DECISION MARKING PROCESS

INDIVIDUAL AND GROUP DECISION MAKING

 Definition of decision making &Types of decisions,
 General decision making styles
 Group decision making
 Individual decision making
 How to overcome barriers to decision making
A decision is a choice made from among available alternatives. Decision making is the process
of identifying and choosing alternative course of action.
Types of decisions

1. Programmed decisions
These are decisions that are repetitive and routine e.g. decisions that involve customer
complaints or payments. Because they’re fairly structured and occur frequently, they tend to
follow established rules and so are virtually automatic.
2. Non-programmed decisions
They are those that occur under non-routine, unfamiliar circumstances, because they occur in
response to unusual, unpredictable opportunities and threats they are unstructured. The farther
one move up the organizational hierarchy, the more important ones ability to make non –
programmed decision become. Example, the decision to suspend learning at KARU was not
programmed.
General decision making styles: a decision making style reflects the combination of how an
individual perceives & responds to information
A team of researchers developed a mode of decision making styles based on the idea that styles
may vary along two different dimension; value orientation and tolerance for ambiguity.
Value orientation reflects the extent to which a person focuses on either task and technical
concerns or people and social concerns when making decisions.
Tolerance for ambiguity indicates the extent to which a person has a high need for
structure or control in his/her life – some people desire a lot of structure in their lives (a
low tolerance for ambiguity) and finds ambiguous situations stressful and psychologically
uncomfortable. Others do not have a high need for structure and can thrive in uncertain
situations (a high tolerance for ambiguity).
When the dimensions of value orientation and tolerance for ambiguity are combined, they
form the four styles of decision making. These are directive, analytical, conceptual and
behavioural.
High
Tolerance for ambiguity Analytical Conceptual

Low task & technical concerns Directive Behavioural

Value orientation refers to people & social concerns

Directive – Managers with a directive style has a low tolerance for ambiguity and is oriented
towards task and technical concerns on making decisions.
 They are efficient, logical, practical and systematic in their approach to solving problems.
 They are action oriented and decisive and like to focus on facts.
 In their pursuit of speed and results however, these people tend to be autocratic to
exercise power and control, and to focus on the short run.
Analytical – This style has a much higher tolerance for ambiguity and is characterized by the
tendency to over-analyze a situation. People with this style like to consider more information
and style. Analytical individuals are careful decision makers who take long to make decisions
but who also respond well to new or uncertain situations.
Conceptual – They have a high tolerance for ambiguity and tend to focus on the people or
social aspects of a work situation.
They take a broad perspective to problem solving and like to consider many options and future
possibilities conceptual types adopt a long-term perspective and rely on institutions and
discussions with others to acquire information.
They are also willing to take risks and are good at finding creative solutions to problems. This
style however, can foster an indecisive approach to decision making.
Behavioural – It is the most people oriented of the four styles.
 People with this style work well with others and enjoy social interactions in which
opinions are openly exchanged.
 Behavioural types are supportive, receptive to suggestions, show warmth and prefer verbal
to written information.
 Although they like to hold meetings, they have a tendency to avoid conflict and to be
concerned about others.
 The behavioural style can lead the people to have as hard time saying no while making a
decision.

GROUP DECISION MAKING [PARTICIPATORY]

Group decision making has 5 advantages and 4 disadvantages. For a group to have advantages
it must be made up of diverse participants.

Advantages
1. Greater pool of knowledge makes people give different opinions.
2. Better understanding of the decision rationale- the different opinions provide better
understanding and reasoning behind the decision, including the pros and cons leading to
the final step.
3. Different perspective; because different people have different perspectives, they see the
problem from different angles.
4. Intellectual stimulation: a group of people can brainstorm or bring greater intellectual
stimulation and creativity to the decision –making process than is usually possible with one
person acting alone.
5. Deeper commitment to the decision when one has been part of a group that brought into
the final decision, one is more committed to seeing that the course of action is successfully
implemented.
Disadvantages
1. A few people dominate or intimidate and the rest of the group will simply give in an
aggressive leader will exert disproportional influence, sometimes by intimidation. This cuts
down on the variety of ideas.
2. Group think; this occurs when members strive for the sake of pleasing others and thus
avoid accurately assessing the decision situation. Here, the positive team splint of the
group works against sound judgement.
3. Refers to people’s tendency to choose the decision that favours the majority rather than
push on for other possible solutions. Satisfying can occur because groups have limited
time, lack the right kind of information, or are unable to handle large amounts of information.
4. Goal displacement; this occurs when the primary goal is overtaken (subsumed) by a
secondary goal e.g. rivals trying to minimize an argument.

GROUP AND TEAMS

Group
A group is a collection of people performing as individuals. It is defined as two or more
freely interacting individuals who share collective norms, goals, and have a common
identity.
A group is different from a crowd, a transitory collection of people who don’t interact with one
another. It is also different from an organization, such as a labour union which is so large that
members also don’t interact, e.g. 10 employees meeting to exchange information/ideas.
A team is a collection of people with common commitment. It is a small group of people
with complementary skills who are committed to a common purpose, performance goals
and approach for which they hold themselves mutually accountable. The essence of a team
is common commitment teams are made up of a collection of 2-10 employees (individuals) who
have common characteristics.
Groups may be either formal or informal
Formal groups are created to do productive work for the organization and are headed by a
leader. It may be a division, department a work group or a committee. It may be permanent of
temporary; people are assigned to groups according to their skills and the organization
requirements.
An informal group is a group formed by people seeking friendship and has no officially
appointed leader, although a leader may emerge from the membership. It may be simply a
collection of friends who hang out with one another such as those who take coffee breaks
together or it may be an organized prayer breakfast, a service club or a rotary club.
A manager should be aware that informal groups can advance or undercut the plans of
formal groups.

Stages of group and team development/formation

There are five stages of development;
forming, storming, norming, performance and adjourning.
Forming is the process of getting oriented and acquainted. It is characterized by a high degree
of uncertainty as members try to break the ice and figure out who is in charge and what the
groups goal are. During this stage, leaders should allow people to have time and become
acquainted with one another as they socialize.
Storming is characterized by the emergence of individual personalities and roles and
conflicts within the group.
In norming conflicts are resolved, close relationships developed and unity and harmony
emerge.
In performing, members concentrate on solving problems and completing the assigned
task. Adjourning is when members prepare for disbandment.

Building effective teams

A group may evolve into a team through the five stages. There are seven considerations
managers must take into account in building a group into an effective team.
1. They must establish measurable goals and have feedback about members’ performance.
2. They must motivate members by making them mutually accountable to one another.
3. They must consider what size is optimal (teams with nine or fewer members have better
interaction and morale, yet they also have few resources, are possibly less innovative and
may have work unevenly distributed among members teams of 10-16 members have more
resources and can take advantage of division of labour yet they may be characterised by less
interaction, lower morale and social loafing.
4. Must consider the role each team member must play.
5. Must consider team norms- general guidelines or rules of behaviour. This helps the group
to survive, to clarify role expectations, to help individuals avoid embarrassing situations and
to emphasize the groups important values and identity.
6. They must be aware of group think a cohesive groups blind unwillingness to consider
alternatives. Two ways to prevent group think are to allow criticism and to allow others
perspective views.

BENEFITS OF GROUPS AND TEAMS

1. Fosters Creativity and Learning

Creativity thrives when people work together on a team. Brainstorming ideas as a group prevents
stale viewpoints that often come out of working solo. Combining unique perspectives from each
team member creates more effective selling solutions.

What you have learned from your individual experiences is entirely different from your
coworkers. Thus, teamwork also maximizes shared knowledge in the workplace and helps you
learn new skills you can use for the rest of your career.

Collaborating on a project creates an enthusiasm for learning that solitary work usually lacks.
Being able to share discoveries with the rest of your team excites employees and fosters both
individual and team knowledge.

This in turn leads to:

 Increased productivity and performance: groups that work well together can achieve
much more than individuals working on their own. A broader range of skills can be
applied to practical activities and sharing and discussing ideas can play a pivotal role in
deepening your understanding of a particular subject area.
 Knowing more about yourself: collaborating with others will help identify your own
strengths and weaknesses (for example, you may be a better leader than listener, or you
 might be good at coming up with the 'big ideas' but not so good at putting them into
action). Enhanced self-awareness will both help your approach to learning and will be
invaluable when you come to write your CV or complete job application forms.

2. Blends Complementary Strengths

Working together lets employees build on the talents of their teammates. While your
strength may be creative thinking, a coworker might shine in organization and planning. Do not
hesitate to share your abilities with the team.

Often, a team works well together because team members rely on each other to bring individual
talents to the table. By observing the process behind these skills, you can learn how to combine
your gifts and become a stronger team.

Every time you see your coworkers utilize a different approach in sales, you have a chance to
adjust or improve your methods. It leads to:

Skills development: being part of a team will help you develop your interpersonal skills such as
speaking and listening as well as team working skills such as leadership, and working with and
motivating others. Some of these skills will be useful throughout your academic career and all
are valued by employers.

3. Builds Trust

Relying on other people builds trust, and teamwork establishes strong relationships with
coworkers. Despite occasional disagreements, an effective team enjoys working together and
shares a strong bond. When you put your trust in a coworker, you are establishing the foundation
of a relationship that can endure minor conflicts.

Trusting your teammates also provides a feeling of safety that allows ideas to emerge. It helps
employees open up and encourage each other. Open communication is key when working on a
team and produces effective solutions in difficult group projects.

Without trust, a team crumbles and cannot succeed on assigned projects. Great teams build each
other up and strengthen individual members to create a cohesive group. By working together,
employees learn that wins and losses affect everyone on the team. Teamwork necessitates
confidence in each other’s distinct abilities.

4. Increases /Teaches Conflict Resolution Skills

Conflicts inevitably happen when you put together a group of unique people. Employees come
from varied backgrounds and have different work styles and habits. While these unique
viewpoints create the most successful work, they can also generate resentment that quickly turns
into conflict.
When conflict arises in teamwork situations, employees are forced to resolve the conflicts
themselves instead of turning to management. Learning conflict resolution firsthand is a skill that
employees can use to become efficient managers down the road.

5. Promotes a Wider Sense of Ownership

Team projects encourage employees to feel proud of their contributions. Tackling obstacles and
creating notable work together makes team members feel fulfilled. Working toward achieving
company goals allows employees to feel connected to the company. This builds loyalty, leading
to a higher level of job satisfaction among employees.

Teamwork is not just helpful for employees. It benefits the employer in the long run as well.
Employees that connect directly with their workplace are more likely to stay with the company.
While employees leaving their jobs often cite a lacking salary, another common complaint is that
their contributions do not seem to matter. Teamwork allows people to engage with the company
and add to the bigger picture.

6. Encourages Healthy Risk-Taking

An employee working on a project alone will probably not want to stick their neck out for an off-
the-wall idea. If the project fails when working solo, that employee takes the full brunt of the
blame. While you may not get full credit for a successful team project, working with other
people spreads out the responsibility for a failed assignment.

Working as a team allows team members to take more risks, as they have the support of the
entire group to fall back on in case of failure. Conversely, sharing success as a team is a bonding
experience. Once a team succeeds together, their brainstorming sessions will produce
revolutionary ideas without hesitation. In many cases, the riskiest idea turns out to be the best
idea. Teamwork allows employees the freedom to think outside the box.

Other Advantages of Group Work & Teamwork

Working in teams is a common part of the business environment and may be an approach
companies take to certain tasks, responsibilities or special projects. While it can be challenging
for different personality types to work together on a common goal, it has its advantages, both for
the company and the people involved. The advantages of group work are more than just
business-oriented; there are generally personal benefits for staff as well.

Shared Ideas

One of the main benefits of group work or a team environment is the ability to share ideas among
the group. Perhaps there are several possible approaches to a project, and as an individual, a
staffer may be unsure of which to take. However, as a team, the members can each contribute
pros and cons of approaches to tasks and methods to accomplish key goals. This kind of
collaboration both benefits the project and gives team members an outlet to bounce around ideas.
Increased Efficiency

Another key advantage of group work in the office is that things get done faster. When a group
attacks a project or task, it can be done more quickly and with greater efficiency than if just one
person attempted to muddle through it. A group approach can lead to cost savings for the
company, since groups accomplish more, as well as an ability to meet individual and team goals
more quickly, since more people are attacking the task.

Accountability for Weak Areas

Working as a team not only helps to showcase people's various strengths, but can also allow for
compensation of weaker areas as well. Staffers can distribute the workload so that people are
playing to their strengths with their work and team up to tackle areas where they are weaker to
allow for improvement. This creates a stronger and more skilled workforce, as people use the
teamwork opportunity to improve across the board.

Improved Office Relationships

When people work together as a team, they not only become more invested in the project, they
become more invested in one another as well. Team members support one another, even outside
of the team structure, and adapt to each other's working styles. The team relationship may result
in teamwork approaches even outside of the official teamwork structure, resulting in employees
lending a hand on other assignments and sharing ideas or brainstorms to propel one another
along to reach personal and professional goals.

Summary

Team Advantages & Disadvantages

The advantages and disadvantages of teams also need to be considered before deciding to
transition to teams. The following table of team advantages and disadvantages is an
adaptation of work by Medsker and Campion (1992).* This list can also be used by existing
teams to self-evaluate their efficacy.

TEAM ADVANTAGES TEAM DISADVANTAGES

 Team members have the
 Some individuals are not
opportunity to learn from each
compatible with team work.
other.

 Potential exists for greater work  Workers must be selected to fit the
force flexibility with cross-training. team as well as requisite job skills.
  Opportunity provided for
 Some members may experience less
synergistic combinations of ideas
motivating jobs as part of a team.
and abilities.

 New approaches to tasks may be

 Organization may resist change.
discovered.

 Teams membership can provide

 Conflict may develop between team
social facilitation and support for
members or other teams.
difficult tasks and situations.

 Communication and information  Teams may be time-consuming due

exchange may be facilitated and to need for coordination and
increased. consensus.

 Teams can stymie creativity and

 Teams can foster greater
inhibit good decision-making if
cooperation among team members.
"group think" becomes prevalent.

 Interdependent work flow can be  Evaluation and rewards may be

enhanced. perceived as less powerful;

 Potential exists for greater  "Free-riding" within the team may

acceptance and understanding of occur.
team-made decisions.

 Greater autonomy, variety,  Less flexibility may be experienced

identity, significance, and feedback in personnel replacement or
for workers can occur. transfer.

 Team commitment may stimulate

performance and attendance.

MANAGING CONFLICT
Conflict – Process in which one party perceives that its interests are being opposed or
negatively affected by another party. Conflict can be negative (bad) or functional (good). It can
affect performance either negatively or constructively.
Negative conflict is conflict that hinders the organization’s performance or threatens its interest.
As a manager, one needs to remove negative conflict by first studying the cause and nature of
the conflict.
Constructive conflict is good for the organization as it benefits the main purpose of the
organization and serves its interests.

Causes of conflicts
There several causes of conflict- sometimes referred to as conflict triggers.
The principal causes include:-
1. Competition for scarce resources – when two parties need the same things – this brings ill
feelings to the part that misses these items.
2. Time pressure: When workers are given a time frame to perform certain tasks (deadline).
These deadlines create the pressure which may result to conflicts.
3. Inconsistent goals or reward systems when people pursue different objectives. It is natural
for people in functional organization to be pursuing different objectives and to be rewarded
accordingly, but this means that conflict is practically built into the system.
4. Ambiguous jurisdiction – when job boundaries are unclear – people feeling that what they
are told to do isn’t their job or their responsibilities. When task responsibilities are unclear
they can offer often lead to conflict.
5. Status differences- when there are inconsistencies in power and influence – when those at the
lower level assume more power over their superiors.
6. Personality clashes: when individual differences cannot be resolved. Personality, values,
attitudes and experiences can be so great that the only way to resolve individual differences –
personality clashes is to separate them.
7. Communication failures: When people misperceive and misunderstand. The need for clear
communication is never ending, on-going process. However, people misunderstand others for
various reasons and this leads to conflict.
How managers can stimulate constructive conflict
1. Spur competition among employees. Competition is a form of conflict but it is often
healthy in spurring people to produce higher results. This, a company will put its employees
in a competition mood by offering rewards so as to make them motivated to work and attain
the organization’s objectives.
2. Change the organization’s culture and procedures. The organization can encourage
innovative and original thinking of members and reward these. This creates competition
which reinforces the expected behaviour of workers.
3. Introduction of new members from external sources, managers can introduce new
members by hiring outsiders so as to reduce inbreeding and resistance to change.
4. Use programmed conflict: This conflict is designed to elicit different opinions without
inciting people’s personal feelings. It calls for people to give constructive criticism without
causing ill feelings of their colleagues.
 Communication

Communication is a process of exchanging information, ideas, thoughts, feelings and emotions

through speech, signals, writing, or behavior. In communication process, a sender (encoder)
encodes a message and then using a medium/channel sends it to the receiver (decoder) who
decodes the message and after processing information, sends back appropriate feedback/reply
using a medium/channel.

Types of Communication

People communicate with each other in a number of ways that depend upon the message and its
context in which it is being sent. Choice of communication channel and your style of
communicating also affects communication. So, there are variety of types of communication.

Types of communication based on the communication channels used are:

1. Verbal Communication
2. Nonverbal Communication

1. Verbal Communication

Verbal communication refers to the the form of communication in which message is transmitted
verbally; communication is done by word of mouth and a piece of writing. Objective of every
communication is to have people understand what we are trying to convey. In verbal
communication remember the acronym KISS(keep it short and simple).

When we talk to others, we assume that others understand what we are saying because we know
what we are saying. But this is not the case. Usually people bring their own attitude, perception,
emotions and thoughts about the topic and hence creates barrier in delivering the right meaning.

So in order to deliver the right message, you must put yourself on the other side of the table and
think from your receiver’s point of view. Would he understand the message? How it would
sound on the other side of the table?

Verbal Communication is further divided into:

 Oral Communication
 Written Communication
 Oral Communication

In oral communication, Spoken words are used. It includes face-to-face conversations, speech,
telephonic conversation, video, radio, television, voice over internet. In oral communication,
communication is influence by pitch, volume, speed and clarity of speaking.

Advantages of Oral communication are:

It brings quick feedback.
In a face-to-face conversation, by reading facial expression and body language one can guess
whether he/she should trust what’s being said or not.

Disadvantage of oral communication

Ian face-to-face discussion, user is unable to deeply think about what he is delivering, so this can
be counted as a thoughtless and unimportant though it is not always true.

Written Communication

In written communication, written signs or symbols are used to communicate. A written message
may be printed or hand written. In written communication message can be transmitted via email,
letter, report, memo etc. Message, in written communication, is influenced by the vocabulary &
grammar used, writing style, precision and clarity of the language used.

Written Communication is most common form of communication being used in business. So, it
is considered core among business skills.

Memos, reports, bulletins, job descriptions, employee manuals, and electronic mail are the types
of written communication used for internal communication. For communicating with external
environment in writing, electronic mail, Internet Web sites, letters, proposals, telegrams, faxes,
postcards, contracts, advertisements, brochures, and news releases are used.

Advantages of written communication includes:

Messages can be edited and revised many time before it is actually sent.
Written communication provide record for every message sent and can be saved for later study.
A written message enables receiver to fully understand it and send appropriate feedback.

Disadvantages of written communication includes:

Unlike oral communication, Written communication doesn’t bring instant feedback.
It take more time in composing a written message as compared to word-of-mouth. And number
of people struggles for writing ability.

2. Nonverbal Communication
 Nonverbal communication is the sending or receiving of wordless messages. We can say that
communication other than oral and written, such as gesture, body language, posture, tone of
voice or facial expressions, is called nonverbal communication. Nonverbal communication is all
about the body language of speaker.

Nonverbal communication helps receiver in interpreting the message received. Often, nonverbal
signals reflects the situation more accurately than verbal messages. Sometimes nonverbal
response contradicts verbal communication and hence affect the effectiveness of message.

Nonverbal communication have the following elements:

 Appearance of the Speaker: clothing, hairstyle, neatness, use of cosmetics

 Surrounding: room size, lighting, decorations, furnishings
 Body Language: facial expressions, gestures, postures
 Sounds: Voice Tone, Volume, Speech rate
Types of Communication Based on Purpose and Style

Based on style and purpose, there are two main categories of communication and they both bears
their own characteristics. Communication types based on style and purpose are:

1. Formal Communication
2. Informal Communication

1. Formal Communication

In formal communication, certain rules, conventions and principles are followed while
communicating message. Formal communication occurs in formal and official style. Usually
professional settings, corporate meetings, conferences undergoes in formal pattern.

In formal communication, use of slang and foul language is avoided and correct pronunciation is
required. Authority lines are needed to be followed in formal communication.

2. Informal Communication

Informal communication is done using channels that are in contrast with formal communication
channels. It’s just a casual talk. It is established for societal affiliations of members in an
organization and face-to-face discussions. It happens among friends and family. In informal
communication use of slang words, foul language is not restricted. Usually. Informal
communication is done orally and using gestures.
Informal communication, Unlike formal communication, doesn’t follow authority lines. In an
organization, it helps in finding out staff grievances as people express more when talking
informally. Informal communication helps in building relationships.

BARRIERS TO EFFECTIVE COMMUNICATION

The barriers to communication and the ways and means of overcoming them to achieve effective
communication.

 Barriers to communication result in undesirable reaction and unfavorable response.

 The communication exercise fails because the feedback is absent or falls short of
expectation
 Barriers to communication are caused by environmental, physical, semantic, attitudinal
and varying perceptions of reality
I. Environmental and Physical barriers:

(a) Time – adopt appropriate fast channels of communication

(b) Space – maintain the distance in the communication exercise as determined by the situation

(c) Place – Avoid overcrowded incommodious and ill-lit, ill- ventilated places to achieve
effective communication

(d) Medium – Choose the appropriate medium oral / written (sign (audio/visual) medium.

II. Semantic Barriers:

Meanings of words – Choose the correct and precise word depending on context and the
receiver‘s felicity in the use of language.

III. Cultural Barriers:

Understand and accept the cultural variations in individuals and groups. Appreciate them and
adopt your communication style to them.

IV. Psychological Barriers:

Try to understand the receiver‘s mental makeup and attitudes.

V. Perception of Reality:
Try to understand the different levels of perceptions of a situation and an issue. Be open, flexible
and transparent.