Final answer:
The Vroom Jago model is a decision-making framework that guides managers on the level of subordinate participation in decisions, balancing between transaction and conformity costs.
Step-by-step explanation:
The Vroom Jago model focuses on how managers lead through their use of decision-making methods. It is a tool that helps managers decide how much participation should be allowed from subordinates in the decision-making process. This model considers the importance of quality and acceptance of a decision, and the amount of information the leader and subordinates possess. The model's framework leads managers to a range of decision-making strategies based on different scenarios, from autocratic to consultative to group-based decisions.
It is incorrect to say that the Vroom Jago model is only useful in programmed decision situations or that it forces managers to make decisions without participation. Nor does it help managers to avoid participation. Instead, the model provides a systemic way to evaluate the best approach to decision-making by balancing the effectiveness and efficiency of different levels of stakeholder involvement. Transaction costs are typically higher in group decision-making due to the time and effort required to involve multiple parties, while conformity costs can be higher when decisions are made autocratically without consideration for diverse perspectives.