How do Sales Managers Respond to Vroom's Consultive and Group-Based Decision-Making Process in a High Conflict Situation?
While working for a large advertising agency, I became aware of the different management styles practiced by our account directors. Most account directors practiced an autocratic type of management style and only one practiced a consultive type. The account director practicing the consultive style of management however was far more successful. Whether or not the reason for her success was the management style she practiced, her team members of account executives and account managers were very pleased and that in itself was a success. This is what led me to further research how sales managers respond to Vroom’s consultive and group-based decision-making process in a high conflict situation.
While working for a large advertising agency, I became aware of the different management styles practiced by our account directors. Most account directors practiced an autocratic type of management style and only one practiced a consultive type. The account director practicing the consultive style of management however was far more successful. Whether or not the reason for her success was the management style she practiced, her team members of account executives and account managers were very pleased and that in itself was a success. This is what led me to further research how sales managers respond to Vroom’s consultive and group-based decision-making process in a high conflict situation.
I. SUMMARY OF BEST AVAILABLE EVIDENCE
Numerous studies have been conducted on various management styles, however this research paper is interested in two specific methods of management styles and their relationship to situational and employee participation in decision-making. The Vroom-Yetton-Jago model, named after Victor Vroom, Phillip Yetton, and Arthur Jago, is a decision making model that identifies five management styles and enables any manager to decide which level of employee participation to take on after monitoring the situation.
The five management styles that Vroom and Yetton identify range from autocratic to consultative to group-based. This paper is concerned with the last two management styles Consultative Type 2 (CII) and Group-based Type 2 (GII), which could be categorized as the participative management style. In the consultive type 2 style the manager shares the problem with the employees who get together and through discussions come up with different alternatives. Ultimately, however, the manager makes the decision alone, which may not necessarily be influenced by the employees decision. In Group-based Type 2 (GII) managers discuss the problem with employees and together through brainstorming they come up with different alternatives. Managers then have to accept the final decision made by the group.
Making decisions is fundamental to any manager. Managers are continuously trying to find the best alternatives to make decisions regarding a broad variety of issues. “Solving problems, making decisions, and picking the course of action are the most critical aspects of being a sales manager because it involves uncertainty and risk. Bad decisions can damage a career, influence peoples’ lives, and hurt an organization’s performance” (Safi, 2009, p. 2). In a high conflict situation, this is particularly true, because the uncertainty and risk levels increase.
There is no single clear definition of what a high conflict situation is, nonetheless, according to an article on “Decision Making Skills” (2009), most people would consider the following factors as indicators: 1) large number of vague information which can lead to uncertainty 2) many interconnected issue have to be considered which can lead to complexity 3) decision which can have a huge impact in high-risk consequences 4) having many alternatives and 5) not being able to predict how an individual would react to interpersonal issues.
Knowing these indicators of a high conflict situation a sales manager should use an effective process to achieve the best possible decision. In a high conflict situation, a good sales manager is one who utilizes the available resources of an organization such as his employees. Employees can add knowledge or experience the management may not posses in a resourceful way in the process of achieving the best possible decision (Deeter-Schmelz, Goebel & Norman, 2008, p. 8). For example, a sales manager finds himself in a situation where immediate higher sales and good customer service is needed to save a company. This is where front-line sales employees often know more about customer needs and wants than the management and can assist in making the best possible decision (Darmon & Martin, 2011, p. 2997).
According to Safi (2009) under an autocratic management style, management provides employees with a particular and detailed decision. For instance, when sales managers impose sales quotas per product line and per account, employees are left with the restricted choice between either trying to meet the objectives to please management and themselves or refusing to do so and suffer the negative consequences that may result. According to Deeter-Schmelz, Goebel & Norman (2008) employees have limited flexibility for adjusting the firm’s offer to the needs and requirements of their customers. Offers are completely decided by sales management and the role of the employee is more or less limited. However participative management is not just concerned with the abilities and expertise of the employee but with the ability to be innovative at work. “In a participative decision-making process each employee has an opportunity to share their perspectives, voice their ideas and tap their skills to improve team effectiveness” (Lloyd, 2011, p. 9) and increase decision quality. The Vroom-Yetton-Jago model further reports that “when quality is the only relevant criterion of decision effectiveness, managers are more likely to favor a group process, in effect that would be consistent with the belief that the full expression of conflict may benefit decision quality by increasing the likelihood that a broader spectrum of opinion and information will be considered as a result of group interaction” (Vroom & Jago, 2007, p. 18).
II. LIMITATIONS of the FINDINGS
Although I was able to find many articles that discussed different management and decision-making styles, there did not seem to be much data on the impact of participative management in a high conflict situation. A small number of articles I found actually criticized the process of making management decisions using a group of people because it can take longer than using the approach of a single decision maker. According to Nowicki and Summers (2008) during this interval of time competing interests can come to surface resulting in a weaker decision (p. 119). For example, some managers cannot seem to make any decision without getting input from their employees. This slows down the process and the organization cannot react fast enough to the decisions that need to be made quickly. Another criticism is unclear and ambiguous communication; “leaders should communicate clearly, and their instructions should be unambiguous” (Nowicki & Summers, 2008, p. 119).
In addition, there are many variables that could affect a managers stance on how much involvement employees should have in the decision such as: decision importance, need for commitment, goal alignment and potential for conflict (Biddle, 2005, p. 1). Other variables that could affect the most appropriate behavioral include size of the organization, its goals, and immediate needs
(Biddle, 2005, p. 1).
III. CONCLUSIONS
According to the Vroom-Yetton-Jago model effectiveness of participation is dependent on specific situational variables. In the situation of high conflict decisions, which requires a range of specialist skills, participative management style can be particularly useful. It allows employees to feel a sense of belonging, improves understanding and observations among employees and managers, and allows employees to contribute knowledge or experience not possessed by management.
When employees are involved in the decision making process they become very devoted to the decision. They feel a sense of belonging and deeper involvement, which enhances employees’ commitment to overcome high conflict decisions. In addition, employee participation in the decision-making process, “improves understanding and observations among employees and managers, and enhances personnel value in the organization” (Huang, IunLiu & Gong, 2010, p. 122). Whether or not employees have the power to make the final decision (the difference between Vroom’s Consultative and Group-based), employees add valuable effort and contribute knowledge or experience not possessed by management. It allows room for employees to share their expertise, abilities and innovative mind at work. Employees then come up with a wide variety of alternatives to choose from. This is particularly true when it comes to sales employees who deal with customers on a daily basis and know more about their needs and wants. All these factors help to improve the decision quality.
Although the answer is complex, it is clear that one essential component sales managers need in order to make the best possible decision in a high conflict situation is the participation of their employees. And from the overall research’s point of view, there will be improvement in employee job satisfaction and value of work. Participatory contributions from employees will be much higher and lead to increased decision quality. It has been suggested by Ettling & Jago (2007) as a means of both improving decision quality and generating understanding and support for potentially controversial managerial decisions. Thus, sales managers should practice participative management when it comes to high conflict situations. As each employee can be a part of the process, employees will generate better work, be more motivated, and add valued information to the decision. This will then help sales managers achieve the best possible outcome. In conclusion, Vroom’s participative management style produces better results for sales managers when dealing with high conflict decisions.
Numerous studies have been conducted on various management styles, however this research paper is interested in two specific methods of management styles and their relationship to situational and employee participation in decision-making. The Vroom-Yetton-Jago model, named after Victor Vroom, Phillip Yetton, and Arthur Jago, is a decision making model that identifies five management styles and enables any manager to decide which level of employee participation to take on after monitoring the situation.
The five management styles that Vroom and Yetton identify range from autocratic to consultative to group-based. This paper is concerned with the last two management styles Consultative Type 2 (CII) and Group-based Type 2 (GII), which could be categorized as the participative management style. In the consultive type 2 style the manager shares the problem with the employees who get together and through discussions come up with different alternatives. Ultimately, however, the manager makes the decision alone, which may not necessarily be influenced by the employees decision. In Group-based Type 2 (GII) managers discuss the problem with employees and together through brainstorming they come up with different alternatives. Managers then have to accept the final decision made by the group.
Making decisions is fundamental to any manager. Managers are continuously trying to find the best alternatives to make decisions regarding a broad variety of issues. “Solving problems, making decisions, and picking the course of action are the most critical aspects of being a sales manager because it involves uncertainty and risk. Bad decisions can damage a career, influence peoples’ lives, and hurt an organization’s performance” (Safi, 2009, p. 2). In a high conflict situation, this is particularly true, because the uncertainty and risk levels increase.
There is no single clear definition of what a high conflict situation is, nonetheless, according to an article on “Decision Making Skills” (2009), most people would consider the following factors as indicators: 1) large number of vague information which can lead to uncertainty 2) many interconnected issue have to be considered which can lead to complexity 3) decision which can have a huge impact in high-risk consequences 4) having many alternatives and 5) not being able to predict how an individual would react to interpersonal issues.
Knowing these indicators of a high conflict situation a sales manager should use an effective process to achieve the best possible decision. In a high conflict situation, a good sales manager is one who utilizes the available resources of an organization such as his employees. Employees can add knowledge or experience the management may not posses in a resourceful way in the process of achieving the best possible decision (Deeter-Schmelz, Goebel & Norman, 2008, p. 8). For example, a sales manager finds himself in a situation where immediate higher sales and good customer service is needed to save a company. This is where front-line sales employees often know more about customer needs and wants than the management and can assist in making the best possible decision (Darmon & Martin, 2011, p. 2997).
According to Safi (2009) under an autocratic management style, management provides employees with a particular and detailed decision. For instance, when sales managers impose sales quotas per product line and per account, employees are left with the restricted choice between either trying to meet the objectives to please management and themselves or refusing to do so and suffer the negative consequences that may result. According to Deeter-Schmelz, Goebel & Norman (2008) employees have limited flexibility for adjusting the firm’s offer to the needs and requirements of their customers. Offers are completely decided by sales management and the role of the employee is more or less limited. However participative management is not just concerned with the abilities and expertise of the employee but with the ability to be innovative at work. “In a participative decision-making process each employee has an opportunity to share their perspectives, voice their ideas and tap their skills to improve team effectiveness” (Lloyd, 2011, p. 9) and increase decision quality. The Vroom-Yetton-Jago model further reports that “when quality is the only relevant criterion of decision effectiveness, managers are more likely to favor a group process, in effect that would be consistent with the belief that the full expression of conflict may benefit decision quality by increasing the likelihood that a broader spectrum of opinion and information will be considered as a result of group interaction” (Vroom & Jago, 2007, p. 18).
II. LIMITATIONS of the FINDINGS
Although I was able to find many articles that discussed different management and decision-making styles, there did not seem to be much data on the impact of participative management in a high conflict situation. A small number of articles I found actually criticized the process of making management decisions using a group of people because it can take longer than using the approach of a single decision maker. According to Nowicki and Summers (2008) during this interval of time competing interests can come to surface resulting in a weaker decision (p. 119). For example, some managers cannot seem to make any decision without getting input from their employees. This slows down the process and the organization cannot react fast enough to the decisions that need to be made quickly. Another criticism is unclear and ambiguous communication; “leaders should communicate clearly, and their instructions should be unambiguous” (Nowicki & Summers, 2008, p. 119).
In addition, there are many variables that could affect a managers stance on how much involvement employees should have in the decision such as: decision importance, need for commitment, goal alignment and potential for conflict (Biddle, 2005, p. 1). Other variables that could affect the most appropriate behavioral include size of the organization, its goals, and immediate needs
(Biddle, 2005, p. 1).
III. CONCLUSIONS
According to the Vroom-Yetton-Jago model effectiveness of participation is dependent on specific situational variables. In the situation of high conflict decisions, which requires a range of specialist skills, participative management style can be particularly useful. It allows employees to feel a sense of belonging, improves understanding and observations among employees and managers, and allows employees to contribute knowledge or experience not possessed by management.
When employees are involved in the decision making process they become very devoted to the decision. They feel a sense of belonging and deeper involvement, which enhances employees’ commitment to overcome high conflict decisions. In addition, employee participation in the decision-making process, “improves understanding and observations among employees and managers, and enhances personnel value in the organization” (Huang, IunLiu & Gong, 2010, p. 122). Whether or not employees have the power to make the final decision (the difference between Vroom’s Consultative and Group-based), employees add valuable effort and contribute knowledge or experience not possessed by management. It allows room for employees to share their expertise, abilities and innovative mind at work. Employees then come up with a wide variety of alternatives to choose from. This is particularly true when it comes to sales employees who deal with customers on a daily basis and know more about their needs and wants. All these factors help to improve the decision quality.
Although the answer is complex, it is clear that one essential component sales managers need in order to make the best possible decision in a high conflict situation is the participation of their employees. And from the overall research’s point of view, there will be improvement in employee job satisfaction and value of work. Participatory contributions from employees will be much higher and lead to increased decision quality. It has been suggested by Ettling & Jago (2007) as a means of both improving decision quality and generating understanding and support for potentially controversial managerial decisions. Thus, sales managers should practice participative management when it comes to high conflict situations. As each employee can be a part of the process, employees will generate better work, be more motivated, and add valued information to the decision. This will then help sales managers achieve the best possible outcome. In conclusion, Vroom’s participative management style produces better results for sales managers when dealing with high conflict decisions.
References
Biddle, I. (2005). Approaches to Management: Styles of Leadership. Businessdate, 3, 1-4.
Darmon, R. Y., & Martin, X. C (2011). A New Conceptual Framework of Sales Force Control
Systems. Journal of Personal Selling & Sales Management, 3, 297-310.
Decision making skills. (2009). Retrieved from
http://www.mindtools.com/pages/article/newTED_00.htm
Deeter-Schmelz, D. R., Goebel, D. J., & Norman, K. (2008). What are the Charactaristics of an
Effective Sales Manager? An Exploratory Study Comparing Salesperson and Sales Manager Perspectives. Journal of Personal Selling & Sales Management, 1, 7-20.
Ettling, J. T., Jago, A. G. (2007, 5). Participation Under Conditions of Conflict: More on the
Validity of the Vroom-Yetton Model. Journal of Management Studies, 1, 73-83.
Huang, X., Iun, I., Liu, A., & Gong, Y. (2010). Does participative leadership enhance work
performance by inducing empowerment or trust? The differential effects on managerial and non-managerial subordinates. Journal of Organizational Behavio, 1, 122-143.
Lloyd, J. (2011). Management Style Important to Results.. Receivables Report for America's
Health Care Financial Managers, 5, 9-10.
Nowicki, M., & Summers, J. (2008). When Participative Management Leads to Garbled
Communication. hfm (Healthcare Financial Management), 2, 118-120.
Safi, A., & Burrell, D.N. (2009). Developing Advanced Decision-Making Skills in International
Leaders and Managers. Vikalpa: The Journal for Decision Makers, 3, 1-8.
Vroom, V. H., Jago, A. G. (2007). The Role of the Situation in Leadership. American
Psychologist, 1, 17-24.
Biddle, I. (2005). Approaches to Management: Styles of Leadership. Businessdate, 3, 1-4.
Darmon, R. Y., & Martin, X. C (2011). A New Conceptual Framework of Sales Force Control
Systems. Journal of Personal Selling & Sales Management, 3, 297-310.
Decision making skills. (2009). Retrieved from
http://www.mindtools.com/pages/article/newTED_00.htm
Deeter-Schmelz, D. R., Goebel, D. J., & Norman, K. (2008). What are the Charactaristics of an
Effective Sales Manager? An Exploratory Study Comparing Salesperson and Sales Manager Perspectives. Journal of Personal Selling & Sales Management, 1, 7-20.
Ettling, J. T., Jago, A. G. (2007, 5). Participation Under Conditions of Conflict: More on the
Validity of the Vroom-Yetton Model. Journal of Management Studies, 1, 73-83.
Huang, X., Iun, I., Liu, A., & Gong, Y. (2010). Does participative leadership enhance work
performance by inducing empowerment or trust? The differential effects on managerial and non-managerial subordinates. Journal of Organizational Behavio, 1, 122-143.
Lloyd, J. (2011). Management Style Important to Results.. Receivables Report for America's
Health Care Financial Managers, 5, 9-10.
Nowicki, M., & Summers, J. (2008). When Participative Management Leads to Garbled
Communication. hfm (Healthcare Financial Management), 2, 118-120.
Safi, A., & Burrell, D.N. (2009). Developing Advanced Decision-Making Skills in International
Leaders and Managers. Vikalpa: The Journal for Decision Makers, 3, 1-8.
Vroom, V. H., Jago, A. G. (2007). The Role of the Situation in Leadership. American
Psychologist, 1, 17-24.