Lecture 1:

Foundations of Business and

Organizational Communication
Foundations of Business and
Organizational Communication
I. The Communication Connection
A. Communication
B. Organizational Communication

II. The Nature of Communication

A. Critical Components of Communication
B. Functions of Communication in Organization

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Foundations of Business and
Organizational Communication
III. Organizational Communication Networks
A. Formal Communication Networks
1. Three Types of Communication Flow
 Downward information flow

 Elements that flow downward

 Best bets to improve downward communication

 Upward information flow

 Factors that allow upward communication to be

effective
 Best bets to improve upward communication

 Horizontal information flow

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Foundations of Business and
Organizational Communication
A. Formal Communication Networks
2. Limitations for Formal Communication Network
 Limit Lower-level employees’ access to decision makers
 Each link in the communication chain is a potential
source of blockage or distortion
B. Informal Communication Networks
1. Grapevine Communication
2. Management by Walking Around (MWA)

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Foundations of Business and
Organizational Communication
IV. Factors Affecting Communication
Effectiveness
A. Communication Climate
 Supportive Climate vs. Defensive Climate

B. Management Styles
 Theory X
 Theory Y
 Theory Z

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Foundations of Business and
Organizational Communication
V. Barriers to Effective Communication

VI. Ways to Overcome Barriers

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 Communication
Communication:
is a process by which information is exchanged
between or among individuals through a common
system of symbols, signs, and behavior --
resulting in shared meanings between sender and
receiver

(Source: Richardmond V., & McCroskey, J., 1992, p19)

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Organizational Communication
Organizational Communication:
 Communication which originates within organization
 Communication: A process through which people act
together, create, sustain, and manage meanings
through the use of verbal and non-verbal signs and
symbols within a particular context.
 Interpersonal & Organizational Dimensions

Source: Conrad, C. (1994). Strategic organizational communication: Toward the

twenty-first century. (3rd ed.)., p.3.

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Critical Components of
Communication

1. Source
2. Message
3. Channel
4. Receiver
5. Feedback

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 Critical Components of
Communication

Barriers

Source Receiver
Message Channel(s)
(Encoder) (Decoder)

Feedback

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 Assessment of Communication
Channel
METHOD ADVANTAGES DISADVANTAGES
Phone  Speed  Words and figures might be
 Permits give-and-take of misunderstood
questions  No record of conversation
 Might be interruption of
ongoing work
In Person  Visual  The time may not be
 Permits better meeting of convenient to you or the other
minds person
Informal  Brief  No immediate reply
Note /  Can be filed “for the record”  Your memo is at the mercy of a
Memo routine delivery and the bulk of
 Permits considered statement
 Greater impact than spoken receiver’s mail, or his
words disinclination to check his in-
box. 11
 Assessment of Communication
Channel (cont’d)

METHOD ADVANTAGES DISADVANTAGES

Formal  Complete  Requires considerable time
Report  Permits time for organizing
material
 Can be reported to others
 Authoritative
E-mail  Speed  Overuse
 Reduced cost  Lack of privacy
 Convenience  Message overload
 Open communication  Less face-to-face
communication

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 Functions of Communication
in Organization

Function Characteristics
1. To inform Provides needed information to personnel;
usually conducted in a written format

2. To regulate Involves the communication that is directed

toward regulatory policies within the
organization; information usually not pleasant
3. To integrate Focuses on coordination of task, work
assignment, and group coordination

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 Functions of Communication
in Organization (cont’d)
Function Characteristics

4. To manage Focuses on getting personnel to do what is

needed, establishing relationships with
personnel
5. To persuade Attempts to influence the employee to do
something in particular

6. To socialize Focuses on the individual being integrated

into the communication networks. It means
being told whom one should talk to and what
one should talk about
(Sources: Richmond & McCroskey, pp. 24 - 25) 14
 Three Types of Communication
Flow
Type Advantages

Downward  Lets managers direct activities of

employees

Upward  Helps managers monitor performance and

obtain ideas

Lateral /  Promotes flow between departments or

Horizontal  among peers
 Helps employees to do their job efficiently
 Depends on the degree of cross-functional
interaction required by the organization 15
Downward Information Flow
Five Elements that Generally Flow
Downward in All Organizations:
1. Job instruction
2. Rationale - explanation of a duty or assignment
3. Ideology - encourages employees to “buy into the
organization”  loyalty
4. Information; regulations; changes in benefits
5. Feedback - performance appraisal
Source: Katz and Kahn (1978)
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Downward Information Flow
(cont’d)
Best Bets for Improving
Downward Communication:
1. Small group meetings that permit exchange of
information
2. Company publications
3. Supervisory meetings between managers and direct
subordinates
4. Mass meetings of employees
5. Other methods: bulletin boards, inserts in pay
envelopes, public address announcements, posters,
audiovisual presentations

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Upward Information Flow
Four Factors that Are Most Likely to
Influence Upward Communication:
1. Positive tone
2. Appropriate time
3. Messages that support current policy
4. Right person

(Sources: Koehler and Huber, 1974)

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Upward Information Flow
(cont’d)
Best Bets for Improving Upward
Communication:
1. Informal discussions with one or a few employees
2. Discussions between higher management and
first-level supervisors
3. Attitude surveys
4. Outside counseling
5. Discussions with union representatives
6. Suggestion systems
7. Internal publications with complaint or question /
answer columns
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Limitations for Formal
Communication Network
1. Limits lower-level employees’ access to
decision makers

2.Each link in the communication chain is a

potential source of blockage or distortion

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Limitations for Formal
Communication Network (cont’d)
Example:
The amount of information loss
Board of Directors 100%

Vice Presidents 63%

General Supervisors 56%

Plant Managers 40%

General Foremen 30%

Workers 20%
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Informal Communication
Networks
Grapevine communication

 Contains a mix of business and personal messages

 FACTS + ASSUMPTIONS + OPINIONS
 Enables the organization to function efficiently

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 Communication Climates:
Supportive (Open) Vs Defensive (Close)
In Supportive Climates
 Managers view themselves and
their employees as equal
 Managers ask questions and
analyze answers
 Communication is
straightforward
 Managers encourage group
problem solving
 Managers are flexible and willing
to change their views
 Managers empathize with
employees
In Defensive Climate
 Managers view themselves as
superior
 Managers pass judgment
 Communication is manipulative, full
of hidden meanings and ambiguity
 Managers impose solutions
 Managers are dogmatic and certain
about answers
 Managers are indifferent to
employees’ feelings 23
Management Styles
1. Theory X (McGregor)
Workers are viewed as lacking motivation, requiring
control through fear; closed communication climate

2. Theory Y (McGregor)
Workers are viewed as motivated and responsible,
deserving encouragement and support; open
communication climate
3. Theory Z (Ouchi)
Workers are viewed as part of a family or team; open
communication climate; participative management

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Barriers to Effective Communication
A. Climate control – closed or inadequate
communication climate
B. Emotional interference
C. Information overload
D. Defensiveness
E. Poor listening skills
F. Cultural differences

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Ways to Overcome Barriers
A. Foster an open communication climate
B. Avoid defensive reactions
C. Facilitate feedback from others by listening
with open mind
D. Understand intercultural communication

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~ The End ~

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