Chapter 15 Managing Communication. Communication Complexity Communication is a complex process that...

Chapter 15Chapter 15

Managing Managing CommunicationCommunication

Communication Complexity

Communication Complexity

Communication is a complex process that requires constant attention so that intended messages are sent and received.

Communication is essential to management; it is the process through which things get done in organizations.Defining communication is relatively simple, but achieving high-quality communication is both complicated and difficult.

The Process of CommunicationThe Process of Communication

• Communication is a process that involves the transmission of meaningful information from one party to another through the use of shared symbols.

• Communication is successful when meaning is understood.

Elements in the Communication Process

Elements in the Communication Process

SenderSender EncodingEncoding DecodingDecoding ReceiverReceiverMessageMessage

Social context

NoiseNoise

NoiseNoiseNoiseNoise

NoiseNoise

FeedbackFeedback

Purpose 1. Understanding 2. Prompt action

Using symbols in a form the other person will understand

Channel

What do these symbols mean

Nonverbal CommunicationNonverbal Communication

Kinesic behavior, or body motion, such as gestures, facial expressions, and eye behavior.

Physical characteristics, such as body shape, physique, posture, height, and weight.

Paralanguage, such as voice quality, speech rate, pitch, and laughing.

Barriers to Effective Communication

Barriers to Effective Communication

• Barriers can disrupt the accurate transmission of information.

• These barriers take different forms:–Sender barrier–Encoding barrier–Communication channel barrier–Decoding barrier–Receiver barrier–Feedback barrier–Noise barrier

Don’t understand symbols

Barriers to Effective Communication

Barriers to Effective Communication

Frame of Reference

Selective Listening

Time Pressures

Filtering

Value Judgments

Source Creditability

Status Differences

Overload

Diversity

Communication Channels Ranked by Information Richness

Communication Channels Ranked by Information Richness

Richest Channel

Leanest Channel

Physical presence (face-to-face, meetings)

Interactive channels (telephone, electronic media, voice mail, e-mail)

Personal static channels (memos, letters, reports tailored to receiver)Impersonal static channels (fliers, bulletins, generalized reports)

Best for non-routine, ambiguous, difficult messages

Best for routine, clear, simple messages

Developing Constructive Feedback Skills

Developing Constructive Feedback Skills

–Give feedback that is specific rather than general.

–Focus feedback on behavior rather than the person, and focus it on behavior that can be changed.

–Keep personality traits out of your feedback by focusing on what rather than who.

–Feedback should be given as soon as possible.

– Provide feedback using descriptive information about what the person said or did.

– Avoid feedback using evaluative inferences about motives, intent, or feelings.

– Ensure privacy when giving feedback about negative behaviors.

– Give feedback when the receiver appears ready to accept it.

Developing Constructive Feedback Skills

Developing Constructive Feedback Skills

Guidelines for Active ListeningGuidelines for Active Listening

• Do create a supportive atmosphere.

• Do listen for feelings as well as words.

• Do note cues.

• Do occasionally test for understanding.

• Do demonstrate acceptance and understanding.

• Do ask exploratory, open-ended questions.

• Do create a supportive atmosphere.

• Do listen for feelings as well as words.

• Do note cues.

• Do occasionally test for understanding.

• Do demonstrate acceptance and understanding.

• Do ask exploratory, open-ended questions.

• Don’t try to change the other’s views.

• Don’t solve the problem for the speaker.

• Don’t give advice.• Don’t pass judgment.• Don’t explain or interpret

others’ behavior.• Don’t give false reassurances.• Don’t attack if the speaker is

hostile.• Don’t ask “why” the feelings.

• Don’t try to change the other’s views.

• Don’t solve the problem for the speaker.

• Don’t give advice.• Don’t pass judgment.• Don’t explain or interpret

others’ behavior.• Don’t give false reassurances.• Don’t attack if the speaker is

hostile.• Don’t ask “why” the feelings.

Communication Competency Challenges

Communication Competency Challenges

• Expect to be misunderstood by at least some listeners and readers.

• Expect to misunderstand others.

• Strive to reduce the degree of such misunderstandings, but never expect total elimination of them or the ability to anticipate all possible outcomes.

Chapter 16 & 17Chapter 16 & 17

Organizational Organizational ControlControl and and

Operational Operational ManagementManagement

Organizational Organizational ControlControl and and

Operational Operational ManagementManagement

What is Operations Management?

What is Operations Management?

• Operations management is the process an organization uses to:Obtain the materials or ideas for the product it

provides.Transform the materials or ideas into the product.Provide the final product to a user.

• Operations management is closely linked to:Strategic Management PlanningInformation Systems Management

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill

The Operations Management Process

The Operations Management Process

InputsInputs

Raw materialsRaw materials

LaborLabor

EnergyEnergy

KnowledgeKnowledge

• Inputs are the supplies needed to create a product.

• Materials requirements planning: analyzing a design to determine the materials and parts required in the production process.

• Inventory: the stock of raw materials, inputs, and component parts that the firm keeps on hand.

The Operations Management Process

The Operations Management Process

InputsInputs ConversionConversion

Raw materialsRaw materials

LaborLabor

EnergyEnergy

KnowledgeKnowledge

FacilityFacility

CapacityCapacity

ProcessProcess

ControlControl

• The stage in which the product’s inputs are converted to the final product.

• An effective conversion process:– Works to lower the

cost of creating the product

– Create a better product for the same or less cost.

Transformation

The Operations Management Process

The Operations Management Process

InputsInputs ConversionConversion

Raw materialsRaw materials

LaborLabor

EnergyEnergy

KnowledgeKnowledge

FacilityFacility

CapacityCapacity

ProcessProcess

ControlControl

• Key decision areas:– Designing the

process– Monitoring the

process

The Operations Management Process

The Operations Management Process

InputsInputs ConversionConversion OutputsOutputs

Raw materialsRaw materials

LaborLabor

EnergyEnergy

KnowledgeKnowledge

FacilityFacility

CapacityCapacity

ProcessProcess

ControlControl

GoodsGoods

ServicesServices

InformationInformation

Strategic management decisions involved in

operations management:

Strategic management decisions involved in

operations management:• Make-buy analysis: whether to produce an item or

to purchase it.• Capacity: firm’s ability to produce the product

during a given period.• Facilities: design and location of an operations

facility.• Process: how a product or a service will be

produced.• Facilities layout design: physical arrange-ment

that allows for efficient production

Designing the ProcessDesigning the Process

• Process design begins with analyzing the general operation and identifying:– Every major step that needs to be done.

– The order that the steps must take.

– The flow of the steps from start to finish (including their relationship to each other).

– The amount of time each individual step requires.

Process Design ToolsProcess Design Tools

• Gantt Charts: provide a visual sequence of the process steps.

• Load Charts: type of Gantt chart based on departments or specific resources that are used in the process.

• Program Evaluation and Review Technique (PERT) Network: tool for analyzing the conversion process.

Gantt ChartGantt Chart Start 1 2 3 4 5

Get permit ----------------------------------------------------

Order baking equipment -------------------

Paint interior -----------------------------

Install electrical fixtures ------------

Install floors ------------

Install baking equipment -----------

Test equipment -----------

WEEKSWEEKS

Start 1 2 3 4 5

Office Staff -------------------

Order department -------------------

Painter -----------------------------

Electrician ----------------------------------

Carpenter ------------

Load ChartLoad Chart

Example of a PERT NetworkExample of a PERT Network

StartStart Order baking equipmentOrder baking equipment Install baking equipmentInstall baking equipment Test Test equipmentequipment

Paint interiorPaint interior

Install electrical Install electrical fixturesfixtures

Install floorsInstall floors

Get permitGet permit

4411

11

11

11

11

11 11

11

Organizational ControlOrganizational Control• Control is the process of comparing performance

to standards and taking corrective action.

• It ensures that:standards are meterrors are limitedquality is acceptableproducts are safethe company is performing at the highest possible level

• Control is closely associated with planning.

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill

The systematic process to regulate organizational activities to make them consistent with the expectations

Did we do what we said we were going to?

Process of ControlProcess of Control

Set performance

standards

Measureactual

performance

Compareperformance

withstandards

Take nocorrective

action

Takecorrective

action

If deviations are acceptable

If deviations are unacceptable

Process of ControlProcess of Control

Set performance

standards

Measureactual

performance

Compareperformance

withstandards

Take nocorrective

action

Takecorrective

action

If deviations are acceptable

If deviations are unacceptable

Strategic GoalTactical (Functional) GoalOperational GoalIndividual/Task Goal

Specific, measurable

Closes the planning loop--begins with setting objectives/goals

Process of ControlProcess of Control

Set performance

standards

Measureactual

performance

Compareperformance

withstandards

Take nocorrective

action

Takecorrective

action

If deviations are acceptable

If deviations are unacceptable

Process of ControlProcess of Control

Set performance

standards

Measureactual

performance

Compareperformance

withstandards

Take nocorrective

action

Takecorrective

action

If deviations are acceptable

If deviations are unacceptable

quality charton time deliverycustomer satisfactionproductivity

budgetsincome statementenvironmental audit

Process of ControlProcess of Control

Set performance

standards

Measureactual

performance

Compareperformance

withstandards

Take nocorrective

action

Takecorrective

action

If deviations are acceptable

If deviations are unacceptable

Process of ControlProcess of Control

Set performance

standards

Measureactual

performance

Compareperformance

withstandards

Take nocorrective

action

Takecorrective

action

If deviations are acceptable

If deviations are unacceptable

Processequipmentprocedures

The Role of Productivity and Quality

The Role of Productivity and Quality

• Productivity– A measure of the efficiency with which

a firm transforms inputs into outputs, calculated as output divided by input.

Productivity =outputsinputs

Types of Bureaucratic Control

Types of Bureaucratic Control

•Feedforward controlDesigned to prevent problems before they occur

•Concurrent control–Takes place as the work process is being carried

out

•Feedback control–Occurs after a process has been completed

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill

Types of Financial Controls

Types of Financial Controls

Budgetary Control Financial Statements

Financial Ratios Activity-BasedCosting

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill

Balance SheetIncome StatementCash Flow

ROEROAROI

receiving and processing orders expediting supplies and production distribution

The Balanced ScorecardThe Balanced Scorecard

•A balanced scorecard is a technique designed to control and improve:customer servicelearning and growthfinanceinternal business processes

•Links strategy to action•Is more broad than bureaucratic control

© 2004 The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill

Managing QualityManaging Quality

lowers production costs, increasesprofitability, may lead to lowerprices, and attract new customers.

Quality – Defined by the customerQuality – Defined by the customerEnd customer orIndividual(s) who receive the output

• Consumer Perspective– Defined as the degree to which the product or service

meets the expectations of the customer.

• Producer Perspective– Defined as the degree to which the product or service

conforms to specifications.

Total Quality Management (TQM)

Total Quality Management (TQM)

• A systematic approach for enhancing products, services, processes, and operational quality control.

Total Quality Management (TQM)Total Quality Management (TQM)

• Continuous improvement should be main objectives of operations management.

• Each worker is responsible for improving quality.– Quality circles.– quality gap – the difference between

what customers want and what they actually get from the company.

Kaizen (Continuous Improvement) and

Efficiency

Kaizen (Continuous Improvement) and

Efficiency• The Japanese process of continuous

improvement in the organization’s production system from numerous small, incremental improvements in production processes.

• One of the main principles of kaizen is reducing waste in materials, inventory, production steps, and activities that do not add value.

Just-in-Time (JIT) Systems

Just-in-Time (JIT) Systems

• Just-in-time (JIT) – the concept behind creating the firm’s product in the least amount of time.

• Close coordination between manufacturers, suppliers, and customers.

• The firm’s inventory of inputs are kept at the lowest level possible.

• Inputs arrive at the organization when, not before, they are needed.

Process ReengineeringProcess Reengineering

• Method of changing the entire production process rather than making incremental changes.

• Involves fundamentally rethinking and radically redesigning the entire process including:– Cutting out steps that are not needed.– Reducing paperwork.

Statistical Process Control ToolsStatistical Process Control Tools

Check Check SheetsSheets

Pareto Pareto AnalysisAnalysis

Process Process Flow Flow

AnalysisAnalysisCause-and-Cause-and-

Effect Effect DiagramsDiagrams

Process Process Capability Capability MeasuresMeasuresControl Control

ChartsCharts

Chapter 17Chapter 17

Managing Information

Systems

Managing Information

Systems

GOOD LUCK GOOD LUCK

GETTING READY GETTING READY FOR THE FOR THE

FINALFINAL

Management Skills for Information Systems Management

Management Skills for Information Systems Management

• Analytical Skills. Managers need to be able to gather, synthesize, and compare data about their firms and about the options available to them.

• Organizational Skills. Managers need to be able to make sense of information by organizing data to facilitate analysis and comparison.

• Flexibility and Innovation Skills. Managers must be able to be flexible in adapting standard business practices to new information technologies.

Data and InformationData and Information

• Data: raw facts, such as the number of items sold or the number of hours worked in a department.

• Information: data that have been gathered and converted into a meaningful context.

• Databases: computer programs that assign multiple characteristics to data and allow users to sort the data by characteristic.

Data and Information (continued)Data and Information (continued)

• Data warehouses: massive databases that contain almost all of the information about a firm’s operations.

• Data mining: the process of determining the relevant factors in the accumulated data to extract the data that are important to the user.

Information TechnologyInformation Technology

• Technology is the means of transforming inputs into products.

• Technology has improved operations management, including productivity, efficiency, and customer responsiveness.

• A firm’s information technology may incorporate its operations technology.

Computer NetworksComputer Networks

Local Local Area Area

NetworksNetworks

InternetInternet

ExtranetExtranetss

IntranetIntranetss

LAN

Network of

Networks

WANLinks to suppliers, customers, etc.

Local, uses standards of Web- HR, Notice Boards

Enterprise Resource Planning (ERP) Software

Enterprise Resource Planning (ERP) Software

• Combines all of a firm’s computerized functions into a single, integrated software program that runs off a single database.

• This allows various departments to easily share information and communicate with each other.

Information SystemsInformation Systems

• Information systems combine computers, other hardware, software, and human resources to manipulate data into useable information.

• Operations information systems:– Process control systems– Office automation systems– Transaction-processing systems

• Expert systems Attempts to mimic the decision making process of experts, e.g.. Doctors

Management Information SystemsManagement Information Systems

• Management information system (MIS): an information system that provides information to managers to use in making decisions.

• Types of MIS used by businesses:– Information reporting systems– Decision support systems– Group decision support systems– Executive information systems

• Management Information Systems (MIS)– Focuses on the routine, structured, regular

reporting and information requirements of the organization.

• Decision Support Systems (DSS)– Computer-based information system that uses

imbedded analytical models to assist decision makers in analyzing and solving semistructured problems.

Applications of Computer-Based Information Systems

Applications of Computer-Based Information Systems

TelecommutingTelecommuting

• Telecommuting–The practice of working at a

remote site by using a computer linked to a central office or other employment location.

On to the Final

On to the Final