THE DECISION-MAKING PROCESS AND THE PARTICIPATION OF WORKERS

The definition Decision making is the process of making choices from a set of alternatives, in order to achieve organizational or managerial objectives or goals, based on gathering information, and assessing alternative resolutions. Decision making process is continuous and indispensable component of managing any company/organization.

Two forms of decision-making At company level we can find 2 types of decision-making approaches: Top-down decision making process Bottom-up decision making process

Top-down decision-making process Is the decision-making process focused on the authority of company's top management: The higher level of the hierarchy in the company makes the decision The decision is passed down to middle managers The decision is implemented at workplace, to all employee levels

Bottom-up decision-making process Is the decision-making process focused on the participation of employees: The employees participate with/make proposals and suggestions to important topics The proposal/consultation is passed up by middle managers The decision is formalized by the higher level of the hierarchy in the company

The employee involvement The Top-down decision-making is the approach used by many companies, considering the relatively fast and easy implementation. The current tendency strongly supported by trade unions and other worker representation bodies is to move towards the Bottom-up approach, which allow an increased participation of employees in decision-making at company level.

Identify the alternatives Identify the problem Review the decision Collect information Take action Identify the alternatives Make the choice Assess the evidence The 7 steps of decision-making process

The role of middle managers For both types of decision-making approaches, the middle managers (or team leaders/office coordinators) play the key role at each step of the process by: Properly communicate the decisions and inform on the implementation procedure (for Top-down structures) Proactively intermediate the consultation and support the participation of workers (for Bottom-up structures)

The role of the trade unions The decision-making is the most important process taking place in the company which involves all levels of employees and affects all activities. As main workers representatives, the trade unions, irrespective of existing decision-making approach, have been developed strategies for increase the employee involvement and promote the benefits of participation. The collective bargaining is the main tool for increasing the worker participation and the informative/training activities must be the means to prepare the employees for an active role and increased responsibility in their companies. Therefore the trade union organizations (both at sector and company level) need coherent and coordinated action plans to reinforce their position of social and labour interlocutors. The role of the trade unions

The transition towards employee participation The transition towards Bottom-up structures requires a strong support of social partners and a proper cooperation between workers and management in order to: Inform correctly all parts involved at each step of the process Develop/create the consultative bodies Adapt the existing structures to a both-sides communication flow Educate/train for competent participation Stimulate and support the conscious responsibility Enhance the team work and organizational culture Permanently assess and improve the process The transition towards employee participation

The challenges of decision-making process Each step of the decision-making process includes a series of challenges that need to be tackled, in order to ensure positive results and smooth functioning: Step 1 (the problem): misidentify the problem or the aspect to be decided on can lead to useless efforts Step 2 (the information): too much or not enough information can both affect the process Step 3 (the alternatives): less or too many alternatives can limit or disperse the resources Step 4 (the assessment): the level of training and assessment competence of the parts involved define the quality of arguments Step 5 (the choice): the level of authority and responsibility condition the decision Step 6 (the action): inflexible or unorganized structures can affect the implementation of decision at all levels Step 7 (the review): is usually skipped and this prevents the correct evaluation results and eventually the entire process The challenges of decision-making process

Common mistakes in decision-making The most common mistakes when making a decision in company, despite the Top-down or Bottom-up functioning are: Rush in or delay the decision (the right moment to decide is essential) Lack of trust between the parts (you need each other to make it work) Ignore cultural and emotional aspects (if doesn´t feel good, usually it isn´t) Prioritize the expertize (there is no all-size recipe of success) Minimize the partnership (the agreement must be reached, not imposed) Common mistakes in decision-making

Good practices for employee participation Given the deeply rooted decision-making approach in most of the companies, the process of increasing the employee involvement in the process is a complex and multifaceted task. The positive results can be ensure mainly by: Information campaigns at workplace Training and teambuilding for all level employees Practice feedback and other retroaction tools Improve the communication in company

Conclusions The decision-making is a complex process involving competence and responsibility The employee involvement is the key for positive results, in both top or bottom approach The review of decision is essential to stay on track and ensure results The social dialog is the main tool for participation of workers to decision-making at company/sector level The trade unions promote and support the employee involvement