Do you wonder why people question some decisions but not others? Were you ever surprised to learn that others were not enamored of a decision that you made? In my experience, there are two primary reasons why decision-making goes wrong; both have to do with the process rather than the outcome. That is, either the process is misunderstood, or it is perceived as unfair. Fortunately, there are easy preventive measures you can take to avoid both these scenarios.

Decision-making secret #1: Tell others up front HOW the decision will be made

Time and again, I have seen managers run into trouble over decisions they make, not because of the decisions themselves, but because of misaligned expectations about HOW the decisions would be made. Here’s a common scenario: a manager asks employees for feedback about a workplace decision. Employees provide the information, only to learn later that the manager’s decision was contrary to their advice. They are unhappy, feeling the manager has wasted their time and disrespected their expertise, while the manager is bewildered by their reaction.

This is a classic case of not clarifying and aligning expectations up front. No doubt the employees assumed that the manager would take their advice, while the manager’s plan was to listen, then make the decision she believed to be best.

The secret in this case is to state clearly in advance how the decision will be made. Here are some examples of what I mean:

• Manager makes the decision on her own without soliciting employees’ input.
• Manager solicits employees’ input, considers the feedback, and makes the decision based on what she believes will result in the best outcome.
• Manager solicits employees’ input; the decision is based on consensus.
• Manager has employees make the decision.

None of these examples is right or wrong per se; in fact, one person may use all of these alternatives at different points in time. The best choice depends on factors such as the situation at hand and the impact the decision will have. For example, in times of emergency, the manager is not likely to ask for employee input. The point is that the employees’ expectations about how the decision will be made must match those of the manager.

Decision-making secret #2: Ensure the decision-making process is fair

One of the best kept secrets in the workplace is the power of procedural fairness, a topic on which I have written extensively. Briefly, research and experience tell us that even when people do not like or agree with a decision, they will accept it IF they believe the rules by which the decision was made were fair. What this means is that the decision-making process must have these characteristics:

• Be free of bias
• Be transparent
• Allow for meaningful input from stakeholders
• Identify clear decision criteria (with objective standards if possible)
• Be communicated in advance to everyone involved
• Follow the stated criteria
• Justify clearly any exceptions to the rules

The bad news is that managers often make decisions that are unpopular because of situations over which they have little or no control (e.g., no pay increases due to poor economic conditions). The good news is that leaders always have control over the processes by which they make those decisions. The best news is that when employees perceive the process as fair, they will accept the decisions.

Now that you know the “secrets” of effective decision-making, give them a try! And let us know how they work for you.

© 2010 Pat Lynch. All rights reserved.

In my interview with one of the psychologist experts in my series about how to set and implement priorities, Dr. Michael Seskin and I agreed that in general, most people in the U.S. are ill prepared to handle emotions, and employees who become emotional, in the workplace. This shortcoming has been highlighted by the recent economic downturn, which has thrown a monkey wrench into millions of lives and resulted in chaotic emotional situations that cannot be confined to non-working hours.

Perhaps the silver lining to this cloud is that the need to treat employees as human beings with feelings and emotions that must be addressed now is on the table. Organizations are going to have to start dealing with the fact that people need to be able to go to someone in the workplace with their concerns, anxieties, and fears. Because first-line supervisors interact and work with employees constantly, they are the most logical people to whom workers turn when they (employees) are distressed or have difficulties. In this sense, Dr. Seskin says, the supervisors are like first responders. Unlike fire fighters or police officers or emergency personnel, who receive extensive training before they go out on the job, however, supervisors often find themselves ill-equipped to handle workplace challenges and difficulties. Their organizations simply fail to provide them with the tools necessary for them to be effective, especially when they must manage employees who are in distress. In that sense, organizations are failing both employees and supervisors.

So what should management do to ensure that their workplace first responders are ready to rise to the challenge at a moment’s notice? Here are four suggestions to get started:

1. Create an environment that encourages openness to dialogue and discussion.

Employees need to be able to express their concerns in appropriate ways, and to be referred to resources where they can receive assistance. People who are preoccupied with fears and anxieties cannot possibly be productive workers, so it is in employers’ best interest to help them address the issues that are diverting their attention. Make sure your supervisors know how to create an environment in which employees feel it is safe to ask for help.

2. Ensure that supervisors have the tools they need to be successful.

It doesn’t make sense to dispatch emergency first responders who are untrained or who lack the necessary equipment, yet many organizations take an equivalent action when they fail to properly equip their supervisors. My experience is that training for supervisors often ignores or minimizes the human aspects of the workplace. Though supervisors are not counselors or therapists, they should learn how to address a variety of emotional states appropriately and effectively. When faced with a situation that goes beyond their expertise, they need to know what resources they can bring to bear to help the individual – e.g., referral to an employee assistance program (EAP).

3. Provide specific training in active listening.

Supervisors’ abilities to listen effectively to people’s concerns and struggles and to respond appropriately are critical to organizational success. Developing the capacity to listen creates an environment in which we acknowledge one another as human beings rather than as “resources” through which goods and services are provided. In order to evaluate a situation accurately, first responders must be able to process, assess, and address what they hear.

4. Establish on-going support systems for supervisors.

I do not know of any individual who automatically became an expert in how to manage people when he/she was promoted to a supervisory position. Nor do most people retain skills without using them. Management should institutionalize developmental opportunities for supervisors that go beyond training – e.g., create a mentoring program, provide one-on-one coaching, or develop networks across the organization. These programs help supervisors at all levels, not just those who are new to management.

Employees are key to organizational success. Supervisors interact most closely with workers and are best positioned to intervene quickly when things go awry. What are you doing to support your workplace first responders?

© 2010 Pat Lynch. All rights reserved.

I was with some small business owners recently who were trying to establish formal, equitable compensation systems for their companies. As a result of our conversations, I came up with some suggestions that every employer, regardless of the size of his/her organization, should consider.

1. Align pay with organizational goals.

Make sure that the things you are rewarding support the organization’s mission and goals. For example, if you want employees to act as a team but you pay them based on their individual performance, guess what you’ll get?

2. Make sure you communicate the message you want your compensation system to send.

Every compensation system sends a message to employees. Make a conscious decision about what message you want to send, and ensure all elements of the system are aligned with it.

3. Think broadly.

Define “compensation” as including more than just pay and benefits. I encourage my clients to include everything that rewards or recognizes employees for their performance.

4. Leverage the power of recognition.

In my experience, recognition unfortunately is a “best kept secret.” Find out what non-monetary forms of recognition are meaningful to your employees (e.g., autonomy, challenging work, the ability to learn new skills) and incorporate them liberally into your total rewards system.

5. Connect rewards with performance that employees can control or influence.

Few things are more de-motivating to employees than being offered rewards for achieving outcomes over which they have little or no control. You are better off not offering any reward at all.

6. Watch the timing and form of rewards and recognition.

Desired performance should be rewarded as quickly as possible so employees see the cause-and-effect relationship, and are more likely to repeat the behavior. Annual bonuses, such as profit sharing plans, are notoriously ineffective in helping employees make this connection (except possibly at a senior level).

7. Establishing a clear line-of-sight is priceless.

You have established a clear line-of-sight when every employee is able to articulate clearly the contribution he/she makes in achieving your organization’s mission or goals. When this happens, you will have a workplace in which people are engaged, motivated, committed, creative, and have high morale. Money cannot buy this type of environment.

8. Ensure the compensation system is procedurally fair.

Managers often cannot control the outcomes of the compensation system – i.e., the amount of pay they can provide. However, there is one key factor over which they always have control, namely the process by compensation is determined. When employees perceive that the process by which they are paid is fair – i.e., it is transparent, free of bias, and allows for their input – they will accept the outcomes even when they are not entirely happy with them.

9. Formalize the system, then don’t mess with it.

Once you have established your pay structure(s) formally and identified clearly how and when pay and other forms of rewards will be changed, do not change it arbitrarily. Your compensation system is a reflection of management’s strategy and its philosophy about how it values its employees, both of which should be relatively stable.

10. Implement an excellent and measurable communication plan.

No compensation system can succeed without a clear, concise, and comprehensive communication plan. Two measures of such a plan: (1) every supervisor and manager is able to explain it accurately and clearly to their staff, and (2) individuals can articulate how and on what bases they are rewarded and recognized.

© 2010 Pat Lynch. All rights reserved.