Lecture 8 communication & decision making

communication & decision making

1. Lecture 8 Dynamics of OB: Communication & Decision Making Sanjeeva Perera B.Sc. (Eng.) Hons , MBA (Col.) (OB) (577) MSc /PGD in Information Systems & Information Management Sri Lanka Institute of Information Technology

2. A Conceptual framework for the study of organizational behavior Environmental Context Information Tech & Globalization Diversity & Ethics Organizational Context Design & Culture Reward System ORGANIZATIONAL BEHAVIOR Cognitive Processes Perception & Attribution Personality & Attitudes Motivational needs & Processes Positive Psychological Capacities Social Cognitive Theory Dynamics Communication Decision Making Stress & Conflict Power & Politics Groups & Teams Managing & Leading for High Performance Job Design & Goals Behavioral Management Leadership Processes Great Leaders 2

3. Dynamics of OB: Communication

4. Agenda Communication Relate the perspective, historical background, and meaning of the communication process in organizations Describe modern communication technology Identify the dimensions of nonverbal communication Discuss the specific downward, upward, and horizontal (interactive) interpersonal communication processes Analyze communication across cultures 4

5. Definition of Communication Def of communication Use of symbols to transfer the meaning of information. The continuum (band, range) of communication in organizational behavior. 5 Interpersonal communication Communication media and technology Nonverbal communication Interpersonal communication is communication between two or more people in an organization.

6. Communication Media & Technology The matter of Information Richness 6 Information Richness For Different Media Medium Face-to-face Telephone Personal written Formal written Formal numeric Feedback Immediate Fast Slow Very slow Very slow Channel Visual, audio Audio Limited visual Limited visual Limited visual Type of Communication Personal Personal Personal Impersonal Impersonal Language Source Body, natural Natural Natural Natural Natural Information Richness High High/ Moderate Moderate Moderate/ Low Low

7. Communication Media & Technology The Issue of Complexity 7 Episodes of information overload Employee’s information processing capacity Time Information Load Information Overload

8. Communication Media & Technology cont’d Management Information Systems (MIS) With MIS group decision making is moving away from face to face interaction and towards computer mediated communication. Telecommunications Telephone caller ID (pick up the name), e-mail, voice messaging, electronic bulletin boards, chat rooms, skipe Telecommuting e.g. home page, browser, chat room and search engine Telecommuting training systems 8

9. Nonverbal Communication (some times called “silent language”) Defined as “nonword human response (such as gestures, facial expressions) and the perceived characteristics of the environment through which the human verbal and nonverbal messages are transmitted”. Nonverbal communication - Video 9

10. Nonverbal Communication cont’d Body Language and Paralanguage Body Language Facial expressions Eyes Feet Hands Posture E.g. Good salespeople, advertisers capitalized on their knowledge of people’s eyes. 10

11. Nonverbal Communication cont’d Paralanguage Voice quality Tone Volume Speech rate Pitch Nonfluencies (“ah”, “um”, or “uh”) Laughing Yawning 11

12. Interpersonal Communication (most relevant to OB) Transferring information from one person to other. Communication is looked on as a basic method of effecting behavioral change, and it incorporates the psychological processes (perception, learning, and motivation) on the one hand and language on the other. 12

13. Interpersonal Communication cont’d Terms in Interpersonal Communication Communicator The person originating the message. Receiver The person receiving a message. Perceptual Screen A window through which we interact with people that influences the quality, accuracy, and clarity of the communication. Message The thoughts and feelings that the communicator is attempting to elicit (extract) in the receiver. 13

14. Interpersonal Communication cont’d Terms in Interpersonal Communication cont’d Feedback Information fed back that completes two-way communication. Language The words, their pronunciation, and the methods of combining them used and understood by a group of people. Data Uninterpreted and unanalyzed facts. 14

15. Interpersonal Communication cont’d Terms in Interpersonal Communication cont’d Information Data that have been interpreted, analyzed, and have meaning to user. Richness The ability of a medium or channel to elicit or evoke meaning in the receiver. 15

16. Characteristics Of Feedback For Effective And Ineffective Interpersonal Communication 16 Effective Feedback Ineffective Feedback 1 . Intended to help the employee 2. Specific 3. Descriptive 4. Useful 5. Timely 6. Considers employee readiness for feedback 7. Clear 8. Valid 1. Intended to belittle the employee 2. General 3. Evaluative 4. Inappropriate 5. Untimely 6. Makes the employee defensive 7. Not understandable 8. Inaccurate

17. A Basic Interpersonal Communication Model 17

18. Communication Media: Information Richness and Data Capacity 18

19. Other important variables in interpersonal communication Trust Expectations Values Status Compatibility Generation gap can play havoc with interpersonal communication (Status differentials and incompatibilities) 19

20. Framework for studying interpersonal communication 20 Downward Upward Lateral (Horizontal) Direction of Communication

21. Downward Communication Downward communication. The flow of information follows the chain of command from top to bottom. Downward communication informs lower level personnel about the higher level managers’: Strategies. Objectives. Instructions. Policies. Feedback. 21

22. Upward Communication Upward communication. The flow of information from lower to higher levels of the organization. Upward communication informs higher level personnel about lower level workers’: Problems. Results. Suggestions. Questions. Needs. 22

23. Lateral (Interactive horizontal) Communication Lateral communication. The flow of information across persons or work units at the same hierarchical level. Lateral communication enables persons and work units to coordinate: Problems. Needs. Advice. Feedback. 23

24. Lateral Communication cont’d Lateral communication cont’d. Very important in high performance organizations. Serving external customers. Serving internal customers. Organizational ecology. The study of how building design may influence communication and productivity by improving lateral communication. 24

25. Communication Across Cultures Cultural differences leads to Communication Breakdown across cultures. Ethnocentric Problems. The tendency to believe that one’s culture and it values are superiors to those of others. Often linked to an unwillingness to understand alternative points of view. Stereotyping Problems E.g. Ask people from US which country is famous for its auto engineering and the most common answer is Germany. Perceptual Problems 25

26. Dynamics of OB: Decision Making

27. Agenda Decision making Compare the rational model of decision making with Simon’s normative model. Discuss knowledge management and ways that companies increase knowledge sharing. Explain the model of decision-making styles and the stages of the creative process. Explain how participative management affects performance. Describe techniques used to improve the quality of group decisions 27

28. Definition of Decision making 28 Decision making identifying and choosing solutions that lead to a desired result

29. Models of Decision Making The Rational Model logical four-step approach to decision making. Identifying the problem Generating alternative solutions Selecting a solution Implementing and evaluating the solution (Continued) 29

30. Models of Decision Making The Rational Model Identifying the Problem Problem – exists when the actual situation and the desired situation differ Generating Solutions For routine decisions alternatives are readily available through decision rules (Continued) 30

31. Models of Decision Making The Rational Model Selecting a Solution Want to maximize the expected utility of an outcome People vary in their preferences for safety or risk Ethics should be considered Evaluating alternatives assume they can be judged according to some criteria Assumes valid criteria exists Each alternative can be compared to these criteria Decision maker actually uses the criteria (Continued) 31

32. Models of Decision Making The Rational Model Implementing and Evaluating the Solution After solution is implemented, the evaluation phase is used to evaluate its effectiveness Optimizing – choosing the best possible solution (Continued) 32

33. Models of Decision Making Simon’s Normative Model Decision making is characterized by: Limited information processing Use of judgmental heuristics Satisficing (Continued) 33

34. Models of Decision Making Simon’s Normative Model Bounded rationality constraints that restrict decision making. Rationality of individuals is limited by the information they have, the cognitive limitations of their minds, and the finite amount of time they have to make decisions. Limited Information Processing Tendency to acquire manageable rather than optimal amounts of information Difficult for managers to identify all possible alternative solutions (Continued) 34

35. Models of Decision Making Simon’s Normative Model Judgmental heuristics rules of thumb or shortcuts that people use to reduce information processing demands. Availability heuristic tendency to base decisions on information readily available in memory. Representativeness heuristic tendency to assess the likelihood of an event occurring based on impressions about similar occurrences. (Continued) 35

36. Models of Decision Making Simon’s Normative Model Satisficing choosing a solution that meets a minimum standard rather than to identify an optimal solution (Continued) 36

37. Dynamics of Decision Making Knowledge management implementing systems and practices that increase the sharing of knowledge and information throughout an organization 37

38. Forms of Knowledge Tacit (unspoken) knowledge information gained through experience that is difficult to express and formalize . Explicit knowledge information that can be easily put into words and shared with others. 38

39. Decision Making Styles Decision making styles combination of how individuals perceive and respond to information Value orientation reflects the extent to which an individual focuses on either task and technical concerns or people and social concerns when making decisions Tolerance for ambiguity extent to which a person has a high need for structure or control in his life 39

40. Decision Making Styles 40

41. Participative Management Participative Management involving employees in various forms of decision making Setting goals Making decisions Solving problems Making changes in the organization 41

42. Creativity & Group decision making Creativity process of using intelligence, imagination, and skill to develop a new or novel product, object, process, or thought 42

43. Creativity & Group decision making Group Involvement Minority dissent (disagree) extent to which group members feel comfortable disagreeing with other group members, and the extent to which group members participate in decision making (Continued) 43 Agree to Disagree

44. Creativity & Group decision making Group Problem Solving Techniques Consensus presenting opinions and gaining agreement to support a decision Brainstorming process to generate a quantity of ideas (Continued) 44

45. Creativity & Group decision making Group Problem Solving Techniques Rules for Brainstorming Defer judgment Build on the ideas of others Encourage wild ideas Go for quantity over quality Be visual Stay focused on the topic One conversation at a time (Continued) 45

46. Creativity & Group decision making Group Problem Solving Techniques Nominal Group Technique process to generate ideas and evaluate solutions. Delphi technique process to generate ideas from physically dispersed experts (Continued) 46 Computer-aided decision making reduces consensus roadblocks while collecting more information in a shorter period of time

47. ? Questions 47