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Jone8e_PPT_C13.pptxCHAPTER 13
Effective Communication and IT Management
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Learning Objectives (1 of 2)
13-1. Explain why effective communication helps an organization gain competitive advantage.
13-2. Describe the communication process.
13-3. Define information richness, and describe the information richness of communication media available to managers.
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Learning Objectives (2 of 2)
13-4. Articulate three reasons why managers must have access to information to perform their tasks and roles effectively.
13-5. Describe the advances in IT and their impact on management and business operations.
13-6. Explain the differences between six different kinds of management information systems.
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Communication and Management
Communication
The sharing of information between two or more individuals or groups to reach a common understanding
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Be it email, electronic reports, Twitter, or Facebook, humans are the common ingredient—people either individually or in groups, sharing information. However, communication has not been accomplished until an understanding is reached.
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Importance of Good Communication
Increased efficiency in new technologies and skills
Improved quality of products and services
Increased responsiveness to customers
More innovation through effective communication
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Communication is extremely important to an organization. It lets all members know what the goals are and how to get achieve them. How else would subordinates know what their tasks are? How would management know of problems and challenges at all levels? How would members of a team ask for needed resources? There must be communication, effective communication, in order for an organization to work properly.
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The Communication Process (1 of 5)
Transmission Phase
Information is shared by two or more individuals or groups
Feedback Phase
A common understanding is assured
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In both phases, a number of distinct stages must occur for communication to take place.
Transmission Phase:
Sender sends message.
Message is encoded and sent through a medium.
The receiver decodes the message.
Feedback Phase:
The process is essentially reversed.
See following slide for figure.
The Communication Process (2 of 5)
Figure 13.1
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A sender encodes and sends a message through a medium.
The receiver receives and decodes the message.
In the feedback phase, the receiver becomes the sender and encodes and sends the message through a medium, and the initial sender, now the receiver, decodes the message.
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The Communication Process (3 of 5)
Sender
Person or group wishing to share information
Message
Information that a sender wants to share
Encoding
Translating a message into understandable symbols or language
Noise
Anything that hampers any stage of the communication process
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Starting the transmission phase, the sender, the person or group wishing to share information with some other person or group, decides on the message, what information to communicate. Then the sender translates the message into symbols or language, a process called encoding; often messages are encoded into words. Noise is a general term that refers to anything that hampers any stage of the communication process.
The Communication Process (4 of 5)
Receiver
Person or group for which a message is intended
Medium
Pathway through which an encoded message is transmitted to a receiver
Decoding
Interpreting and trying to make sense of a message
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Once encoded, a message is transmitted through a medium to the receiver, the person or group for which the message is intended. A medium is simply the pathway, such as a phone call, a letter, a memo, or face-to-face communication in a meeting, through which an encoded message is transmitted to a receiver. At the next stage, the receiver interprets and tries to make sense of the message, a process called decoding. This is a critical point in communication.
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The Communication Process (5 of 5)
Verbal Communication
The encoding of messages into words, either written or spoken
Nonverbal Communication
The encoding of messages by means of facial expressions, body language, and styles of dress
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Nonverbal communication:
Facial expressions
Body language
Style of dress
Other examples?
Ask students for some goals of nonverbal communication and how to achieve them, without verbal communication.
Information Richness and Communication Media (1 of 7)
Information Richness
The amount of information that a communication medium can carry and the extent to which the medium enables the sender and receiver to reach a common understanding
Managers and their subordinates can become effective communicators by:
Selecting an appropriate medium for each message—there is no one “best” medium
Considering information richness
A medium with high richness can carry much more information to aid understanding.
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Each circumstance needs an appropriate communication devise, or medium, determined by management.
How should promotions or new hires be communicated to the members of the organization?
What is the best medium of communication when a company announces layoffs?
When are emails appropriate and when are they not?
The Information Richness of Communication Media (2 of 7)
Figure 13.2
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The Information Richness of Communication Media (3 of 7)
Face-to-Face Communication
Has highest information richness
Can take advantage of verbal and nonverbal signals
Provides for instant feedback
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Face-to-face communications often help a manager to cut to the quick; it is much faster than the exchange of a number of emails, and could well avoid any misunderstandings that might happen with emails. Emails, and even emails with emojis—which are discouraged in business, are devoid of valuable nonverbal human signs—smiles, frowns, knitted brows of concern.
Topics for Discussion (1 of 5)
Why is face-to-face communication between managers still important in an organization? [LO 13-2, 13-3 ]
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Face-to-face communication is the medium that is highest in information richness. When managers communicate face-to-face, they not only can take advantage of verbal communication but they also can interpret each other’s nonverbal signals such as facial expressions and body language. Managers can respond to these nonverbal signals on the spot. Face-to-face communication also enables managers to receive instant feedback. Points of confusion, ambiguity, or misunderstanding can be resolved, and managers can cycle through the communication process as many times as they need to, to reach a common understanding.
State-of-the art information systems can improve the competitiveness of an organization. Indeed, the search for competitive advantage is driving much of the rapid development and adoption of IT systems. By improving the decision making capability of managers, management information systems should help an organ1zation enhance its competitive position.
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The Information Richness of Communication Media (4 of 7)
Management by Wandering Around
Face-to-face communication technique in which a manager walks around a work area and talks informally with employees about issues and concerns
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A manager might take a stroll through a cubicle-laden floor or walk among the workers on the factory floor. Doing so not only opens up the manager and employees to better relationships, but allows employees the chance to informally address concerns or issues. The manager gains information on the workings at the lower levels, and employees to get to know the manager better.
However, increasingly people are working remotely, decreasing the chance for “wandering around.” The weekly check-in call, or even video call, might be advisable.
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The Information Richness of Communication Media (5 of 7)
Spoken Communication Electronically Transmitted
Has the second-highest information richness
Telephone conversations are information rich with tone of voice, sender’s emphasis, and quick feedback, but provide no visual nonverbal cues
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Even though employees often work from home now, or even if management works at one site and employees at another, face-to-face communication is not lost. Companies often use apps such as Skype or Facetime for a face-to-face communication. Many job interviews are now conducted remotely as well.
The Information Richness of Communication Media (6 of 7)
Personally Addressed Written Communication
Has a lower richness than the verbal forms of communication but still is directed at a given person
Excellent media for complex messages requesting follow-up actions by receiver
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This low-richness form of communication can enhance a face-to-face communication. With a follow-up written letter, a manager can solidify the essence of the meeting and reiterate the details discussed. Written communication is often preferred for complex instructions or reports.
The text gives the example of Karen Stracker, a hospital administrator and how she communicated new instructions for denial of insurance benefits.
The Information Richness of Communication Media (7 of 7)
Impersonal Written Communication
Has the lowest information richness
Good for messages to many receivers where little or no feedback is expected (such as newsletters, reports)
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IBM’s employee communications typically comes through the company’s intranet, known internally as W3, and it has led a transformation from professional to user-generated content within the company.
Topics for Discussion (2 of 5)
Which medium (or media) do you think would be appropriate for each of the following kinds of messages a subordinate could receive from his or her boss: (a) a raise, (b) not receiving a promotion, (c) an error in a report prepared by a subordinate, (d) additional job responsibilities, and (e) the schedule for company holidays for the upcoming year? Explain your choices. [LO 13-3]
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a. A raise should be communicated face-to-face and then followed up in writing.
b. Not receiving a promotion should be communicated face-to-face.
c. An error in a report should be communicated face-to-face because nonverbal cues are important in this case.
d. Additional job responsibilities should be originally communicated face-to-face to ensure that the subordinate understands the change and then followed up in writing.
e. The holiday schedule should be sent to employees by email or memo, enabling them to keep the document for further reference.
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Impersonal Written Communication (1 of 2)
Information Overload
A superabundance of information that increases the likelihood that important information is ignored or overlooked and tangential information receives attention
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One of the challenges for today’s managers and employees is determining which emails to access first and which can sit in the inbox longer, and for how long, and which can even be deleted. Most email applications are addressing these challenges with how they are organized.
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Impersonal Written Communication (2 of 2)
Blog
A website on which an individual, group, or organization posts information, commentary, and opinions and to which readers can often respond with their own commentary and opinions
Social Networking Site
A website that enables people to communicate with others with whom they have some common interest or connection
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Blogs can be written by managers and intended for company use, and corporations can also sponsor their own blogs intended for intra-company use. A corporate blog might tout a new advancement for the company, introduce new employees, or highlight employees’ accomplishments.
Social networking sites have become an integral part of today’s society, but one of the concerns it brings for managers is the possibility of “loafing” by employees.
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Information and the Manager’s Job
Data
Raw, unsummarized, and unanalyzed facts
Information
Data that is organized in a meaningful fashion
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Information technology turns data into information, making managerial decisions easier.
Factors Affecting the Usefulness of Information
Figure 13.3
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Attributes of Useful Information
| Attributes | |
| Quality | The accuracy and reliability of available information affects the quality of decisions that managers make using the information. |
| Timeliness | The availability of real-time information that reflects current conditions, thereby allowing managers to maximize the effectiveness of their decisions. |
| Completeness | Complete information allows managers to consider all relevant factors when making decisions. |
| Relevance | Having information specific to a situation assists managers in making better decisions. |
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What Is Information Technology?
Information Technology
The set of methods or techniques for acquiring, organizing, storing, manipulating, and transmitting information
Management Information System
A specific form of IT that managers utilize to generate the specific, detailed information they need to perform their roles effectively
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Essential to a company’s success in today’s environment is the use of information technology. Not using it or using it ineffectively, can make a company uncompetitive.
Recent IT: inventory management and customer relationship management (CRM) systems
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Information and Decisions
Most of management is about making decisions.
To make effective decisions, managers need information, both from inside the organization and from external stakeholders.
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The marketing manager must decide what price to charge for a product, what distribution channels to use, and what promotional messages to emphasize to maximize sales.
The manufacturing manager must decide how much of a product to make and how to make it.
The purchasing manager must decide from whom to purchase inputs and what inventory of inputs to hold.
The human relations manager must decide how much employees should be paid, how they should be trained, and what benefits they should be given.
The engineering manager must make decisions about new product design.
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Topics for Discussion (3 of 5)
What is the relationship between information systems and competitive advantage? [LO 13-1]
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To achieve high performance, managers in various functions and divisions must have access to information concerning the activities in other functions and divisions. The greater the flow of information and knowledge between functions and divisions, the more learning that can take place. Such knowledge and expertise is often the source of competitive advantage and profitability.
State-of-the art information systems can improve the competitiveness of an organization. Indeed, the search for competitive advantage is driving much of the rapid development and adoption of IT systems. By improving the decision making capability of managers, management information systems should help an organ1zation enhance its competitive position.
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Information and Control
Managers achieve control over organizational activities by:
Establishing measurable standards of performance
Measuring actual performance
Comparing actual performance against established goals
Evaluating the results and taking corrective action if necessary
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The text gives the example of UPS in its discussion of information and controls.
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Information and Coordination
Managers use information technology to coordinate department and divisional activities to achieve organizational goals
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Example: Starbucks’ Origin Experience, discussed in the text.
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Effects of Advancing IT
IT helps create new product opportunities that managers can take advantage of.
IT creates new and improved products that reduce or destroy demand for established products.
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Traditional telephone companies such as AT&T, Verizon, and other long-distance companies the world over have seen their market dominance threatened by companies offering Internet, broadband, and wireless technology. They have been forced to respond by buying wireless cellphone companies, building their own high-powered broadband networks, and forming alliances with companies such as Apple and Samsung to make phones that will work on their networks.
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IT and the Product Life Cycle
Product Life Cycle
The way demand for a product changes in a predictable pattern over time
Figure 13.4
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Demand for every generation of a digital device such as a PC, smartphone, or tablet falls off when the current leaders’ technology is superseded by new products that incorporate the most recent IT advances. One reason the IT revolution is so important for managers is that advances in technology are one of the most significant determinants of the length of a product’s life cycle, as well as the level of competition in an industry.
Topics for Discussion (4 of 5)
How can information technology help in the new product development process? [LO 13-3 ]
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The new product development process is often global in nature. Information technology can help a company coordinate aspects of product development around the world. This can be done through conference calls, videoconferencing, emails, and even developing an internal website devoted to a product.
An operations information system can gather comprehensive data, organize it, and summarize it in a form that is of value to product development. A decision support system can provide models that help managers make better nonprogrammed decisions. Also, enterprise resource planning (ERP) systems can allow a company to link and coordinate the entire set of functional activities and operations necessary to move through the product development process.
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The Network of Computing Power
Network
Interlinked computers that exchange information
Four-tier network solution
Common
“External” mobile computing devices connect to desktops and laptops, which then go through “internal” rack servers to a company’s mainframe
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The ability to hook into a company’s IT system from afar has abetted the change from an in-office-only work force to a flexible, remote one—an employee can even work from the beach!
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Software Developments
Operating System Software
Software that tells computer hardware how to run
Applications Software
Software designed for a specific task or use
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The advancements in microprocessors and the development of user-friendly software applications, have enabled managers to acquire, organize, and communication information.
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The Organizational Hierarchy (1 of 2)
Traditionally, managers have used the organizational hierarchy as the main system for gathering information necessary to make decisions and to coordinate and control activities.
Drawbacks
Timeliness of information can be reduced.
Information can be distorted.
A tall structure can make for an expensive information system.
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Daniel McCallum, superintendent of the Erie Railroad in the 1850s
Management hierarchy also represented channels of communication
First modern management information system.
Example: Regular daily and monthly reports were fed up the management chain so that top managers could make decisions about, for example, controlling costs and setting freight rates.
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Six Computer-Based Management Information Systems
Figure 13.5
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The Organizational Hierarchy (2 of 2)
Information Distortion
Changes in meaning that occur as information passes through a series of senders and receivers
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Tall hierarchies have the disadvantage of effectively processing date in a timely manner, delaying the delivery of relevant and high-quality information to managers.
However, management hierarchy is still the best way to disseminate information today.
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Types of Information Systems (1 of 3)
Transaction Processing Systems
Systems designed to handle large volumes of routine transactions
First computer-based information systems handling billing, payroll, and supplier payments
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Supermarket managers use a transaction-processing system to record the sale of items and to track inventory levels.
Types of Information Systems (2 of 3)
Operations Information Systems
Systems that gather, organize, and summarize comprehensive data in a form that managers can use in their nonroutine coordinating, controlling, and decision-making tasks
Assist managers with nonroutine decisions, such as customer service and productivity
Decision Support Systems
An interactive computer-based management information system with model-building capability that managers can use when they must make nonroutine decisions
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Transaction-processing system > data into useful information > accessible form for managers
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Types of Information Systems (3 of 3)
Artificial Intelligence
Behavior performed by a machine that, if performed by a human being, would be called “intelligent”
Expert System
A management information system that utilizes human knowledge embedded in computer software to solve problems that ordinarily require human expertise
Enterprise Resource Planning (ERP) Systems
Multimodule application software packages that coordinate the functional activities necessary to move products from the design stage to the final customer
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Mimicking human expertise (and intelligence) requires technology that can, at a minimum, (1) recognize, formulate, and solve a problem; (2) explain the solution; and (3) learn from the experience.
Topics for Discussion (5 of 5)
Many companies have reported that it is difficult to implement advanced management information such as ERP. Why do you think that this is so? How might the roadblocks to implementation be removed? [LO 13-4 ]
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Individual users might exhibit resistance to use the information system. This could be from fear of the new technology (technophobia), a failure to appreciate the power of the technology, and lack of in-house support staff. This roadblock can be removed by making the technology more user-friendly and accessible to managers. In addition adequate training and support staff should be readily available. Also, implementation of information technology systems can change the way in which an organization is managed, and some managers may find these changes threatening to their power, authority, and job security.
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Types of Information Systems (6 of 6)
E-Commerce
Trade that takes place between companies and between companies and individual customers using technology and the Internet
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Although not totally replacing brick-and-mortar stores, online stores have enhanced the sales of many companies.
There are examples of online-only “stores,” however, that have proved successful. eBay and Etsy are two examples. And only recently has Amazon gone from online-only to adding some “brick and mortar” to their company.
E-Commerce Systems
Business-to-Business (B2B) Commerce
Trade that takes place between companies using technology and the Internet to link and coordinate the value chains of different companies
B2B Marketplace
An Internet-based trading platform set up to connect buyers and sellers in an industry
Business-to-Customer (B2C) Commerce
Trade that takes place between a company and individual customers using technology and the Internet
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The goal of B2B commerce is to increase the profitability of making and selling goods and services.
Through the use of technology, B2B commerce increases profitability because it allows companies to reduce operating costs and may improve overall quality.
BE THE MANAGER
As an expert in communication, how would you advise Chen?
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Perhaps you are not using your technological communication tools to the fullest extent. Email can be sent with an urgent notice or it can be sent as a task assignment with a required response. Using the task assignment feature would allow you to receive feedback from your employees and monitor where they are at any given time on a project. You also need to meet personally with your employees to set up a prioritizing system and seek more opportunities for face-to-face communication. Your employees appear to respond well to direct communication and may feel isolated from you if you only use email.
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APPENDICES
Long descriptions of images
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Appendix 1: The Communication Process
The chart shows the flow of information during the communication process. During the transmission phase, the message is encoded using a medium and is then decoded by the receiver. During the feedback phase, the receiver (now sender) sends a message back by encoding it using a medium. The original sender (now receiver) decodes this message. Noise can affect all aspects of the communication process.
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Appendix 2: The Information Richness of Communication Media
A graphic shows forms of communication on a scale from high-information richness to low-information richness. From high to low, the forms of communication are face-to-face communication, spoken communication electronically transmitted, personally addressed written communication, and impersonal written communication.
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Appendix 3: I T and the Product Life Cycle
The graphic shows how the demand for a product changes over time. During this process, a product goes through the product life cycle, which includes the embryonic stage, the growth stage, the maturity stage, and the decline stage. The growth is slow during the embryonic stage, steep in the growth stage, somewhat level during the maturity stage, and then downward during the decline stage.
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Appendix 4: Six Computer-Based Management Information Systems
The graphic shows a six computer-based management Information system along a continuum from programmed decision making to nonprogrammed decision making. Starting from programmed decision making, the systems include transaction processing systems, operation information systems, decision support systems, expert systems, enterprise resource planning systems, and e-commerce systems.
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