COMMUNICATION IN ORGANISATIONS

By the end of this unit you shouldbe able to:

Discuss the characteristics of a formal organization

Explain vertical and horizontal communication in an organization

Demonstrate understanding of the systems and networks functional in an organization

Explain the role of informal communications within an organization

Understand the nature of barriers to communication in an organization

Demonstrate understanding of group dynamics

ORGANISATON CHARTST Electronics Plc

C.E.O

MANAGING DIRECTOR

PA

PRODUCTION DIRECTO PURCHASING DIRECTORSALES DIRECTORHUMAN RESOURCES DIRECTOR

TRAINING MANAGER

PERSONAL MANAGER

CUSTOMER SERVICES

SALES MANSGER

MARKETING MANAGER

PURCHASES ACCOUNTS

SALES ACCOUNTS

Introduction An organization is a system of

individuals who work together to achieve, through a hierarchy of ranks and division of labour, common goals.

Communication is the lifeblood of an organization. If we could somehow remove communication flows from an organization, we would not have an organization.

It functions as both the lubricant to allow the free flow of ideas and the cement to solidify working relations.

Communication encompasses all the means, both formal and informal, by which information is passed up, down, and across the network of managers and employees in a business.

These various modes of communication may be used to disseminate official information between employees and management, to exchange hearsay and rumors, or anything in between.

EFFECTIVE VS. INEFFECTIVE COMMUNICATIONS

There are many reasons why business organizations need effective communication in order to survive.

Perhaps the importance of good communication is best understood by considering what things would be like in its absence.

The lack of such exchange of information and opinion can have very disruptive consequences:

Departments can begin to feel isolated from the firm

Individuals can lose interest in the way the organization is developing

If workers are not kept informed about changes in policy about matters such as staffing, policy and conditions of service, it is quite likely that industrial action of some kind may result

In cases where employees are left unsatisfied, such instances can lead to monetary losses for the companies.

Communications —both internally and externally—must be open, timely, complete, and accurate to keep a business running smoothly and to maximize its returns on its human capital.

Types of Business Communication

There are two types of business

communication in an organization:

Internal Communication External Communication

Internal Communication Communication within an

organization is called “Internal Communication”.

It includes all communication within an organization. It may be an informal or a formal function or department providing communication in various forms to employees.

Effective internal communication is a vital mean of addressing organizational concerns.

Good communication may help to increase job satisfaction, safety, productivity, and profits and decrease grievances and turnover.

Communication Systems and Networks

Communication systems

Large organizations usually have clearly defined systems of communications.

The organizational communication system/structure is what defines the pathways through which messages flow

Communication networks An organization’s communication network

operates within the larger system, but it is the communication network that shapes and controls all other systems.

This means that understanding the communication network is the key to managing and controlling most aspects of the organization.

Communication networks refer to the regular patterns of interaction among people who comprise the organization and to a systematic flow of information.

Organizations can function efficiently only if they create a system of networks that specify who will communicate with whom.

The two types of networks that exist are:

Formal network of communication Informal network of communication

Formal Communication Network Definition: Communication through officiallydesignated channels of message flowbetween organization positions. The management of an organization lays

down the formal communication network, usually found in organizational charts, policy manuals, or hierarchical structures which show the hierarchy of command.

The formal network is also labeled as the chain of command, i.e. the reporting lines that are reflected in a company’s organizational structure.

Formal communication has the following

characteristics: A defined organizational structure Unity of command, i.e. there is only

one superior A chain of command – the span of

control depends on the number of subordinates the superior has

Information in an organization flows in three

directions:Vertically (Downwards,

Upwards)HorizontallyDiagonally

1) Vertical a) Downwards The most frequent form of

communication within an organization where higher levels communicate with the staff below them, telling them what is important (mission) and what is valued (policies).

Messages on policies and decisions originate with the top hierarchy and they flow down through managers and supervisors to lower levels.

Downward communication generally provides enabling information – which allows a subordinate to do something.

In this category are communications such as memos, notices, in-house news letters, job instructions, job rationales, procedures and practices information, feedback, and indoctrination.

This type of communication is needed in an organization to:Transmit vital informationGive instructionsEncourage 2-way discussionAnnounce decisionsSeek cooperationProvide motivationBoost moraleIncrease efficiencyObtain feedback

Advantages: EfficientFast

Disadvantages

The line of command from the top to the lower levels are sometimes too long

It is a one way communication so there is no opportunity for immediate feedback

Managerial control

b) Upward Communication

Definition: Transmission of messages from

lower to higher levels of the organization

(such as communication initiated by

subordinates with their superiors, or

employees to management).

Upward communication is as equally important as downward.

Without upward communication, management works in a vacuum, not knowing if messages have been received properly, or if other problems exist in the organization.

By definition, communication is a two-way affair. Yet for effective two-way organizational communication to occur, it must begin from the bottom.

Channels of communications include face-to-face talks, memos, reports, e-mails and phone messages.

Upward Communication is a means for staff to: Exchange informationOffer ideasExpress enthusiasmAchieve job satisfactionProvide feedbackDiscuss problems with superiorsDiscuss job related problemsSort out unsolved work problems Seek solutions to recurring conflictsDiscuss steps for quicker completion of

projects

Advantages: promotes morale among all

employees “open door” policy builds trust within

an organization Distrustful and scheming employees

can be converted into productive individuals

Open communication helps in improving the quality of work produced

Disadvantages: Not enough superiors encourage

subordinates to communicate upward They may be a distortion of

information by people of lower hierarchical levels when communicating to persons of higher rank

Lower levels may just want to please/impress the boss for a promotion

2) Horizontal /Lateral Communication

Definition: Flow of messages across functional areas at a given level of an organization (this permits people at the same level to communicate directly).

Horizontal communication normally involves coordinating information, and allows people with the same or similar rank in an organization to cooperate or collaborate, e.g. sales staff, department heads, directors, and supervisors.

Messages that flow horizontally typically involve the exchange of information or data necessary to complete routine tasks.

Communication among employees at the same level is crucial for the accomplishment of work.

Methods of communication used include face-to-face discussions, telephone, informal discussions, or through internal correspondence (memos, reports, etc).

Horizontal Communication is essential for:Solving problemsTask coordination between

departments and project teamsImproving teamworkBuilding goodwillBoosting efficiency information sharing across different

work groups

Advantages: Effective Allows for task coordination

DisadvantagesNot efficient (time consuming) Creates professional rivalry

among membersSome members have a superior

attitude and are not willing to share information, knowledge or ideas

Members may be prejudiced and reject alternative solutions or perspectives to problems.

3) Diagonally

Definition: Communication between people who work in different departments at different levels within an organization.

Often tasks arise which may involve more than one department and there may be no obvious lines of authority, e.g. committees, teams, or taskforces created to solve problems or complete special projects.

Diagonal communication often relies on cooperation, goodwill and respect between parties concerned.

Informal Communication (The grapevine)

Definition:

Episodes of interaction that do not reflect officially designated channels of communication. It is the “hidden transmission of information which occurs in the washroom, the lunch room, etc.

Informal communication is inherent and even a necessary aspect of organization life.

The ‘grapevine’ emerges from social and personal interests of the employees rather than formal requirements of the organization.

It is an unofficial communication system where employees express themselves without inhibition and is a vehicle for the distortion of truth, rumour and gossip.

The grapevine is a bottom-up form of communication, in which employees try to understand what is happening around them when there is no official word from management.

When management is silent, employees fill the void with verbal guesses about what is happening.

e.g. A telephone receptionist who fields calls for senior managers from competitors might conclude that the company is negotiating to buy out, or be bought out. She passes the word that something big is up

People try to gain power and influence by gathering information about the organization and its members and disseminating it through the grapevine.

It exists because the formal network does not provide adequate information in an organization, so employees seek information from the grapevine to satisfy their curiosity.

Management can reduce the influence of the grapevine by carefully considering ways in which communication can be transmitted in the organization, especially in times of uncertainty.

There should always be adequate and accurate information made available to people concerned at the earliest opportunity, through the correct channels.

The grapevine can be a powerful network of communication in an organization, a fact which most modern managements have realized.

They have therefore moved away from the rigid management structure in which only a few of them share vital information.

They encourage teamwork and a collaborative style of functioning which brings the employees into close proximity.

The employees are therefore able to interact together and do not have to rely on the grapevine for information about happenings or developments in the organization.

This change in the modern structure has reduced the power of the grapevine.

The grapevine may also be indicative of a weak and ineffective formal communication network.

It usually flourishes in periods of uncertainty.

Formal networks should be clearly spelt out.

Role definitions and role responsibilities should be clearly defined to employees to prevent problems.

Advantages:

Creates a relaxed, comfortable climate

Disadvantages:

Should not become a substitute for an ineffective, formal system

Can cause damage to an organization

External CommunicationCommunication with people outside the

companyis called “external communication”.

Supervisorscommunicate with sources outside theorganization, such as vendors and

customers.It leads to better:

Sales volumePublic credibilityOperational efficiencyCompany profits

It should improve

Overall performancePublic goodwillCorporate image

Ultimately, it helps to achieve

Organizational goalsCustomer satisfaction

Methods of communication in an organization

The main methods of oral and written communication in an organization are shown in the following diagrams:

Insert diagrams

Telephone intercom meetings

conferences messages face to face discussions

presentation

Memo report staff newsletter graphs/charts

Email fax form/questionnnaire notice intranet

Internal commuunication

meetings

oral

Group DynamicsWhat is a group?A group is: “two or more people who share a common

definition and evaluation of themselves and behave in accordance with such a definition.”(Vaughan & Hogg, 2002, p.200)

“a collection of people who interact with one another, accept rights and obligations as members and who share a common identity”

Group dynamics is the study of groups. Because they interact and influence each

other, groups develop a number of dynamic processes that separate them from a random collection of individuals.

These processes include norms, roles, relations, development, need to belong, social influence, and effects on behavior.

The field of group dynamics is primarily concerned with small group behavior.

Criteria for a group include:

Formal social structure Face-face interaction Three or more persons Common fate Common goals Interdependence Self-definition as group members Recognition by others

Why people join groupsAmong other factors that influenced a person’s

decision to join a group, the following are probably

the most powerful ones: Attraction to others who are members Commitment to the goals of the group Enjoyment of the activities of the group Perceived instrumental value, e.g. a

businesswoman may join the Chamber of Commerce because it is a source of business contacts.

Tuckman’s (1965) model of group development is commonly used to describe the evolving experience and organization of most groups.

Tuckman’s (1965) Four Stages of Group Development

Tuckman described the four distinct stages that a group can go through as it comes together and starts to operate.

This process can be subconscious, although an understanding of the stages can help a group reach effectiveness more quickly and less painfully.

Stage 1: Forming

Individual behaviour is driven by a

desire to be accepted by the others, and avoid controversy or conflict.

Serious issues and feelings are avoided, and people focus on being busy with routines, such as team organization, who does what, when to meet, etc.

This is a comfortable stage to be in, but the avoidance of conflict and threat means that not much actually gets done.

Stage 2: Storming

Individuals in the group can only remain nice to each other for so long, as important issues start to be addressed.

Some people's patience will break early, and minor confrontations will arise that are quickly dealt with or glossed over.

These may relate to the work of the group itself, or to roles and responsibilities within the group.

Depending on the culture of the organization and individuals, the conflict will be more or less suppressed, but it will be there, under the surface.

To deal with the conflict, individuals may feel they are winning or losing battles, and will look for structural clarity and rules to prevent the conflict persisting.

Stage 3: Norming

As Stage 2 evolves, the "rules of engagement" for the group become established, and the scope of the group's tasks or responsibilities are clear and agreed.

Having had their arguments, they now understand each other better, and can appreciate each other's skills and experience.

Individuals listen to each other, appreciate and support each other, and are prepared to change pre-conceived views: they feel they're part of a cohesive, effective group.

However, individuals have had to work hard to attain this stage, and may resist any pressure to change - especially from the outside - for fear that the group will break up, or revert to a storm

Stage 4: Performing

Not all groups reach this stage, characterized by a state of interdependence and flexibility.

Everyone knows each other well enough to be able to work together, and trusts each other enough to allow independent activity.

Roles and responsibilities change according to need in an almost seamless way.

Group identity, loyalty and morale are all high, and everyone is equally task-orientated and people-orientated.

This high degree of comfort means that all the energy of the group can be directed towards the task(s) in hand.

Ten years after first describing the four stages, Bruce Tuckman revisited his original work and described another, final, stage:

Stage 5: Adjourning

This is about completion and disengagement, both from the tasks and the group members.

Individuals will be proud of having achieved much and glad to have been part of such a group.

They need to recognize what they have done, and consciously move on.

Some authors describe stage 5 as "Deforming and Mourning", recognizing the sense of loss felt by group members.

Tuckman's original work simply described the way he had observed groups evolve, whether they were conscious of it or not.

But for us the real value is in recognizing where a group is in the process, and helping it to move to the Performing stage.

In the real world, groups are often forming and changing, and each time that happens, they can move to a different Tuckman Stage

Group Cohesiveness

An important aspect of work groups is the cohesiveness of the group, i.e. the extent to which the group members cooperate together and operate as a single entity instead of separate individuals.

LEADERSHIP

Leadership is another aspect of group

process that is important. The leader emerges as the individual

possessing qualities that the other members perceive as critical to the satisfaction of their specific needs.

LEADERSHIP

Definition: Tannebaum and Massarik (1957)

define leadership as “interpersonal influence exercised in a situation and directed, through the communication process, towards the attainment of a specific goal or goals.”

The following are some of the functions exercised

by leaders in exercising leadership: The translation of directives from higher

levels in the organization into goals for those he/she is leading

Provide direction by giving clear, unambiguous goals

Set an example for subordinates to follow Influence subordinates to do the required job Make decisions Monitor progress towards the goals Make external contacts relevant to the

group’s activities

Leadership stylesThere are three styles of leadership: The autocratic leader – who dictates how the

work should be done, the work method and who works with whom.

The democratic leader – who behaves as a member of the work group and encourages the full development of each member.

The laissez-faire leader – who gives complete freedom to the group, there is little dependence on the leader.

Consequences of different styles of leadership

Autocratic Group members do not contribute to

decision making and so tend not to regard the decision as being “theirs” but rather imposed.

Group members are liable to be dissatisfied and there is little cohesion in the group.

Democratic:

The group is not dependent on the leader and can function in his or her absence.

Group members contribute to decision making and regard decisions being made as “theirs”.

Group members tend to be satisfied with their work.

The group can develop high cohesion.

Laissez-faireThe group does not depend on

the leader, or need the leader. Group members make decisions,

but not in a coordinated way. Group members are generally

dissatisfied with their work. The group has poor cohesion.