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Topic 7 COMMUNICATION AND DECISION MAKING Lina 2010 1 Introduction Communication and Model of Decision Making Developing Effective Participation Supportive Communication Lina 2010 2 Topics of Discussion DEFINITION OF COMMUNICATION AND DECISION MAKING MODEL OF DECISION MAKING Lina 2010 3 Topics of Discussion DECISION MAKING METHODS DEVELOPING EFFECTIVE PARTICIPATION Lina 2010 4 Topics of Discussion SUPPORTIVE COMMUNICATION CASE STUDY – McDonald’s Lina 2010 5 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. Lina 2010 6 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. Lina 2010 7 MODEL OF DECISION MAKING 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) Lina 2010 8 The Decision Making Cycle Set objectives Recognize problem Observe / Monitor Decision making cycle Understand problem Determine options Evaluate options Implement Choice Lina 2010 9 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 Lina 2010 10 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 Lina 2010 11 DECISION MAKING METHODS There are 4 ways to make business decisions such as: CONSENSUS MAJORITY VOTE MINORITY DECISION EXPERT OPINION AUTHORITY RULE Lina 2010 12 Consensus 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. Lina 2010 13 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. Lina 2010 14 Majority Vote 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. Lina 2010 15 Minority Decision 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. Lina 2010 16 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. Lina 2010 17 Authority Rule 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. Lina 2010 18 CHOICE OF A DECISION MAKING METHODS What type of decision is being made? How important is the decision? How much time is available? What are the personal relationships among members? Lina 2010 19 DEVELOPING EFFECTIVE PARTICIPATION To function well, each member must be alert about issues or problems that may arise whenever people try to communicate. Lina 2010 20 RECOGNIZE BOTH GROUP AND PERSONAL GOALS 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. Lina 2010 21 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. Lina 2010 22 RECOGNIZE BOTH GROUP AND PERSONAL GOALS 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 the2010 problem. 23 RECOGNIZE BOTH GROUP AND PERSONAL GOALS 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. Lina 2010 24 RECOGNIZE BOTH GROUP AND PERSONAL GOALS 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 only harm the group. Lina 2010 25 RECOGNIZE BOTH GROUP AND PERSONAL GOALS 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. Lina 2010 26 RECOGNIZE BOTH GROUP AND PERSONAL GOALS 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. Lina 2010 27 ENCOURAGE CREATIVITY 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. Lina 2010 28 ENCOURAGE CREATIVITY Steps in brainstorming:- 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. B) Generate Possible Solutions Lina 2010 29 ENCOURAGE CREATIVITY Steps in brainstorming:- C) Eliminate Duplicate Ideas D) Evaluate Ideas Lina 2010 30 SUPPORTIVE COMMUNICATION 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. Lina 2010 31 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 Lina 2010to suggestion 32 open Control : Threatening and dominating others CASE STUDY McDonald's Voluntarily Stops Playmobil Promotion And Recalls 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. Lina 2010 33 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. Lina 2010 34 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. Lina 2010 35 McDonald's Quality and Safety - Toys Cont…… 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. Lina 2010 36 CONCLUSION 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. Lina 2010 37 CONCLUSION 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. Lina 2010 38