Role of communication within the organization

Lecture 5. Communication within the organization

Module 1. The Nature of Business Communication

r Role of Communication within the Organization

r Communication Flows and Communication Networks within a Company

r Influence of the Structure on Communication

r Principles for Effective Organizational Communication

r Modifications to the Hierarchical Organization

r Conclusion

r Recommended reading

r Glossary of the Basic Terms

So far we have considered the linear model of communication, its elements, their interdependence and the factors affecting its functioning. Now we are going to consider how communication operates in business. Besides a mere transmission of the information communication serves as a drive which makes the whole organization capable of action. The messages are transmitted not only between two people, but between individual and small face-to-face groups, informal groupings organized within the frameworks of the company. Possible difficulties and the factors that hinder communication are multiplied by the number of the participants of the communication process and are complicated by the multi-level hierarchy of the organization and specific psychology of the groups and groupings.

Communication establishes relationships and makes organizing possible. Every message has a purpose or objective. The sender intends - whether consciously or unconsciously ­- to accomplish something by communicating. In organizational contexts, messages typically have a definite objective: to motivate, to inform, to teach, to persuade, to entertain, or to inspire. This definite purpose is, in fact, one of the principal differences between casual conversation and managerial communication. Effective communication in the organization centres on well-defined objectives that support the organization's goals and mission. Supervisors strive to achieve understanding among parties to their communications.

There are three principal topics about which the employees of the company must communicate effectively to maintain it in the working order[1]. The first deals with the matter concerning the achievement of the group’s objectives, including feedback on the progress or otherwise. The second covers the ways in which the group manages its affairs, controls its processes and recognizes the individual either by praising his contribution or punishing his ineffectiveness. The third is maintaining the correct balance of power and preventing anarchy.

As business communications cover the need of the organization in the information exchange, let us state which information is vital for it. First of all it is basic financial information, such as primary costs, administrative expenses, etc. Then, it is information about the labor productivity and distribution of resources. Information about key knowledge and exclusive competence is also of crucial importance as modern workers are becoming more and more educated and intellectually developed and their information needs are increasing.

Modern business is floating in the sea of information. Possessing information brings competitive advantage the companies are fighting for. Lahiff and Penrose give the facts that illustrate the costs of effective communication [2]. In 1992 more than 5 million businesses in the US reported their income to the Internal Revenue Service, which took them 297 mln. working hours. The US Ministry of Defence spends 229 mln. working hours on paperwork.

We spend 75% of our working time on communication; a simple exchange of phrases with colleagues at the meeting will take half of the working day in the end. Effective communications cost much, ineffective communications cost even more. The Dartnell Institute studied how much a business letter costs: in 1930 to plan, dictate, and write a business letter, to get materials for it and to pay postal charge cost all in all $0.3; in 1994 the whole process accounted for $12.64 to 19,13 depending on the way it was written. Dictating a business letter to a PC seems to be the fastest and most cost-effective way.

Tangible expenses on communication are important for any organisation, but there are also intangible expenses caused by ineffective communication and communication failures. The latter are difficult to calculate but they take their toll on the rapport of the group, on goodwill and company productivity. Negative consequences of ineffective communication may influence the company for a long time, which makes their evaluation even more difficult yet not less harmful for the company.

Downward communuication

Upward communuication

Figure 1. Communication Flows in the Functional Structure of Organisation

Дата добавления: 2014-01-11