Ass. Prof. Dr. Özgür KÖKALAN İstanbul Sabahattin Zaim University

Chapter Objectives 1. Define what communication is 2. Classify types of communication 3. Define what controlling function is 4. Classify types of controlling systems 5-2

Communicating with People To unify the organization’s seperate and different activities, communication acts as the linking means. It helps to direct and modify behavior Effective communication makes the information more productive for the organization in order to attain its goals in more effective and efficient way. Communication is defined as the tansfer of information sender to receiver with the information being understood by the receiver.

(Sender)

Important Issues in Communication Perception; it can be referred to as a filter. The senders or receivers, depending on their senses and cognitive ability, may filter, modify or completely change the proper meaning. Channel; it is the medium that carries messages from sender to receiver. Channel selection is so important because the channels differ in the capacity to carry information. Environmental Condition: The condition in environment influence the flow and transmission of the messages through channels. Noise is considered as an enviromental condition and spoil the messages transmitted.

Types of General Communication There are two types of communication Interpersonal communication; communication between people Organizational communication; communication within the organization.

Interpersonal Communication There are four main types of interpersonal communication. Oral communication; communication transmitted through speeches Written communication; communication transmitted through writing Verbal communication; people communicate messages in the form of words Non-verbal communication; communication through actions and behavior such as gestures, mimics, body language

Types of Organizational Communication There are two important forms of organizational communication Formal communication; communication flows within the chain of command Informal communication; communication outside formal channels of communication.

Types of Formal Communication There are four basic types of communication; Downward communication; it extends from superior to subordinates such as orders, instructions, procedures. Upward communication; it extends from subordinates to superiors such as reports. Horizantal communication; it occurs between employees at the same level in the organizational hierarchy Lateral communication; it occurs between employees on different levels in the organizational hierarchy.

Informal Communication Informal groups in the organization, gossip, rumors create informal communication. It is inevitable so this situation should be perfectly managed. In the time of uncertanity, using this way gives very good results. If used properly, it can be good tool for management to disseminate its messages.

Types of Informal Communication There are two types of informal communication within the organization. Wandering; managers interacting with the employees to exchange information from time to time defines management by wandering around. Grapevine; Employees make informal,face to face personals talks among themselves. This communication is always unofficial in nature.

Controlling Controlling function aims to measure performances within the organizations against the standards and corrective actions necessary to keep the plans on course. It is very closely linked to planning.

Some Forms in Controlling Organizations make controls on events before, during and after they occur. Feed Forward Control: it attempts to identify and prevent deviations before they happen. The purpose is to ensure input quality. Concurrent Control: it attempts to identify deviatio ns and resolves the problems as they happen during the operation stage. Feedback Control: it is the most widely used traditional method that focuses on organizational outputs and solves the problems after they occur. The purpose is to contol the quality of final product or service.

Control Process The process of control consists of four basic steps: Establishing the standards: to make efficient control, performance standards should be clearly stated in the first stage. Measuring actual performance: actual performance depends on the relavant, adequate information provided in the time. Therefore, fast, adequate and relevant information flow is essential within the organization. Comparing actual performances against standards: Taking corrective action if necessary: when controllers find any deviation thay may be harmful, the corrective action should be taken immediately to minimize damages.

Establish Standards Measure Actual Performance Compare Actual Performances Against Standards The Corrective Actions if Necessary

Controlling in Organization Management Control Systems: they are designed to help top managers make control in the overall performance in the organization. Most common overall performance control factors are return on investment (ROI), market share, customer relations, growth, profits. Operational Control Systems: they are designed to monitor the organization’s activities or operations. Break-even analysis and program evaluation and review technique (PERT) are used by manager to make operational control

Financial Control Systems: one of the important tecniques to control organizational performance is through the use of financial control. Based on financial information provided, organization controls its performances. There are two major techniques in financial control systems: Budgets: they are the plans that specify the goals in quantitative terms and serve as a control tool for feedback evaluation. Financial analysis: Evaluation of financial reports and statements to monitor organizational performance can be made through financial analysis. Financial analysis are made through ratios that express the relationship between performance indicators such as profits, assets, sales and inventories.