PRINCIPLES OF MANAGEMENT
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
1
Copyright © 2014
3/15/2016
Contents
 Chapter 1. Management
 Chapter 2. Planning Decision Making
 Chapter 3. Organizing
 Chapter 4. Control System
 Chapter 5. Motivation and Rewarding
Employees Performance
 Chapter 6. Managing Employee Attitude and
Well Being
 Chapter 7. Effective Leadership
 Chapter 8. Communication
Chapter 1. MANAGEMENT
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
3
Copyright © 2014
3/15/2016
Learning Objectives
1. Describe the basic functions of management
2. Identify where in an organization managers are
located
3. Discuss the challenges people encounter as they
become first-line managers
4. Describe the roles managers adopt to perform
the basic functions of management
5. Outline the competencies managers must have
to be effective
Management and Managers
 Management: The art of getting things done
through people in the organization
 Managers:
 Give organizations a sense of
purpose
and direction
 Create new ways of producing and
distributing goods and services
 Change how the world works through their
actions
Leaders versus Managers
Process
Management
Leadership
Vision
Establishment
* Plans and budgets
* Develops process steps
and set timelines
* Set the direction and develops
the vision
* Develops strategic plans to
achieve the vision
Development
and
Networking
* Organizes and staffs
* Maintain structure
* Aligns organization
* Communicates the vision,
mission, and direction
Vision
Execution
* Controls processes
* Identifies problems
* Motivates and inspires
* Energizes employees to
overcome barriers to change
Vision
Outcome
* Manages vision order
* Promotes useful and dramatic
and predictability
changes
* Provides expected results
Source: Adapted from “Leadership versus management: What’s the difference?”, The Journal for Quality and Participation, 2006
Functions of Management
Planning &
Strategizing
Controlling
Organizing
Leading &
Developing
Planning & Strategizing
 Planning – a formal process whereby managers choose goals,
identify actions, allocate responsibility for implementing actions,
measuring the success of actions, and revising plans
 Planning is used to develop overall strategies
 A strategy is an action that managers take to attain the goals
 Planning goes beyond strategy development to include the
regulation of a wide variety of organizational activities
 Strategizing – the process of thinking through on a continual
basis what strategies an organization should pursue to attain its
goals
Who Makes the Strategic Decisions?
By Senior Group
including CEO
With Formal Strategic
Planning Process
By Business Unit
Leaders
By CEO or Equivalent
By Others
Source: Improving Strategic Planning: A McKinsey Survey, The McKinsey Quarterly, September
2006
Organizing
 Organizing involves deciding:
 Who will perform the task?
 Where will decisions be made?
 Who reports to whom?
 How will different parts of the organization
fit together to accomplish the common goal?
Controlling
 The process of monitoring performance
against goals, intervening when goals
are not met, and taking corrective
action
 First step – Drafting plans
 Important aspect is creating incentives
that align employees’ and
organization’s interests
Benefits & Incentives
1. Performance Bonuses
2. Health Benefits
3. Performance-based Time Off
4. Education and Learning
5. Recognition and Awards
6. Retirement Planning and 401(k)
7. Promotion
8. Child Care and Elder Care Assistance
Leading & Developing
 Leading – is the process of motivating,
influencing, and directing others in the
organization to work productively in
pursuit of organization goals.
 Developing employees – the task of
hiring, training, mentoring, and
rewarding employees in an
organization, including other managers.
Skilled Leaders:
 Drive strategic thinking
 Have a plan for organization
 Proactively structure the organization
 Exercise control with a deft hand
 Use the right kind of incentives
 Get the best out of people
 Build a high-quality team
Types of Managers
General
Managers
Functional
Managers
Frontline
Managers
Multi-divisional
Management Hierarchy
Becoming a Manager
 From Specialist to Manager
 Journey begins when people are successful at a
specialist task that they were hired to do
 Need to be able to get things done through
other people
 Mastering the Job
 Tends to be a large difference between
expectations and reality
 Workload is tremendous
 Biggest challenge within the first year =
“People challenges”
Management Roles
Interpersonal Roles
 Roles that involve interacting with other people
inside and outside the organization
 Management jobs are people-intensive
 Interpersonal roles:
 Figureheads: Greet visitors, Represent the
company at community events, Serve as
spokespeople, and Function as emissaries for the
organization
 Leader: Influence, motivate, and direct others as
well as strategize, plan, organize, control, and
develop
 Liaison: Connect with people outside their
immediate unit
Informational Roles
 Collecting, Processing and
Disseminating
 Roles: Monitor, disseminator,
and spokesperson
Decisional Roles
 Whereas interpersonal roles deal with people and
informational roles deal with knowledge, decisional
roles deal with action
 Decisional roles:
 Entrepreneur: Managers must make sure their
organizations innovate, change, develop, and adopt
 Disturbance handler: Addressing unanticipated
problems as they arise and resolving them
expeditiously
 Resource allocator: How best to allocate scarce
resources
 Negotiator: Negotiation is continual for managers
Alan Mulalley, CEO
Boeing Commercial Airplanes
 Decisional Roles:
1. After September 11 attacks, Mulalley had to
renegotiate delivery of some 500 airplanes
2. Cut jet production by more than half
3. Fire 27,000 workers
4. During the downturn, he focused on cutting waste
and streamlining his airplane production lines
5. He then bet the company’s future on a set of new
technologies that are now turning Boeing’s super
efficient 787 Dreamliner into the hottest-selling new
jetliner in history
Source: Best of 2005, Business Week, December 19, 2005
Management Competencies
Motivational
Preferences
Skills
Includes
Values
Managerial Skills
Conceptual
Skills
Technical
Skills
Human
Skills
Managerial Values
•Enacted Values
•Espoused Values
•Shared Values
•Ethical Values
Managerial Motivation
Desire to Compete
Desire to Exercise Power
Desire to be Distinct
Desire to Take Action
Review Questions
1. Explain the basic functions of management?
2. What are benefits & incentives?
3. Describe the leading & developing.
4. What are the skilled Leaders?
5. How to become a manager?
6. Explain in detail of the interpersonal roles,
informational roles, and decisional roles.
7. What are the managerial values?
8. What are the managerial motivation?
Chapter 2. Planning and Decision Making
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
28
Copyright © 2014
3/15/2016
Learning Objectives
1) Describe the different levels of planning in an organization.
Explain the difference between strategic, tactical, operating,
and unit plans.
2) Outline the value of simple-use plans, standing plans, and
contingency plans.
3) Describe the main components of a typical strategic
planning system.
4) Identify the main pitfalls that managers encounter when
engaged in formal planning processes, and describe what can
be done to limit those pitfalls.
5) Discuss the major reasons for poor decisions, and describe
what managers can do to make better decisions.
Steps in Planning
 Choose goals
 Identify actions
 Allocate responsibility
 Review Performance
 Make adjustments
Levels of Planning
Business-level strategic plan
(heads of businesses)
Operating plans (heads of functions)
Shaped by input from
Sets the context for
Corporate-level
Strategic plan (CEO)
Unit plans (heads of departments, teams, individuals
Types of Plans
 Strategic plans:
A plan that outlines the major goals of an
organization and the organization wide strategies of attaining
those goals.
 Operating plans:
Plans that specify goals, actions, and
responsibility for individual functions.
 Tactical plans:
The action managers adopt over the short to
medium term to deal with a specific opportunity or threat that has
emerged.
 Unit plans: Plans for departments within functions, work teams,
or individuals.
Types of Plans
 Single-use plans: Plans that address unique events that do not
reoccur.
 Standing plans:
Plans used to handle events that reoccur
frequently.
 Contingency plans:
Plans formulated to address specific
possible future events that might have a significant impact on the
organization.
 Crisis management planning: Plan formulated specifically to
deal with possible future crises.
 Scenario planning: Plans that are based on “what if” scenarios
about the future.
Scenario Planning
Formulate
plans to deal
with those
futures
Switch strategy if
tracking of signposts
shows alternative
scenarios becoming
more likely
Invest in one
plan but …
Hedge your bets
by preparing for
other scenarios
and …
Scenario Planning Traps
 Treating scenarios as forecasts
 Failing to make scenarios global enough in scope
 Failing to focus scenarios in areas of potential
impact
 Treating scenarios as informational only
 Not using an experience facilitator
The Strategic Planning
Process
Feedback
External
analysis
(opportunities and
threats)
Mission, vision,
values, and goals
SWOT analysis
formulate strategies
Draft action plans
Review progress
against plan
Implement
Internal
analysis
(strengths and
weaknesses)
Assign subgoals,
roles,
responsibilities,
timelines,
and budgets
Setting the Context:
Mission, Vision, Values, and Goals
 Mission: The purpose of an organization.
 Vision: A desired future state.
 Values: The philosophical properties to which
managers are committed.
 Goals: A desired future state that an
organization attempts to utilize.
Mission Checklist
 Ends, not means
 Brevity
 Effort
 Verbs
 Broad vs. narrow
 Nouns embodying
 Value added
activities
 The Unidentifiable
 Unique
Characteristics of Goals
 They are precise and measurable.
 They address important issues.
 They are challenging but realistic.
 They specify a time period in which they
should be achieved.
10 Ingredients for Successful
Goals
 Specific
 Measurable
 Tangible
 Simple
 Written
 Significant
 Shared
 Strategic
 Rational
 Consistent with
your values
The Benefits of Planning
 Planning gives direction and purpose to an organization; it is a
mechanism for deciding the goals of the organization.
 Planning is the process by which management allocates scarce
resources, including capital and people, to different activities.
 Planning drives operating budgets-strategic, operations, and unit
plans determine financial budgets for the coming year.
 Planning assigns roles and responsibilities to individuals and units
within the organization.
 Planning enables managers to better control the organization.
Countering the Pitfalls of Planning
Pitfall
Solution
Too centralized;
top-down
Decentralized
planning
Failure to
question
assumption
Scenario planning;
devil’s advocate
Failure to
implement
Link to goals;
tie to budgets
Failure to
anticipate
rivals’ actions
Role-playing
The Rational
Decision-Making Model
Identify the
problem
Identify
decision
criteria
Weight
criteria
Generate
alternative
courses of
action
Implement
alternative
Choose one
alternative
Does not meet
expectations
Meets
expectations
Evaluate
outcome
Continue with course of action
Bounded Rationality
and Satisficing
 Bounded rationality: Limits in human ability to
formulate complex problems, to gather and
process the information necessary for solving
those problems, and thus to solve those problems
in a rational way.
 Satisfice:
Aiming for a satisfactory level of a
particular performance variable rather than its
theoretical maximum.
Decision-Making Heuristics
and Cognitive Biases
 Decision heuristics
 80-20 rule
 Cognitive bias
 Prior hypothesis bias
 Framing bias
80-20 Rule
Performing in your 20 percent if you’re:
 Engaged in activities that advance your overall
purpose in life
 Doing things you have always wanted to do not what
others want you to do
 Hiring people to do the tasks you are not good at or
don't like doing.
 Smiling.
Improving Decision Making
 Devil’s advocacy: The generation of both a plan
and a critical analysis of the plan by a devil’s
advocate.
 Dialectic injury: The generation of a plan (a
thesis) and a counterplan (an antithesis) that
reflect plausible but conflicting courses of action.
 Outside view: Identifying a reference class of
analogies past strategic initiatives, determining
whether those initiatives succeeded or failed, and
evaluating a project at hand against those prior
initiatives.
Review Questions
1. Identify all steps of planning?
2. How many levels of planning? What are they?
Describe them.
3. Explain all types of plans in detail, please?
4. What are the mission, vision, values, and goals of
an organization?
5. How to improving your decision making?
6. What is the mission checklist?
7. What are the 10 ingredients for successful goals?
8. Describe the benefits of planning please.
48
3/15/2016
Chapter 3. ORGANIZING
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
49
Copyright © 2014
3/15/2016
Learning objectives
1. Explain what is meant by organization
architecture.
2. Explain the advantages and disadvantages of
centralization and decentralization.
3. Discuss the pros and cons of tall versus flat
structures.
4. Outline the different kinds of structure a firm
can operate within and explain how strategy
should determine structure.
Learning objectives (cont’d)
 5. Describe the different integrating mechanisms
managers can use to achieve coordination within a
firm, and explain the link between strategy,
environment, and integrating mechanisms.
Organization Architecture
 Organization architecture: The totality of a
firm’s organization, including formal organization
structure, control systems, incentive systems,
organizational culture, and people.
 Organization structure: The location of
decision-making responsibilities in the firm, the
formal division of the organization into subunits,
and the establishment of integrating mechanisms
to coordinate the activities of subunits.
Organization Architecture (cont’d)
 Controls: Metrics used to measure the
performance of subunits and to judge how well
managers are running those subunits.
 Incentives: Devices used to encourage desired
employee behavior.
 Organizational culture: Values and
assumptions that are shared among the
employees of an organization.
Organization Architecture (cont’d)
 People: The employees of an organization, the
strategy used to recruit, compensate, motivate,
and retain those individuals, and the type of
people they are in terms of their skills, values,
and orientation.
Organization Architecture (cont’d)
Structure
Controls
People
Culture
Incentives
Designing Structure
 Vertical differentiation: The location of
decision-making responsibilities within a
structure.
 Horizontal differentiation: The formal
division of the organization into subunits.
 Integrating mechanisms: Mechanisms for
coordinating subunits.
Centralization Versus Decentralization
 Centralization: The concentration of decision-
making authority at a high level in a
management hierarchy.
 Decentralization: Vesting decision-making
authority in lower-level managers or other
employees.
Arguments for Centralization
 Centralization can facilitate coordination.
 Centralization can help ensure that decisions
are consistent with organizational objectives.
 Centralization can avoid duplication of
activities by various subunits within the
organization.
Arguments for Centralization (cont’d)
 By concentrating power and authority in one
individual or a management team, centralization
can give top-level managers the means to bring
about needed major organizational changes.
 Top management can become overburdened
when decision-making authority is centralized.
 Motivational research favors decentralization.
Arguments for Centralization (cont’d)
 Decentralization permits greater flexibility—
more rapid response to environmental changes.
 Decentralization can result in better decisions.
 Decentralization can increase control.
Centralization vs. Decentralization in
Purchasing
 Centralize for greater cost control and corporate
leverage
 Decentralize for nimbler procurement
responsiveness
 Centralize procurement of common products
 Decentralize procurement of specialized
products
 Align purchasing structure with corporate
strategy, structure, and size
Decentralization and Control
Decentralization of
decisions to a
subunit …
Increases
responsibility …
Which
increases
accountability
Thereby
enhancing
control.
The Starfish and the Spider
 Ori Brafman and Rod Beckstrom show why
businesses need to embrace their own
decentralized systems in their book called The
Starfish and the Spider.
 The book's central metaphor recognizes that if
you cut the leg off of a spider, you have at best a
(crippled) spider. But if you cut off the leg of a
starfish, the starfish will grow a new leg.
The Starfish and the Spider (cont’d)
 Traditional centralized organizations are the
spiders, and traditional decentralized
organizations are the starfish.
Tall Versus Flat Hierarchies
 Tall hierarchies: Organizations with many
layers of management.
 Flat hierarchies: Organizations with few
layers of management.
Flat at IDEO
 IDEO is a product design company comprising
14 studios
 Each studio comprises 15 to 35 people with one
head responsible for profit/loss
 Individuals are allowed to be best in what their
passion is rather then take up managerial
positions
 Concept of Hot Teams is encouraged with
autonomy
Flat at IDEO (cont’d)
 Mobility from one studio to another is encouraged
 Bottom line structure: very flat
Problems in Tall Hierarchies
 There is a tendency for information to get
accidentally distorted as it passes through layers
in a hierarchy.
 There is also the problem of deliberate
distortion by midlevel managers who are trying
to curry favor with their superiors or pursue
some agenda of their own.
 They are expensive.
Types of Structures
 Functional structure: A structure that follows
the obvious division of labor within the firm,
with different functions focusing on different
tasks.
 Multidivisional structure: A structure in
which a firm is divided into different divisions,
each of which is responsible for a distinct
business area.
Types of Structures (cont’d)
 Geographic structure: A structure in which a
firm is divided into different units on the basis
of geography.
 Matrix structure: An organization with two
overlapping hierarchies.
Hybrid Structure at Ranbaxy
Ranbaxy Laboratories – An India-based generic
drug maker
 The company redesigned the organization in
internationalizing its operations
 Developed a hybrid structure: it placed R&D in a
global unit and other functions in several
geographic units.
 Result: Ranbaxy's managers adopted a global
mind-set and began spending a substantial
amount of time in their most important market—
the United States.
Formal Integrating Mechanisms
 Direct contact: This is the simplest integrating
mechanism. Managers of the various subunits
just contact each other whenever they have a
concern.
 Liaison roles: This is a bit more complex than
direct contact. As the need for coordination
between subunits increase, integration can be
improved by assigning a person in each subunit
to coordinate with another subunit.
Formal Integrating Mechanisms
(cont’d)
 Teams: When the need for coordination is
greater still, firms use temporary or permanent
teams composed of individuals from the
subunits that need to achieve coordination.
 Matrix structure: When the need for
integration is very high, firms may institute a
matrix structure, in which all roles are viewed
as integrating roles.
Integrating Mechanisms
High
Matrix
structure
Need for coordination
Favored by firms in
rapidly changing and
high-technology
environments
Teams
Liaison
roles
Favored by firms
in stable and
low-technology
environments
Direct
contact
Centralization
Low
Simple
Integrating
mechanisms
Complex
Informal Integrating Mechanisms:
Knowledge Networks
 Knowledge network: A network for
transmitting information within an organization
based on informal contacts between managers
within an enterprise and on distributed
information systems.
G
B
C
A
E
D
F
Strategy, Coordination, and
Integrating Mechanisms
 All enterprises need coordination between
subunits, whether those subunits are functions,
businesses, or geographic areas.
 There is a high need for coordination in firms
that face an uncertain and highly turbulent
competitive environment, where rapid adaptation
to changing market conditions is required for
survival.
Strategy, Coordination, and
Integrating Mechanisms (cont’d)
 In contrast, if a firm is based in a stable
environment characterized by little or no
change, and if developing new products is not a
central aspect of firm’s business strategy, the
need for coordination between functions may be
lower.
Review Questions
1. What is an organization architecture?
2. What is an organization structure?
3. Explain designing structure.
4. Explain the arguments for centralization.
5. Explain the types of structures.
6. What is the Starfish and the Spider?
7. Identify the hybrid structure at Ranbaxy?
8. Explain the formal integrating mechanisms.
Chapter 4. CONTROLL SYSTEM
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
79
Copyright © 2014
3/15/2016
Learning Objectives
1. Discuss the attributes of a typical organizational
control system.
2. Describe the different kinds of controls that are used
in organizations.
3. Explain how different controls should be matched to
the strategy and structure of an organization.
4. Outline the features of the balance score card
approach to control metrics, and explain why it is
useful.
5. Discuss informal or backchannel control methods.
Control System
 Control: The process through which managers
regulate the activities of individuals and units.
 Standard: A performance requirement that the
organization is meant to attain on an ongoing
basis.
 Sub-goal:
An objective that, if achieved, helps an
organization attain or exceed its major goals.
A typical Control System
Establish goals
and standards
Take
corrective action
Variance between
performance and
goals and standards
Measure
performance
Compare
performance against
goals and standards
Provide
reinforcement
Performance meets
or exceeds
goals and standards
Establishing Goals and Standards
 Most organizations operate with a hierarchy of
goals.
 In the case of a business enterprise, the major
goals at the top of the hierarchy are normally
expressed in terms of profitability and profit
growth.
Establishing Goals and Standards
 These goals are normally translated into sub-
goals that can be applied to individuals or units
within an organization.
 As with major goals, sub-goals should be precise
and measurable, address important issues, be
challenging but realistic, and specify a time
period.
Big Hairy Goal
 Most individuals probably have a lot of goals, but
do they have a Big Hairy goal?
 A big hairy goal (BHG) is a goal that is so far
from where you are in your career now that you
will have to push yourself incredibly hard to
achieve it.
Achieving Your Own BHG
1. Ask yourself honestly: Is this a wish, a dream,
or a BHG?
2. Tell yourself that quitting is not an option.
3. Hang in there and keep fighting.
4. Surround yourself with successful people.
5. Gonzalez says the path to reaching your BHG
boils down to this: First, you dream it. Then
you struggle. Finally, you emerge victorious.
6. Stay focused.
Measuring Performance
 Once goals, sub-goals, and standards have been
established, performance must be measured
against the criteria specified.
 This is not as easy as it sounds. Information
systems have to be put in place to collect the
required data; and the data must be compiled into
usable form and transmitted to the appropriate
people in the organization.
Measuring Performance (cont’d)
 Reports summarizing actual performance might
be tabulated daily, weekly, monthly, quarterly, or
annually.
 With the massive advances in computing power
that have occurred over the last three decades,
managers have seemingly infinite quantitative
information at their disposal.
Comparing Performance
Against Goals and Standards
 The next step in the control process is to compare
actual performance against goals and standards.
 If performance is in line with goals or standards,
that is good. However, managers need to make
sure the reported performance is being achieved in
a manner consistent with the values of the
organization.
 If reported performance falls short of goals and
standards, managers need to find the reasons for
the variance.
Taking Corrective Action
 Variance from goals and standards require that
managers take corrective action.
 When actual performance easily exceeds a goal,
corrective action might be increasing the goal.
 When actual performance falls short of a goal,
depending on what further investigation reveals,
managers might change strategy, operations, or
personnel.
 Radical change is not always the appropriate
response when an organization fails to reach a
major goal.
Providing Reinforcement
 If the goals and standards are met or exceeded,
managers need to provide timely positive
reinforcement to those responsible.
 Positive reinforcement could include the
following: congratulations for a job well done,
awards, pay increases, bonuses or enhanced career
prospects.
 Providing positive reinforcement is just as
important an aspect of a control system as taking
corrective action.
Methods of Control
 Personal controls
 Bureaucratic controls
 Output controls
 Cultural controls
 Control through incentives
 Market controls
Personal Control
 Personal control: Making sure through personal inspection
and direct supervision that individuals and units behave in a
way that is consistent with the goals of an organization.
 Personal control can be very subjective, with the manager
assessing how well subordinates are performing by
observing and interpreting their behavior.
 Personal control has serious limitations. For example,
excess supervision can be demotivating. Employees may
resent being closely supervised and perform better with a
greater degree of freedom.
Bureaucratic Controls
 Bureaucratic controls: Control through a formal
system of written rules and procedures.
 The great German sociologist Max Weber was the first
to describe the nature of bureaucratic controls.
 Bureaucratic controls rely on prescribing what
individuals or units can and cannot do—this is, on
establishing bureaucratic standards.
 Almost all large organizations use some bureaucratic
controls.
Output Controls
 Output controls: Setting goals for units or
individuals to achieve and monitoring
performance against those goals.
 Output controls can be used when managers can
identify tasks that are complete in themselves in
the sense of having a measurable output or
criterion of overall achievement that is visible.
Output Controls (cont’d)
 The great virtue of output controls is that they
facilitate decentralization and give individual
managers within unit much greater autonomy than
either personal controls or bureaucratic controls
Cultural Controls
 Cultural control: Regulating behavior by
socializing employees so that they internalize the
values and assumptions of an organization and act
in a manner that is consistent with them.
 Self-control: Occurs when employees regulate
their own behavior so that it is congruent with
organizational goals.
 Although cultural control can mitigate the need
for other controls, thereby reducing monitoring
costs, it is not universally beneficial.
Control Through Incentives
 Incentives: Devices used to encourage and reward
appropriate employee behavior.
 Many employees receive incentives in the form of
annual bonus pay.
 The idea is that giving employees incentives to
work productively cuts the need for other control
mechanisms.
 Control through incentives is designed to facilitate
self-control—employees regulate their own
behavior in a manner consistent with
organizational goals to maximize their chance of
earning incentive-based pay.
Control Through Incentives (cont’d)
 When incentives are tied to team performance they have
the added benefit of encouraging cooperation between
team members and fostering a degree of peer control.
 Peer control: Occurs when employees pressure others
within their team or work group to perform up to or in
excess of the expectations of the organization.
 In sum, incentives can reinforce output controls, induce
employees to practice self-control, increase peer control,
and lower the need for other control mechanisms.
Market Controls
 Market controls: Regulating the behavior of
individuals and units within an enterprise by
setting up an internal market for some valuable
resource such as capital.
 Market controls are usually found within
diversified enterprises organized into product
divisions, where the head office might act as an
internal investment bank, allocating capital funds
between the competing claims of different product
divisions based on an assessment of their likely
future performance.
Market Controls (cont’d)
 The main problem with market controls is that
fostering internal competition between divisions
for capital and the right to develop new products
can make it difficult to establish cooperation
between divisions for mutual gain.
Review Questions
1. What is the control system consist of?
2. Define a big hairy goal?
3. What are the methods of control?
4. What is personal controls?
5. Explain bureaucratic controls.
Review Questions
6. Define output controls?
7. Describe the cultural controls.
8. What is control through incentives?
9. What is market controls?
Chapter 5. MOTIVATION AND
REWARDING EMPLOYEES
PERFORMANCE
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
104
Copyright © 2014
3/15/2016
Learning Objectives
1. Diagram and summarize the MARS model.
2. Describe four-drive theory and explain how these
drives influence motivation and behavior.
3. Describe the characteristics of effective goal
setting and feedback.
4. Diagram the expectancy theory model and
discuss its practical implications for motivating
employees.
Learning Objectives (cont’d)
5. Discuss the advantages and disadvantages of
the four reward objectives.
6. Discuss ways to measure employee
performance more accurately.
7. Summarize the equity theory model, including
how people try to reduce feelings of inequity.
8. Diagram the job characteristics model of job
design.
9. Define empowerment and identify strategies
to support empowerment.
Employee Engagement
 Employees emotional and rational motivation
 Their perceived ability to perform the job
 Their clear understanding of the organization’s
vision
 Their belief that they have been given the
resources to get the job done
 It encompasses the four main factors
that contribute to employee performance
Motivation: True or False?
 I can motivate people
 Fear is a damn good motivator
 I know what motivates me, so I know what
motivates my employees
 Increased job satisfaction means increased job
performance
Source: Managementhelp.org
MARS Model
Ability
Motivation
(effort)
*Direction
*Intensity
*Persistence
Role
Perceptions
Situational
factors
Employee
behavior and
results
Ability & Role Perceptions
 Ability – consists of both the natural aptitudes
and learned capabilities required to
successfully complete a task
 Important factor of employee development
 Role perceptions – they understand the
specifics, importance, and preferred behaviors
of the tasks. Ways to improve is through job
description and ongoing coaching
Managing Employee Motivation
1. Drives and
needs
Motivation
(effort)
*Direction
*Intensity
*Persistence
2. Goals,
expectations,
and feedback
Employee
behavior and
results
3. Extrinsic
and intrinsic
rewards
Maslow’s Needs Hierarchy
Selfactualization
Esteem
Belongingness
Safety
Physiological
Challenging tasks, freedom to try new ideas
Job status, recognition, mastering the job
Human interaction, being accepted as a team
member
Job security, employee benefits, safe
workplace
Work hours, nourishments, air quality,
temperature
Called in Sick?
50
45
40
35
30
25
20
15
10
5
0
Need a break
Illness in family
Errands
Workers who took a sick day
when not sick
Source: USA Today Snapshots
Management Implications
of Maslow’s Theory
1. Employees have different needs at different times
2. Employees have several interdependent needs,
not just one dominant need
3. At some point, most employees want to achieve
their full potential (self-actualization)
4. Employee needs are influenced by values and
norms
Learned Needs Theory
Need for
Achievement
(nAch)
Need for
Affiliation
(nAff)
Need for Power
(nPow)
Four-Drive Theory Motivation
Drive to
acquire
Drive to
bond
Drive to
learn
Drive to
defend
Social
norms
Personal
values
Past
experience
Mental skill set
resolves competing
drive demands
Goal-directing
choice and effort
Goal Setting
 The process of motivating employees
and clarifying their role perceptions
by establishing performance
objectives
 A goal is a desirable future state that
an organization or person attempts to
realize
 Goal setting improves role
perceptions and consequently clarifies
the direction of employee effort
Expectancy Theory of Motivation
Outcome valence
E-to-P expectancy
(probability that
effort will result in
a specific level of
performance)
P-to-O expectancy (the outcome’s positive
or negative value to the
(probability that
employee)
performance will
result in specific
outcomes)
Outcome 1
+ or Effort
Performance
Outcome 1
+ or Outcome 1
+ or -
Rewards
 Extrinsic Rewards – anything received
from another person that the recipient
values and is contingent on his or her
behavior or results
Paychecks, performance bonuses,
praise, and other forms of recognition
Rewards (cont’d)
 Intrinsic Rewards – a positive
emotional experience resulting
directly and naturally from the
individual’s behavior or results
Learning a new task, feeling of
accomplishment, etc.
Motivation Through
Extrinsic Rewards
Membership & senioritybased rewards
Nonfinancial rewards
Job status-based rewards
Improving performance
appraisals
Competency-based rewards
Rewards employees
equitably
Performance-based rewards
How to Accurately Evaluate
Employee Performance?
1. Use more objective measures of
performance
2. Use anchored performance
appraisal instruments
3. Use multiple sources of
performance information
4. Use performance appraisal
training
Best Practices at Nucor
 Pay for performance – On average two-thirds of a
Nucor steelworker’s pay is based on a production
bonus
 Listen to the frontline – According to the Execs,
almost all of the best ideas come from the factory
floor
 Push-down authority – minimizing layers of
management
 Protect your culture –compatibility of culture
with its egalitarian philosophy and team spirit is a
big focus of its acquisition research
Source: Business Week, May 1, 2006
Correcting Inequity Feelings
 Change Inputs
 Change Outcomes
 Change Perceptions
 Leave the Situation
Job Characteristics Model
Core job
characteristics
Skill variety Task
identity Task
significance
Critical psychological
states
Meaningfulness
Outcomes
Work
motivation
Growth
satisfaction
Autonomy
Responsibility
Feedback from job
Knowledge of results
Individual differences
*Knowledge and skill
*Context satisfaction
*Growth need strength
General
Satisfaction
Work
effectiveness
Core Job Characteristics
 Skill variety – the use of different skills and
talents to complete a variety of work activities
 Task identity – the degree to which a job
requires completion of a whole or identifiable
piece of work
 Task significance – the degree to which the
job affects the organization and society
Core Job Characteristics (cont’d)
 Autonomy – provide freedom, independence,
and discretion in scheduling work and
procedures
 Job feedback – the degree to which employees
can tell how well they are doing
Job enrichment
 A job design practice in which
employees are given more
responsibility for scheduling,
coordinating, and planning their
own work
 Combine highly interdependent
tasks into one job
 Establishing client relationships
 Give employees more autonomy
over their work
Loyal vs. Trapped?
34
33
32
31
30
29
28
Loyal
High risk
Workers
Source: CIO, October 1, 2003
T rapped
Empowerment
 A psychological concept represented by four
dimensions:
 Self-determination – they have freedom,
interdependence, and discretion over their work
activities
 Meaning – they care about their work and
believe that what they do is important
 Competence – their ability to perform the work
well and have a capability to grow with new
challenges
Empowerment (cont’d)
 Impact – Active participants in the
organization; that is, their decisions and
actions influence the company’s success
Inspiring Employees
 Don’t ask for worker input – use it.
 Tell your people you care about them.
 Show employees what they are learning
 Support people when they make a mistake.
 Set clear goals and celebrate accomplishments.
Source: Business Week, May 1, 2006
Review Questions
1. What is mean by ability & role perceptions?
2. Explain the Maslow’s Needs Hierarchy.
3. Identify the management implications
of Maslow’s theory?
4. Describe in detail of Goal Setting?
5. How many kinds of rewards? What are they?
Explain, please.
6. How to Accurately Evaluate Employee
Performance?
7. What are the Best Practices at Nucor?
Review Questions (cont’d)
8. Describe in detail of Core Job Characteristics.
9. Explain the four dimensions of Empowerment.
10. What is the inspiring employees?
Chapter 6. MANAGING EMPLOYEE
ATTITUDE AND WELL-BEING
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
135
Copyright © 2014
3/15/2016
Learning Objectives
1. Describe the effect of emotions and attitudes on
employee behavior.
2. Identify four ways in which employees respond
to job dissatisfied.
3. Explain how job satisfaction relates to customer
service and satisfaction.
4. Distinguish organizational commitment from
continuance commitment, including their effects
on employee behavior.
5. Discuss ways to strengthen organizational
commitment.
Learning Objectives
6. Describe the stress experience and its
consequences.
7. Summarize three common sources of stress in
the workplace.
8. List five ways to manage work-related stress.
9. Discuss how managers can help employees
improve their work-life balance.
10. Identify the “Big Five” personality dimensions.
11. A. Explain how personality influences
emotions, well-being, job performance, and career
satisfaction.
Emotions, Attitudes, & Behavior
 Emotions – are physiological, behavioral, and
psychological episodes experienced toward an object.
 Attitudes – clusters of beliefs, assessed feelings, and
behavioral intentions toward a person, object, or event.
 Beliefs – These are established perceptions about
the attitude object-what you believe to be true.
 Feelings – represent your positive or negative
evaluations of the attitude object.
 Behavioral intentions – your motivation to engage
and attitudes are connected to each other and to
behavior.
Model of Emotions,
Attitudes, and Behavior
Perceived Environment
Cognitive process
Emotional process
Attitude
Beliefs
Feelings
Emotional
episodes
Behavioral
intentions
Behavior
Cognitive Dissonance
An uncomfortable tension
experienced when behavior
is inconsistent with our
attitudes.
Cognitive Dissonance
Depends on how much the
behavior is:
Public
Important
Voluntary
Job Satisfaction
A person’s
evaluation of his or
her job and work
context.
Job Satisfaction
It is the appraisal of
the perceived:
Job characteristics
Work environment
Emotional
experiences at work
EVLN Model
EXIT – leaving the
organization, transferring
to another work unit, or
at least trying to make
these exits
LOYALTY – Employees who
respond to dissatisfaction
by patiently waiting.
VOICE – any attempt to
change, rather than escape
from, a dissatisfying
situation.
NEGLECT – reducing work
effort, paying less attention to
quality, and increasing
absenteeism and lateness
Employee-CustomerProfit-Chain Model
Organizational Practices
Higher Revenue and Profits
Employee satisfaction with job
and company
•Satisfied clients
•More returning clients
•More client referrals
•Lower turnover
•Friendly service
•Motivated staff
Clients perceive higher-value
service
Organizational Commitment (OC)
 Organizational Commitment - An employee’s
emotional attachment to, identification with, and
involvement in a particular organization.
 Continuance commitment – An employee’s
calculative attachment to an organization.
Motivated to stay only because it is costly to
leave.
Organizational Commitment (OC)
(cont’d)
 Building OC
 Justice and support
 Shared values
 Trust
 Organizational comprehension
 Employee involvement
Stress
 Stress – an adaptive response to a situation that
is perceived as challenging or threatening to a
person’s well-being.
 The stress response is a complex emotion that
produces physiological changes to prepare us for
“fight or flight”
 Heart rate increases, muscles tighten, and
breathing speeds up
Stress (cont’d)
 Two types of stress
 Distress (negative) – physiological,
psychological deviation from healthy
functioning.
 Eustress (positive) – it activates and
motivates people to achieve goals, change
their environments, and succeed in life’s
challenges
Consequences of Distress
Muscle pain
Impaired job
performance
Job dissatisfaction
Poor decision
making
Tension headaches
Workplace accidents
Consequences
Depression
Lower organizational
commitment
Cardiovascular disease
Aggressive behavior
Moodiness
Stressors
Low Task
Control
Work
Overload
Harassment and Incivility Psychological harassment Sexual harassment
Workplace-Related Stress
Management Practices
Stress Management
Strategy
Examples
Withdraw from the stressor. Work breaks, days off, vacations, and
sabbaticals.
Change stress perceptions.
Increasing employee confidence,
providing humor.
Control stress consequences. Relaxation and meditation techniques,
wellness programs.
Receive social support.
Remove the stressor.
Supportive leadership, social
interaction, support groups.
Reassign employees; minimize noise,
unsafe conditions, harassment.
Support Work-life Balance
 Offer flexible work hours in which
employees can arrange to begin and end
their workdays earlier or later
 Job-sharing – a position is split between
two people
Support Work-life Balance (cont’d)
 Personal leave – time and flexibility to
raise a family, care for elderly, or take
advantage of a personal experience
 Telecommuting – employees work from
home or a remote site, usually with a
computer connection to the office.
Big 5 Personality Dimensions
Big Five Dimension
People with a high score on this
dimension tend to be more:
Conscientiousness
Careful, dependable, selfdisciplined
Courteous, good-natured,
empathetic, caring
Anxious, hostile, depressed
Agreeableness
Neuroticism
Openness to Experience
Extroversion
Sensitive, flexible, creative,
curious
Outgoing, talkative, sociable,
assertive
Effects of Personality
Career
Satisfaction
Performance
Personality
Stress & WellBeing
Emotions &
Attitudes
Holland’s Six Types
of Personalities
Type
Personality Traits
Realistic
Practical, shy, materialistic, stable.
Investigative
Analytic, introverted, reserved, curious, precise,
independent.
Artistic
Creative, impulsive, idealistic, intuitive,
emotional.
Social
Sociable, outgoing, conscientious, need for
affiliation.
Enterprising
Confident, assertive, energetic, need for power.
Conventional
Dependable, disciplined, orderly, practical,
efficient.
Review Questions
1. What is emotions?
2. What is attitudes?
3. What is beliefs and feelings?
4. Define behavioral intentions?
5. Explain EVLN Model.
6. What is organizational commitment and
continuance commitment?
7. What is stress? And explain the stress
response.
Review Questions
8. Explain the components of effects of
Personality?
9. Describe the Holland’s six types of
personalities.
Chapter 6. MANAGING EMPLOYEE
ATTITUDE AND WELL-BEING
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
158
Copyright © 2014
3/15/2016
Learning Objectives
1. Describe the effect of emotions and attitudes on
employee behavior.
2. Identify four ways in which employees respond
to job dissatisfied.
3. Explain how job satisfaction relates to customer
service and satisfaction.
4. Distinguish organizational commitment from
continuance commitment, including their effects
on employee behavior.
5. Discuss ways to strengthen organizational
commitment.
Learning Objectives
6. Describe the stress experience and its
consequences.
7. Summarize three common sources of stress in
the workplace.
8. List five ways to manage work-related stress.
9. Discuss how managers can help employees
improve their work-life balance.
10. Identify the “Big Five” personality dimensions.
11. A. Explain how personality influences
emotions, well-being, job performance, and career
satisfaction.
Emotions, Attitudes, & Behavior
 Emotions – are physiological, behavioral, and
psychological episodes experienced toward an object.
 Attitudes – clusters of beliefs, assessed feelings, and
behavioral intentions toward a person, object, or event.
 Beliefs – These are established perceptions about
the attitude object-what you believe to be true.
 Feelings – represent your positive or negative
evaluations of the attitude object.
 Behavioral intentions – your motivation to engage
and attitudes are connected to each other and to
behavior.
Model of Emotions,
Attitudes, and Behavior
Perceived Environment
Cognitive process
Emotional process
Attitude
Beliefs
Feelings
Emotional
episodes
Behavioral
intentions
Behavior
Cognitive Dissonance
An uncomfortable tension
experienced when behavior
is inconsistent with our
attitudes.
Cognitive Dissonance
Depends on how much the
behavior is:
Public
Important
Voluntary
Job Satisfaction
A person’s
evaluation of his or
her job and work
context.
Job Satisfaction
It is the appraisal of
the perceived:
Job characteristics
Work environment
Emotional
experiences at work
EVLN Model
EXIT – leaving the
organization, transferring
to another work unit, or
at least trying to make
these exits
LOYALTY – Employees who
respond to dissatisfaction
by patiently waiting.
VOICE – any attempt to
change, rather than escape
from, a dissatisfying
situation.
NEGLECT – reducing work
effort, paying less attention to
quality, and increasing
absenteeism and lateness
Employee-CustomerProfit-Chain Model
Organizational Practices
Higher Revenue and Profits
Employee satisfaction with job
and company
•Satisfied clients
•More returning clients
•More client referrals
•Lower turnover
•Friendly service
•Motivated staff
Clients perceive higher-value
service
Organizational Commitment (OC)
 Organizational Commitment - An employee’s
emotional attachment to, identification with, and
involvement in a particular organization.
 Continuance commitment – An employee’s
calculative attachment to an organization.
Motivated to stay only because it is costly to
leave.
Organizational Commitment (OC)
(cont’d)
 Building OC
 Justice and support
 Shared values
 Trust
 Organizational comprehension
 Employee involvement
Stress
 Stress – an adaptive response to a situation that
is perceived as challenging or threatening to a
person’s well-being.
 The stress response is a complex emotion that
produces physiological changes to prepare us for
“fight or flight”
 Heart rate increases, muscles tighten, and
breathing speeds up
Stress (cont’d)
 Two types of stress
 Distress (negative) – physiological,
psychological deviation from healthy
functioning.
 Eustress (positive) – it activates and
motivates people to achieve goals, change
their environments, and succeed in life’s
challenges
Consequences of Distress
Muscle pain
Impaired job
performance
Job dissatisfaction
Poor decision
making
Tension headaches
Workplace accidents
Consequences
Depression
Lower organizational
commitment
Cardiovascular disease
Aggressive behavior
Moodiness
Stressors
Low Task
Control
Work
Overload
Harassment and Incivility Psychological harassment Sexual harassment
Workplace-Related Stress
Management Practices
Stress Management
Strategy
Examples
Withdraw from the stressor. Work breaks, days off, vacations, and
sabbaticals.
Change stress perceptions.
Increasing employee confidence,
providing humor.
Control stress consequences. Relaxation and meditation techniques,
wellness programs.
Receive social support.
Remove the stressor.
Supportive leadership, social
interaction, support groups.
Reassign employees; minimize noise,
unsafe conditions, harassment.
Support Work-life Balance
 Offer flexible work hours in which
employees can arrange to begin and end
their workdays earlier or later
 Job-sharing – a position is split between
two people
Support Work-life Balance (cont’d)
 Personal leave – time and flexibility to
raise a family, care for elderly, or take
advantage of a personal experience
 Telecommuting – employees work from
home or a remote site, usually with a
computer connection to the office.
Big 5 Personality Dimensions
Big Five Dimension
People with a high score on this
dimension tend to be more:
Conscientiousness
Careful, dependable, selfdisciplined
Courteous, good-natured,
empathetic, caring
Anxious, hostile, depressed
Agreeableness
Neuroticism
Openness to Experience
Extroversion
Sensitive, flexible, creative,
curious
Outgoing, talkative, sociable,
assertive
Effects of Personality
Career
Satisfaction
Performance
Personality
Stress & WellBeing
Emotions &
Attitudes
Holland’s Six Types
of Personalities
Type
Personality Traits
Realistic
Practical, shy, materialistic, stable.
Investigative
Analytic, introverted, reserved, curious, precise,
independent.
Artistic
Creative, impulsive, idealistic, intuitive,
emotional.
Social
Sociable, outgoing, conscientious, need for
affiliation.
Enterprising
Confident, assertive, energetic, need for power.
Conventional
Dependable, disciplined, orderly, practical,
efficient.
Review Questions
1. What is emotions?
2. What is attitudes?
3. What is beliefs and feelings?
4. Define behavioral intentions?
5. Explain EVLN Model.
6. What is organizational commitment and
continuance commitment?
7. What is stress? And explain the stress
response.
Review Questions
8. Explain the components of effects of
Personality?
9. Describe the Holland’s six types of
personalities.
Chapter 8. COMMUNICATION
Prepared by
1. Mr. Somchan Sovandara (S. Leader)
2. Mr. Chhim Phanna
3. Mr. Soun Sear
4. Mr. Sean Vuthy
Edited by
1. Mr. Srey Bundoeun: Head of Academic Councils
2. Mr. Say Rotanak : Dean of Faculties of Business and Tourism
181
Copyright © 2014
3/15/2016
Learning Objectives
1. Outline the main elements of a communication
system.
2. Explain why it is important to match media to a
message.
3. Discuss the formal and informal channels through
which information flows in organizations.
4. Identify the sources of noise that lead to
miscommunication within organizations.
5. Discuss the steps managers can take to counteract
noise and improve communication within their
organizations.
Communication
 The process by which information is exchanged
and understood between people
 Transmitting the sender’s intended meaning is the
essence of good communication
Managers Use Communication to:
 Transmit information about their goals, strategies, expectations,
management philosophy, and values
 Build commitment among subordinates to their programs and
policies, convince allies in their network to support them, persuade
their bosses that they are performing well, and influence
stakeholders
 Achieve coordination between different units within an
organization, such as R&D, marketing, and production
 Help shape the image of themselves that they present to the world
Professional Business
Communication Advice
 Don’t interrupt – this is really looked down upon
 Use meetings to get to know your co-workers
 Let speakers in meetings speak freely about their
needs
 Americans value time, so stick to the issues on the
agenda
 Avoid personal confrontations
 Don’t tell foreign jokes, they don’t work in
translation
Model of the
Communication Process
Sender
Encode
message
Transit
message
Form
message
Receiver
Receive
encoded
message
Decode
message
Encode
feedback
Form
feedback
Noise
Decode
feedback
Receive
encoded
feedback
Transit
feedback
Communication Channels
Verbal
Communication
Nonverbal
Communication
Verbal Communication
 Any oral or written means of transmitting meaning
through words including face-to-face meetings,
telephone conversations, written memos, and e-mail
messages
 Media richness – The volume and variety of
information that a sender and receiver can transmit
during a specific time
 Flaming – The act of sending an emotionally charged
message to others
Europe Heads for the E-mail
Company
1. Google
2. MSN
Audience
Reach* 5/04
36.7%
35.7%
Country
U.S.
U.S.
3. Microsoft.com
4. Ebay
33.3%
20.7%
U.S.
U.S.
5. Yahoo!
6. Wanadoo**
7. Tiscali**
8. Lycos Europe**
19.7%
13.2%
10.1%
9.8%
U.S.
France
Italy
Spain
9. Amazon
10. T-Online**
9.6%
9.3%
U.S.
Germany
Nonverbal Communication
 Any part of communication that does not use words
 Messages sent through human actions and behavior
rather than words
 Facial gestures, voice intonation, posture, physical
distance, and silence
 Emotional contagion – the automatic process of
“catching” or sharing another person’s emotions by
mimicking that person’s facial expressions and other
nonverbal behavior
Media Richness
1. Rich media simultaneously use multiple communication
methods
2. Rich media such as face-to-face communication allow
immediate feedback from receiver to sender, whereas
feedback in lean media, such as written reports, is delayed
or nonexistent
3. Rich media let the sender customize the message to the
receiver. Most face-to-face conversations are developed
specifically for one or a few people.
Matching Media to the Situation
Rich
Medium
Overload zone
Face-to-face
Video conference
Richness of the
Communication
Medium
Telephone
Instant massaging
E-mail
Lean
Medium
Web-logs
Newsletters
zone
Routine/
Communication situationOversimplified
Nonroutine/
Financial statement
clear
ambiguous
Can We Talk?
 Face-to-face meetings can trump technology
 The CEO of PBD Worldwide Fulfillment Services in
Alpharetta, GA., launched a “no e-mail Fridays”
policy
 He suspected that overdependence on e-mail at PBD,
which offers services like a call center management
and distribution, was hurting productivity and
perhaps sales
 In less than four months, the simple directive has
resulted in quicker problem-solving, better teamwork, and best of all, happier customers.
 Recent research suggests that the perils of e-mail are
greater than many assume.
Writing Skills Matter
 Business undergraduates facing challenge — writing mature
research papers for general courses and expressing
themselves clearly, confidently, and concisely for a
professional audience
 Only 51% of all high school students who took the college
entrance exams are prepared for college-level reading,
according to a report released last month by the American
College Testing Program (ACT)
 Strong writing skills are crucial for business majors looking
to enter the corporate world.
 Top of the list of recruiting companies’ desired traits: The
ability to communicate
Organizational Communication
Formal
Communicati
on Channels
Informal
Communicati
on Channels
Formal Communication
 Systems of officially sanctioned channels within an
organization that are used regularly to communicate
information
 Downward communication – occurs when information
flows from higher levels within an organization
hierarchy
 Upward communication – occurs when information
flows from lower to higher levels within an organization
hierarchy
Informal Communication
 Unofficial communication channels
not formally established by managers
 Personal networks – relationships
between individuals
 Grapevine –the spread of
unsanctioned information (rumor or
gossip) through personal networks
Communication Barriers
& Breakdowns (Noise)
Perceptions
Filtering
Language
Barriers
Information
Overload
Cultural
Differences
Gender
Differences
Perceptions
The process of attending to, interpreting,
and organizing information
Selective
Perception
Stereotyping
Attribution
Process
Fundamental
Attribution Error
Self-Serving Bias
Recency Effect
Vague Resume Statements
The online consultant, ResumeDoctor.com, looked
at 160,000 resumes and found the most common
vague statements (% of resumes):
12.6 Communication skills
4.2 Detail-oriented
7.2 Team player
3.8 Results-oriented
5.5 Interpersonal skills
3.8 Self-motivated
4.8 Interpersonal skills
3.2 Problem solver
4.3 Driven
3.1 Highly motivated
Language Barriers
 Jargon – technical language and acronyms as
well as recognized words with specialized
meaning in specific organizations or social
groups
 Drop-off – distortion in the content of a message
as it passes through a communication system
Information Overload
Information Load
Episodes of
information
overload
Employee’s
information
processing
capacity
IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII
Time
Improving Communication
Facilitate
communication
through workspace
design
Reduce
information
overload
Engage in
active listening
IMPROVING
COMMUNICATION
Get your
message across
Communicate
directly with
employees
Proactively
use the
grapevine
Match media
to message
Active Listening
Sensing
*Postpone evaluation
*Avoid interruptions
*Maintain interest
Active
Responding
*Show interest *Clarify
the message
Listening
Evaluating
*Empathize
*Organize information
Communicate Directly
With Employees
Management By Walking
Around
effective way to counteracting
filtering, and it can teach the
manager things that might not be
transmitted upward through
formal channels
Review Questions
1. What is Communication?
2. How managers use communication?
3. What are the professional business
communication advice?
4. Explain the model of the communication
process?
5. How many types of communication? What are
they? Explain each of them, please.
Review Questions (cont’d)
6. Describe the formal and informal
communication.
7. What are the communication barriers?
8. How to improve communication?
9. How do manager communicate with their
employees?