© 2006 Thomson-Wadsworth© 2006 Thomson-Wadsworth.docx

© 2006 Thomson-Wadsworth
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1) Professional
2) Supervisory
3) Skilled workers
4) Unskilled workers
Not mutually exclusive
1)Professional staff
Professionals - Individuals who have extensive formal education
in a field and have acquired the knowledge and skills to make
independent judgments and to function in that field with
minimum supervision.
Entry Level - A beginning position in a profession.
ex: an entry-level dietitian
Basic skills in Food Service Systems, General Nutrition. Able to
work as a generalist dietitian.

*
Professional staff
Specialization - The process of acquiring in-depth knowledge
and skills in a narrow area of a profession.
Managers well honed in mgt skills will have some “practice
skills” lost.
Generally, professionals are assumed to prefer participative
management.
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A management style that encourages participation or consensus
management; may be very effective when dealing with
professional staff.Autocratic management style may create
discontent among professional employees.
2) Supervisory personnel
Supervisors - Individuals with authority to oversee and direct
the work of subordinates as well as having responsibility for
their own work.
Often a supervisor is a frontline manager.

The level of authority of each supervisor should be sufficient to
allow for the fulfillment of the assigned task.
Should be allowed to perform a new task several times before
being given full responsibility and supported during transitional
period.
On-the job training is essential for supervisor.
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3) Skilled Workers
Individuals who have special training or skills to perform a
specific job.
ex: cooks, secretaries, exterminators
Usually do not need micromanagement.
Micromanagement - The act of providing intensive supervision
to subordinates by constantly checking and verifying their
progress.
Learns skills through on-the-job training or participating in
technical skill training in a formalized setting.
Adept at “how to” of the task but no knowledge base to address
“why” of the job
Does not require a degree nor credentialing.

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4) Unskilled Workers
Employees who bring no marketable skills to the job and are
trained in the workplace to perform the required tasks.
ex: receptionists, cashiers, foodservice workers
Not always appropriate to use participative management (view
their role as being followers, not leaders).
Can contribute to the management process by providing
information and ideas without participating in the DM process.
DM process – Data Mining
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1)Full-time
Full-Time Employee - An individual who is designated to work

a certain number of hours a week that is considered “full time”
by the employer (typically 40 hours/week).
Flextime: alternate schedules to accommodate needs of
employer or employees.
2)Part-time
Part-Time Employee - An individual who works a certain
number of hours a week that is less than what is considered
“full time” by the employer (usually less than 40 hours/week).
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3) Short-hour
Short-Hour Employee - An individual who works a
predetermined number of hours a week that is less than half
time (typically less than 20 hours a week).
Not entitled to benefits such as health insurance or retirement
programs. “Pay in lieu of benefits”.
4) Casual
Casual Employee - A worker who is not guaranteed any set
number of hours each week but who is scheduled for work as
needed.
On call employees.
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5) Probationary Employee - A newly hired employee who has
not yet demonstrated that he can successfully perform the job
for which he was hired.
The employee is given a set period of time, often 60 or 90 days,
to learn the job.
Probation
Without Cause - The case in which a probationary employee
may be dismissed for whatever reason the manager feels is
appropriate.
Cause - A documented, legitimate reason for terminating a
nonprobationary employee.
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6) Temporary
Temporary Workers - Employees who are hired for a finite
period of time, as for a project, to cover a leave of absence, or
when there is a transient need for more employees.
May or may not be placed on payroll.
Temp employment agency: secretaries, dietitians, computer
engineers.
Expensive but offset by time and financial costs of hiring and
training a new employee.

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7) Contract
Contract Employee - A worker who is usually hired to complete
a project and who is typically not on the employer’s payroll.
Consultant Fee - A designated amount of remuneration for a
contract employee; the fee may be established for the project or
as a monthly or hourly rate for the duration of the project.
Provide own benefits and pay taxes on consultant fees.
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The hourly worker
Hourly Worker - An employee who is paid a set rate for each
hour worked, which is at least the minimum wage set by the
government.
Base Rate - The hourly rate of pay for workers who are paid by
the hour.
Employers keep track of time through timesheets or time clocks.
Not guaranteed a minimum salary every pay period.
*
Differential wages

Differential Wage Rates – are a method to reimburse hourly
workers for work that is performed either outside of normal
work hours or extraordinary types of work.
Examples:
additional pay for working overtime (time-and-a half for over 8
hours in a day).
for performing exceptionally difficult work,
or for working in a different job,
or the additional payment made to employees who do not
receive benefits.
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*
*

Differential wages
ex: time-and-a-half for overtime hours
$8.00 x 40 hours = $320.00 (base salary for week)
$8.00 x 150% = $12.00 per hour (overtime rate)
$12.00 x 8 hours = $96.00 (overtime pay)
$320.00 + $96.00 = $416.00 (gross pay for week)
*
*
The salaried employee
Salaried Worker - An employee who has a set (usually annual)
salary and who is expected to work until the job is completed.
Burnout - A physical consequence of stress in the workplace
that can result from working long hours, or being tired,
dissatisfied, or angry with the work or work setting.
Attrition - Loss of employees because the employees voluntarily
choose to leave their jobs.

*
Full-Time Equivalent (FTE) - A standard term used to describe
the number of full-time positions worked by all employees,
including full-time, part-time, short-hour, and casual.The
number of FTE’s employees managed measures a manager’s
span of control.One FTE is usually equal to 40 hours per week
or 2,080 hours per year.
*
ex: 38 employees working different shifts = 28.2 FTEs
20 employees x 40 hours = 800 hours
800 + 200 + 128 = 1,128 hours per week
1,128/40 = 28.2 FTEs
*
FTEs can be used to
Determine number of workers needed
Monitor productivity
Monitor effects of changes
Used to compare the management responsibility of a manager

who directs activities of regular, full career employees with
those who manage part-time and short hour employees
Integral part of the budgeting process
Useful tool for monitoring of the workforce and to measure job
performance, determine staffing needs, and manage labor costs.
*
ex: productivity = FTEs compared to work output
Diet clerks: two 8-hour shifts and one 4-hour shift per day
20 hours x 7 days/40 hours = 3.5 FTEs
300 patients x 7 days = 2,100 patient days
2,100/3.5 = 600 patient days per FTE
*
ex: staffing needs for increased caseload (1,200 to 1,440)
1,200 clients/2.5 FTEs = 480 clients per FTE
1,440 clients – 1,200 clients = 240 new clients
240 new clients/480 clients = ½ FTE (0.5)
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Diversity
In the workplace, this refers to ethnic, racial, gender, age, and
other differences among workers.
*
Diversity defined
Culturally Diverse Organization - An organization that has a
workforce representative of many different cultural groups.
Multicultural Organization - An organization that values,
encourages, and affirms diverse cultural modes, in which each
point of view is valid and different cultures contribute to
decision making.
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In order to understand and manage diversity, its important to
understand the changes occurring in the population at
large.Changing demographics and legislative initiatives
Gender 1994 46% workers were women, 2005 48%, 2020 half of
the workforce.
Jobs more flexible, access to services such as telecommuting,
job sharing. Day care. Family leave, adjustable benefits package

*
Projections from workplace 2020 show that older Americans
will keep working longer than they have in the past.
Improved health and wellbeing, increased age of Social Security
and Medicare Benefits.
Special needs: Better lighting, bigger print, equipment that
requires less dexterity and less strength to operate.
Help organizations react more appropriately to customers who
are also aging.
Workforce data is available through: U.S. Department of Labor
at www.dol.gov and Bureau of Labor Statistics at www.bls.gov
*
Both racial and ethnic minorities are changing1994, 77% of
workplace were White non-Hispanic.Growth groups will be
Asians and HispanicsOrganizations will have to be sensitive to
their needs. Represent an associated market potential.Inclusion
of diverse viewpoints influences business’ ability to respond to
external market forces.

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Differences in physical ability
Americans with Disabilities Act - A federal law that enables
people with different physical abilities to enter the mainstream
with greater ease by mandating that organizations and
businesses provide the appropriate accommodation (for
example, accessible lavatories, parking, and so on) for all.
www.ada.gov
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Pursuing an inclusive culture
Creating a supportive culture
Valuing individuals and their needs and contributions
Encouraging the continued development of a diverse workforce
The workforce is becoming more diverse as increased numbers
of minority groups, females, and older individuals are
employed.Managing this diverse workforce involves
maximizing diversity’s potential benefits (greater cultural
awareness, broader language skills, etc.) while minimizing the
potential barriers (such as prejudices and bias) that can impact
company performance.
Diversity is defined as the differences in demographic
characteristics among individuals such as age, sex, race,
religion, culture, national origin, and lifestyle.

Because of the diversity, employees think, learn, act, and
communicate differently.
According to Mondy (2008), effective diversity management
involves:Pursuing an inclusive cultureCreating a supportive
cultureValuing individuals and their needs and
contributionsEncouraging the continued development of a
diverse workforce
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Equal opportunity/affirmative action
Equal Opportunity - A federal law that prohibits discrimination
against certain groups, such as women or minorities, in the
workforce.
U.S. Equal Employment Opportunity Commission at
www.eeoc.gov
Affirmative Action - A federal law that requires giving hiring
preference to previously disenfranchised workers.
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Benefits of diversity
Larger worker pool with diverse experiences to develop
products and services for the diverse markets.
Increases diversity of customers as it is responsive to the
greater community in which it operates.
Creates beneficial environment for workers
Increased ability to satisfy diverse customers

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Drawbacks of diversity
Xenophobia (fear of strangers or foreigners)
Sabotage by employees who feel threatened, “our workplace”. It
takes time, energy and money to implement a program that
helps workers to overcome their biases.
Loss of employees who are resistant to change.Goals of
diversity in the workplace
The goal of diversity in the workplace is to provide a work
environment in which everyone is a contributing member of the
organization. Each individual is treated equally and fairly and
in a manner that is sensitive to a person’s uniqueness.
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Compliance versus commitmentDiversity training: Awareness
leads to tolerance, encompasses sensitivity training
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COMMUNICATION
Chapter 11

Foodservice Organizations, 8e
Gregoire
© 2013 by Pearson Higher Education, Inc
Upper Saddle River, New Jersey 07458 • All Rights Reserved
Communication Process
Gregoire
The process of communication starts when the sender wants to
transmit information to the receiver.
The sender has a message, an idea, a fact, or some other
information to transmit to someone or some group.
This idea may have simple or complex meaning to the sender.
Meaning is an abstract concept that is highly personal.
The sender must encode the information to be transmitted into a
series of symbols or gestures.
The encoding process is influenced by the content of the
message and the familiarity of the sender and receiver.
After the message is encoded, it is transmitted through the
appropriate channel.
Channels in an organization include meetings, face-to-face
discussions, memos, letters, e-mails, reports, and telephone
calls.
Noise refers to all the types of interference that may distort or
compete with the message during its transmission.
Examples of noise are the inability to hear the sender, who is
speaking too softly, distortion of the message by extraneous

sounds, and inattention of the receiver.
Communication may be one-way or two-way.
In one-way communication, the sender communicates without
expecting or getting feedback from the receiver; one-way
communication takes considerably less time than two-way
communication, but it is less accurate.
Two-way communication exists when feedback is provided by
the receiver; feedback enhances the effectiveness of the
communication process and helps to ensure that the intended
message is received by allowing the receiver to clarify the
message and permitting the sender to refine the communication.
2
Communication
Sender - The person who creates and transmits a message to
another person or people.
Encode - Create a message and determine how it is to be sent.
Transmit - Send a message to one or more people (for example,
in person, in print, or by using technologies like faxes, modems,
phones, and so on).
Receiver - The person who gets the message from the sender.
Decode - Decipher the message that was received.
Interpret - Assign meaning to the message based on personal
experiences
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3
Communication

Listening/hearing
Hearing - A physical sense that is involuntary and passive and
often done automatically without paying attention.
Listening - An active process that requires effort or attention
from the listener; used to decode messages.
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4
Interpersonal Communication
Assumption made in communication that message was
transmitted and received accurately.
Interpersonal communication flows from individual to
individual. The objective in interpersonal communication
should be to increase the area of understanding. Ideally, the
maximum overlap of “what was meant” and “what was
perceived” is desired.
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5
https://www.youtube.com/watch?v=D3a3fgUkw6c
Barriers to Communication
Hearing an Expected Message

Ignoring Conflicting Information
Differing Perceptions
Evaluating the Source
Interpreting Words Differently
Ignoring Nonverbal Cues
Becoming Emotional
Cultural Differences
Linguistics
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6
Barriers to Communication
Sayles and Strauss and Chaney and Martin identified the
following common barriers in interpersonal communication:
1) Hearing an expected message. Past experience leads one to
expect to hear certain messages that may not be correct in some
situations.
2) Ignoring conflicting information. A message that disagrees
with one’s preconceptions is likely to be ignored.
Gregoire
3) Differing perceptions. Words, actions, and situations are
perceived in accordance with the receiver’s values and

experiences; different people react differently to the same
message.
4) Evaluating the source. The meaning applied to any message
is influenced by evaluation of the source.
5) Interpreting words differently. Because of the complexity of
language, words have many different meanings.
6) Ignoring nonverbal cues. Tone of voice, facial expressions,
and gestures may affect communication.
Gregoire
7) Becoming emotional. Emotion will affect transmission and
interpretation of messages.
8) Cultural differences. Differences in ethnic, religious, and/or
social status may impact the understanding of a message.
9) Linguistics. Different languages, dialects, and accents spoken
by the sender and receiver or use of a vocabulary by the sender
that is beyond the comprehension of the listener may alter
understanding of the message being sent.
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Techniques for Improved Communication
Supplementary Channel - A secondary pathway used to transmit
a message in another way to reinforce the message.
Gregoire
Techniques for improved communication are summarized in the
figure above (see Figure 11-15 in text).
Using feedback can result in more effective communication
because it allows the sender to search for verbal and nonverbal
cues from the receiver.
Using several channels will improve the chances that a proper
message is communicated.
Sensitivity to the receiver will enable the communicator to
adapt the message to the situation.
Awareness of symbolic meanings can be particularly important
in communication.
“It’s not what you say, but what you do” is another tenet for
improving communication.
Using direct, simple language and avoiding jargon is another
rule for improving communications.
Listening is basic to effective communication because receiving
messages is as much a part of the process as sending them.
10
Organizational Communication

Formal Channels of Communication
The Authority Structure
Job Specialization
Information Ownership
Effective organizational communication involves getting an
accurate message from one person to another.
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11
The Formal Channels of Communication: Formal channels
influence communication effectiveness in space
First, as organizations grow, the channels cover an increasingly
larger distance.
Second, the formal channels of communication may inhibit the
flow of information between levels in the organization.
The Authority Structure: The authority structure affects
communication because of status and power differences among
organizational members.
Gregoire

Job Specialization: Job specialization can be both a help and
hindrance in communication; it facilitates communication
within a work group because members speak the same jargon
and frequently develop a group cohesiveness.
Information Ownership: The term information ownership means
that individuals possess unique information and knowledge
about their jobs; such information is a form of power for those
who possess it, making them unwilling to share the information
with others.
Gregoire
Directions of Internal Communication
1) Downward: Individuals at higher levels of the organization
communicate downward to those at the lower levels.
Most common forms are job instructions, policy statements,
procedure manuals, and official publications of the
organization.
Gregoire
Examples of downward Communication
Written Examples

Circulars
E-mails
Handbooks
Letters
Memos
Newsletters
Reports
Oral Examples
Loudspeaker announcements
Town Hall meetings
Verbal instructions
Verbal orders
Verbal presentations
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Written Communication
Essential communications documents
Types of written communication that are necessary
(fundamental) to carrying out the business of an organization.
Employee Handbooks - Written or online documents produced
by organizations to provide information to employees relating
to the organization’s mission, policies, rules, benefits, and so
on.
Human Resource Policy and Procedure Manuals - Written or
online documents used as a management tool to direct the
actions of management relative to employee relations.
Departmental Policy and Procedure Manuals - Written or online

documents specific to a department that guide the activities and
work processes of that department.
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Directions of Internal Communication
2) Upward communication:
An effective organization needs open channels of upward
communication. In large organizations, good upward
communication is especially difficult.
Suggestion boxes, special meetings, and grievance procedures
are examples for upward communication.
important because it provides employees with an opportunity to
have a say in what happens in the organization.
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Inter- and Cross-Cultural Communication
Acculturation occurs as one adapts or adjusts to a new and
different culture.
Assimilation: Individuals are absorbed in a new culture and
withdraw from their former culture

Integration: Individuals become an integral part of the new
culture but maintain the integrity of their previous culture
Separation: Individuals keep their culture and stay independent
of the new culture
Gregoire
Cultural Issues that Affect
the Communication Process
Paralanguage
Chronemics
Proxemics
Oculesics
Olfactics
Haptics
Kinesics
Chromatics
Silence
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19
Cultural Issues affecting communication
Paralanguage: Paralanguage, the rate, pitch, and volume of the
voice giving the message, can affect the meaning interpreted
from that message.
Chronemics: Chronemics, attitudes about time, vary among

cultures.
Proxemics: Proxemics, the physical space between individuals
when they are communicating, also differs among cultures and
may alter interpretation of the message being given.
People in the United States tend to need more space, for
example, than do persons from Greek, Latin American, or Arab
cultures.
Gregoire
Proxemics
There are four zones of interaction:
Intimate zone (less than 18 inches, reserved for very close
friends or business handshakes)
Personal zone (18 inches to 4 feet, used when giving
instructions or working closely with another)
Social zone (4 to 12 feet, used for most business interaction)
Public distance (greater than 12 feet, very formal interaction
Gregoire

Oculesics: Oculesics is the use of eye contact during
communication; in some cultures use of direct eye contact
indicates listening; in others it is a sign of disrespect and bad
manners.
Olfactics: Olfactics, or smell, can have a positive or negative
nonverbal impact on the communication process.
Haptics: Communicating through touch or body contact is
referred to as haptics.
Touch, when used appropriately, can convey support and trust;
however, when used inappropriately, can be uncomfortable and
create a sense of distrust and annoyance.
Gregoire
Kinesics: The use of body movements such as facial
expressions, gestures, and posture in the communication process
is often termed kinesics.
The “thumbs-up” gesture, for example, is used in the United
States as a signal that everything is going well; that same
gesture is considered rude in West Africa.
Chromatics: Colors have different meanings in different
cultures and thus use of color can convey an unintended
nonverbal message.
White, for example, is viewed as peaceful and pure in some
cultures and is associated with mourning in others.

Gregoire
Silence: The duration and appropriateness of silence can be
interpreted in different ways depending on the culture.
Long periods of silence are often not comfortable for U.S.
businesspeople but are common in negotiations by Japanese
businesspeople.
Gregoire
https://www.youtube.com/watch?v=idZR_OXim38
24
Decision Making, Communication, and Balance
Chapter 11
Gregoire
Foodservice Organizations
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.
Gregoire
2
Decision Making
Identification
& Analysis
Problem
Definition
Selection
Gregoire
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.
3
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
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4
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
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5
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...
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6
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7
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
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8
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...
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9
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10

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)
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11
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.
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12
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.?
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13
Types of Decision Making
Programmed
Nonprogrammed
Decisions
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.
14
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.
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15
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.
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16
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
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17

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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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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19
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.
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20
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.
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21
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.
22
Methods of Group Decision Making
Nominal Groups
Focus Groups
Interacting Groups
Delphi Groups
Group Decision Making
Gregoire
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.
23
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.
Gregoire
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.

Gregoire
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
25
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
Gregoire
26
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.
Gregoire
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.
27
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.
Gregoire

28
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.
Gregoire
29

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