Download Business ethics

Chapter 1
Lecture Slides
Establishing a Framework
for Business Communication
Business Communication, 15e
Lehman and DuFrene
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
The Communication Process
Communication - meaningful exchange of
information between or among individuals through a
common system of signals, signs, and behaviors.
Purposes: To inform, to persuade, or to entertain
The Communication Process
Communication Process Model
Chapter 1
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
Communication Channels
Chapter 1
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
Information Richness and
Communication Media
Managers and their subordinates can become
effective communicators by selecting the
appropriate medium for each message — there
is no one “best”
Information Richness is the amount of
information that a communication medium (email, in person, etc) can carry
Information Richness of
Communication Media
Barriers to Effective
Communication:
• Sender uses words unknown to receiver
• Messages are ambiguous or confusing
• Nonverbals contradict verbal messages
• Mannerisms (“uhhh”), errors, or dress distract
• Receiver has preconceived notions
• NOISE, both internal and external
Chapter 1
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
Levels of Communication
Continued
Chapter 1
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
Levels of Communication
Chapter 1
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
Formal vs. Informal Communication
Formal Organizational Communication – Follows the
organizational chart…Downward, Upward, or Lateral
Mainly via “Serial” Communication:
1. A communicates message to B
2. B communicates interpretation of A’s message to C
3. C communicates interpretation of B’s interpretation
of A’s message to D
4. Originator (A) and ultimate recipient of message (D)
are separated by middle people
.
Formal vs. Informal Communication
Informal Organizational Communication – Does not
follow the organizational chart…friend to friend
Grapevine - the informal network:
1. Springs up and is used irregularly within the
organization
2. Is not controlled by top executives, who may not
even be able to influence it
3. Exists largely to serve the self-interests of the
people within it
4. Responsible for about 70% of the communication
at a company
.
Flow of Information Within an Organization
Chapter 1
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
Communication Differences
Between Men & Women
Q. What types of differences have you seen
between men’s and women’s
communication styles:
– Talking?
– Listening?
– Writing?
– Non-Verbals?
Communication Differences
Between Men & Women
MEN
• Talk to emphasize status,
power, and independence.
• Complain that women talk
on and on.
• Communicate to fix
problems.
• Boast about their
accomplishments.
• Are more direct
WOMEN
• Talk to establish
connection and intimacy.
• Criticize men for not
listening.
• Speak of problems to
promote closeness.
• Express empathy and
understanding.
• Are less direct
Summary - Forms of Communication
Strategic Forces Influencing
Business Communication (page 17)
Chapter 1
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
Ethics
Ethics - The inner-guiding moral principles,
values, and beliefs that people use to analyze
or interpret a situation and then decide what is
the “right” or appropriate way to behave
* There are no absolute or indisputable rules or
principles that can be developed to decide if an
action is ethical or unethical (the halo and the $)
4-17
Business Ethics
• Business ethics - standards of business conduct
and moral values.
• Ethical Dilemma - quandary people find
themselves in when they have to decide if they
should act in a way that might help another person
even though doing so might go against their own
self-interest
• Stakeholders – Groups and individuals to which
businesses influence and are influenced by
Types of Company Stakeholders
4-19
What Causes Unethical Behavior?
 Excessive emphasis on Profits
 Loyalty to company over personal ethics
 Desire for personal advancement
 “It’s not wrong if I don’t get caught!”
 Unethical Leadership – “the fish stinks from the head”
 The gray area
 Unwillingness to take a stand for what you know is right
4-20
Business Ethics:
Perceptions vs. Reality
What makes the news
 High profile investigations and arrests in
headlines: Enron, Martha Stewart, Worldcom,
Arthur Anderson, Madoff
 CEO’s with huge salaries (portrayed as villains)
 Individual retirements and pensions wiped out
 Customers ripped off
 Jobs going overseas
Business Ethics:
Perceptions vs. Reality
What the Reality Is
 Companies aren’t ethical or unethical…people are!
 The majority of all people running companies are
ethical (Grandma check)
 Rip-offs are newsworthy; business as usual isn’t
 Jobs going overseas often save jobs in the U.S.
and may help the U.S economy
 CEO salaries are a product of Capitalism
Ethics in Business Decision Making
Business decision making must account for:
1. Legal obligations – companies and their
employees must comply with the laws
governing their business and individuals in
society (this is NOT the same thing as Ethics!)
2. Ethics – the RIGHT thing to do (based upon
some criteria)
3. Business Performance – businesses must
maximize their profits, sales, growth, etc.
The Relationship Between Ethics
and Business Performance
Q. Do you believe that companies are
rewarded by consumers for ethical
behavior or punished by consumers for
unethical behavior?
Q. If you could, would you sell $3 ice scrapers
for $10 each during a snowstorm?
The Relation Between Ethics and
Business Performance
Ethical behavior by companies will result in:
 Increased Customer Loyalty/Advocacy = $’s
 Increased Employee Trust/Morale/Loyalty = $’s
 Better Public Reputation = sales increases = $’s
 Reduced lawsuits and government intervention = $’s
 Feeling good about doing the right thing!
Diversity – Barriers to
Intercultural Communication
• Ethnocentrism
• Stereotypes
• Chronemics (interpretation of time)
• Proxemics – personal space
• Kinesics – body language
• Lack of multilingualism
Chapter 1
Business Communication, 15th edition by Lehman and DuFrene
Copyright
2008 by Thomson/South-Western
Comparing Work Groups & Work Teams
Q. When you hear the words “Group” and
“Team”, what differences come to mind?
Comparing Work Groups &
Work Teams
Work Group – A group that interacts primarily for
sharing information and making decisions to help
each member perform within their area of
responsibility
Work Team - a group whose members influence
one another toward accomplishment of objectives
and whose combined efforts is greater than the
sum of individual efforts (synergy… 1 + 1 = 3!)
.
Comparing Work Groups & Work Teams
A Leader’s goal must be to turn their group
into a team!
Team Diversity Advantages & Disadvantages
Team A – Team members are very similar in terms of
age, race, and gender
Team B – Team members are widely diverse in terms
of age, race, and gender
Q. Which team would perform better in the near term?
Q. Which team would perform better in the long term?
Teamwork in the U.S.
Q. Growing up, was more importance
placed for you on individual
performance or teamwork?
Q. In what ways is teamwork taught,
encouraged, or rewarded in the U.S.?
Characteristics of Effective Teams
Q. What are some Characteristics of
Effective Teams?
Characteristics of Effective Teams
Trust among members!
Compensation and recognition rewards team output
Individuals have confidence in all team members
Task conflicts rather than interpersonal conflicts
Loafing is self-regulated and not tolerated
Generally have less than 10 members & odd numbers
Feel supported and appreciated by upper
management and secure about the group’s future
Characteristics of Effective Teams
Individuals all prefer to be part of a team
Are Diverse = greater effectiveness in the long run
Varied experiences and abilities
Positive personality traits across all team members
Individuals cooperate fully, but are still competitive
Work is satisfying and challenging
Individuals are flexible and cross-trainable
Good communication—from management to the team
as well as within the team