Communication and Decision Making

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 Objectives
At the end of this session, you will able to:
 Define communication
 Describe communication levels, characteristics and
system
 Understand communication process
 Define decision making
 Explain decision making activities
 Describe the types of decision making.
 Discuss basic steps of the decision-making process

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 COMMUNICATION

It is the process of sharing information, ideas, messages,

or feelings by speech, signals, or writing.
It is the transmitting or exchange of information or
knowledge and the creation of understanding between two
parties.
What is communicated?
Ideas
Opinions
Concepts
Orders, instructions
Feelings

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 Levels of Communication
Intrapersonal communication- communication with
own (self).
It encompasses activities like thought processing, personal
decision making, listening, and determining self concept.
Interpersonal Communication- Communication that
takes place between two or more persons who establish
a communicative relationship.
Forms of interpersonal communication include:
 Face-to-face or medicated conversations
 Voice-to-voice
 Interviews
 Small group discussions

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 Level …
[Link] communication
Formal flow of communication in an organization may
move via upward, downward, or horizontal channels.
Organizational structure creates, perpetuates, and encourages
formal means of communication.

[Link] Communication
It is characterized by speaker's sending a message to an
audience.
It may be direct, such as face to face message or
Indirect, such as a message transmitted over radio or television.

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 Grapevine
 Informal channels of communication, which carry
casual, social, and personal messages through the
organization.
 It is an informal, person-to-person communication
network of employees that is not officially sanctioned
by the organization.
 It is spontaneous, quick, and hard to stop; it can both
help and hinder the understanding of information.

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 Characteristics of Communication
[Link]-communication is in a state of change
[Link]- communication never stops.
[Link]-once we send a message, we can't undo it.
[Link]-reacting with other people and ourselves.
[Link]-communication is part of our life;
different factors affect communication.

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The Basic Process of communication

Source Encode Message Channel Decode Receiver

Feedbac
k

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 Process …
A simple sequenced of six stages.
1. The sender wants the receiver to understand the
message.
2. The message is encoded by the sender, who
structures it into a logical form of code (language)
3. When the sender is satisfied with the encoding of
the message; it is transmitted verbally or in
writing or electronically, etc.
4. The message passes through a channel from the
sender to the receiver.
5. The receiver decodes the message.
6. The receiver then understands the idea that the
sender wants to convey

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 Methods of Communication
1. Oral communication- chief means of conveying message.
Speeches, formal one to one or group discussions, and informal
rumor mill or grapevine are popular forms of this kind of
communication.
E.g.: presentations, interviews, perform employee evaluations,
and hold press conferences.
Abilities required for effective oral communication
1. Active listening- paying attention, interpreting and
remembering sound stimuli.

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 Oral communication…
Active listeners should do the following:
Make eye contact
Schedule sufficient, uninterrupted time for meetings
Genuinely seek information
Avoid being emotional or attacking others.
Paraphrase the message you heard, especially to
clarify the speaker’s intentions.
Keep silent. Don’t talk to fill pauses, or respond to
statements in a point-counterpoint fashion.
Ask clarifying questions.
Avoid making distracting gestures.

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 2. Constructive feedback
Managers often do poor jobs of providing employees
with performance feedback.
When providing feedback, do the following:
Focus on specific behaviors rather than making general
statements
Keep feedback impersonal and goal-oriented
Offer feedback as soon after the action as possible
Ask questions to ensure understanding of the feedback
Direct negative feedback toward behavior that the recipient
can control
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 2. Written communication
 It includes memos, letters, e-mail, faxes, periodicals,
bulletin boards, etc.
 Managers must be able to write clearly. The ability to
prepare letters, memos, disease reports, and other written
documents may spell the difference between success and
failure.
Advantages:
 It provides a record for referral and follow-up
 It is an inexpensive means of providing identical messages to a
large number of people.
Limitation:
 The sender doesn’t know how or if the communication is
received unless a reply is required.
 Writing skills are difficult to develop, and many individuals have
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 Poorly written documents cost money.
 Written…
Guidelines for effective written communication:
 Use the P.O.W.E.R. plan for preparing each message:
plan, organize, write, edit, and revise.
 Draft the message with the readers in mind
 Give the message a concise title and use subheadings
where appropriate
 Use simple words and short, clear, sentences and
paragraphs
 Back up opinions with facts
 Avoid “flowery” language, euphemisms, and trite
expressions
 Summarize main points at the end and let the reader
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 3. Non-verbal communication (body language)
 It consists of actions, gestures, and other aspects of
physical appearance that combined with facial
expression (such as smiling or frowning), can be
powerful means of transmitting messages.
Forms of non-verbal communication:
1. Physical or symbolical language- traffic light, sirens,
status symbol, etc
2. Body language- facial expression, posture or eye
contact, etc.

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 Significance of Communication in the
Management Process
 Communication is a linking process of management
 Communication is the primary means by which
people obtain and exchange information
 The most time-consuming activity a manager
engages in
 Information and communication represent power in
organization

 The ability to communicate well both orally and in

writing, is critical managerial skill and foundation of
effective leadership.
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Why do we communicate?

We communicate basically to meet the following

informational needs;
 To inform others or be informed
 To evaluate one’s own inputs or others output
 To direct others or be directed
 To influence others or be influenced

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 System of Communication
[Link] communication- flow of information from
top to bottom within an organization; order, instruction,
advisees, etc transmitted downwards.

[Link] communication- communication of

information, ideas, suggestions, opinions, or
complaints from lower position to higher.

[Link] communication- involves lateral

communication between those at equal levels of the
management hierarchy and staff functions of the
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 Causes of Communication Problems

• Lack of eye contact

• One-way communication only
• Lack of mutual understanding of goals or
desired results
• Different frames of reference
• Different Feelings

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 Ways to Effective Messages

• Think through what you want to say before you say it

• Simplify your message.
• Be specific; don’t beat around the bush.
• Try to be as brief as possible.
• Review important points.

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DECISION MAKING
DECISION MAKING
A decision is a choice between two or more alternatives.
This implies 3 things.
 When managers make decisions they are choosing---
they are deciding what to do on the basis of some
conscious and deliberate logic or judgment.
 Managers have alternatives available when they are
making a decision.
 It require wisdom and experience to evaluate several
alternatives and select the best one

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 It is universal process in all management fuctions, at
all levels of management
Decision making is not a separe function of
management, but it is a common core to the other
functions

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 Steps in Decision making

1. Identifying a problem
2. Identifying decision criteria
3. Allocating weights to criteria
4. Developing alternatives
5. Analyzing alternatives
6. Selecting an alternative
7. Implementing the alternative
8. Evaluation (of decision effectiveness)

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 Process…
Step 1: Identify a Problem
The difference between what is known & what it ought
to be
E.g : To purchase a new Health care instruments

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 Step 2: Decision Criteria
Factors that are relevant in making the decision
Price
Interior comfort
Durability
Repair record
Performance
Handling

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 Step 3: Allocating Weights
Determining the relative priority of each of the criteria

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 Criterion Weight
Price 10
Interior comfort 8

Durability 5

Repair record 5

Performance 3

Handling 1

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 Step 4: Alternatives
Generate a list of possible instrument manufacturers

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 Step 5: Analyzing Alternatives
Assessing the value of each alternative by making a
value judgment of the feature

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 Concluding Steps in Making a Decision
Step 6: Select the “best”
Step 7: Implement decision
Step 8: Evaluate decision

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Conditions that Influence Decision Making

Managers make problem-solving decisions under three

different conditions/environment:
Certainty
Risk
Uncertainty
All managers make decisions under each condition, but
the last two are common to the more complex and
unstructured problems faced by top managers.

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 Decision making...
Certainty, the manager has perfect knowledge. The
manager can rely on the policy or standing plan, and the
decision is routine

Risk-Problems, and alternatives are known, but the

consequences of each alternatives are not clear
The manager is face in a dilemma of choosing the best
alternative available

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 Decision making...
Uncertainity, Most difficult situation
The decision making in this case is like a pioneer.
The manager is not able to determine the exact odds
(probabilities) of the potential alternative variables, too
many variable, and too many unknown facts
What can be done? Rely on experience, judgement, and
using other people‘s experience

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 Types of decisions

1. Programmed - Nonprogrammed decision

2. Ends – means decision
3. Administrative – operational decision

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1. Programmed and Nonprogrammed decision
Programmed decision are made for common, repitive and
routine activities.
It is usually carried out using guideline, rules, regulations and
procedure mannuals
E.g. patient admitting procedures, scheduling, and
billing and inventory supply ordering procedures etc.

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Nonprogrammed decision is made when unusal, complex,
or extremely important problem or event occures.
Decisions are determind as nonprogrammed when they are
novel, and unstructured.
It is made based on intuition, judment, and needs creativity,

E.g. whether to expand facilities, add, close, or share

services. Seek Medicare certification of skilled beds,
restructure the organization or align with a network of
HSOs, acquire clinical information system or add a
family practice residency program. Such decisions
occur infrequently.

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 2. Ends – means decision
Ends decision: Objectives / output
 Decisions that deal with the determination of desired
individual or organizational results.
Means decision: Strategies/operational program/
activities that will accomplish desired results

Example:
a decision to emphasize quality and productivity
improvement [means] accomplishes the organizational
objectives of enhanced quality of care and service,
higher patient or customer satisfaction and better
resource use [ends]
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3. Administrative – operational decision
Administrative decisions
 Also called Policy decisions
Decisions made by senior managers
Resource allocation & utilization
E.g. deciding whether to finance facility construction or
renovation using debt, without demanding a certification
election, hire hospital based physicians, contract for
laundry services, reduce the capital equipment budget, or
participate in an integrated system of HSOs

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Operational decisions
made by mid level & first line managers.
Day to day activities

Example for operational decision

They include deciding whether to purchase non capital
equipment, reassign staff, modify work systems and modify
job content.

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 Personal Decision-Making Styles
Managerial decision making depends on many factors,
including the ability to set priorities and time decisions
correctly.
But, the most important influence on managerial decision
making is a manager’s personal attributes or his or her
own decision-making approach.
The three most common decision-making models:
1. Rational/logical
2. Intuitive
3. Predisposed

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Model…
1. Rational/Logical decision model
 It focuses on facts and reasoning.
 It uses a step-by-step process, similar to the eight-step
decision-making process.
 It relay on the steps and decision tools, such as
payback analysis, decision tree, and research.
2. Intuitive decision model
 It avoids statistical analysis and logical processes.
 These managers are “gut” decision makers who rely
on their feelings about a situation.
 Decisions making is without formal analysis or
conscious reasoning, it is based on years of managerial
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Model ….

3. Predisposed decision model

 A manager who decides on a solution, gathers
material to support the decision.
 Managers making decisions using this approach don’t
search out all possible alternatives, rather, they look
for a satisfactory alternatives-they don’t search for
additional solutions only accept the first workable
solution.
 Only a fraction of the available alternatives are
considered due to the decision maker’s information-
processing limitations.
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 Decision Making Tools
Quantitative techniques help manager improve the
overall quality of decision making.
These techniques are most common used in the
rational/logical decision model, but can be applied in
any of the other models.
The most common techniques are:
1. Decision trees
2. Payback analysis
3. Simulations

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 Tools …
1. Decision trees
 It shows a complete picture of a potential decision and
allows a manager to graph alternative decision paths.
 It is a useful way to analyze hiring, marketing,
investments, equipment purchase, pricing, and similar
decisions that involve a progression of smaller
decisions.
 It is used to evaluate under conditions of risk.
 It forces a manager to be explicit in analyzing
conditions associated with the future decisions and in
determining the outcome of different alternatives.
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 Tools …
2. Payback analysis
 It helps a manager to decide whether to purchase a piece
of equipment.
 When purchasing equipment, a manager should consider
some factors, such as expected life of the equipment,
warranty and repair record, its cost of insurance, and
rental demand for the equipment
 So, based on the information gathered, a manager can
then rank alternatives based on the cost of each.
 In the academic area, many individuals use this
technique when they decide whether they should
continue their education.

47 This technique is worthwhile, if the benefit outweigh
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 Tools …
3. Simulation
 Simulation is basically model building, in which the
simulator is trying to gain understanding by
replicating something and then manipulating it by
adjusting the variables used to build the model.
 If a manager could simulate alternatives and predict
their outcomes at this point in the decision process,
s/he would eliminate much of the guesswork from
decision making.

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 Deciding who is to decide
[Link] decisions- a decision made by a manager
alone

[Link] decisions-need of additional information

and/or advice from others but the manager make the
final decision.

[Link] decisions-participative approach to seek

informational inputs from the group and to get the group
to participate in the decision making process itself.

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 Question?

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 Thank you!!!

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