In Leading After a Layoff I talk about avoiding heroic leadership and creating a collaborative environment where you help your team find the solution to a problem rather than dictating the solution.
The key is to move from thinking about What the decision should be to thinking about How the decision should be made. As the manager, you can set up the framework for the debate and discussion.
In this post from the Management Skills Blog, Tom Foster shares a simple framework for solving problems. So as a manager, you want to consider leading your team through this process.