Effective Communication, Control, and Change Management in Organizations

One-way Communication

A process in which information flows in only one direction - from the sender to the receiver, with no feedback loop.

Two-way Communication

A process in which information flows in two directions - receiver provides feedback, and sender is receptive to the feedback.

Channel (Medium)

Verbal or written communication.

Noise

Anything that interferes with the transmission of the message including distractions and multi-tasking.

Filtering

The Sender's distortion or withholding of information to manage a person's reactions.

Selective perception

The Receiver's focus on specifics of the message that appeal to him/her.

Information overload

Humans can only process so much information when under time constraints.

Emotional disconnects

Happen when the Sender or the Receiver is upset, he/she tends to ignore or distort the message.

Grapevine

Also known as office gossip.

Semantics

Words can mean different things to different people.

Jargon

A specific set of acronyms or words unique to a specific group or profession.

Gender differences in communication

Have been documented between men and women.

Biased language

Offensive language that stereotypes others on the basis of their personal or group affiliation.

Intonation

An emphasis given to certain words when spoken that changes the meaning.

Media (Information) richness

The more a message utilizes multiple senses, it is thought to be high in information richness. An example of high information richness is videoconferencing.

Reflection

Process by which a person states what he or she believes the other person is saying.

Boundaryless organizations

One in which there are no barriers to information flow.

Digital communication

Beneficial because it reduces time and expenses devoted to traveling, an aspect of the boundaryless organization.

Advantages of Written Communication

Provides a tangible and verifiable record; Record can be saved and stored.

Disadvantages of Written Communication

Time consuming; lacks feedback; may not be read.

Downward communication

Information that flows from higher to lower levels in the organization's hierarchy (e.g., coaching, assign goals, provide instructions/feedback).

Upward communication

Information that flows from lower to higher levels in the organization's hierarchy (e.g., inform boss of progress, relay current problems).

Horizontal communication

Information shared among people on the same hierarchical level (e.g., facilitate coordination).

Control

Any process that directs the activities of individuals toward the achievement of organizational goals.

Bureaucratic control

The use of rules, regulations, and authority to guide performance.

Market control

Control based on the use of pricing mechanisms and economic information to regulate activities within organizations.

Clan (Normative) control

Control based on the norms, values, shared goals, and trust among group members.

Standard

Expected performance for a given goal: a target that establishes a desired performance level, motivates performance, and serves as a benchmark against which actual performance is assessed.

Principle of exception

A managerial principle stating that control is enhanced by concentrating on the exceptions to or significant deviations from the expected result or standard.

Feedforward control

Takes place before operations begin and includes policies, procedures, and rules designed to ensure that planned activities are carried out properly.

Concurrent control

Takes place while plans are being carried out. It includes directing, monitoring, and fine-tuning activities as they occur.

Feedback control

Focuses on the use of information about results to correct deviations from the acceptable standard after they arise.

Six sigma

A process is producing fewer than 3.4 defects per million, which means it is operating at a 99.99966 percent level of accuracy.

Audit

A due diligence check of a particular activity or process.

Activity-based costing

A method of cost accounting designed to identify streams of activities and then to allocate costs across particular business processes according to the amount of time employees devote to particular activities.

Budgeting

The process of investigating what is being done and comparing the results with the corresponding budget data to verify accomplishments or remedy differences.

Balance sheet

A report that shows the financial picture of a company at a given time and itemizes assets, liabilities, and stockholders' equity (assets = liabilities + stockholders' equity).

Assets

The values of the various items the corporation owns.

Liabilities

The amounts a corporation owes to various creditors.

Stockholders' equity

The amount accruing to the corporation's owners.

Current ratio

A liquidity ratio that indicates the extent to which short term assets can decline and still be adequate to pay short-term liabilities.

Debt-equity ratio

A leverage ratio that indicates the company's ability to meet its long-term financial obligations.

Return on investment (ROI)

A ratio of profit to capital used, or a rate of return from capital.

Balanced scorecard

Control system combining four sets of performance measures: Financial, Customer, Business process, Learning and growth.

Normative controls

Should be used when there is no 'one best way' to do a job and employees are empowered to make decisions.

Control systems

Must use multiple approaches to meet various employee needs.

Organizational development

The system-wide application of behavioral science knowledge to develop, improve, and reinforce the strategies, structures, and processes that lead to organizational effectiveness.

Disruptive innovation

The process by which a product, service, or business model takes root initially in simple applications at the bottom of a market and then moves 'up market,' eventually displacing established competitors.

Technology audit

Process of clarifying the key technologies on which an organization depends.

Emerging technologies

Technologies that are still under development but may significantly alter the rules of competition in the future.

Pacing technologies

Technologies that have yet to prove their full value but have the potential to provide a significant advantage that alters the rules of competition.

Key technologies

Technologies that have proved effective but offer a strategic advantage because not everyone uses them.

Base technologies

Commonplace technologies in the industry; everyone must have them and they provide little competitive advantage.

Make-or-buy decision

The question an organization asks itself about whether to acquire new technology from an outside source or develop it itself.

Chief information officer

Coordinates the technological efforts of the various business units and identifies ways that technology can support the company's strategy.

Technical innovator

A person who develops a new technology or has the key skills to install and operate the technology.

Product champion

A person who promotes the idea throughout the organization, searching for support and acceptance.

Executive champion

An executive who has the status, authority, and financial resources to support the project and protect the product champion.

Strategic Intervention

Helping organizations conduct mergers and acquisitions, change their strategies, and develop alliances.

Techno-structural Intervention

Enhancing organization structure and design, employee involvement, and work design.

Human resource management Intervention

Attracting good people, setting goals, and appraising/rewarding performance.

Human process Intervention

Improving conflict resolution, team building, communication, and leadership.

Active resistance

The most negative reaction to a proposed change attempt.

Passive resistance

Being disturbed by changes without necessarily voicing these opinions.

Compliance

Going along with proposed changes with little enthusiasm.

Enthusiastic support

Defenders of the new way and those who actually encourage others to give support to the change effort.

Reactive

Responding to pressure after a problem has arisen.

Proactive

Anticipating and preparing for an uncertain future.

Lewin's change process

Unfreezing, Movement, and Refreezing.

Change-Specific Reasons for Resistance

Self-interest; Misunderstanding; Different assessments; Management tactics.

Kotter's 8 Steps

1. Establishing a sense of urgency 2. Creating the guiding coalition 3. Developing a vision and strategy 4. Communicating the change vision 5. Empowering broad-based action 6. Generating short-term wins 7. Consolidating gains and producing more change 8. Anchoring new approaches in the culture.