Influence of Organizational Culture on Decision Making

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Summary

Organizational culture shapes how decisions are made within a company, guiding whether choices are collaborative, top-down, or open to diverse viewpoints. It refers to the shared values, behaviors, and norms that influence every stage of decision-making, from who gets a voice to how outcomes are communicated and followed through.

  • Encourage open dialogue: Create an environment where team members feel comfortable sharing ideas and feedback, regardless of their position.
  • Clarify accountability: Assign clear ownership for decisions and action items so everyone knows who is responsible for moving things forward.
  • Communicate the reasoning: Explain not just the final decision, but also why other options were set aside, helping build trust and buy-in across the organization.
Summarized by AI based on LinkedIn member posts
  • View profile for Rohit Pathak
    Rohit Pathak Rohit Pathak is an Influencer

    CEO, Copper Business (Hindalco Industries Ltd)

    132,700 followers

    #CEOLife #CEOTalks #Collaboration #DecisionMaking "Diversity in Opinion. Unity in Decision." This is one of the thoughts that I have been working on as a leadership style to drive good Decision Making with Collaboration. In many organizations, managers/leaders by default resort to a hierarchical way of Decision Making. In some, you just get stalled while people try to get to Consensus, which is not easy (and may not be right even). Very few teams and organizations are able to build a culture where people across levels feel free and encouraged to share their views openly but then once a decision is made demonstrate true unity even if their personal view was different. Getting this balance right is critical to get to right decisions for organizations (and not individuals) and create a collaborative culture. A few thoughts that I think are great for managers and leaders to reflect on as they try to get this balance right: - Build trust and mutual respect - you have a team with different expertise and experiences to ensure you look at an issue from multiple perspectives. So build the respect for them versus consider them as threats/challengers - Maintain focus on the Organization and the larger purpose during discussions - stop that voice in your head that tries to make views others express as a challenge to your authority or intellect! That's what they are paid to bring to the table! Stay focused on thought that your job is to get the right decision for the organization - Use the debate/discussion not so much to put your idea on the table as the boss but what the priorities (and why) are for the organization that others may not fully have visibility of. Remember your role is not necessarily to give the idea but to ensure the right idea is tabled, and selected. So remove the burden of trying to come up with the best ideas but focus on thinking through the options on merit - Closing the discussion in the right way is important and you need to ensure that why the final decision is being taken on a certain way is understood by all, and that you as a team acknowledge why done of the other options were dropped explicitly (else they will keep coming back, especially if things don't go as well!!) As a managerial/leadership team, building this culture of an open dialogue/debate but unity in the decision once taken is what perhaps differentiates great teams from others. #campustalks #careerwars #leadership #leadershipdevelopment #management #mentoring #coaching #buildingcareers

  • View profile for Manav Lalotra

    Founder & CEO | Building ProdEdgee | Driving Real Results Beyond Consulting | Strategy | Execution | Growth

    7,063 followers

    This one thing kills more organizations (growth) than anything else! It is one of the biggest blind spots 🙈 in most organizations. The myth that entire #collectivewisdom only exists at the top! In reality, the people closest to the work often have the most relevant data - but the least say in decisions. This isn’t just bad culture. It’s bad business. And the Irony - The ones expected to fix this are part of the very loop that shuts voices out. Let’s talk about what healthy organizations do instead. They build a clear Information Pyramid where: 1. #Execution layer (Bottom) – Associates, operators, field staff - Manage transactional data (what’s happening) - Feed insights around patterns, blockers, feedback from the ground 2. Mid layer (Managers/Leads) - Translate operational data into structured insight - Spot trends, variances, and early signals across teams 3. Strategic layer (Leadership) - Work with consolidated insights to make forward-looking decisions - Link it to business goals, customer impact, and long-term strategy But here’s the key: When a decision is made at the top, it shouldn’t just flow down as an order or a diktat. It should be evaluated top-down for: – How it affects execution? – What support the mid layer needs to drive it? – What outcomes it should trigger at the ground level? Without this loop, decisions stay in slides - not in action. Worst yet - it is rolled back - leading to erosion of #trust more than anything else! This is one of the core cultural shifts I help founders and CEOs build. If you're thinking about creating smarter, more inclusive organizations - happy to chat. #organizationalintelligence #decisionmaking #leadershipdesign #ProdEdgee #manavaani

  • View profile for Russ Hill

    Cofounder of Lone Rock Leadership • Upgrade your managers • Human resources and leadership development

    24,402 followers

    Several years ago, I consulted with a mid-sized manufacturing company that was struggling with morale and productivity issues. Upon spending time there, the problems with leadership became quite apparent. The CEO's authoritarian and micromanaging style was the root of the issue: • He had his hands in every decision, no matter how small • Managers had little autonomy and were constantly second-guessed and overridden • The CEO was also very critical and rarely offered praise or positive reinforcement • IInteractions with him left employees feeling deflated and diminished There was very little transparency from leadership: • Major decisions were made behind closed doors without employee input • Communication was top-down with no avenue for feedback or dialogue As a result, the company culture had deteriorated significantly. Morale was extremely low. Employees felt unappreciated and powerless in their roles. There was no sense of empowerment or ownership. People worked in constant fear of being criticized or overridden by the CEO. Managers were reluctant to make decisions, always deferring to the CEO instead. Innovation and creative problem-solving were nonexistent. People were afraid to take risks. Unsurprisingly, the company had very high turnover. Talented employees left for better opportunities. Recruiting strong talent into key roles was nearly impossible with such a negative reputation. The company was stuck in a vicious cycle. Productivity and execution suffered greatly. With the CEO involved in every little thing, decision-making was bottlenecked. Initiatives moved forward at a glacial pace. Opportunities were missed. The company gradually lost market share to more nimble competitors. The CEO's highly controlling, critical, and non-transparent leadership style created a dysfunctional culture. It sapped morale, stifled innovation, and damaged productivity and competitiveness. The CEO's personal flaws permeated the entire organization. Unfortunately, the CEO was unwilling to evolve his leadership approach, even when confronted with these issues. This remains an example of the hugely damaging ripple effects that poor leadership at the top can have on an entire company. The human element is vital for organizational success. When leadership fails, everything else often crumbles with it. Join the 12,000+ leaders who get our weekly email newsletter. https://lnkd.in/en9vxeNk

  • View profile for Swati Paliwal
    Swati Paliwal Swati Paliwal is an Influencer

    Founder - ReSO | Ex Disney+ | AI powered GTM & revenue growth | GEO (Generative engine optimisation)

    35,554 followers

    Is the HIPPO’s opinion blocking the free flow of ideas in your company? Hippo here stands for "Highest Paid Person’s Opinion." This concept highlights the tendency for the most senior or highest-paid individual’s viewpoint to dominate discussions and influence decisions, often at the expense of diverse perspectives.   Pros and Cons of the HIPPO Effect   Pros: ✅ Decisive Leadership: In situations requiring quick decisions, a HIPPO can provide clear direction based on experience. ✅ Leverages Expertise: When the highest-paid person is also the most knowledgeable, their opinion can guide the team effectively.   Cons: ❌ Risk of Groupthink: When others align with the HIPPO’s viewpoint without challenge, it can stifle creativity and innovation. ❌ Missed Insights: Dominance by a single opinion may lead to overlooking valuable alternative perspectives that could enhance the decision-making process. ❌ Culture of Conformity: Relying too heavily on a HIPPO can create a culture where differing opinions are discouraged, leading to suboptimal outcomes.   How HIPPOs Should Conduct Themselves in Meetings ✔ Speak Last: To foster open dialogue and avoid swaying the group, leaders should present the context or options first but withhold their opinions until after others have shared their thoughts. ✔ Encourage Diverse Input: Create a safe environment where team members feel empowered to share differing opinions without fear of judgment or repercussions. ✔ Build a Challenge Network: Leaders should cultivate a network of trusted individuals who provide honest, critical feedback. This helps to identify blind spots and ensures more balanced, well-rounded decision-making.   Addressing the HIPPO effect is essential for fostering a culture of diverse thought and innovation. By ensuring that all voices are heard and valued, organizations can make more informed, balanced decisions that drive success.

  • View profile for Pamela Mattsson, PhD

    Culture Strategist & C-Suite Executive Coach | Start-up Culture Expert | Transformational & Strategic Change Leadership | Founder Advisor | Ex-Amazon | Certified Dare To Lead™ Facilitator

    5,266 followers

    Culture strategy without decisive action is just wishful thinking. Here’s the hard truth I see when working with senior teams: the how of decision-making is where culture wins—or falls apart. 🔥 These three insights are common but not common practice. If you’re serious about culture strategy, start here: 1️⃣ Accountability isn’t optional. Decisions and action items need owners—actual people who are ready to take the ball and run with it. We love the comfort of great ideas and endless debate, but unless someone owns it, that golden thread gets dropped. No ownership? No movement. 2️⃣ Decisions have a blast radius. Every decision sends shockwaves through your organization. Before you act, map the terrain: What obstacles might derail the plan? Who will be affected—and what resistance might you face? How will you communicate the why behind the decision? What’s your plan for gaining buy-in? Decision-making doesn’t end with a yes—it ends when the decision sticks. 3️⃣ The culture you tolerate is the culture you get. Every decision signals what your team really values. Prioritizing speed over quality? Collaboration over clarity? Your choices reflect your culture in action—like it or not. 💡 Culture isn’t what you write on the wall. It’s how decisions get made in the room. Want to build a high-performing, aligned team? Start with how you lead, decide, and act.

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