MGT3002

Communication in Business © 2016 South University

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Organizational Behavior

©2016 South University

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MGT3002 W3 L3

Communication is a workplace factor that can both create and solve problems. In the following section, you will learn about the functions and purposes of communication in an organization.

Communication has four principal functions in an organization— control, motivation, emotional expression, and information. Communication performs a control function in matters concerning organizational structure, roles, and guidelines that are necessary for people to function within the organization. For example, instructions and feedback help to influence and direct employee behavior.

When a manager offers feedback to employees and clarifies the goals to be achieved, the manager is using the motivating function of communication. Social interactions also occur in the workplace where people communicate with each other on a personal level. This emotional expression helps to strengthen both interpersonal bonds and group cohesiveness.

Sharing some good news with colleagues and discussing an upcoming staff party or holiday event are both examples of emotional expression in communications.

Finally, the most fundamental purpose of communication is to inform. People in organizations need to disseminate and receive

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Organizational Behavior

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information constantly in order to perform effectively. If information is missing or late, the wrong decisions can be made or the wrong actions taken.

Memos and e-mails sent out by top management to employees, new policy announcements, and staff meetings serve as the informing function in many organizations. However, communication must be regular and continuous; otherwise employees and management cannot make effective and informed decisions, which can result in problems for the company.

In order to communicate, the source or sender transmits a message whose information has to be translated into a language. This process is known as encoding and the final message is the output of the process. The message is then transmitted through a channel or medium which may be either formal or informal. Formal channels of communication are used by organizations while informal channels are personal and social. The receiver needs to decode the message in order to comprehend it. Decoding is the reverse of the encoding process.

Finally, there is the feedback loop which indicates to the sender whether the message has been received and understood. In response to this feedback, another episode of communication may begin.

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Organizational Behavior

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Organizations generally use vertical and lateral communications. Vertical communications flow between hierarchical levels where downward communications are sent by higher levels to lower levels. For example, managers send instructions, assign goals, inform about policies, and give feedback about performance to their subordinates. In response, subordinates send progress reports, report problems, and give feedback through the same vertical channels. Lateral communications permit employees to share, discuss, and jointly analyze information and data.

We communicate most often using an oral or spoken language. When a communication channel is available, this is the fastest and simplest method of communication having the advantage of immediate feedback in the form of clarifications and corrections.

Within an organization, spoken communication can have several disadvantages. When a message is transmitted through a large

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Organizational Behavior

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number of people it can become distorted, people can forget important details, and the message can be delayed or even lost when many people are involved. Thus, companies often need to rely upon written communication to reduce these problems. However, it is important to remember that while written messages can be stored for later reference they can also be time-consuming to write and can sometimes overwhelm an organization.

To be most effective a manager will often use both written and oral communications. For example, discussions of new company policies and directives between managers and subordinates can help all company members to understand them more clearly. The involvement of employees in this process can also help them to feel more committed to company policies.

An important part of informal communications in an organization is the "unofficial" network known as the grapevine. The grapevine is a very important source of information but it can also be a source of unfounded rumors. Whether or not the information obtained through the grapevine is distorted most employees still perceive this information as reliable.

When a company is in crisis the grapevine becomes more active; it can also become a source of additional problems. This is because anxieties and uncertainties may run high, leaving informal communications more vulnerable to change during transmission. One of the best ways to deal with these problems is to open more channels of discussion between management and employees. This can clarify issues and also reduce doubts and anxieties. Unfortunately, however, many companies actually close the usual face-to-face channels during times of crises, thus accentuating the problems and increasing uncertainty and anxiety among both employees and managers.

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Organizational Behavior

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Apart from oral and written communication, we also communicate nonverbally through facial expressions, physical distance, body language, and the tone of our voice. In fact, research has shown that 60% to 90% of communication is nonverbal.

There are a number of barriers that can reduce the effectiveness of communication. For example, selective perception may cause a person to leave out some important aspects of a conversation. This can reflect the person's unwillingness to confront unpleasant realities in the workplace or difficulties with fellow employees.

Companies may subject employees to information overload, which can cause people to ignore or forget information. Emotions can also change how a person understands and interprets a message.

These people may experience heightened tensions and anxieties when involved in any kind of communication. They often limit communications to the point where they subconsciously leave others confused or misdirected. In extreme cases, they may become isolated and may only communicate with people with whom they feel secure.