Fostering perceptions of fairness in complex organizational decision-making

The principles covered in this session apply to a variety of leadership domains, such as performance evaluations, negotiations, conflict resolution, strategic change, and corporate announcements of policy changes and layoffs.

Professor
Module
Decision making in a complex world session at UCLA Anderson School of Management

When facing complex decisions, leaders often face choice sets with multiple "right" options rather than a single right option among wrong ones. After deciding, a skilled leader is able to explain the principles behind the decision and build perceptions of organizational fairness. Doing so fosters the most acceptance, the least backlash, and the greatest trust. Ultimately, leaders must do more than make the best decisions in complex and uncertain circumstances. They need to communicate how they are making the best decisions in order to maintain stakeholder loyalty and commitment to the decision.

The principles covered in this session apply to a variety of leadership domains, such as performance evaluations, negotiations, conflict resolution, strategic change, and corporate announcements of policy changes and layoffs.