This contemporary theory was initially developed by Vroom and Yetton and later on revised and expanded by Vroom and Jago. The model attempts to prescribe how much participation subordinates should be allowed in making decisions.
The goals of the model are: (i) to protect the quality of the decision and (ii) to ensure that the decision is accepted by subordinates.
The Vroom-Yetton-Jago Model assumes that no one decision-making process is best for all situations. The extent of subordinate participation in the decision-making process depends on the problem attributes.
Before determining an appropriate decision-making style, the leader needs to consider the following aspects:
(i) Quality requirement: How important is the quality of this decision?
(ii) Commitment requirement: How important is subordinate commitment to the decision?
(iii) Leader’s information: Does the leader have sufficient information to make a high quality decision?
(iv) Problem structure: Is the problem well structured?
(v) Commitment probability: Are the subordinates likely to be commited to the decision?
(vi) Goal congruence: Do subordinates share the organizational goals to be attained in solving this problem?
(vii) Subordinate conflict: Are the preferred solutions likely to create conflict among subordinates?
(viii) Subordinate information: Do subordinates have sufficient information to make a high quality decision?
The Vroom-Yetton-Jago model requires the use of decision-trees involving the answers to the preceding eight questions. The model identifies five decision-making styles:
(a) The manager alone takes the decision.
(b) The manager elicits information from subordinates but makes the decision alone. Subordinates may or may not be informed about the situation.
(c) The manager shares the situation with subordinates individually and asks for information and evaluation. Subordinates do not meet as a group and the manager alone takes a decision.
(d) The manager and subordinates meet as a group and discuss the situation, but the manager alone takes the decision.
(e) The manager and subordinates meet as a group discuss the situation and together make a decision. However, because this model is relatively new, it has not been fully scientifically tested.