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Chapter One
Establishing a Framework for Business Communication
Introduction
Welcome to Business Communication. In this chapter, we will discuss Establishing a
Framework for Business Communication. The framework includes defining communication,
describing the value of communication in business, understanding the communication
process, and identifying the ultimate objective of the communication process. You’ll learn
how information flows in an organization. And, you will gain an insight into how ethical and
legal restraints, diversity challenges, changing technology, and team environment can shape
and influence the communication process.
[01-01] Value of Communication
Effective business communication is essential for success in today’s work environment.
Communication is the process of exchanging and interpreting information and meaning
between or among individuals through a system of symbols, signs, and behavior.
[01-02] The Communication Process
The Transactional Process Model of Communication illustrates this rather complex process.
Two parties involved in a communication encounter are potentially both communicating at
the same time, especially if the encounter is face-to-face. In face-to-face communications,
one must remember that the parties to the encounter are responding to both verbal and
nonverbal signs. In the ideal situation, one party should be able to encode his or her
message in such a way that the receiving party would understand it exactly as intended. But
this seldom happens.
There are a number of interferences or barriers to effective communication. Some of these
include social, cultural, and gender differences between the receiver and the sender;
physical interferences in the channel, and even the receiver’s or sender’s mood or state of
mind.
[01-03] Communicating Within Organizations
Organizations must create an environment that energizes and encourages employees to
effectively communicate. Organizational communication focuses on the dissemination of
information within the company structure.
[01-03a] Communication Flow in Organizations
Communications in an organization involves both formal and informal networks.
 Formal communication network: It is a network of communication flow typified
by the formal organizational chart; it is dictated by the managerial, technical,
cultural, and structural environment of the organization.
 Informal communication network: It is a network of communication flow that
continuously develops as people interact within the formal system to
accommodate their social and psychological needs. This network is also known as
“the grapevine.”
An informal communication network will emerge from even the most carefully designed
formal system. It is not completely without any value and can be used to counteract rumors
or false information.
The flow of Information within an organization can be downward, upward, or horizontal.
 Downward Communication flows from supervisor to employee, from policy makers
to operating personnel; in other words, from top to bottom on the organizational
chart. Information may include policies and procedures, organizational goals and
strategies, and work assignments. Information on employee development, including
job responsibilities or roles, performance appraisals, constructive criticisms. and
commendations also are examples of downward communication.
 Upward communication generally is employee feedback in response to downward
communication or requests from supervisors. Upward communication keeps
management informed about employees’ attitudes, problems, accomplishments,
and suggestions. Upward communication can be risky to employees, but is a key tool
in keeping employees engaged and informed.
 Horizontal or lateral communication describes interactions between organizational
units that are on the same hierarchical level. Though not often included in
organizational charts, horizontal communication is the primary means of
coordinating functions and achieving both individual and team goals within an
organization.
[01-03b] Levels of Communication
Communication involves sending messages to both large and small audiences within and
outside the organization. Internal messages are intended for recipients within the
organization. External messages are directed to recipients outside the organization.
Communication with an intended audience can take place on five levels:
 Intrapersonal communication, or communication with oneself, is how individuals’
process information based on their own experiences.
 Interpersonal communication takes place when two people communicate with
each other. Their goals are (1) to accomplish the task at hand and (2) to feel better
about themselves because of the interaction. Communication between a
supervisor and subordinate or between two coworkers falls into this category.
 Group communication involves more than two people, such as a project team, a
work group, or a department meeting. Groups are established to accomplish more
than individual efforts could produce.
 Organizational communication involves groups combined in such a way that large
tasks may be accomplished. Their goal is to provide adequate structure for groups
to achieve their purposes.
 Public communication takes place when an organization reaches out to the public
to achieve its goals. Channels for public communication include media
advertisements and corporate websites.
[01-04] Contextual Forces Influencing Business Communication
All communications occurs within a context, which is the situation or setting. Context
influences the content, quality, and the effectiveness of a communication event. Four
important contextual forces influence the communication process and help to determine
and define the nature of the communication that should occur.
[01-04a] Legal and Ethical Constraints
Legal and ethical constraints set the boundaries in which communication occurs.
International, federal, state, and local laws, one’s ethical belief system and personal values,
and as well as to the stakeholders’ interests impact the way business activities are
conducted.
Looking at a problem from both legal and ethical perspectives would be useful to both an
organization and its employees. A particular behavior can be analyzed through a structure
that has four dimensions:
 Behavior that is illegal and unethical
 Behavior that is illegal yet ethical
 Behavior that is legal yet unethical
 Behavior that is both legal and ethical
[1-04b] Diversity Challenges
The second contextual force that influences both local and international business
communication is Diversity Challenges. As a communicator, you must consider the
differences between you and your receiver in areas such as age, culture, gender, and
education. Some of the barriers to intercultural communication include:
 Ethnocentrism: The assumption that one’s own cultural norms are the right way to
do things.
 Stereotypes: The perceptions that one group forms of the main characteristics of
another group.
 Interpretation of time: The way cultures perceive time and its uses.
 Personal space requirements: The way cultures understand “personal space” or
“personal territory.”
 Body language: Cultures define body language. Different gestures have different
meanings in different cultures.
 Translation limitations: Words in one language do not always have an equivalent
in a language.
[01-04c] Changing Technology
Changing Technology is the third contextual force affecting communication. Although
electronic tools have created some amazing opportunities in the business world, they also
have created new obstacles and barriers to communication. Here are some of the ways,
both positive and negative, that technology has impacted communication:
 Technology has made great advances in data collection and analysis. Private
databases allow large amounts of data to be organized and accessed quickly,
accurately, and securely.
 Communication technology has helped create clearer and more effective
messages. Document production is easier, faster, and more professional thanks to
software for word processing, collaborative writing, graphics, desktop publishing,
and multimedia presentations.
 Technology has overcome distance through the use of email, voice mail, fax
machines, cell phones, and electronic conferencing. For many, telecommuting has
moved the office into the home.
 Legal and ethical issues have arisen with the new technologies. Copyright
infringement of documents transmitted over the Internet and invasion of privacy
are two common examples.
 Effective use of communication technologies helps ensure timely, targeted
messages and responses and helps build interpersonal relationships. This
responsiveness leads to positive interactions with colleagues and strong customer
commitment.
[01-04d] Team Environment
Finally, Team Environment acts as a contextual force that impacts communication. Work
teams are helping firms to be more globally competitive. Teams of people working toward a
common goal interact in a peer-to-peer fashion rather than following the more traditional
top-down management style. Teams are thought to be more productive than individuals
because of synergy or the concept that the whole is greater than the sum of the parts.
Employees in self-directed work teams handle a wide array of functions and work with
minimum direct supervision. Some major benefits that arise from this management style
are as follows:
 Teams make members feel happier by causing them to feel that they are shaping
their own jobs.
 Teams increase efficiency by eliminating layers of managers who passed orders
downward.
 Teams enable a company to draw on the skills and imagination of the entire
workforce.
[Your Turn
Review the four contextual forces. As a potential candidate to join the workforce, what are
your strengths and weaknesses?]