in gathering information from their workforce.
When to Leverage Democracy
While strategic decisions may require top-down leadership, day-to-day decisions often benefit from a democratic approach. Processes that affect how employees do their work, such as communication channels or workflow tools, are great opportunities for collaborative decision-making.
When employees are involved in decisions that directly impact them, they are more likely to feel empowered and valued within the organization. Consequently, this can improve retention, morale, and overall productivity. Conversely, top-down decisions about operations can lead to frustration and inefficiency if they don’t reflect the needs of the workers these decisions are impacting.
Consider a team that is told to adopt a new communication software. An executive decision might prioritize cost without considering the ways in which workers actually utilize their communication channels. However, if the team is involved in a trial period or able to provide their input to select a communication software, there will be better adoption and reinforcement of a culture of trust.
Evaluating the Level of Democratic Input
To decide if a decision should involve democratic input, weigh the potential benefits and drawbacks of involving employees in each scenario. Here are some things for managers to consider when weighing the pros and cons:
Pros of a Democratic Process
- When people help shape a decision, they have an increased sense of ownership and buy-in.
- Employees closest to the work often have a perspective that upper management lacks, so there may be outcomes more catered to the needs of employees.
- Involvement fosters psychological safety and shows that leadership trusts their team.
- The organization will have higher morale when employees feel recognized and understood.
Cons of a Democratic Process
- Gathering input takes a lot of time and can delay the decision-making process.
- Without clarity, teams may assume decisions are up for debate when they aren’t, which can confuse roles.
- Not all input from employees is informed or strategic, so democracy doesn’t guarantee good decision-making
- Trying to satisfy everyone can result in a solution that ultimately doesn’t satisfy anyone.
Using some of these points of consideration, managers can weigh the stakes and evaluate the context to better inform their decision-making approach. When making decisions, managers may struggle to communicate with their employees about how and why a decision was made. These are some tips that managers can use when implementing a decision-making process.
- Be transparent about decision-making boundaries. Clearly outline which areas are open for collaboration and which are leadership calls. This avoids false expectations and builds trust with employees.
- Use strategic feedback mechanisms. Even when decisions are made top-down, implement mechanisms to gather insights from various levels of the organization. Leveraging anonymous surveys or roundtable discussions can allow executives to make decisions that work throughout the organization.
- Pilot large-scale decisions before implementing. For operational changes, create a test group to try a new tool or process and learn from their experience before doing a company-wide rollout. This may not be feasible for all large-scale changes, but it can be incredibly informative of actual feasibility.
- Foster a culture of accountability and respect. Democratic processes work best in environments where individuals are informed and respectful of differing perspectives. Collaborative decision-making processes won’t be effective if those involved in deciding don’t value others' opinions and consider them.
- Invest in leadership development. Teach emerging leaders how to engage their teams in decision-making and when it is appropriate to do so. Sometimes leaders will need to make difficult decisions, and emerging leaders should be prepared to handle such situations.
Utilizing democratic decision-making styles is not suitable for every situation. Managers should consider the context of a decision and weigh the benefits and drawbacks of leveraging a more collaborative approach. The key for managers is to find a balance that allows for efficient and aligned with the company’s larger mission.
A well-functioning organization uses more directive leadership when supporting the company’s vision, but gives a voice to employees when decisions relate to day-to-day operations. Managers who understand the difference between leadership and collaboration create more effective organizations.