Chapter 2

1. Chapter 2 Communication in the Workplace Communicating for Results, 10th edition

2. Chapter 2 Objectives • Discuss the differences between formal and informal communication and summarize the importance of messages • Compare and contrast different ways organizations coordinate people • List organizational models, summarize the main benefits of each, and determine which model you would enjoy working for Communicating for Results, 10th edition

3. Organizational Communication in the Workplace • Challenges in an organization not only affect the organization but also impact employees, their families, investors and customers, entire communities, even the nation • Most people will go through many changes in their lives and will work for many different companies • To make effective choices one must understand • Types of internal communication found in workplace • Methods used to coordinate people and groups • Major models used in the workplace today Communicating for Results, 10th edition

4. Formal Communication • Flows along official paths prescribed by organization’s chain of command and shown by organizational chart • Formal messages flow • Downward • Upward • Horizontally Communicating for Results, 10th edition

5. Downward Communication • Formal messages that flow from managers and supervisors down to subordinates • Downward communication adds to employee satisfaction • Can lead to information overload • Employees with information overload not necessarily dissatisfied with their jobs • All employees who experienced information underload were dissatisfied Communicating for Results, 10th edition

6. Downward Communication • A problem with downward communication is that it is often in written form • There are several problems with written messages: • They are usually brief and may omit needed details • Because of need for brevity, memos normally do not include the job rationale • Frame of reference differences make interpretation of messages difficult Communicating for Results, 10th edition

7. Downward Communication • If memos and emails are accompanied by face-to-face communication, message interpretation is improved • Employees at all levels prefer oral communication • Managers prefer to hear it from people they know and like, even if they are less knowledgeable Communicating for Results, 10th edition

8. Upward Communication • Formal messages that flow upward from subordinates to supervisors and managers • The following types of messages are valuable when upwardly communicated: • Reports of employee work, achievements, progress • Outlines of work problems that need to be solved • Suggestions for improvements within department or company • How employees think and feel about their jobs, associates, company Communicating for Results, 10th edition

9. Upward Communication • Effective decision making depends on timely, accurate, and sufficient information traveling upward • If all information reached the top, information overload would hamper management decisions • Some messages need to be screened out or shortened • The problem is how to get the information needed without information overload Communicating for Results, 10th edition

10. Upward Communication • For upward communication to be effective, it must be accurate • Desire to conceal bad news is “MUM effect” • Upward messages more likely to be distorted or withheld when subordinates don’t trust superiors or when subordinates desire upward mobility or recognition • In a high-tech environment, upward feedback must not only be accurate, but must be fast Communicating for Results, 10th edition

11. Horizontal Communication • Messages that flow laterally between people of same rank • Important for coordinating tasks, solving problems, sharing information, resolving conflicts • Especially valuable for difficult or complex problems • Empowered teams • Teams with power to make decisions Communicating for Results, 10th edition

12. Informal Communication • Messages that flow along informal network • Grapevine • Exists because of limited formal networks Communicating for Results, 10th edition

13. Informal Communication • Many view grapevine as unimportant, but research indicates the opposite • Type of information grapevine carries indicates health of organization • Information carried by grapevine is 75-95% accurate • Information carried by grapevine travels fast • People who regularly use grapevine are more satisfied with their jobs and more committed to organization • Effective managers use grapevine Communicating for Results, 10th edition

14. Informal Communication • Two advantages to using informal communication networks • Can get advice and information without formally having to admit we need it • We can “think out loud” about problems, increasing self-confidence and problem-solving ability • Stimulates innovative thinking Communicating for Results, 10th edition

15. Coordination of People and Groups • Organizations must successfully coordinate people and groups to achieve maximum productivity • Organizations use three basic types of coordination • Mutual adjustment • Direct supervision • Standardization Communicating for Results, 10th edition

16. Coordination of People and Groups • Mutual adjustment • Horizontal communication between peers to make work-related decisions • Method is flexible and implemented only when needed • When organization exceeds around 12 members, “process loss” occurs Communicating for Results, 10th edition

17. Coordination of People and Groups • Direct supervision • Supervisor has authority to organized and direct members’ work • Mutual adjustment still used as secondary means of coordinating • More effective way to funnel information and coordinate activities of midsize organizations • Supervisors with more than 50 employees likely to experience information overload trying to keep up with employee needs Communicating for Results, 10th edition

18. Coordination of People and Groups • Standardization • For organizations with over 50 employees, more effective means of coordinating • Initially costly to set up • Once running need for coordination is reduced and system basically runs itself • Direct supervision and mutual adjustment used as secondary coordination when necessary Communicating for Results, 10th edition

19. Coordination of People and Groups • Standardization • Organizations that emphasize standardization are more bureaucratic in nature • In rapidly changing industries, standardization fails to work effectively and usually replaced with more expensive mutual adjustment method Communicating for Results, 10th edition

20. Coordination of People and Groups • The three coordination methods can be viewed as a continuum • Although organizations may use more than one method, single coordination method is primary Communicating for Results, 10th edition

21. Organization Models • Not until beginning of 20th century did anyone pay much attention to internal workings of organizational life • Since that time, theorists have searched for “best way” for organizations in workplace to function • Can get good feel for communication problems unique to organizations by looking at organizational models in use today Communicating for Results, 10th edition

22. Organizational Models • Different kinds of communication encouraged in five organizational models • Each model has its best way to do things • Each model has its strengths and weaknesses • Although each model currently in use, not all fare equally well in today’s diverse global market • Organizations that succeed in today’s changing marketplace may be those that capitalize on diversity; are flexible; are fast at problem-solving and operation start-up; encourage and reward innovation; and make use of new technology Communicating for Results, 10th edition

23. The Traditional (or Classical) Model • Early in 20th century, large organizations were a new phenomenon with no role models except military • Companies managed by hunch or intuition • Attempts to motivate and control employees were inefficient and often inhumane • Two types of organization theorists emerged • Scientific managers who wanted to improve organizations • Bureaucratic managers who felt improvements would occur fastest by dealing first with management problems Communicating for Results, 10th edition

24. Traditional Model and Scientific Managers • Frederick Taylor, U.S. theorist, responsible for popularity of scientific management approach • Taylor observed many of the organizational problems of the day Communicating for Results, 10th edition

25. Traditional Model and Scientific Managers • Taylor’s best way was to apply four scientific principles to problems of production and management • Scientific design of each task • Scientific selection of workers • Adequate training and rewards for productivity • Division of both labor and responsibilities Communicating for Results, 10th edition

26. Traditional Model and Bureaucratic Theorists • Henri Fayol, French mining expert, and Max Weber, German sociologist, were Taylor’s contemporaries • Interested in improving direct supervision through structure and control • Foundation of bureaucratic theory was organizational structure • Organizations must have a clear division of labor • Chain of command is communication structure of organization Communicating for Results, 10th edition

27. Traditional Model and Bureaucratic Theorists • Although theorists favored formal, downward communication, aware of limitations of pyramidal structure • Fayol’s best way was suggestion that direct, horizontal communication be allowed, but only in legitimate crises • This method of bypassing chain of command became known as Fayol’s bridge Communicating for Results, 10th edition

28. Traditional Model and Bureaucratic Theorists • Bureaucratic theorists believed in small span of control • Number of employees manager can effectively supervise • Each employee should only have one manager • Each manager should oversee no more than five or six people Communicating for Results, 10th edition

29. Traditional Model and Bureaucratic Theorists • Despite recommendation of bureaucratic theorists, flat organization has several advantages over tall organization • Complex problems are handled more efficiently • Problems are handled faster • Communication less distorted • Employee morale and satisfaction fairly high Communicating for Results, 10th edition

30. Traditional Model and Bureaucratic Theorists • Tall organizations have following advantage and disadvantages • Uncomplicated tasks handled with more efficiency • Communication less efficient and problems generally take longer to handle • Employee morale and satisfaction fairly low Communicating for Results, 10th edition

31. Traditional Model and Bureaucratic Theorists • Weber’s best way was to formalize the bureaucracy • His most enduring ideas: • Policies and rules of organization should be specified in writing • All decisions and actions should be put in writing • Managers should keep all relationships with employees detached and impersonal • Because authority is limited, formal written rules should be legal basis of authority and control over employees Communicating for Results, 10th edition

32. The Traditional Model in Today’s World • Scientific and bureaucratic theorists have certainly left their mark on modern organizations • Practically every organization uses “some degree of bureaucratic control” • The traditional bureaucratic model is preferred by many nonprofit organizations Communicating for Results, 10th edition

33. The Human Relations Model • In addition to worker and labor union rejection of the traditional organization, by the time of the Great Depression many organizations had their own reasons to welcome human relations movement • Engineering and business schools turning out large numbers of educated, white-collar workers • One of the key ideas of scientific management disproved Communicating for Results, 10th edition

34. Human Relations and Elton Mayo • Hawthorne studies • Conducted by Elton Mayo and Harvard University colleagues between 1927 and 1932 • Substantiated previous findings at Hawthorne plant that changes in task conditions not responsible for increase in productivity • Hawthorne studies reached two conclusions: • Worker attitude affects productivity more than working conditions • Personal relationships also affect productivity Communicating for Results, 10th edition

35. Human Relations and Chester Barnard • Chester Barnard, contemporary of Mayo, former president of New Jersy Bell Telephone Company • Barnard’s best way emphasized importance of communication to organizational success • Acknowledged importance of informal communication • Informal groups within organization establish norms and codes of conduct and provide cohesion, communication, and satisfaction to workers • Recognized economic motives were not the only employee motivators Communicating for Results, 10th edition

36. Human Relations and Chester Barnard • Despite Barnard’s opinion of importance of communication, still viewed it much as scientific managers did • One-way tool to be used by managers for command functions • He urged clearly established, formal communication channels and recommended that bypassing them not be allowed Communicating for Results, 10th edition

37. The Human Relations Model in Today’s World • An open, trusting climate may be easier to implement in small, family-run organizations Communicating for Results, 10th edition

38. The Human Resources Model • Grew out of criticisms and problems of human relations school, and by late 1960s became model in its own right • No clear-cut line between human relations and human resources models – only gradual shift • Douglas McGregor and Rensis Likert started transition by comparing traditional management with human relations model and combining the best of both Communicating for Results, 10th edition

39. The Human Resources Model • Advocates of human resources model liked it because it focused on both increased employee satisfaction and improved organizational decision making • Human resources model emphasized both relational communication and command communication • Raymond Miles may have been first to use term human resources Communicating for Results, 10th edition

40. Human Resources and McGregor’s Theory Y • McGregor critical of businesses following traditional model • Felt traditional model significantly decreased employee performance • When managers believe in traditional model (Theory X), following communication behaviors occur: • Most messages flow downward from managers to subordinates • Upward communication extremely limited • Subordinates fear and distrust management Communicating for Results, 10th edition

41. Comparison of Human Relations and Human Resources Models • McGregor developed series of assumptions – Theory Y • Felt they would produce best managers and inspire employee trust and openness Communicating for Results, 10th edition

42. Comparison of Human Relations and Human Resources Models • The following communication behaviors common when managers adopt Theory Y: • Messages travel up, down, and across organization • Decision making is spread throughout organization • Because feedback is encouraged in upward direction, no supplemental upward system required • Frequent, honest interaction with employees takes place in atmosphere of confidence and trust • Flow of messages downward usually sufficient to satisfy needs of employees • Decision making based on messages from all levels Communicating for Results, 10th edition

43. Comparison of Human Relations and Human Resources Models • McGregor based his theories on Abraham Maslow’s hierarchy of needs • Theory X deals only with the physiological and safety needs of hierarchy • Theory Y covers all five levels of needs Communicating for Results, 10th edition

44. The Human Resources Model in Today’s World • Current application of human resources model has variety of names such as quality control circles or quality circles, cross-functional teams, TQM, employee participation groups, high-performance teams, self-directed teams, or simply teams • Although quality circles and employee teams have been successful in some companies other companies have experienced high failure rate Communicating for Results, 10th edition

45. The Human Resources Model in Today’s World • The following characteristics considered necessary for team success: • Regular training in problem solving and team work • Horizontal communication among departments and flexibility with departments • Employees willing to work • Managers willing to listen to employees • Organizations open to change • Rapid management response to suggestions • Cooperation between management and unions Communicating for Results, 10th edition

46. The Systems/Contingency Model • Contend that there is no one best way • Joan Woodward found no relationship between any type of management principle and organizational effectiveness • Upon reexamination, she found the effectiveness of certain management principles depended on the type of industry Communicating for Results, 10th edition

47. The Systems/Contingency Model • No organizational model will fit all organizations • Both systems theory and contingency theory grew out of general systems theory • Introduced by German biologist Ludwig von Bertalanfy • Rests on idea that whole is more than sum of its parts • Each part must be considered as it interacts with, changes, and is changed by every other part within the system • Parts or subsystems of system are assumed to be interdependent and it is primarily through communication that this interdependence is facilitated Communicating for Results, 10th edition

48. Systems Theory • Strengths of systems theory: • Recognizes interdependence of all parts of an organization • Acknowledges both formal and informal communication as central to an organization’s success • Integrates biases of traditional and human relations models and gives them equal weight Communicating for Results, 10th edition

49. Systems Theory • Daniel Katz and Robert Kahn referred to organizations as open systems • Open system has flexible boundaries that allow communication to flow easily in and out of organization • People who link organization with outsiders are boundary spanners Communicating for Results, 10th edition

50. Contingency Theory • Evolved from general systems theory • Still being developed • Several versions, but all have same basic belief: • “No one type of organizational structure or leadership style is most appropriate for all situations” • Adaptability is required Communicating for Results, 10th edition