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Decision Making, Communication, and Balance

Chapter 11

Gregoire

Foodservice Organizations

Foodservice Organizations, 8e

Gregoire

The Process of Making Decisions

Decision-Making Process

The logical, stepwise approach that is used to make a choice between options, to solve a problem, or to resolve a dilemma.

Contingency Planning

Anticipation of the need to make a decision some time in the future and making the decision in advance so that it can be implemented in a timely manner at the time it is needed.

Foodservice Organizations, 8e

Gregoire

Decision Making

Identification

& Analysis

Problem

Definition

Selection

Foodservice Organizations, 8e

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Managers make decisions for the purpose of achieving individual and organizational objectives; effective managers must be good decision makers.

Decision making involves three primary stages:

Definition of the problem

Identification and analysis of possible courses of action

Actual selection of a particular course of action

Analyzing the decision processes by these stages illustrates the difference between management and nonmanagement decisions; managerial decisions encompass all three stages; nonmanagerial decisions are concentrated in the last, or choice, stage.

The Process of Making Decisions

Problem Identification

The first step in the decision-making process; the act of finding a problem and acknowledging that it exists.

Problem - A difference between what is and what should be.

ex: nutrient analysis software in clinical nutrition dept. needs upgrade

Foodservice Organizations, 8e

Gregoire

The Process of Making Decisions

2. Criteria for decision making

Establish Decision-Making Criteria - The second step in the decision-making process; determining which factors will have the most relevance in solving a given problem.

ex: list required and desired specs. for nutrient analysis software

Foodservice Organizations, 8e

Gregoire

The Process of Making Decisions

3. Weighting criteria

Weighting the Decision-Making Criteria - The third step in the decision-making process; assigning each established criterion a ranking in terms of importance to the decision that is to be made.

ex: Table 4.2...

Foodservice Organizations, 8e

Gregoire

Foodservice Organizations, 8e

Gregoire

The Process of Making Decisions

4.Developing alternatives

Identify the Alternatives - The fourth step in the decision-making process; the act of determining the different options available to solve the problem at hand.

ex: research available software packages

Foodservice Organizations, 8e

Gregoire

The Process of Making Decisions

5.Analysis of alternatives

Analyze the Alternatives - The fifth step in the decision-making process; the process of comparing and examining the alternatives available by measuring them against the same standards, using only relevant criteria.

ex: quantified analysis in Table 4.3...

Foodservice Organizations, 8e

Gregoire

Foodservice Organizations, 8e

Gregoire

The Process of Making Decisions

6.Choosing an alternative

Making the Decision - The sixth step in the decision-making process; involves choosing which alternative(s) will best solve the problem based on the analysis that has been done.

ex: choose software package to purchase (Option C from Table 4.3)

Foodservice Organizations, 8e

Gregoire

The Process of Making Decisions

7.Implementing the decision

Implement the Decision - The seventh step in the decision-making process; the act of carrying out the decision that has been made; often involves communicating exactly what is to happen based on the decision.

ex: purchase and install software, train dietitians to use it, enter data, etc.

Foodservice Organizations, 8e

Gregoire

The Process of Making Decisions

8.Evaluation

The eighth and last step of the decision-making process; receiving feedback about the decision that has been implemented

Was it effective, efficient, appropriate, and adequate?

ex: Did the software upgrade improve efficiency, quality patient service, etc.?

Foodservice Organizations, 8e

Gregoire

Types of Decision Making

Programmed

Nonprogrammed

Decisions

Foodservice Organizations, 8e

Gregoire

Foodservice managers must make many different types of decisions. Most decisions fall into one of two categories: programmed and nonprogrammed.

Programmed Decisions. Programmed decisions are reached by following established policies and procedures; these decisions also are referred to as routine or repetitive decisions.

Normally, the decision maker is familiar with the situation surrounding a programmed decision.

Limited judgment is called for in making programmed decisions; these decisions are made primarily by lower-level managers and employees in an organization.

Nonprogrammed Decisions. Nonprogrammed decisions are unique and have little or no precedent; these decisions are relatively unstructured and generally require a more creative approach on the part of the decision maker than programmed decisions.

Often when dealing with nonprogrammed decisions, the decision maker must develop the procedure to be used.; naturally, these decisions tend to be more difficult to make than programmed decisions.

Nonprogrammed decisions are of two general kinds—organizational and personal.

Organizational decisions relate to the purposes, objectives, and activities of the organization.

Personal decisions are concerned with the manager’s individual goals.

Types of Decisions

Structured problems and programmed decisions

Structured Problem - A discrepancy between what is and what should be that is both routine and predictable.

Programmed Decisions - Decisions that are made routinely, often relying on precedent, in which information can be transferred from one similar situation to the next; usually used to solve structured problems.

Foodservice Organizations, 8e

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Types of Decisions

Unstructured problems and nonprogrammed decisions

Unstructured Problem - A discrepancy between what is and what should be that is new, unusual, and often unpredictable.

Nonprogrammed Decisions - Decisions that are used to resolve unstructured problems; these decisions require much research and thought.

Foodservice Organizations, 8e

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Types of Decisions

Managerial levels and decision making

Type of decision made by a manager correlates with his/her management level

Most nonprogrammed decisions are made by upper-level managers

Foodservice Organizations, 8e

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Decision-Making Styles

1) Problem Avoider

A decision-making style in which the person does not recognize a problem or chooses to avoid it; one who may make the choice not to make a decision.

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Decision-Making Styles

2) Problem Solver

A decision-making style in which the person recognizes existing problems and deals with them in a timely manner.

Reactive - A characteristic of a problem solver who acts on problems after they have become obvious.

3) Problem Seeker

A decision-making style in which the person is proactive and deals with potential problems before they become obvious.

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Decision-Making Styles

Ambiguity versus rationality

Directive Decision Maker - A type of decision maker characterized by being efficient and logical, requiring little information to make a decision, looking at few alternatives, and exhibiting a low tolerance for ambiguity.

Conceptual Decision Maker - A type of decision maker characterized by being open to new ideas, looking at many alternatives, having a high tolerance for ambiguity, and relying on instinct versus logic and reason.

Foodservice Organizations, 8e

Gregoire

Decision-Making Styles

Ambiguity versus rationality

Analytic Decision Maker - A type of decision maker who enjoys solving problems, likes to seek alternatives and information, can tolerate ambiguity, and applies a rational, methodical approach to solve problems.

Behavioral Decision Maker - A type of decision maker who uses intuition, feelings, and perceptions versus actual data, and who dislikes ambiguity.

Foodservice Organizations, 8e

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Individual vs. Group Decision Making

Individual Decision

Combination

Decision

Group

Decision

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When should a decision be made by a group rather than an individual?

Individual-versus-group decision making largely depends on factors such as complexity and importance of the problem, time available, degree of acceptance required, amount of information needed to make a decision, and the usual manner in which decisions are made in an organization.

There are three possibilities for managerial decision making:

Individual decision. Managers can make decisions themselves using information available to them.

Combination decision. Managers can make decisions after consulting with others.

Group decision. Managers can allow decisions to be made by the group, of which the manager is usually a member.

Group decision making, then, is used because managers frequently confront situations in which they must seek information and elicit judgments from other people; this is especially true for nonprogrammed decisions.

Group decision making also may be used when two or more organizational units will be affected by the decisions.

Methods of Group Decision Making

Nominal Groups

Focus Groups

Interacting Groups

Delphi Groups

Group Decision Making

Foodservice Organizations, 8e

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Important decisions are being made in organizations by groups rather than by individuals; croup decision making most often is accomplished within interacting, Delphi, nominal, or focus groups.

Interacting Groups. An interacting group is a decision-making group in which members discuss, argue, and agree upon the best alternative.

Existing groups may be departments, work groups, or standing committees; new groups can be ad hoc committees, work teams, or task forces.

An advantage of this method is that interacting promotes new ideas and understanding.

Delphi Groups. A Delphi group is used for developing a consensus of expert opinion; a panel of experts, who contribute individually, makes predictions about a specific problem.

Their opinions are combined and averaged and then returned to the panel for a second prediction

Members who made unusual predictions may be asked to justify them before sending them to the other members of the panel; when the predictions stabilize, the average prediction represents the decision of the group of experts.

The Delphi method is good for forecasting technological breakthroughs but takes too much time and is too expensive for everyday decision making.

Nominal Groups. The nominal group method is a structured technique for generating creative and innovative alternatives or ideas; members of the group meet together but do not talk freely among themselves like members of interacting groups.

The manager presents the problem to group members and asks them to write down as many alternatives for solutions as possible; they then take turns presenting their ideas, which are recorded on a flip chart.

Members then vote by rank-ordering the various alternatives; he top-ranking alternative represents the decision of the group, which can be accepted or rejected by the manager.

Focus Groups. A focus group is a qualitative information gathering method; tt has been used successfully for many years by large, multiunit chains and independents looking for customer feedback.

The focus group consists of 10 to 20 people brought together for a one-time meeting of about 2 hours to discuss some predetermined aspect of a particular establishment; men and women are selected to participate if they meet certain criteria, such as being a frequent customer in the restaurant or in a competitor’s establishment.

Focus groups examine the motivation behind human behavior and, therefore, examine why people act the way they do, not what they do.

GROUP DECISION MAKING

Interacting Groups: An interacting group is a decision-making group in which members discuss, argue, and agree upon the best alternative.

Existing groups may be departments, work groups, or standing committees; new groups can be ad hoc committees, work teams, or task forces.

An advantage of this method is that interacting promotes new ideas and understanding.

Foodservice Organizations, 8e

Gregoire

GROUP DECISION MAKING

Nominal Groups: The nominal group method is a structured technique for generating creative and innovative alternatives or ideas; members of the group meet together but do not talk freely among themselves like members of interacting groups.

Foodservice Organizations, 8e

Gregoire

Members then vote by rank-ordering the various alternatives; he top-ranking alternative represents the decision of the group, which can be accepted or rejected by the manager

GROUP DECISION MAKING

Delphi Technique - An approach to coming up with a group decision similar to the nominal group technique except that members do not meet but instead communicate and analyze ideas through written communication until consensus is reached.

The Delphi method is good for forecasting technological breakthroughs but takes too much time and is too expensive for everyday decision making

Foodservice Organizations, 8e

Gregoire

GROUP DECISION MAKING

Focus Groups: A focus group is a qualitative information gathering method; it has been used successfully for many years by large, multiunit chains and independents looking for customer feedback.

Focus groups examine the motivation behind human behavior and, therefore, examine why people act the way they do, not what they do.

Foodservice Organizations, 8e

Gregoire

Group Decision Making: Drawbacks

a) Accommodation

A situation in which members of a group feel that they have to accept the position of the dominant member of the group.

b) De Facto Decisions

Decisions that are made passively with no obvious objections expressed.

Foodservice Organizations, 8e

Gregoire

Group Decision Making: Drawbacks

c) Groupthink

A characteristic of groups that evolves when the cohesiveness of the group becomes more important than the problem that needs to be solved.

In this situation, members feel loyal to each other and may not want to jeopardize this unity by expressing opposing opinions.

Foodservice Organizations, 8e

Gregoire