One of the best managers I ever had taught me a very valuable lesson about management. She was a manager at the first bank I worked at. I was a supervisor of all of the bank tellers. She delegated decision-making powers to all of her staff. Of course, the level of decision-making was different for the different levels of workers. In other words, the assistant managers had the ability to make decisions on more important matters than did the supervisors and the supervisors had more leeway than did the tellers. It was one of the most important lessons I learned about managing.
The idea of giving decision-making powers to a staff is very scary for many managers. They are either afraid to give up power or they are afraid of mistakes being made. But giving the power to make decisions to your staff shows that you have trust in them. I am not advocating that every staff member have the "power" to make every decision across the board. Obviously, not every worker is capable of making every decision. Another thing to consider is that managers are usually in the position they are in because they possess strong decision-making skills. But it is important to allow all workers to make some decisions. Here are some things to consider when allocating decision-making powers to your staff.
1. Evaluate each worker and allocate decision-making powers based on their position. In my situation, bank tellers did not have the same level of authority for making decisions as did the managers and supervisors. You still have to maintain separation of powers in order to maintain hierarchy within the organization or business.
2. Inform each worker of the level of decision-making that they possess. Make it clear what they can and cannot do in relations to making decisions. For example, bank tellers had the authority to cash checks for customers up to a certain level of money without having to have a supervisor's permission or approval. Supervisors had a much higher threshold and so on. You do not want bank tellers approving transactions for tens of thousands of dollars without their supervisor's approval.
3. Remember that you, as the manager, are still responsible for the workers decisions. Do not let them hang out to dry if they make a decision and it is wrong. You must accept accountability for their decision as long as they followed the guidelines that you implemented for them. My manager always told her supervisors and assistant managers that we had the authority to make decisions and she would stand behind us on any of them as long as we could show why we made that decision and the basis for it.
4. Supporting your staff's decisions is important because it shows trust. It builds trust between the managers and the staff. Standing behind them empowers them to make decisions without always second-guessing themselves.
5. Empowering your staff to make decisions instills confidence in them. The staff feels that you trust them to make important decisions and gains confidence in themselves as they make more.
6. Allowing your staff to make decisions allows you, the manager, to spend your time on more important tasks. Managers should be spending their time on more important tasks and decision-making rather than just the trivial issues that arise hundreds of times a day. Allowing others to make those decisions gives you the time to do more important tasks.
7. The staff feels like they are making a contribution to the organization or business when they are allowed to make decisions. As a result they become more productive and loyal to the organization.
8. If one of your workers makes a mistake while making a decision, sit down with them and explain why it was wrong. Do not berate them in front of others or even alone. Explain why the decision was wrong and help them understand what the right decision should have been for the situation.
9. Spend some time coaching your staff on decision-making skills. They will only improve if you help them.
10. Remember that some members of the staff will not feel comfortable under any situation or conditions in making decisions. That is important because you do not want people who are unsure of themselves making decisions. Do not put them in a situation where they are forced to do so if they are uncomfortable with it.
Decision-making is important in every organization and business. Making the wrong decision in some instances can be devastating to an organization. These decisions should be left to the managers. Do not be afraid to delegate decision-making but be sure to set guidelines for the level of decision-making allowed for each level of workers. If this is done correctly, productivity, confidence, and loyalty will increase in your organization.