5. communication in organisations

COMMUNICATION IN
ORGANISATIONS

By the end of this unit you should
be 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 CHART
ST Electronics Plc
C.E.O
MANAGING DIRECTOR
PA
PRODUCTION DIRECTO HUMAN RESOURCES DIRECTOR SALES DIRECTOR PURCHASING 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 officially
designated channels of message flow
between 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)
Horizontally
Diagonally

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 information
Give instructions
Encourage 2-way discussion
Announce decisions
Seek cooperation
Provide motivation
Boost morale
Increase efficiency
Obtain feedback

Advantages:
Efficient
Fast

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 information
Offer ideas
Express enthusiasm
Achieve job satisfaction
Provide feedback
Discuss problems with superiors
Discuss job related problems
Sort out unsolved work problems
 Seek solutions to recurring conflicts
Discuss 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 problems
Task coordination between
departments and project teams
Improving teamwork
Building goodwill
Boosting efficiency
information sharing across different
work groups

Advantages:
 Effective
 Allows for task coordination

Disadvantages
Not efficient (time consuming)
Creates professional rivalry
among members
Some 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 Communication
Communication with people outside the
company
is called “external communication”.
Supervisors
communicate with sources outside the
organization, such as vendors and
customers.
It leads to better:
Sales volume
Public credibility
Operational efficiency
Company profits

 It should improve
Overall performance
Public goodwill
Corporate image

Ultimately, it helps to achieve
Organizational goals
Customer 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

Internal commuunication
Telephone intercom
meetings
conferences
messages face to
face discussions
presentation
Memo report staff
newsletter
graphs/charts
Email fax
form/questionnnaire
notice intranet

Group Dynamics
What 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 groups
Among 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.

 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.

 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.

 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

 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:

 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 styles
There 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-faire
The 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.

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