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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 McGraw-Hill © 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. McGraw-Hill © 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 McGraw-Hill © 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 McGraw-Hill © 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