Every boss will tell you that they like to greenlight the ideas of their employees. Doing so makes them popular, and the “yes” will likely promote creativity. But the truth is, sometimes, the boss has to say “no.” It might be for a wide range of reasons, from a lack of budget and resources to a misalignment with the organization’s goals.
So if you are a boss, you have to get used to the fact that you may have to say “no,” even when you want to say “yes.”

An effective leader learns how to say no without stifling creativity and keeping the door open for the future.
That means a boss should acknowledge interest in a new idea. Something like, “That’s an interesting idea; let’s spend some time looking at what this would mean.” This allows the leader to remain approachable while a quick no will appear like you are unwilling to listen. With additional brainstorming, you might find a way of getting to a yes.
When you are presented with an idea, don’t reject it immediately. Even when you are told that a decision must be made on the spot, it rarely does. Consider what you have been told carefully. Take time to seek other input whenever possible. You will also want to examine budget and resource implications.
If you’ve asked for ideas and get recommendations that don’t meet what you need, consider that your instructions might not have been clear. Step back and make sure that your goals and expectations are clear.
If your team presents an idea that you like but cannot afford, help the group think of more realistic alternatives.
Get used to the idea that you can’t say “yes” to everything.
When the answer has to be no, don’t apologize because you aren’t doing anything wrong. You are doing your job.
Be honest about your decision. If you are rejecting due to budget, say so.
Be considerate when delivering your decision. Chances are your team or individual employee spent a lot of time thinking about the idea. Let them down quickly and give them a reason to continue bringing you their thoughts.