MCom I Semester Communication Study Material Notes

MCom I Semester Communication Study Material Notes: Function of Communication Process Direction of CommunicatioN downward Upward Interpersonal Communication Oral Communication  Written Communication Nonverbal Communication Organizational Communication Computer-Aided Communication The Grapevine Knowledge management Choice of Communication Channel Barriers  to Effective Communication Filtering Current Issues in Communication Language Cross-Cultural Communications  :

BBA I Semester Managerial Economics Market Structures Study Material Notes

Communication

The preceding examples tragically illustrate how miscommunication can have deadly consequences. In this chapter, we’ll show (obviously not in as dramatic a fashion) that good communication is essential to any group’s or organization’s effectiveness. Research indicates that poor communication is probably the most frequently cited source of interpersonal conflict. Because individuals spend nearly 70 percent of their waking hours communicating-writing, reading, speaking, listening-it seems reasonable to conclude that one of the most inhibiting forces to successful group performance is a lack of effective communication.

No group can exist without communication: the transference of meaning among its members. It is only through transmitting meaning from one person to another that information and ideas can be conveyed. Communication, however, is more than merely imparting meaning. It must also be understood. In a group in which one member speaks only German and the others do not know Gerang the individual speaking German will not be fully understood. Therefore, communication must include both the transference and the understanding of meaning

An idea, no matter how great, is useless until it is transmitted and understood by others. Perfect communication, if there were such a thing would exist when a thought or an idea was transmitted so that the mental picture perceived by the receiver was exactly the same as that envisioned by the Under. Although elementary in theory, perfect communication is never achieved in practice fod reasons we shall expand on later in the chapter.

Before making too many generalization Talking too many generalizations concerning communication and problems in communicating effectively, we need to review briefly the functions that communication performs and describe the communication process.

Communication Study Material Notes

Functions of Communication

Communication serves four major functions within a group or organization: control, motivation emotional expression, and information.

Communication acts to control member behavior in several ways. Organizations have authority hierarchies and formal guidelines that emplovees are required to follow. When employees, for mstance, are required to first communicate any job-related grievance to their immediate boss, to fol low their job description, or to comply with company policies, communication is performing a con trol function. But informal communication also controls behavior. When work groups tease or harass a member who produces too much (and makes the rest of the group look bad), they are intor mally communicating with, and controlling the member’s beh

Communication fosters motivation by clarifying to employees what is to be done, how well they are doing, and what can be done to improve performance if it’s subpar. We saw this operating in our review of goal-setting and reinforcement theories in Chapter 6. The formation of specific goals, feedback on progress toward the goals, and reinforcement of desired behavior all stimulate motivation and require communication.

For many employees, their work group is a primary source for social interaction. The communication that takes place within the group is a fundamental mechanism by which members show their frustrations and feelings of satisfaction. Communication, therefore, provides a release for the emotional expression of feelings and for fulfillment of social needs.

The final function that communication performs relates to its role in facilitating decision making. It provides the information that individuals and groups need to make decisions by transmitting the data to identify and evaluate alternative choices,

No one of these four functions should be seen as being more important than the others. For groups to perform effectively, they need to maintain some form of control over members, stimulate members to perform, provide a means for emotional expression, and make decision choices. You can assume that almost every communication interaction that takes place in a group or organization performs one or more of these four functions.

Communication Study Material Notes

The Communication Process

Before communication can take place, a purpose, expressed as a message to be conveyed, is needed. It passes between a sender and a receiver. The message is encoded (converted to a symbolic form) and passed by way of some medium (channel) to the receiver, who retranslates (decodes) the message initiated by the sender. The result is a transference of meaning from one person to another.

Exhibit 10-1 depicts this communication process. The key parts of this model are: (1) the sender. (2) encoding, (3) the message, (4) the channel, (5) decoding. (6) the receiver, (7) noise, and (8) feedback

The sender initiates a message by encoding a thought. The message is the actual physical product from the sender’s encoding. When we speak, the speech is the message. When we write, the writing is the message. When we gesture, the movements of our arms and the expressions on our faces are the message. The channel is the medium through which the message travels. It is selected by the sender who must determine whether to use a formal or informal channel. Formal channels are established by the organization and transmit messages that are related to the professional activities of member

They traditionally follow the authority chain within the organization. Other forms of messages, such as personal or social, follow the informal channels in the organization. These informal channels are Spontaneous and emerge as a response to individual choices. The meint is the object to whom the message is directed. But before the message can be received, the symbols in it must be translated into a form that can be understood by the receiver. This step is the decoding of the message. Noiserepresents communication barriers that distort the clarity of the message. Examples of possible noise sources include perceptual problems, information overload, semantic difficulties, or cultural differ ences. The final link in the communication process is a feedback loop. Fudback is the check on how successful we have been in transferring our messages as originally intended. It determines whether understanding has been achieved.

Direction of Communication

Communication can flow vertically or laterally. The vertical dimension can be further divided into downward and upward directions

Downward Communication that flows from one level of a group or organization to a lower level is a downward communication. When we think of managers communicating with employees, the downward pattem is the one we are usually thinking of. It’s used by group leaders and managers to assign goals. provide job instructions, inform employees of policies and procedures, point out problems that need attention, and offer feedback about performance. But downward communication doesn’t have to be oral or face-to-face contact. When management sends letters to employees’ homes to advise them of the organization’s new sick leave policy, it’s using downward communication. An e-mail from a team leader to the members of her team, reminding them of an upcoming deadline, is also downward communication.

Upward

Upward communication flows to a higher level in the group or organization. It’s used to provide feedback to higher ups, inform them of progress toward goals, and relay current problems. Upward communication keeps managers aware of how employees feel about their jobs, coworkers, and the organization in general Managers also rely on upward communication for ideas on how things can be improved.

Some organizational examples of upward communication are performance reports prepared by lower management for review by middle and top management, suggestion boxes, employee attitude surveys, grievance procedures, superior-subordinate discussions, and informal “gripe” sessions in which employees have the opportunity to identify and discuss problems with their boss or representatives of higher management. For example, FedEx prides itself on its computerized upward communication program. All its employees annually complete climate surveys and reviews of management. This program was cited as a key human resources strength by the Malcolm Aldridge National Quality Award examiners when FedEx won the honor.

In a study on a large Indian public sector undertaking, not a single subordinate was willing to communicate unfavorable reactions to orders, unfavorable opinions and attitudes, unfavorable reports about procedures not followed properly. Most of subordinates were willing to communicate favorable work performance, problems related to work, and new ideas and suggestions. A high degree of co-efficient of correlation between willingness to communicate was found, which indicated that willingness affected the type of information communicated upwards. Most of the subordinates were unwilling to communicate some information because they either felt that the informa tion was not likely to be of interest to their superiors or that their superiors might take it adversely.’

Lateral

When communication takes place among members of the same work group, among members of work groups at the same level, among managers at the same level, or among any horizontally equiv alent personnel, we describe it as lateral communications.

Why would there be a need for horizontal communications if a group or organization’s vertical communications are effective? The answer is that horizontal communications are often necessary to save time and facilitate coordination. In some cases, these lateral relationships are formally sanctioned. More often, they are informally created to short-circuit the vertical hierarchy and expedite action. So lateral communications can, from management’s viewpoint, be good or bad. Because strict adherence to the formal vertical structure for all communications can impede the efficient and accurate transfer of information, lateral communications can be beneficial. In such cases, they occur with the knowledge and support of superiors. But they can create dysfunctional conflicts when the formal vertical channels are breached, when members go above or around their superiors to get things done, or when bosses find out that actions have been taken or decisions made without their knowledge.

Interpersonal Communication

How do group members transfer meaning between and among each other? There are three basic methods. People essentially rely on oral, written, and nonverbal communication.

Oral Communication

The chief means of conveying messages is oral communication. Speeches, formal one-on-one and group discussions, and the informal rumor mill or grapevine are popular forms of oral communication.

The advantages of oral communication are speed and feedback. A verbal message can be con-eyed and a response received in a minimal amount of time. If the receiver is unsure of the message. rapid feedback allows for early detection by the sender and, hence, allows for early correction

The major disadvantage of oral communication surfaces in organizations or whenever the mes sage has to be passed through a number of people. The more people a message must pass through the greater the potential distortion. If you ever played the game “telephone” at a party, you know the problem. Each person interprets the message in his or her own way. The message’s content, when it reaches its destination, is often very different from that of the original. In an organization, where decisions and other communiqués are verbally passed up and down the authority hierarchy. there are considerable opportunities for messages to become distorted.

Written Communication

Written communications include memos, letters, fax transmissions, electronic mail, instant messaging, organizational periodicals, notices placed on bulletin boards, or any other device that is trans mitted via written words or symbols.

Why would a sender choose to use written communications? They’re often tangible and verili able. When printed, both the sender and receiver have a record of the communication, and the message can be stored for an indefinite period. If there are questions concerning the content of the message, it is physically available for later reference. This feature is particularly important for complex and lengthy communications. The marketing plan for a new product, for instance, likely to contain a number of tasks spread out over several months. By putting it in writing, those who have to initiate the plan can readily refer to it over the life of the plan. A final benefit of all written communication comes from the process itself. You’re usually more careful with the written word than the oral word. You’re forced to think more thoroughly about what you want to convey in a written message than in a spoken one. Thus, written communications are more likely to be well thought out, logical, and clear.

Of course, written messages have their drawbacks. They’re time consuming. You could convey far more information to a college instructor in a one-hour oral exam than in a one-hour written exam. In fact, you could probably say the same thing in 10 to 15 minutes that it would take you an hour to write. So, although writing may be more precise, it also consumes a great deal of time. The other major disadvantage is feedback, or lack of it. Oral communication allows the receiver to respond rapidly to what he thinks he hears. Written communication, however, does not have a built-in feedback mechanism. The result is that the mailing of a memo is no assurance it has been received, and, if received, there is no guarantee the recipient will interpret it as the sender intended. The latter point is also relevant in oral communiqués, except it’s easy in such cases merely to ask the receiver to summarize what you’ve said. An accurate summary presents feedback evidence that the message has been received and understood.

Nonverbal Communication

Every time we verbally give a message to someone, we also impart a nonverbal message. In some instances, the nonverbal component may stand alone. For example, in a singles bar, a glance, a stare. a smile, a frown, and a provocative body movement all convey meaning. As such, no discussion of communication would be complete without consideration of nonverbal communication which includes body movements, the intonations or emphasis we give to words, facial expressions, and the physical distance between the sender and receiver

It can be argued that every body movement has a meaning and no movement is accidental. For example, through body language we say, “Help me, I’m lonely;” “Take me, I’m available;” “Leave me alone, I’m depressed.” And rarely do we send our messages consciously. We act out our state of being with nonverbal body language. We life one eyebrow for disbelief. We rubout noses for polemist We clasp our arms to isolate ourselves or to protect ourselves. We shrug our shoulders for in differ ence, wink one eye for intimacy, tap our fingers for impatience, slap our forehead for forgetfulness 10

The two most important messages that body language conveys are (1) the extent to which an individual likes another and is interested in his or her views and (2) the relative perceived status between a sender and receiver. For instance, we’re more likely to position ourselves closer to per plea we like and touch them more often. Similarly, if you feel that you’re higher status than another you’re more likely to display body movements such as crossed legs or a slouched seating position that reflect a casual and relaxed manner.

Body language adds to, and often complicates, verbal communication. A body position or movement does not by itself have a precise or universal meaning, but when it is linked with spoken language, it gives fuller meaning to a sender’s message.

If you read the verbatim minutes of a meeting, you wouldn’t grasp the impact of what was said in the same way you would if you had been there or saw the meeting on video. Why? There is no record of nonverbal communication. The emphasis given to words or phrases is missing. Exhibit 10-2 illustrates how intonations can change the meaning of a message.

Facial expressions also convey meaning. A snarling face says something different from a smile Facial expressions, along with intonations, can show arrogance, agressiveness fear. Shyness other characteristics that would never be communicated if you read a transcript of what had been said the way individuals space themselves in terms of physical distance also has meaning. What is con sidered proper spacing is largely dependent on cultural norms. For example, what is considered businesslike distance in some European countries would be viewed as intimate in many parts of North America. If someone stands closer to you than is considered appropriate, it may indicate aggressiveness or sexual interest; if farther away than usual, it may mean disinterest or displeasure with what is being said.

It’s important for the receiver to be alert to these nonverbal aspects of communication. You should look for nonverbal cues as well as listen to the literal meaning of a sender’s words. You should particularly be aware of contradictions between the messages. Your boss may say she is free to talk to you about a pressing budget problem, but you may see nonverbal signals suggesting that this is not the time to discuss the subject. Regardless of what is being said, an individual who frequently glances at her wristwatch is giving the message that she would prefer to terminate the conversation. We mis inform others, for example, when we express one message verbally, such as trust, but nonverbally communicate a contradictory message that reads, “I don’t have confidence in you.”

Organizational Communication

In this section we move from interpersonal communication to organizational communication. Our focus here will be on formal networks, the grapevine, computer-aided mechanisms used by organizations to facilitate communication, and the evolving topic of knowledge management.

Formal Small-Group Networks

Formal organizational networks can be very complicated. They can, for instance, include hundreds of people and a half-dozen or more hierarchical levels. To simplify our discussion, we’ve condensed these networks into three common small groups of five people each (see Exhibit 10-3). These three networks are the chain, wheel, and all-channel. Although these three networks have been extremely simplified, they do allow us to describe the unique qualities of each.

The chain rigidly follows the formal chain of command. This network approximates the communication channels you might find in a rigid three-level organization. The wheel relies on a central figure to act as the conduit for all the group’s communication. It simulates the communication net work you would find on a team with a strong leader. The all-channel network permits all group mem bers to actively communicate with each other. The all-channel network is most often characterized in practice by self-managed teams, in which all group members are free to contribute and no one person takes on a leadership role,

A Exhibit 10- demonstrates the effectiveness of each network depends on the dependent able you’re concerned about. For instance, the structure of the wheel facilitates the emergence of a leader, the all-channel network is best if you are concerned with having high member satisfaction, and the chain is best if accuracy is most important. Exhibit 10-1 leads us to the conclusion that no single network will be best for all occasions.

The Grapevine

The formal system is not the only communication network in a group or organization. There is also an informal one, which is called the grapevine. And although the grapevine may be informal, this doesn’t mean it’s not an important source of information. For instance, a survey found that 75 per cent of employees hear about matters first through rumors on the grapevine.

The grapevine has three main characteristics. First, it is not controlled by management. Sed ond, it is perceived by most employees as being more believable and reliable than formal communiqués issued by top management. And third, it is largely used to serve the self-interests of the people within it.

One of the most famous studies of the grapevine investigated the communication pattern among 67 managerial personnel in a small manufacturing firm. The basic approach used was to learn from each communication recipient how he or she first received a given piece of information and then trace it back to its source. It was found that, while the grapevine was an important source of information, only 10 percent of the executives acted as liaison individuals, that is, passed the information on to more than one other person. For example, when one executive decided to resign to enter the insurance business, 81 percent of the executives knew about it, but only 1 percent trans mitted this information to others.

Two other conclusions from this study are also worth noting. Information on events of general interest tended to flow between the major functional groups (production, sales) rather than within them. Also, no evidence surfaced to suggest that any one group consistently acted as liaisons; rather different types of information passed through different liaison persons

An attempt to replicate this study among employees in a small state government office also found that only 10 percent act as liaison individuals. This finding is interesting, because the replication contained a wider spectrum of employees, including operative as well as managerial personnel. But the flow of information in the government office took place within, rather than between functional groups. It was proposed that this discrepancy might be due to comparing an executive-only sample against one that also included operative workers. Managers, for example, might feel greater pressure to stay informed and thus cultivate others outside their immediate functional group. Also, in contrast to the findings of the original study, the replication found that a consistent group of individuals acted as liaisons by transmitting information in the government office.

Is the information that flows along the grapevine accurater The evidence indicates that about 75 percent of what is carried is accurate. But what conditions foster an active grapevine? What gets the rumor mill rolling?

It’s frequently assumed that rumors start because they make titillating gossip. This is rarely the case. Rumors emerge as a response to situations that are important to us, when there is amband under conditions that arouse anxiety. The fact that work situations frequently contain these three elements explains why rumors flourish in organizations. The secrecy and competition that typically prevailin large organizations around issues such as the appointment of new bosses, the relocation of offices, downsizing decisions, and the realignment of work assignments-create conditions that encourage and sustain rumors on the grapevine. A rumor will persist either until the wants and expectations creating the uncertainty underlying the rumor are fulfilled or until the anxiety is reduced

What can we conclude from the preceding discussion? Certainly the grapevine is an important part of any group or organization’s communication network and is well worth understanding gives managers a feel for the morale of their organization, identifies issues that employees consider important, and helps tap into employee anxieties. It acts, therefore, as both a filter and a feedback mechanism, picking up the issues that employees consider relevant. For employees, the grapevine is particularly valuable for translating formal communications into their group’s own jargon. Maybe more important, again from a managerial perspective, it seems possible to analyze grapevine information and to predict its flow, given that only a small set of individuals (approximately 10 percent) actively pass on information to more than one other person. By assessing which liaison individuals will consider a given piece of information to be relevant, we can improve our ability to explain and predict the pattern of the grapevine.

Can management entirely eliminate rumors? No. What management should do, however, is minimize the negative consequences of rumors by limiting their range and impact. Exhibit 10-5 offers a few suggestions for minimizing those negative consequences.

Communication Study Material Notes

Computer-Aided Communication

Communication in today’s organizations is enhanced and enriched by computer-aided technologies. These include electronic mail, instant messaging, intranet and extranet links, and videoconferencing, Electronic mail, for instance, has dramatically reduced the number of memos, letters, and phone calls that employees historically used to communicate among themselves and with suppliers, customers, or other outside stakeholders.

Email Electronic mail (or e-mail) uses the Internet to transmit and receive computer generated text and documents. Its growth has been spectacular. Most white collar employees now regularly use e-mail. And while the common belief is that people are being swamped with e-mails, a recent study found that the majority of American workers who have access to e-mail at work receive 10 or fewer e-mails a day. Only six percent of employees with e-mail access report receiving more than 50 mes sages per day. 22

Communication Study Material Notes

As a communication tool. e-mail has a long list of benefits. E-mail messages can be quickly we ten, edited, and stored. They can be distributed to one person or thousands with a click of a mouse They can be read, in their entirety, at the convenience of the recipient. And the cost of sending to mal e-mail messages to employees is a fraction of what it would cost to print, duplicate, and distribute a comparable letter or brochure.

Email, of course, is not without its drawbacks I can used as a distraction from serious work activities. For instance, an employee in the Washington State Department of Labor and Industries was found to have sent 100 personale m e irone month, while sending only I work related e-mails during that same period. According to a survey, 17 percent of employees send up to five personal e-mails per day, 32 percent send upto 10 personal e-mails and 28 percent receive as man as 20 personal e-mails per day. The survey revealed that one of live employees view online poronography at work and that 70 percent of adult websites are hit between 9 A.M. and 5 P.M. It is estimated that 30 to 10 percent of employees’ Internet activity is not business related and costs over a billion dollar in loss of productivity. E-mails also lack emotional content. The nonverbal Cues mamce-to-face message or the tone of voice from a phone call convey import tion that doesn’t come across in e-mail, although efforts have been made to create emotional icons (see Exhibit 10-6). In addition, e-mails tend to be cold and impersonal. As such, they’re not the ideal means to convey information like layoffs plant closings, or other messages that might evoke emotional responses and require empathy or social support. Finally, the remote nature of email fuels conflict spirals that have been found to escalate ill feelings at double the rate of face to-face communiqués. Many people seem to be able say things in e-mails that they would never say to someone face-to-face.

Instant Messaging It’s not just for teenagers anymore. Instant messaging (IM), which has been popular among teens for more than a decade, is now rapidly moving into business. 26

Instant messaging is essentially real-time e-mail. Employees create a list of colleagues and friends with whom they want to communicate. Then they just click on a name displayed in a small box on their computer screen, type in a message, and the message instantaneously pops up on the recipient’s screen

The growth of IM has been spectacular. In 2001, for instance, just 8 percent of American employees were using it. In 2003, it was up to 18 percent And experts estimate that by 2006. more people will be using IM than e-mail as their primary communication tool at work.”

IM is a fast and inexpensive means for managers to stay in touch with employees and for employees to stay in touch with each other. For instance, furniture retailer Jennifer Convertibles uses IM to communicate with managers in its 200-plus stores nationwide. Rhonda Sanderson, who lives in the suburbs of Chicago, is able to run her public relations firm in downtown Chicago almost completely by IM. With her seven staffers all on computers, Sanderson is never more than a few keystrokes away from all her employees. And Jeff Wenger, vice president at tax preparation and software company Tax Technologies Inc., uses IM to manage a team of software developers and testers who are scattered all over the United States. Wenger says IM has cut his daily telephone time from 3 hours to less than 30 minutes. 30

IM provides several advantages over e-mail. There’s no delay, no in-box clutter of messages, and no uncertainty as to whether the message was received. Managers also find that IM is an excellent means for monitoring employees’ physical presence at their work stations. With a glance at the contact lists, users can tell who’s logged on and available right now. 31

IM isn’t going to replace e-mail. E-mail is still probably a better device for conveying long me sages that need to be saved. IM is preferred for sending one or two-line messages that would just tarp an e-mail in-box. On the downside, some IM users find the technology intrusive and distracting. IM’s continual online presence can make it hard for employees to concentrate and stay focused Managers also indicate concern that IM will be used by employees to chat with friends and cool leagues about network issues. Finally, because instant messages are easily broken into many organizations are concerned about IM security.S2

Communication Study Material Notes

Meta group found that 57 percent of the people surveyed at 300 companies worldwide use IM at work for personal chitchat more often than for job related communication. Only three percent and five percent of companies prohibit personal use of the phone and e-mail, respectively. But nearly 16 percent of companies have banned the use of IM, 68 percent companies allow limited use of e-mail for non-work activity, but only 44 percent make a similar concession for IM.

Intranet and Extranet Links Intranets are private, organization-wide information networks that look and act like a Web site but to which only people in an organization have access. Intranets are rapidly becoming a popular means for employees within companies to communicate with each other. IBM, as a case in point, recently brought together 52,000 of its employees online for what it called Worldjam. Using the company’s intranet, IBMers everywhere swapped ideas on everything from how to retain employees to how to work faster without undermining quality.

The latest wrinkle in intranets is using high-speed wireless Internet access (Wi-Fi) for telephone calls within an organization. This voice over Wi-Fi allows employees to make and receive phone calls on the same wireless broadband network that an organization uses for Internet access. Bj’s Wholesale Club, for instance, is using voice over Wi-Fi to make it easier for employees and managers to talk with each other as well as with customers and suppliers. With stores that average more than 100,000 square feet, voice over Wi-Fi makes BJ’s employees readily accessible regardless of where they are in a store

In addition, organizations are creating extranet links that connect internal employees with selected suppliers, customers, and strategic partners. For instance, an extranet allows GM employees to send electronic messages and documents to its steel and rubber suppliers as well as to communicate with its dealers. Similarly, all Wal-Mart vendors are linked into its extranet system, allowing Wal-Mart buyers to easily communicate with its suppliers and for suppliers to monitor the inventory sta tus of its products at Wal-Mart stores

Videoconferencing is an extension of intranet or extranet systems. It permits employees in an organization to have meetings with people at different locations. Live audio and video images of members allow them to see, hear, and talk with each other. Videoconferencing technology, in effect, allows employees to conduct interactive meetings without the necessity of all physi cally being in the same location.

Communication Study Material Notes

In the late 1990s, videoconferencing was basically conducted from special rooms equipped with television cameras, located at company facilities. More recently, cameras and microphones are being attached to individual computers, allowing people to participate in videoconferences without leaving their desks. As the cost of this technology drops in price, videoconferencing is likely to be increasingly seen as an alternative to expensive and time-consuming travel. Summary Computer-aided communications are reshaping the way we communicate in organiza tions. Specifically, it’s no longer necessary for employees to be at their work station or desk to be “available.” Pagers, cellular phones, personal communicators, and phone messaging allow employ me to be reached when they’re in a meeting, during a lunch break, while visiting a customer across town, or during a golf game on Saturday morning. The line between an employee’s work and non work life is no longer distinct. In the electronic age, all employees can theoretically be “on call” 24 hours a day, 7 days a week.

Organizational boundaries become less relevant as a result of computer-aided communications. Networked computers allow employees to jump vertical levels within the organization, work full time at home or someplace other than an organizationally operated facility, and conduct ongoing communications with people in other organizations. The market researcher who wants to discuss an issue with the vice president of marketing (who is three levels up in the hierarchy), can bypass the people in between and send an e-mail message directly. And in so doing, the traditional status hierarchy, largely determined by level and access, becomes essentially negated. Or that same market researcher may choose to live in the Cayman Islands and work at home via telecommuting rather than do his or her job in the company’s Chicago office. And when an employee’s computer is linked to suppliers’ and customers’ computers, the boundaries separating organizations become further blurred. As a case in point, because Levi Strauss’ and Wal-Mart’s computers are linked, Levi is able to monitor Wal-Mart’s inventory of its jeans and to replace merchandise as needed, clouding the distinction between Levi and Wal-Mart employees.

Communication Study Material Notes

Knowledge Management

Our final topic under organizational communication is knowledge management (KM). This is a process of organizing and distributing an organization’s collective wisdom so the right information crets to the right people at the right time. When done properly. KM provides an organization with both a competitive edge and improved organizational performance because it makes its employees smarter. Siemens, the global telecommunications giant, recently won a $460.000 contract in Switzer rience and provide the Swiss sales reps with technical data that proved that the Siemens network would be substantially more reliable than the competition’s Sicmens is one of a growing number of companies including Cisco Systems, Ford British Tele com. Johnson & Johnson, IBM, Whirlpool, Intel, Volkswagen Chevron Texaco, and Royal Bank of Canada-that have realized the value of knowl rganizations that can quickly and efficiently tap edge management. In fact, a recent survey found that 81 percent of the Into their employee’s collective experience and leading organizations in Europe and the United States say they have, or wisdom are more likely to “outsmart their are at least considering adopting, some kind of KM system.”

Communication Study Material Notes

Knowledge management is increasingly important today for at least competition three reasons. First, in many organizations, intellectual assets are now as important as physical or financial assets. Organizations that can quickly and efficiently tap into their employees’ collective experience and wisdom are more likely to “outsmart their competition. Second, as baby boomers begin to leave the workforce, there’s an increasing awareness that they represent a wealth of knowledge that will be lost if there are no attempts to capture it. And third, a well-designed KM system will reduce redundancy and make the organization more efficient. For instance, when emplovees in a large organization undertake a new project, they needn’t start from scratch. A knowledge-management system can allow them to access what previous employees have learned and cut wasteful time retracing a path that has already been traveled.

How does an organization record the knowledge and expertise of its employees and make that information easily accessible? It needs to develop computer databases of pertinent information that employees can readily access; it needs to create a culture that supports and rewards sharing: and it has to develop mechanisms that allow employees who have built up valuable expertise and insights to share them with others.

KM begins by identifying what knowledge matters to the organization.2 Management needs to review processes to identify those that provide the most value. Then it can develop computer networks and databases that can make that information readily available to the people who need it most. But KM won’t work unless the culture supports sharing of information. As we’ll show in Chapter 13, information that is important and scarce can be a potent source of power. And people who hold that power are often reluctant to share it with others. So KM requires an organizational culture that promotes, values, and rewards sharing knowledge. Finally, KM must provide the mechanisms and the motivation for employees to share knowledge that employees find useful on the job and enables them to achieve better performance.44 More knowledge isn’t necessarily better knowledge. Information overload needs to be avoided by designing the system to capture only pertinent information and then organizing it so it can be quickly accessed by the people whom it can help. Royal Bank of Canada, for instance, has created a KM system with customized e-mail distribution lists carefully broken down by employees’ specialty, title, and area of interest; set aside a dedicated site on the company’s intranet that serves as a central information repository; and created separate in-house Web sites featuring “lessons learned” summaries, where employees with various expertise can share new information with others.*

To increase the effectiveness of knowledge management, which was adopted in 2000, the performance evaluation of employees was linked to knowledge management. The senior executives of the company started using balance scorecards to monitor the performance of employees. TISCO also has a formal rewards and recognition system for knowledge management. In 2003 TISCO was chosen as one of Asia’s most admired knowledge enterprises.16

Communication Study Material Notes