C2--IM How Business Communicates

Chapter Two – How Business Communicates

This chapter covers the foundations of business communication introducing concepts like the influence of modern technology on business interactions and the organizational structures that determine lines of communication. Here you will find basic communication theory intermixed with pragmatic business applications.

Chapter Outline

I.                   21^st-Century Business Directions: Communicating in business is faster, more convenient, and more accessible, with more technological channels available to carry messages than ever before. It has become increasingly complex; since there are more technological communication channels available to companies and individuals world wide, the sheer volume of messages has increased at an incredible rate. These same technological channels are making global communications easier and more common. To handle this mass of messages, businesses are turning to management information systems (MIS) and management decision support systems (MDSS) for assistance. These systems streamline the communication process, making sure that the right information gets to the right source.

a.      Globalization: Today’s business marketplace cuts across national borders. Business leaders need to know the cultural, political, economic, and legal differences among countries.

b.      The Maze of Information Management: With the explosion of information available to businesses, managers and other staff members must navigate, manage, and analyze enormous amounts of data. Management information systems (MIS) are network systems that enable managers and staff to access ongoing and relevant company information such as sales reports, profit planning data, employee productivity, and customer feedback.

c.       The Way of Technology

                                                              i.      Intranets: Internal company computer networks that enable employees to communicate and share information.

                                                            ii.      World Wide Web (WWW): A service provided on the Internet to allow large and small companies to conduct business domestically and internationally.

                                                          iii.      Wireless Hand-Held Devices: Small instruments that offer software features including spreadsheets, databases, web browsing, and e-mail.

d.      Change and More Change: Change means that the way work is accomplished today will be different from yesterday’s business as usual. The trouble is that not everyone in the organization may be willing to accept or make changes.

§  What is Business Communication? A process of creating structure, relationships, and meaning through the design and exchange of business messages.

o   Structure refers to the organizational distribution of a company. This includes division of labor, setting of corporate goals, and establishing lines of authority.

o   Working relationships refer to employees’ interactions with other individuals inside the company, as well as with customers, clients, and vendors outside the company.

o   Shared meanings refer to the mutual understanding between communicants regarding goals and the purposes described in a message.

II.                Types of Business Messages: Business messages shape the way the organization functions and maintains the internal relationships among employees and the external relationships with the environment.

                                                              i.      Structural messages: Relate to company operating policies or procedures.

                                                            ii.      Relational messages: Interpersonal, in that they build rapport between employees and customers.

                                                          iii.      Change messages: Help the organization adapt and respond to the environment.

III.             Communicating Internally: the exchange of messages between employees inside the organization.

a.      How Do Business Messages Flow? Refers to how communication travels through channels in the organization. In a business context, channels may be human, technological, or structural.

b.      What Is a Communication Network? Pathways through which messages travel among employees in an organization.

IV.             Formal Communication Networks: An official channel or line of communication.

a.      Downward Communication: The movement or path of messages from superiors to subordinates. Although messages distributed through downward communication have the advantage of clarity in the sense that the same message is provided for all members of the formal communication network, they may suffer from message filtering and distortion. Message filtering and distortion occurs when the same message is seen from different perspectives. An individual may emphasize or de-emphasize portions of a message to reflect specific interests and goals, thereby reducing the overall scope of the message. On the other hand, employees may become overwhelmed by too much information, especially information that is unrelated to their specific tasks within the organization. Finally, downward communication is one-way; it does not allow for feedback from subordinates. In this case, employees may feel they have no one to ask for clarification or adjustment.

b.      Upward Communication: The upward flow of messages from subordinates to higher-ranking employees. Upward messages usually involve project or task progress information; job-related problems; employee needs, attitudes, or morale; and suggestions for improvements. They can be either written (email, memo, report) or oral (formal or informal meetings with management). Upward communication gives the higher levels of authority an opportunity to gain insight into the workings of the company on a more basic level, while also giving employees a sense they that are indeed a vital part of an organization. On the other hand, upward communication can also suffer from message filtering and distortion because employees may not always be completely truthful, fearing retribution from superiors.

c.       Horizontal Communication: When individuals who are at approximately the same level of authority communicate, they engage in horizontal communication. These individuals may be within the same department, or working together between departments. Information shared horizontally includes information sharing, problem solving, and project planning and coordination. While horizontal communication can be the fastest and most satisfying method of communicating within an organization for employees, problems like professional rivalry (competition between employees) or specialization (expertise in a particular field), especially when a specialist uses jargon (technical language), can make it difficult for those engaging in horizontal communication to interact effectively.

V.                Informal Communication Networks: Involves messages that flow in all directions and through all levels of authority.

a.      Grapevine: An oral and informal communication network comprised of various employees.

b.      Grapevine versus Gossip: Gossip, false stories, and malicious rumors do travel on the grapevine. However, a good 75 – 90% of the information flowing on the grapevine is accurate.

VI.             Communicating Externally: The exchange of messages between the organization and the external environment. External communication between the organization and the environment is a process involving input, throughput, and output.

a.      Input: The information the organization receives from the environment

b.      Throughput: The organization’s analysis and evaluation of the input it receives and the transformation of that input into outputs.

c.       Output: Messages the organization transmits to the environment in response to received input.