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III. COMMUNCATION AND DECISION-MAKING AT THE WORKPLACE

Images from Scalable Sustainable Business Growth Ltd

A. WORKPLACE COMMUNICATION

A.1 Significance and Definition of Communication

Communication plays a practical at the same time crucial role

in delivering daily functions and responsibilities in our organizations. “Wise men speak because they
Employers, managers, owners, and supervisors who spend time and have something to say; Fools
energy to establish open and active communication lines attract trust, speak because they have to
confidence, and to a certain degree complacency from employees and say something. -Plato”
subordinates. Good communication at the workplace is an essential
tool in achieving productivity and maintaining strong working relationships at all levels of the organization.
These result to productivity, performance, and overall morale. Employees who communicate effectively with
colleagues, managers and customers are always valuable assets to an organization and it is a valuable skill
which can often set people apart from their competition. On the other hand, communication as an art of
expression at work serves as a challenge and a mystery to certain people. Poor communication in the workplace
will inevitably lead to unmotivated staff that may begin to question their own confidence in their abilities and
inevitably in the organization
Proper understanding of responsibilities is a function of effective communication. A person will perform
according to what he perceives he is supposed to do. The right perception of roles will happen if motivating
actions are sufficient. The results of these actions, however, will depend on whether they are properly
communicated.
Communication in the workplace is a sign of a high-performing climate. This is because exchanging
solutions and ideas within the organization becomes a standard and often times lead to extracting the best
possible idea and solution. This connects both communication and decision-making, an effective
communication process speeds up decision making.

Communication can be simply defined as the ‘process of

imparting or exchanging of data or information’ or technically defined as
the ‘process of sharing information through verbal and non-verbal
“Think like a wise man but means, including words, messages, and body movements. It may happen
communicate in the between superior and subordinate, between the manager and the
language of the people." customer, between an employee and a government representative, and
- William Butler Yeats” the like. It may be done face-to-face, or through printed materials like
newspapers and books, or through electronic devices like the telephone
and the computer.’

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College of Business and Management CENTRAL MINDANAO UNIVERSITY
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A.2 Functions of Communication

MOTIVATION

CONTROL

a) Information function. Information provided through communication may be used in decision-making at

various work levels in the organization.

Ex. A construction worker may be given instructions on the proper use of certain equipment. This
will later provide him with a guide in deciding which equipment to use in particular circumstances.

b) Motivation function. Communication is also oftentimes used to motivate employees to commit themselves
to the organization’s objectives.

When objectives are clearly stated, direction is provided, and achieving them becomes a matter of course.

c) Control function. When properly communicated, reports, policies, and plans define roles, clarify duties,
authorities and responsibilities. When this happens, effective control is facilitated.

d) Emotive function. When feelings are repressed in the organization, employees are affected by anxiety,
which in turn, affects performance.

Whatever types of emotions are involved, whether satisfaction, dissatisfaction, happiness, or bitterness,
communication provides a means to decrease the internal pressure affecting the individual.

A.3. Forms of Communication

• Oral
verbal
• Written

• Body language
Non-
• Clothing
verbal
• Appearance

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College of Business and Management CENTRAL MINDANAO UNIVERSITY
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Verbal Communication
This form refers to those which are transmitted through hearing or sight. Those modes of
transmission categorize verbal communication into two classes: oral and written. The written
communication is, sometimes, preferred over the oral communication because of time cost and constraints.
When the person for instance cannot personally meet or call the receiver due to some reason, a written letter
or memo is prepared and sent to the receiver. However, it has limitations, and to remedy these, some means
are devised. For instance, perfume advertisers lace their written message with a smell of their products.

Non-verbal Communication

It is the means of conveying message through body language, as well as the use of time, space,
touch, clothing, appearance, and aesthetic elements. Body language consists of gesture, bodily movement,
posture, facial expression, and mannerism of all kinds.

Non-verbal expressions convey many shades of meaning and it is to the advantage of the
communicator to understand what message is relayed.

A.4 The Communication Process

The communication process consists of eight steps which are as follows: 1) develop an idea, 2) encode, 3)
transmit, 4) receive, 5) decode, 6) accept, 7) use, and 8) provide feedback.

The Simplified Communication Process

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Develop an idea

The most important step in effective communication is developing an idea. It is important that the
idea to be conveyed must be useful or of some value. Examples of useful ideas are 1) the prevention of
accidents in the workplace, and 2) how to increase sales volume.

Encode

The next step is to encode the idea into words, illustrations, figures, or other symbols suitable for
transmission. The method of transmission should be determined in advance so that the idea may be encoded
to conform with the specific requirements of the identified method.

Transmit

After encoding, the message is now ready for transmission through the use of an appropriate
communication channel. Among the various channels available for transmission are the following: the
spoken word, body movements, the written word, television, telephone, cellphone, computer, radio, artist’s
painting, the movies, sound recording, and some others.

Proper transmission is very important so the message sent will reach and hold the attention of the
receiver. To achieve this, the communication channel must be free of barriers, or interference (sometimes
referred to as noise).

Receive

The next step in the communication process is the actual receiving of the message by intended
receiver. The requirement is for the receiver to be ready to receive at the precise moment of the message
relayed by the sender.

The message may be initially received by a machine or by a person. In any case, the attempt to
communicate is blocked when the machine is not turned on or tuned in to receive the message, or the person
assigned to receive the message does not listen or pay attention properly.

Decode

The next step which is decoding means translating the message from the sender into a form that
will have meaning to the recipient. If the receiver knows the language and terminology used in the message,
successful decoding may be achieved.

If the receiver understands the purpose and the background situation of the sender, decoding will
be a lot easier. Example, Juan saw Pedro fell into a swimming pool and Juan knows that Pedro cannot swim,
Juan will quickly understand that Pedro is asking for help if Pedro starts to shout.

Accept

Sometimes, acceptance(rejection) is partial. The factors that will affect the acceptance or rejection
of a message consists of the following:

1) The accuracy of the message

2) Whether or not the sender has the authority to send the message and/or require action; and
3) The behavioral implications for the receiver.

Use

If the message provides something importance to a relevant activity, then the receiver could store
it and retrieve it when required. If the message requires a certain action to be made, then he may do so,
otherwise, he discards it as soon as it is received. All the above-mentioned options will depend on how the
message is perceived by the receiver.

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College of Business and Management CENTRAL MINDANAO UNIVERSITY
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Provide Feedback

Even if feedback is relayed, it may not reach the original sender of the message. This may be
attributed to the effects of any of the communication barriers.

A.5 The Barriers to Communication and Ways to Overcome them

Various factors may impede the efficient flow of communication. Any or all these factors may, at
any stage, detail the process. Even if the message is transmitted by the channel, the timing and the meaning
of the message may be affected by the factors.

The barriers to communication may be classified generally as:

1) Personal barriers
2) Physical barriers; and
3) Semantic barriers

Personal Barriers—hindrances to effective communication arising from the communicator’s

characteristics as a person, including emotions, values, poor listening habits, sex, age, race, socio economic
status, religion, education, and others.

Emotions cloud the communicator’s ability to judge correctly the real meaning of messages
received, assuming that this could even receive at all. People with different values will find it hard to
communicate with each other. Poor listening habits of a receiver frustrate the communication efforts of a
sender.

Physical Barriers—refer to interference to effective communication occurring in the environment

where the communication us undertaken. The very load sound produced by a passing jet temporarily drowns
out the voice of a guest delivering the speech. Such distraction does not allow full understanding of the
meaning of the entire message and is an example of a physical barrier.

Physical barriers include physical distances between people, walls, a noisy sound system near a
telephone, and the like. A communication channel that is overloaded may also prevent important
information to reach the intended user. Another physical barrier is timing poor timing. For instance, how
may one expect a person who has just lost a loved one immediately accede to a personal request from a
fellow employee?

Semantic Barriers—may be defined as an interference with the reception of a message that occurs
when the message is misunderstood even though it is received exactly as transmitted. Semantics is the study
of meaning as expressed in symbols. Words, pictures, or actions are symbols that suggest certain meanings.
When the wrong meaning has been chosen by the receiver, misunderstanding occurs.

✓ Physical barriers: sound, time, and space

✓ Semantic barriers: when words matter
✓ Personal barriers: individual attributes that hinder communication

Overcoming Barriers to Communication

When communication barriers threaten effective performance, certain measures must be instituted to
eliminate them. To reduce or eliminate problems due to noise, selective perception, and distraction, the
following are recommended:

1) Use feedback to facilitate understanding and increase the potential for appropriate action.
2) Repeat messages in order to provide assurance that they are properly received.
3) Use multiple channels so that accuracy of the information may be enhanced.
4) Use simplified language that is easily understandable, and which eliminates the possibility of
people getting mixed up meanings.

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College of Business and Management CENTRAL MINDANAO UNIVERSITY
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A.7 Techniques for Communicating in Organizations

Communications may be classified as to the flow of the message which are as follows: downward,
upward, or horizontal. Each of the type of message flow has its own purposes and techniques.
Downward Communication—refers to the message flow from higher levels of authority to lower
levels. Among the purposes of downward communication are:
1) To give instructions
2) To provide information about policies and procedures
3) To give feedback about performance
4) To motivate

Among the techniques used in downward communication are letters, meetings, telephones,
cellphones, manuals, handbooks, and newsletters.
Upward Communication—refers to message flows from persons in lower-level positions to
person in higher-level positions. The messages sent usually provide information on work progress,
problems encountered, suggestions for improving output, and personal feelings about work and non-work
activities.
Among the techniques used are formal grievance procedures, employee attitude opinion surveys,
suggestion systems, open-door policy, informal gripe sessions, task forces, and exit interviews.

Horizontal Communication—refers to the messages sent to individuals or groups from another

of the same organizational level position.

The purposes of horizontal communication are:

1) To coordinate activities between departments

2) To persuade others at the same level of organization; and
3) To pass on information about activities and feelings.

Among the techniques appropriate for horizontal communication are memos, meetings, telephones,
picnics, dinners, and other social affairs.

Supplemental video on the Importance of Communication by 360training.com

Video link: https://youtu.be/nIQhHEWpdWs

BA 41.Business and Management Integrals.2020

College of Business and Management CENTRAL MINDANAO UNIVERSITY
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B. DECISION-MAKING AT THE WORKPLACE

B.1 Decision-Making defined and contextualized in Management

Everything that happens in an organization is a product of

decision-making. The organization's very existence would not be “Decisions are the hardest thing to
possible is someone at the very start did not decide to have it. Every make especially when it is a choice
individual in the organization makes thousands of decisions in between where you should be and
varying degrees of importance every day. Decision-making is a where you want to be”
continuous process, with the results of one decision affecting the
others and the next one. Decisions are a vital part of society, yet
people usually neglect their importance until things get serious.
Every decision count towards the success or failure of every organization. There are many types of
decisions made in an organizational setting and the effects of being careless or failing to think things seriously
in making a decision can pose a huge threat to the organization.
Managers of all kinds and types are primarily tasked to provide leadership in the quest for the attainment
of the organization’s objectives. If he is to become effective, he must learn the intricacies of decision-making.
Many times, he will be confronted by situations where he will have to choose from among the various options.
Whatever he chooses, it will have effects, good or bad, immediate, or otherwise, in the operations of his
organization.
Decisions must be made at various levels in the workplace. They are also made at the various stages in
the management process. If certain resources must be used, someone must decide authorizing certain person to
appropriate such resources. Decision-making is usually the responsibility of the manager. It is understandable
for managers to make wrong decisions at times. The wise manager will correct them as soon as they are
identified.
Management must strive to learn how to choose a decision option as correctly as possible. Since they
have that power to decide, they are responsible for whatever outcomes their decisions bring. The higher the
management level is, the bigger and more complicated decision-making becomes.

Example:
The manager of a retailing firm has decided to open a branch in one of the provinces within this
area of assignment. After considering various towns, he came to a conclusion that his choice must be one
of the three potential sites identified. Each of the sites has advantages and disadvantages.
A decision must be made quickly by the manager. His choice, however, must be based on sound
criteria. The manager will be held responsible, later on, if he made the wrong choice.

Decision-making may be defined as the process of defining the problem and identifying and
choosing alternative courses of action in a manner appropriate to the demands of the situation.

The definition indicates that the decision-maker (most often the manager) must adapt a certain
procedure designed to determine the best option available to solve certain problems.

Decisions are made at various management levels (i.e., planning, organizing, leading, and
controlling). Since this is so, decision-making is regarded a “the heart” of all management functions.

✓ Decision—choice made from among available alternatives

✓ Decision-making—a process of identifying and choosing alternative courses of action

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College of Business and Management CENTRAL MINDANAO UNIVERSITY
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B.2 The Decision-making Process

D • Diagnosing the Problem

E 1
C • Analyzing the environment
I 2
• Articulating the Problem
S
I 3
O
4 • Developing viable alternatives
N
• Evaluating Alternatives
-
M
5
• Making a Choice
A
K
6
• Implement the Decisions
I
N
7
G 8 • Evaluating & Adapting Result

1) Diagnosing the Problem

If the manager wants to make an intelligent decision, his first move must be to identify the problem.
If the manager fails in this aspect, his moves will be useless. If the manager is not able to identify the real
problem, the solution he will offer will be irrelevant and may even be costly and destructive. Being able to
identify the real problem is tantamount to having the problem half-solved.
A problem exists when there is a difference between the actual situation and the desired situation.

2) Analyzing the Environment

The environment where the organization is situated plays a very significant role in the success or
failure of an organization. It is, therefore, very important that an analysis of the environment is undertaken.
The objective of environmental analysis is the identification of constraints, which may be spelled
out as either internal or external limitations.

Examples of Internal and External Limitations

INTERNAL LIMITATIONS
a) Limited training on the part of
the employees
b) Ill designed facilities
c) Irrelevant organization structure
EXTERNAL LIMITATIONS
a) Product patents are controlled by other
organizations
b) A very limited market for the company’s
products and service exists; and
c) Strict enforcement of local zoning
regulations

When decisions are to be made, the internal and external limitations must be considered. It may be
costly, later on, to alter a decision because of a constraint that has not been previously identified.

An illustration of failure to analyze the environment is as follows:

The president of a new chemical manufacturing company decided to locate his factory in a place
adjacent to a thickly populated area. Construction of the buildings were made with precision that they were
finished in a short period. When the clearance for the commencement of operation was sought from local
authorities, this could not be given. It turned out that the residents oppose the operation of the firm and they
took steps to make sure that no clearance is given.
The president decided to relocate the factory but not after much time and money have been lost. This
is a clear example of the cost associated with management decisions disregarding the environment. In this
case, the president did not consider what the residents can do.
Environment consists of two major concerns. The internal environment consists of organizational
activities within a firm that surrounds decision-making. External environment refers to the variables that are
outside the organization and not typically within the short-run control of top management.

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College of Business and Management CENTRAL MINDANAO UNIVERSITY
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3) Articulating the Problem or Opportunity

A problem is really an opportunity to improve one’s standing. If one wants to benefit from solving
a problem or exploiting an opportunity, a solution that will effectively address the situation is required. A
good solution must be chosen from among several alternatives.
The strength of the alternative solutions will depend on how well they are formulated. To achieve
this goal, the decision-maker must familiarize himself thoroughly with the problem. A way to do it is to
view the problem from different angles. He must be able to separate the trivial from the important
components of the problem.
Breaking the problem into several components will simplify the task of generating alternatives.
When at times it becomes difficult to offer a solution for the entire problem, individual solutions may be
used to deal with the components.

4) Develop Viable Alternatives

Oftentimes, a problem may be solved by any of the solutions offered. In solving a problem,
however, the best among the alternative solutions must be considered by management. This is made
possible by using a with the following steps:
a) Prepare a list of alternative solutions,
b) Determine the viability of each solution,
c) Revise the list by striking out those which are not viable.

To illustrate:

An engineering firm has a problem of increasing its output by thirty percent. This is the result of a new
agreement between the firm and one of its clients. The list of solutions prepared by the manager shows the
following alternative courses of action:
a) Improve the capacity of the firm by hiring more workers and building additional facilities,
b) Secure the services of subcontractors,
c) Buy the needed additional output from another firm,
d) Stop serving some of the company’s customers; and
e) Delay servicing some clients.
The list was revised and only the first three were deemed to be viable. The last two were deleted because of
adverse effects in the long-run profitability of the firm.

5) Evaluate Alternatives
After determining the viability of the alternatives and a revised list is made, an evaluation of the
remaining alternatives is necessary. This is important because the next step involves making a choice. Proper
evaluation makes choosing the right solution less difficult.
How the alternatives will be evaluated will depend on the nature of the problem, the objective of the
firm, and the nature of the alternatives presented. Each alternative must be analyzed and evaluated in terms of
value, cost, and risk characteristics.

6) Making A Choice
After the alternatives have been evaluated, the decision-maker must now be ready to make a choice.
This is the point where he must be convinced that all the previous steps were correctly undertaken.
Choice-making refers to the process of selecting among alternatives representing potential solutions to
a problem. At this point, specific effort should be made to identify all significant consequences of each choice.
To make the selection easier, the alternatives can be ranked from the best to worst on the basis of some
factors like benefit, cost, and risk.

7) Implement Decision
After a decision has been made, implementation follows. This is necessary, or decision-making will be
an exercise in futility.
Implementation refers to carrying out the decision so that the decision may be properly implemented.
Those who will be involved in implementation must understand and accept the solution. Otherwise, the
execution of the plan will be a failure.
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College of Business and Management CENTRAL MINDANAO UNIVERSITY
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8) Evaluate and Adapt Decision Results

In implementing the decision, the results expected may or may not happen. It is, therefore, important
for the manager to use control and feedback mechanisms to ensure results and to provide information for future
decisions.
Feedback refers to the process which requires checking at each stage of the process to assure that the
alternatives generated, the criteria used in evaluation, and the solution selected for implementation are in
keeping with the goals and objectives originally specified.
Control refers to actions made to ensure that activities performed match the desired activities, or goals,
that have been set.
In this last stage of the decision-making process, the manager will find out whether or not the desired
result is achieved. If the result was positive, one may assume that the decision made was good.

B.3 Approaches in Solving Problems

In decision-making the manager is faced with problems which may either be simple or complex. To
provide him with some guide, he must be familiar with the following approaches:
a) Qualitative evaluation
b) Quantitative evaluation
Qualitative evaluation
This approach refers to evaluation of alternatives using intuition and subjective judgment.
Managers tend to use qualitative approach when:
1. The problem is fairly simple.
2. The problem is familiar.
3. The costs involved are not great.
4. Immediate decisions are needed.
An example of an evaluation using the qualitative approach is as follows:
A factory operates on three shifts with the following schedules:
First shift—6:00 AM to 2:00 PM
Second shift—2:00 PM to 10:00 PM
Third shift—10:00PM to 6:00AM
Each shift consists of 200 workers manning 200 machines. On September 16, 2020, the operation
went on smoothly until the factory manager was notified at 1:00PM that five of the workers assigned
to the second shift could not report for work because of the injuries sustained in a traffic accident
while they were on their way to the factory.
Because of the time constraints, the manager made an instant decision on who among the first
shift workers would work overtime to man the five machines.

Quantitative Evaluation
This approach refers to the evaluation of alternatives using any technique in a group classified as
rational and analytical.
Quantitative Models for Decision-Making
The types of quantitative techniques which may be useful in decision-making are as follows:
1. Inventory Models—consists of several types and are all designed to help the manager make decisions
regarding inventory.
2. Queuing Theory—describes how to determine the number of service units that will minimize both
customers waiting time and cost of service. This is applicable to companies where waiting lines are a
common situation. Ex. Cars waiting for service at a car service center.
3. Network Models—these are models where large complex tasks are broken into smaller segments that can
be managed independently.
4. Forecasting—collecting past and current information to make predictions about the future.

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College of Business and Management CENTRAL MINDANAO UNIVERSITY
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0
5. Regression Analysis—may be simple or multiple depending on the number of independent variables
present. When one independent variable is involved, it is called simple regression; when two or more
independent variables are involved, it is called multiple regression.
6. Simulation—is a model constructed to represent reality, on which conclusions about real-life problems can
be based. It is a highly sophisticated tool by means of which the decision maker develops a mathematical
model of the system under consideration. It does not guarantee an optimum solution, but it can evaluate the
alternatives fed into the process by the decision maker.
7. Linear Programming—used to produce an optimum solution within the bounds imposed by constraints
upon the decision. It is very useful when supply and demand limitations at plants, warehouse, or market
areas are constraints upon the system.
8. Sampling Theory—sample populations are statistically determined to be used for several processes, such
as quality control and marketing research.

B.4 Styles of Decision-Making

1. Directive Style
✓ People have a low tolerance for ambiguity & are oriented toward task & technical concerns in making
decisions.
✓ They are efficient, logical, practical, & systematic in their approach to solving problems.
✓ Individuals tend to be autocratic, to exercise power & control, & to focus on the short run.

2. Analytical Style
✓ Has a much higher tolerance for ambiguity & is characterized by the tendency to overanalyze a situation.
✓ People with this style like to consider more information & alternatives.
✓ Careful decision makers who take longer to make decisions but who also respond well to new or uncertain
situations.

3. Conceptual Style
✓ They have a high tolerance for ambiguity & tend to focus on the people or social aspects of a work situation.
✓ Take a broad perspective to problem solving & like to consider many options & future possibilities.
✓ Adopt a long-term perspective & rely on intuition & discussions w/ others to acquire information.
✓ Willing to take risks & are good at finding creative solutions to problems.

4. Behavioral Style
✓ The most people-oriented style.
✓ Work well with others & enjoy social interactions in w/c opinions are openly exchanged.
✓ Are supportive, receptive to suggestions, show warmth, & prefer verbal to written information.
✓ Tendency to avoid conflict and to be concerned about others.

Supplemental video on the importance of decision-making.

Video Link: https://youtu.be/2tCYy66CyuQ

BA 41.Business and Management Integrals.2020

College of Business and Management CENTRAL MINDANAO UNIVERSITY