CHAPTER 4 WORKPLACE BUS COMM

CHAPTER 4:
WORKPLACE
BUSINESS
COMMUNICATION

LEANING OBJECTIVE:

1.

The purpose of business communication within the workplace

2.

The structure in organization
a) Types of organization structure
b) The characteristic of organization structure
c) The formal communication channel
d) The formal communication network
e) Problems arising from formal communication

3.

The informal organization structure
a) Explain the advantages of the informal structure
b) The disadvantages of the informal structure
c) The informal communication networks

THE PURPOSE OF BUSINESS
COMMUNICATION

▪Communication

has

many

objectives. Its primary objective is
to

exchange

ideas,

opinions,

thoughts, beliefs and information
between human beings.

▪In the fields of business, the main
objective of communication is to
help managers in performing all
managerial functions smoothly

The purpose of
business
communication

• Control
• Motivation
• Balancing needs and

goals

1. Control

▪A company uses communication as a
way to maintain control over employees
and their work environment.

▪Written human resources policies and
procedures dictate how employees are
permitted to act in the workplace.

▪Job descriptions outline the parameters
of an employee's job functions.
Performance reviews control whether an
employee receives a raise or attains a
promotion.

2. Motivation

▪ Managers use communication to
motivate workers to achieve peak
performance.

▪ By clarifying the expectations of
employees and providing incentives for
meeting or exceeding expectations,
communication can help companies
reach specific objectives.

▪ For example, by communicating to
salespeople that they'll receive a 10
percent bonus if they reach their annual
sales goal, it helps the company reach its
overall sales goals.

3.
BALANCE
NEEDS
AND
GOALS

STRUCTURE IN
ORGANIZATION

▪ The typically hierarchical
arrangement of lines of authority,
communications, rights and duties of
an organization.

▪ Organizational structure determines
how the roles, power and
responsibilities are assigned,
controlled, and coordinated, and how
information flows between the
different levels of management.

STRUCTURE IN ORGANIZATION

▪ A structure depends on the organization's
objectives and strategy.

▪ In a centralized structure, the top layer of
management has most of the decision
making power and has tight control over
departments and divisions.

▪ In a decentralized structure, the decision
making power is distributed and the
departments and divisions may have
different degrees of independence.

TYPES OF ORGANIZATION
STRUCTURE

▪ Organizations are set up in specific
ways to accomplish their goals and
the

structure

can

help

to

accomplish the goals.

▪ There are three main types of
organizational structure: functional
structure, divisional structure and a
blend of the two, called matrix
structure.

•FUNCTIONAL
•DIVISIONAL
•(MARKET BASED AND
GEOGRAPHICAL
STRUCTURE)
•MATRIX

1. FUNCTIONAL

▪ the functional structure divides the company
based on specialty.

▪ This is your traditional business with a sales
department,

marketing

department,

customer service department, etc.

▪ The advantage of a functional structure is
that individuals are dedicated to a single
function. These clearly defined roles and
expectations limit confusion.

2. DIVISIONAL-
MARKET BASED

▪ The divisional structure refers to

companies that structure leadership
according to different products or
projects.

▪ Example is Gap Inc. Under Gap Inc.,

there are three different retailers, that
operates as an individual company, yet
still under Gap Inc. brand.

GAP, OLD NAVY, AND BANANA REPUBLIC

3. DIVISIONAL –
GEOGRAPHICAL
STRUCTURE

Geographical
organizational structure
involves grouping of the
activities according to
regional

or

geographical locations.

4. MATRIX

▪ It is a hybrid of divisional and

functional structure. Typically used in
large multinational companies.

▪ A matrix organizational structure is a

company

structure

in

which

the

reporting relationships are set up as a
grid, or matrix.

▪ In other words, employees have dual

reporting relationships - generally to
both a functional manager and a
product manager.

CHARACTERISTIC OF
ORGANIZATION STRUCTURE

•Complexity
•Formalization
•Centralization and
decentralization

COMPLEXITY

▪In the context of an organization,
complexity is associated with
(1)

interrelationships

of

the

individuals,
(2) their effect on the organization, and
(3)

the

organization's

interrelationships with its external
environment.

FORMALIZATION

▪ Formalization

in

organizational

structure is a process in which
managers

specify

(in

writing),

procedures,

rules

and

responsibilities for the individual
employees,

organizational

units,

groups, teams and the organization
as a whole.

▪ This leads to the development of

processes,

relationships,

and

operating procedures.

Mission
and goals

Task and

duty

Units/de
partment

s

Relations

hips

Responsi
bility and

power

Process and
procedures

CENTRALIZATION

Individual vs. Team Management

▪ Centralized organizational structures rely on one

individual to make decisions and provide
direction for the company.

▪ Decentralized organizational structures often

have several individuals responsible for making
business decisions and running the business.
Decentralized organizations rely on a team
environment at different levels in the business.

FORMAL COMMUNICATION
CHANNEL

•DOWNWARD CHANNELS
•UPWARD CHANNELS
•LATERAL CHANNELS
•DIAGONAL CHANNELS

DOWNWARD CHANNEL

▪Downward
communication is the flow
of information and
messages from a higher
level inside an organization
to a lower one.

UPWARD CHANNEL

Upward Communication is the
process of information flowing
from the lower levels of a
hierarchy to the upper levels.

Upward communication often
comes in response to
downwardly communicated
requests for information,
opinions, or actions.

LATERAL CHANNEL

▪ Lateral communication is the

exchange, imparting or sharing of
information, ideas or feelings between
people within a community, peer
groups, departments or units of an
organization who are at or about the
same hierarchical level as each other
for the purpose of coordinating
activities, efforts or fulfilling a common
purpose or goal.

DIAGONAL CHANNEL

The sharing of information among
different structural levels within a
business. For example, diagonal
communication could involve
higher level management
communicating to lower level
management a shift in
organizational objectives, as well
as the ensuing dialog about how
best to achieve the new goals.

FORMAL COMMUNICATION
NETWORK

The PATTERN of the
communication:

1.

Chain network

2.

Y network

3.

Wheel network

4.

Circle network

5.

All channel network

1. CHAIN NETWORK

▪ The information flows either up or down the line. Here each person
gets the information from his immediate superior and then passes it
to their immediate subordinates.

▪ Likewise, the chain gets created, and all members get connected to a
single person, typically the leader. This network is suitable when the
information to be passed is legally correct.

2. Y NETWORK

3. WHEEL NETWORK

▪ Represent several subordinates
reporting to a supervisor

▪ Can be a combination of
horizontal and diagonal flow of
communication

4. CIRCLE NETWORK

5. ALL CHANNEL NETWORK

PROBLEMS
ARISING FROM
FORMAL
COMMUNICATION

Wastage of time

Inflexibility

Lack of initiative

Authoritarian attitude

Lack of cordiality

Costly

Others

PROBLEMS ARISING FROM
FORMAL COMMUNICATION

▪ Wastage of time: Top level management communicates with their employees by

maintaining the board of succession, not by-passing any executive or any level.
That is why it takes a lot of time and it wastages much time of the concerned
person.

▪ Inflexibility: Ordinarily the formal communication is inflexible. If somebody out

of the channel intends to change his views it is not possible. Even when it is
needed to change, it is very much difficult.

▪ Lack of initiative: Under this communication system everybody does their duty

by following specific predetermined system. So it makes the obstacle to develop
the creativeness of the employee.

▪ Authoritarian attitude: In this system the sender is higher authority and the

receiver is lower staffs. Generally the superior’s order cannot be disobeyed. It
creates an authoritarian culture in the organization.

PROBLEMS ARISING FROM
FORMAL COMMUNICATION

▪ Lack of cordiality: In the formal communication system the

subordinate staffs strictly follow the order of superior authority. So
the implementer of the order does not obey their duty properly.

▪ Costly: In this system the organization policy and rules are obeyed

properly. Sometimes it creates crucial situation and it is a time being
factor. For these, the cost of formal communication system is higher
than those of others.

▪ Others: Lack of personal relation, delay in decision making, not

suitable for motivation, creates misunderstanding, create mental
distance.

INFORMAL ORGANIZATION
STRUCTURE

▪ A casual form of information sharing
typically used in personal
conversations with friends or family
members.

▪ Within a business environment,
informal communication is sometimes
called the grapevine and might be
observed occurring in conversations,
electronic mails, text messages and
phone calls between socializing
employees.

Advantages of the informal structure

•Alternative System
•Interpretation
•To Present Grievances
•Increase Efficiency
•Improving Relations
•Providing Recommendations
•Measuring Reaction
•Solution to Problems

1. Alternative System: There are some messages which cannot be sent
through formal way and therefore requires some alternative. Such
alternative can be informal communication.

2. Interpretation: Message sent to subordinates requires explanation or
interpretation and informal communication is the valuable means here.

3. To Present Grievances: Employees can't make any complaints to
superiors through formal communication. But informal communication
gives the employees a better opportunity to raise their complaints,
grievances or claim. Sometimes, in this way, as an informal
communication system, grapevine affects much.

4. Increase Efficiency: Employees can freely exchange their opinions
in terms of informal communication. They can ask any question without
any hesitation. Thus a cordial communication environment is created to
increase the efficiency of employees.

5. Improving Relations: Any created between management and the
labor can be settled through informal communication. Co-operation
and co-ordination can be established through harmonious
relationship between management and labor. Such relationship is
only possible through informal communication.

6. Providing Recommendations: Subordinates feel free to provide
management with their suggestions and recommendations on
different job related issues like work methods, procedures and
conditions etc.

7. Measuring Reaction: Before releasing any new information,
management wants to know the reaction of employees. In such a case,
informal communication can be valuable in measuring the reaction of
employees before any information is conveyed through formal
channels.
8. Solution to Problems: With the help of informal communication,
the management is able to know problems, conflicts and complaints
and the like. Therefore management can take necessary action timely
and effectively.

Disadvantages of the informal structure

•Distortion
•Lack of Secrecy
•Incomplete Information
•Non-Co-Operation
•Lack of Resistance
•Huge Rumor
•Misunderstanding
•Committing Mistakes

1.

Distortion: Informal communication networks do not follow
any set of rules, definite liners or ways. So it can transmit any
kind of information to any person without any respect or
fear. It may spread wrong or distorted news which may
sometimes prove harmful even to the employees. So, it is the
one of most considerable disadvantages of informal
communication.

2.

Lack of Secrecy: In informal communication, everybody
can freely interact as there are no restrictions or rules. Any
secret matter is likely to be flashed without any problem or
hesitation. This may cause a huge damage to any
organization.

3.

Incomplete Information: Information released from such
communication network is usually incomplete. So, There is
each and every chance of it to be misunderstood or
misinterpreted.

4.

Non-Co-Operation: Sometimes, confusion develops among
the persons involved in informal communication. As a result,
they may remain separate without any co-operation.

5.

Lack of Resistance: As informal communication does
not follow any established system, it is beyond any
control. Organization has no mechanism to resist its
movement.

6.

Huge Rumor: Most of the time, informal
communication fabricates the real facts and makes
some rosy picture. This really damages the working
environment of any organization.

7.

Misunderstanding: Lack of conduct, decency,
decorum and rules cause misunderstanding in
informal communication. As a result there may be
conflict between employees

8.

Committing Mistakes: This sort of communication
are subject to errors and mistakes because no
official’s rule

THE INFORMAL
COMMUNICATION
NETWORKS
1.

Single strand

2.

Gossip chain

3.

Probability chain

4.

Cluster chain

5.

Grapevine

1. SINGLE
STRAND

2. GOSSIP CHAIN

3.
PROBABILITY
CHAIN

4. CLUSTER
CHAIN

5. GRAPEVINE

EXERCISE:

▪ A project manager has a problem with a team member’s performance. What is the

BEST form of communication for addressing this problem?

a.

Formal written communication

b.

Formal verbal communication

c.

Informal written communication

d.

Informal verbal communication