Communication flows horizontally among group members. The democratic leader holds final responsibility but also delegates authority to others, who participate in determining work assignments. Communication moves both upward and downward. Each of these styles has advantages and disadvantages. The style that is most effective depends on the interaction among the subordinates, the characteristics of the work situation, and the manager's personality.
Managerial decision making involves four steps.
Identifying the Problem or Opportunity. Sometimes managers' preconceptions of the problem prevent them from seeing the situation as it actually is. Effective managers learn to look ahead so that they are prepared when decisions must be made. After a problem has been suitably defined, the next task is to generate alternatives. Certain techniques, such as brainstorming, can be used to generate alternatives.