The Vroom-Yetton-Jago Decision-Making Model (VYJDM Model) is a managerial model designed to assist decision makers in selecting an appropriate decision-making process for a given situation. The VYJDM Model was originally developed by Vroom and Yetton (1973) and subsequently modified by Jago (1982). According to Vroom and Yetton, any decision maker is likely to be faced with three types of decision making situation, each of which may dictate an appropriate decision-making style: Autocratic; Consultative; and Group-oriented.
The Autocratic decision-making style is one in which the decision maker makes a decision without any input from other stakeholders. This style is appropriate where the decision maker has sufficient knowledge and expertise to make an informed decision without the need to consult with other stakeholders. For example, a CEO may decide to accept an offer to acquire a company without consulting anyone else within the organization.
The Consultative decision-making style involves the decision maker consulting with other stakeholders prior to making a decision. This style is appropriate where the decision at hand is complex and requires a range of input from different stakeholders in order to make an informed decision. For example, a healthcare manager may consult with doctors, nurses and other healthcare professionals before deciding whether to implement a new medical procedure in the hospital.
The Group-oriented decision-making style involves the decision maker engaging the stakeholders of a decision in a process of joint problem solving that facilitates consensus. This style is appropriate in situations where a decision cannot be reached through either Autocratic or Consultative styles, such as in cases where the stakeholders involved have different interests that cannot be reconciled easily. For example, in a multi-party negotiation, such as in a merger or acquisition, a Group-oriented style may be used to allow the various stakeholders to negotiate and come to a compromise.
The VYJDM Model proposes that the decision maker assess the particular situation and analyze the consequences of the decision. By assessing the decision situation along the dimensions of possible danger, quality of decision required and the degree of subordinates’ decision-making involvement, one can determine the decision-making style that is most appropriate in that situation. For example, if the decision situation is relatively low danger and low quality, a low involvement approach (Autocratic) may be more appropriate. Alternatively, if the decision situation is relatively high danger and high quality, a high involvement approach (Group-oriented) may be more appropriate.
In conclusion, the Vroom-Yetton-Jago Decision-Making Model is an important managerial model that provides decision makers with an effective way of selecting an appropriate decision-making process for a given decision situation. By analyzing the decision situation along the three dimensions, the decision maker can determine the level of decision-making involvement, and thus select an appropriate decision-making style for that particular situation.