communication, motivation, leadership, decision making

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Communication    is the process of exchanging information, ideas, feelings and understanding between sender and receiver. It is the process of conveying meanings  between two persons. It is a systematic process of conveying, listening and understanding something between two or more persons through words, figures, symbols pictures, body language, colors and sounds. Characteristics: -process of interaction/ inter-active process between persons -two-way process between the sender and the receiver (exchange of ideas) -is a social process -adapted to the changing needs of the business environment -involves at least two persons (sender and receiver) -should be properly planned (to reach the target audience) -should be performed by all superiors and subordinates in all levels of the organizational hierarchy -aims to extract desired response/data from the receiver -expressed through words, data, symbols, body language, pictures, figures and sounds -may be oral, written or gestural -may be directed downward, upward, horizontally, or on the same level -end result = attain harmony, understanding and cooperation in the organization Objectives and Goals -to keep employees well-informed -provide employees with proper orders/instructions -gather information (from employees) that will help in decision making  processes -make employees interested in their job & enjoy working in the company in general -express management’s interest & satisfaction in its personnel -reduce fast turn-over of personnel -motivate the employees -instill in employees personal pride and joy being a part of the company Importance -facilitates efficient functioning of the enterprise -ensures proper planning -facilitates sound decision making -is at the heart of the process of organizing -ensures effective staffing -essential for leading people -enhances motivation and morale -facilitates good coordination -required for effective control -promotes democratic management -promotes goodwill, understanding, and the good image of the organization -avoids illusion and ignorance -facilitates organizational change Process  Develop An Idea    develop an idea or thought that the sender wishes to convey. Unless there is a worthwhile message to transmit, all other steps will become useless  Encode    put into suitable words, charts or other symbols for transmission  Transmit    transmission by the method chosen (channel of communication)  Receive    the message is transferred to the receiver  Decode    the message is decoded so that it can be understood  Use    the receiver uses the communication (ignoring it, performing the task called for, storing the information or doing otherwise as directed) Four Types of Communication Networks  Chain Network     vertical line from top to bottom and bottom to top of the organizational hierarchy  Circular Network     moves in a circular way; individuals can communicate with their immediate left or right, but not with any other person in the organization/group  Wheel or Star Network     the members of the organization usually do not communicate directly with each other; members communicate through one superior/manager; the manager acts as the ce ntral point; autocratic network  Free-flow/ Decentralized/ All Channel Network     lines are not structured; communication can be done freely and frankly with all other members; informal network Categories: Classifications:  On the basis of organizational structure  Formal Communication    communication which travels t hrough the formally established channels; establishes single path communication channels; established by the management; -may be directed downward, upward, horizontally, or on the same level  Informal Communication - Informal communication takes place on the  basis of informal relations between the members of the group. It is on the basis of Personal Communication in nature and not a formal communication. It does not flow through the official lines of the chain of command and channels of

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8/10/2019 Communication, Motivation, Leadership, Decision Making

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Communication  –  is the process of exchanging information, ideas, feelings and

understanding between sender and receiver. It is the process of conveying meanings

 between two persons. It is a systematic process of conveying, listening and understanding

something between two or more persons through words, figures, symbols pictures, body

language, colors and sounds.

Characteristics:

-process of interaction/ inter-active process between persons

-two-way process between the sender and the receiver (exchange of ideas)-is a social process

-adapted to the changing needs of the business environment

-involves at least two persons (sender and receiver)

-should be properly planned (to reach the target audience)

-should be performed by all superiors and subordinates in all levels of the

organizational hierarchy

-aims to extract desired response/data from the receiver

-expressed through words, data, symbols, body language, pictures, figures and

sounds

-may be oral, written or gestural

-may be directed downward, upward, horizontally, or on the same level

-end result = attain harmony, understanding and cooperation in the organization

Objectives and Goals 

-to keep employees well-informed

-provide employees with proper orders/instructions

-gather information (from employees) that will help in decision making

 processes

-make employees interested in their job & enjoy working in the company in

general

-express management’s interest & satisfaction in its personnel -reduce fast turn-over of personnel

-motivate the employees

-instill in employees personal pride and joy being a part of the company

Importance 

-facilitates efficient functioning of the enterprise

-ensures proper planning

-facilitates sound decision making

-is at the heart of the process of organizing

-ensures effective staffing

-essential for leading people

-enhances motivation and morale

-facilitates good coordination

-required for effective control

-promotes democratic management

-promotes goodwill, understanding, and the good image of the organization

-avoids illusion and ignorance

-facilitates organizational change

Process 

  Develop An Idea  –  develop an idea or thought that the sender wishes to convey.

Unless there is a worthwhile message to transmit, all other steps will become

useless  Encode  –  put into suitable words, charts or other symbols for transmission

  Transmit  –  transmission by the method chosen (channel of communication)

  Receive  –  the message is transferred to the receiver

  Decode  –  the message is decoded so that it can be understood

  Use  –  the receiver uses the communication (ignoring it, performing the task

called for, storing the information or doing otherwise as directed)

Four Types of Communication Networks 

  Chain Network   –  vertical line from top to bottom and bottom to top of the

organizational hierarchy  Circular Network   –  moves in a circular way; individuals can communicate

with their immediate left or right, but not with any other person in the

organization/group

  Wheel or Star Network   –  the members of the organization usually do not

communicate directly with each other; members communicate through one

superior/manager; the manager acts as the central point; autocratic network

  Free-flow/ Decentralized/ All Channel Network   –  lines are not structured;

communication can be done freely and frankly with all other members; informal

network

Categories:

Classifications: 

  On the basis of organizational structure 

  Formal Communication  –  communication which travels through the

formally established channels; establishes single path communication

channels; established by the management; -may be directed downward,

upward, horizontally, or on the same level

  Informal Communication - Informal communication takes place on the

 basis

of informal relations between the members of the group. It is on the basis of

Personal Communication in nature and not a formal communication. It does notflow through the official lines of the chain of command and channels of

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communication. Informal communication is sometimes referred to as grapevine.

It transmits information about what people are doing. It often

leads to rumors about the organization.

  Four Networks in Transmitting Information

1. Single Strand  –  One and one person communication

2. Gossip Chain  –  Every member of the informal group talks with

everyone and it is usually about personal matters

3. Probability Chain  –  Communication of information is done randomly

4. Chester Chain  –  Grapevine communication generally operates like aChester chain

  On the basis of direction

  Downward Communication - Downward Communication is one that

flows from top to bottom or from superior to subordinates down the lines of

the organizational structure.

  Upward Communication - Upward communication is one that f lows from

 bottom to top management or from subordinates to superiors along with the

chain of command in the organizational hierarchy. The communication may be

in the form of progress reports, problems, suggestions or recommendations,

opinions, ideas, grievances, complaints, appeals and requests, and explanations.

 

Horizontal Communication - The Horizontal or Lateral communication refers

to the communication between personnel of the same level or position. The

objective of horizontal communication is to promote good coordination and

integration among the different departments or offices.

  Diagonal Communication - The Diagonal communication refers to the

communication between people who are neither in the same department nor on

the same level of organizational hierarchy. For example, the cost accountant,

who is interested in conducting a promotion cost analysis, may request

marketing representatives to report directly to him. When marketing

representatives forward reports directly to the cost accountant, then, it is said to

 be a diagonal communication. They need not forward their reports first the

marketing executive who shall, in turn, forward their reports to the cost

accountant. It helps to save time and to speed up decision-making.

  On the basis of mode of expression

  Written Communication - Written communication is expressed through

written words. It may be expressed through groups, charts' diagrams or pictures

with or without words. It may be in the form of letters, circulars, notes,

memoranda, reports, pamphlets, brochures, handbooks, manuals and others.

  Oral or Verbal Communication - Two Shades (Oral or Verbal)

Communication is expressed through words-of-mouth or spoken words. It may

 be in the form of face-to-face conversation or through any electronic mode such

as telephone, cellular phone, in tercom and other means. Oral communication

may also be in the form of one-to-one conversations such as meetings, group

discussions, joint consultations, announcements, group meetings, speeches,

lectures, radio and T.V. broadcasts.

  Gestural or Non-Verbal Communication - The Gestural (Non-verbal)

communication is a mode of communication through postures or gestures of the

different parts of the body, such as movement of the lips, wink of an eye, the

wave of hands, movement of heads, facial expressions, tone of voice, and any

other movement of body or body parts which may be used to transmit the

message.

  Non-verbal mode is considered as one of the effective modes of

communication. The feelings, emotions and attitudes of the person can be

easily conveyed. lt can also easily convey the reactions and responses of thelistener of the message or information

Commandments of Good Communication

-Seek to clarify your ideas before communicating

-Examine the purpose of each communication

-consider the total physical setting

-consult with others in planning the communication

- be mindful while you communicate of the overtones as well as the basic

content of your message

-take the opportunity to convey something of help or value to the receiver

-follow-up your communication-communicate for tomorrow as well as for today

-be sure that your actions support your communications

-seek not only to be understood but to understand

Barriers 

-Poorly Expressed Message

-Complex Organizational Structure

-Status Barriers

-Filtering Information

-Semantic Barriers

-Language Barriers

-Different Backgrounds

-Emotional Attitude

-Undisclosed Assumptions

-Inadequate Attention or Half-Listening

-Barriers Due to Lack of Mutual Trust

-Resistance to Change

-Mechanical Barriers

Strategies to Effective Communication

-Clarity and Completeness-Proper Language

-Proper Channel or Medium

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  -Sound Organizational Structure

-Training and Development of Employees

-Effective Listening

-Consultation and Participation

-Motivation, Mutual Trust, and Confidence

-Integrity Factor

- Use of Formal Communication

-Effective Feedback Mechanism

-Proper Gestures and Tones

Effective Listening 

-enable the receiver/s to take exactly the idea the sender wishes to convey

*Stop Talking

*Put the talker at ease

*Show the talker you want to listen

*Remove Distractions

*Empathize with talkers

*Be patient

*Hold your Temper

*Go easy on argument and criticism

*Ask questions

*Stop Talking

Motives –  expressions of personal needs and are internal in nature

Incentives  –  external stimuli to persons; things perceived in the environment that are

deemed to be helpful in attaining personal goals

Tensions  –  created by needs which are turned by one’s culture into wants

Basic Psychological Needs/ Primary Needs  –  indispensible for survivalSocial and Psychological Needs/ Secondary Needs  –  bring about a number of motives

in each individual

Motivation  –  the way in which urges, drives, desires, inspirations, or needs direct and

explain the behaviour of human beings

Abraham Maslow’s Hierarchy of Needs  –  as one becomes more self-actualized and

self-transcendent, one develops wisdom and automatically knows what to do in a wide

variety of situations

1)  Physiological Needs

2)  Safety/Security

3)  Belongingness and Love

4)  Esteem

5)  Cognitive

6)  Aesthetic

7)  Self-actualization

8)  Self-transcendence

Need Priorities at Work   –  needs are highly influenced by one’s environment; The

importance of a need to an employee depends in part on the degree of importance that

said need has to his social and cultural environments

Employee’s Wants  –  wants are derived from needs; wants are motivating factors

conditioned by the environment; an incentive is more motivating than compensation; the

simple incentive as leading toward satisfactory goals

Perception  –  man’s reaction to incentives are contingent on how he perceives the whole

situation; a man evaluates what he perceives and decides to act on the basis of his

decision which may be either rational or emotional; a person tends to perceive what he is

 previously led to believe he will perceive

Maintenance Factors/ Satisfiers –  necessary in the job to maintain a reasonable level of

satisfaction in the employees; operate to dissatisfy employees when the needed

conditions are absent but their presence does not motivate employees in a strong way

Motivational Factors/ Motivators  –  a set of job conditions operate primarily to build a

strong motivation and high job satisfaction, but their absence is rarely strongly

dissatisfying

Herzberg Two Factor Theory

-Motivators  –  related to job content and are in many instances job-centered

Six Motivational Factors:1) Achievements

2) Recognition

3) Advancement

4) Work Itself

5) Possibility of growth

6) Responsibility

-Maintenance Factors  –  relate to job context and are mostly environment-centered

Ten Maintenance Factors

1) Company Policy and Administration

2) Technical Supervision

3) Interpersonal relations with Supervisor

4) Interpersonal Relations with Peers

5) Interpersonal Relations with Subordinates

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  6) Salary

7) Job Security

8) Job Security

9) Personal Working File

10) Working Conditions and Status

Intrinsic Motivators  –  direct motivation to perform the work because the act of

 performance is in itself rewarding

Extrinsic Motivators  –  motivation which take place after work or away from work, and

which provides no direct satisfaction at the time the work is done

Job Enrichment  –  providing improvements in terms of motivators; intends to keep the

maintenance factor steady or higher while increasing motivational factors

Job Enlargement  –  the former seeks to bring more motivators to the job by offering the

employee with more responsibility, more intrinsically satisfying work functions and more

 power over his environment; the job is made more complex and wider in scope in order

to make full use of each employee’s intellect and skills 

H Vroom’s Motivational Model –  a person’s motivation toward an action at a particular

time is determined by the anticipated values of a positive and negative outcomes

Motivation = Valence x Expectancy

Motivation  –  the product of the anticipated values from an action and the perceived

 probability that these values will be achieved by the action; the strength of a drive

towards an action

Valence  –  anticipated value and is defined as the strength of a person’s  preference forone outcome in relation to others

Expectancy  –  perceived probability; the strength of the belief that a particular act will be

followed by a particular outcome

Acquired Needs Theory/ Three-Need Theory/ Learned Need Theory   –  an individual’s

specific needs are acquired overtime and are shaped by one’s life experiences 

*Achiever Seekers –  seek to excel and appreciate frequent recognition of how well they

are doing

*Affiliation Seekers  –  look for harmonious relationships with other people; seek

approval rather than recognition

*Power Seekers  –  want power either to control other people(for their own goals) or to

achieve higher goals (for the greater good)

Morale  –  the attitude of individuals and groups toward their work environment and

toward voluntary cooperation to the full extent of their ability in the best interests of the

organization

Morale Surveys:

1) 

Objective Surveys  –  present both a question and a choice of answers in such away that the respondent merely has to mark the answer which is most closely

reflective of his response

2)  Descriptive Surveys  –  present the questions and allow the respondent employee

to answer in his own words

3)  Projective Surveys  –  present abstract situations unrelated to the job or the firm

and ask the worker to analyze and comment upon them; interpret attitudes

Existing Morale Indicators:

1)  Labor Turnover

2)  Productivity

3) 

Waste and Scrap

4)  Quality Records

5)  Absenteeism and Tardiness

6)  Reports of counselling, insurance and similar services

7)  Grievances

8)  Exit Interviews

9)  Accident Reports

10)  Medical Records

11)  Suggestions

12)  Training Record

Appraising and Rewarding Performance:

-Performance appraisal has to do with comparing an individual’s assignment. If

 performance is rated high, the individual is by and large rewarded one way or another.

Factors of Judging Performance:

1)  The requirements, duties and responsibilities and the standards of satisfactory

 performance

2)  The nature of the man and the extent or quality of his performance

Objectives of Performance Appraisal:

1) 

Provide feedback on employee performance

2)  Serve as a basis of personnel action

3)  Serve as management’s guide in employee counselling and discipline 

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4)  Improve better relations

5)  Improve supervision by making the superior more conscious on his duties in

supervising subordinate

6)  Develop supervisors

7)  Serve as a basis for changes

8)  Identify training needs and areas of management development

The Need to Evaluate Performance of Employees:

Employees, by and large, will know:1)  How they are performing

2)  What is expected of them

3)  How well they are meeting those expectations

4)  How they can improve

5)  How their superiors gauge their performance

Management Leadership

1)  Planning and Budgeting –  establishing

detailed steps and timetables for

achieving needed results, and then

allocating the resources necessary to

make that happen

2)  Organizing and Staffing –  establishing

some structure for accomplishing plan

requirements, staffing that structure

with individuals, delegating

responsibility and authority for carrying

out the plan, providing policies and

 procedures to help guide people and

creating methods or symptoms to

monitor implementation

3)  Controlling and Problem Solving  –  

monitoring results versus plan in detail,

identifying deviations, and organizing

 people to solve these identified

deviations or problems

4)  Produces a Degree of Predictability and

Order and has the potential of

consistently producing key results

expected by various parties

1)  Establishing Direction –  

developing a vision of the future,

often the distant future and

strategies for producing the

changes needed to achieve that

vision

2)  Aligning People –  communicating

the direction by words and deeds to

all those staff whose cooperation

may be needed as to influence the

creation of teams and coalitions

that understand the vision and

strategies, and accept their validity

3) 

Motivating and Inspiring –  

energizing people to overcome

major political bureaucratic and

resource barriers to change by

satisfying very basic, but then often

unfulfilled, human needs.

4)  Produce Change, often to a

dramatic degree and has the

 potential of producing extremely

useful change

Comparison: Leadership and Management Skills

Leader Manager

1)  Gain power through their actions and

 personal relations

2)  Are found throughout an organization

3)  Have followers who desires to be in the

team

4)  Depend on people for success

5) 

Provide vision in the terms of “the real benefit to you…” 

6)  Have self-conceived goals to better the

organization

7)  Strive to change the organization to best

meet needs as they perceive them

8)  Often view rules and procedures as

 bureaucratic red tape

9)  Work for results

10) Work through their people

1)  Have positional power on which to rely

2)  Are found in the organization’s higher

echelons

3)  Have subordinates who have been

assigned to them

4)  Depend on the system for success

5) 

Use the “this is your job..” approach  6)  Attempt to meet the goals provided by

the organization

7)  Work to maintain the organization’s

status quo

8)  View rules and procedures as necessary

to provide order

9)  Follow directives

10) Work with charts and computer

 printouts

Leader Manager

1) 

Visionary2)  Passionate

3)  Creative

4)  Flexible

5)  Inspiring

6)  Innovative

7)  Courageous

8)  Imaginative

9)  Experimental

10)  Independent

1) 

Rational2)  Consulting

3)  Persistent

4)  Problem-Solving

5)  Tough-minded

6)  Analytical

7)  Structural

8)  Deliberative

9)  Authoritative

10)  Stabilizing

Proactive Leadership Reactive Leadership

 

Taking charge in a conscious,

deliberate, active manner

  Looking ahead and anticipating the

desired future

  Planning for what will be accomplished

  Strategizing to prevent potential

 problems so as to spend less time on

fire-fighting and more time on fire-

 prevention

 

Living in an after-the-fact mode

  Spending most of the time reacting to

events after they have occurred

  Waiting passively for things to happen

and resolving problems to arise

  Fire-fighting that keeps leaders so

occupied that sometimes they don’t

have time to think about what caused

the fires

1)  Takes responsibility for actions

2)  Has a “can do” attitude 

3) 

Feels in control of the environment4)  Focuses on solutions or results wanted

5)  Thinks in terms of new possibilities

6)  Seeks options and focuses on

1)  Avoids blame or responsibility

2)  Sees reasons why things cannot be

done3)  Feels in no control of the environment

4)  Focuses on problems, obstacles or

what to avoid

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opportunities in situations

7)  Is opportunity-oriented –  concentrates

on finding strengths and resources

8)  Makes choices easily

9)  Is driven to excel by challenges and

risks

10)  Is open to change

11)  Is present and future-oriented

12)  Enjoys an inner calmness

13) 

Learns and grows from mistakes14)  Energized by vitality

15)  Has a positive self-image and high

self-esteem

5)  Is limited by what worked in the past

6)  Is blinded by the problems and

obstacles in a situation

7)  Is problem-oriented –  concentrates on

finding weaknesses and problems to

fix

8)  Finds it difficult to choose and decide

9)  Is afraid of taking risks and facing

challenges

10) 

Is resistant to change11)  Cannot let go of the past

12)  Suffers excessive inner stress

13)  Is devastated by failure

14)  Runs out of energy quickly

15)  Has a negative self-image and low self

esteem

Functions of Proactive Leadership:

1)  Provides a vision for the organization

2)  Communicates the organizational vision 

3)  Assumes responsibility and exercises initiative  

4)  Highly goal-oriented 

5)  Sets an example for others, personifies the ideal for the group and expresses the

core values of the organization 

Vision –  Driven Leadership

-Vision: an ideal and unique future state crystallized as an image or brief declaration

*operates as your dynamic force energized by voltage and vitality

*provides, lift, stretch, clarity and focus

*guides you to see beyond the immediate

*makes you future-oriented, concentrating on results rather than on activity

*shows you where you are going and why you are going there

*helps you spot opportunities that others have not seen

*gives you the driving power to see you through tough times

*makes the unreachable reachable and worthwhile future

*Involvement, interaction and mobilization are keys to making dreams and visions to

reality; leaders encourage collaboration and work in ways that maximize the

commitment of people.

Shared Vision:

-Attracts people to it and aligns them in the same directions-Keeps people focused, energized and on target

-Gives meaning and purpose to their lives and work and provides a motivating

environment for excellence

-Creates a challenging, empowering organization rather than a stifling, dehumanizing one

Shared Vision (Essential to):

-Communicate and stress open communications

-be accessible and visible

-involve people to help plan for change

-build a climate of trust

Different Leadership Styles

1)  Autocratic authoritarian Style

2)  Participative or democratic style

3)  Free-rein or laissez-faire style

4)  Paternalistic style

L Leadership is loyalty to God, country and people

E Enthusiasm, effort to help and secure others

A Advocacy, action and accomplishment

DDedication, discipline, dignity, decency, devotion to duty and

decisiveness for the general welfare

E Excellence and exemplary work for others to emulate

RReliability, responsibility, respect for the law and the rights of others, and

reconciliations for peace and unity

S Sincerity, service, self-sacrifice, social justice to make life better for mankind

HHumility, honesty, honor, helpfulness, and

hard work for accomplishment and fulfilment

I Integrity, interest, initiative, and idealism

PPatience, perseverance, beyond partisanship, religion or creed;

it works for peace, progress, and prosperity to mankind

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Concepts of Decision-Making:

1)  Information –  only the needed information must be obtained; “the more

information, the better” is not true, too much information can reduce the quality

of a decision

2)  Alternatives –  probabilities one has to select from; searching for pre-existing

alternatives will result in less effective decision-making; alternatives can be

identified or developed

3)  Criteria- the alternatives are evaluated on how well they possess each criterion

(advantages and disadvantages)4)  Goals –  a component of goal identification should be determined in every

instance of decision analysis: what is it you want to accomplish? Which should I

choose? What should I do? What are my goals? These questions should be

clarified in goal setting.

5)  Value –  how desirable a particular outcome is, the value of the alternative,

whether in pesos, satisfaction or other benefits

6)  Preferences –  reflect the philosophy and integrity of the decision maker

7)  Decision Quality –  evaluation whether or not a decision is good or bad: The

decision must meet the stated objectives most thoroughly and completely; The

decision must meet the stated objectives efficiently with concern over cost,

energy and side effects; The decision must take into account valuable by-

 products or indirect advantages

8)  Acceptance –  a vital factor that occasionally runs with one of the quality criteria;

those who must implement the decision/ who will be affected by it must accept

it both intellectually and emotionally; a decision that is socially unacceptable

will not work, on decisions that are implemented thoroughly will work the way

they are intended to.

Decision Making 

-the study of identifying and choosing alternatives based on the values and

 preferences of the decision makerMaking a decision involves the selection of alternatives to be considered. It is

not only to identify as many of these alternatives as possible but to select the one that best

fits with the goals, desires, lifestyle, values and so on of the decision maker.

-is the process of sufficiently reducing uncertainty and doubt about alternatives

to allow a reasonable choice to be made from among them

Types of Business Decisions 

1)  Programmed Decisions –  standard decisions which always follow the same

routine

2)   Non-Programmed Decisions –  are non-standard and non-routine; each decision

is not quite the same as any previous decision

3)  Strategic Decisions –  affect the long-term direction of the business firm; are of

the highest level

4)  Tactical Decisions - are medium-term decisions about how to implement

strategy

5)  Operational Decisions –  short-term decisions about how to implement tactics

Kinds of Decisions 

1)  Decisions Whether –  the yes/ no, either/ or, decision that must be made before

we proceed with the selection of the alternative

2)  Decisions Which –  involve a choice of one or more alternatives from among a

set of possibilities, the choice being based on how well each alternativemeasures up to a set of predefined criteria

3)  Contingent Decisions –  decisions that have been made put on hold until some

conditions are met

The Do’s and Don’ts of Decision-Making 

Do: 

1)  Be honest

2)  Accept the responsibility

3)  Use time wisely

4)  Have confidence

Don’t: 

1)  Have unrealistic expectations

2)  Make “snap” decisions 

3)  Take unnecessary action

4)  Fool yourself

Quality of Decision-Making 

1)  Continuous training and development of managers in decision-making skills

2)  Complete good information about the problems and alternatives

3)  Management skills in analysing information and handling its shortcomings

4) 

Experience and natural ability in decision-making5)  Risks and attitudes to risks

6)  Human factors

Constraints on Decision-Making 

1.  Internal Constraints

1.1.  Availability of funds and resources

1.2.  Existing business policy

1.3.  People’s ability and feelings 

2.  External Constraints

2.1.  Constitutional mandate, laws, rules, and regulations

2.2. 

Competitors

2.3.  Lack of technology

2.4.  Economic and climate condition

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2.5.  Legislations

2.6.  Lack of supplies (material)

2.7.  Lack of manpower

Steps in Decision-making 

1.  Define the Problem

1.1.  Size up the situation

1.2.  Set goals and priorities

2. 

Re-evaluate the situation2.1.  Consider your options

2.2.  Don’t make unnecessary decisions 

3.  Gathering Information

3.1.  Use your time wisely

3.2.  Seek advice

3.3.  Use all resources

4.  Think of alternatives

4.1.  Be open

4.2.  Don’t judge

4.3.  Record your ideas

5. 

Choose an alternative

5.1.  Think ahead

5.2.  Be practical

5.3.  Be creative

6.  Put your decision to work

6.1.  Take action

6.2.  Inform others

6.3.  Follow up your plan

6.4.  Be sure that the problem has not returned or taken another form

Approaches to decision-making 1.  Authoritarian Method –  the manager makes the decision based on the knowledge and

information he was able to gather.

2.  Group Method –  the members of the group share together their ideas and analyses,

and agree among themselves what decision to adopt and implement

2.1.  Free Discussion –  the problem is simply put on the table for the group to talk

2.2.  Developmental Discussion or structured discussion –  the problem is broken

down into steps and smaller parts with specific goals; ensures systematic

coverage of a topic; ensures that all members of the group are talking about the

same aspects of the problem at the same time

The decision-making process 

1.  Recognize the problem

2.  Analyze the problem

3.  Consider your goals

4.  Look for alternatives

5.  Select the best alternative

6.  Put your decision into action

7.  Accept the responsibility

8.  Evaluate your results

Improve your decision-making

1. 

Become aware of your own and you family’s values, the conditions whichsupport these values, and the choices which are available

2.  Develop sensitivity to the individual responses of persons affected by the

decision

3.  Be objective in viewing the problem that demands decisions

Planning for decision-making 

Planning makes decisions to be made in a more comfortable and intelligent way;

makes decisions easier by providing guidelines and goals for the decision; a type of

decision simplification technique

Benefits of Planning: 

1. 

Allows the establishment of independent goals

2.  Provides a standard of measurement

3.  Converts values to action

4.  Allows limited resources to be committed in an orderly way

Risk-taking 

Decision-making involves a degree of risk, such that it would be helpful to

examine risk and risk analysis, in order to gain an understanding of what is involved.

General Comments on Risk-Taking 

1.  Only the risk takers are truly free

2. 

There is really no such thing as permanent security in anything on earth3.  You are supposed to be afraid when you take risks

4.  Risk-taking normally involves a degree of separation anxiety

Guidelines on Risk-taking (Robert Harris) 

1.  Decide whether the risk is necessary or desirable

2.  Risk for the right reasons, when you are calm and thoughtful

3.  Have a goal

4.  Determine the possible loss as well as the gain

5.  Try to make an accurate estimate about the probability of each case

6.  When possible, take one risk at a time

7.  Use imaginary or role paying

8. 

Use a plan

9.  Act decisively

10.  Don’t expect complete success 

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Risk management strategies 

1.  Dismissing extremely remote or unrealistic possibilities

2.  Insofar as possible, avoid catastrophes

3.  Recognize the tradeoffs

4.  Maximize expected values