Download Business in Global Markets

Ass. Prof. Dr. Özgür KÖKALAN
İstanbul Sabahattin Zaim University
Chapter Objectives
1.
2.
3.
4.
Define what communication is
Classify types of communication
Define what controlling function is
Classify types of controlling systems
5-2
Communicating with People
 To unify the organization’s seperate and different activities,
communication acts as the linking means.
 It helps to direct and modify behavior
 Effective communication makes the information more
productive for the organization in order to attain its goals
in more effective and efficient way.
 Communication is defined as the tansfer of information
sender to receiver with the information being understood
by the receiver.
(Sender)
Important Issues in Communication
 Perception; it can be referred to as a filter. The senders or
receivers, depending on their senses and cognitive ability,
may filter, modify or completely change the proper
meaning .
 Channel; it is the medium that carries messages from
sender to receiver. Channel selection is so important
because the channels differ in the capacity to carry
information.
 Environmental
Condition:
The
condition
in
environment influence the flow and transmission of the
messages through channels. Noise is considered as an
enviromental condition and spoil the messages
transmitted.
Types of General Communication
 There are two types of communication
 Interpersonal
communication;
communication
between people
 Organizational communication; communication
within the organization.
Interpersonal Communication
 There are four main types of interpersonal
communication .
 Oral communication; communication transmitted
through speeches
 Written communication; communication transmitted
through writing
 Verbal
communication;
people
communicate
messages in the form of words
 Non-verbal communication; communication through
actions and behavior such as gestures, mimics, body
language
Types of Organizational Communication
 There are two important forms of organizational
communication
 Formal communication; communication flows within
the chain of command
 Informal communication; communication outside
formal channels of communication.
Types of Formal Communication
 There are four basic types of communication;
 Downward communication; it extends from superior
to subordinates such as orders, instructions, procedures.
 Upward communication; it extends from subordinates
to superiors such as reports.
 Horizantal communication; it occurs between
employees at the same level in the organizational
hierarchy
 Lateral communication; it occurs between employees
on different levels in the organizational hierarchy.
Informal Communication
 Informal groups in the organization, gossip, rumors
create informal communication.
 It is inevitable so this situation should be perfectly
managed .
 In the time of uncertanity, using this way gives very
good results.
 If used properly, it can be good tool for management to
disseminate its messages.
Types of Informal Communication
 There are two types of informal communication within
the organization.
 Wandering; managers interacting with the employees
to exchange information from time to time defines
management by wandering around.
 Grapevine; Employees make informal,face to face
personals talks among themselves. This communication
is always unofficial in nature.
Controlling
 Controlling function aims to measure performances
within the organizations against the standards and
corrective actions necessary to keep the plans on
course.
 It is very closely linked to planning.
Some Forms in Controlling
 Organizations make controls on events before, during
and after they occur.
 Feed Forward Control: it attempts to identify and
prevent deviations before they happen. The purpose is
to ensure input quality.
 Concurrent Control: it attempts to identify deviatio ns
and resolves the problems as they happen during the
operation stage.
 Feedback Control: it is the most widely used
traditional method that focuses on organizational
outputs and solves the problems after they occur. The
purpose is to contol the quality of final product or
service.
Control Process
 The process of control consists of four basic steps:
 Establishing the standards: to make efficient control,
performance standards should be clearly stated in the
first stage.
 Measuring actual performance: actual performance
depends on the relavant, adequate information provided
in the time. Therefore, fast, adequate and relevant
information flow is essential within the organization.
 Comparing actual performances against standards:
 Taking corrective action if necessary: when
controllers find any deviation thay may be harmful, the
corrective action should be taken immediately to
minimize damages.
Establish
Standards
Measure
Actual
Performance
Compare
Actual
Performances
Against
Standards
The
Corrective
Actions if
Necessary
Controlling in Organization
 Management Control Systems: they are designed to
help top managers make control in the overall
performance in the organization.
 Most common overall performance control factors are
return on investment (ROI), market share, customer
relations, growth, profits.
 Operational Control Systems: they are designed to
monitor the organization’s activities or operations.
 Break-even analysis and program evaluation and review
technique (PERT) are used by manager to make
operational control
 Financial Control Systems: one of the important
tecniques to control organizational performance is
through the use of financial control. Based on
financial information provided, organization controls
its performances. There are two major techniques in
financial control systems:
 Budgets: they are the plans that specify the goals in
quantitative terms and serve as a control tool for
feedback evaluation.
 Financial analysis: Evaluation of financial reports and
statements to monitor organizational performance can
be made through financial analysis. Financial analysis
are made through ratios that express the relationship
between performance indicators such as profits, assets,
sales and inventories.