Decision making. The Nature and purpose of organizing - Basic departmentation

UNIT II       

Decision making. The Nature and purpose of organizing - Basic departmentation - Line /staff Authority and decentralization -Effective Organizing and organizational culture.

DECISION MAKING

The  word  decision  has  been  derived  from  the  Latin  word  "decidere"  which  means"cutting off". Thus, decision involves cutting off of alternatives between those that are desirableand those that are not desirable.

In the words of George R. Terry, "Decision-making is the selection based on some criteria from  two or more possible alternatives".

Characteristics of Decision Making

• Decision  making  implies  that  there  are  various  alternatives  and  the  most  desirable alternative is chosen to solve the problem or to arrive at expected results.

• The decision-maker has freedom to choose an alternative.

• Decision-making may not be completely rational but may be judgemental and emotional.

• Decision-making is goal-oriented.

• Decision-making is a mental or intellectual process becausethe final decision is made by the decision-maker.

• A decision may be expressed in words or may be implied from behaviour.

• Choosing from among the alternative courses of operation implies uncertainty about the final result of each possible course of operation.

• Decision  making  is  rational.  It  is  taken  only  after  a  thorough  analysis  and  reasoning  and weighing the consequences of the various alternatives.

TYPES OF DECISIONS

a) Programmed and Non-Programmed Decisions:

   Herbert Simon has grouped organizational decisions into two categories based on the procedure followed. They are:

i)  Programmed  decisions:

  Programmed  decisions  are  routine  and  repetitive  and  are made within the framework of organizational policies and rules. These policies and rules are  established  well  in  advance  to  solve  recurring  problems  in  the  organization. Programmed decisions have short-run impact. They are, generally, taken at the lower level of management.

ii)  Non-Programmed  Decisions: 

 Non-programmed  decisions  are  decisions  taken  to meet  non-repetitive  problems.  Non-programmed  decisions  are  relevant  for  solving unique/ unusual problems in which various alternatives cannot be decided in advance. A  common feature of non-programmed decisions is that they  are novel and non-recurring 

and therefore, readymade solutions are not available.Since these decisions are of high importance and have long-term consequences, they are made by top level management. 

b)  Strategic  and  Tactical  Decisions:  

Organizational  decisions  may  also  be  classified  as strategic or tactical. 

i) Strategic Decisions: 

Basic decisions or strategic decisions are decisions which are ofcrucial importance. Strategic decisions a major choice of actions concerning allocation of resources  and  contribution  to  the  achievement  of  organizational  objectives.  Decisions like  plant  location,  product  diversification,  entering  into  new  markets,  selection  of channels  of  distribution,  capital  expenditure  etc  are  examples  of  basic  or  strategic decisions. 

ii) Tactical Decisions:  Routine decisions or tactical decisions are decisions which are routine and repetitive. They are derived out of strategic decisions. The various features of a tactical decision are as follows: 

• Tactical decision relates to day-to-day operation of the organization and has to be taken very frequently. 

• Tactical  decision  is  mostly  a  programmed  one.  Therefore,  the decision can  be made within the context of these variables. 

• The outcome of tactical decision is of short-term nature and affects a narrow part of the organization. 

• The  authority  for  making  tactical  decisions  can  be  delegated  to  lower  level managers because: first, the impact of tactical decision  is narrow and of shortterm nature and Second, by delegating authority for such decisions to lower-level managers,  higher  level  managers  are  free  to  devote  more  time  on  strategic decisions. 

DECISION MAKING PROCESS

The decision making process is presented in the figure below:

1. Specific Objective:

The need for decision making arises in order to achievecertain specific objectives. The starting point in any analysis of decision making involves the determination of whether a decision needs to be made.

2. Problem Identification: 

A problem is a felt need, a question which needs a solution. In the words  of  Joseph  L  Massie  "A  good  decision  is  dependent  upon the  recognition  of  the  right

problem".  The  objective  of  problem  identification  is  that  if  the  problem  is  precisely  and specifically  identifies,  it  will  provide  a  clue  in  finding  a  possible  solution.  A  problem  can  be identified clearly, if managers go through diagnosis and analysis of the problem.

Diagnosis:  Diagnosis  is  the  process  of  identifying  a  problem  from  its  signs  and

symptoms. A symptom is a condition or set of conditions that indicates the existence of a problem.  Diagnosing  the  real  problem  implies  knowing  the  gap  between  what  is  and what ought to be, identifying the reasons for the gap and understanding the problem in relation to higher objectives of the organization.

Analysis: Diagnosis gives rise to analysis. Analysis of a problem requires:

• Who would make decision?

• What information would be needed?

• From where the information is available?

Analysis helps managers to gain an insight into the problem.

3.  Search for Alternatives: 
A problem can be solved in several ways; however, all the ways cannot  be  equally  satisfying.  Therefore,  the  decision  maker  must  try  to  find  out  the  various alternatives available in order to get the most satisfactory result of a decision. A decision maker can use several sources for identifying alternatives:

• His own past experiences

• Practices followed by others and

• Using creative techniques.

4.  Evaluation of Alternatives: 
After the various alternatives are identified, the next step is to evaluate them and select the one that will meet the choice criteria. /the decision maker must check  proposed  alternatives  against  limits,  and  if  an  alternative  does  not  meet  them,  he  can discard  it.  Having  narrowed  down  the  alternatives  which require  serious  consideration,  the decision maker will go for evaluating how each alternative may contribute towards the objective supposed to be achieved by implementing the decision.

5.  Choice of Alternative:
The evaluation of various alternatives presents a clear  picture as to how  each  one  of  them  contribute  to  the  objectives  under  question.  A  comparison  is  made among the likely outcomes of various alternatives and the best one is chosen.

6.  Action: 
Once the alternative is selected, it is put into action. The actual process of decision making ends with the choice of an alternative throughwhich the objectives can be achieved.

7.  Results: 
 When the decision is put into action, it brings certain results. These results must correspond  with  objectives,  the  starting  point  of  decision  process,  if  good  decision  has  been made and implemented properly. Thus, results provide indication whether decision making and its implementation is proper.

Characteristics of Effective Decisions

An  effective  decision  is  one  which  should  contain  three  aspects.  These  aspects  are  given below:

•  Action  Orientation:  Decisions  are  action-oriented  and  are  directed  towards  relevant  and controllable  aspects  of  the  environment.  Decisions  should  ultimately  find  their  utility  in implementation.

•  Goal Direction: Decision making should be goal-directed to enable the organization to meet its objectives.

•  Effective  in  Implementation:  Decision  making  should  take  into  account  all  the  possible factors not only in terms of external context but also  in internal context so that a decision can be implemented properly.

RATIONAL DECISION MAKING MODEL

The Rational Decision Making Model is a model which emerges from Organizational Behavior.The  process  is  one  that  is  logical  and  follows  the  orderly  path  from  problem  identification through solution. It provides a structured and sequenced approach to decision making. Using such  an  approach  can  help  to  ensure  discipline  and  consistency  is  built  into  your  decision making process.

The Six-Step Rational Decision-Making Model

1.  Define the problem.

2.  Identify decision criteria

3.  Weight the criteria

4.  Generate alternatives

5.  Rate each alternative on each criterion

6.  Compute the optimal decision

1) Defining the problem

This is the initial step of the rational decision makingprocess. First the problem is identied and then defined to get a clear view of the situation.

2) Identify decision criteria 

Once a decision maker has defined the problem, he or sheneeds to identify the decision criteria that  will  be  important  in  solving  the  problem.  In  this  step,  the  decision  maker  is  determining what’s relevant in making the decision. This  step  brings  the  decision  maker’s  interests,  values,  and  personal  preferences  into  the process.

Identifying criteria is important because what one person thinks is relevant, another may not. Also keep in mind that any factors not identified inthis step are considered as irrelevant to the decision maker.

3) Weight the criteria 

The decision-maker weights the previously identified criteria in order to give them correct priority in the decision.

4) Generate alternatives

 The  decision  maker  generates  possible  alternatives  that  could  succeed  in  resolving  the problem. No attempt is made in this step to appraise these alternatives, only to list them.

5) Rate each alternativeon each criterion

 The decision maker must critically analyze and evaluate each one. The strengths and weakness of each alternative become evident as they compared with the criteria and weights established in second and third steps.

6) Compute the optimal decision Evaluating each alternative against the weighted criteria and selecting the alternative with the highest total score.

                           Nature and Purpose of Organizing                             

DEFINITION

According  to  Koontz  and  O'Donnell,  "Organization  involves  the  grouping  of  activities necessary  to  accomplish  goals  and  plans,  the  assignment  of  these  activities  to  appropriate departments and the provision of authority, delegation and co-ordination."

Organization  involves  division  of  work  among  people  whose  efforts  must  be  co-ordinated  to achieve specific objectives and to implement pre-determined strategies.

NATURE OR CHARACTERISTICS OF ORGANIZING

From the study of the various definitions given by different management experts we get the following information about the characteristics ornature of organization, 

(1) Division of Work:
Division of work is the basis of an organization. In other words, there can be no organization without division of work. Under division of work the entire work of business is divided into many departments .The work of every department is further sub-divided into subworks. In this way each individual has to do the saran work repeatedly which gradually makes that person an expert.

(2) Coordination:
Under organizing different persons are assigned different works but the aim of all these persons happens to be the some - the attainment of the objectives of the enterprise. Organization  ensures  that  the  work  of  all  the  persons  depends  on  each  other’s  work  even

though it happens to be different. The work of one person starts from where the work of another person  ends.  The  non-completion  of  the  work  of  one  person  affects  the  work  of  everybody. Therefore, everybody completes his work in time and does not hinder the work of others. It is

thus, clear that it is in the nature of an organization to establish coordination among different works, departments and posts in the enterprise.

(3)  Plurality  of  Persons:  Organization  is  a group  of many  persons  who  assemble  to  fulfill  a common purpose. A single individual cannot create an organization.

(4) Common Objectives:There are various parts of an organization with different functions to perform but all move in the direction of achieving a general objective.

(5)  Well-defined  Authority  and  Responsibility:
Under  organization  a  chain  is  established between different posts right from the top to the bottom. It is clearly specified as to what will be the  authority  and  responsibility  of  every  post.  In  other  words,  every  individual  working  in  the organization is given some authority for the efficientwork performance and it is also decided simultaneously as to what will be the responsibility of  that individual in case of unsatisfactory work  erformance.

(6)  Organization  is  a  Structure  of  Relationship:
Relationship  between  persons  working  on different posts in the organization is decided. In other words, it is decided as to who will be the superior and who will be the subordinate. Leaving thetop level post and the lowest level post everybody is somebody's superior and somebody's subordinate. The person working on the top level post has no superior and the person working on the lowest level post has no subordinate.

(7) Organization is a Machine of Management:
Organization is  onsidered to be a machine of management because the efficiency of all the functions depends on an effective organization. In the absence of organization no function can be performed in a planned manner. It is appropriate to call organization a machine of management from another point of view. It is that machine in which no part can afford tube ill-fitting or non-functional. In other words, if the division of work is  not  done  properly  or  posts  are  not  created  correctly  the  whole  system  of  management collapses.

(8) Organization is a Universal Process:
Organization is needed both in business and nonbusiness organizations. Not only this, organization willbe needed where two or mom than two people work jointly. Therefore, organization has thequality of universality. 

(9) Organization is a Dynamic Process: 
Organization is related to people and the knowledge and experience of the people  undergo  a  change.  The  impact  of  this  change  affects  the  various  functions  of  the organizations. Thus, organization is not a process that can be decided for all times to come but it undergoes changes according to the needs. The examplein this case can be the creation or abolition of a new post according to the need.

ORGANIZING PROCESS

Organization  is  the  process  of  establishing  relationship  among  the  members  of  the enterprise. The relationships are created in terms of authority and responsibility. To organize is to  harmonize,  coordinate  or  arrange  in  a  logical  and  orderly  manner.  Each  member  in  the

organization  is  assigned  a  specific  responsibility  or  duty  to  perform  and  is  granted  the corresponding authority to perform his duty. The managerial function of organizing consists in making  a  rational  division  of  work  into  groups  of  activities  and  tying  together  the  positions

representing  grouping  of  activities  so  as  to  achieve  a  rational,  well  coordinated  and  orderly structure  for  the  accomplishment  of  work.  According  to  Louis  A  Allen,  "Organizing  involves identification  and  grouping  the  activities  to  be  performed  and  dividing  them  among  the

individuals  and  creating  authority  and  responsibility  relationships  among  them  for  the accomplishment of organizational objectives." The various steps involved in this process are:

    Basic departmentation - Line /staff Authority and decentralization      

Authority and Power

Without authority - the power to exercise discretion in making decisions and using resources, managers   cannot achieve the goals or targets assigned to them. What kind of authority is provided in the organization 

structure to each manager and employee is an important issue to be determined in the organization activity.It will be useful to distinguish between authority and power. Power is a much broader concept than authority.  Power is the ability of individuals or groups to induce or influence the beliefs or actions of other persons or groups. Authority is a concept used in organizations or theory of organizations to refer to the right 

in a position (and, through it, the right of the person occupying the position) to exercise discretion to making decisions relating to the group of people and activities they are asked to do.

Line authority gives a superior a line of authority over a subordinate.

Staff relationship is advisory. The function of person in a staff role is to investigate, research, and give advice to his line manager. 

Line and staff are characterized by relationships and not by departmental activities (K & D)

Today staff advice is far more critical. Operating managers are now faced with making decisions that require expert knowledge in economic, technical, political, legal and social areas.

Completed Staff Work

The recommendations of staff work should be complete. Completed staff work implies the presentation of a clear recommendation based upon full consdieration of a problem, clearance or discussions with persons importantly affected, suggestions about avoiding difficulties involved, and often preparation of the paper work - job descriptions, specifications and related directives- so that the managers can consider the proposal with less effort and if accepted the proposal can be put into effect. Many time-consuming conferences could be avoided or materially shortened if staff work were truly complete.

Staff Specialists -

 Giving and Taking CreditStaff specialist must remember that the operating manager who accepts the idea actually bears 

responsibility for making it a success and is also responsible for solving the problems or difficulties or the confusion that appears during implementation. Hence a staff specialist cannot claim all the credit for himself for any implemented idea. But the staff must sell and keep selling itself to other executives. Staff is selling its service and also the persons engaged in it apart from the idea. The selling of an idea by staff does not 

mean that a manager automatically buys the idea. It is important for the manager responsible for a decision understand the disadvantages as well as advantages of the course of action proposed and then only take the decision.

The staff specialist must, through precept and example, convince his line colleagues that his prime interest is their welfare, and he must deprecate his own contributions while embellishing theirs.

Functional Authority

Functional authority is the right delegated to an individual or a department to control specified processes, practices, policies, or other matters relating to activities undertaken by persons in other departments.  It is delegated by a common superior of line managers to a staff specialist or a specific line manager. This is to take care of specialized knowledge, or to avoid diverse interpretations of policies.

     Effective Organizing and Organizational Culture - Review Notes    

Some mistakes in organizing

Failure to plan properly

Failure to clarify relationships

Failure to delegate authority

Failure to balance delegation

Confusion of lines of authority with lines of communication

Granting authority without exacting responsibility

Responsibility without authority

Careless application of the Staff Device

Misuse of Functional Authority

Multiple Subordination

Misuse of Service Departments

Over Organization 

Organization is a network of decision, communication and activity centers for coordinating efforts towardgroup and enterprise goals. To work effectively, an 

organization structure must be be understood and principles of making organizations work must be put into practice

Design of Effective Organizations

Design of Effective Organization depends on the objectives and goals of the organization. 

Developing the Ideal Organization

Modification for the Human Factor

A plan of ideal organization will help in maintaining the actual organization whenever changes occur in personnel.

Avoiding Organizational Inflexibility

Signs of inflexibility

Reasons for reorganization

Need for Readjustment and Change

Organizations should continuously change in response to changes in customer needs and wants. An

organization should not be allowed to become inflexible.

 Avoiding Conflict by Clarification

 Organization Charts

Position Descriptions

Need to Define Relationships

Goal Definition

Assuring Understanding of Organizing

Teaching the Nature of Organizing Many organization plans fail because organization members do not understand them. The description of the

organization plan in terms of organizational philosophy, programs, organization chart and an outline of job descriptions all help in making people 

understand it. In addition managers have to explain and teach the

members through individual coaching, staff help or special meetings etc.

Recognizing the Importance of Informal Organization

Promoting An Appropriate Organization Culture

Culture is the general pattern of behavior, shared beliefs, and values that members have in common. Value can be defined as a fairly permanent belief about 

what is appropriate and what is not that guides the actions

and behavior of employees in fulfilling the organization's aims. Values can be thought of as forming as ideology that permeates everyday decisions.

Changing a culture may take a long time, up to five to ten years. It demands changing values, symbols, myths and behavior. It may require, first 

understanding the old culture, then identifying a subculture in the

organization that is appropriate and rewarding those living this appropriate culture. In other words, the newculture one wishes to bring in starts as a 

subculture. Espoused values need to be reinforced through rewards and incentives, ceremonials, stories, and symbolic actions.

UNIT IV      

Managing and the Human factor -Motivation -Leadership -communication.

What we mean by human factors 

Reducing error and influencing behaviour (HSG48) is the key document inunderstanding HSE’s approach to human factors. It gives a simple introduction to generic industry guidance on humanfactors, whichit defines as:

‘Human factors refer to environmental, organisational and job factors, and human and individual characteristics, which influence behaviour at work in a way which can affect health and safety’

This definitionincludesthree interrelatedaspects thatmust be considered: thejob, the individual and the organisation: 

•  The job: including areas  such as the natureofthe task,  workload, the working environment,the design of displaysand controls, and the roleof procedures. Tasks  should be designed in accordance with ergonomicprinciplestotake account of both  human limitations and strengths. Thisincludesmatching the job to the physical and the mental strengths and limitations of people.  Mentalaspects would include perceptual,  attentional and decision makingrequirements.

The individual: includinghis/her 

competence,skills,personality,

attitude, and risk  perception. 

Individual characteristics  influence

behaviour incomplex ways. Some

characteristics such as  personality

are fixed; others such as skills and 

attitudes may be  changed or

enhanced. 

•  The organisation: including  work 

patterns, the culture of the workplace,

resources,communications,

leadership and so on. Such factors 

are often overlookedduring  the

design of jobsbut have asignificant 

influence onindividual  and group

MOTIVATION 

"Motivation" is a Latin word, meaning "to move". Human motives are internalized goals within individuals. Motivation may be defined as those forces that cause people to behave in certainways.  Motivation encompasses  all  those  pressures  and  influences  that  trigger,  channel,  and sustain human behavior. Most successful managers have learned to understand the concept of human  motivation  and  are  able  to  use  that  understanding  to  achieve  higher  standards  of subordinate work performance. 

According to Koontz and O'Donnell, "Motivation is a class of drives, needs, wishes and similar forces". 

LEADERSHIP

Definition 

Leadership is defined as influence, the art or process of  influencing people so that they will strive willingly and enthusiastically toward the achievement of group goals. 

- Leaders act to help a group attain objectives through the maximum application of its capabilities. 

- Leaders  must  instill  values  –  whether  it  be  concern  for  quality,  honesty  and calculated risk taking or for employees and customers. 

Importance of Leadership 

1.  Aid to authority 

2.  Motive power to group efforts 

3.  Basis for co operation 

4.  Integration of Formal and Informal Organization.

LEADERSHIP STYLES 

The leadership style we will discuss here are: 

a)  Autocratic style 

b)  Democratic Style 

c)  Laissez Faire Style 

a)  Autocratic style 

Manager retains as much power and decision-making authority as possible. The manager does not consult employees, nor are they allowed to give any input. Employees are expected to obey orders without receiving any explanations. The motivation environment is produced by creating 

a structured set of rewards and punishments. Autocratic leadership is a classical leadership style with the following characteristics: 

• Manager seeks to make as many decisions as possible 

• Manager seeks to have the most authority and controlin decision making 

• Manager seeks to retain responsibility rather than utilize complete delegation 

• Consultation  with  other  colleagues  in  minimal  and  decision  making  becomes   a  solitary process 

• Managers are less concerned with investing their own leadership development, and prefer to simply work on the task at hand. 

Advantages 

Reduced stress due to increased control 

A more productive group ‘while the leader is watching’ 

Improved logistics of operations 

Faster decision making 

Disadvantages 

Short-termistic approach to management. 

Manager perceived as having poor leadership skills 

Increased workload for the manager 

People dislike being ordered around 

Teams become dependent upon their leader 

b) Democratic Style 

Democratic Leadership is the leadership style that promotes the sharing of responsibility, the exercise of delegation and continual consultation. 

The style has the following characteristics: 

• Manager seeks consultation on all major issues and decisions. 

• Manager  effectively  delegate  tasks  to  subordinates  and  give  them  full  control  and responsibility for those tasks. 

• Manager welcomes feedback on the results of intiatives and the work environment. 

• Manager encourages others to become leaders and be involved in leadership development. 

Advantages 

Positive work environment 

Successful initiatives 

Creative thinking 

Reduction of friction and office politics 

Reduced employee turnover 

Disadvantages 

Takes long time to take decisions 

Danger of pseudo participation 

Like the other styles, the democratic style is not always appropriate. It is most successful when used with highly skilled or experienced employees or when implementing operational changes or resolving individual or group problems. 

c) Laissez-Faire Style 

This  French  phrase  means  “leave  it  be”  and  is  used to  describe  a  leader  who  leaves 

his/her colleagues to get on with their work. The styleis largely a "hands off" view that tends to 

minimize the amount of direction and face time required. 

Advantages 

• No work for the leader 

• Frustration may force others into leadership roles 

• Allows the visionary worker the opportunity to do what they want, free from interference 

• Empowers the group 

Disadvantages 

It makes employees feel insecure at the unavailabilityof a manager. 

The manager cannot provide regular feedback to let employees know how well they are doing. 

Managers are unable to thank employees for their goodwork. 

The manager doesn’t understand his or her responsibilities and is hoping the employees can cover for him or her.

Communication:-

DEFINITION 

According  to  Koontz  and  O'Donnell,  "Communication,  is  an  intercourse  by  words,  letters symbols  or  messages,  and  is  a  way  that  the  organization  members  shares  meaning  and understanding with another". 

THE COMMUNICATION PROCESS

Communication  is  important  in  building  and  sustaining  human  relationships  at  work. 

Communication can be thought of as a process or flow. Before communication can take place, a purpose, expressed as a message to be conveyed is needed. It passes between the sender and the receiver. The result is transference of meaning from one person to another. 

The figure below depicts the communication process. This model is made up of seven parts: 

(1)  Source,  (2)  Encoding,  (3)  Message,  (4)  Channel,  (5)  Decoding,  (6)  Receiver,  and  (7) Feedback. 

a) Source: 

The source initiates a message. This is the origin of thecommunication and can be an individual,  group  or  inanimate  object.  The  effectiveness  of  a  communication  depends  to  a considerable  degree  on  the  characteristics  of  the  source.  The  person  who  initiates  the communication process is known as sender, source or communicator. In an organization, the 

sender will be a person who has a need or desire to senda message to others. The sender has some  information  which  he  wants  to  communicate  to  some  other  person  to  achieve  some purpose. By initiating the message, the sender attempts  to achieve understanding and change in the behaviour of the receiver. 

b) Encoding: 

Once the source has decided what message to communicate, the content of the message must be put in a form the receiver can understand. As the background for encoding information, the sender  uses  his  or  her  own  frame  of  reference.  It  includes  the  individual's  view  of  the 

organization  or  situation  as  a  function  of  personal  education,  interpersonal  relationships, attitudes, knowledge and experience. Three conditions  are necessary for successful encoding the message. 

•  Skill: Successful communicating depends on the skill you posses. without the requisite skills, the message of the communicator will not reach the requisite skills; the message of  the  communicator  will  not  reach  the  receiver  in  the  desired  form.  One's  total communicative success includes speaking, reading, listening and reasoning skills. 

•  Attitudes: 

 Our  attitudes  influence  our  behaviour.  We  hold  predisposed  ideas  on  a number of topics and our communications are affected bythese attitudes. 

•  Knowledge:  

We cannot communicate what we don't know. The amount of knowledge the  source  holds  about his  or  her  subject  will  affect  the  message  he  or  she  seeks  to transfer. 

c) The Message: 

The message is the actual physical product from the source  encoding. The message contains the thoughts and feelings that the communicator intends to evoke in the receiver. The message has two primary components:- 

•  The Content: The thought or conceptual component of the message is contained in the words, ideas, symbols and concepts chosen to relay the message. 

•  The  Affect:  The  feeling  or  emotional  component  of  the  message  is  contained  in  the intensity, force, demeanour (conduct or behaviour), and sometimes the gestures of the communicator. 

d) The Channel: 

The actual means by which the message is transmitted to the receiver (Visual, auditory, written or some combination of these three) is called the channel. The channel is the medium through which  the  message  travels.  The  channel  is  the  observable  carrier  of  the  message. Communication in which the sender's voice is used as the channel is called oral communication. 

When the channel involves written language, the senderis using written communication. The sender's  choice  of  a  channel  conveys  additional  information  beyond  that  contained  in  the message itself. For example, documenting an employee's poor performance in writing conveys that the manager has taken the problem seriously. 

f) Decoding: 

Decoding means interpreting what the message means. Theextent to which the decoding by the receiver depends heavily on the individual characteristics of the sender and receiver. The greater the similarity in the background or status factors of the communicators, the greater the 

probability  that  a  message  will  be  perceived  accurately.  Most  messages  can  be  decoded  in more than one way. Receiving and decoding a message area type of perception. The decoding process is therefore subject to the perception biases. 

g) The Receiver: 

The receiver is the object to whom the message is directed. Receiving the message means one or more of the receiver's senses register the message - for example, hearing the sound of a supplier's voice over the telephone or seeing the boss give a thumbs-up signal. Like the sender, 

the  receiver  is  subject to  many  influences  that can  affect  the  understanding  of  the  message. Most important, the receiver will perceive a communication in a manner that is consistent with previous experiences. Communications that are not consistent with expectations is likely to be 

rejected. 

h) Feedback: 

The  final  link  in  the  communication  process  is  a  feedback loop.  Feedback,  in  effect,  is communication travelling in the opposite direction. If  the sender pays attention to the feedback 

and  interprets  it  accurately,  the  feedback  can  help  the sender  learn  whether  the  original communication  was  decoded  accurately.  Without  feedback,  one-way  communication  occurs between managers and their employees. Faced with differences in their power, lack of time, and 

a desire to save face by not passing on negative information, employees may be discouraged from providing the necessary feedback to their managers