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Lecture 1:
Foundations of Business and
Organizational Communication
Foundations of Business and
Organizational Communication
I. The Communication Connection
A. Communication
B. Organizational Communication
II. The Nature of Communication
A. Critical Components of Communication
B. Functions of Communication in Organization
2
Foundations of Business and
Organizational Communication
III. Organizational Communication Networks
A. Formal Communication Networks
1.
Three Types of Communication Flow
 Downward information flow
 Elements that flow downward
 Best bets to improve downward communication
 Upward information flow
 Factors that allow upward communication to be
effective
 Best bets to improve upward communication
 Horizontal information flow
3
Foundations of Business and
Organizational Communication
A. Formal Communication Networks
2.
Limitations for Formal Communication Network


Limit Lower-level employees’ access to decision makers
Each link in the communication chain is a potential
source of blockage or distortion
B. Informal Communication Networks
1.
Grapevine Communication
2.
Management by Walking Around (MWA)
4
Foundations of Business and
Organizational Communication
IV. Factors Affecting Communication
Effectiveness
A. Communication Climate

Supportive Climate vs. Defensive Climate
B. Management Styles



Theory X
Theory Y
Theory Z
5
Foundations of Business and
Organizational Communication
V.
Barriers to Effective Communication
VI.
Ways to Overcome Barriers
6
Communication
Communication:
is a process by which information is exchanged
between or among individuals through a common
system of symbols, signs, and behavior -resulting in shared meanings between sender and
receiver
(Source: Richardmond V., & McCroskey, J., 1992, p19)
7
Organizational Communication
Organizational Communication:



Communication which originates within organization
Communication: A process through which people act
together, create, sustain, and manage meanings
through the use of verbal and non-verbal signs and
symbols within a particular context.
Interpersonal & Organizational Dimensions
Source: Conrad, C. (1994). Strategic organizational communication: Toward the
twenty-first century. (3rd ed.)., p.3.
8
Critical Components of
Communication
1.
2.
3.
4.
5.
Source
Message
Channel
Receiver
Feedback
9
Critical Components of
Communication
Barriers
Source
(Encoder)
Receiver
Message
Channel(s)
(Decoder)
Feedback
10
Assessment of Communication
Channel
METHOD
Phone
ADVANTAGES


Speed
Permits give-and-take of
questions
DISADVANTAGES



In Person


Informal
Note /
Memo




Visual
Permits better meeting of
minds

Brief
Can be filed “for the record”
Permits considered
statement
Greater impact than spoken
words


Words and figures might be
misunderstood
No record of conversation
Might be interruption of
ongoing work
The time may not be
convenient to you or the other
person
No immediate reply
Your memo is at the mercy of a
routine delivery and the bulk of
receiver’s mail, or his
disinclination to check his inbox.
11
Assessment of Communication
Channel (cont’d)
METHOD
Formal
Report
ADVANTAGES




E-mail




DISADVANTAGES
Complete
Permits time for organizing
material
Can be reported to others
Authoritative

Speed
Reduced cost
Convenience
Open communication




Requires considerable time
Overuse
Lack of privacy
Message overload
Less face-to-face
communication
12
Functions of Communication
in Organization
Function
Characteristics
1. To inform
Provides needed information to personnel;
usually conducted in a written format
2. To regulate
Involves the communication that is directed
toward regulatory policies within the
organization; information usually not pleasant
3. To integrate
Focuses on coordination of task, work
assignment, and group coordination
13
Functions of Communication
in Organization (cont’d)
Function
Characteristics
4. To manage
Focuses on getting personnel to do what is
needed, establishing relationships with
personnel
5. To persuade
Attempts to influence the employee to do
something in particular
6. To socialize
Focuses on the individual being integrated
into the communication networks. It means
being told whom one should talk to and what
one should talk about
(Sources: Richmond & McCroskey, pp. 24 - 25)
14
Three Types of Communication
Flow
Type
Advantages
Downward
 Lets managers direct activities of
employees
Upward
 Helps managers monitor performance and
obtain ideas
Lateral /
Horizontal
 Promotes flow between departments or
among peers
 Helps employees to do their job efficiently
 Depends on the degree of cross-functional
interaction required by the organization 15
Downward Information Flow
Five Elements that Generally Flow
Downward in All Organizations:
1. Job instruction
2. Rationale - explanation of a duty or assignment
3. Ideology - encourages employees to “buy into the
organization”  loyalty
4. Information; regulations; changes in benefits
5. Feedback - performance appraisal
Source: Katz and Kahn (1978)
16
Downward Information Flow
(cont’d)
Best Bets for Improving
Downward Communication:
1. Small group meetings that permit exchange of
information
2. Company publications
3. Supervisory meetings between managers and direct
subordinates
4. Mass meetings of employees
5. Other methods: bulletin boards, inserts in pay
envelopes, public address announcements, posters,
audiovisual presentations
17
Upward Information Flow
Four Factors that Are Most Likely to
Influence Upward Communication:
1.
2.
3.
4.
Positive tone
Appropriate time
Messages that support current policy
Right person
(Sources: Koehler and Huber, 1974)
18
Upward Information Flow
(cont’d)
Best Bets for Improving Upward
Communication:
1. Informal discussions with one or a few employees
2. Discussions between higher management and
first-level supervisors
3. Attitude surveys
4. Outside counseling
5. Discussions with union representatives
6. Suggestion systems
7. Internal publications with complaint or question /
answer columns
19
Limitations for Formal
Communication Network
1. Limits lower-level employees’ access to
decision makers
2.Each link in the communication chain is a
potential source of blockage or distortion
20
Limitations for Formal
Communication Network (cont’d)
Example:
The amount of information loss
Board of Directors 100%

Vice Presidents 63%

General Supervisors 56%

Plant Managers 40%

General Foremen 30%

Workers 20%
21
Informal Communication
Networks
Grapevine communication

Contains a mix of business and personal messages

FACTS + ASSUMPTIONS + OPINIONS

Enables the organization to function efficiently
22
Communication Climates:
Supportive (Open) Vs Defensive (Close)
In Supportive Climates






Managers view themselves and
their employees as equal
Managers ask questions and
analyze answers
Communication is
straightforward
Managers encourage group
problem solving
Managers are flexible and willing
to change their views
Managers empathize with
employees
In Defensive Climate






Managers view themselves as
superior
Managers pass judgment
Communication is manipulative, full
of hidden meanings and ambiguity
Managers impose solutions
Managers are dogmatic and certain
about answers
Managers are indifferent to
employees’ feelings
23
Management Styles
1. Theory X (McGregor)
Workers are viewed as lacking motivation, requiring
control through fear; closed communication climate
2. Theory Y (McGregor)
Workers are viewed as motivated and responsible,
deserving encouragement and support; open
communication climate
3. Theory Z (Ouchi)
Workers are viewed as part of a family or team; open
communication climate; participative management
24
Barriers to Effective Communication
A. Climate control – closed or inadequate
communication climate
B. Emotional interference
C. Information overload
D. Defensiveness
E. Poor listening skills
F. Cultural differences
25
Ways to Overcome Barriers
A. Foster an open communication climate
B. Avoid defensive reactions
C. Facilitate feedback from others by listening
with open mind
D. Understand intercultural communication
26
~ The End ~
27