University of the Incarnate Word COMM 2341 Session Notes Chapter 2 Organizational Communication

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1 University of the Incarnate Word COMM 2341 Session Notes Chapter 2 Organizational Communication I. Communication inside the organization A. Formal messages flow downward, upward, and horizontally. 1. Downward communication includes messages that flow from managers and supervisors to subordinates. a. It adds to employee satisfaction. b. It can lead to information overload (not necessarily bad). c. It is more effective when written communication is accompanied by face-to-face communication. 2. Upward communication includes messages that flow from subordinates to managers and supervisors. a. Upward communication must be accurate to be effective. b. Upward communication must be fast to be effective. 3. Horizontal communication includes messages that flow laterally between persons of the same rank or position. a. Horizontal communication is especially valuable when problems are unusually difficult or complex. b. Empowered teams are especially adept at horizontal communication. c. Organizations are paying more attention to horizontal communication than in the past. d. Horizontal communication has been made much cheaper and easier with Internet and company intranets. B. Informal communication is commonly called the grapevine. 1. The type of information carried on the grapevine indicates the health of the organization: a. The grapevine of a healthy organization is generally personal interest items. b. The grapevine of an organization with failing formal communication centers on information about the organization. 2. Information carried by the grapevine is fast and is 75-95% accurate. 3. People who regularly use the grapevine are more satisfied with their jobs and more committed to the organization. 4. Effective managers use the grapevine. 5. Internet and company intranets have taken the place of the water cooler.

2 II. III. Coordination of people and groups to achieve maximum productivity. A. Mutual adjustment is a coordination method of horizontal communication between peers in small organizations to make work related decisions. 1. It can involve face-to-face meetings or Internet meetings. 2. It is used only when needed. B. Direct supervision is usually more effective if the organization is made up of twelve to fifty members. C. Standardization is more effective in coordinating organizations of over fifty members. 1. Videoconferencing may be used for communicating standards and training employees. 2. Organizations may be more bureaucratic. D. Rapidly changing markets and need for flexibility are prompting many traditional standardization organizations to move to mutual adjustment teams. Organization Models A. The traditional manager assumes that motivating employees with control, structure, and money. B. The human relations manager believes that employees are motivated by tender loving care and meeting their social and psychological needs. C. The human resources manager believes in the team approach that involves employees in problem solving and decision making. D. The systems/contingency manager believes there is no one best way to manage. E. The transformational manager adapts to new virtual structures by giving employees personal autonomy via computer-connected teams. F. The traditional or classical model developed during the early part of the twentieth century. 1. Scientific management approach sought to improve organizational efficiency and reduce production costs by standardizing employee tasks. a. Fredrick Taylor popularized it. b. Taylor s best way included scientific design of each task, scientific selection of workers, training and rewards, and division of labor and responsibilities. 2. Bureaucratic theorists were interested in improving direct supervision through structure and control. a. Henri Fayol and Max Weber popularized it. b. Key concepts are organizational structure, division of labor, chain of command, and a small span of control. c. Weber s best way formalized bureaucracy. 3. Today the traditional strategies are still dominant in government agencies, educational institutions, and many firms to enhance productivity.

3 G. The human relations model focuses on the social and psychological needs of the employees. 1. Elton Mayo s best way disproved the idea that employee productivity could be improved solely by economic motivation and endorsed the idea that tender loving care by managers would lead to increased work productivity. 2. Chester Barnard s best way emphasized the importance of communication to organizational success, but he still viewed it primarily as a one-way tool for management. 3. Today the open climate of the human relations is easier to implement and maintain in smaller organizations, but it sometimes is seen in successful large organizations. H. The human resources model combines the best of the traditional and human relations models by focusing on workers and management- a team based orientation. 1. Douglas McGregor developed Theory X and Theory Y. a. Theory X managers believe in the traditional model of management. b. Theory Y managers believe that when frequent, honest communication is up, down, and across, it breeds confidence and trust. 2. Renis Likert developed a model of four management styles. a. They ranged from authoritative (Theory X) at one end of the scale to participative (resembling Theory Y) at the other end. b. Likert considered the participative (system 4) the ideal model for an organization. 3. Today the human resources model is seen in various types of participative employee involvement groups (QCC, TQM, teams) functioning successfully if the following characteristics are present: a. Horizontal communication between departments. b. Employees willing to work with each other. c. Managers willing to listen. d. Organizations open to change. e. Rapid management response to suggestions. f. Cooperation between management and unions. g. Support for team decisions and solutions. h. Adequate tools and training for teams.

4 I. The Systems/Contingency Model contends there is no organizational model that will fit all organizations. 1. Ludwig Von Bertalanfy s general systems theory is based on the principal that the whole is more than the sum of its parts. a. Daniel Katz and Robert Kahn referred to organizations as open systems. b. Systems theory recognizes the interdependence of all parts of an organization. c. It acknowledges both formal and informal communication as central to success of the organization. d. It integrates the biases of the traditional and the human relations models and gives them equal weight. 2. Contingency Theory contends that no one type of structure or leadership is most appropriate for all situations. a. Fred Fiedler s theory concludes that managers learn to identify and modify situations to fit their communication and leadership styles. b. Robert House s theory asserts that leadership can adapt to fit the situation. 3. The Contingency Model can be seen in Theory Z companies that adapt their management style to the existing company culture. J. The Transformational Model results from the needs of today s business environment to transform past models into new structures. 1. A multiunit organization is a decentralized structure made up of a number of separate, autonomous businesses under the same holding company. 2. The virtual organization is a temporary venture between several companies each with a special expertise or process specialty. 3. The transformational model today allows small companies to compete with large companies. K. The organizational models reflect communication differences. 1. In the traditional model it is mainly task-oriented and downward, usually written, and generally used by managers to clarify orders. 2. In the human relations model managers view communication as a command tool by managers and therefore downward, but they also seek feedback and use the grapevine to gauge employee satisfaction. 3. In the human resources model information and feedback flow freely in all directions and the environment is supportive and flexible. 4. In the contingency model, flexibility is highly valued, because there is not single best way to manage and no single best way to communicate.

5 5. In the transformation model, horizontal communication among team members is essential, upward, downward, and informal communication are readily used, and most interactions occur electronically. IV. Summary A. Being aware of both formal and informal communication is important. B. Communicating, feedback, and company expectations differ significantly from model to model.

Chapter 2 THE HISTORY OF MANAGEMENT

Chapter 2 THE HISTORY OF MANAGEMENT Management Perspectives Over Time Exhibit 2.1, p.44 2000 The Technology-Driven Workplace 1990 The Learning Organization 1980 Total Quality Management 2000 1970 Contingency