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Chapter 15
Managing
Communication
Communication Complexity
Communication is a complex process
that requires constant attention so that
intended messages are sent and received.
Communication is essential to
management; it is the process through
which things get done in organizations.
Defining communication is
relatively simple, but achieving
high-quality communication is
both complicated and difficult.
The Process of Communication
• Communication is a process that
involves the transmission of
meaningful information from one
party to another through the use of
shared symbols.
• Communication is successful when
meaning is understood.
Elements in the Communication Process
Purpose
1. Understanding
2. Prompt action
Sender
Encoding
Noise
Noise
Noise
Using
a
Message symbols
Decoding in Receiver
form the other person
What
do
these
will understand
Feedback symbols mean
Noise
Nonverbal Communication
Kinesic behavior, or body motion, such
as gestures, facial expressions, and
eye behavior.
Physical characteristics, such as body
shape, physique, posture, height, and
weight.
Paralanguage, such as voice quality,
speech rate, pitch, and laughing.
Barriers to Effective Communication
• Barriers can disrupt the accurate
transmission of information.
• These barriers take different forms:
–Sender barrier
Don’t understand
–Encoding barrier
symbols
–Communication channel barrier
–Decoding barrier
–Receiver barrier
–Feedback barrier
–Noise barrier
Barriers to Effective Communication
Diversity
Frame of
Reference
Selective
Listening
Value
Judgments
Filtering
Source
Creditability
Status
Differences
Time
Pressures
Overload
Communication Channels Ranked by
Information Richness
Richest
Channel
Leanest
Channel
Physical presence
(face-to-face, meetings)
Interactive channels
(telephone, electronic media,
voice mail, e-mail)
Personal static channels
(memos, letters, reports
tailored to receiver)
Impersonal static channels
(fliers, bulletins, generalized
reports)
Best for nonroutine,
ambiguous,
difficult
messages
Best for
routine, clear,
simple
messages
Developing Constructive Feedback Skills
– Give feedback that is specific rather
than general.
– Focus feedback on behavior rather than
the person, and focus it on behavior that
can be changed.
– Keep personality traits out of your
feedback by focusing on what rather
than who.
– Feedback should be given as
soon as possible.
Developing Constructive Feedback Skills
– Provide feedback using descriptive
information about what the person said
or did.
– Avoid feedback using evaluative
inferences about motives, intent, or
feelings.
– Ensure privacy when giving feedback
about negative behaviors.
– Give feedback when the receiver
appears ready to accept it.
Guidelines for Active Listening
• Do create a supportive
atmosphere.
• Do listen for feelings as well
as words.
• Do note cues.
• Do occasionally test for
understanding.
• Do demonstrate acceptance
and understanding.
• Do ask exploratory, openended questions.
• Don’t try to change the other’s
views.
• Don’t solve the problem for the
speaker.
• Don’t give advice.
• Don’t pass judgment.
• Don’t explain or interpret
others’ behavior.
• Don’t give false reassurances.
• Don’t attack if the speaker is
hostile.
• Don’t ask “why” the feelings.
Communication Competency
Challenges
• Expect to be misunderstood by at least some
listeners and readers.
• Expect to misunderstand others.
• Strive to reduce the degree of such
misunderstandings, but never expect total
elimination of them or the ability to
anticipate all possible outcomes.
Chapter 16 & 17
Organizational Control
and
Operational Management
What is Operations Management?
• Operations management is the process an
organization uses to:
Obtain the materials or ideas for the product it
provides.
Transform the materials or ideas into the product.
Provide the final product to a user.
• Operations management is closely linked
to:
Strategic Management
Planning
Information Systems Management
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
The Operations Management Process
Inputs
Raw materials
Labor
Energy
Knowledge
• Inputs are the supplies needed to
create a product.
• Materials requirements
planning: analyzing a design to
determine the materials and parts
required in the production
process.
• Inventory: the stock of raw
materials, inputs, and component
parts that the firm keeps on
hand.
The Operations Management Process
Inputs
Raw materials
Labor
Energy
Knowledge
Transformation
• The stage in which
Conversion
the product’s inputs
are converted to the
Facility
final product.
Capacity • An effective
conversion process:
Process
– Works to lower the
Control
cost of creating the
product
– Create a better
product for the same
or less cost.
The Operations Management Process
Inputs
Conversion
Raw materials
Facility
Labor
Capacity
Energy
Process
Knowledge
Control
• Key decision
areas:
– Designing the
process
– Monitoring the
process
The Operations Management Process
Inputs
Conversion
Outputs
Raw materials
Facility
Goods
Labor
Capacity
Services
Energy
Process
Information
Knowledge
Control
Strategic management decisions
involved in operations management:
• Make-buy analysis: whether to produce an
item or to purchase it.
• Capacity: firm’s ability to produce the product
during a given period.
• Facilities: design and location of an
operations facility.
• Process: how a product or a service will be
produced.
• Facilities layout design: physical arrangement that allows for efficient production
Designing the Process
• Process design begins with analyzing the
general operation and identifying:
– Every major step that needs to be done.
– The order that the steps must take.
– The flow of the steps from start to finish
(including their relationship to each other).
– The amount of time each individual step
requires.
Process Design Tools
• Gantt Charts: provide a visual sequence of
the process steps.
• Load Charts: type of Gantt chart based on
departments or specific resources that are
used in the process.
• Program Evaluation and Review
Technique (PERT) Network: tool for
analyzing the conversion process.
WEEKS
Gantt Chart
Start
1
2
3
Get permit
----------------------------------------------------
Order baking equipment
-------------------
Paint interior
-----------------------------
Install electrical fixtures
------------
Install floors
------------
4
5
-----------
Install baking equipment
-----------
Test equipment
Load Chart
Start
Office Staff
-------------------
Order department
-------------------
Painter
-----------------------------
1
2
3
4
5
Electrician
----------------------------------
Carpenter
------------
Example of a PERT Network
Get permit
1
4
Start
1 Order baking equipment
1
Install baking equipment
1
1
Paint interior
1
1
Install floors
Install electrical
fixtures
1
Test
equipment
Organizational Control
• Control is the process of comparing
performance to standards and taking
corrective action. The systematic process
to regulate
• It ensures that:
activities
standards
are met
Did
we
doorganizational
what
we
errors are limited to make them
consistent
with the
quality iswe
acceptable
said
were
going
products are safe expectations
the company is performing at the highest possible
to?
level
• Control is closely associated with planning.
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Process of Control
If deviations are
acceptable
Take no
corrective
action
Set
performance
standards
Measure
actual
performance
Compare
performance
with
standards
If deviations are
unacceptable
Take
corrective
action
Process of Control
Strategic Goal
Closes(Functional)
the planning
loop
Tactical
Goal
--begins with
Operational
Goalsetting
Individual/Task
Goal
objectives/goals
Set
performance
standards
Measure
actual
performance
Compare
performance
with
standards
Specific, measurable
If deviations are
acceptable
Take no
corrective
action
If deviations are
unacceptable
Take
corrective
action
Process of Control
If deviations are
acceptable
Take no
corrective
action
Set
performance
standards
Measure
actual
performance
Compare
performance
with
standards
If deviations are
unacceptable
Take
corrective
action
Process of Control
quality chart
If deviations are
acceptable
on time delivery
customer satisfaction Take no
corrective
productivity
action
Set
performance
standards
Measure
actual
performance
Compare
performance
with
standards
If deviations are
unacceptable
budgets
income statement
environmental audit
Take
corrective
action
Process of Control
If deviations are
acceptable
Take no
corrective
action
Set
performance
standards
Measure
actual
performance
Compare
performance
with
standards
If deviations are
unacceptable
Take
corrective
action
Process of Control
If deviations are
acceptable
Take no
corrective
action
Set
performance
standards
Measure
actual
performance
Compare
performance
with
standards
If deviations are
unacceptable
Process
equipment
procedures
Take
corrective
action
The Role of Productivity and Quality
• Productivity
– A measure of the efficiency with which a
firm transforms inputs into outputs,
calculated as output divided by input.
outputs
Productivity = inputs
Types of Bureaucratic Control
• Feedforward control
Designed to prevent problems before they
occur
• Concurrent control
–Takes place as the work process is being
carried out
• Feedback control
–Occurs after a process has been completed
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Types of Financial ControlsBalance Sheet
Income Statement
Cash Flow
Budgetary Control
Financial Ratios
ROE
ROA
ROI
McGraw-Hill
Financial Statements
Activity-Based
Costing
receiving and processing
orders expediting supplies
and production distribution
© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
The Balanced Scorecard
• A balanced scorecard is a technique
designed to control and improve:
customer service
learning and growth
finance
internal business processes
• Links strategy to action
• Is more broad than bureaucratic
control
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© 2004 The McGraw-Hill Companies, Inc. All rights reserved.
Managing Quality
Quality – Defined by the customer
End customer or
Individual(s) who receive the output
• Consumer Perspective
– Defined as the degree to which the product or service
meets the expectations of the customer.
• Producer Perspective
– Defined as the degree to which the product or service
conforms to specifications.
lowers production costs, increases
profitability, may lead to lower
prices, and attract new customers.
Total Quality Management
(TQM)
• A systematic approach for
enhancing products,
services, processes, and
operational quality
control.
Total Quality Management (TQM)
• Continuous improvement should be main
objectives of operations management.
• Each worker is responsible for improving
quality.
– Quality circles.
– quality gap – the difference between
what customers want and what they
actually get from the company.
Kaizen (Continuous
Improvement) and Efficiency
• The Japanese process of continuous
improvement in the organization’s
production system from numerous small,
incremental improvements in production
processes.
• One of the main principles of kaizen is
reducing waste in materials, inventory,
production steps, and activities that do not
add value.
Just-in-Time
(JIT) Systems
• Just-in-time (JIT) – the concept behind
creating the firm’s product in the least
amount of time.
• Close coordination between
manufacturers, suppliers, and customers.
• The firm’s inventory of inputs are kept at
the lowest level possible.
• Inputs arrive at the organization when, not
before, they are needed.
Process Reengineering
• Method of changing the entire production
process rather than making incremental
changes.
• Involves fundamentally rethinking and
radically redesigning the entire process
including:
– Cutting out steps that are not needed.
– Reducing paperwork.
Statistical Process Control Tools
Check Sheets
Pareto
Analysis
Process Flow
Analysis
Cause-andEffect Diagrams
Control
Charts
Process
Capability
Measures
Chapter 17
Managing
Information
Systems
GOOD LUCK
GETTING READY
FOR THE
FINAL
Management Skills for Information Systems
Management
• Analytical Skills. Managers need to be able to
gather, synthesize, and compare data about
their firms and about the options available to
them.
• Organizational Skills. Managers need to be
able to make sense of information by
organizing data to facilitate analysis and
comparison.
• Flexibility and Innovation Skills. Managers
must be able to be flexible in adapting standard
business practices to new information
technologies.
Data and Information
• Data: raw facts, such as the number of
items sold or the number of hours worked in
a department.
• Information: data that have been gathered
and converted into a meaningful context.
• Databases: computer programs that assign
multiple characteristics to data and allow
users to sort the data by characteristic.
Data and Information (continued)
• Data warehouses: massive databases that
contain almost all of the information
about a firm’s operations.
• Data mining: the process of determining
the relevant factors in the accumulated data
to extract the data that are important to the
user.
Information Technology
• Technology is the means of transforming
inputs into products.
• Technology has improved operations
management, including productivity,
efficiency, and customer responsiveness.
• A firm’s information technology may
incorporate its operations technology.
Computer Networks
LAN
Local Area
Networks
Links to
WAN
suppliers,
customers,
Extranets
etc.
Internet
Intranets
Network
of
Networks
Local, uses standards of
Web- HR, Notice Boards
Enterprise Resource Planning (ERP) Software
• Combines all of a firm’s computerized
functions into a single, integrated software
program that runs off a single database.
• This allows various departments to easily
share information and communicate with
each other.
Information Systems
• Information systems combine computers,
other hardware, software, and human
resources to manipulate data into useable
information.
• Operations information systems:
– Process control systems
– Office automation systems
– Transaction-processing systems
• Expert systems Attempts to mimic the decision
making process of experts, e.g.. Doctors
Management Information Systems
• Management information system (MIS):
an information system that provides
information to managers to use in making
decisions.
• Types of MIS used by businesses:
–
–
–
–
Information reporting systems
Decision support systems
Group decision support systems
Executive information systems
Applications of Computer-Based
Information Systems
• Management Information Systems (MIS)
– Focuses on the routine, structured, regular
reporting and information requirements of the
organization.
• Decision Support Systems (DSS)
– Computer-based information system that uses
imbedded analytical models to assist decision
makers in analyzing and solving semistructured
problems.
Telecommuting
• Telecommuting
–The practice of working at a
remote site by using a computer
linked to a central office or other
employment location.
On to the
Final