1. Communicating for Results 9e 2 Key Ideas Formal and Informal communication Coordination of people and groups Organization Models Organizational Communication 1 Copyright Cengage © 2011

2. Consider this... It is structure that enables people to work together, and in so doing to accomplish things beyond the abilities of unorganized individuals. It is structure that enables people to work together, and in so doing to accomplish things beyond the abilities of unorganized individuals. Wagner & Hollenbeck, Organizational Behavior, Southwestern, 2004 2Copyright Cengage © 2011

3.  Read or describe the case study  Answer the following questions:  What type of informal/formal communication was used at Enron?  Which organizational model was used?  What role did rank and yank play in Enron’s unethical practices? Copyright Cengage © 20113 The Rise and Fall of Enron The Rise and Fall of Enron

4. Formal Communication Includes 3 types of communication Inside the organization... Downward Upward Horizontal laterally Messages flow laterally between people of the same rank. upward Messages flow upward through the chain of command—i.e., from employee to boss. downward Messages flow downward through the chain of command—i.e., from manager to employee. 4Copyright Cengage © 2011

5. Downward Communication  Employee performance appraisals  Job instructions  Job rationale  Policy & procedures  Motivational appeals Copyright Cengage © 20115

6. Upward Communication  Employee work, achievements & progress  Employee opinions & feelings  Outlines of work problems  Ideas for improvement Copyright Cengage © 20116

7. Informal Communication  This is commonly known as The Grapevine  Indicates the health of the organization  Adds to employee satisfaction & commitment  Indicates employee concerns > Copyright Cengage © 20117

8. Informal Communication  Is 75-95% accurate  Travels fast  Effective managers use The Grapevine Copyright Cengage © 20118

9. Informal Communication Indicates the health of the organization Adds to employee satisfaction & commitment Indicates employee concerns Is 75-95% accurate Travels fast Information carried by the “Grapevine”... Thomas Perdew/Focus Group/PictureQuest 9Copyright Cengage © 2011

10. Coordination of People and Groups  Mutual adjustment – horizontal communication between peers who meet to make work decisions  Direct supervision – supervisors have the authority to organize and direct work  Standardization – specific written standards for tasks, output levels, skills and workplace norms Copyright Cengage © 201110

11. Organization Models: Traditional (or Classical) Model Copyright Cengage © 201111 ScientificBureaucratic Standardized employee tasks Organization Structure Example: Taylor’s Best Way Scientific design of each task Scientific selection of workers Adequate training and rewards for productivity Division of both labor and responsibilities Fayol’s Best Way Example: Fayol’s Best Way Specific organizational structure Clear division of labor Formal chain of command

12. Fayol’s Bridge Copyright Cengage © 201112 A CB GFED Fayol’s bridge: Bypasses chain Of command Normal line of communication XXXXXXXXX X X

13. Human Relations Model Copyright Cengage © 201113 Mayo

14. Human Relations Model  Pioneered by Elton Mayo and colleagues between 1927 and 1932  Based on conclusions of Hawthorne plant study  Workers in relaxed congenial work groups with supportive supervisors are more productive  Peer relationships significantly influences productivity Copyright Cengage © 201114

15. Human Resources Model QC Theory Y McGregor TeamsTeams 15Copyright Cengage © 2011

16. Human Resources and Human Relation Models Human Relations People wish to be liked and respected. If there needs are met, employees will produce for the organization. Managers should convince workers that they are valuable team members. Managers should allow employee participation in routine decision making. Sharing information with employees will increase their satisfaction, which will improve their morale and reduce resistance to authority, thus improving productivity. Human Resources Most people desire a sense of accomplishment. Most employees have untapped resources and are capable of more than most jobs allow. Managers should tap and guide each employee’s hidden talents and creativity to harmonize with organizational goals. Managers should allow (and encourage employee participation in routine and important decision making situations Employee satisfaction is a by-product of improved performance Copyright Cengage © 201116

17. McGregor’s Theory X  Messages travel downward  Upward messages limited  Fear & distrust of management  Decisions made by top management Copyright Cengage © 201117 Bureaucratic

18. McGregor’s Theory Y  Messages travel up and down in the organization  Decisions shared & based on input from all levels  Feedback is encouraged in an upward direction > Copyright Cengage © 201118

19. McGregor’s Theory Y  Atmosphere of confidence & trust exists  Downward messages satisfy needs of employees  Decision making is based on messages from all levels improving decision accuracy and quality Copyright Cengage © 201119

20. Beliefs of Theory X and Y Managers Theory X (Traditional) 1.The average person has an inherent dislike of work and will avoid if possible. 2.Most people will not strive to achieve organizational objectives unless they are coerced, controlled, directed, and threatened with punishment 3. The average person prefers to be directed, whishes to avoid responsibility, has relatively little ambition, and wants security above all else. Theory Y (Human Resources) 1.The use of physical and mental energy in work is as natural as play and rest. 2.External control and threats are not only ways to motivate workers to meet organizational objectives. A person who is committed to the objectives will exercise self-direction and self- control. 3.Commitment to objectives is a motivator and a function of rewards and achievement. 4.Under proper conditions, workers learn not only to accept but also to seek responsibility. 5.The capacity to exercise a relatively high degree of ingenuity and creativity is widely distributed in the population 6.The intellectual potentialities of most people are only partly utilized in modern organizations. Copyright Cengage © 201120

21. Elements of Likert’s Four Systems  Supportive relationships based on trust  Group decision making and group supervision  High performance goals  Formal and informal communication Copyright Cengage © 201121 © Jason Harris

22. Systems/Contingency Model Copyright Cengage © 201122 Fiedler Culture Theory Z Situation One model does not fit all not fit all One model does not fit all not fit all

23. Systems Theory  Concerned with the organization as a whole  All types of communication and feedback essential  One person can affect the entire organization  Used to build and maintain corporate culture Copyright Cengage © 201123

24. Contingency Theory  Leadership depends on three variables  Leader-follower relations (liked or not liked)  Position of power (powerful or weak)  Task structure (organized or not organized)  Task or traditional leadership best when  Manager well liked or is disliked  Tasks well-defined or is poorly defined > Copyright Cengage © 201124

25. Contingency Theory  Human Relations Orientation best when  Manager is moderately liked  Manager is somewhat powerful  Tasks are moderately defined Copyright Cengage © 201125

26. Path-Goal Theory  Developed by Robert House (1971)  Identified factors of job performance and satisfaction  Satisfaction with job  Uncertainty and difficulty of job  Communication style of supervisor Copyright Cengage © 201126

27. Transformational Model Copyright Cengage © 201127 VirtualMultiunit

28. Communication Patterns: Traditional Model  Rational, task-oriented, usually written  Social side less important  Structured roles define expectations  Expectations determined by position  Mainly downward Copyright Cengage © 201128

29. Communication Patterns: Human Relations Model  Supportive, but mainly downward  Employee needs treated with TLC  Feedback from employees & grapevine  Communication skills used to develop & maintain relationships Copyright Cengage © 201129

30. Communication Patterns: Human Resources Model  Team oriented & participative  Info & feedback flow freely up & down  Informal communication encouraged  Communication skills needed at all levels Copyright Cengage © 201130

31. Communication Patterns: Systems/Contingency Model  No single best way to communicate  Communication influenced by situation  Communication flexibility valued  Requires communication skills at all levels Copyright Cengage © 201131

32. Communication Patterns: Transformational Model  Horizontal communication essential  Upward & downward communication used  Awareness of frame-of-reference differences  Much communication electronic Copyright Cengage © 201132

33. Communicating for Results 9e 2 Key Ideas Formal and Informal communication Coordination of people and groups Organization Models Organizational Communication 33 Copyright Cengage © 2011