Decision Making Skills

Knowledge, Skills and Attitude

Communication and

Interpersonal Skill

Strategic Knowledge

Procedural Knowledge

In-basket

In-basket is a popularly used device in identifying executive potential in executive assessment centres. It can also be utilized in teaching decision making skills.

Procedures of in-basket technique:

1. Give the trainees a description of their role (a current or future job) and general information about the situation.

2. Then give them a packet of materials (such as requests, complaints, memos, messages, and reports) which make up the in-basket.

**They are asked to respond to the materials supplied within a particular period of time (usually 2 to 4 hours).

3. When the in-basket is completed, the trainer asks the trainee to identify the processes used in responding to the information and to discuss their appropriateness.

4. The trainer then give feedbacks to the trainee

**Trainer must reinforce appropriate decisions and processes and explain some alternatives it to the trainee.

Abilities can be developed encompass

(1) Situational judgment in being able to recall details, establishes priorities, interrelate items, and determine need for more information

(2) Social sensitivity in exhibiting courtesy in written notes, scheduling meetings with involved personnel, and explaining reasons for action taken

(3) Willingness to make decision and take action.

In one variation, the trainee is allowed to place simulated phone calls for more information. If he or she calls the correct person in the organization, more written data on the issue will be provided. Group conference discussions on separate individual handlings of the in-basket can elicit further developmental values.

IN-BASKET TECHNIQUE

Business games

Over the years, a variety of simulations have been developed to portray the operations of the firms, or some component part. These exercises introduce some uncertainty in as much as they are often played on competitive bases. Teams of trainees are formed to meet, discuss, and arrive decisions concerning such subjects as production amount, research and development, inventories, sales, and a myriad of other activities for a simulated firm. Games can be relatively simple permitting rapid decision making to be affected, or extremely complicated, entailing long and detailed analysis of trends in costs, inventories, and sales. Obviously, the requirement that decision be made as a team provides trainee experience in cooperative group processes. The multiple facet of a realistic simulation lead to appreciation of the complex and interlocking nature of business systems, necessitating decisions that require breadth of viewpoint as well as attention to detail.

One general business firm simulation requires seventeen decisions from each team for each round (usually covering a quarter of a year). There are three products differentiated only by price level. For each product, decisions must be made concerning price to be charged, in the next chapter, amount to be produced, cost to be placed in product as a measure of quality, advertising expenditures, and research and development investment. Teams must also determine if the physical planet should be expanded in view of anticipated production and decreasing size caused by depreciation. Conversion of cash into interest- earning securities can also be done if desired. General industrial information is provided that is accurate within 10 per cent, e.g., other competitors’ prices, sales, share of market, etc. Special versions of games are offered and designed for a particular portion of the enterprise, e.g... The marketing analysis training exercise is a refinement of the Carnegie Tech Management Game and concentrates on pricing, advertising, expenditures, sales force size, call time allocation to brands, and retail allowance.

As in the case of the in-basket, playing a business game provides practice in sticking one’s neck out and making decision. Immediate feedback of results demonstrates the relative accuracy of the decision, taking into account the uncertain nature of competitors’ decisions. Interjection of major changes in the environment can give practice in achieving flexibility. Organizational ability, financial acumen, quickness of thinking, and the ability to adapt under stress can also be developed through the use of game simulations.

Business games attempt to reflect

The way an industry, company, or functional area operates

Set of relationships, rules, and principles derived from appropriate theory (e.g., economics, organizational behaviour, etc.)

Business games may represent the total organization (provide a far better understanding of the big picture) or focus on the functional responsibilities of particular positions within an organization (e.g., marketing director, human resource manager).

Business games representing the total organization provide a far better understanding of the big picture. They allow trainees to see how their decisions and actions influence not only their immediate target but also areas that are related to that target.

Functional simulations- focus on the functional responsibilities of particular positions within an organization (e.g., marketing director, human resource manager).

Procedures:

1. Trainer gives trainees the information, describing a situation

2. Trainer discuss the rules for playing the game

3. Trainees then start playing the game, usually being asked to make decisions about the given situation with the certain information.

4. Trainer provides feedback to the trainees about the results of their decisions, and asks them to make another decision.

**This process continues until some predefined state of the organization exists or a specified number of trials have been completed.

For example:

If the focus is on the financial state of a company, the game might end when the company has reached a specified profitability level or when the company must declare bankruptcy.

Business games involve an element of competition, either against other players or against the game itself. In using them, the trainer must be careful to ensure that the learning points are the focus, rather than the competition.

Case Studies

The case method of development utilizes actual case examples collected from various organizations for diagnostic purposes. It is most often used to simulate strategic decision-making situations, rather than the day-to-day decisions that occur in the in-basket.

The trainee must:

(1) Identify the major and minor problems in the case

(2) Filter out the significant facts from the insignificant

(3) Analyse the issues and use logic to fill in the gaps in the facts

(4) Arrive at some means for solving the identifiable problem

Cases in personnel management are presented after each major section in this text.

In ensuring group discussions concerning the case, the trainee will usually see that other candidates differ from him or herself about what is important and what action should be undertaken. One is thus taught tolerance of others viewpoints as well as the difficulty arriving at absolutely correct answers in complex problems. It has been found that some candidates are excellent in analysis and can pursue ramifications endlessly, sometimes to the point of self-immobilization. They clearly see that any decision chosen will have some undesirable dysfunctional consequences. Nevertheless, the instructor must press for some stand to be taken. Decision choice is an inescapable responsibility of a manager.

Procedures:

1. Trainer presents the history of the situation in which a real or imaginary organization finds itself to the trainee. The key elements and problems, as perceived by the organization's key decision makers, maybe provided. Case studies range from a few pages in length to more than a hundred. .

2. Trainer asked trainees to respond to a set of questions or objectives through written or oral form.

**Longer cases require extensive analysis and assessment of the information for its relevance to the decisions made. Some require the trainee to gather information beyond what was in the case.

3. Once individuals (trainees) have arrived at their solutions, they discuss the diagnoses and solutions that have been generated in small groups, large groups, or both.

** In large groups a trainer should facilitate and direct the discussion. The trainer must guide the trainees in examining the possible alternatives and consequences without actually stating what they are.

4. Then, trainer evaluates the oral/written responses provided by the trainees. The trainer should convey that there is no single right or wrong solution to the case, but many possible solutions depending on the assumptions and interpretations made by the trainees.

Value of the case approach

Trainees' application of known concepts and principles

Discovery of new concept

Interpersonal Skills

Traditional managers are likely to emphasize the rational portion of a manager’s task, thereby emphasizing its decision making elements. Behaviourally oriented manager contend that acceptance of the decision is just as important as its quality, thereby emphasizing the necessity for developing interpersonal competence. Management is “getting things done through others”. “Things” to do result from decision processes but getting the “others” to do them willingly and effectively calls for unusual skills in interpersonal or human relations.

Role Playing

Role playing is a simulation in which the trainee is asked to play a part in a problem situation requiring interaction with others. Basic mental sets are stated for all participants, but no dialogue is provided. For example, a supervisor, on the advice of a motion and time study engineer, has decided to change the work methods of subordinates. The supervisor’s role may contain, among other items, such statements as, “ You get along well with your people; this idea of the methods man makes pretty good sense for both the employees and the company; the data provided by the expert are fairly clear”. Roles are also provided for each of the subordinates. One may exhibit great suspicion against the motion and time study expert. Another may be structured as a potential ally of the supervisor in the projected change. Still another may show a fear of working himself or herself out of a job if methods are improved. All will probably reflect the usual human resistance to any change, good or bad. No dialogue is provided, and the trainees attempt to play themselves in the roles as structured. They are not actors. Each will have to respond to the impromptu statements and questions of the other role players.

Role playing is close to a laboratory situation in dealing with people in job situations. Playback of the tape, if recorded, provides opportunities for the trainee to examine his or her performance with the additional insight of participants and experienced observers. Videotapes can be utilized to provide models of behaviour for the trainee. Ensuing role-playing sessions can be directed toward influencing behaviour toward this model. Sorcher and Goldstein report effective use of behaviour models for such interpersonal problem areas as giving recognition to an employee, stimulating, acceptance of proposed changes, conducting a subordinate performance appraisal, persuading an employee to improve performance levels, and inducting a newly hired employee into the organization. Trainees were rewarded for successful role emulation with praise by peers and trainers. It was found that attitude changes on the part of the trainee tended to occur after the modelled behaviour was successfully duplicated. In order to reduce dissonance created by differences between modelled behaviour and previously held managerial beliefs, the trainees moved toward beliefs that were supportive of their newly learned behaviour, e.g., importance of maintaining the subordinates’ esteem by not backing them into a corner and the essentiality of making it clear that you are interested in the employee’s personal success and of not demanding immediate solutions to employee adjustment problems but allowing the employees to assist in working out an accommodation.

Structured Insight

Traditional method of courses, lectures, discussions, conferences, and cases have been found lacking in effecting significant behavioural changes in trainees. Their knowledge is increased, but much is lost in the transition to operational applications. On the other hand, the laboratory approach of sensitivity training usually causes behavioural changes but is quite costly in terms of time, money, and psychological inputs. A third approach has been developed in recent years that strive to attain the personal insight or sensitivity training without many of its costs. Emphasis is placed upon systematic collection of the trainee’s attitudes and assumptions concerning the motives, abilities, and attitudes of others, particularly subordinates. This is followed by a similar questionnaire assessment of preferences in leadership styles, e.g., close authoritative supervision, establishment of good human relations, or a continually expanding degree of subordinate participation and self-direction. In one particular scheme, these assessments are located upon a 9 by 9 “managerial grid,” with concern for people shown on the vertical scale and concern for production on the horizontal. A score of 1 indicates trainee low concern and a score of 9 indicates high concern. Such assessments are then followed by thorough group discussion of the meaning of the measured location of each trainee, usually with the admonition that the group should move to a more balanced position of equal concern for both people and productivity.

Chris Argyris suggests the use of another method that will provide self-insight into leadership practices of top-level executives. Executives are first asked to write descriptions of their espoused theories of leadership, particularly in reference to how they deal with people. Secondly, a tape recording is made of an actual meeting conducted by the executive. In a later gathering of all executives involved in the development program, each is asked to diagnose and describe the actual theory in use or revealed by his or her own tape. In addition, they must do the same for the tape of one other executive in the group. The ensuing discussion involves a comparison of the espoused theory with the theory actually in use as revealed by the two separate tape diagnoses. The goal of this process is to reveal the inevitable difference between stated beliefs and actual behaviour; to reduce dissonance; one must change either the espoused theory or the theory in use. Assuming a desire to change behaviour, a specific program of action is then prepared by each executive. Rather than presenting general resolutions such as “I’ll be less autocratic,” the executive is asked to specifically indicate what will be said and done in probable situations. Three months later, another tape is made of an actual meeting conducted by the subject executive, and this is analysed in a fashion similar to that described above. Any systematic device that furthers understanding of one’s actual behaviour in comparison with preferred behaviour can be labelled “structured insight”.