Managing Communication

Managing Communication
Chapter 15 Managing Communication

Communication Complexity
Communication is a complex process that requires constant attention so that intended messages are sent and received. Communication is essential to management; it is the process through which things get done in organizations. Defining communication is relatively simple, but achieving high-quality communication is both complicated and difficult.

The Process of Communication
Communication is a process that involves the transmission of meaningful information from one party to another through the use of shared symbols. Communication is successful when meaning is understood.

Elements in the Communication Process
Purpose 1. Understanding 2. Prompt action Social context Noise Noise Channel Using symbols in a form the other person will understand Sender Encoding Message Decoding Receiver What do these symbols mean Feedback Noise Noise

Basic Elements in the Communication Process
Social Context The setting in which the communication takes place. Sender and Message Encoding: The process that translates the sender’s ideas into a systematic set of symbols or a language expressing the communicator’s purpose.

Messages and Channel Messages The tangible forms of coded symbols that are intended to give a particular meaning to the information or data. Channel The carrier of the message or the means by which the message is sent.

Receiver Decoding The translation of received messages into interpreted meanings. Feedback The process of verifying messages and the receiver’s attempts to ensure that the message he or she decoded is what the sender really meant to convey.

Noise Any internal or external interference or distraction with the intended message that can cause distortion in the sending and receiving of messages.

Managing Organizational Communications
Face-to-Face Communication Electronic Communication Written Communication Informal Communication 3

Nonverbal Communication
Kinesic behavior, or body motion, such as gestures, facial expressions, and eye behavior. Physical characteristics, such as body shape, physique, posture, height, and weight. Paralanguage, such as voice quality, speech rate, pitch, and laughing.

Technological Communication
A broad category of communication components that are rapidly influencing how managers communicate. Types of Technological Communication Telecommuting The practice of working at a remote site by using a computer linked to a central office or other employment location.

Technological Communication
Types of Technological Communication (cont.) Electronic mail ( ) A computer-based system that allows individuals to exchange and store messages through computerized text-processing and communication networks. Video conferencing An umbrella term referring to technologies that use live video to unite widely dispersed company operations.

Barriers to Effective Communication
Barriers can disrupt the accurate transmission of information. These barriers take different forms: Sender barrier Encoding barrier Communication channel barrier Decoding barrier Receiver barrier Feedback barrier Noise barrier Don’t understand symbols

Barriers to Effective Communication
Diversity Frame of Reference Selective Listening Value Judgments Source Creditability Status Differences Time Pressures Filtering Overload

Barriers to Effective Communications
Cross-Cultural Diversity When senders and receivers come from different cultural backgrounds, breakdowns in the communication process are more likely. Ethnocentrism - The tendency to consider one’s own culture and its values as being superior to others. Trust and Credibility Trust and credibility between the sender and receiver must be established.

Information Overload Managers and organizations can experience information overload when the amount of information that can be processed is exceeded. Language Characteristics Many words and phrases in our language are imprecise. Individuals often use different meanings or interpretations of the same word and do not realize it.

Gender Differences Gender differences can result in breakdowns and lead to distorted communication and misunderstandings between men and women. Other Factors Time pressures may cause us to focus on information that helps us make a choice quickly. Feedback may be impaired or absent.

Communication Channels
Formal Communication Channels Formal communication follows the chain of command and is recognized as official. Direction of Flow One way to view formal communication within organizations is to examine how it flows - vertically and horizontally.

Communication Flows Vertical Communication
The flow of information both up and down the chain of command. Downward communication Messages sent from individuals at higher levels of the organization to those at lower levels. Upward communication Messages sent up the line from subordinates to managers.

Communication Flows Horizontal Communication
The flow of information that occurs both within and between departments. Spontaneous Communication Channels Opportunistic and informal communication paths that arise from the social relationships that evolve in the organization.

Communication Flows Grapevine
An informal method of transmitting information depicted as the wandering of messages throughout the organization.

Developing Quality Feedback Skills
The process of verifying messages from the sender. Through feedback, communication becomes a dynamic, two-way process, rather than just an event. The emotional impact of feedback varies according to how personally it is focused.

Communication Channels Ranked by Information Richness
Richest Channel Physical presence (face-to-face, meetings) Best for non-routine, ambiguous, difficult messages Interactive channels (telephone, electronic media, voice mail, ) Personal static channels (memos, letters, reports tailored to receiver) Best for routine, clear, simple messages Impersonal static channels (fliers, bulletins, generalized reports) Leanest Channel

Developing Constructive Feedback Skills
Give feedback that is specific rather than general. Focus feedback on behavior rather than the person, and focus it on behavior that can be changed. Keep personality traits out of your feedback by focusing on what rather than who. Feedback should be given as soon as possible.

Developing Constructive Feedback Skills
Provide feedback using descriptive information about what the person said or did. Avoid feedback using evaluative inferences about motives, intent, or feelings. Ensure privacy when giving feedback about negative behaviors. Give feedback when the receiver appears ready to accept it.

Guidelines for Active Listening
Do create a supportive atmosphere. Do listen for feelings as well as words. Do note cues. Do occasionally test for understanding. Do demonstrate acceptance and understanding. Do ask exploratory, open-ended questions. Don’t try to change the other’s views. Don’t solve the problem for the speaker. Don’t give advice. Don’t pass judgment. Don’t explain or interpret others’ behavior. Don’t give false reassurances. Don’t attack if the speaker is hostile. Don’t ask “why” the feelings.

Advanced Listening Skills
Guidelines For Effective Listening Listen for message content. Listen for feelings. Respond to feelings. Be sensitive to both the nonverbal and the verbal content of messages. Reflect back to the sender, in your own words, what you think you are hearing.

Advanced Listening Skills
Guidelines for Effective Listening Be attentive and listen to understand, not to reply. Be patient. Don’t interrupt the speaker. Take time to digest what has been said before responding.

Applications of Management Perspectives: For the Manager
Use your listening skills when dealing with an employee who has an issue that is emotional in nature. Try to understand the issue from the employee’s perspective. If it is necessary to give negative feedback, make sure that the behavior being criticized is one the employee is able to control.

Applications of Management Perspectives: For Managing Teams
If you are part of a virtual team it is important to schedule periodic face-to-face meetings in order to build team spirit and trust. Without trust, there can be misunderstandings and teams are likely to be short-lived. Make sure individual team members and the team as a whole receive performance feedback. Give team members customer feedback.

Applications of Management Perspectives: For Individuals
Look for ways to practice presentation skills by speaking to different audiences. Find ways to enhance your credibility so that people want to listen to what you have to say. Act with integrity around other employees. Make sure your actions are consistent with your verbal messages.

Communication Competency Challenges
Expect to be misunderstood by at least some listeners and readers. Expect to misunderstand others. Strive to reduce the degree of such misunderstandings, but never expect total elimination of them or the ability to anticipate all possible outcomes.

Organizational Control Operational Management
Chapter 16 & 17 Organizational Control and Operational Management

Management Challenges After reading this chapter, you should be able to:
Define operations management and its three stages: inputs, conversion, and disposition. Describe how operations management ensures supplies of inputs and an efficient production system. Use tools of operations management, including Gantt charts, PERT networks, and statistical process tools.

Management Challenges (continued)
Explain the role of quality management in the operations management process. Understand and apply the principles of total quality management, kaizen, just-in-time manufacturing, and kanban to the production process.

What is Operations Management?
Operations management is the process an organization uses to: Obtain the materials or ideas for the product it provides. Transform the materials or ideas into the product. Provide the final product to a user. Operations management is closely linked to: Strategic Management Planning Information Systems Management McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

The Operations Management Process
Inputs Conversion Outputs Raw materials Labor Energy Knowledge Facility Capacity Process Control Goods Services Information

Inputs are the supplies needed to create a product. Materials requirements planning: analyzing a design to determine the materials and parts required in the production process. Inventory: the stock of raw materials, inputs, and component parts that the firm keeps on hand. Inputs Raw materials Labor Energy Knowledge

Transformation The stage in which the product’s inputs are converted to the final product. An effective conversion process: Works to lower the cost of creating the product Create a better product for the same or less cost. Inputs Conversion Raw materials Labor Energy Knowledge Facility Capacity Process Control

Inputs Conversion Key decision areas: Designing the process Monitoring the process Raw materials Labor Energy Knowledge Facility Capacity Process Control

The Conversion Process
The stage in which the product’s inputs are converted to the final product. An effective conversion process: Works to lower the cost of creating the product; or to Create a better product for the same cost. Key decision areas: Designing the process Monitoring the process

Inputs Conversion Outputs Raw materials Labor Energy Knowledge Facility Capacity Process Control Goods Services Information

Disposition of the Product
Order review / release (ORR) activity: used to evaluate and track the order through the process: Creating order documentation. Material checking. Capacity evaluation. Load leveling. The order must be checked to verify it is complete.

Acquiring Inputs Inputs are the supplies needed to create a product.
Materials requirements planning: analyzing a design to determine the materials and parts required in the production process. Inventory: the stock of raw materials, inputs, and component parts that the firm keeps on hand.

Skills for Operations Management
Organization Skills Analytical Problem Solving Skills Communication Skills 3

Operations management is closely linked to:
Strategic Management (Chapter 7) Planning (Chapter 8) Information Systems Management (Chapter 16)

Strategic management decisions involved in operations management:
Make-buy analysis: whether to produce an item or to purchase it. Capacity: firm’s ability to produce the product during a given period. Facilities: design and location of an operations facility. Process: how a product or a service will be produced. Facilities layout design: physical arrange-ment that allows for efficient production

Designing the Process Process design begins with analyzing the general operation and identifying: Every major step that needs to be done. The order that the steps must take. The flow of the steps from start to finish (including their relationship to each other). The amount of time each individual step requires.

Example of Process Analysis Information
Step Order Relation to Other Steps Time A. Get permit 1 None 4 weeks B. Order equipment 1 week C. Paint interior 2 2 weeks D. Install electrical fixtures 3 Following C E. Install floors 4 F. Install equipment 5 Following B, E G. Test equipment 6 Following F

Process Design Tools Gantt Charts: provide a visual sequence of the process steps. Load Charts: type of Gantt chart based on departments or specific resources that are used in the process. Program Evaluation and Review Technique (PERT) Network: tool for analyzing the conversion process.

Gantt Chart Load Chart WEEKS Start 1 2 3 4 5 Start 1 2 3 4 5
Get permit Order baking equipment Paint interior Install electrical fixtures Install floors Install baking equipment Test equipment Gantt Chart Start Office Staff Order department Painter Electrician Carpenter Load Chart

Example of a PERT Network
Get permit 1 4 1 Start Order baking equipment Install baking equipment Test equipment 1 1 1 1 Paint interior Install floors Install electrical fixtures 1 1

Organizational Control
Control is the process of comparing performance to standards and taking corrective action. It ensures that: standards are met errors are limited quality is acceptable products are safe the company is performing at the highest possible level Control is closely associated with planning. The systematic process to regulate organizational activities to make them consistent with the expectations Did we do what we said we were going to? McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Organizational Control Defined
The systematic process through which managers regulate organizational activities to make them consistent with the expectations established in plans and to help them achieve all predetermined standards of performance. results Ensuring org. is being run as planned Did we do what we said we were going to?

Process of Control Slide 1 of 3
Setting Standards for Performance Whenever possible, the standards should be set in a manner that allows them to be compared with actual performance. Measuring Actual Performance An organization must decide: What to measure. When to measure. How frequently to measure.

Process of Control Slide 2 of 3
Comparing Actual Performance With Standards This step involves determining if actual performance compared to standards falls within acceptable limits. Responding to Deviations If the deviation from performance is unacceptable, then corrective action is warranted. If the deviation is acceptable, no correction action is necessary.

If deviations are acceptable If deviations are unacceptable
Process of Control If deviations are acceptable Take no corrective action Set performance standards Measure actual performance Compare performance with standards If deviations are unacceptable Take corrective action

Process of Control Strategic Goal Tactical (Functional) Goal Operational Goal Individual/Task Goal Closes the planning loop --begins with setting objectives/goals If deviations are acceptable Take no corrective action Set performance standards Measure actual performance Compare performance with standards If deviations are unacceptable Take corrective action Specific, measurable

Process of Control quality chart on time delivery customer satisfaction productivity If deviations are acceptable Take no corrective action Set performance standards Measure actual performance Compare performance with standards If deviations are unacceptable Take corrective action budgets income statement environmental audit

Process of Control If deviations are acceptable Take no corrective action Set performance standards Measure actual performance Compare performance with standards If deviations are unacceptable Take corrective action Process equipment procedures

Control System Design Issues
Do they measure what we want? - Variety - Anticipation - Sensitivity - Feedback reporting - Cost - Reliability - Process importance Take no corrective action Set performance standards Measure actual performance Compare performance with standards Take corrective action Effectiveness - Complete - Related to strategy - Objective / subjective measures - Timely - Acceptable Select focal point

The Role of Productivity and Quality
A measure of the efficiency with which a firm transforms inputs into outputs, calculated as output divided by input. outputs Productivity = inputs

Types of Bureaucratic Control
Feedforward control Designed to prevent problems before they occur Concurrent control Takes place as the work process is being carried out Feedback control Occurs after a process has been completed McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Formal and Outcome-Focused Control
The regulation of performance by applying the standards or guidelines to the outcomes of a process through: Market control - the use of indicators of market values as standards for regulating performance Financial controls - the use of various monetary measures to regulate performance McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Types of Financial Controls
Balance Sheet Income Statement Cash Flow Budgetary Control Financial Statements Activity-Based Costing Financial Ratios ROE ROA ROI receiving and processing orders expediting supplies and production distribution McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Types of Financial Controls (cont.)
Budgetary control - used to specify amounts to be expended for various activities or events Can help managers control and predict costs Financial Statements - tools that are used to assess and control the financial health of an organization Balance sheets Profit and loss (income) statements McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Types of Financial Controls (cont.)
Financial Ratios - provide an overall check of performance Liquidity ratios - an organization’s ability to pay short-term debt Leverage ratios - the amount of funds available in an organization from shareholders and creditors Profitability ratios - indicate the amount of financial return from an investment McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Activity-Based Costing - associates costs with tasks
calculated for: receiving and processing sales orders expediting supplies and production distribution resolving errors and problems

The Balanced Scorecard
A balanced scorecard is a technique designed to control and improve: customer service learning and growth finance internal business processes Links strategy to action Is more broad than bureaucratic control McGraw-Hill © 2004 The McGraw-Hill Companies, Inc. All rights reserved.

Managing Quality Top management must make improvement in productivity a strategic objective of the firm. Top management must also be sure that managers from different areas of the firm work together to increase efficiency. A more efficient production process lowers production costs, increases profitability, may lead to lower prices, and attract new customers.

Quality – Defined by the customer
Managing Quality Quality – Defined by the customer End customer or Individual(s) who receive the output Consumer Perspective Defined as the degree to which the product or service meets the expectations of the customer. Producer Perspective Defined as the degree to which the product or service conforms to specifications. lowers production costs, increases profitability, may lead to lower prices, and attract new customers.

Total Quality Management (TQM)
A systematic approach for enhancing products, services, processes, and operational quality control.

Continuous improvement should be main objectives of operations management. Each worker is responsible for improving quality. Quality circles. quality gap – the difference between what customers want and what they actually get from the company.

Continuous improvement of the production sequence should be one of the main objectives of operations management. Total Quality Management (TQM) – based on the belief that all of an organization’s activities need to be focused on improving its product.

Total Quality Management (TQM) (continued)
Management and TQM Correct variances in operations management by using TQM principles to find and correct their source. Employees and TQM Operations managers must be sure their employees understand what TQM means and that each worker is responsible for improving quality. Managers must also be willing to act on any suggestions or problems that employees identify. Quality circles.

Total Quality Management (TQM) (continued)
Customers and TQM Operations management can focus on improving the quality gap – the difference between what customers want and what they actually get from the company. Suppliers and TQM Suppliers are seen as partners with the firm. TQM and the Production Process Operations management uses TQM techniques to focus on, and improve the production process.

Managing Quality (continued)
Total Quality Management (TQM) Kaizen (Continuous Improvement) and Efficiency Just-in-Time Systems Process Engineering

Kaizen (Continuous Improvement) and Efficiency
The Japanese process of continuous improvement in the organization’s production system from numerous small, incremental improvements in production processes. One of the main principles of kaizen is reducing waste in materials, inventory, production steps, and activities that do not add value.

Just-in-Time (JIT) Systems
Just-in-time (JIT) – the concept behind creating the firm’s product in the least amount of time. Close coordination between manufacturers, suppliers, and customers. The firm’s inventory of inputs are kept at the lowest level possible. Inputs arrive at the organization when, not before, they are needed.

Process Reengineering
Method of changing the entire production process rather than making incremental changes. Involves fundamentally rethinking and radically redesigning the entire process including: Cutting out steps that are not needed. Reducing paperwork.

Process Monitoring Tools
Acceptance Sampling Statistical Process Control Total Factor Productivity Partial Productivity 3

Statistical Process Control Tools
Pareto Analysis Check Sheets Process Flow Analysis Cause-and-Effect Diagrams Process Capability Measures Control Charts

Design Factors Affecting Control System Quality Slide 1 of 3
The Amount of Variety in the Control System Variety refers to the number of activities, processes, or items that are measured and controlled. Law of requisite variety Control systems must have enough variety to cope with the variety in the systems they are trying to control.

Ability to Anticipate Problems If a deviation can be anticipated before it occurs, corrective action can be instituted more quickly and the negative consequences of the deviation reduced. Sensitivity of the Measuring Device Care must be taken to use a device that is sensitive enough to adequately measure the system being controlled.

Composition of Feedback Reports Variance reporting Highlighting only those things that fail to meet the established standards. Management by exception Focusing on the elements that are not meeting the standards.

Managing Information Systems
Chapter 17 Managing Information Systems

GOOD LUCK GETTING READY FOR THE FINAL

Management Challenges (continued)
Understand the role of software and how its development is changing business operations. Discuss the ethical issues involved with the use of computer technology. Understand how productivity, efficiency, and responsiveness to customers can be improved with information technology.

Management Challenges After reading this chapter, you should be able to:
Understand the difference between data and information, and how firms use each to achieve organizational goals. Comprehend the components of a firm’s information technology. Compare different types of networks, including local area networks, intranets, extranets, and the Internet.

This chapter looks at information from two perspectives:
How the firm’s information systems and information technology are part of management. How management systems are used by managers.

Management Skills for Information Systems Management
Analytical Skills. Managers need to be able to gather, synthesize, and compare data about their firms and about the options available to them. Organizational Skills. Managers need to be able to make sense of information by organizing data to facilitate analysis and comparison. Flexibility and Innovation Skills. Managers must be able to be flexible in adapting standard business practices to new information technologies.

Data and Information Data: raw facts, such as the number of items sold or the number of hours worked in a department. Information: data that have been gathered and converted into a meaningful context. Databases: computer programs that assign multiple characteristics to data and allow users to sort the data by characteristic.

Data and Information (continued)
Data warehouses: massive databases that contain almost all of the information about a firm’s operations. Data mining: the process of determining the relevant factors in the accumulated data to extract the data that are important to the user.

Information Technology
Technology is the means of transforming inputs into products. Technology has improved operations management, including productivity, efficiency, and customer responsiveness. A firm’s information technology may incorporate its operations technology.

LAN WAN Network of Networks Local Area Networks Extranets Internet
Computer Networks Links to suppliers, customers, etc. LAN WAN Local Area Networks Extranets Internet Intranets Network of Networks Local, uses standards of Web- HR, Notice Boards 3

Enterprise Resource Planning (ERP) Software
Combines all of a firm’s computerized functions into a single, integrated software program that runs off a single database. This allows various departments to easily share information and communicate with each other.

Companies decide to implement ERP for three main reasons:
To integrate financial data by providing one set of numbers for the company’s finance department, sales department, and individual business units. To standardize manufacturing processes, so that a firm with multiple business units can save time, increase productivity, and reduce staff. To standardize human resources information about employees and communicating information about benefits and services.

Using computer systems entails new management issues:
Computer Ethics. The analysis of the nature and social impact of computer technology and the development of policies for its appropriate use. Security. Controlling access to and transmission of data and information contained in the firm’s network.

Ten Commandments for Computer Ethics
Thou shalt not use a computer to harm other people. Thou shalt not interfere with other people’s computer work. Thou shalt not snoop around in other people’s files. Thou shalt not use a computer to steal. Thou shalt not use a computer to bear false witness.

Ten Commandments for Computer Ethics (continued)
Thou shalt not use or copy software for which you have not paid. Thou shalt not use other people’s computer resources without authorization. Thou shalt not appropriate other people’s intellectual output. Thou shalt think about the social consequences of the program you write. Thou shalt use a computer in ways that show consideration and respect.

Information Systems Information systems combine computers, other hardware, software, and human resources to manipulate data into useable information. Operations information systems: Process control systems Office automation systems Transaction-processing systems Expert systems Attempts to mimic the decision making process of experts, e.g.. Doctors

Management Information Systems
Management information system (MIS): an information system that provides information to managers to use in making decisions. Types of MIS used by businesses: Information reporting systems Decision support systems Group decision support systems Executive information systems

Factors for Successful MIS Implementation
User involvement Management support Time and cost evaluations Phased implementation Thorough testing Training and documentation System backup

Effect of Management Information Systems on the Firm
Information technology is helping managers to: Coordinate and control the activities of their organization. Make better decisions. Computer-based information systems have become central components of many organizations’ structures. Effective information systems have become a source of competitive advantage.

MIS and Organizational Structure
Flatter management hierarchies. Horizontal information flows now viable. Reduction in time to make management decisions. Reduction in the number of employees needed to perform many organizational activities. Elimination of barriers between departments.

MIS and Competitive Advantage
Increased organizational efficiency. Greater responsiveness to customers. Improved customer service: Personalized customer service. Improved product support. Enhanced entry to new markets. Use of new distribution channels. Greater ability to enter joint ventures, partnerships, and strategic alliances.

Applications of Computer-Based Information Systems
Management Information Systems (MIS) Focuses on the routine, structured, regular reporting and information requirements of the organization. Decision Support Systems (DSS) Computer-based information system that uses imbedded analytical models to assist decision makers in analyzing and solving semistructured problems.

Electronic Data Interchange (EDI)
Telecommunications Electronic Data Interchange (EDI) Electronic transmission of transaction data using telecommunications. Electronic Funds Transfer (EFT) Electronic manipulation of financial transactions.

Electronic Mail and Electronic Commerce (E-Commerce)
A computer-based system that allows individuals to exchange and store messages through computerized text-processing and communication networks. Electronic Commerce The process of buying and selling goods and services electronically with computerized business transactions.

Artificial Intelligence (AI)
Refers to the process of developing computers systems that can behave intelligently. Expert system - that contains knowledge about a specific, relatively narrow, complex application. Robotics - machines with humanlike characteristics, such as dexterity, movement, vision, and strength.

Telecommuting Telecommuting The practice of working at a remote site by using a computer linked to a central office or other employment location.

Office Automation Systems for office automation are typically computer-based information systems that assist the organization in the processing, storage, collection, and transmission of electronic documents and messages among individuals, work groups, and organizations.

Components of Office Automation Slide 1 of 3
Electronic Work and Training Telecommuting Multimedia Electronic Documents and Image Processing Systems Word processing Desktop publishing Document management

Guidelines for Successful Managers of the Future Slide 1 of 2
Understand the importance of quality information that is obtained in a timely fashion. Employ information systems capable of providing quality information that is both timely and complete. Are able to use that information to their advantage in the organizational decision-making process.

Guidelines for Successful Managers of the Future Slide 2 of 2
Are well versed in the latest technological innovations for information gathering, processing, and disseminating. Are aware of the impact of information technology on management efficiency, organizational social relationships, and organizational structure. Are aware of the limitations of computer-based information systems.

On to the Final

Managing Communication

Similar presentations

Presentation on theme: "Managing Communication"— Presentation transcript:

Similar presentations

About project

Feedback

Log in

Auth with social network:

Managing Communication

Similar presentations

Presentation on theme: "Managing Communication"— Presentation transcript:

Similar presentations

About project

Feedback