Need for approval

Approval is the act of granting authorization or consent. In terms of management, it is the process of affirming the validity of a plan or proposal. Approval is essential in order to ensure that decisions are made in the best interest of the organization and that all stakeholders are consulted. It is important for managers to recognize that approval does not always mean agreement, and that it is possible to approve a proposal without being in full agreement with it. It is also important to understand that approval should be based on facts, and not on emotion or opinion.

Example of need for approval

• The need for approval may arise in many situations. For example, when a manager is considering a new policy, they may need to get approval from higher-level managers before implementing it. Similarly, when a business wants to make a large purchase, such as a new office building, they must get approval from their board of directors before they can proceed. Additionally, when a company wants to move into a new market, they must get approval from their shareholders before they can proceed. Finally, when a company wants to enter into a new contract with a supplier or customer, they must get approval from their legal team before they can proceed.

Types of approvals

Approval is an important part of any decision-making process, as it ensures that all stakeholders are consulted and that a plan or proposal is valid. There are several different types of approval that may be needed, including:

• Financial Approval: This type of approval is needed for any project or proposal that involves the use of financial resources, such as funding or budgeting. Financial approval typically requires an analysis of the potential financial impact of the project or proposal, as well as a review of the associated risks.
• Regulatory Approval: This type of approval is needed for projects or proposals that may involve the use of restricted resources or activities, such as the use of hazardous materials or activities that are regulated by government agencies.
• Contractual Approval: This type of approval is needed for any project or proposal that involves the signing of a contract or agreement between two or more parties. Contractual approval typically involves a review of the terms of the agreement, as well as an analysis of the associated risks.
• Legal Approval: This type of approval is needed for any project or proposal that may involve potential legal risks or liabilities. Legal approval typically involves a detailed review of any potential legal issues, as well as an analysis of the associated risks.

Advantages of need for approval

The need for approval provides several advantages. These include:

• Improved decision-making, as the process of approval ensures that all stakeholders have been consulted and that plans and proposals have been validated.
• Increased accountability, as the approval process provides a clear indication of who is responsible for a particular decision and what their role is.
• Increased transparency, as the approval process provides an audit trail and makes it easier to track the decision-making process.
• Increased efficiency, as the approval process eliminates the need for lengthy and costly debates and discussions.
• Increased collaboration, as the approval process encourages stakeholders to work together to reach a consensus.

Limitations of need for approval

Coming to the need for approval, there are certain limitations that must be considered. These include:

• The time required for approval can be excessive and can cause delays in decision-making.
• The process of approval can be difficult and cumbersome, especially if there are multiple stakeholders involved.
• Approval can be difficult to attain if there are disagreements among stakeholders.
• Approval can be based on subjective criteria, as opposed to objective criteria.
• Approval can be influenced by biases and preconceived notions.
• Approval can be used as a way to control decision-making, rather than focusing on the best interests of the organization.

Other approaches related to need for approval

In addition to the approval process, there are other approaches that are often used when it comes to decision-making. These approaches include:

• Collaboration - This approach encourages stakeholder participation, as it involves bringing together a group of people with different perspectives to work together to make decisions.
• Negotiation - This approach involves two or more parties coming together to discuss and reach an agreement. It is based on compromise and is often used when there is disagreement between parties.
• Consensus - This approach is used when all stakeholders must agree on a decision. It involves the stakeholders coming together to discuss the pros and cons of a decision and reaching a compromise.

In conclusion, approval is an important part of the decision-making process, but there are other approaches that can be used as well. Collaboration, negotiation, and consensus are all approaches that can be used to ensure that decisions are made in the best interests of the organization and that all stakeholders are consulted.

Need for approval — recommended articles

Open tender — Primary and secondary stakeholder — Principal agent problem — Collective decision — Types of stakeholders — Declarations of interest — Types of governance — Project owner — Styles of conflict management

References

• Dozier, J. B., Husted, B. W., & Mcmahon, J. T. (1998). Need for approval in low-context and high-context cultures: A communications approach to cross-cultural ethics. Teaching Business Ethics, 2(2), 111-125.