ENTREP 1101 Entrepreneurial Behavior

Sherwin B. Celestino
Instructor I
College of Business Administration and Accountancy
Central Luzon State University

Lecture 4. Managing Communications

Overview

Communication can be an interesting thing, especially in organizations. In managing

communications, managers must understand both the importance and the drawbacks of
communication, either interpersonal or organizational communication. Communication between
managers and employees is important because it provides the information necessary to get work
done in organizations, and is fundamentally linked to managerial performance. Managerial
communication is important, but it is a two-way street. An understanding of managerial
communication isn’t possible without looking at organizational communication. The ability to
communicate effectively is a skill that must be mastered by any person who wants to be an
effective manager. Everything a manager does involves communicating. A manager can’t make a
decision without information. That information has to be communicated in the organization. Once
a decision is made, communication must take place to disseminate it throughout the organization;
otherwise, no one would know that a decision was made. This lecture tackles about the nature and
functions of communication, the effective of interpersonal and organizational communications,
the barriers of communication and overcoming these barriers, the importance of Information
Technology in communication, and the communication Issues in organizations.

Learning Outcomes

1. Define the nature and function of communication.

2. Compare and contrast methods of interpersonal communication.
3. Identify barriers to effective interpersonal communication and hot to overcome them.
4. Explain how communication can flow most effectively in organizations.
5. Describe how technology affects managerial communication and organizations.
6. Discuss contemporary issues in communication.

Nature and Function of Communication

Communication is the transfer and understanding of meaning. The features of

communication are (1) transfer means the message was received in a form that can be interpreted
by the receiver, and (2) understanding the message wherein the meaning of the message must be
imparted and understood, not about agreeing with the message.
Types of Communication important to Managers

• Interpersonal communication, which is the communication between two or more people.

• Organizational communication, which is all the patterns, network, and systems of

communications within an organization.

Functions of Communication

For different organizations, communication serves four major functions: control,

motivation, emotional expression, and information (Figure 1). Each function is equally important.

Figure 1. Functions of Communication

Control. Formal and informal communications act to control individuals’ behaviors in

organizations. Communication acts to control employee behavior in several ways. Organizations
have authority hierarchies and formal guidelines that employees are expected to follow.

Motivation. Communications acts to motivate by clarify for employees what is to be done,

how well they have done it, and what can be done to improve performance. As employees set
specific goals, work toward those goals, and receive feedback on progress toward goals,
communication is required.

Emotional Expression. An interaction in the form of work group communications

provides a way for employees to express themselves. For many employees, their work group is a
primary source of social interaction. The communication that takes place within the group is a
fundamental mechanism by which members share frustrations and feelings of satisfaction.

Information. Individuals and work groups need information to make decisions or to do

their work in organizations. Communication provides that information.
Methods of Interpersonal Communication

Before an interpersonal communication can take place, a purpose, expressed as a message

to be conveyed, must exist. It passes between a source (the sender) and a receiver. The message
is converted to symbolic form (called encoding) and passed by way of some medium (channel)
to the receiver, who retranslates the sender’s message (decoding). The result is the transfer of
meaning from one person to another. Figure 2 shows the communication process. Note that the
entire process is susceptible to noise—disturbances that interfere with the transmission, receipt, or
feedback of a message. Typical examples of noise include illegible print, phone static, inattention
by the receiver, or background sounds of machinery or coworkers. However, anything that
interferes with understanding can be noise, and noise can create distortion at any point in the
communication process (Figure 2).

Figure 2. The Communication Process

Evaluating Communication Methods

Managers have a wide variety of communication methods from which to choose and can
use 12 questions to help them evaluate these methods. Figure 3 provides a comparison of various
communication methods.

1. Feedback: How quickly can the receiver respond to the message?

2. Complexity capacity: Can the method effectively process complex messages?
3. Breadth potential: How many different messages can be transmitted using this method?
4. Confidentiality: Can communicators be reasonably sure their messages are received only
by those intended?
5. Encoding ease: Can sender easily and quickly use this channel?
6. Decoding ease: Can receiver easily and quickly decode messages?
7. Time-space constraint: Do senders and receivers need to communicate at the same time
and in the same space?
8. Cost: How much does it cost to use this method?
9. Interpersonal warmth: How well does this method convey interpersonal warmth?
10. Formality: Does this method have the needed amount of formality?
11. Scanability: Does this method allow the message to be easily browsed or scanned for
relevant information?
12. Time of consumption: Does the sender or receiver exercise the most control over when the
message is dealt with?

Figure 3. Comparison of Various Communication Methods

Nonverbal Communication

An important part of interpersonal communication is nonverbal communication. It is the

communication transmitted without words. Some of the most meaningful communications are
neither spoken nor written. When a college instructor is teaching a class, she doesn’t need words
to tell her that students are tuned out when they begin to read a newspaper in the middle of class.
When students start putting their book, papers, and notebooks away, the message is clear—class
time is about over. The size of a person’s office or the clothes he/she wears convey messages to
others. Among these various forms of nonverbal communication, the best-known types are the
body language and verbal intonation.

Body language refers to gestures, facial expressions, and other body movements that
convey meaning. Figure 4 shows different facial expressions based from emotions. A person
frowning “says” something different from one who’s smiling. Hand motions, facial expressions,
and other gestures can communicate emotions or temperaments such as aggression, fear, shyness,
arrogance, joy, and anger. Knowing the meaning behind someone’s body moves and learning how
to put forth your best body language can help you personally and professionally.

Verbal intonation refers to the emphasis someone gives to words or phrases in order to
convey meaning. A soft, smooth vocal tone conveys interest and creates a different meaning from
one that is abrasive and puts a strong emphasis on saying the last word. Most of us would view the
first intonation as coming from someone sincerely interested in clarifying the student’s concern,
whereas the second suggests that the person resents the question Managers need to remember that
as they communicate, the nonverbal component usually carries the greatest impact. It’s not what
you say, but how you say it.

Figure 4. Different Facial Expressions

Barriers of Interpersonal Communication

Somewhere, somehow, communication

isn’t being as effective as it needs to be. One
reason is that managers face barriers that can
distort the interpersonal communication process
(Figure 5).

Cognitive. Managers should be familiar

with two cognitive barriers to communication:
information overload and filtering. Figure 5. Barriers of Interpersonal Communication
 Information overload occurs when information exceeds our processing capacity. What
happens when individuals have more information than they can process? They tend to ignore, pass
over, forget, or selectively choose information. Or they may stop communicating. The challenges
don’t stop there. The full extent of information may not be accurately conveyed, as a result of
intentional filtering. Filtering is the deliberate manipulation of information to make it appear more
favorable to the receiver. For example, when a person tells his or her manager what the manager
wants to hear, information is being filtered. The more vertical levels in an organization, the more
opportunities there are for filtering. As organizations use more collaborative, cooperative work
arrangements, the problem on information filtering maybe lessen. In sum, either information
overload or filtering can be problematic. The result is lost information and ineffective
communication.

Emotions. How a receiver feels influences how he or she interprets it. Extreme emotions
are most likely to hinder effective communication. In such instances, we often disregard our
rational and objective thinking processes and substitute emotional judgments. When people feel
they’re being threatened, they tend to react in ways that hinder effective communication and reduce
their ability to achieve mutual understanding. They become defensive—verbally attacking others,
making sarcastic remarks, being overly judgmental, or questioning others’ motives.

Sociocultural. Words mean different things to different people. Age, education, and
cultural background are three of the more obvious variables that influence the language a person
uses and the definitions he or she gives to words. In an organization, employees come from diverse
backgrounds and have different patterns of speech. Even employees who work for the same
organization but in different departments often have different jargon. Jargon is specialized
terminology or technical language that members of a group use to communicate among
themselves.

National Culture. Communication differences can arise from national culture as well as
different languages. For example, the which values individualism or collectivism culture. With an
individualistic culture, communication is more formal and is clearly spelled out. Managers rely
heavily on reports, memos, and other formal forms of communication, while with collectivist
culture, more interpersonal contact takes place, and face-to-face communication is encouraged.

Overcoming the Barriers: Effective Interpersonal Communication

In light of this fact and the communication barriers just described, what can managers do
to be more effective communicators?

Use Feedback. Many communication problems are directly attributed to misunderstanding

and inaccuracies. These problems are less likely to occur if the manager gets feedback, both verbal
and nonverbal. Feedback can also be more subtle, and general comments can give a manager a
sense of the receiver’s reaction to a message. A manager can ask questions about a message to
determine whether it was received and understood as intended. Or the manager can ask the receiver
to restate the message in his or her own words. If the manager hears what was intended,
understanding and accuracy should improve.
 Simplify Language. Because language can be a barrier, managers should consider the
audience to whom the message is directed and tailor the language to them. Remember, effective
communication is achieved when a message is both received and understood. Jargon can facilitate
understanding if it’s used within a group that knows what it means, but can cause problems when
used outside that group.

Listen Actively. When someone talks, we hear, but too often we don’t listen. Listening is
an active search for meaning, whereas hearing is passive. In listening, the receiver is also putting
effort into the communication.

Active listening, the listening

for full meaning without making
premature judgments or interpretations,
demands total concentration. Active
listening is enhanced by developing
empathy with the sender—that is, by
putting yourself in the sender’s position.
Empathy makes it easier to understand
the actual content of a message. An
empathetic listener reserves judgment
on the message’s content and carefully
listens to what is being said. Other
specific behaviors that active listeners
demonstrate can be seen in Figure 6. As
you can see, active listening takes effort,
but it can help make communication Figure 6. Active Listening Behaviors
much more effective.

Constrain Emotions. Assume that managers always communicate in a rational manner;

however, emotions can cloud and distort communication. A manager who’s upset over an issue is
more likely to misconstrue incoming messages and fail to communicate his or her outgoing
messages clearly and accurately. That’s why it is very important to calm down first and get
emotions under control before communicating.

Watch Nonverbal Cues. An effective communicator watches his or her nonverbal cues to
ensure that they convey the desired message.

Effective Organizational Communication

Several important aspects of organizational communication will be introduced including

formal versus informal communication, the flow patterns of communication, formal and informal
communication networks, and workplace design.
Types of Organizational Communication

• Formal Communication. It refers to the communication that takes place within prescribed
organizational work arrangements. Communication that follows the official chain of
command or is part of the communication required to do one’s job. Formal communication
occurs when the sales manager asks sales personnel to complete the task in making the
sales report for the month, or an employee communicates a concern in his/her task his/her
supervisor.

• Informal Communication. It is type of communication that is not defined by the

organization’s hierarchy. For example, when then employees talk with each other over
lunch time in the pantry. The informal communication system fulfills two purposes in
organizations: (1) It permits employees to satisfy their need for social interaction, and (2)
it can improve an organization’s performance by creating alternative, and frequently faster
and more efficient, channels of communication.

Direction of Organizational Communication Flow

The direction of organizational communication can flow downward, upward, laterally, or

diagonally.

• Downward Communication. It is a communication that flow from managers to

employees to inform, direct, coordinate, and evaluate employees (Figure 7). For example,
when a manager assigns tasks to their employees.

• Upward Communication. It is a communication that flow from employees up to managers

to keep them aware of employee needs and how things can be improved to create a climate
of trust and respect (Figure 8). Managers rely on their employees for information. Different
reports are given to managers to inform them of progress toward specific area, like sales
reports, and organizational goals or to report concerns and problems

Figure 7. Downward Communication Figure 8. Upward Communication

 • Lateral Communication. It is a communication that takes place among employees on the
same organizational level in the organization to save time and facilitate coordination
(Figure 9). Some references called this horizontal communication. For example, cross-
functional organizational levels rely on this form of communication interaction

Figure 9. Lateral Communication

• Diagonal Communication. It is a communication

that crosses both work areas and organizational
levels (Figure 10), and it is for the interest of
efficiency and speed. For example, a credit officer
who communicates directly with a marketing
manager about a customer’s credit level problem,
where in both are from different departments and
different organizational levels.

Figure 10. Diagonal Communication

Communication Networks

Communication networks refer to the variety of patterns of vertical and horizontal flows
of organizational communication. The common organizational communication networks are
chain, wheel, and all channel.

Forms of Communication Networks

• Chain Network. It is a communication flows according to the formal chain of command,

both upward and downward.

• Wheel Network. It refers to a communication flowing between a clearly identifiable leader

and others in a work group or team. The leader serves as the hub through whom all
communication passes.

• All Channel Network. It is a communication flows freely among all members of a work
team.

The form of network you should use depends on your goal. Figure 11 summarizes each
network’s effectiveness according to four criteria: speed, accuracy, the probability that a leader
will emerge, and the importance of member satisfaction. One observation is immediately apparent:
No single network is best for all situations.

Figure 11. Communication Networks

The Grapevine. It is the informal organizational communication network. It is active in

almost every organization. By staying aware of the grapevine’s flow and patterns such as the what
information is being passed, how information seems to flow, and what individuals seem to be key
information conduits, managers can identify issues that concern employees and in turn use the
grapevine to disseminate important information. It is an important part of any communication
network and well worth understanding. Managers can minimize the negative consequences of
rumors, by communicating openly, fully, and honestly with employees.

A study by Towers Watson in 2010 concluded that effective communication connects

employees to the business, reinforces the organization’s vision, fosters process improvement,
facilitates change, and drives business results by changing employee behavior. This study showed
that companies that were highly effective communicators were four times as likely to report high
levels of employee engagement as firms that communicated less effectively.

Workplace Design and Communication

In addition to the direction of communication flow and organizational communication

networks, another factor that influences organizational communication is workplace design. How
that office workspace is designed and configured can affect the communication that occurs as well
as influence an organization’s overall performance.

Better workplace design and layout result in better overall employee performance.
Research shows that workplace design should successfully support four types of employee work:
focused work, collaboration, learning, and socialization. Focused work is when an employee
needs to concentrate on completing a task. In collaboration, employees need to work together to
complete a task. Learning is when employees are engaged in training or doing something new
and could involve both focused work and collaboration. And socialization happens when
employees informally gather to chat or to exchange ideas.

Workplace design needs to accommodate communications, either organizational and

interpersonal communications, and at all directions and all types, in order to be most effective.
Two common design elements with the greatest impact on communication: (1) enclosures and
barriers, and (2) adjustable work arrangements, equipment, and furnishings.

Open Workplaces. Many

organizations workplaces today are open
workplaces. Workplaces with few physical
barriers and enclosures (Figure 12). Effects of
open workplaces on communication: visibility
and density. If it’s important that employees
communicate and collaborate, managers need
to consider high visibility location and high
density in workplace design. High visibility
locations encourage more face-to-face
communication among employees.
Workspaces with a high density yielded more
communication among employees, especially Figure 12. Open Workplace
employees within a team.

Managers need to consider the availability of areas where sensitive discussions can take
place, and managers should provide separate space for privacy and few distractions. Another
workplace design element is the availability of adjustable work arrangements, equipment, and
furnishings. Managers need to consider all of the benefits and costs in deciding whether to create
open spaces.

Communication in the Internet and Social Media Age: Understanding Information

Technology

The world of communication isn’t what it used to be. Indeed, technology is changing the
way we live, communicate, and work. Although changing technology has been a significant source
of the environmental uncertainty facing organizations, these same technological changes have
enabled managers to coordinate employees’ work efforts in more efficient and effective ways.
Information technology (IT) now touches every aspect of almost every company’s business. The
implications for how, where, and when managers communicate are profound.

• The 24/7 Work Environment. IT has made it possible to stay connected around the clock,
seven days per week. It has radically changed the way organizational members
communicate, and as made it possible for people in organizations to be fully accessible.

• Working from Anywhere. IT enables employees to access from anywhere, at any time,
using any digital device. Employees don’t have to be at their desks to communicate with
 others in the organization. As wireless technology continues to improve, we’ll see more
organizational members using it as a way to collaborate and share information.

• Social Media. This approach provides two important benefits. Devoting a channel for
information exchange about a specific topic can help compartmentalize the conversation.
The manager conveys important information and starts a useful conversation in which
employees can share their experiences and make suggestions for creating competitive
advantage.

• Balancing the Pluses and Minuses. Communication and the exchange of information
among organizational members are no longer constrained by geography or time.
Collaborative work efforts among widely dispersed organizational employees and teams,
sharing of information, and integration of decisions and work throughout an entire
organization have the potential to increase organizational efficiency and effectiveness.
However, companies need to guard against relying exclusively on IT for collaborative
work. Creativity, inspiration, and motivation are your competitive advantage, but they are
also depletable resources that need to be recharged. It has also downsides such
psychological drawbacks and impeding creativity.

Benefits of Information Technology to Organizations

1. Increased ability to monitor individual and team performance

2. Better decision making based on more complete information
3. More collaboration and sharing of information
4. Greater accessibility to coworkers

Impact of Information Technology to Organizations

1. Removes the constraints of time and distance. It allows widely dispersed employees to
work together.
2. Provides for the sharing of information. It increases effectiveness and efficiency.
3. Integrates decision making and work. It provides more complete information and
participation for better decisions.
4. Creates problems of constant accessibility to employees. It blurs the line between work and
personal lives

Choosing the Right Media

It is important for managers to understand the situations of the organization and its
employees in which one or more media facilitates effective communication. Electronic media, like
social media, e-mail, and instant messaging, are all effective and efficient methods for
communicating relatively straightforward information to one or more individuals—such as
announcing meeting times, locations, and an overview of the agenda. However, exchanging
confidential information about an employee’s performance or a company’s competitive secrets
should be left for face-to-face meetings or telephone conversations.
Communication Issues in Today’s Organizations

Having effective communication in organizations means being connected to employees

and customers, and to all stakeholders of the organization. There are five communication issues of
particular significance to managers: managing communication in a digitally connected world,
managing the organization’s knowledge resources, communicating with customers, getting
employee input, and communicating ethically.

Managing Communication in a Digitally Connected World. Managers are learning that

new technology has created special communication challenges: legal and security issues and lack
of personal interaction. In legal and security issues, online communication are quick and easy
ways to communicate; however, managers need to be aware of potential legal problems from
inappropriate usage. Another online communication challenge is the lack of personal interaction.
Even when two people are communicating face-to-face, understanding is not always achieved.
However, it can be especially challenging to achieve understanding and collaborate on getting
work done when communication takes place in a virtual environment.

Managing the Organization’s Knowledge Resources. Managers need to manage the

organization’s knowledge resources, and make it easy for employees to communicate and share
their knowledge to learn from each other ways to do their jobs more effectively and efficiently.
One way an organization can do this is to build online information databases that they can access.

The Role of Communication in Customer Service. What communication takes place

and how it takes place can have a significant impact on a customer’s satisfaction with the service
and the likelihood of being a repeat customer. Managers, especially in the service organizations.
need to make sure that employees who interact with customers are communicating appropriately
and effectively, as well as, the information needed with the customers.

Getting Employee Input. In this challenging environment, companies need to get input
from their employees. When an employee had an idea about a new way of doing something (such
as reducing costs, improving delivery time, and so forth), it should be communicated to their
manager. Figure 13 shows the lists of some suggestions for letting employees know that their
opinions matter. Letting employees know that their opinions matter is an essential in building
effective suggestions systems. Managers should explain how suggestions are reviewed, and
feedback about the feasibility of suggestions should be shared, not just whether the ideas are
feasible, but also why suggestions are feasible or not.

Figure 13. How to Let Employees Know their Input Matters

 Communicating Ethically. It’s particularly important today that a company’s
communication efforts be ethical. Ethical communication includes all relevant information, is
true in every sense, and is not deceptive in any way. On the other hand, unethical communication
often distorts the truth or manipulates audiences. Establish clear guidelines for ethical behavior,
including ethical business communication. communication that includes all relevant information,
is true in every sense, and is not deceptive in any way. Managers are responsible to think through
communication choices and the consequences of those choices.

Becoming a Better Communicator

• Sharpening Your Persuasion Skills. Successful managers demonstrate good persuasion

skills. Persuasion skills enable a person to influence others to change their minds or
behavior.

• Sharpening Your Speaking Skills. By now, you have probably made many class
presentations. An advantage of giving class presentations is the chance to develop speaking
skills. Speaking skills refer to the ability to communicate information and ideas by talking
so others will understand.

• Sharpening Your Writing Skills. Writing skills entail communicating effectively in text
that is most appropriate for its audience.

• Sharpening Your Reading Skills. Reading skills entail an understanding of written

sentences and paragraphs in work-related documents. If your reading skills aren’t up to
par—either in comprehension or speed—don’t be afraid to sign up for a reading-
improvement class.
References

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