Good Decision Making Model
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- Jasmin Robbins
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1 Good Decision Making Model The objective of all decisions regarding employees in the ATO is to achieve outcomes consistent with governing legislation, HR policies, and APS and ATO values. The ATO approach to decision-making is empower decision-makers who have responsibilities for managing people. It is important to keep in mind that when making a decision, decision-makers are using their discretionary powers to make a choice among possible courses of action. In the exercise of choice, judgement is required as to which course of action is the most appropriate. ATO principles assist decision-makers use to their judgement to reach sound decisions. All decisions should satisfy each of the principles: þ Legal þ Ethical þ Equitable þ Overt þ Sensible þ Timely þ Natural Justice These elements may not guarantee that you will make technically correct decisions, but they can help quite significantly. Where there is no "right" answer, others are more likely to accept your decision if they can see that it is well reasoned. Where, despite your best efforts you make an incorrect decision, people may not think less of you for it if you have covered all these elements. The consequences of bad decisions Many of us will have personal experience of a decision which we believe has been badly made. Some common examples would be a job application which was knocked back, or poor grade on a school assignment. The feeling of being unfairly treated is a bad feeling made worse if we are helpless to change the decision. As well as the personal consequences for those on the receiving end of a bad decision there are also negative consequence for the organisation which allows those decisions to occur. Some of the possible consequences of a bad decision are:
2 feelings of resentment and unfair treatment among those affected may build up leading to a non-cooperative work environment time may be wasted in dealing with complaints, grievances and appeals decisions may not stand up against grievance or appeal processes, forcing decision processes to be done again, or requiring the payment of compensation the reputation of the decision maker and the organisation as a whole may be damaged there may be a loss of faith in the process used leading to the need to set up supplementary processes decisions which affect staff could lead to morale and efficiency problems in the workplace you probably thought of some other consequences as well. As you can see there are some quite compelling reasons to ensure that the decisions you make are well founded and can stand up to the scrutiny of others. Key elements of a good decision To assist your understanding of the key elements of a good decision, a more detailed explanation of each of the elements follows: Legal For a decision to be legal you must have considered (and complied with) all the relevant legislation, regulations, determinations, awards, registered agreements and contractual obligations. Unfortunately the legal aspect is often the beginning and end of decision making. This is possibly because much of the legislation we deal with and are subject to is both complicated and complex. It is easy to feel that once we have found the legally correct answer the job is finished. People experienced in the law know, however, that there is no decision so obviously correct that the contrary view cannot be well supported with strong arguments. Many now well established principles of Taxation and Administrative law were once hotly disputed before the highest tribunals as parties appealed unfavourable decisions. There are essentially three questions you must answer to determine if your decision is legal. To the best of my knowledge and having taken advice if necessary does the law authorise the making of this decision? This simply means making prudent enquiries to ensure that you are fully informed about what the law requires of you in making the decision. This may be a relatively simple exercise or may require exhaustive research and you may wish to refer the matter to other more expert staff for advice. You will have to judge what research is
3 necessary consistent with the circumstances surrounding the decision. There is usually a point at which you can see that little more is likely to be achieved by further research. Am I a proper person to make this decision? In the ATO environment most power to make decisions flows from legislation that gives these powers to the Commissioner of Taxation. Powers to do with staffing, finances, employment and the ATO's internal processes are usually delegated to the permanent head of a department. These powers may be delegated to you in which case you are responsible for the decisions you make using the delegated power. Delegates cannot be directed to reach a particular decision, even by their superiors. However your decisions may be reversed by your superiors provided they hold an identical delegation. Naturally they then assume all responsibility for the decision. As an alternative to delegating powers, staff may be formally authorised to decide certain matters. Authorisations substitute you for the person holding the power. They remain responsible for your decision ( a further incentive to make good decisions). Because they are responsible for your decisions they are allowed to direct you to come to a specific decision. Have all procedures required by the relevant law been observed? If a tribunal or review process finds that procedures have not been properly observed they will usually order the decision making process to be carried out again using the correct procedures. Of course the consequences of the poor application of procedures may be much worse than simply having to do the work again. The ATO's rights or options may be severely compromised. Further action may be effectively prevented by your original failure to observe correct procedure. (in debt collection work, incorrect service of process when we had the chance may prevent us obtaining judgement because, by the time the defect is brought to our attention, we cannot readily obtain good service on the defendant.) Ethical The Macquarie dictionary defines the term ethical as: a system of moral principles by which human actions and proposals may be judged good or bad, right or wrong. the rules of conduct recognised in respect of a particular class of human actions. moral principles, as of an individual. These are the standards or principles by which each of us personally decides what is right or wrong. Words such as integrity, standards, values, honesty, fairness, courage etc, also help to describe ethics. Ethical beliefs will differ from individual to individual, and occasionally personal ethics and behaviour outside the workplace may not align with organisational ethics
4 and behaviour expected of employees. The APS Values and Code of Conduct, and ATO Values describe the ethical standards which are to be applied consistently to yourself and those for whom you are responsible. Above all a "one law for them and another for us" situation should never be allowed to arise. The specific details of a particular code of ethics are usually of little consequence as long as they are consistent and predictable in their application. That is, we should practise what we preach. Equitable Equity within the ATO has come to mean that you apply the rules which govern your decisions equally to all people. That is, you don't unjustly discriminate against or add bias in favour of any person on grounds of race, colour, sex, religion, political opinion, age, marital status, criminal record, medical record, sexual preference, disability, nationality, trade union activities, or personal attributes. Overt The Macquarie dictionary provides the following definitions: Overt adj. 1. open to view or knowledge; not concealed or secret. Covert adj. 1. covered; sheltered. concealed; secret; disguised. Sums it up really! What it means is that you should not pretend to make a decision for one reason if you are really making them for a another reason. If you believe your real reason justifies your decision state it openly, if not, do not make the decision. It is often tempting to use convenient rationalisations to avoid controversy. But beware that most people have a nose for such situations and will detect or, worse, assume your ulterior motives. Being detected in such a situation will hardly do your good name or reputation any credit, quite apart from any formal sanctions that may apply. Sensible Commonsense is sometimes an important aspect that we overlook in making a decision. Some good examples where decisions seem not to be sensible are: the different dates for starting and finishing daylight savings in some states, the different rail gauges used in each state. It will always be hard to justify a decision if it doesn't make sense to ordinary people. Timely
5 People affected by a decision have a right to know the outcome of a decision as soon as possible after the decision is made, and a right to expect that decisions are made within an appropriate timeframe. Natural Justice Natural justice exists when a sound decision has been made and the decision-maker has acted fairly, in good faith, and without bias. There are three key elements: The hearing rule The 'no bias' rule requires that people whose interests may be affected by a decision are given the opportunity to be heard. A reasonable opportunity to present a case should include a reasonable opportunity to prepare a case. requires that the decision maker does not have a personal interest in the outcome. The underlying rationale of this rule is that justice should not only be done, but should be seen to be done. The 'no evidence' rule requires that a decision be based upon reasonable evidence which is relevant to the matter being determined. The Validity of Decisions There are a number of circumstances which can cause a decision to be invalid. A decision may be invalid where the decision-maker: is not empowered through an Act or delegation fails to conform to a procedure in the relevant legislation acts for a wrong purpose takes into account irrelevant considerations fails to take into account relevant considerations acts unreasonably acts on the basis of insufficient evidence, or acts at the dictation of another person Decisions can have a direct and often powerful effect on people. It is important that decision-makers are aware that often people's circumstances and the consequences of decision may differ widely. Decision-makers should ensure that those affected by their decisions understand the basis of the decisions.
6 Equally, people affected by a decision should ensure that they understand the basis of the decision and, where decision-making processes were sound, accept that decision. People who are dissatisfied with decisions have the right to review in accordance with community standards as reflected in ATO review processes. Communicating the decision So you've come to a decision which you believe is good, well reasoned, fair etc. All of that work can be wasted if you do not take the time to communicate your decision appropriately. Negative reactions to decisions can be avoided or minimised by putting some thought and care into the way a decision is communicated. Some points to consider are: Mode of delivery There is nothing worse than receiving bad news from a cold and impersonal letter. Whenever the decision you make is likely to have a major impact on someone else's life, it is always best to try and talk to them face to face or over the phone before they receive the news in writing. However, it is also important that you should put your reasons in writing so that each party has a precise record of the decision and reasons for it. Depth of explanation Decisions which are likely to have a small impact on people will need little explanation to be accepted by others. However, decisions which have a major impact on others may need to have the reasoning clearly explained in some depth before people will accept them. Where there is a lot of detail required to an explanation it may be wise to choose several forms of communication in order to ensure that your reasoning is well understood. For example, you might initially inform a person of your decision and briefly discuss your reasons over the phone, you might then follow up with the full detail of your decision set out in writing, lastly you might arrange a face to face meeting with the people affected to clarify any points they still don't understand. Summary If you put a little extra work into ensuring that your decision includes all the elements of a good decision and your reasons have been clearly communicated to affected people, then you are much less likely to have your decisions questioned or contested.
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