1. 17
Communication and Decision-Making

2. Chapter Objectives
After reading and studying this chapter, the student should be able to do the following:
Define communication.
List barriers to effective interpersonal communication and how to overcome them.
Differentiate between formal and informal communication.
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3. Chapter Objectives
After reading and studying this chapter, the student should be able to do the following:
Explain communication flows and networks.
Outline the eight steps in the decision-making process.
Know the difference between rational, bounded rational, and intuitive decisions.
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4. Chapter Objectives
After reading and studying this chapter, the student should be able to do the following:
Identify situations in which programmed decision is a better solution than a non-programmed decision.
Differentiate the decision conditions of certainty, risk, and uncertainty.

5. Managerial Communication
Communication is the oil that lubricates all of the other management functions of forecasting, planning, organizing, motivating, and controlling.
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6. Managerial Communication
Managers interact with others throughout the day by the following means:
Personal face-to-face meetings
Telephone
Mail/fax
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7. Managerial Communication
Managers interact with others throughout the day by the following means:
Memos, reports, log books, and other internal/external written communication
, Websites
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8. Managerial Communication
The simplest method of communication involves a sender, a message, and a receiver.
Several factors can lead to distortion of the message, such as noise interference, poor listening skills, and inappropriate tuning.

9. What is Communication?
Communication is the exchange of information and meaning and the essence of communication is the exchange of information.
Another important aspect of communication is understanding the meaning.
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10. What is Communication?
Perfect communication results when a sender communicates a thought or idea and the receiver perceives it exactly as envisioned by the sender.
You can disagree with something even though you fully understand it.
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11. What is Communication?
Managerial communication includes two different types:
Interpersonal communication occurs between two or more individuals.
Organizational communication includes all the different forms, networks, and systems of communication that occur among individuals, groups, or departments within an organization.

12. The Interpersonal Communication Process
Communication between two or more people is described as “interpersonal communication” and the process is made up of seven elements: the sender, encoding, the message, the channel, the receiver, decoding, and feedback.
Noise is often a part of the interpersonal communication process.
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13. The Interpersonal Communication Process
Noise can consist of various activities going on in the background…
Therefore, noise is considered a somewhat constant disturbance in the communications process and the cause of distortions of the message.
Too much knowledge may cause the message not to be understood at all.
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14. The Interpersonal Communication Process
Preexisting attitudes and the cultural system of the sender can influence the encoding of the message as well.
The message itself, such as a written document, an oral speech, or gestures and facial expressions, can be influenced by disturbances.
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15. The Interpersonal Communication Process
The channel used to convey the message is important to the whole communications process.
Whether the sender chooses to use an office memorandum, a phone call, , gestures, or pictures to convey the message will play a large role in how accurately the receiver will understand it.
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16. The Interpersonal Communication Process
Using two channels can sometimes eliminate distortion—for example, oral speech followed by a written summary.
The receiver is limited by the same factors as the sender.
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17. The Interpersonal Communication Process
If he/she has too little knowledge of the subject, distortions will take place, and if he/she has too much knowledge, too much can be read into a simple message.

18. Communicating Interpersonally
Examples of communication by managers include face-to-face, telephone, , fax, group discussions and meetings, memos, formal presentations, bulletin boards, mail, employee publications, and teleconferencing.
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19. Communicating Interpersonally
Communication experts generally agree that when two people are engaged in a face-to-face conversation, only a small fraction of the total message they share is contained in the words they use.
A large portion of the message is contained in vocal elements such as tone of voice, accent, speed, volume, and inflection.
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20. Communicating Interpersonally
The largest part of the message—and arguably the most important—is conveyed by a combination of gestures, postures, facial expressions, and clothing.
Although people may listen closely to what is said, nonverbal behavior may constitute two-thirds or more of total communication.
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21. Communicating Interpersonally
Nonverbal communication is communication without words—gestures, actions, and the type of clothes worn communicate messages to us.
Body language consists of facial expressions, gestures, and any other ways of communicating a message with your body.
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22. Communicating Interpersonally
Verbal intonation is using your voice to emphasize certain parts of a phrase or certain words.

23. Barriers to Effective Interpersonal Communication
Everybody perceives things differently.
This is due to different backgrounds, upbringing, personal experiences, and major influences in their lives.
No two people are alike, and neither is their perception.
The actual meaning of words, or semantics, is the cause of many failed communication efforts.
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24. Barriers to Effective Interpersonal Communication
The literal meaning of words and the actual meaning can be two different things, but they can be expressed in the same way.
Nonverbal communication—communication through body language—is a typical means of communication.
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25. Barriers to Effective Interpersonal Communication
However, it can also be considered a barrier to effective communication.
Misinterpretations of nonverbal communication are especially dominant in cross-cultural communication.
Gestures and expressions mean different things in different cultures.
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26. Barriers to Effective Interpersonal Communication
Ambiguity, vagueness, or uncertainty can occur in a message being conveyed.
A message may be ambiguous, meaning the person receiving the message is uncertain about the actual meaning.
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27. Barriers to Effective Interpersonal Communication
When people feel that they are being verbally attacked or criticized, they tend to react defensively; the reaction could be making sarcastic remarks, being overly judgmental, or simply screening out the unpleasant parts of the conversation.

28. Overcoming Barriers to Effective Personal Communication
Right off the bat, offering feedback, the last step in the communication process, will eliminate misunderstandings and inaccuracies regarding the message being conveyed.
The feedback can be verbal or nonverbal.
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29. Overcoming Barriers to Effective Personal Communication
The best form of verbal feedback is a quick restatement and summary of the message that has been conveyed.
There is a difference between hearing and actually listening.
You may hear what your manager is saying, but did you listen?
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30. Overcoming Barriers to Effective Personal Communication
Hearing is passive, and listening is a deliberate act of understanding and responding to the words being heard.
The first step to active listening is listening for the total meaning.
Defensiveness is one of the main barriers to effective communication.
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31. Overcoming Barriers to Effective Personal Communication
By avoiding the tendency to criticize, argue, or give advice, senders can avoid triggering defensive behavior.
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32. Overcoming Barriers to Effective Personal Communication
Leaders will get the best results with and through their associates if they:
Have a great attitude toward your associates.
Treat them fairly and with respect.
Establish a climate of trust.
Include your associates in as much decision making as possible.
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33. Overcoming Barriers to Effective Personal Communication
Leaders will get the best results with and through their associates if they:
Be sensitive to cultural differences and learn more about their cultures.
Learn the best ways to communicate.
Make sure that your associates know what is expected of them.
Actively listen to them.
And, train them.

34. Formal and Informal Communication
Formal communication is used by managers to communicate job requirements to their employees.
It follows the official chain of command.
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35. Formal and Informal Communication
Informal communication does not follow a company’s chain of command or structural hierarchy.
The subject matter may be job related but may not be essential to performing job duties.

36. Communication Flows and Networks
Upward communication takes place when managers or superiors rely on their subordinates for receiving information.
It flows upward from employees to managers.
Communication flowing down from supervisor to employee is considered downward communication.
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37. Communication Flows and Networks
Downward communication is often used to inform, direct, coordinate, and evaluate employees.
Communication that takes place between the employees of a company who are on the same hierarchical level in the organization is called lateral communication.
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38. Communication Flows and Networks
This type of communication is used by employees to discuss their environment and the organization in general.
Communication that takes place between employees who are on different hierarchical levels and in different departments of the organization is called diagonal communication.
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39. Communication Flows and Networks
Communication in a chain network flows according to the existing chain of command of an organization.
This includes downward as well as upward communication flow.
This type of network is highly accurate; no information can be lost, and the path the message travels is precise.
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40. Communication Flows and Networks
The wheel network is a network in which communication flows between a strong leader and each individual in a group or team; they communicate solely with their leader.
The all-channel communication network is differentiated from others by its freely flowing communication between all members of a group or team.
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41. Communication Flows and Networks
This means that the leader communicates with employees, and employees all communicate with each other.
The grapevine may be the most popular and important communication network in an organization.
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42. Communication Flows and Networks
One survey reported that 75% of employees hear about matters first through rumors on the grapevine.
The grapevine is an informal organizational communication network and an important source of communication for the managers of an organization.

43. The Decision-Making Process
Step 1: Identification and Definition of the Problem
Defining this problem is best done by writing a problem statement.
Once the problem has been accurately stated, it becomes easier to move to the next step.
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44. The Decision-Making Process
Step 2: Identification of Decision Criteria
Once the problem has been identified and defined, we need to determine the criteria relevant to the decision.
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45. The Decision-Making Process
Step 3: Allocation of Weights to Criteria
To decision makers, decision criteria all have different levels of importance.
One method used to weigh the criteria is to give the most important criterion a weight of 10 and then score the others according to their relative importance.
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46. The Decision-Making Process
Step 4: Development of Alternatives
In developing alternatives, decision makers list the viable alternatives that could resolve the problem. No attempt is made to evaluate these alternatives —only to list them.
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47. The Decision-Making Process
Step 5: Analysis of Alternatives
The alternatives are analyzed using the criteria and weights established in Steps 2 and 3.
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48. The Decision-Making Process
Step 6: Selection of an Alternative
Select the best alternative.
Once the weighted scores for each alternative have been totaled, it will become obvious which is the best alternative.
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49. The Decision-Making Process
Step 7: Implementation of an Alternative
Ensure that the alternative is implemented so that the decision is put into action.
Sometimes good decisions fail because they are not put into action.
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50. The Decision-Making Process
Step 8: Evaluation of the Decision’s Effectiveness
The final step in the decision loop is to evaluate the effectiveness of the decision.
As a result of the decision, did we achieve the goals we set?
If the decision was not effective, then we must find out why the desired results were not attained.

51. How Managers Make Decisions
Managers are the main decision makers in any organization.
Although all employees face daily decisions, the choices a manager makes impact the future of the organization.
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52. How Managers Make Decisions
Decision-making is an integral part of all four primary managerial functions: planning, organizing, leading, and controlling.

53. Making Decisions: Rationality, Bounded Rationality, and Intuition
The first criterion for making a decision is that it must be rational.
Several assumptions are made to define what a rational decision really is.
First, the decision itself would have to maximize value and be consistent within natural constraining limits.
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54. Making Decisions: Rationality, Bounded Rationality, and Intuition
This means that the choice made must maximize the organization’s profitability.
One assumption of rationality as it relates to the decision maker is that he/she is fully objective and logical.
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55. Making Decisions: Rationality, Bounded Rationality, and Intuition
Bounded rationality means that managers make decisions based on the decision-making process that is bounded, or limited, by an individual’s ability to gain information and make decisions.
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56. Making Decisions: Rationality, Bounded Rationality, and Intuition
When decision makers cannot find all of the necessary information to analyze a problem and all of its possible alternatives, they find themselves sacrificing or accepting a solution that is just “good enough” rather than maximizing.
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57. Making Decisions: Rationality, Bounded Rationality, and Intuition
Intuitive decision-making is a subconscious process of making decisions on the basis of experience and accumulated judgment.
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58. Making Decisions: Rationality, Bounded Rationality, and Intuition
Five different identified aspects of intuition comply with the different types of decisions made.
The first is a values- or ethics-based decision.
The second is an experience-based decision.
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59. Making Decisions: Rationality, Bounded Rationality, and Intuition
Five different identified aspects of intuition comply with the different types of decisions made.
Affect-initiated decisions are those that are based on a manager’s emotions and feelings.
The fourth type is a cognitive-based decision.
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60. Making Decisions: Rationality, Bounded Rationality, and Intuition
Five different identified aspects of intuition comply with the different types of decisions made.
Last, the manager may use his or her subconscious mind to retain data and process it.
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61. Making Decisions: Rationality, Bounded Rationality, and Intuition
Intuition and rationality are separate but are often used in combination in most decision making.
The two complement each other to offer the manager an ideal solution for the decision-making process.

62. Types of Problems and Decisions
The two major types of decisions are programmed decisions and non-programmed decisions.
A programmed decision involves situations that recur on a regular basis, allowing the response to be a handled with a “programmed” response.
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63. Types of Problems and Decisions
In a programmed decision, the response will occur on a repetitive basis.
Programmed decisions generally become a standard operating procedure.
A non-programmed decision is nonrecurring and made necessary by unusual circumstances.
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64. Types of Problems and Decisions
The type of problem that induces a non-programmed decision is a poorly structured problem.
These types of problems are usually new or unusual to the decision maker.
More often than not, the information on the problem is incomplete or unavailable.

65. Decision-Making Conditions
The ideal situation for making a decision is one of certainty.
A decision of certainty includes knowing all of the alternatives and therefore having no risk involved when making a decision, because the outcome is known.
Making a decision that involves risk is one of the most common situations.
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66. Decision-Making Conditions
Here, the decision maker is not certain of the outcome of the situation.
However, through personal experience, or a simple “gut feeling,” he/she can estimate the probability of the outcome.
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67. Decision-Making Conditions
Uncertainty situations are characterized by having to make a decision when the outcome is not certain and when reasonable outcome estimates can’t be made either.
These situations often arise when alternatives to the decision are limited because of a lack of adequate information.

68. Decision-Making Styles
Decision makers differ in their way of thinking; some are rational and logical, whereas others are intuitive and creative.
Rational decision makers look at the information in order.
They organize the information and make sure it is logical and consistent.
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69. Decision-Making Styles
Intuitive thinkers, on the other hand, can look at information that is not necessarily in order.
They can make quick decisions based on their spontaneous creativity and intuition.
The second dimension in which people differ is each individual’s tolerance for ambiguity.
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70. Decision-Making Styles
Managers who have a high tolerance for ambiguity are lucky in that they save a lot of time while making a decision.
These individuals can process many thoughts at the same time.
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71. Decision-Making Styles
Four major decision-making styles become evident:
The directive style entails having a low tolerance for ambiguity as well as being a rational thinker.
Individuals who fall into the category of having a directive decision-making style are usually logical and very efficient.
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72. Decision-Making Styles
Four major decision-making styles become evident:
Decision makers who have an analytic style of decision-making have a large tolerance for ambiguity.
These people require more information before making their decisions and, consequently, they consider more alternatives.
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73. Decision-Making Styles
Four major decision-making styles become evident:
Decision makers who have a conceptual style of decision-making look at numerous alternatives and are typically very broad in their outlook.
Their focus is on the long run of the decision made.
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74. Decision-Making Styles
Four major decision-making styles become evident:
Decision makers who work well with others are said to have a behavioral style of decision-making.
This entails being receptive to suggestions and ideas from others, as well as being concerned about the achievements of their employees.
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75. Decision-Making Styles
Decision makers often combine two or more styles to make a decision.
Most often a manager will have one dominant decision-making style and use one or more other styles as alternates.

76. Sustainable Communication and Decision-Making
In order to successfully implement sustainable initiatives, it is important to effectively communicate sustainable goals internally to employees and investors, as well as to guests.
Sustainable initiatives are driven from within an organization through employee encouragement and involvement.
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77. Sustainable Communication and Decision-Making
The decision to employ sustainable practices is generally made from the top of an organization; however, it must be supported by everyone in order to prevail.
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78. Sustainable Communication and Decision-Making
Because tourism heavily impacts local communities, it is important to effectively communicate sustainable initiatives by fostering a degree of participation from the local population.
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79. Sustainable Communication and Decision-Making
Some strategies to involve the local population in tourism development include training, meetings, workshops, special events, projects, and so on. It is beneficial to harbor trust by creating relationships with local communities, and considering their needs and concerns.

80. Trends in Communication and Decision-Making
Current trends include:
Maintaining a solid business reputation: public comments and observations, both positive and negative, can be captured and shared in real time to a global audience.
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81. Trends in Communication and Decision-Making
Current trends include:
Integrated marketing communications: remain consistent in messaging across all communication channels.
Ethics in the hospitality industry.
Employee satisfaction leads to guest satisfaction.
New decision-making models: ALL staff must be able to make decisions.
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82. Trends in Communication and Decision-Making
Improved hospitality consumer insights: it is imperative that we learn more about some of the choices individuals and groups make.
Divergent market segmentation: as each generational cohort matures and their lifestyles evolve, their spending and travel habits typically also start to change, and the industry must react.
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83. Trends in Communication and Decision-Making
Innovative technology: need to continue to invest in technology to help improve the guest experience, but they must also make smart investments.