Ch. 11 Decision Making, Communication, and Balance

Vocabulary

-Artificial intelligence A computer program that attempts to duplicate the thought processes of experienced decision makers. -Balance Managerial adaptation to changing environmental, political, social, and technological conditions. -Conditions of certainty Adequate information is available to assure results of decision. -Conditions of risk Results of decision are uncertain; probability techniques are necessary for estimating the likelihood of events occurring in the future. -Conditions of uncertainty Occurrence of future events cannot be predicted. -Expert systems Artificially intelligent computer software programs that solve problems by emulating the problem-solving behavior of human experts. -Game theory Introduces a competitive note in decision making by bringing into a simulated decision situation the actions of an opponent. -Grapevine Informal communication channel in which information is passed from one employee to another.

Linking Processes

-Decision making, communication, balance -Linking processes are needed to coordinate the activities of the system so they can accomplish the goals and objectives. -The linking processes govern the flow of resources or system inputs; through the use of decision making and communication, people, money, and equipment are moved through the system. -These linking processes are decision making, communication, and balance. -DECISION MAKING is the selection of a course of action from a variety of alternatives. -COMMUNICATION is the vehicle whereby decisions and other information are transmitted. -BALANCE concerns management's ability to maintain organizational stability, which is related to effective decision making and communication.

Vocabulary 2

-Groupthink Situation where reaching an agreement becomes more important to group members than arriving at a sound decision. -Linear programming A technique useful in determining an optimal combination of resources to obtain a desired objective. -Negotiation Process in which two or more parties make offers, counteroffers, and concessions to reach an agreement. -Network Graphic representation of a project, depicting the flow and sequence of defined activities and events. -Nonprogrammed decisions Relatively unstructured decision that takes a higher degree of judgment. -Programmed decisions Decision reached by following established policies and procedures. -Queuing theory Develops relationships involved in waiting in line. -Risky shift Tendency of individuals to take more risk in groups than as individuals. -Simulation Using some device for imitating a real-life occurrence and studying its properties, behavior, and operating characteristics.

Decision Making

-Managers make decisions for the purpose of achieving individual and organizational objectives; effective managers must be good decision makers. -Decision making involves three primary stages: -Definition of the problem -Identification and analysis of possible courses of action -Actual selection of a particular course of action -Analyzing the decision processes by these stages illustrates the difference between management and nonmanagement decisions; managerial decisions encompass all three stages; nonmanagerial decisions are concentrated in the last, or choice, stage.

Other Decision Making Techniques

A variety of other quantitative decision-making techniques have been developed, including game theory, queuing, and simulation models. There has been limited application of these techniques because they often require complex computer models in the foodservice field. Game Theory. Game theory introduces a competitive note in decision making by bringing into a simulated decision situation the actions of an opponent. Game theory will show the highest gain with the smallest amount of losses, regardless of what the competitor does. Simulates the course of real life situations. With Game Theory, everyone can achieve what they want. Queuing Theory. Queuing theory develops relationships involved in waiting in line. The theory balances the cost of waiting lines against the cost of preventing them by expanding facilities; the problem is figuring out the cost of total waiting—that is, the cost of tolerating the queue—and weighing it against the expense of constructing enough facilities to decrease the need for the queue. Is it worth it to let people wait or is it advisable to make a second location or bigger restaurant so people don't have to wait in line? Simulation. The concept of simulation is to use some device for imitating a real-life occurrence and studying its properties, behavior, and operating characteristics. The device can be physical, mathematical, or some other model for describing the behavior of an occurrence that a manager wishes to design, improve, or operate. Artificial Intelligence. Artificial intelligence is a computer program that attempts to duplicate the thought processes of experienced decision makers. Expert systems are artificially intelligent computer software programs; these systems solve problems by emulating the problem-solving behavior of human experts. Decision making starts with exploring "if . . . then" situations that could occur in solving a problem, and these situations become the knowledge base for the system.

Balance

Balance refers to managerial adaptations to changing economical, political, social, and technological conditions (See also Chapter 1). Foodservice organizations are the products of the organizing function of management, which provides the mechanism for coordinating and integrating all activity toward accomplishment of objectives. The organizing process involves balancing a company's needs for both stability and change. The properties of a balanced structure that responds to three needs: to maintain efficiency around the basics, to engage in innovation on a regular basis, and to avoid calcification by ensuring responsiveness to major threats. The structure of the organization is based on three pillars, each of which responds to these needs: Stability pillar—responds to the need for efficiency and is found in a departmentalized structure. Entrepreneurial pillar—keeps the structure small, which is a requisite for continual adaptiveness and innovation. Habit-breaking pillar—includes a willingness to reorganize frequently, adjusting to various forces.

Cultural Issues that Affect the Communication Process

Effective intercultural communication requires an understanding of many issues in addition to the nuances of the language of country or region. There are several issues that differ among cultures that can affect the communication process: Paralanguage: Paralanguage, the rate, pitch, and volume of the voice giving the message, can affect the meaning interpreted from that message. Paralanguage can convey positive or negative emotions and attitudes; for example, in some cultures talking rapidly and loudly is perceived as normal; in others it is thought to show anger. Chronemics: Chronemics, attitudes about time, vary among cultures. In some, monochromic time, focusing on one major activity at a time, is most common; in others, polychromic time, working on several major items at the same time, is more common. Attitudes toward time also include perceptions related to punctuality, which can vary from a great emphasis placed on "being on time" in one culture to a "mañana" attitude of putting off to tomorrow what didn't get done today in another culture. Proxemics: Proxemics, the physical space between individuals when they are communicating, also differs among cultures and may alter interpretation of the message being given. People in the United States tend to need more space, for example, than do persons from Greek, Latin American, or Arab cultures. There are four zones of interaction: Intimate zone (less than 18 inches, reserved for very close friends or business handshakes) Personal zone (18 inches to 4 feet, used when giving instructions or working closely with another) Social zone (4 to 12 feet, used for most business interaction) Public distance (greater than 12 feet, very formal interaction). Oculesics: Oculesics is the use of eye contact during communication; in some cultures use of direct eye contact indicates listening; in others it is a sign of disrespect and bad manners. The use of direct eye contact and the amount of time direct eye contact is made may send unintended nonverbal messages in the communication process. Olfactics: Olfactics, or smell, can have a positive or negative nonverbal impact on the communication process. Body, breath, and clothes odors are viewed negatively in some cultures and as natural and inoffensive in others. Haptics: Communicating through touch or body contact is referred to as haptics. Touch, when used appropriately, can convey support and trust; however, when used inappropriately, can be uncomfortable and create a sense of distrust and annoyance. Kinesics: The use of body movements such as facial expressions, gestures, and posture in the communication process is often termed kinesics. Body movements can express emotion, add emphasis, and provide clarity, but they can also create disrespect, anger, and shame when misinterpreted. The "thumbs-up" gesture, for example, is used in the United States as a signal that everything is going well; that same gesture is considered rude in West Africa. -Chromatics: Colors have different meanings in different cultures and thus use of color can convey an unintended nonverbal message. White, for example, is viewed as peaceful and pure in some cultures and is associated with mourning in others. Silence: The duration and appropriateness of silence can be interpreted in different ways depending on the culture. Long periods of silence are often not comfortable for U.S. businesspeople but are common in negotiations by Japanese businesspeople.

Organizational Communication

Factors discussed in relation to interpersonal communication apply to communication within organizations as well - effective organizational communication involves getting an accurate message from one person to another. The effectiveness of organizational communication, however, is also influenced by several characteristics unique to organizations. There are four factors that influence the effectiveness of organizational communication: the formal channels of communication, the authority structure, job specialization, and a factor he calls "information ownership." The Formal Channels of Communication. Formal channels influence communication effectiveness in space First, as organizations grow, the channels cover an increasingly larger distance. Second, the formal channels of communication may inhibit the flow of information between levels in the organization. The Authority Structure. The authority structure affects communication because of status and power differences among organizational members. There can be strained politeness: if CEO of organization talks to someone from kitchen (person receiving message doesn't hear it- need to be able to understand what's trying to be communicated) Job Specialization. Job specialization can be both a help and hindrance in communication; it facilitates communication within a work group because members speak the same jargon and frequently develop a group cohesiveness. Cooks talk to cooks and able to communicate with each other in regards to their job. Information Ownership. The term information ownership means that individuals possess unique information and knowledge about their jobs; such information is a form of power for those who possess it, making them unwilling to share the information with others.

Types of Decision Making

Foodservice managers must make many different types of decisions. Most decisions fall into one of two categories: programmed and nonprogrammed. Programmed Decisions. Programmed decisions are reached by following established policies and procedures; these decisions also are referred to as routine or repetitive decisions. Ex: Diet Techs who are permitted to switch desserts for diabetic patients. Normally, the decision maker is familiar with the situation surrounding a programmed decision. Limited judgment is called for in making programmed decisions; these decisions are made primarily by lower-level managers and employees in an organization. Nonprogrammed Decisions. Nonprogrammed decisions are unique and have little or no precedent; these decisions are relatively unstructured and generally require a more creative approach on the part of the decision maker than programmed decisions. Often when dealing with nonprogrammed decisions, the decision maker must develop the procedure to be used.; naturally, these decisions tend to be more difficult to make than programmed decisions. Usually take a longer time and more work is involved. Nonprogrammed decisions are of two general kinds—organizational and personal. Organizational decisions relate to the purposes, objectives, and activities of the organization. Personal decisions are concerned with the manager's individual goals.

Methods of Group Decision Making

Important decisions are being made in organizations by groups rather than by individuals; croup decision making most often is accomplished within interacting, Delphi, nominal, or focus groups. Interacting Groups. An interacting group is a decision-making group in which members discuss, argue, and agree upon the best alternative. Existing groups may be departments, work groups, or standing committees; new groups can be ad hoc committees, work teams, or task forces. An advantage of this method is that interacting promotes new ideas and understanding. Delphi Groups. A Delphi group is used for developing a consensus of expert opinion; a panel of experts, who contribute individually, makes predictions about a specific problem. Their opinions are combined and averaged and then returned to the panel for a second prediction Members who made unusual predictions may be asked to justify them before sending them to the other members of the panel; when the predictions stabilize, the average prediction represents the decision of the group of experts. The Delphi method is good for forecasting technological breakthroughs but takes too much time and is too expensive for everyday decision making. Nominal Groups. The nominal group method is a structured technique for generating creative and innovative alternatives or ideas; members of the group meet together but do not talk freely among themselves like members of interacting groups. The manager presents the problem to group members and asks them to write down as many alternatives for solutions as possible; they then take turns presenting their ideas, which are recorded on a flip chart. Members then vote by rank-ordering the various alternatives; he top-ranking alternative represents the decision of the group, which can be accepted or rejected by the manager. Focus Groups. A focus group is a qualitative information gathering method; tt has been used successfully for many years by large, multiunit chains and independents looking for customer feedback. The focus group consists of 10 to 20 people brought together for a one-time meeting of about 2 hours to discuss some predetermined aspect of a particular establishment; men and women are selected to participate if they meet certain criteria, such as being a frequent customer in the restaurant or in a competitor's establishment. Focus groups examine the motivation behind human behavior and, therefore, examine why people act the way they do, not what they do.

Negotiation

Negotiation, as a form of communication, is a process in which two or more parties make offers, counteroffers, and concessions to reach an agreement. Often the views differ between the two parties in the negotiation process and the result of negotiation involves compromise between them. Robbins (2005) described two general approaches to negotiation: distributive bargaining and integrative bargaining. Distributive bargaining occurs in situations where resources available are fixed and the negotiation focuses on what portion of the resources each will get. Integrative bargaining operates in situations where there is a variable amount of resources available and there can be many possible settlement options, which can result in perceived "wins" for both parties in the negotiation.

Conditions for Making Decisions

Regardless of the approach used, decisions frequently are made at one time for events that will occur at another, and the conditions are seldom identical; the environment within which the decision maker operates, therefore, affects the decision-making process. Conditions in the environment change and predictions are difficult; yet managers must make decisions based on the information available, even though it may be incomplete or involve factors outside their control. These conditions under which decisions are made are referred to as certainty, risk, and uncertainty; the longer the future time period involved in the decision, the less certain are the environmental conditions. Conditions of Certainty. Under conditions of certainty, a decision maker has adequate information to assure results. A decision under conditions of certainty involves choosing the alternative that will maximize the objective. Conditions of Risk. Because conditions of certainty are becoming less common in today's complex and rapidly changing world, estimating the likelihood or probability of various events occurring in the future is often the only possibility for planning; this condition is called risk. Under conditions of risk, various probability techniques are helpful in making decisions. In decision making under risk, managers are faced with the possibility that any one of several things may occur. Conditions of Uncertainty. When the occurrence of future events cannot be predicted, a state of uncertainty exists. Many changes or unknown facts can emerge when decision time frames are long; to predict what is likely to occur with any degree of certainty, therefore, is quite difficult. In these situations, foodservice managers frequently apply their experience, judgment, and intuition to narrow the range of choices. Input from others may help reduce some of the uncertainty; involvement of knowledgeable people in the decision process, therefore, may be beneficial. Under conditions of uncertainty, some managers will delay decisions until conditions stabilize or will take a path of least risk.

Barriers to Communication

Sayles and Strauss and Chaney and Martin identified the following common barriers in interpersonal communication: Hearing an expected message. Past experience leads one to expect to hear certain messages that may not be correct in some situations. You assume something - you may misinterpret what's being said. You often hear what you want to hear. Ignoring conflicting information. A message that disagrees with one's preconceptions is likely to be ignored. Differing perceptions. Words, actions, and situations are perceived in accordance with the receiver's values and experiences; different people react differently to the same message. Evaluating the source. The meaning applied to any message is influenced by evaluation of the source. Interpreting words differently. Because of the complexity of language, words have many different meanings. Dinner vs. supper Ignoring nonverbal cues. Tone of voice, facial expressions, and gestures may affect communication. Becoming emotional. Emotion will affect transmission and interpretation of messages. Cultural differences. Differences in ethnic, religious, and/or social status may impact the understanding of a message. Linguistics. Different languages, dialects, and accents spoken by the sender and receiver or use of a vocabulary by the sender that is beyond the comprehension of the listener may alter understanding of the message being sent.

Techniques for Improved Communication

Techniques for improved communication are summarized in the figure above (see Figure 11-13 in text). Using feedback can result in more effective communication because it allows the sender to search for verbal and nonverbal cues from the receiver. Using several channels will improve the chances that a proper message is communicated. Sensitivity to the receiver will enable the communicator to adapt the message to the situation. Awareness of symbolic meanings can be particularly important in communication. "It's not what you say, but what you do" is another tenet for improving communication. Using direct, simple language and avoiding jargon is another rule for improving communications. Listening is basic to effective communication because receiving messages is as much a part of the process as sending them.

The Decision Making Process

The figure above (See Figure 11-3 in text) outlines the steps a manager should follow to make rational and logical decisions; these steps in rational decision making will keep the decision maker focused on facts and guard against inappropriate assumptions and pitfalls. Recognizing and Defining the Situation. A stimulus, which can be either positive or negative, is necessary for someone to recognize that a problem exists and a decision is necessary. The problem must be clearly defined before action is taken; the foodservice manager should understand the problem and its relationship to other factors in the system. Identifying Alternatives. Once the decision is recognized and defined, alternatives should be identified. Obvious alternatives should be examined along with those that are creative; the more important the decision, the more attention should be placed on selecting alternatives. Evaluating Alternatives. Foodservice managers should evaluate all alternatives to determine if they meet the needs of the operation and the feasibility and consequences of using them. Selecting the Best Alternative. After evaluating the alternatives for meeting the needs of the operation and the feasibility and consequences of using them, some of the alternatives will be rejected. Implementing the Chosen Alternative. After an alternative is chosen, it should be implemented into the organization, but that can be difficult to do. When implementing a decision, managers must consider people's resistance to change, which might include insecurity, inconvenience, and fear of the unknown. The decision-making process does not end when the decision is made. The decision must be implemented, and the manager must monitor results to ascertain that the selected alternative solves the problem. Follow-Up and Evaluation. Managers finally have to evaluate the effectiveness of their decision - they need to decide if their chosen alternative was the correct one. If it is not, maybe the second or third alternative would be better or maybe the problem was not correctly defined; perhaps the chosen alternative is the best, but more time may be needed or perhaps the implementation needs to be revised.

The Communication Process

The process of communication starts when the sender wants to transmit information to the receiver. The sender has a message, an idea, a fact, or some other information to transmit to someone or some group. This idea may have simple or complex meaning to the sender. Meaning is an abstract concept that is highly personal. The sender must encode the information to be transmitted into a series of symbols or gestures. The encoding process is influenced by the content of the message and the familiarity of the sender and receiver. After the message is encoded, it is transmitted through the appropriate channel. Channels in an organization include meetings, face-to-face discussions, memos, letters, e-mails, reports, and telephone calls. Noise refers to all the types of interference that may distort or compete with the message during its transmission. Examples of noise are the inability to hear the sender, who is speaking too softly, distortion of the message by extraneous sounds, and inattention of the receiver. Communication may be one-way or two-way. In one-way communication, the sender communicates without expecting or getting feedback from the receiver; one-way communication takes considerably less time than two-way communication, but it is less accurate. Two-way communication exists when feedback is provided by the receiver; feedback enhances the effectiveness of the communication process and helps to ensure that the intended message is received by allowing the receiver to clarify the message and permitting the sender to refine the communication.

Decision Making Techniques

Various techniques have been developed to assist managers in making decisions; some of these techniques are highly complex and quantitative in nature. Decision Trees (more simplistic). Decision trees allow management to assess the consequences of a sequence of decisions with reference to a particular problem. The approach involves linking a number of event "branches" graphically, which results in a schematic resembling a tree. The process starts with a primary decision that has at least two alternatives to be evaluated; the probability of each outcome is ascertained, along with its monetary value (Refer students to Figure 11-7 in text). Cost-Benefit. Cost-benefit analysis is a technique for comparing the costs and financial benefits of a project or decision. Sometimes a financial value is placed on intangible benefits so they can be considered in the analysis. Before adding any new personnel or programs, most managers want to compare the cost of implementing and maintaining the programs with the increase in performance attributed to them (Refer students to Figure 11-9 in text). Networks (more complicated- bigger and larger scale for bigger problems). The Program Evaluation and Review Technique (PERT) and Critical Path Method (CPM) are networks for decision making; a network is a graphic representation of a project, depicting the flow and sequence of defined activities and events. An activity defines the work to be performed; an event marks the beginning or end of an activity. PERT and CPM are two widely known and used management science techniques for planning, scheduling, and controlling large projects. Linear Programming (how you combine your resources to achieve your objective). Linear programming is a technique useful in determining an optimal combination of resources to obtain a desired objective. Linear programming is one of the most versatile, powerful, and useful techniques for making managerial decisions. This concept has been used in solving a broad range of problems in industry, government, healthcare, and education. Other Techniques. A variety of other quantitative decision-making techniques have been developed, including game theory, queuing, and simulation models.

Individual vs. Group Decision Making

When should a decision be made by a group rather than an individual? Individual-versus-group decision making largely depends on factors such as complexity and importance of the problem, time available, degree of acceptance required, amount of information needed to make a decision, and the usual manner in which decisions are made in an organization. There are three possibilities for managerial decision making: Individual decision. Managers can make decisions themselves using information available to them. Combination decision. Managers can make decisions after consulting with others. Group decision. Managers can allow decisions to be made by the group, of which the manager is usually a member. Group decision making, then, is used because managers frequently confront situations in which they must seek information and elicit judgments from other people; this is especially true for nonprogrammed decisions. Group decision making also may be used when two or more organizational units will be affected by the decisions.

Directions of Internal Communication

Within the organization, managers must provide for communication in four distinct directions: downward, upward, horizontal, and diagonal. Although discussed only briefly in this chapter, managers also must communicate effectively with individuals and groups outside the organization. Downward. Individuals at higher levels of the organization communicate downward to those at lower levels. The most common forms of communication are job instructions, policy statements, procedure manuals, and official publications of the organization. Upward. An effective organization needs open channels of upward communication as much as it needs downward communication. In large organizations, good upward communication is especially difficult. Suggestion boxes, special meetings, and grievance procedures are devices used for upward communication. Horizontal. Provision for horizontal flow of communication will enhance organizational effectiveness. Within the foodservice operation, effective horizontal communication between production and service is critical to ensure that quality food is available at the right time in the right place. Interdepartmental communication. Diagonal. The use of diagonal channels of communication is a way of minimizing time and effort expended in organizations. Having reports and other information flow directly between departments or units that have a diagonal placement in the organization may result in more effective flow of information.