Communication

Why Did Some CEOs Fail? “But I sure wish I’d done a better job of communicating with GM people. I’d do that differently the second time around and make sure they understood and shared my vision for the company” [Roger Smith, GM, 1989] “I did lose contact in some sense with the people of Citicorp and our customers. I have not been sensitive to that need” [John Reed, Citicorp, 1989]

WHAT IS COMMUNICATION ? ?!! What is said? What was meant? What is the appropriate action? Communication is concerned with achieving a shared understanding in an interaction.

PATTERN OF MANAGERS’ TIME USE (Mintzberg)

PERCEPTION PROCESS Stimuli A B C . Behavior Attention & Organization Interpretation Retrieval Judgement Attitudes Selective Perception Selective Perception

FACTORS FORMING RECEIVER’S UNDERSTANDING Knowledge Interests Experience Prejudice Mood Beliefs ENVIRONMENT

COMMUNICATION MODEL Receiver Sender Unders- tanding Decoded Idea Encoded Media

COMMUNICATION MODEL Receiver Sender Media

Communication Factors... Sender’s factors: - Knowledge and experience - Attitude - Methods - Lingual ability Environment (e.g., noise) Receiver’s factors - Emotion - Biases Language’s vagueness

7 Principles of Communication 1. Problem-oriented, not Person-oriented 2. Descriptive, not Evaluative 3. Validating, not Invalidating 4. Specific, not Global 5. Conjunctive, not Disconjunctive 6. Owned, not Disowned 7. Supportive listerning, not One-way listening

Problem-oriented, not Person-oriented “How can we solve this problem?” People oriented “Because of you there is a problem.” What would be the results of Person-oriented Communication?

Descriptive, not Evaluative “Here is what happened; here is my reaction; and here is my suggetions...” Evaluative “You are wrong for doing that!” What would be the results of Evaluative communication ?

Conjunctive, not Disconjunctive Conjunctive means joined to the message of the other to make the interaction flows smoothly Conjunctive “Related to what you said, I have an idea.” Disconjunctive “I have an idea (regarless of what you’ve said” What would be the results of Disconjunctive communication ?

“You are late three times this week” Specific, not Global Specific “You are late three times this week” Global “You are always late!” What would be the results of Global communication ?

Owned, not Disowned Owned “I’ve decided to deduct 10% of your grades because…” Disowned “They don’t like your ideas …” What would be the results of Disowned communication ?

FOUNDATION OF CONTROL

What Is Control? Control The Purpose of Control The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations. The Purpose of Control To ensure that activities are completed in ways that lead to accomplishment of organizational goals.

Why Is Control Important? As the final link in management functions: Planning Controls let managers know whether their goals and plans are on target and what future actions to take. Empowering employees Control systems provide managers with information and feedback on employee performance. Protecting the workplace Controls enhance physical security and help minimize workplace disruptions.

Designing Control Systems Market Control Emphasizes the use of external market mechanisms to establish the standards used in the control system. External measures: price competition and relative market share Bureaucratic Control Emphasizes organizational authority and relies on rules, regulations, procedures, and policies. Clan Control Regulates behavior by shared values, norms, traditions, rituals, and beliefs of the firm’s culture.

Three Control System Market control: (Market) If the market accept the products and prices Measuring the end result, may be too late Bureaucratic control: (Rules) If process follows the policies and rules Need to be supervise all along Clan control: (Trust) If people behave according to the (unwritten) values and norms of the organization May be cheated

The Planning–Controlling Link Exhibit 18.2

Case: Why My Start-up Failed?

How To Make Controlling Easier Objectives Measures Targeted Actual Causes Increase productivity Products/ person per day 10 8 Why?

The Control Process

Xerox Case Draw a figure to illustrate the two appraisal (control) systems Compare the two systems and explain why one system worked better than the other