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Chosen Company is Kaiser Permanente

Research your chosen company.  Find a minimum of one library source, which will support your thesis in this assignment.  Review your assigned weekly lecture and text reading.  Select from this reading 3-5 key concepts, which will also support your thesis.  In a two to three page paper, address the questions below.  Your paper should follow APA format including a title and reference page.  The two to three page paper length requirement does NOT include the title page and reference page. 

Describe both the formal and informal communication methods within the organization.  Address whether or not the organization uses effective communication techniques.  Evaluate the role culture plays in both the formal and informal methods of communication.  Make recommendations for improvement for both informal and formal communications.   Describe how the organization uses teams.  Evaluate the effectiveness of the use of teams based on the model of team effectiveness described by Daft.

Notes from readings

Formal communication channels are those that flow within the chain of command or task responsibility defined by the organization. The three formal channels and the types of information conveyed in each are illustrated in Exhibit 17.6.55 Downward and upward communications are the primary forms of communication used in most traditional, vertically organized companies. However, many of today's organizations emphasize horizontal communication, with people continuously sharing information across departments and levels.

EXHIBIT 17.6 Downward, Upward, and Horizontal Communication in Organizations

(Daft, 2012, p. 578)

Downward Communication

The most familiar and obvious flow of formal communication, downward communication , refers to the messages and information sent from top management to subordinates in a downward direction. Managers can communicate downward to employees in many ways. Some of the most common are through speeches, videos, blogs, podcasts, and company intranets.

   It is impossible for managers to communicate with employees about everything that goes on in the organization, so they have to make choices about the important information to communicate.57 Unfortunately, many U.S. managers could do a better job of effective downward communication. The results of one survey show that employees want open and honest communication about both the good and the bad aspects of the organization's performance. But when asked to rate their company's communication effectiveness on a scale of 0 to 100, the survey respondents' score averaged 69. In addition, a study of 1,500 managers, mostly at first and second management levels, found that 84 percent of these leaders perceive communication as one of their most important tasks, yet only 38 percent believe they have adequate communication skills.

(Daft, 2012, p. 578)

Managers can do a better job of downward communication by focusing on specific areas that require regular communication. Downward communication usually encompasses these five topics:

· • Goals and strategies. Communicating new strategies and goals provides information about specific targets and expected behaviors. It gives direction for lower levels of the organization. Example: “The new quality campaign is for real. We must improve product quality if we are to survive.”

· • Job instructions and rationale. These directives indicate how to do a specific task and how the job relates to other organizational activities. For high-priority or time-sensitive issues, some managers use Twitter as a preferred channel of downward communication. With a limit of 140 characters, reading and replying to a “tweet” is a lot faster than other forms of communication.59 Example of a Twitter message: “Brand managers from Adele will attend our presentation at the Chicago trade show on October 24. We'll meet Friday at 9 A.M. to outline the presentation.”

· • Procedures and practices. These messages define the organization's policies, rules, regulations, benefits, and structural arrangements. Example: “After your first 90 days of employment, you are eligible to enroll in our company-sponsored savings plan.”

· • Performance feedback. These messages appraise how well individuals and departments are doing their jobs. Example: “Joe, your work on the computer network has greatly improved the efficiency of our ordering process.”

· • Indoctrination. These messages are designed to motivate employees to adopt the company's mission and cultural values and to participate in special ceremonies, such as picnics and United Way campaigns. Example: “The company thinks of its employees as family and would like to invite everyone to attend the annual picnic and fair on March 3.”

   A major problem with downward communication is drop-off, the distortion or loss of message content. Although formal communications are a powerful way to reach all employees, much information gets lost—25 percent or so each time a message is passed from one person to the next. In addition, the message can be distorted if it travels a great distance from its originating source to the ultimate receiver. A tragic example is the following historical case.

(Daft, 2012, p. 579)

Formal upward communication includes messages that flow from the lower to the higher levels of the organization's hierarchy. Most organizations take pains to build in healthy channels for upward communication. Employees need to air grievances, report progress, and provide feedback on management initiatives. Coupling a healthy flow of upward and downward communication ensures that the communication circuit between managers and employees is complete.61 Five types of information communicated upward are the following:

· • Problems and exceptions. These messages describe serious problems with and exceptions to routine performance to make senior managers aware of difficulties. Example: “The Web site went down at 2:00 A.M., and our engineers are currently working to resolve the problem.”

· • Suggestions for improvement. These messages are ideas for improving task-related procedures to increase quality or efficiency. Example: “I think we should eliminate step 2 in the audit procedure because it takes a lot of time and produces no results.”

· • Performance reports. These messages include periodic reports that inform management how individuals and departments are performing. Example: “We completed the audit report for Smith & Smith on schedule but are one week behind on the Jackson report.”

· • Grievances and disputes. These messages are employee complaints and conflicts that travel up the hierarchy for a hearing and possible resolution. Example: “After the reorganization of my district, I am working excessively long hours. I have lost any semblance of a work/life balance.”

Financial and accounting information. These messages pertain to costs, accounts receivable, sales volume, anticipated profits, return on investment, and other matters of interest to senior managers. Example: “Costs are 2 percent over budget, but sales are 10 percent ahead of target, so the profit picture for the third quarter is excellent.”

(Daft, 2012, p. 580)

Horizontal Communication

Horizontal communication is the lateral or diagonal exchange of messages among peers or coworkers. It may occur within or across departments. The purpose of horizontal communication is not only to inform but also to request support and coordinate activities. Horizontal communication falls into one of three categories:

· • Intradepartmental problem solving. These messages take place among members of the same department and concern task accomplishment. Example: “Kelly, can you help us figure out how to complete this medical expense report form?”

· • Interdepartmental coordination. Interdepartmental messages facilitate the accomplishment of joint projects or tasks. Example: “Michael, please ask your team to edit the IBM report using Google Docs by Monday morning.”

Change initiatives and improvements. These messages are designed to share information among teams and departments that can help the organization change, grow, and improve. Example: “We are streamlining the company travel procedures and would like to discuss them with your department.”

Personal Communication Channels

Personal communication channels exist outside the formally authorized channels. These informal communications coexist with formal channels but may skip hierarchical levels, cutting across vertical chains of command to connect virtually anyone in the organization. In most organizations, these informal channels are the primary way that information spreads and work gets accomplished. Three important types of personal communication channels are personal networks, the grapevine, and written communication.

The value of personal networks for managers is that people who have more contacts have greater influence in the organization and get more accomplished. For example, in Exhibit 17.7, Sharon has a well-developed personal communication network, sharing information and assistance with many people across the marketing, manufacturing, and engineering departments. Contrast Sharon's contacts with those of Mike or Jasmine, who are on the periphery of the network. Who do you think is likely to have greater access to resources and more influence in the organization? Here are a few tips from one expert networker for building a personal communication network:65

· • Build it before you need it. Smart managers don't wait until they need something to start building a network of personal relationships—by then, it's too late. Instead, they show genuine interest in others and develop honest connections.

· • Never eat lunch alone. People who excel at networking make an effort to be visible and connect with as many people as possible. Master networkers keep their social as well as business conference and event calendars full.

· • Make it win-win. Successful networking isn't just about getting what you want; it's also about making sure that other people in the network get what they want.

Focus on diversity. The broader your base of contacts, the broader your range of influence. Build connections with people from as many different areas of interest as possible (both within and outside the organization).

(Daft, 2012, p. 581)

Gossip typically travels along the grapevine, an informal, person-to-person communication network that is not officially sanctioned by the organization.68 The grapevine links employees in all directions, ranging from the CEO through middle management, support staff, and line employees. The grapevine will always exist in an organization, but it can become a dominant force when formal channels are closed. In such cases, the grapevine is actually a service because the information that it provides helps makes sense of an unclear or uncertain situation. Employees use grapevine rumors to fill in information gaps and clarify management decisions. One estimate is that as much as 70 percent of all communication in a firm is carried through its grapevine.69 The grapevine tends to be more active during periods of change, excitement, anxiety, and sagging economic conditions. For example, a survey by professional employment services firm Randstad found that about half of all employees reported first hearing of major company changes through the grapevine.70

   Surprising aspects of the grapevine are its accuracy and its relevance to the organization. About 80 percent of grapevine communications pertain to business-related topics rather than personal gossip. Moreover, from 70 to 90 percent of the details passed through a grapevine are accurate.

(Daft, 2012, p. 582)

Many managers would like the grapevine to be destroyed because they consider its rumors to be untrue, malicious, and harmful, which typically is not the case. Managers should be aware that almost five of every six important messages are carried to some extent by the grapevine rather than through official channels. In a survey of 22,000 shift workers in varied industries, 55 percent said they get most of their information via the grapevine.72 Smart managers understand the company's grapevine. “If a leader has his ear to the ground, gossip can be a way for him to get a sense of what his employees are thinking or feeling,” says Mitch Kusy, an organizational consultant, psychologist, and professor at Antioch University. 73 In all cases, but particularly in times of crisis, executives need to manage communications effectively so that the grapevine is not the only source of information.74

(Daft, 2012, p. 583)

Two additional aspects of effective manager communication are using social media to improve internal and external communication and developing strategies for managing crisis communication.

SOCIAL MEDIA

Social media is a group of Internet-based applications that allow the creation and exchange of user-generated content. Social media covers a broad number of applications including wikis, blogs, micro-blogs (e.g., Twitter and China's Weibo), content communities (e.g., YouTube), social networking sites (e.g., Facebook), and virtual social networks (e.g., Social Life).78 Social media is reinventing how people in organizations communicate. Dr. Pepper, for example, uses social media to listen to its customers by building an 8.5 million-strong fan base on Facebook. These loyal followers who “like” the soft drink help the brand hone its marketing message. The company sends out two messages daily on its Facebook fan page and then monitors the fans' reactions. Using tools from Facebook, Dr. Pepper measures how many times a message is viewed, how many times it is shared with other Facebook users, and what responses it gets. These data help managers adjust their brand messaging. “We mine data to understand what is appreciated, and what is not,” says Robert Stone, director of interactive media services for Dr. Pepper Snapple Group Inc. “It helps us shape what we are.”7

(Daft, 2012, p. 584)

Companies also use social media to build teams that solve problems faster, share information better among their employees and partners, and respond to customer ideas for new product designs. In fact, big business is embracing social media in a big way. Forrester Research says that sales of software to run corporate social networks will grow 61percent a year and be a $6.4 billion business by 2016.80 So far, social media hasn't boosted U.S. productivity significantly, but economists such as MIT's Erik Brynjolfsson say that it takes about five years for a new technology to show its full impact on companies that use it. Social media has been used for only two or three years in most companies, largely for communicating with customers and enhancing employee collaboration.81

Listening to Customers

Managers in many organizations, from small entrepreneurial firms and nonprofit agencies to huge corporations, are experimenting with using social media to listen to customers. One organization that has implemented a clearly thought-out social media strategy is Dell's computer division. Through its IdeaStorm site, Dell has received 17,000 ideas for new or improved products and has adopted nearly 500, including backlit keyboards that are better for working on airplanes. Dell also promotes its own new product ideas on IdeaStorm and requests customer feedback before moving forward with product development. After posting an idea related to a specialty laptop, customers posted 83 ideas for refinements to the machine, more feedback than Dell would receive from traditional focus groups.82

Communicating to Customers

Managers also use social media to communicate corporate news quickly to customers. Domino's relied on the popularity of online communities to calm jittery customers after a damaging prank video showing two employees defacing pizzas and sandwiches was uploaded to YouTube. Domino's managers chose to respond with a viral video of their own. The company president apologized and thanked the online community for bringing the issue to his attention. He announced that the wrongdoers would be prosecuted and outlined the steps that Domino's was taking to ensure that the episode would never happen again. By engaging in an online conversation about the crisis, Domino's demonstrated concern for its customers and squelched further rumors and fears.83

“Don't think of social media as just another checkbox on your list of things to do. … It's not just about putting information out there, but listening and engaging in conversation.”

— LASANDRA BRILL, SENIOR MANAGER OF GLOBAL SOCIAL MEDIA, CISCO

Connecting Employees

Using social media can enable people to connect with one another easily across organizational and geographical boundaries based on professional relationships, shared interests, problems, or other criteria. Social networking , both through public sites and corporate networks, offers peer-to-peer communication channels where employees interact in an online community, sharing personal and professional information and photos, producing and sharing all sorts of ideas and opinions. Social networks designed for business use, such as Yammer and Chatter, increase productivity by making it easier for employees to share their knowledge. 7-Eleven, a Dallas-based convenience store, has 2,000 employees who use Yammer to help the company's field consultants and franchisees share their knowledge and learn best practices from one another. A local franchisee might post a picture of a display that worked particularly well in one location, for instance, so that others can see it and try the same approach in their own stores.84

(Daft, 2012, p. 585)