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Lecture 1: Lecture 1: Foundations of Business and Foundations of Business and Organizational Communication Organizational Communication
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EN3165_LT1 (Foundations of Bus & Org Comm) Presentation for Edit

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Lecture 1:Lecture 1:

Foundations of Business andFoundations of Business and

Organizational CommunicationOrganizational Communication

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Foundations of Business andFoundations of Business and

Organizational CommunicationOrganizational 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

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Foundations of Business andFoundations of Business and

Organizational CommunicationOrganizational Communication

III. Organizational Communication Networks

A. Formal Communication NetworksA. 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

H orizontal information flow 

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Foundations of Business andFoundations of Business and

Organizational CommunicationOrganizational CommunicationA. Formal Communication NetworksA. 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 NetworksB. Informal Communication Networks

1. Grapevine Communication

2. Management by Walking Around (MWA)

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Foundations of Business andFoundations of Business and

Organizational CommunicationOrganizational CommunicationIV. Factors Affecting Communication

Effectiveness

 A. Communication Climate Supportive Climate vs. Defensive Climate

B. Management Styles Theory X

Theory Y

Theory Z

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Foundations of Business andFoundations of Business and

Organizational CommunicationOrganizational Communication

V. Barriers to Effective Communication

VI. Ways to Overcome Barriers

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CommunicationCommunication

Communication:

is a process by which information is exchangedbetween 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)

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Critical Components ofCritical Components of

CommunicationCommunication

1. Source

2. Message

3. Channel

4. Receiver 

5. Feedback

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Critical Components ofCritical Components of

CommunicationCommunication

Source

(Encoder)

Receiver 

(Decoder)Message Channel(s)

Barriers

Feedback

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 Assessment of Communication Assessment of Communication

ChannelChannelMETHODMETHOD ADV ANT AGES ADV ANT AGES DIS ADV ANT AGESDIS ADV ANT AGES

Phone Speed

Permits give-and-take of 

questions

Words and figures might bemisunderstood

No record of conversation Might be interruption of 

ongoing work

In Person Visual

Permits better meeting of 

minds

The time may not beconvenient to you or the otherperson

InformalNote /Memo

Brief 

Can be filed ³for the record´

Permits considered

statement

Greater impact than spoken

words

No immediate reply

 Your memo is at the mercy of aroutine delivery and the bulk of receivers mail, or hisdisinclination to check his in-

box.

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 Assessment of Communication Assessment of Communication

Channel (contd)Channel (contd)

METHODMETHOD ADV ANT AGES ADV ANT AGES DIS ADV ANT AGESDIS ADV ANT AGES

Formal

Report

Complete

Permits time for organizingmaterial

Can be reported to others

 Authoritative

Requires considerable time

E-mail Speed

Reduced cost Convenience

Open communication

Overuse

Lack of privacy Message overload

Less face-to-facecommunication

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Functions of CommunicationFunctions of Communication

in Organizationin Organization

FunctionFunction CharacteristicsCharacteristics

1. To informTo inform Provides needed information to personnel;usually conducted in a written format 

2. To regulateTo regulate Involves the communication that is directedtoward regulatory policies within the

organization; information usually not pleasant 3. To integrateTo integrate Focuses on coordination of task, work

assignment, and group coordination

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Functions of CommunicationFunctions of Communication

in Organization (contin Organization (cont¶¶d)d)

FunctionFunction CharacteristicsCharacteristics

4. To manageTo manage Focuses on getting personnel to do what isneeded, establishing relationships withpersonnel

5. To persuadeTo persuade  Attempts to influence the employee to dosomething in particular

6. To socializeTo socialize Focuses on the individual being integratedinto the communication networks. It meansbeing told whom one should talk to and what one should talk about 

(Sources: Richmond & McCroskey, pp. 24 - 25)

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Three Types of CommunicationThree Types of Communication

FlowFlowTypeType Advantages Advantages

DownwardDownward Lets managers direct activities of 

employees

UpwardUpward Helps managers monitor performance and

obtain ideas

Lateral /Lateral /HorizontalHorizontal

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

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Downward Information FlowDownward Information Flow

Five Elements that Generally FlowFive Elements that Generally Flow

Downward in All Organizations:Downward in All Organizations:

1.Job instruction

2. Rationale - explanation of a duty or assignment

3. Ideology - encourages employees to ³buy into the

organization´ loyalty

4. Information; regulations; changes in benefits

5. Feedback - performance appraisal

Source: Katz and Kahn (1978)

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Downward Information FlowDownward Information Flow

(contd)(contd)Best Bets for ImprovingBest Bets for Improving

Downward Communication:Downward Communication:

1. Small group meetings that permit exchange of information

2. Company publications

3. Supervisory meetings between managers and directsubordinates

4. Mass meetings of employees5. Other methods: bulletin boards, inserts in pay

envelopes, public address announcements, posters,audiovisual presentations

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Upward Information FlowUpward Information Flow

Four Factors that Are Most Likely toFour Factors that Are Most Likely to

Influence Upward Communication:Influence Upward Communication:

1. Positive tone

2. Appropriate time

3. Messages that support current policy

4. Right person

(Sources: Koehler and Huber, 1974)

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Upward Information FlowUpward Information Flow

(contd)(contd)Best Bets for Improving UpwardBest Bets for Improving Upward

Communication:Communication:

1. Informal discussions with one or a few employees

2. Discussions between higher management andfirst-level supervisors

3. Attitude surveys

4. Outside counseling5. Discussions with union representatives

6. Suggestion systems

7. Internal publications with complaint or question /answer columns

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Limitations for FormalLimitations for Formal

Communication NetworkCommunication Network1.Limits lower-level employees¶ access to

decision makers

2.Each link in the communication chain is a

potential source of blockage or distortion

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Limitations for FormalLimitations for Formal

Communication Network (contCommunication Network (cont¶¶d)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%

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Informal CommunicationInformal Communication

NetworksNetworks

Grapevine communication

Contains a mix of business and personal messages

FACTS + ASSUMPTIONS + OPINIONS

Enables the organization to function efficiently

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Communication Climates:Communication Climates:

Supportive (Open)  Vs Defensive (Close)Supportive (Open)  Vs Defensive (Close)

InIn SupportiveSupportive ClimatesClimates InIn DefensiveDefensive ClimateClimate

Managers view themselves andtheir employees as equal

Managers view themselves assuperior

Managers ask questions andanalyze answers

Managers pass judgment 

Communication isstraightforward

Communication is manipulative, fullof hidden meanings and ambiguity

Managers encourage groupproblem solving

Managers impose solutions

Managers are flexible and willingto change their views

Managers are dogmatic and certainabout answers

Managers empathize with

employees

Managers are indifferent to

employees feelings

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Management StylesManagement Styles1. Theory XX (McGregor)

Workers are viewed as lacking motivation, requiringcontrol through fear; closed communication climate

2. Theory Y Y (McGregor)

Workers are viewed as motivated and responsible,deserving encouragement and support; opencommunication climate

3. Theory ZZ (Ouchi)Workers are viewed as part of a family or team; opencommunication climate; participative management

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Barriers to Effective CommunicationBarriers to Effective Communication

A.Climate controlClimate control ± closed or inadequatecommunication climate

B.Emotional interferenceEmotional interference

C. Information overloadInformation overload

D.DefensivenessDefensiveness

E. Poor listening skillsPoor listening skills

F. Cultural differencesCultural differences

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Ways to Overcome BarriersWays to Overcome Barriers A. Foster an open communicationopen communication climate

B.  Avoid defensive reactions

C. Facilitate feedbackfeedback from others by listeningwith open mind

D. Understand interculturalintercultural communication

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~ The End ~