BUS 600 Management Communications with Technology

iStockphoto 5 Learning Objectives After reading this chapter and studying the materials, you should be able to:

1. Use communication in the decision-making pr ocess.

2. T ake advantage of the six steps of the decision-making process.

3. Cr eate the primary objectives, desired outcomes, and approaches to the persuasion processes.

4. Apply the steps and methods involved in an ef fective persuasion process. Decision-Making Processes and Persuasion baa66869_05_c05_155-190.indd 155 4/25/12 11:48 AM Section 5.1 The Role of Communication in Decision-Making 5.1 The Role of Communication in Decision-Making Learning Objective # 1: How do managers use communication in the decision-making process?

I n today’s dynamic business environment, managers are expected to respond to events and trends as efficiently and effectively as possible. Doing so involves making quality decisions. A decision is a choice between two or more potential courses of action (Hoch & Kunreuther, 2001; Bedeian, 1986). Top managers respond to company circumstances with strategies and policies designed to guide the organization through turbulent situa- tions. Middle managers employ tactics to support company strategies. First-line supervi - sors make sure company procedures and rules are followed.

Decision-making in business organizations involves communication in all directions.

Ideas, suggestions, and complaints flow from lower-ranking to higher-level managers.

Top managers inform all ranks about events in the environment that affect the company, internal company issues, and decisions that they make in response. Middle manag - ers coordinate with all levels to make sure information reaches the proper destination (Simon, 1976). For example, production, marketing, and those who operate the company’s warehouse work together when a bonus pack that is larger than a product’s normal size package will be sold. Production adjusts to the larger package, marketing creates a label emphasizing the bonus, and the warehouse needs added space to store inventory.

Several key business and management communication skills affect the quality of the deci - sion-making process. Listening plays a critical role. An effective decision-maker collects information before developing alternatives or choosing a solution. Reasoned discussion can benefit the organization in terms of the quality of ideas generated to solve company problems and the eventual solutions chosen. Such discussions can take the \ form of board meetings, focus groups, brainstorming sessions, and task-force status meetings. Creative companies inspire members to participate and share innovative ideas. The outcome of the process, the actual decision, requires precise and clearly understood communication to be effectively implemented. Consequently, the connection between quality communication and successful decision-making is evident.

Tiger Woods and Tough Decisions Professional golfer Tiger Woods burst onto the scene in the 1990s, winning numerous tournaments while establishing a reputation as a fierce competitor on the course, but a pleasant and affable fam - ily man everywhere else. His popularity led to a variety of lucrative endorsement deals. Woods’ near iconic status in the United States and around the world seemed impenetrable.

In 2009, a car accident involving Woods near his home changed the trajectory of his life and career. It was soon revealed that he engaged in extramarital relationships with several women over many years.

When these scandals made national headlines, the leaders at his sponsoring companies were faced with a difficult decision: Should the company continue to retain the popular and charismatic golfer as a spokesperson? (continued) baa66869_05_c05_155-190.indd 156 4/25/12 11:48 AM CHAPTER 5 Section 5.1 The Role of Communication in Decision-Making Scandals tied to a company’s spokesperson are not new. In 2011, comic Gilbert Gottfried was immedi- ately released as the voice of the Aflac Duck after telling an inappropriate joke about the tsunami in Japan. Substantial company revenues were generated in Japan, which meant the decision was not surpris- ing. Many advertisers quickly dropped football player Michael Vick following his imprisonment for running a dog-fighting ring.

In the case of Woods, however, company reactions varied. Accenture, an accounting and consulting firm, quickly dropped him. A company official stated, “[We have] determined that he is no longer the right rep - resentative for [our] advertising" (EPSN.com, 2009; Adlandtv.com, 2009). The energy drink Gatorade, a division of PepsiCo, quickly followed suit. AT&T can - celled its contract with Woods as well. Over time other companies that discontinued relationships with him included American Express, Buick (General Motors), Titleist, and General Mills.

Gillette took a different approach, stating the company would limit his role in advertising. The com - pany continued running ads featuring Woods and the Gillette Fusion razor. The firm also noted it would not film any new commercials with him. The company, which is owned by Proctor & Gamble, later severed ties as well. Tag Heuer took down posters featuring Woods, but did not officially cut rela- tions for several months (Kelley, 2011).

At the other extreme, four companies, including EA Sports and Nike, stood by the golfer. EA Sports had recently released the Tiger Woods PGA Tour and the Tiger Woods Online games, which may have boxed in company decision-makers. The sports-collectible company Upper Deck continued its association with Woods, making few public comments about the scandal. Japanese company Kowa, a pharmaceutical developer, also continued featuring Woods in commercials.

The most visible company connected to Woods, Nike, stood by him. Woods released the famous “What have you learned?” commercials, featuring the voice of his deceased father in the background.

Some found the ad to be courageous; others commented that it was “creepy” (Gomstyn & Arnall, 2010).

Decision-makers in these organizations face different sets of publics. Internal stakeholders, especially employees, may have wished to influence the decision. External publics, including the press, custom - ers, and other companies, may have also tried to weigh in about what to do. The result was that each company’s decision, and implementation of that decision, was unique to its situation.

Questions for Students 1. What reasons could be given for maintaining a relationship with Tiger Woods and what reasons could be given for removing Woods as an advertising spokesperson? 2. What roles would publicity, pressures from the public, and internal morale play in the decision? 3. What were the ethical choices involved in making this business judgment? Tiger Woods and Tough Decisions (continued) © Reuters/CORBIS Various company decision-makers faced difficult choices when the Tiger Woods scandal emerged on the national scene. baa66869_05_c05_155-190.indd 157 4/25/12 11:48 AM CHAPTER 5 Section 5.1 The Role of Communication in Decision-Making Decision-Making Perspectives Each individual manager uses a unique combination of attributes, skills,\ and experiences to make decisions in the workplace. The individual’s level of intelli\ gence, tolerance for ambiguity, acceptance of different cultures and religious beliefs, willingness to listen to the viewpoints of others, and even degree of confidence, affect the decisions a manager makes and the processes she or he uses. The perspectives used to analyze the nature of decision-making include rational/analytical thinking, intuitive decision-making, and the garbage can model.

Rational/Analytical Thinking Brain researchers have observed that the human brain contains both rational and emot\ ional elements (Cokins, 2010). Theories of mental development suggest that ration\ al decision- making involves looking for sensible or logical actions; avoids emotion \ and bias in judg- ment; and maximizes or makes the most out of something, such as personal\ utility or com- pany sales (Wasserman, 2007). When making decisions for business, a rational approach requires four preconditions. First, the problem must be relatively clear cut. Second, manag - ers must be aware of the most viable options and alternatives. Third, criteria used to evalu - ate potential solutions are well known and understood. Fourth, the decision-maker seeks to maximize or choose the best option when selecting solutions (March, 1994). While four standards rarely can be completely met, rational approaches are often deemed advisable.

Various cultures are evaluated on the degree of rationality and uncertainty avoidance uti - lized in everyday living and decision-making (Rapp, Bernardi, & Bosco, 2011).

Intuitive Decision-Making For many years, management experts dismissed the use of intuition in dec\ ision-making as irrational or ineffective. More recently, however, this assertion has been challenged. Intui - tive decision-making may be interpreted to be an unconscious process that relies on dis - tilled experience (Behling & Eckel, 1991). The more recent perspective suggests that intui - tive decision-making can be of great value, when certain conditions exist, as displayed in Table 5.1 (Agor, 1989). Even so, managers who make such decisions often disguise or hi\ de the fact that they used the method (Myers, 2002).

Table 5.1: Situations that favor intuitive decision-making Facts are limited Facts do not clearly point the way Analytical data have low value Time is limited High level of uncertainty exists No precedent can be used Variables are not scientifically predictable Several plausible alternatives exist with good reasons to choose each baa66869_05_c05_155-190.indd 158 4/25/12 11:48 AM CHAPTER 5 Section 5.2 The Decision-Making Process 5.2 The Decision-Making Process Learning Objective # 2: How can managers take advantage of the six steps of the decision-making process?

M anagerial decision-makers can use a well-established format for examinin\ g com - pany problems and reaching the best solutions. One common approach seeks to take advantage of the rational/analytical approach to decision-making (Bazer - man, 2006). In that model, the six steps of decision-making are: Managers do not rely solely on rationality or intuition. In most circumstances, one approach will be favored over the other.

At the same time, reason often affects intuition, and intuition/ emotion often influences reason - ing processes. The Tiger Woods controversy represents both elements—emotions related to his conduct as a married father and reasoning regarding what would be the best business prac- tice. Remember that these two methods of making decisions are coupled with individual traits, skills, and preferences. Garbage Can Model Another view on the evaluation process in decision-making proposes that decisions are often made in a sloppy, haphazard manner. Four elements that interact and contribute to the process are the problem, solutions, participants, and choice opportunities. Decision- making does not occur in an orderly fashion, but rather randomly by the problems that emerge, the time people have to solve them, and the options available, as pa\ rt of what will be tossed into the organization’s “garbage can” of problems to be addressed. Opportuni- ties lead to decisions as readily as problems, and organizational politics can disturb the evaluation process. The garbage can model suggests that decision-making contexts will\ be complex and at times border on being chaotic. Each leads to a differing evaluation system.

Not surprisingly, then, the degree of disorder plays an important role in how decisions are made (March & Weisinger-Baylon, 1986; Bower & Gilbert, 2007). Jupiterimages/Thinkstock The garbage can model suggests that decision-making contexts will be complex and at times border on being chaotic. For Review Name and briefly define three decision-making perspectives. baa66869_05_c05_155-190.indd 159 4/25/12 11:48 AM CHAPTER 5 Section 5.2 The Decision-Making Process 1. State the problem 2. Name limitations 3. Generate alternatives 4. Evaluate alternatives 5. Choose a solution 6. Prepare a plan of implementation Those who carefully follow through on each step and avoid the pitfalls that can disrupt quality decisions have the best chance of discovering and implementing h\ igh-quality solutions. Effective management communication plays a critical role in each step. For Review What are the six steps of the decision-making process? State the Problem When identifying the problem or opportunity, managers consider two issues. First, they make sure the correct cause of the problem has been identified. Many times managers confuse the problem with symptoms of the problem. For example, sales may decline when competitors lower prices or because of negative publicity about the company. Lower sales represent the symptom; the manager seeks to identify the cause. Some indicators of gen- eral employee dissatisfaction are absenteeism, tardiness, turn - over, and grievances. Several causes of rises in these rates are possible, including the threat of layoffs, the lack of pay raises, or a bad supervisor. The man - ager strives to discover the true cause. Effective decision-making results from careful investiga - tion of the nature of the issue.

Second, when specifying a prob - lem or opportunity, state the issue in a positive fashion. For example, instead of saying, “We have too many accidents,” the alternative would be to state, “We need to find a way to increase injury-free days by 20 percent next year.” In essence, the problem should be framed as the desired solution (Sanders, 1999). The problem will not truly be solved until an observable desired outcome takes place. Hemera/Thinkstock A positive problem statement would be, “We need to find a way to increase injury-free days by 20 percent next year.” baa66869_05_c05_155-190.indd 160 4/25/12 11:48 AM CHAPTER 5 Section 5.2 The Decision-Making Process In terms of managerial communication, the decision-maker includes the ne\ cessary parties to help discover the problem and its symptoms. The communication skills needed include clearly articulating the reasons for examining the issue. Listening skills allow the final decision-maker to incorporate information and make the best judgment as \ to the nature of the problem. When a group assists in the decision, the leader seeks consensus that the true problem has been identified. For Review What two issues should managers consider when stating the problem in the decision-making process? Identify Limitations Every company’s situation contains unique elements. Despite a sputter\ ing economy, LinkedIn, a social network for professionals, experienced explosive revenue growth and visits to the site in 2010. In the same year, most other companies endured low sales. In essence, some companies experienced the limitations of a weak economy wh\ en LinkedIn did not. When seeking to solve a problem or to seize an opportunity, a prudent course of action involves identifying company limitations. The most common areas in which limita- tions influence decision-making include time, money, technology, skilled personnel, and organizational inertia.

Time limits decision-making in three ways. First, many decisions must be made quickly.

This leaves managers with little time to develop and analyze options. Se\ cond, the length of time each alternative will last should be a consideration. The decisi\ on to finance and construct a new building or enter a new market may require long-term financing, which limits company options to pursue other projects in the future, meaning the alternative has a long shelf life. Third, the amount of time between when a decision is made and when it is fully implemented deserves deliberation. Implementing a decision m\ ay take weeks, months, or even years. Managers must be sure the alternative will still be viable at that point.

Money nearly always affects decision-making. Firms simply cannot generate funding to solve every problem. Technology can limit decision-making when other firms acquire more-advanced technology, such as when one company that manufactures televisions develops a superior 3-D system. Also, a technological breakthrough that would answer a problem may be coming soon, but is not yet available. Skilled personnel be\ come a limita - tion when other firms employ workers with superior talents or knowledge,\ placing other companies at a disadvantage. Organizational inertia, or systematic resistance to change, often prevents quality solutions from being chosen (Ackland, 2005). Managers know that subordinates or top management can prevent the implementation of a quality idea.

The role of management communication in identifying company limitations will \ be largely the same as for identifying the problem. The decision-maker or leader listens, coordinates, and carefully spells out the natures of the limitations discovered by the group or team.

This list guides the process of generating and evaluating alternatives. baa66869_05_c05_155-190.indd 161 4/25/12 11:48 AM CHAPTER 5 Section 5.2 The Decision-Making Process Generate Alternatives Creativity often represents the driving force behind finding quality alternatives (Amabile, 1997). The development of Facebook and Twitter serves as an example of creative new methods of generating success. Innovative products, services, and marketing methods often lead to major profits and rapid growth. Company leaders look for ways to inspire creativity (Woodman, Sawyer, & Griffin, 1993). Five of the more common methods are displayed in Table 5.2.

Table 5.2: Creativity techniques Brainstorming Nominal groups Analogies Finding the lowest common denominator Seeking an outside perspective Brainstorming begins by assembling a group of employees to generate new, different ideas about how to solve a problem (Osborne, 1963). A recorder collects all of the sugges- tions made during a brainstorming session. In that short time period (3\ to 5 minutes is common), the group will be given the problem and then asked to quickly come up with as many ideas as possible about how to resolve the issue. Respondents make responses aloud. For the session to succeed, four rules must be followed: 1. The more ideas, the better 2. Wilder, more offbeat ideas are best 3. Combine ideas with other participants 4. Do not pass judgments on other ideas during the session Departments and organizations that require creativity often take advantage of brain - storming. Advertising agencies, entertainment companies, and research-and-develop - ment departments all regularly schedule brainstorming sessions.

Nominal groups may be used when participants are more reserved. In the nominal group session, instead of shouting out ideas, members write them down. Then, p\ otential solu - tions are suggested in a round-robin fashion, with each person taking a turn. Potential alternatives are then discussed and voted upon by ranking them from best to worst.

The analogy method involves comparing the problem to something else by using a simile or metaphor. Low sales are like “the well running dry.” Developing a new method of For Review Name the most common limitations to decision-making. baa66869_05_c05_155-190.indd 162 4/25/12 11:48 AM CHAPTER 5 Section 5.2 The Decision-Making Process solving a customer ’s problem can be compared to “finding a needle in a haystack.” The idea is that by making such compari- sons, new methods of solving the problems will emerge (Gor- don, 1961).

Finding the lowest common denominator involves trying to think of the problem in the sim - plest of terms. Instead of trying to find a way to increase sales, for example, it may be easier to come up with methods to gen- erate store traffic. The premise is that if people visit the store, they will be more inclined to buy something.

Seeking an outside perspective means visiting with someone from another discipline or area. A marketer might ask a human resource manager ’s or consultant’s opinion. A quality-control manager could visit with someone from the public relations office about a continuing problem with defects. The goal is to incorporate a new point of view into \ the analysis and come up with new and unusual ways to solve a problem.

Online collaborations have become the norm for generating alternatives f\ or many com - panies. These interactions allow individuals at dispersed locations, eve\ n some who are not employees, to share ideas with one another about how to solve company problems.

Managers in the future can expect extensive use of this type of technology when seeking to identify and implement high-quality ideas.

In terms of management communication, an effective decision-maker takes advantage of the technique best suited to the problem at hand. The manager facilitates the process, and documents the best ideas. Then, the manager gives credit to the individual or group that generates exciting new alternatives. Doing so encourages participation a\ nd creativity in future decisions.

Company statements affect the context in which creative endeavors take place. Organi - zational values, such as those toward risk-taking, influence the alternatives that emerge from decision-making processes. A risk-aversive company likely will not generate those types of options, especially when that preference has been transmitted to employees. In the Tiger Woods case, alternative generation may have been affected partly by gender, as women tended to react more strongly to the allegations of misconduct (ESPN.com, 2010), making consensus more difficult to achieve. Diversity of opinions can influence the cre- ativity process. Less-diverse organizations may be limited in terms of discovering alterna - tives from perspectives in other cultures, subcultures, and ways of problem-solving. iStockphoto/Thinkstock The analogy method involves comparing the problem to something else by using a simile or metaphor. For example, low sales are like “the well running dry.” baa66869_05_c05_155-190.indd 163 4/25/12 11:48 AM CHAPTER 5 Section 5.2 The Decision-Making Process Evaluate Alternatives When managers proceed to the evaluation stage, the pros and cons of each alternative should be listed. Many decisions are reached by choosing the alternative with the best advantage-to-disadvantage ratio. Two factors influence the evaluation of alternatives:

uncertainty and risk.

Uncertainty means that incomplete information will be available to make a decision.

Greater uncertainty means managers have less information and do not know w\ ith con- fidence how the implementation of an alternative will turn out. Risk represents circum- stances under which uncertainty is high. Managers must know if they are operating in a risk-taking company or one that avoids risks. Entire national cultures are evaluated on the basis of acceptance or avoidance of risk, or of tolerance for ambigu\ ity. Guatemala, Japan, Greece, Portugal, and Uruguay are among the most risk-aversive trading nations.

Cultures with high uncertainty avoidance often have governments that seek to m\ inimize uncertainty through strict laws and rules as well as safety and security measures (Work - man, 2008).

Figure 5.1: The risk/uncertainty relationship Risk Uncertainty The greater the degree of uncertainty in a decision, the greater the degree of risk.

In management communication, evaluating alternatives requires exemplary listening skills. An effective decision-maker does not dominate discussions of alternatives, recog- nizing that all involved have a stake in the outcome. Ignoring or dispar\ aging the view - points of others is counterproductive. Encouraging and praising rich, active participation improves the evaluation process.

Transparency in decision-making means that internal and external stakeholders an\ d groups should be aware of what transpires, and that company leaders communicate this For Review What methods are used to creatively generate decision alternatives? baa66869_05_c05_155-190.indd 164 4/25/12 11:48 AM CHAPTER 5 Section 5.2 The Decision-Making Process Choose a Solution When choosing a solution, three items merit consideration. First, managers recognize that solutions are combinations of alternatives rather than selecting a single option. Fi\ nding sets of ideas that work together should be the objective.Second, compare any chosen solution to the “Do nothing” criterion. In other words, the manager makes sure the alter- native offers an advantage over taking no action. Medical doc- tors follow the maxim “First, do no harm.” At times, it is simply best to let the patient heal with- out intervention. Sports execu - tives follow the premise, “Some - times the best trade is the one you don’t make.” Third, managers should state their reasoning as the alt - ernative(s) are chosen. This way, the manager can defend his or her choice at some later point.

With regard to management communication, many executives maintain decision logs or\ journals that spell out why a course of action was chosen, should they be asked by others to explain their reasoning. The process provides an additional layer of transparency to the decision-making process. State a Plan of Implementation A successful plan demands more than simply deciding which alternative to pursue.

Managers then follow through, making sure it is logically and efficiently put into action.

Implementing plans involves the use of “Ws” and “Hs,” as dis\ played in Table 5.3. information in an honest, clear, and complete manner without violating the organization’s desire for confidentiality and minimizing disclosure risks (Miami University, 2011). Trans - parency influences internal and external perceptions of the organization and helps make the evaluation of alternatives honest and realistic by those involved. For Review Explain the relationship between uncertainty and risk when evaluating decision alternatives. Stockbyte/Thinkstock Compare any solution chosen to the “Do nothing” criterion, such as when medical doctors follow the maxim “First, do no harm.” baa66869_05_c05_155-190.indd 165 4/25/12 11:48 AM CHAPTER 5 Section 5.2 The Decision-Making Process Table 5.3: Ws and Hs of implementation Who is in charge?

What is to be done?

When should each step of implementation take place (timing issues)?

Where will the solution be implemented?

How should we proceed (sequence of events)?

Why are we doing this (explanation to all parties involved in the implementation process)?

Management communication skills constitute critical elements in implemen\ ting deci- sions. Without a clear course of action, a viable solution may lose its potentia\ l to succeed.

Written and verbal communications are needed to make sure all involved know how to proceed with the solution that has been chosen. For Review What are the Ws and Hs of decision implementation? Pitfalls to Avoid Although the six steps listed earlier provide a clear-cut format for the evaluation of prob - lems and the development of solutions, effective managerial decision-makers know that five factors can disrupt the process. Expectations, emotions, employee attitudes, company politics, and a mismatch between the decision-maker and the decision com\ prise the pri - mary threats to high-quality decisions.

Expectations can interfere with the reasoning process when making decisions. An employee may feel compelled to make the decision that a supervisor would\ prefer, even though it is not the best alternative. Expectations of peers, or peer pr\ essure, often lead to poor decisions, especially in the areas of ethical questions. At times, a supervisor may bend to the wishes of subordinates in order to remain in good standing with them.

Two emotions constitute threats to decision-making: Anger clouds thinking and can lead to impulsive, poor choices. Melancholy also threatens the process as the decision-maker fails to carefully consider alternatives.

Employee attitudes can predispose individuals to reject viable alternatives. Attitudes affect thoughts about gender equality, racial equality, sexual orientation, political parties, and many other issues. At times these may influence decisions. For instance, a person who has lost a loved one in an automobile accident with a drunken driver may have strong attitudes about alcohol consumption at company events. baa66869_05_c05_155-190.indd 166 4/25/12 11:48 AM CHAPTER 5 Section 5.3 Critical Thinking and Decision-Making 5.3 Critical Thinking and Decision-Making E ffective decision-making results from analytical, critical thinking. One skill that can improve your ability to make sound decisions on the job is the ability to co\ rrectly apply critical thinking methods to situations that you encounter. The two types of critical thinking or reasoning processes that assist in decision-making are inductive rea - soning and deductive reasoning. Inductive Reasoning/Induction Inductive reasoning moves from specific to general. A phrase associated with inductive reasoning would be, “Based on what I have observed, I am led to believ\ e. . .” In the busi - ness community, a manager may observe a salesperson first ignoring a customer, then gruffly greeting the individual, and finally making a sale in an impersonal, distant man - ner. Should the pattern repeat, the manager might be led to believe the salesperson should be either retrained or terminated. Many times, decision-makers use induction to identify problems that need to be solved. When three or four symptoms can logically be connected with a root cause of the problem, induction has been used. For example, a website that has been hacked, then later crashes, and continually frustrates those attempting to use the system, may result in the notion that a new computer system or web master is needed. Company politics often interfere with decisions related to power and money. Decision- makers may be tempted to reach conclusions that benefit themselves or their departments rather than the larger organization.

A mismatch between the decision-maker and the decision means that the wrong person was placed in charge of making the choice. As an illustration, someone who enjoys taking risks may not be the ideal person to manage a company’s financial portfolio. An indi - vidual who avoids risks will not be the best person to decide on a bold \ strategy such as exporting or developing a new line of products.

The role of management communication in these issues consists of discovering \ potential problems in the decision-making process. When it becomes clear that expectations are leading to poor choices, managers need to communicate this and address the problem.

Managers should be aware of employee emotions during the decision-making process as well as their own emotions. Effective communicators unveil employee attitudes that are, or have become, counterproductive. Managers recognize the ways in which company politics can lead to poor decisions in their specific organizations. Decision-makers should be carefully selected. A person should excuse himself when he is not the ideal candidate to make a given decision. For Review What factors can disrupt quality decision-making? baa66869_05_c05_155-190.indd 167 4/25/12 11:48 AM CHAPTER 5 Section 5.4 Persuasion Deductive Reasoning/Deduction Deductive reasoning moves from general to specific, by pro- cess of elimination. Arguments based on laws, rules, or other widely accepted principles are best expressed deductively. For example, Fred was observed taking office supplies home on two occasions. Company poli - cies specifically prohibit taking office supplies out of the build - ing. Two other employees have been terminated for violating company policies. Therefore, Fred should also be terminated.

Deductive reasoning in deci - sion-making often takes place as alternatives are being evaluated.

Gradually, the least viable alternatives are first eliminated using some type of principle (cost, time, difficulty, odds of success). Eventually, the best alternative remains and will be chosen. The term cost-benefit analysis reflects deductive reasoning as alternatives are examined. The choice with the highest ratio of benefits to costs will be\ considered the most viable, when all other factors are equal. Cost-benefit analysis is often useful when making budget allocation decisions, for example.

The six steps of decision-making, when coupled with inductive and deduct\ ive reasoning processes, can lead to the best problem statement, novel alternatives, and quality criteria for making choices. Management communications skills facilitate the use \ of the rational approach and reasoning processes by all involved in the decision. Fuse/Thinkstock Deductive reasoning moves from general to specific, by process of elimination. For Review What two forms of critical thinking or reasoning can be used in decision-making?

5.4 Persuasion Learning Objective # 3: What are the primary objectives, desired outcomes, and approaches to the persuasion processes?

P ersuasion may be considered both an art and a science. Some individuals instinc - tively know how to influence others. At the same time, persuasion techniques can be learned and applied. When matters arise within a company about wh\ ich course of action to take, logically there will be instances of disagreement. Members of teams and groups designated to make decisions, as well as single individuals assigne\ d baa66869_05_c05_155-190.indd 168 4/25/12 11:48 AM CHAPTER 5 Section 5.4 Persuasion the responsibility of making decisions, must at times persuade others that the action or resolution they prefer will lead to better outcomes. In essence, some decisions include el\ e- ments of persuasion as part of the process. Further, a team or group of leaders may agree on a solution to the problem, yet other groups, such as lower-ranking employees or the general public, may not. Once again, persuasion becomes an element of decision-making and management communications.

Persuasion often accompanies a change in a company. As noted, organizational inertia constitutes systematic resistance to change. Also, conflict over change can result from a genuine disagreement over a company policy or action, turf-building or political turf wars, or often from personality differences. Effective persuasion involves two major ele - ments: determining desirable objectives and outcomes, and choosing the b\ est methods to achieve those goals.

The Objectives of Persuasion Prior to the development of any communication intended to persuade an audience, the manager should specify the objectives and intended outcomes of the message. To do so, the manager first analyzes the audience that will receive the message. A persuasive com - munication piece can target: • people in favor of a position or action • individuals opposed to the position or action • persons who know of the issue but have not formed an opinion • individuals who do not know about the issue The persuasion objective for each group will be different. Also, members of each group will be reached with a different type of message. Three common persuasion objectives are to reinforce positive opinion, crystallize latent opinion, and neutralize hostile \ opinion.

Reinforce Positive Opinion One goal of persuasion can be to maintain the status quo in the face of calls for change. A com - pany that has employed a new strategic or tactical approach may encounter turbulence at first. For example, Priceline.

com developed an entirely new method for selling hotel rooms and airline tickets, based on a “reverse auction” approach, in which customers are encour - aged to “Name your own price.” Even with the public presence of actor William Shatner mak - ing the company highly visible, iStockphoto/Thinkstock Reinforcing positive opinion in a shareholder meeting or some other forum means speaking to the most enthusiastic segment of the audience. baa66869_05_c05_155-190.indd 169 4/25/12 11:48 AM CHAPTER 5 Section 5.4 Persuasion profitability was difficult to achieve and maintain. Reinforcing positive opinion, in that circumstance, involves identifying those most committed to the new business model.

Reinforcing positive opinion in a shareholder meeting or some other forum means speak- ing to the most enthusiastic segment of the audience. When exposed to th\ e views of this segment, other individuals who have not yet formed an opinion may become\ more will - ing to listen with an open mind. Reinforcing positive opinion helps create a “firewall” to help fend off ill-advised calls for change.

Crystallize Latent Opinion In the same manner as many political elections, those who are “undecided” often receive considerable attention. The undecided segment often represents the bloc that will eventu - ally determine whether a persuasive argument will succeed. To crystallize latent opinion, managers try to present cogent, accurate information that serves the needs of that group.

When one side of an argument reaches the undecided set first, that side gains an advan - tage both in terms of persuading them and the entire audience.

Consider, for example, a debate over whether a company should move toward becoming employee-owned. Some will strongly oppose the idea; others will strongly favor it. The side that tends to win will be the one, using whatever key information i\ s available, that persuades those who are not sure what to think.

Neutralize Hostile Opinion In many circumstances, a group evolves that remains completely opposed to an idea or activity. Nothing will change their minds. The goal for this group will be containment.

Persons with diametrically opposed ideas about how to solve a problem or deal with an issue often seek to persuade those who are neutral or undecided. The more passionate this group becomes, the stronger must be the response, in order to stop a shift to the oppos - ing point of view. Strategies for containing the opposition are careful explanation of the facts, enlisting support from segments that agree with your perspective, dissecting the language of the other side, pointing out inflammatory remarks not based in fact, pointing out the biases and false assumptions made by the opposition, and providing additional information and discussion of why your perspective is the most logical.

At times, refuting hostile opinion may degenerate into loud arguments. Tactics for coping with these moments include these approaches: • Find and express common ground. • Never personally attack an individual in the audience. • Avoid clichés and examples that can turn against you. • Make sure your facts are accurate and your arguments are logical; in other words, know what you are talking about. • Don’t make quick judgments about what the audience believes; research and analyze the audience carefully. • Be clear and concise. • Don’t let the audience guess what you believe or what your arguments are in advance baa66869_05_c05_155-190.indd 170 4/25/12 11:48 AM CHAPTER 5 Section 5.4 Persuasion The Desired Outcomes of Persuasion Three desired outcomes associated with persuasion objectives are creating new attitudes, modifying or altering existing attitudes, and reinforcing existing attitudes. An attitude summarizes an individual’s predisposition toward an object, person, or idea.

Attitudes contain three components: cognitive, affective, and conative. The cognitive component of an attitude results from reasoning processes and exposures to facts. One can intellectually understand that scientific research demonstrates the linkage between second-hand smoke and lung disease. The affective component of an attitude is the emotional element. Experiencing the suffering of a loved one enduring emphysema may lead a person to exhibit a much more visceral response to being exposed to second-hand smoke. The conative component of an attitude results in action or behavior. Petitioning a company to ban smoking anywhere on company grounds provides tangible evidence of the attitude through the conative component (Brief, 1998).

Creating new attitudes constitutes the most difficult persuasion outcome to achieve.

Normally, attempts to create new attitudes focus on the cognitive and affective compo - nents. In some business deci - sions, managers use reasoning and facts to convince others that changes are needed. For example, over time, attitudes about the reality of global cli - mate change have shifted for an increasing majority of the population. With this in mind, managers can use reasoning and facts to convince employees that more energy-efficient produc- tion techniques—while more expensive—are still a good idea.

Creating new attitudes through affective reasoning involves con - necting a new attitude with a To achieve these ends, remove yourself from the angry part of the conversation and con - centrate on the disagreement itself while trying to stay calm. It may help to rephrase the point before answering in order to reduce hostility (Walker, 2011). Carefully listen to the other ’s point of view in a respectful manner and then try to diffuse the point carefully. It may help to enlist the audience in dealing with an overly aggressive response. For Review Briefly describe the three primary persuasion objectives. Medioimages/Photodisc The affective component of an attitude is the emotional element. baa66869_05_c05_155-190.indd 171 4/25/12 11:48 AM CHAPTER 5 Section 5.4 Persuasion powerful emotion. Managers may use appeals to personal loyalty, patriotism, duty to fam- ily, love, friendship, and other emotions to make arguments supporting changes in attitudes.

Modifying or altering existing attitudes will normally be less challengi\ ng. For example, over time, business attitudes toward dress and personal adornment (tattoos, piercings) have relaxed. The United States military has shifted attitudes toward personal adornment over time and, more recently, toward sexual orientation. Modifying existing attitudes can be achieved through the use of all three attitudinal components. Facts and reasoning may be used; emo - tional appeals can be developed; or behavior can simply be changed or al\ tered over time.

Reinforcing existing attitudes means confirming viewpoints that already exist. Preventing “backsliding” or shifting away from current positions becomes the goal. Reinforcement can take the form of role modeling of behaviors as well as praise for those who continue to hold a current attitude. Again, the three components of attitudes may all be targets of reinforcing messages.

Persuasion objectives and outcomes have a considerable amount in common.\ Both seek to reinforce or strengthen existing support for a position, capture the attention and sup - port of those who have not formed an opinion or are undecided, and fend off persuasion attempts by those with differing opinions. Effective verbal and written communication skills help someone achieve these results. The choice of method constitutes the next key ingredient in persuasion. For Review Define attitude and briefly describe the three main components of attitudes. Approaches to Persuasion When attempting to persuade a group of people to change a point of view, two basic approaches may be used: behaviorism and cognitivism. The two approaches suggest dif- ferent methods by which individuals may be induced to respond in new ways to various ideas.

The behaviorism approach to persuasion focuses on actual behaviors, assuming the notion that thought processes cannot be observed. The mind represents a “black box” that cannot be penetrated. Behaviors can be seen and shaped. Therefore, working only with the observable offers the quickest path to achieving results. The use of reinforcements or behavioral consequence is the key. Individuals who exhibit desired behaviors receive pos - itive reinforcements or rewards. Individuals who continue to perform undesirable behav - iors receive no rewards or merit punishment. As time passes, desired behaviors become more common (Skinner, 1953, 1974).

The essence of persuasion, in behaviorist terminology, is “change the behavior and the attitude will follow.” For example, a longstanding argument in management literature concerns the relationship between worker satisfaction and worker performance. Early management research argued that satisfaction drives performance. Therefore, to increase baa66869_05_c05_155-190.indd 172 4/25/12 11:48 AM CHAPTER 5 Section 5.4 Persuasion performance, workers must first be satisfied with their jobs, or “change the attitude and the behavior will follow.” Unfortunately, satisfaction cannot be observed. It is a construct, or “convenient fiction” according to Skinner and other behaviorists. Increases in performance are observable.

Therefore, the logical approach would be to find methods to improve worker perfor- mance, reward those efforts in tangible ways, and eventually workers will report greater levels of satisfaction, or, “change the behavior and the attitude will follow.” In contrast to behaviorism, cognitivism suggests that behaviors serve only as indicators of what has first transpired mentally. One cognitive approach to persuasion, the Monroe sequence, suggests a five-step process to persuade an audience. The first step, attention, involves capturing the attention of the audience in some manner, such as with an interest - ing anecdote, the presentation of a difficult situation, or an interesting rhetorical question.

Second, building a want or need requires the speaker to instill the desire in the audience by pointing out the need, illustrating how the audience might experience\ the need, and showing the impact or ramification of the need. The third step, satisfaction, involves an explanation of how the need can be met and countering any opposing arguments. Fourth, visualization occurs when the speaker helps the audience see how the proposed remedy will satisfy the need and the negative ramifications if the remedy is not undertaken. Fifth and finally, a call to action seeks to drive the audience beyond a change in attitude to an actual change in behavior (Berry, 2011; ChangingMinds.org, 2011). The Monroe-motivated sequence has been compared to the AIDA model presented in the next section. Figure 5.2 portrays a framework of mental reasoning related to concepts of persuasion.

Figure 5.2: Layers of personality Understanding Understanding Opinions Opinions Attributes Values Attributes Opinions, attitudes, and values represent the components of a belief system with varying degrees of difficulty associated with trying to change them. baa66869_05_c05_155-190.indd 173 4/25/12 11:48 AM CHAPTER 5 Section 5.4 Persuasion As shown in Figure 5.2, opinions are at the fringe of a belief system. They are the least stable and the most susceptible to persuasive efforts. Through various persuasion tech- niques, such as logical reasoning or emotional appeals, an opinion can be changed. For instance, many consumers first worried that online purchases were risky, because personal information could easily be stolen, much in the same way that members of\ the previous generation were reluctant to make telephone purchases using credit cards. Over time, opinions that ecommerce is unsafe have been replaced, through advertising messages, the experiences of friends that successfully made online purchases, and finally through personal experience.

Attitudes are more centrally held concepts. They are more difficult to change because they represent more stable elements of a person’s reasoning process and view of the world. As noted, someone who has lost a loved one to lung cancer may hold the atti\ tude that smok - ing should be banned from the entire work site, including the outdoors surrounding the building. Workplace attitudes can become sources of conflict. Views about politics, reli - gion, global climate change and environmentalism, the roles of women in society, support or opposition to unions, and other topics fall under the realm of attitudes. Changing them requires more persistent reasoning and often time.

Beliefs, or strong convictions regarding the truths of state - ments or phenomena, are at the inner core of an individual’s personality. Beliefs are acquired from highly trusted sources such as parents, teachers, and religious leaders. More pro - found subjects frame beliefs, such as religious values, family, patriotism, and even political positions. Persuasion attempts normally will not change a per - son’s beliefs.

The three layers, opinions, atti - tudes, and beliefs, are connected to each other as well as to a per - son’s self-concept. Influencing one with persuasion attempts will also affect the other layers. Should a person’s belief set actually change, you can expect a profound influence on all of the other layers (Bem, 1970).

In summary, the two approaches to persuasion differ in that one focuses on behaviors and the other focuses on thoughts. Methods employed to persuade audience\ s will con - centrate more on one aspect or the other. At the same time, the most effective approaches include both aspects of the individual’s make-up. Behaviorist approaches concentrate on the conative or behavioral aspects of attitudes. Cognitivism examines the cognitive/ratio - nal and affective/emotional attitudinal elements. Purestock/Thinkstock Beliefs, or strong convictions regarding the truths of statements or phenomena, are at the inner core of an individual’s personality. baa66869_05_c05_155-190.indd 174 4/25/12 11:48 AM CHAPTER 5 Section 5.5 The Steps and Methods of Persuasion Preparation: Gaining Attention and Providing Motivation Successful managers recognize the power of preparation. When seeking to make persua- sive arguments, preparation involves correctly combining the ingredients required. Four elements are combined during the preparation process: the audience, the message, the medium, and the persuasion objective. Managers can use the AIDA model, which was first developed by E. St. Elmo Lewis, to develop a persuasive message (\ as cited in Bennett, Cunningham, & Dees, 2006). AIDA stands for the sequence Attention—Interest—Desire— Action. The model has often been used to create persuasive advertisements as well as in other settings.

Attention must be gained before a persuasive argument can begin. The audience must want to hear what you have to say about a problem, idea, or proposal, or else the persua- sion attempt will fail.

Interest draws the audience in by attaching the subject to things they value. Cr\ eating inter - est includes adding details that more fully engage the audience in your presentation.

5.5 The Steps and Methods of Persuasion Learning Objective # 4: What are the steps and methods involved in an effective persuasion process?

P ersuasion or argumentation consists of two ingredients: a claim that is made and evidence that supports the claim. Combining the two into a coherent presentation becomes the key challenge. In both verbal and written persuasion attempt\ s, the key will be to follow two elements in the process, following the steps involved and incorporat - ing the best persuasion methods. Steps of Persuasion Management communication efforts, including persuasion, are more likely to succeed when careful planning and execution take place. The steps of persuasion are preparation, unfreezing attitudes, moving attitudes, and refreezing attitudes. Each element must be coordinated with the others to achieve optimal results. For Review What are the two primary approaches to persuasion?

For Review Name the steps involved in the persuasion process. baa66869_05_c05_155-190.indd 175 4/25/12 11:48 AM CHAPTER 5 Section 5.5 The Steps and Methods of Persuasion Desire results from exposing the audience to claims and evidence supporting a specific position. Strong desire results when audience members begin to believe that your pro- posed course of action is in some way favorable to them.

Action takes place when the audience clearly understands what to do and the ac\ tivity will be easy enough to pursue. An effective “call to action” will be based on the motivation created in the desire phase and will direct the audience to a specific task or behavior. Pro - posing a deadline assists in inspiring greater motivation.

Unfreeze Attitudes Kurt Lewin’s (1943; 1997) model of attitudinal change begins with unfreezing existing attitudes. A successful persuasive argument begins by convincing the audience that their previously held perspective has flaws or may create problems in some way. Unfreezing attitudes begins with capturing attention. As noted in Chapter 3, attracting attention can take the form of a personal anecdote, shocking statement, rhetorical question, suggestion of a company crisis, famous quotation, or reference to an historical event.

The second element in unfreezing attitudes, force field analysis, involves identifying and spelling out the forces that call for change and those that push back against those forces.

The audience must become motivated to believe that forces for change are stronger than any resistance. At that point it becomes possible to move attitudes.

Move Attitudes Moving persons toward revised or new attitudes may be accomplished using one or more of the three types of persuasive appeals. Aristotle (384–322 BCE) suggested that persua - sive messages contain logos, ethos, and pathos. Two of these three methods link with the components of attitudes.

Logos refers to the use of logical appeals to move attitudes. The target will be the cog - nitive component of the attitude. Logic introduced inductively or deductively seeks to move the audience toward a new point of view. Supported by facts and evidence that are correct and carefully chosen, logos derives its power from convincing the audience through dispassionate reasoning.

Ethos refers to an ethical appeal based on expertise or credible information. Citing aca - demic research and scientific studies represents this approach. Lewin notes that ethos will be stronger when the audience knows the expert source. For example, an audience that is familiar with marketing notable Philip Kottler will be more persuaded by quotes from him or his books. President Barack Obama, during the 2011 budget/debt ceiling crisis debate, framed part of his key televised speech by citing President Ronald Reagan in an attempt to make a point and move the attitudes of those on the Republica\ n side of the deliberations.

Pathos involves more than simply being emotional. The speaker or presenter must find a story, picture, or episode that demonstrates the superiority of his or her position while at the same time evokes emotions. Images such as someone in pain due to a physical injury may be tied to statements about the impact of a company’s deci\ sions to strengthen baa66869_05_c05_155-190.indd 176 4/25/12 11:48 AM CHAPTER 5 Section 5.5 The Steps and Methods of Persuasion Refreeze Attitudes Refreezing attitudes takes place at the conclusion of a persuasive presentation. In addition to a call to action, give the audience reassurance that they are about to engage in a posi- tive activity. As the name “refreezing” suggests, this stage is about establishing stability once the changes have been made. The changes have been accepted and beco\ me the new norm. People form new relationships and become comfortable with new routines, which can take time. It should be noted that the refreezing stage of Lewin’s model has been criticized. Solidifying a new perspective may not be possible, especially in today’s more dynamic business environment. At the same time, without a call to action, the other ele - ments of attitudinal change become far less valuable. workplace safety procedures. The pathos appeal reaches the affective component of atti - tudes. Sometimes just connecting the numbers to an impact on people can \ provide the pathos element of a persuasive strategy.

A foreman making the case to workers to follow safety guide- lines at all times could employ the three aspects together. In this instance, logos takes the form of citing statistics about work - place injuries when procedures are not followed. Ethos explains how the guidelines were devel - oped and how they keep work - ers safe. Pathos involves telling the story about someone who was hurt and could not return to work.

The final element of moving attitudes involves anticipating objections. Many times these will be raised during or after a presentation has been made.

Methods used to fight off coun - ter-persuasion include stating the opposing point of view and refuting it, encouraging audience commitment to your perspective, and warning the audience that others will try to dissuade t\ hem (Vasallo, 2002; Booher, 1994). Purestock/Thinkstock With pathos, the speaker must find a way to demonstrate the superiority of a position while at the same time evoking emotions, such as showing an image of someone in pain while making statements about a company’s workplace safety procedures. For Review Define logos, ethos, and pathos. baa66869_05_c05_155-190.indd 177 4/25/12 11:48 AM CHAPTER 5 Section 5.5 The Steps and Methods of Persuasion Persuasion Methods and Media A variety of media are available to managers seeking to persuade audiences. The key will be to match the medium to the target audience. At times, a single individual will need to be persuaded. In others, it will be a department or some other subgroup of the company.

In others still, the entire organization may require persuasive attempts. The media avail- able for persuasive messages are displayed in Table 5.4.

Table 5.4: Persuasion media Written ChannelsVerbal Channels Supplemental Channel Letters/memos/emails Proposals Formal face-to-face Phone call Videoconferencing/conference call Meetings (virtual and in-person) Presentations (virtual and in-person) Informal communication Written Channels Written channels are more viable for less-emotional issues as well as circumstances in which facts and reasoning are the core element of the presentation. Letters, memos, and emails often follow the format displayed in Table 5.5. Key ingredients to effective written persuasive messages include simplicity and clarity (Caldini, 2007).

Table 5.5: Persuasive letters Opening Capture interest Align with audience's goals Body Proposed solution Overcome possible objections Match solution to the reader's needs Close Channel proposal into a specific action Encourage prompt response Sources: Hilton, C. B., Motes, W. H., & Fielden, J. S. (1989). An experimental study of the effects of\ style and organization on reader perceptions of text. Journal of Business Communication, 19 (3), Summer, 35–50. Gilsdorf, J. (1991). Write me your best case for. . . . Bulletin of the Association for Business Communication, LIV, March, 7–12.

Proposals often are attempts to convince others to take action. Internal reports seek to persuade those in the company to respond to an issue or problem or to take advantage of an opportunity. Normally, internal proposals utilize a less-complex form of presentation structure, as was noted in Chapter 4.

Proposals made to other companies normally include elements designed to ma\ ke a sale or to create some form of collaboration. The presentation format will be more sophisticated.

At the same time, simplicity and clarity remain guiding principles. To assist in creating the most persuasive type of proposal, the use of visuals adds richness to the written channel and can help the target audience better understand a claim and its supporting evidence. baa66869_05_c05_155-190.indd 178 4/25/12 11:48 AM CHAPTER 5 Section 5.5 The Steps and Methods of Persuasion Figure 5.3: A persuasive letter A persuasive letter contains an opening that captures interest, a body that provides a solution, and a close that encourages action or a quick response.Letterhead August 2, 2012 Melissa Jones, Human Resources Art Supply, Incorporated 2000 North 41 st Avenue Suite 211 Los Angeles, CA 55555 Re: In-house day care proposal Dear Ms. Jones, Greetings from our Kansas City office. Although you and I have never met, I have heard wonderful descriptions of the ways in which you have improved our company’s entire human resources operation. I look forward to the day when we can visit in person.

In today’s employment marketplace, as I’m certain you know, the reputation of being a “family friendly” company can be a significant corporate asset. The purpose of my correspondence is to make a case for in- house day care in the Kansas City facility, with the ultimate goal of improving our family friendly status.

The Kansas City facility employs approximately 200 individuals who pack and fill art-supply orders to our educational, institutional, and retail customers. Of those 200 employees, over 35 percent are parents of children who are in preschool or elementary education. We recently surveyed these workers and discovered that the primary reason for absenteeism, tardiness, and turnover in this group was related to delivering children to day care or after-school care, or not being able to afford the cost of day care.

Our corporate mission statement includes this objective: “We want to be known as a company where employees and their families are a top priority.” We can help achieve this goal in a tangible, meaningful, responsible way by assisting in child-care efforts.

I believe that, at a modest cost, we can increase productivity levels among these employees while improving morale. The fourth floor of our facility houses excess inventory and other materials that could be easily moved elsewhere. The cost of renovating that floor to turn it into an in-house day care for preschool and an after-school room for those in elementary school would be approximately $150,000. This would include adding a kitchen and “sick” room.

Staffing requirements for such a program would be one child-care specialist per 12 children. In Kansas City, that would mean hiring five people.

You might ask, “Can we afford this?” My response would be, “Can we afford not to do this?” Our retention of quality employees would rise, if our company could solve this one simple challenge for them. Our reputation for being a great employer in the KC Metro area also would be strengthened.

For these reasons, I urge you to visit us here and then return the home office with a detailed proposal to add this facility. I will make time to introduce you to the wonderful people we employ and to conduct a full analysis of our situation.

Thank you for your time. I hope to hear from you soon.

With warm regards, Margaret Johnson, Facility Manager maj cc: Olivia Rodriguez, CEO baa66869_05_c05_155-190.indd 179 4/25/12 11:48 AM CHAPTER 5 Section 5.5 The Steps and Methods of Persuasion Verbal Channels Many times, persuasion takes place through the use of conversations, speeches, sales pitches, and other prepared remarks. Remember that verbal channels enjoy the benefit of richness, because visual elements combine with verbal cues. Paralanguage\ and gestures can make an argument more compelling.

In face-to-face persuasive attempts, three elements make it possible to influence the audi- ence (see Table 5.6). First, likability grants the opportunity to engage in a less\ -confronta - tional manner. Managers who develop quality relationships with employees may have an easier time convincing them in regard to an issue or change. Second, believability and credibility come from expertise and experience. Successful employees and managers gain an advantage in making convincing arguments to peers and subordinates. Third, bonds grow as you spend more time with the same person. The role of trust in persuasion should not be underestimated.

Table 5.6: Audience persuasion techniques Persuaded by someone you like Persuaded by someone you believe Persuaded by the one who is close Source: Cialdini, R. B. (1984). Influence: The New Psychology of Modern Permission. New York, NY: Quill.

When persuasion targets a group or department, the speaker should first remember that he or she might initially be in the minority. In other words, the audience may be composed of neutral and hostile members. Therefore, for more contentious issues, one strategy is to approach the group not alone, but rather with one other manager who will support your position.

Table 5.7 lists tactics oriented toward groups that focus on social conformity as the motive for change or persuasion. When possible, reliance on an admired individual creates an ally for a persuasive argument. If part of the audience agrees with your vantage point, then peer pressure may serve as a valuable tool to gain acceptance of a point of view.

Societal norms assist arguments that involve the company as a citizen in the community.

Table 5.7: Sources of group persuasion through social conformity Source Motivational Force Admired Individuals Audience impressed by persons of higher rank, high performers, industry leaders, likable individuals Peer Pressure Desire to fit in; common interests; pressure for conformity; group norms Societal Norms Desire to be a good citizen; societal acceptance Source: Larson, C. U. (1992). Persuasion: Reception and Responsibility (6\ th ed.). Belmont, CA: Wadsworth Press. baa66869_05_c05_155-190.indd 180 4/25/12 11:48 AM CHAPTER 5 Section 5.5 The Steps and Methods of Persuasion When making verbal presentations to groups, recall that an effective persuasive speech or verbal proposal involves careful use of several factors: • pitch, volume, and rate of delivery • vocal variety • articulation • pauses and silence • fluency Pitch, volume, and rate of delivery must be maintained within a range fr\ om low to high vocal tones and rates of speech that do not imply feeling intimidated or\ angry, or convey a sense of panic. Vocal variety relies on varying rates of pitch, volume, and rate of speech.

In a manner similar to musical presentation, building to a crescendo involves starting low and slow, and building to a peak or key point. Then a decrescendo slowly lowers rate, pitch, and volume. A persuasive speaker uses these tools to emphasize emotions and key points.

Articulation means speaking clearly and avoiding confusion. Someone who \ mumbles and stumbles quickly loses credibility with the audience. Articulation, for many speakers, involves rate of delivery. By slowing down, it becomes easier to clearly state words and succinctly make an overall argument.

Pauses and silence allow the audience time to process assertions, claims, and supporting evidence. Effective and persuasive presenters rely on silence to punctuate verbal mes - sages. For example, after reaching a crescendo, the speaker can pause for effect, making eye contact with audience members to reinforce the importance of the point he or she just made, and then return to a more conversational tone.

Fluency represents the opposite of distractions and verbal hedges. A presenter who con - tinually says “um,” or “uh,” or repeats words over and over, such as “like,” and “ya know,” sounds disorganized and lacking in confidence. These distractions take away from the power and influence of a presentation designed to change people’s minds. With so many potential approaches, a manager should consider which one best aligns with his or her personal style as he or she employs persuasive strategies and tec\ hniques.

Verbal presentations can be based on three methods of presentation (see Table 5.8). The speaker should choose the approach that best suits the audience and the objective of the presentation. baa66869_05_c05_155-190.indd 181 4/25/12 11:48 AM CHAPTER 5 Section 5.5 The Steps and Methods of Persuasion Table 5.8: Persuasive verbal presentations FormatMethod Problem-Solving (Inductive) Educate audience about the nature of the problem Provide the remedy or solution State the Case and Prove It (Deductive) Develop a central thesis with supporting arguments Provide substantiation and facts Psychological Progressive Pattern Arouse and capture attention Dissatisfy to display the problem Gratify with a recommendation and endorsement Visualize by showing how the recommendation will work Provide an action to take Source: Howell, W. S., & Bormann, E. G. (1971). Presentational Speaking for Business an\ d the Professions. New York, NY: Harper & Row.

Nonverbal elements are relevant as well. A speaker seeking to make a point can use defin - itive gestures, make solid eye contact with audience members, step closer to the audience at key points, and make certain his or her vocal pitch and intensity mat\ ches the body’s posture or other movements. For Review Identify the three primary media used in persuasive messages. Interpersonal Considerations Many academic disciplines study attitudinal change with various objectives in mind. Psy - chology, social psychology, sociology, and business experts have all examined persuasion methods. From these studies, several factors have emerged as interpersonal forces that can aid in making a point and changing a personal or group mindset. The interpersonal considerations identified include:

• liking • reciprocity • social proof • consistency • authority • scarcity As has been noted, when you like someone, it becomes easier for that per\ son to convince you to change your mind. Reciprocity involves an exchange. Persuasion in business set - tings often involves leading the audience to believe there is “something in it for them.” Social proof is much the same as social conformity—we are more likely to be influenced by peers in many communal settings. Consistency reflects reasoning processes that do not baa66869_05_c05_155-190.indd 182 4/25/12 11:48 AM CHAPTER 5 Section 5.6 Chapter Review deviate from previous assertions. A person who makes arguments that are “all over the place” loses credibility due to inconsistent statements. Authority has been noted as one element in persuasion related to ethos. Scarcity can be connected to time constraints. Set- ting deadlines and outlining specific courses of action take advantage of scarcity tactics.

Keys to Persuasion The final element in any persuasion attempt is to review your approach prior to mak - ing any attempt at convincing others. All types of persuasion contain common elements.

Table 5.9 identifies six keys to persuasion.

Table 5.9: Keys to persuasion 1. Know the audience 2. Identify your objectives and the objectives of the audience 3. Present persuasive evidence 4. Keep the argument simple 5. Listen carefully to objections and responses 6. Keep your emotions under control By following these principles, the odds increase that you will influence the views of others through persuasive arguments, while remembering that ultimately the listener persuades him or herself and that your power is limited to your influence.

5.6 Chapter Review A decision is a choice between alternative courses of action. Numerous business and management communication skills affect the quality of the decision-making pro - cess, including listening, effective discussions, creativity, and verbal and written skills for the purposes of implementation. Two primary decision-making models are the rational/analytical thinking approach and intuitive decision-making.

When making decisions, following six well-known steps provides a rational approach.

Decision-makers should state the problem, name limitations, generate alternatives, evalu - ate those alternatives, choose a solution, and prepare a plan of implementation. Creativ - ity represents a key aspect of generating alternatives. Managers should be aware of the pitfalls facing effective decision-making, which include expectations, emotions, employee \ attitudes, company politics, and a mismatch between the decision-maker a\ nd the deci - sion. Critical thinking becomes a part of the decision-making process when inductive or deductive reasoning is used.

When matters arise within a company about which course of action to take\ , persuasion enters into managerial communication processes. A persuasive communication message baa66869_05_c05_155-190.indd 183 4/25/12 11:48 AM CHAPTER 5 Section 5.6 Chapter Review can target people in favor of a position, those opposed, individuals who have n\ ot formed an opinion, and employees who do not know about the issue. Three common persua- sion objectives are to reinforce positive opinion, crystallize latent opinion, and neutral - ize hostile opinion. Desired outcomes include creating new attitudes, modifying existing attitudes, and reinforcing existing attitudes. An attitude summarizes an individual’s posi - tion toward an objective, person, or idea and consists of cognitive, affective, and conative components. Two approaches to persuasion are behaviorism and cognitivism.

The steps of persuasion include preparation, unfreezing attitudes, moving attitudes, and refreezing attitudes. When seeking to move attitudes, logos, pathos, and eth\ os approaches may be employed. Persuasion media include written channels, verbal chann\ els, and a supplemental channel. Written channels consist of letters, memos, emails, and proposals.

Verbal channels include formal face-to-face, phone calls, video or teleconferencing, and meetings. Informal communication offers a method to supplement formal messages.

Key Terms affective component The part of an attitude that is the emotional element. attitude Summarizes an individual’s predispo - sition toward an object, person, or idea. behaviorism An approach to persuasion that focuses on actual behaviors. cognitive component The part of an attitude that results from reasoning processes and exposures to facts. cognitivism An approach to persuasion in which behaviors only serve as indicators of what transpired mentally. conative component The part of an attitude that results in action or behavior. decision A choice between two or more potential courses of action. deductive reasoning Reasoning that moves from general to specific, by process of elimination. ethos An ethical appeal based on expertise or credible information. inductive reasoning Reasoning that moves from specific to general, as one is “led to believe” or conclude that something exists. logos The use of logical appeals to move attitudes. organizational inertia Systematic resistance to change in an organization. pathos An appeal in which the speaker or presenter finds a story, picture, or episode that demonstrates the superiority of his or her position while at the same time evoking emotions. risk Circumstances under which uncertainty is high. uncertainty Situation in which incomplete information is available to the decision-maker. baa66869_05_c05_155-190.indd 184 4/25/12 11:48 AM CHAPTER 5 Section 5.6 Chapter Review For Review With Possible Responses 1. Name and briefly describe three decision-making perspectives. The rational-analytic perspective assumes rational decision-making invol\ ves looking for sensible or logical actions, avoids emotion and bias in judgment, an\ d maximizes or makes the most out of something. Intuitive decision-making may be interp\ reted to be an unconscious process that relies on distilled experience. The garbage can model suggests that decision-making contexts will be complex and at times border on bei\ ng chaotic.

Each leads to a differing evaluation system. Consequently, the degree of disorder plays an important role in how decisions are made. 2. What are the six steps of the decision-making process? The six steps of decision-making are state the problem, name limitations, generate alter - natives, evaluate alternatives, choose a solution, and prepare a plan of implementation. 3. What two issues should managers consider when stating the problem in the decision-making process? First, they should make sure the correct cause of the problem has been identified. Second, when specifying a problem or opportunity, state the issue in a positive fashion or as the desired solution. 4. Name the most common limitations to decision-making. The most common areas in which limitations influence decision-making include time, money, technology, skilled personnel, and organizational inertia. 5. What methods can be used to creatively generate decision alternatives? Methods include brainstorming, nominal groups, analogies, finding the lowest common denominator, and seeking an outside perspective. 6. Explain the relationship between uncertainty and risk when evaluating decision alternatives. Uncertainty means that incomplete information will be available to make \ a decision.

Greater uncertainty means managers have less information and do not know w\ ith con- fidence how the implementation of an alternative will turn out. Risk represents circum- stances under which uncertainty is high. 7. What are the Ws and Hs of decision implementation? Who is in charge? What is to be done? When should each step of implementation take place (timing issues)? Where will the solution be implemented? How should we proceed (sequence of events)? Why are we doing this (explanation to all parties involved in the implementation process)? 8. What factors can disrupt quality decision-making? Expectations, emotions, employee attitudes, company politics, and a mism\ atch between the decision-maker and the decision comprise the primary threats to high-quality decisions. 9. What two forms of critical thinking or reasoning can be used in decision-making? The two types of critical thinking or reasoning processes assist in decision-making are inductive reasoning and deductive reasoning. 10. Briefly describe the three primary persuasion objectives. Three common persuasion objectives are to reinforce positive opinion, crystallize latent opinion, and neutralize hostile opinion. baa66869_05_c05_155-190.indd 185 4/25/12 11:48 AM CHAPTER 5 Section 5.6 Chapter Review 11. Define “attitude” and briefly describe the three main components of attitudes. An attitude summarizes an individual’s predisposition toward an object, person, or idea.

Attitudes contain three components: cognitive, affective, and conative. The cognitive component of an attitude results from reasoning processes and exposures to facts. The affective component of an attitude is the emotional element. The conativ\ e component of an attitude results in action or behavior. 12. What are the two primary approaches to persuasion? The behaviorism approach to persuasion focuses on actual behaviors, assuming the notion that thought processes cannot be observed. Cognitivism suggests that behaviors only serve as indicators of what has first transpired mentally. 13. Name the steps involved in the persuasion process. The steps of persuasion are preparation, unfreezing attitudes, moving attitudes, and refreezing attitudes. 14. Define logos, ethos, and pathos. Logos refers to the use of logical appeals to move attitudes. Ethos refers to an ethical appeal based on expertise or credible information. Pathos involves more than sim- ply being emotional. The speaker or presenter must find a story, picture, or episode that demonstrates the superiority of his or her position while at the sa\ me time evokes emotions. 15. Identify the three primary media used in persuasion. Written channels include letters, memos, emails, and proposals. Verbal channels are formal face-to-face, video- or teleconferencing, virtual and in-person meetings, and vir- tual and in-person presentations. Informal communication constitutes a supplemental channel. Analytical Exercises 1. Explain which decision-making model you believe would be best for the fo\ llow - ing situations: rational or intuitive. Defend your reasoning. a. choosing a movie script for a major Hollywood star b. starting an upscale restaurant in a declining part of a major city c. selecting a new CEO for Amazon.com d. selecting suppliers of automobile batteries, domestic or foreign, for General Motors 2. Use the six steps of decision-making, in complete detail, to analyze one\ of the fol - lowing decisions. a. major recording studio deciding whether to completely stop producing CDs and sell only online b. Subway deciding whether to open in the morning and sell breakfast products c. InBev deciding whether to acquire Miller/Coors lines of beers d. country club deciding to close its golf course due to declining usage an\ d revenues 3. Identify the three potential objectives of persuasion and the three components of attitudes associated with the following situations. Explain the conne\ ctions between the elements.

a. United States military leadership’s decision to endorse the repeal of Don’tb.

Ask, Don’t Tell b. Any major airline’s decision to charge overweight persons for two tickets and seats baa66869_05_c05_155-190.indd 186 4/25/12 11:48 AM CHAPTER 5 Section 5.7 Case Studies c. Local upscale restaurant’s decision to not allow children under the age of 10 to dine d. Company policy to move from three months to six months of paid maternity leave 4. Apply the AIDA model of persuasion to the following situations. Explain how you would employ logos, ethos, or pathos in your presentation and your reason- ing in detail.

a. attempt to unionize employees at Target—union perspective b. attempt to unionize employees at Target—perspective of those opposed c. convincing employees to pay more for company-sponsored health insurance to fend off layoffs d. convincing CEOs with exorbitant salaries to take pay cuts to keep a comp\ any healthy 5. Choose a persuasion medium for each of the following circumstances. Create a plan of presentation for that audience.

a. manager seeking to change the company cafeteria food from fast food to heart-healthy menu items b. convincing an employee to take a promotion that involves moving, when his spouse has a great local job c. persuading buyers of sports equipment to change suppliers of sports clot\ hing in a purchasing group that includes seven separate companies d. selling a combined life insurance/pension plan package to a manufacturin\ g company 5.7 Case Studies Case Study 1: Standard & Poor’s Makes a Decision In August 2011 a major financial rating company, Standard & Poor’s (S&P), downgraded the financial rating of United States treasury bills from AAA to AA+. The following week, stock values on the New York Stock Exchange and in other markets fluctuated wildly, as investors came to grips with the signifi - cant change in the world’s financial landscape.

The decision made by employees at Standard & Poor’s brought to light a variety of issues, among them the methods by which the company reaches its ratings. The same S&P organization had granted AAA ratings to several major financial institutions that failed during the U.S. 2008 financial crisis. Those poor judgments raised questions about the organization’s credibility in the eyes of some observers.

Critics noted that business organizations pay fees to S&P in order to receive various ratings, while governments do not pay such fees. Can a company remain objective when its primary revenues come from the very organizations it rates?

Further, when making the calculations that were part of the downgrade, members of the United States Treasury argued that Standard & Poor’s had made a major math error. A Treasury Department spokesperson told reporters, “A judgment flawed by a $2 trillion error speaks for itself.” The move by S&P followed decisions by two other major ratings agencies, Moody’s Investor Service and Fitch Ratings, to maintain the United States’ AAA rating, though Moody’s assigned a negative outlook. Moody’s and Fitch maintained the rating following the governmental extension of the nation’s credit limit, coupled with elements of debt reduction in a short-term budget bill. (continued) baa66869_05_c05_155-190.indd 187 4/25/12 11:48 AM CHAPTER 5 Section 5.7 Case Studies In response, an S&P spokesperson said, “The downgrade reflects our opinion that the fiscal consoli- dation plan that Congress and the administration recently agreed to falls short of what, in our view, would be necessary to stabilize the government’s medium-term debt dynamics.” The answer further angered some critics, suggesting that the language of the opinion reflected political views rather than an objective analysis of the ability and willingness of the United States government to make all inter - est and principal payments to those holding treasuries.

As the days following the decision unfolded, one of the great ironies was that many investors began taking money out of the stock market. Instead of stocks, many individuals purchased U.S. treasur - ies, believing that they were a safer place to keep money. At the same time, the downgrade created another political football for both sides of the aisle to kick around, with the 2012 elections looming.

Review Questions 1. Assess the S&P decision using rational/analytical and intuitive perspectives. 2. Do you think any of the pitfalls to decision-making affected S&P’s judgment? 3. What type of reasoning, inductive or deductive, might have been used in S&P’s analysis? 4. If you were a government official, what persuasion tactics would you use to lead the company to restore the AAA rating? Case Study 1: Standard & Poor’s Makes a Decision (continued) Case Study 2: A Salty Discussion The average person requires 1,200 to 1,500 milligrams of sodium per day in order to regulate blood pressure and blood volume as well as muscle and nerve functioning. Unfortunately, in the United States most people consume far greater amounts, which can threaten long-term health. Excessive sodium leads to fluid buildup, and aggravates cirrhosis and kidney problems and can contribute to congestive heart failure.

Salt is used in food products because it produces several benefits. First, it adds to taste and flavor. Sec - ond, salt helps preserve the food. It draws away moisture so that bacteria do not grow. Consequently, many food vendors use generous amounts of salt. For example, Van Camp’s Baked Beans contain over 390 milligrams of sodium in a 15 oz can. Typical diet-food frozen dinners have over 500 milligrams per serving. The McDonald’s Big Mac contains over 1,000 milligrams of sodium and the Burger King Whopper has nearly 1,500 milligrams. In fact, a teaspoon of salt added to food as it cooks has 2,300 milligrams of sodium (Medline Plus, 2011). Consequently, a normal diet in the U.S. leads to consump - tion of over 3,000 milligrams of sodium per day.

Several companies have responded to calls for reduced sodium, with limited success. Lays introduced a line of products with the label “Pinch of Salt,” with 75 milligrams per serving, as compared with 270 in a regular bag of Lays chips. However, the product did not sell well enough to stay on the grocery store shelves.

Campbell’s has introduced a product line flavored with sea salt, including low-sodium and less-sodium items. The idea is to maintain flavor while reducing sodium content. The products complement the Healthy Request soup selections offered by the company.

The problem facing Campbell’s and other companies is demand. Some have dismissed the salt situa - tion as the current food paranoia of the month, noting other calls for more healthy food products.

Concerns about fat content, saturated fats, amount of sugar, food colors, artificial flavors, and MSG have all captured the attention of consumers and the media in the past two decades, so the sodium issue may or may not continue to be a major consumer concern. (continued) baa66869_05_c05_155-190.indd 188 4/25/12 11:48 AM CHAPTER 5 Section 5.7 Case Studies In any major grocery store, the number of choices of canned soup seems endless. Campbell’s com- petes with Progresso as well as private-label products. The variety of potential products includes variations of the soup itself (tomato, chicken noodle, etc.), calorie content, fat content, and, more recently, sodium content. Finding a niche in this cluttered marketplace that will support a product with sufficient sales may be difficult.

Review Questions 1. Write a persuasive proposal to continue selling low-sodium products even though sales are disappointing. 2. Prepare a persuasive verbal presentation to top management at Campbell’s to continue selling low-sodium products even though sales are disappointing. 3. Prepare a persuasive proposal to target big box retailers and major grocery chains, convincing them to give better shelf space and additional marketing efforts to low-sodium Campbell’s soup products. 4. Explain the roles of logos, ethos, and pathos in each of the three persuasive proposals. Case Study 2: A Salty Discussion (continued) baa66869_05_c05_155-190.indd 189 4/25/12 11:48 AM CHAPTER 5 baa66869_05_c05_155-190.indd 190 4/25/12 11:48 AM