Download Topic 7 COMMUNICATION AND DECISION MAKING

Topic 7
COMMUNICATION
AND DECISION
MAKING
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Introduction

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Communication and Model
of Decision Making
Developing Effective
Participation
Supportive Communication
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Topics of Discussion

DEFINITION OF
COMMUNICATION AND
DECISION MAKING

MODEL OF DECISION
MAKING
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Topics of Discussion

DECISION MAKING
METHODS

DEVELOPING EFFECTIVE
PARTICIPATION
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Topics of Discussion


SUPPORTIVE
COMMUNICATION
CASE STUDY – McDonald’s
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Definition

Communication
 According to Gibson et al. (1997)
communication can define as the
transmission of information and
understanding through the use of
common symbols. The common
symbols may be verbal or nonverbal.
 Hamilton and Parker (2001) define
communication is the process of
people sharing thoughts, idea and
feelings with each other on commonly
understandable ways.
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Definition (cont)

Decision Making
According to Gibson et al. (1997)
decision making is that people behave
as individuals and as members of
groups, within an organizational
structure and they communicate for
many reasons. One of the most
important reasons is to make decisions.
 Decisions means to achieve some result
or to solve some problem; outcome of a
process influenced by many forces.

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MODEL OF DECISION
MAKING
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The decision making cycle
- proposed by Cooke and Slack
(1984)
The decision making process
- proposed by Gibson et al. (1997)
Anticipatory management process
- proposed by William and James
(1997)
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The Decision Making Cycle
Set
objectives
Recognize
problem
Observe /
Monitor
Decision
making
cycle
Understand
problem
Determine
options
Evaluate
options
Implement
Choice
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Decision Making Process
Establishing specific goals
and objectives and measuring
results
Revis
e
Identifying problems
Revis
e
Developing alternatives
Revis
e
Evaluating alternatives
Revis
e
Choosing an alternatives
Revis
e
Implementing the decision
Revis
e
Controlling and evaluating
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Anticipatory Management Process
Identify emerging issues
Write issue briefs
Prioritize issues
Assign responsibility
Frame high priority issues
for issue management (IM)
10 step IM process
Issue owner
Issue action team
Situational assessment
Study results
Identify stakeholder
Organizational position
Stakeholder objectives
Organizational objectives
Action plan
Measurement / tuning
Performance evaluation
Frame medium priority issues for
maintenance / policy
Frame low
priority
issues for
monitoring
Assign in-house responsibilities
Gain consensus on corporate impact
Formulate corporate policy
Monitor issues
Continued to maintain or
operationalize
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DECISION MAKING METHODS
There are 4 ways to make business
decisions such as:
 CONSENSUS
 MAJORITY VOTE
 MINORITY DECISION
 EXPERT OPINION
 AUTHORITY RULE
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Consensus
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Collective group decision that each
member willing to support – entire
agreement.
Purest form is unanimous – the belief of
each member that the decision reached is
best possible one.
May support decision that is not their first
choice.
Valued more highly in some cultures.
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

Requires spirit of cooperation,
willingness to experience temporary
disagreements, commitment to listen
carefully to ideas and win-win attitude.
Disadvantage – takes long time, not
best approach for minor issues.
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Majority Vote
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Needs plurality support of members.
Much quicker and easier to reach.
Works well on minor issues but not
on more important decisions.
Disadvantage – leave minority
members unsatisfied and resentful.
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Minority Decision
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Few members make decision affecting entire
group.
E.g. executive committee act on behalf of the
board directors – represent shareholders.
Minority decision made in less exalted
circumstances.
Does not take entire group’s creative thinking
which the talents of subgroup is adequate for a
task.
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Expert Opinion
Decision made by relying on one person
expert opinion who has the knowledge or skill.
 Experts due to specialized in training or by
experience.
 Disadvantages :- is not always a wise approach.
- is not easy to tell who the expert because
length of experience not a guarantee.
- some geniuses may be ignored.

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Authority Rule
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Designated leader makes final decision.
Often listen to ideas and suggestions from
members before making decisions themselves.
Input help make higher quality decisions.
Disadvantage – the disappointment that might
follow if their suggestions are not accepted.
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CHOICE OF A DECISION
MAKING METHODS
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What type of decision is being
made?
How important is the decision?
How much time is available?
What are the personal
relationships among members?
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DEVELOPING
EFFECTIVE
PARTICIPATION

To function well, each member must
be alert about issues or problems
that may arise whenever people try to
communicate.
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RECOGNIZE BOTH
GROUP AND PERSONAL
GOALS
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Every business and personal group
operates to achieve specific goal.
E.g. selling product.
To pursue a group goals, members
usually have their own individuals
goals.
Sometimes it is identical with the
group goals.
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RECOGNIZE BOTH
GROUP AND PERSONAL
GOALS
GROUP GOAL
INDIVIDUAL GOAL
Athletic team wants to win Athlete wants to be star
league championship.
for social rewards.
Sales department wants
to meet annual sales
target.
Sales representative
wants to earn bonus and
promotions.
Company wants
employee to attend
seminar in Melaka.
Employee wants to visit
family in Melaka.
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RECOGNIZE BOTH
GROUP AND PERSONAL
GOALS
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Personal goals are not necessary harmful if they
are compatible with group’s objective.
They can actually help the group to achieve its
goals.
Problems do occur when there is a conflict
between individual’s goals and group’s goals.
E.g. Bill afraid of losing his job because of a
mistake that has been made, he may
concentrate on trying to avoid being blamed
rather than on solving Lina
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RECOGNIZE BOTH
GROUP AND PERSONAL
GOALS
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Group will be most happiest and efficient when
members reach their personal goals.
Can boost the effectiveness by doing everything
possible to help members satisfy those goals.
In return you will get dividends in terms of
energy and loyalty from happy members.
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RECOGNIZE BOTH
GROUP AND PERSONAL
GOALS
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Personal goals that are not made public are
called ‘HIDDEN AGENDAS’.
Not necessary harmful where some of hidden
agendas are even beneficial. E.g. a young
worker desire to communicate competence to
the boss by volunteering for difficult jobs.
Others are harmful such as 2 feuding members
who use meeting to disparage each other can
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RECOGNIZE BOTH
GROUP AND PERSONAL
GOALS
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No single best way to deal with harmful hidden
agendas.
Sometimes is best to bring the goal out into the
open.
Better to confront the member privately.
Because the embarrassment of being unveiled
publicly is so great that the person becomes
defensive and denies that the hidden goal exist.
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RECOGNIZE BOTH
GROUP AND PERSONAL
GOALS
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At other times, it is best to treat hidden personal
goal indirectly.
E.g. 2 feuding subordinates continue to have
trouble working together, the manager can
assign them to different project or transfer one or
both of them to different groups.
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ENCOURAGE CREATIVITY
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One way to boost creativity of the group is through
brainstorming.
- an approach that encourage free thinking and
minimize conformity.
Coined by, Alex Osborn an advertising executive.
Noticed that group were most creative when they let
their imaginations run free.
Creativity was stifled when members begin
criticizing either their own ideas or others.
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ENCOURAGE CREATIVITY

Steps in brainstorming:-
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A) Conduct a Warm-Up Session
- all evaluations & criticism are
forbidden in the early stages.
- Wild & crazy ideas are encourage.
- Quantity not quality ideas is the goal.
- New combinations ideas are sought.
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B) Generate Possible Solutions
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ENCOURAGE CREATIVITY
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Steps in brainstorming:-
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C) Eliminate Duplicate Ideas
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D) Evaluate Ideas
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SUPPORTIVE COMMUNICATION
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Generally proceeds from one person’s feeling of
empathy with another.
Supportive communication is other-directed or
problem oriented to the extent that someone who
communicates supportively is genuine, sincere,
honest, and spontaneous.
Characterized by actions that do not seek to
evaluate others, although it could evaluate a
problem or issue.
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SUPPORTIVE COMMUNICATION
Supportive Communication
Defensive Communication
Description : Describing your
feelings without making the other
person feel wrong
Problem Oriented : Focusing on
issues and good solutions
Evaluation : Judging others and
making them feel judged
Spontaneity : Communicating openly
and honestly
Strategizing : Trying to manipulate
others for your own ends
Empathy : showing your regard for
the other person
Neutrality : Communicating
disinterest and lack of caring
Equality : Minimizing differences,
treating others equally
Distancing : Emphasizing differences
in status and role
Provisionalism : Communicating
tentativeness and openness to
others
Certainty : Implying that you are
always right, never being unsure for
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open
Control : Threatening and
dominating others
CASE STUDY
McDonald's Voluntarily Stops Playmobil
Promotion And Recalls
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McDonald’s had applied the Anticipatory
Management Decision Process Model.
In 1983, McDonald's undertook the largest toy
recall ever, yet it went largely unnoticed by the
public. The company discovered that one of the
toys it planned to promote had a possible
choking hazard. McDonald's promptly recalled
the product, avoiding potential disaster.
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McDonald's
Quality and Safety - Toys

McDonald's are fully aware of
poorly designed toys. That's why
every McDonald's toy is designed
with safety in mind. At McDonald's,
the RAM Consulting is given the
task to manage the McDonald's
Safety Specification Manual.
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McDonald's
Quality and Safety - Toys
Cont……

The consulting firm also reviews
products during development, tests
products during manufacture,
checks for compliance to safety
standards, provides safety training
and education and proactively
researches to continually improve
McDonald's safety standards.
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McDonald's
Quality and Safety - Toys
Cont……
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Hence, every McDonald's toy will
be tested to meet McDonald's
Core Safety as well as any
applicable
country
safety
requirements. The former is
usually more stringent than
government regulations.
The strict concept and design
review will check on the issue such
as Choking Hazard.
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CONCLUSION
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Decision making is a fundamental process in
organizations. Managers make decisions on the
basis of the information (communication) they
receive through the organization structure and
the behavior of individuals and groups within it.
Decision making should be viewed as a
multiphased process in which the actual choice
is only one phase.
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CONCLUSION
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The decision making model is influenced by
numerous environmental and behavioral
factors.
The Anticipatory Management Decision
Process Model applied by McDonald’s
focuses on uncovering emerging issues and
gives you a way to evaluate how serious
those issues are and what impact they may
have on your organization, so you can make
decisions in time.
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