Decision Making and communication

Question 1

Managerial Decisions

Answer 1

Routine problems -> programmed decisions
Non-routine problems -> crafted decisions

Question 2

Decision environment

Answer 2

• Certain environments (doesn’t exist in real life)
• Risk environments (you can assign probabilities from prior knowledge)
• Uncertain environments (prior knowledge doesn’t really help, the decision is feeling based)

Question 3

Steps in the decision making process

Answer 3

Step 1: Recognise and define the problem or opportunity
Step 2: Identify and analyse alternative courses of action
Step 3: Choose a preferred course of action
Step 4: Implement the decision

Question 4

Managerial decision making

Answer 4

Classical desicion maker ( Doesn’t depict the real world, doesn’t account cognitive limitations):
Clearly defined problem —> Knowledge of all possible alternatives and their consequences —> Choice of
the optimum alternative —> Managerial action

Behavioural desicion maker (accounts for cognitive limitations, real world) : Problem not clear —> Limited
knowledge on possible alternatives and their consequences —> Choice of a satisfactory alternative —> Managerial action

Question 5

Intuition

Answer 5

The ability to know or recognize quickly and readily the possibilities of a given situation

Question 6

Judgement Heuristics and Fallacies

Answer 6

• Recency fallacy (you overestimate the probability of something happening again)
• Similarity fallacy (stereotyping)
• Confirmation trap (after you make a decision you
  only seek information that confirms it)
• Hindsight trap (knew-it-all-along phenomenon: people perceive events that have already occured as having been more predictable )

Question 7

Conditions for decision making

Answer 7

• Is the problem easy to deal with?
• Might the problem resolve itself?
• Is this my decision to make?
• Is this a solvable problem?

Question 8

Organizational communication

Answer 8

Process by which entities exchange information and establish a common understanding

Question 9

Communication diagram

Answer 9

Example shows that some of the departments have no direct communication between them

Question 10

The Communication process

Answer 10

Source: Has an Intended meaning , Encodes and —> sends the Message
Receiver: Has to Decode ; Perceived meaning ——> gives Feedback to the Source
Noise also affects the message ( Physical distractions, Semantic problems, Cultural differences, Mixed
messages, Absence of feedback, Status effect)

Question 11

Functions of Organizational communication

Answer 11

• Exchanging information
• Expressing feelings and emotions
• Achieving coordinated action
• Communicating expectations

Question 12

Guidelines for active listening

Answer 12

• Listen to message content (information function)
• Listen for feelings (expression function)
• Respond to feelings
• Note all cues (appeal function)
• Reflect back to the source

Question 13

Nonverbal communcation

Answer 13

• Facial expressions
• Body position
• Eye contact
• Physical gestures
  —> Office layout matters

Question 14

Status effects

Answer 14

• Communication can be biased when flowing upward in organizational hierarchies.
• Managers may be inclined to do more ‘telling’ than ‘listening’.

Question 15

Minimizing communication barriers

Answer 15

• Management by wandering around
• Developing trust in working relationships
• Taking advantage of opportunities for face-to-face communication
  Reality check (survey): * 49% complained about lack of feedback and appreciation * 63% said
  management did not inspire trust * 64% believed bosses were not open and honest enough

Question 16

Absence of feedback

Answer 16

• One-way communication has no direct feedback.
• Two-way communication is characterized by normal interactive conversation, including feedback