UNIVERSITY OF ZULULAND FACULTY OF ARTS Department of Communication Science Communication Science 2 ACOM211 Lecturer: J.M. Magagula Tel: (035) 902 7036 Email: jmagagul@pan.uzulu.ac.za / mfanasibili@gmail.com Richards Bay Campus Office No. A2-42 2nd Floor _________________________________________________________ 1 Table of Contents STUDY UNIT 1 ................................................................................................................................................ 5 1.1 DEFINING COMMUNICATION ....................................................................................................... 5 1.2 ORGANIZATIONATIONAL COMMUNICATION ............................................................................... 6 1.3 ASSUMPTIONS AND FEATURES OF ORGANIZATIONAL COMMUNICATION .................................. 8 1.4 SAMPLE RESEARCH TOPICS IN ORGANIZATIONAL COMMUNICATION ......................................... 8 1.5 ORGANIZATIONAL COMMUNICATION: WHAT’S IN IT FOR YOU? ................................................. 8 1.6 PREVALENCE OF MISUNDERSTANDINGS ...................................................................................... 9 1.7 CHANGING NATURE OF ORGANIZATIONS .................................................................................... 9 1.8 REALITIES OF DIVERSE WORKFORCE ............................................................................................. 9 1.9 ETHICAL FRAMEWORKS AND ORGANIZATIONAL COMMUNICATION ........................................ 10 1.10 KREPS’ ETHICAL GUIDELINES....................................................................................................... 10 1.11 THREE IMPORTANT CONSTRUCTS .............................................................................................. 10 1.12 INTERNAL COMMUNICATION (WORKPLACE COMMUNICATION) .............................................. 11 1.13 EXTERNAL COMMUNICATION (PUBLIC COMMUNICATION)....................................................... 11 1.14 RESEARCH INTO ORGANIZATIONATIONAL COMMUNICATION .................................................. 11 1.15 THEORETICAL APPROACHES TO ORGANIZATIONATIONAL COMMUNICATION .......................... 12 1.15.1 Classical Approach ................................................................................................................... 12 1.15.2 Human Resources Approach .................................................................................................... 12 1.15.3 Systems Approach.................................................................................................................... 13 1.15.4 Cultural Approach ............................................................................................................... 13 STUDY UNIT 2 .............................................................................................................................................. 15 2.1 ORGANIZATIONAL STRUCTURE ......................................................................................................... 15 2.2 DIRECTIONS OF COMMUNICATION / COMMUNICATION CHANNELS .............................................. 16 2.2.1 Formal Channels.................................................................................................................. 16 2.2.2 Informal Channels ............................................................................................................... 16 2.3 HIERARCHIES (BUREAUCRACY) ................................................................................................... 16 2.4 FLOW OF INFORMATION AND EFFECT OF STRUCTURE ON COMMUNICATION ......................... 18 2.4.1 Downward Communication ................................................................................................ 18 2.4.1.1 Barriers to effective downward communication ................................................................ 19 2 2.4.2 Upward Communication ..................................................................................................... 19 2.4.2.1 Basic purposes..................................................................................................................... 20 2.4.2.2 Types of messages in upward communication ................................................................... 20 2.4.3 Lateral/Horizontal or Sideways Communication ................................................................ 20 2.4.3.1 Purpose of Lateral Communication .................................................................................... 21 2.4.3.2 What Managements Needs to Decide ................................................................................ 21 2.4.3.3 Barriers to Lateral Communication ..................................................................................... 22 2.4.4 Diagonal Communication .................................................................................................... 22 2.5 THE INFORMAL COMMUNICATION OR ‘GRAPEVINE’ ................................................................. 22 2.5.1 Major functions of the ‘grapevine’ ..................................................................................... 23 2.5.2 Attributes to the ‘grapevine’............................................................................................... 23 2.6 JOB SPECIALIZATION ................................................................................................................... 23 2.7 PATTERNS OF AUTHORITY .......................................................................................................... 24 2.8 SPAN OF CONTROL ...................................................................................................................... 25 2.9 THE PROS AND CONS OF FUNCTIONAL ORGANIZATION DESIGN ............................................... 26 2.10 MEETINGS AND COMMITTEES .................................................................................................... 26 STUDY UNIT 3 .............................................................................................................................................. 28 3.1 COMMUNICATION NETWORKS................................................................................................... 28 3.2 TYPES OF COMMUNICATION NETWORKS................................................................................... 29 3.2.1 The Circle............................................................................................................................. 29 3.2.2 The Wheel ........................................................................................................................... 30 3.2.3 The Y-Channel ..................................................................................................................... 31 3.2.4 The Chain ............................................................................................................................ 32 3.2.5 The All-channel ................................................................................................................... 33 3.3 INDIVIDUAL COMMUNICATION ROLES IN AN ORGANIZATION .................................................. 34 3.3.1 Gatekeepers ........................................................................................................................ 34 3.3.2 Liaisons (bridge) .................................................................................................................. 34 3.3.3 Opinion Leaders .................................................................................................................. 34 3.3.4 Cosmopolites....................................................................................................................... 34 3.3.5 The isolated ......................................................................................................................... 35 STUDY UNIT 4 .............................................................................................................................................. 36 4.1 FUNCTIONS OF ORGANIZATIONAL COMMUNICATION .............................................................. 36 3 4.1.1 The Informative Function........................................................................................................... 36 4.1.2 The Regulatory Function ............................................................................................................ 36 4.1.3 The Integrative Function ............................................................................................................ 36 4.1.4 The Persuasive Function ............................................................................................................ 37 4.2 CORPORATE COMMUNICATION ....................................................................................................... 37 4.2.1 INTERNAL COMMUNICATION ........................................................................................................ 37 STUDY UNIT 5 .............................................................................................................................................. 38 5.1 ORGANIZATIONATIONAL CULTURE................................................................................................... 38 5.2 EXPLORING ORGANIZATIONAL CULTURE.......................................................................................... 38 5.3 CLASSIFYING CULTURES .................................................................................................................... 39 5.4 FUNCTIONS OF ORGANIZATIONAL CULTURE .................................................................................... 39 5.5 DRAW BACKS OF CULTURE ............................................................................................................... 40 5.6 WHY IS IT IMPORTANT TO UNDERSTAND THE CORPORATE CULTURE? ........................................... 41 5.6.1 Understanding The Culture of An Organization Facilitates: .......................................................... 41 5.6.2 Can Corporate Cultures be Changed? ............................................................................................ 43 5.7 CULTURE AND SUCCESS ........................................................................................................................ 44 5.8 FORMAL COMPONENTS OF ORGANIZATIONATIONAL CULTURE .......................................................... 44 5.9 ORGANIZATIONATIONAL CLIMATE ....................................................................................................... 45 5.10 CLIMATE IN ORGANIZATIONS ............................................................................................................. 45 5.11 CULTURE AND CLIMATE COMPARED .................................................................................................. 45 STUDY UNIT 6 .............................................................................................................................................. 47 6.1 ORGANIZATIONATIONAL CHANGE........................................................................................................ 47 6.2 WHAT IS CHANGE MANAGEMENT ........................................................................................................ 47 6.2.1 What Are The Differences Between Change And Transition? ....................................................... 47 6.2.2 Leading and Managing Change ...................................................................................................... 48 6.3 WHY IS ORGANIZATIONATIONAL CHANGE DIFFICULT TO ACCOMPLISH? ............................................ 48 6.4 KOTTER’S EIGHT-STAGE PROCESS FOR CREATING MAJOR CHANGE .................................................... 49 4 STUDY UNIT 1 1.1 DEFINING COMMUNICATION Communication may be defined as - “A process of sharing facts, ideas, opinions, thoughts and information through speech, writing, gestures or symbols between two or more persons”. This process of communication always contains messages, which are to be transmitted between the parties. There are two parties - one is ‘Sender’, who sends the message and the other ‘Receiver’, who receives it. Generally the process of communication is said to be complete when the receiver understands the message and gives the feedback or response. All these activities of sharing or exchanging information, ideas and experiences between two or more persons are known as communication. Communication is seen as the integral process of the management function itself. Employees are often described as the greatest assets of an organization. Therefore, workplace communication requires employees with good interpersonal skills from the societies. Communication value may be created through four factors, content (what), presentation (how), place (where) and time (when). Communication is frequently divided into the following levels: Interpersonal communication Group level communication Organizational level communication Inter-organizational level communication Mass communication. 5 1.2 ORGANIZATIONATIONAL COMMUNICATION Organizational communication is a specialization area which developed in the field of communication studies during the late 1940s and early 1950s. This started as a response to the following: 2.1 need for organizations to become more efficient and productive in order to serve the needs of the society. 2.2 the importance of organizational communication in businesses, industrial organizational, government agencies, churches, hospitals, academic institutions and so on. An organization is made up of people who work together to reach specific goals/common purpose which otherwise cannot be reached by individuals working on their own. Organizational communication is the necessary communication that takes place to achieve those goals or common purpose. There are six major characteristics that make organizations different from other groupings: people do different jobs and have different responsibilities here will be one or more places where power is held each post in an organization may be filled by a number of different people different sections of the organization depend on each other different sections of the organization work together to coordinate their activities different sections of the organization work together on a regular basis Organizational Communication Definition: “Communication is the basis for the way in which an organization functions” Communication plays a critical role in most every aspect of organizational life. A business is a group of people organized around a common goal. 6 Organization - Greek origins Organon - “tool” or “instrument” Communication is both the means by which the tool or instrument (the organization) is created and sustained and the prime coordinating mechanism for activity designed to attain personal and organizational goals. “…the process of creating, exchanging, interpreting (correctly or incorrectly), and storing messages within a system of human interrelationships.” “…the exchange of oral, nonverbal, and written messages within (and across the boundaries of) a system of interrelated and interdependent people working to accomplish common tasks and goals within an organization.” Organizational communication is defined as “the central binding force that permits coordination among people and thus allows for organized behavior,” and it is argued that “the behavior of individuals in organizations is best understood from a communication point of view.” Therefore, communication is not only an essential aspect of these recent organizational changes, but effective communication can be seen as the foundation of modern organizations. Organizations are held together by communication (lifeblood of organizations). When people gather together to begin to organize, they need to make plans, arrive at decisions and settle disputes. Organizational communication is an umbrella term for all the communication processes that occur in the context of an organization. Organizational communication involves thinking to yourself (intrapersonal) communication between a manager and an employee (dyadic communication or interpersonal communication), meetings (small group) public speeches (public communication/relations), mass communication (press release, company 7 newsletters, new product announcements) and digital communication (e-mail messages to staff members and other organizations or information obtained from the internet). All these forms of communication takes place both inside (internally) and outside (externally) an organization. 1.3 ASSUMPTIONS AND FEATURES OF ORGANIZATIONAL COMMUNICATION Communication is central to the existence of the organization Organizational communication is a complex process (creating, exchanging, interpreting, and storing messages) Misunderstandings occur 1.4 SAMPLE RESEARCH TOPICS IN ORGANIZATIONAL COMMUNICATION Information Dissemination / Message Flow Relationship Creation, Maintenance, and Termination Process of Organizing Message Privilege and Power Optimal Information (overload, underload) Effective Channels Impact of Technology Workplace Democracy Influence of Organizational Structure Team Interaction Organizational Culture 1.5 ORGANIZATIONAL COMMUNICATION: WHAT’S IN IT FOR YOU? Better equipped to address contemporary workplace issues. o Development of a temporary workforce 8 o Implementation of teams o Adoption of new technologies o Multiculturalism Trained to focus on the complex and collaborative nature of communicating, organizing and knowing More articulate about ideas. Understand the task of organizing individuals, groups, projects, and thoughts. Knowing/Learning how to learn. 1.6 PREVALENCE OF MISUNDERSTANDINGS Paradigms More levels of hierarchy More work teams with more members Cultural, age, sex, gender, religious, and value differences Power struggles Sub- and counter organizational cultures Competition for scarce resources Impersonal communication media 1.7 CHANGING NATURE OF ORGANIZATIONS Shift from . . . hierarchical (tall) to decentralized (flat) structures climate of authority (control) to climate of coaching (support through performance feedback) analog to digital (computerized information technology) regional or national competition to global competition 1.8 REALITIES OF DIVERSE WORKFORCE “Diversity in the workplace encompasses a variety of personal and social bases of identity, including race-ethnicity, gender, age, socio-economic status, and country of origin.” 9 Diversity must be seen as a positive characteristic of the work environment 1.9 ETHICAL FRAMEWORKS AND ORGANIZATIONAL COMMUNICATION Must be defined within the unique culture of a particular organizational environment. “There is something inherently present in any modern organization that facilitates unethical or immoral conduct” 1.10 KREPS’ ETHICAL GUIDELINES Organization members should not intentionally deceive one another. (Trust) Organization members’ communication should not purposely harm any other organization member or members of the organization’s relevant environment. (Do No Harm) Organization members should be treated justly (Justice) 1.11 THREE IMPORTANT CONSTRUCTS Organizational Identification (process & product) – An active process by which individuals link themselves to elements (people, policies, products, services, customers, values) in the social scene. – Involves an individual’s sense of membership in and connection with an organization. Job Satisfaction – The degree to which employees feel fulfilled by their job and related experiences. – A pleasurable or positive emotional state from the appraisal of one’s job or experiences – Linked to absenteeism and turnover Communication Satisfaction – The degree to which employees feel that communication is appropriate and satisfies their need for information and work relationships 10 1.12 INTERNAL COMMUNICATION (WORKPLACE COMMUNICATION) Internal communication refers to the messages that are shared among members of an organization. It is usually concerned with work-related matters and provides the means for people to work together and cooperate with each other. Internal organizational communication practices (newsletters, presentations, strategic communications, work direction, performance reviews, and meetings) as well as externally directed communications (public, media, inter-organizational). 1.13 EXTERNAL COMMUNICATION (PUBLIC COMMUNICATION) An organization does not exist in isolation. It is an element in the structure of society and must adapt to social needs and changes in order to survive. It may want to change its image in the community, for example, advertise a new product. Organizations establish external communication channels to gather information from the world outside it and to provide this world with information about the organization. 1.14 RESEARCH INTO ORGANIZATIONATIONAL COMMUNICATION The purpose of research in organizational communication is to help organizations operate at maximum efficiency. Areas of research include: theoretical approaches to organizational communication; the structure of organizational communication; and the functions of organizational communication 11 Why are these areas important to the management of organization? 1.15 THEORETICAL APPROACHES TO ORGANIZATIONATIONAL COMMUNICATION 1.15.1 Classical Approach It started during the Industrial Revolution in the 19th and early 20th centuries when assembly-line technologies developed for factories were applied to other types of organizations as well. It emphasizes the importance of efficient management and high productivity. In the classical approach, communication functions mainly to establish managerial control, provide workers with job instructions and enable managers to gather information for planning. Communication flows from management to subordinates (top down) There is sharp distinction between private and work lives of employees. What happens at home in of no concern to management even if it has an effect on the employees work. It regards the organization as a machine, and the people as merely cogs who work in the machine. The role of the individual is not very important because, like part of the machine, any worker can be removed and be replaced without unduly disrupting the smooth running of the organization. 1.15.2 Human Resources Approach This approach developed during the 50s in response to the shortcomings of the human relations theory. According to this approach, workers are considered to be the sources of suggestions and ideas, and it is the management’s task to encourage people to contribute to the organization in diverse ways and thereby maximize productivity. It stresses participative decision making and effective employer-employee relations. It maintains that workers are more motivated, productive and independent, and more satisfied with their work when they are consulted about decisions that directly affect their work activities. The human resource school emphasizes genuine participation by all employees. Their ideas and suggestions are sought and encouraged and decision making is not limited to higher management only, but is encouraged at all levels of the organization. 12 Frequent communication is considered a necessity and it is the management’s task to arrange group discussions, develop skilled communication and leadership skills, and to motivate individuals towards the achievement of personal and organizational goals. 1.15.3 Systems Approach This approach considers the organization as a whole (system) made up of separate parts, each of which has a relationship to all the other parts and to the environment in which it exists. All the systems parts are dependent on one another in the performance of organizational activities. Any change in one component inevitably affects the other system components. All the parts of the system must therefore coordinate their activities and functions in order to remain in a state of equilibrium or balance. Internal communication channels have to be effective and provide relevant information. External communication channels must allow a free, open and rapid flow of information between the organization and the society in which it exists. Feedback channels have to be established to gather information that will allow it to adapt to the needs and changes in the environment. Communication is crucial to the organization because it is a unifying element that allows the system to function efficiently, achieve its goals and remain in a state of balance. 1.15.4 Cultural Approach Culture defined……..“a system of shared values (what is important) and beliefs (how things work) that interact with the company’s people, organizational structures, and control systems to produce to produce behavioural norms (the way we do things around here)” (Utall, 1983:66). Every organization has its own cultural identity because every organization has a particular way of doing what it does and its own way of talking about what it is doing. There are three components that contribute to the culture of the organization: o Corporate identity; o Corporate image; and o Corporate personality 13 Corporate identity: the way in which an organization chooses to present itself to the public through, for example, letterheads, colour schemes, logos and so on. Corporate image: the way in which the public perceives the organization. Corporate personality: comprises all the characteristics that contribute to the uniqueness of an organization, such as original ideas that individual members contribute and the slogans that characterize the organization. It is important for organizations to make their employees aware of the organizational culture because they become aware of how they are expected to behave. An understanding of culture can also help bridge cultural gaps that exist in organizations. The organization should strive to create a common culture (shared values and beliefs) to which all employees adapt. The culture then has a unifying function in that it is the basis for collective sensemaking activities by people in the organization – “the way we do things here” 14 STUDY UNIT 2 2.1 ORGANIZATIONAL STRUCTURE The framework, typically hierarchical, within which an organization arranges its lines of authority and communications, and allocates rights and duties. Organizational structure determines the manner and extent to which roles, power, and responsibilities are delegated, controlled, and coordinated, and how information flows between levels of management. A structure depends entirely on the organization's objectives and the strategy chosen to achieve them. In a centralized structure, the decision making power is concentrated in the top layer of the management and tight control is exercised over departments and divisions. In a decentralized structure, the decision making power is distributed and the departments and divisions have varying degrees of autonomy. An organizational chart illustrates the organizational structure. In this context, structure refers to the components of the communication system in an organization and includes channels of communication through which information is sent and received, the hierarchies in the organization, and the flow of information in the organization and communication networks. There are tall structures for carefully controlled flow of information and flat structures which allow for much less control. The term organizational structure refers to the formally prescribed pattern of relationships existing between various units of an organization. An organization’s structure typically is described using a diagram, known as an organizational chart. Such diagrams provide graphic representations of the formal pattern of communication in an organization. An organization chart may be likened to an X-ray showing the organization’s skeleton, an outline of the planned, formal connections between individuals in various departments or units. An organizational chart consists of various boxes and the lines connecting them. The lines connecting the boxes in the organizational chart are lines of authority showing who must answer to whom – that is, reporting relationships. Each person is responsible to (or answers to) the person at the next higher level to which he or she is connected. At the same time, people are also responsible for (or give orders to) those 15 who are immediately below them. The boxes and lines form a blueprint of an organization showing not only what people have to do (jobs performed including appropriate job titles), but with whom they have to communicate for the organization to operate properly. 2.2 DIRECTIONS OF COMMUNICATION / COMMUNICATION CHANNELS The structure of an organization should provide for communication in three distinct directions: downward, upward, and horizontal. These three directions establish the framework within which communication in an organization takes place. Channels of information in an organization can be described by distinguishing between the formal and informal flow of information. 2.2.1 Formal Channels These are official channels through which communication is exchanged. Formal channels may be written or oral and include personal instructions, interviews, training programmes, letters, memoranda and oral reports. 2.2.2 Informal Channels Information is also exchanged unofficially during conversations among employees. Such information may be work-related or may be concerned with social and personal matters. Informal channels may at times prove to be more effective means of communication than the organization’s formal channels. 2.3 HIERARCHIES (BUREAUCRACY) The principle of hierarchy states that every member of an organization has one individual in a position above him or her from whom he or she receives directions. This boss also has a boss who in turn also has a boss; the organizational hierarchy is so structured as to form a king of pyramid, with authority and power concentrated at the top. It does not necessarily indicate the locus of power, but only shows the positions of individuals and their authority. 16 The hierarchical structure of an organization is often depicted in an organizational chart, a linear diagram showing the status of different members of an organization and the relationship among them. The organizational chart is also called an ‘organogram’. While the chart cannot capture the total dynamics of human interaction, it nevertheless provides much information in a useful way, partly because the organization usually has come to consider relationships in terms of the dimensions of the chart. One of its purposes is to provide stability, regularity, and predictability to the organization. This is one of the reasons why, in a society such as South Africa , where rapid social, political and economic change are imperatives on the national agenda, organizations are finding change difficult and demanding. Example of a structure: Leader of Company Manager Research Manager Planning Deputy Research Deputy Planning Assistant Assistant Research Planning Worker Worker Sweeper Worker Worker Messenger Figure 2.1: Example of a structure 17 The presence of the structure in an organization makes human behaviour different from that occurring in other contexts. The hierarchy affects the interpersonal relations of its employees and controls the channels of communication within the organization. The hierarchy also controls the frequency and quality of daily interactions among people. 2.4 FLOW OF INFORMATION AND EFFECT OF STRUCTURE ON COMMUNICATION The flow of information refers to the direction in which messages travel in the organization. How does the structure affect communication behaviour? Generally, the organizational structure limits and guides communication flows. Knowing the structure of an organization (from its chart or organogram) can help predict a great deal about the nature of the communication flows within it. 2.4.1 Downward Communication This is communication from higher levels of the hierarchy to the lower levels. These are more frequent that other forms of communication flows. Communication from superior to the subordinate takes place more easily than the other way round. Traditional views of the communication process in school organizations have been dominated by downward communication flows. Such flows transmit information from higher to lower levels of the school organization. School leaders, from central office administrators to building-level administrators, communicate downward to group members through speeches, messages in school bulletins, school board policy manuals, and school procedure handbooks. The downward flow of communication provides a channel for directives, instructions, and information to organizational members. However, much information gets lost as it is passed from one person to another. Moreover, the message can be distorted if it travels a great distance from its sender to the ultimate receiver down through the formal school organization hierarchy. Downward communication (manager to subordinate) has eight basic purposes: to describe the organization’s goals, philosophy and mission describe the organization’s ethical standpoint 18 describe general policies and procedures describe employee’s relationship with the organization/company instruct people on how to do a job give information on how one job is related to others being performed in the organization give people feedback on how successful previous jobs have been give departments and individuals feedback on their general performance 2.4.1.1 Barriers to effective downward communication managers are not sure what type of messages to pass downwards managers are not sure how much information to pass downwards organizations have problems with functional literacy of their staff too much information is sent down NB: Functional literacy refers to the person’s ability to read and prepare the messages necessary for a specific job. Messages that enable managers to function as managers for example managers must be able to: read a long complex financial report containing graphics prepare a monthly report prepare letters and memoranda in the right style and tone prepare and deliver short, persuasive talks to customers talk on the phone 2.4.2 Upward Communication In a school organization, this refers to communication that travels from staff member to leader. This is necessary not only to determine if staff members have understood information sent downward but also to meet the ego needs of staff. Upward communication refers to messages sent from the lower levels of the hierarchy to the upper levels, for example, from worker to supervisor, to manager. It is usually related concerned with job-related activities, what needs to be done, solving problems, making suggestions, measuring success and improving morale. 19 In short, the upward flow of communication in a school organization is intended to provide channels for the feedback of information up the school hierarchy. Some deterrents may prevent a good return flow, but there are ways to promote more effective administrator-staff communications. 2.4.2.1 Basic purposes feedback to management on worker morale feedback on progress of tasks to receive suggestions from staff to receive proposals from staff 2.4.2.2 Types of messages in upward communication oral and written reports memoranda proposals spoken and written suggestions 2.4.3 Lateral/Horizontal or Sideways Communication Lateral communication refers to messages between equals – manager to manager, worker to worker (people at the same level of the hierarchy). Horizontal flows of communication are more frequent than vertical flows. This is because Individuals communicate more openly and effectively with their equals than with their superiors. Upward and downward communication flows generally follow the formal hierarchy within the school organization. However, greater size and complexity of organizations increase the need for communication laterally or diagonally across the lines of the formal chain of command. This is referred to as horizontal communication. These communications are informational too, but in a different way than downward and upward communication. Here information is basically for coordination — to tie together activities within or across departments on a single school campus or within divisions in a school-wide organizational system. Horizontal communication falls into one of three categories: 20 1. Intradepartmental problem solving. These messages take place between members of the same department in a school or division in a school-wide organizational system and concern task accomplishment. 2. Interdepartmental coordination. Interdepartmental messages facilitate the accomplishment of joint projects or tasks in a school or divisions in a school-wide organizational system. 3. Staff advice to line departments. These messages often go from specialists in academic areas, finance, or computer service to campus-level administrators seeking help in these areas. In brief, horizontal communication flows exist to enhance coordination. This horizontal channel permits a lateral or diagonal flow of messages, enabling units to work with other units without having to follow rigidly up and down channels. Many school organizations build in horizontal communications in the form of task forces, committees, liaison personnel, or matrix structures to facilitate coordination. External communication flows between employees inside the organization and with a variety of stakeholders outside the organization. External stakeholders include other administrators external to the organization, parents, government officials, community residents, and so forth. Many organizations create formal departments, such as a public relations office, to coordinate their external communications. 2.4.3.1 Purpose of Lateral Communication helps the sharing of insights, methods and problems it coordinates the various activities of the organization enabling the various divisions to pool insights and expertise it can build worker morale and worker satisfaction 2.4.3.2 What Managements Needs to Decide who is to be informed of which department’s activities the amount of detail to be reported 21 the medium to be used for this type of communication 2.4.3.3 Barriers to Lateral Communication rivalry between departments means that they withhold information from each other departments become very specialized and people from other departments cannot understand their technical terms departments become isolated and staff are not motivated to communicate with other departments departments build their own small empires, reluctant to share their knowledge and resources with other departments Organizational structure influences communication patterns within an organization. Communications flow in three directions—downward, upward, and horizontally. Downward communication consists of policies, rules, and procedures that flow from top administration to lower levels. Upward communication consists of the flow of performance reports, grievances, and other information from lower to higher levels. Horizontal communication is essentially coordinative and occurs between departments or divisions on the same level. External communication flows between employees inside the organization and a variety of stakeholders outside the organization. 2.4.4 Diagonal Communication This type of communication occurs between employees in a different section and where one of the workers involved is on a higher level in the organization. For example, when a bank manager at the head office converses with a teller in a branch of the bank. 2.5 THE INFORMAL COMMUNICATION OR ‘GRAPEVINE’ Sometimes staff in an organization finds that the prescribed patterns of communication do not give them the information they want. They will then establish their own informal communication system. This system 22 is common when people work closely together. The grapevine conveys information about people and their attitudes and relationships. It also carries interpretations of events, predictions about the organization moves, people’s values and needs. 2.5.1 Major functions of the ‘grapevine’ it serves as a barometer regarding the organization and gives vital feedback to management it is most active when there are great changes in the organization it helps members of an organization to make sense of what is going on as messages travel through the ‘grapevine’, management’s messages are translated into words that make sense to workers 2.5.2 Attributes to the ‘grapevine’ There are three specific attributes of the grapevine that make it important and useful: it is fast it is accurate: 75% – 90% accuracy for non-controversial information it carries a great deal of information, information that would not fit in the formal channels of communication Organizing, the process of structuring human and physical resources in order to accomplish organizational objectives, involves dividing tasks into jobs, specifying the appropriate department for each job, determining the optimum number of jobs in each department, and delegating authority within and among departments. The framework of jobs and departments that make up any organization must be directed toward achieving the organization’s objectives. 2.6 JOB SPECIALIZATION As a general rule, specialization increases worker productivity and efficiency. On the other hand, delegating jobs increases the need for managerial control and coordination. 23 Specialization has its own set of problems; it can result in workers performing the same tasks over and over again. A point can be reached where the degree of specialization so narrows a job’s scope that the worker finds little joy or satisfaction in it. Signs of overspecialization include workers’ loss of interest, lowered morale, increasing error rate, and reduction in service and product quality. One solution to this problem is to modify jobs so that teams can perform them. Some establishments use teams regularly throughout the organization; others use teams more selectively. Teams can be directed by a manager or can be self-managed. The idea behind self-managed work teams is for workers to become their own managers, which increases their self-reliance as well as develops a talent pool. 2.7 PATTERNS OF AUTHORITY The delegation of authority creates a chain of command, the formal channel that defines the lines of authority from the top to the bottom of an organization. The chain of command specifies a clear reporting relationship for each person in the organization and should be followed in both downward and upward communication. Following the chain of command enables each new employee, no matter what his or her position, to know exactly for whom and to whom he or she is responsible. When designing an organizational structure, managers must consider the distribution of authority. Defined simply, authority is the organizationally sanctioned right to make a decision. Authority can be distributed throughout an organization or held in the hands of a few select employees. Decentralization is the process of distributing authority throughout an organization. In a decentralized organization, an organization member has the right to make a decision without obtaining approval from a higher-level manager. Centralization is the retention of decision-making authority by a high-level manager. 24 Decentralization has several advantages. Managers are encouraged to develop decision-making skills, which help them advance in their careers. The autonomy afforded by this style of operation also increases job satisfaction and motivation. When employees are encouraged to perform well, the profitability of the organization increases. 2.8 SPAN OF CONTROL Span of control refers to the number of people who report to one manager or supervisor. A wide span of control results in a flat organization— that is, a large number of employees reporting to one supervisor. A narrow span of control results in a tall organization, in which a small number of employees report to a supervisor, necessitating a larger number of supervisors. The following factors determine the most appropriate span of control: task similarity, training and professionalism, task certainty, frequency of interaction, task integration, and physical dispersion. When a large number of employees perform similar tasks, the span of control can be increased. When the employees perform very different tasks, the supervisor must give each subordinate more in individual attention in order to keep in touch with the different types of tasks; this requires a narrower span of control. Task certainty refers to the predictability of a task. Routine tasks allow management to devise standard procedures for subordinates to follow, minimizing questions about the job and widening the span of control. On the other hand, close supervision is called for when tasks are ambiguous and uncertainty is great. If the supervisor-subordinate relationship requires frequent interaction, the span of control must be narrow. If interaction is infrequent, the span of control can be wide. The ideal number of people that one person can supervise depends on a variety of factors: consistent with trends in organizational structure such as teams, quality circles, and employee empowerment. The 25 objective behind these trends is to develop a flatter, more responsive organizational structure in which employees can make decisions without going through several levels of management. 2.9 THE PROS AND CONS OF FUNCTIONAL ORGANIZATION DESIGN The most important strength of a functional organizational design is efficiency. The performance of common tasks allows for work specialization, which increases overall productivity. Workers develop specialized skills and knowledge more rapidly. Training is easier because of the similarity of tasks and the resulting opportunities for inexperienced workers to learn from experienced workers. This helps new employees quickly learn the kinds of behavior that lead to success and promotion. Coordination of activities within functional departments is easier than in more broadly based organizations. A functional organization fosters efficiency, teamwork, and coordination of activities within individual units. However, the functional organization’s most important strength is also the source of its greatestshortcoming. 2.10 MEETINGS AND COMMITTEES An organizational chart is useful in identifying the formal reporting and authority relationships. However, it is not of much help in coordinating administrative units at the department and sub-department level. Diversity means the organization must respond to a workforce that is heterogeneous sexually, racially, and chronologically; innovation and conflict/communication issues; and different styles of interaction, dress, presentation, and physical appearance. Flexibility in the modern hotel organization means assuring that systems, processes, and people can respond differently to different situations; fewer detailed rules and procedures; greater autonomy and encouragement of initiative; customizing employment relationships to include telecommuting and job-sharing; and lifetime employability rather than lifetime employment. 26 The four basic components of organizational structure include job specialization, departmentalization, patterns of authority, and span of control. Job specialization includes increased worker productivity and efficiency, but it increases the need for managerial control and coordination. Work teams can be used to alleviate the routine caused by job specialization. A similar concept, the quality circle, can also enhance employee productivity. The level of coordination and communication between departments can be increased by the activities of committees. Successful staffing depends on providing adequate job descriptions, including job specifications, as well as realizing that job descriptions must be flexible. In some cases, it becomes necessary to redesign jobs; this can involve job rotation, job enlargement, job enrichment, and flextime. Employees must be properly trained; effective training includes problem solving, problem analysis, quality measurement, feedback, and team building. Successful managers enjoy certain common characteristics including providing clear direction, feedback, and recognition; encouraging open communication and innovation; and establishing ongoing controls. 27 STUDY UNIT 3 3.1 COMMUNICATION NETWORKS Flows of communication can be combined into patterns called communication networks. These networks are interconnected by communication channels. A communication network is the interaction pattern between and among group members. A network creates structure for the group because it controls who can and should talk to whom. Groups generally develop two types of communication networks: centralized and decentralized. Decentralized networks allow each group member to talk to every other group member without restrictions. An open, all-channel or decentralized network is best used for group discussions, decision making, and problem solving. The all-channel network tends to be fast and accurate compared with the centralized network such as the chain or Y-pattern networks. Figure 3.1: Communication networks 28 3.2 TYPES OF COMMUNICATION NETWORKS Wheel: In this, all communication flows through one person who generally happens to be the group leader. Y-Pattern: The y pattern is slightly less centralized –two persons are closer to the centre of the network. Chain: The chain gives a flow of information among members, although the people are at the end of the chain. Circle: Here, each person can communicate with two others located on both of his sides. All Channel (Star): This pattern is more decentralized and, allows a free flow of information among all group members. 3.2.1 The Circle Figure 3.2: Circle communication network has no leader, all members have the same authority each member communicates with two members on either side 29 communication is limited 3.2.2 The Wheel Figure 3.3: the wheel network has a central leader who sends and receives messages from all the members all messages go through the leader it has rapid performance of tasks but the error rate is high because two way communication is discouraged the leader suffers from communication overload 30 3.2.3 The Y-Channel Figure 3.4: The Y-channel there is also a clear leader, third person from bottom second person from bottom plays the secondary leadership role who can send and receive messages from two others the remaining three members are restricted to communicating with only one other person 31 3.2.4 The Chain Figure 3.5: The Chain network it is similar to the circle except that the members on the ends communicates with only one person each the middle position is more leader-like than any of the other positions 32 3.2.5 The All-channel Figure: 3.6: The all-Chanel network the all-channel or star pattern is like a circle in that all members re equal and all have exactly the same amount of power to influence others each member may communicate with any other member there’s all member participation and is more likely to solve any problem requiring the pooling of information held by network members information and communication management becomes more difficult Awareness of the potential networks in an organization provides insight into what type of information is likely to be received by which people. In a University, for example, policy decisions made by the senate about course curricular will be networked among deans of faculties and department heads (central figures), but not among the rest of the university staff (peripheral figures). 33 Current research into communication networks examines the impact of computer technology in organizations as computers increasingly perform essential information processing functions for all employees at all levels of the organizations. 3.3 INDIVIDUAL COMMUNICATION ROLES IN AN ORGANIZATION Certain individuals play special roles in the flow of organizational messages. 3.3.1 Gatekeepers regulate the flow of information decide what information will be sent to other members of the network it can prevent information overload by filtering and screening messages 3.3.2 Liaisons (bridge) form links between various groups receive more feedback and have more opportunities to deal with others in their jobs 3.3.3 Opinion Leaders have greater access to external and expert sources of information, and their function is to bring the group into touch with the relevant environment they apply the two step flow model of communication 3.3.4 Cosmopolites they give information to surrounding groups or other businesses they bring vital information to the network about the activities of the environment within which the organization works 34 3.3.5 The isolated works on her/his own separated from the group they run the risk of being not able to work properly 35 STUDY UNIT 4 4.1 FUNCTIONS OF ORGANIZATIONAL COMMUNICATION This is concerned with the purposes that communication serves and its effects on people and activities in the organization. 4.1.1 The Informative Function provision of information to ensure the efficient operation of the organization management and employees need accurate, timely and well-organized information to enable them to do their work efficiently, make decisions and resolve conflicts organizations must also obtain information in order to adapt to environmental changes regular meetings enable people to exchange information about each area of the organization, with a view to directing and co-coordinating behaviour towards implementing organizational changes 4.1.2 The Regulatory Function serves to control and regulate the activities of the organization to ensure its successful operation manuals, policies, memoranda, rules and instructions constitute a set of guidelines for the management of the organization 4.1.3 The Integrative Function is used to achieve organizational unity and cohesion by creating identity in the organization well defined goals and tasks to facilitate the assimilation of new members, integrative messages are used to coordinate the work schedule of individuals, groups and departments, thereby eliminating wasted time and efforts 36 4.1.4 The Persuasive Function the way communication influences members of an organization managers have discovered that persuasion is often more effective than authoritarian methods to gain employees’ cooperation similarly, employees may use persuasion when, for instance, requesting an increase in salary 4.2 CORPORATE COMMUNICATION These are activities undertaken by an organization to communicate internally with employees and externally with existing and prospective customers and the wider public. Sometimes it is used to refer principally to external communication and sometimes to internal communication, but strictly speaking, it covers both. The term implies an emphasis on promoting a sense of corporate identity and presenting a consistent and coherent corporate image. Organizations can strategically communicate to their audiences through public relations and advertising. This may involve an employee newsletter or video, crisis management with the news media, special events planning, building product value, and communicating with stakeholders, clients and donors. 4.2.1 INTERNAL COMMUNICATION Internal defined as all kinds of interaction that takes place between members of one big or small organization. Research surveys consistently show one that poor workplace communication is a major source of employee dissatisfaction. The repercussions of this include not just low employee morale, Employee productivity suffers, along with a range of other business performance indicators. Communication should therefore satisfy key employee needs before they can be engaged and highly productive. Internal communication may be looked at from different perspectives, formal or informal, from employer to workers or from workers to the employer 37 STUDY UNIT 5 5.1 ORGANIZATIONATIONAL CULTURE A single definition of organizational culture has proven to be very elusive. No one definition of organizational culture has emerged in the literature. One of the issues involving culture is that it is defined both in terms of its causes and effect. For example, these are the two ways in which cultures often defined. 1. Outcomes- Defining culture as a manifest pattern of behavior- Many people use the term culture to describe patterns of cross individual behavioral consistency For example, when people say that culture is “The way we do things around here,” they are defining consistent way is in which people perform tasks, solve problems, resolve conflicts, treat customers, and treat employees. 2. Process- Defining culture as a set of mechanisms creating cross individual behavioral consistencyIn this case culture is defined as the informal values, norms, and beliefs that control how individuals and groups in an organization interact with each other and with people outside the organization. Both of these approaches are relevant to understanding culture. It is important to know on what types of behavior culture has greatest impact (outcomes) and how culture works to control the behavior of organizational members. Organizational culture is a pattern of shared basic assumptions that the group learned as it solved its problems of external adaptation and internal integration, that has worked well enough to be considered valid and, therefore, to be taught to new members as the correct way to perceive, think, and feel in relation to those problems. 5.2 EXPLORING ORGANIZATIONAL CULTURE Attempts to define organizational culture have adopted a number of different approaches. Some focus on manifestations – the heroes and villains, rites, rituals, myths and legends that populate organizations. Culture is also socially constructed and reflects meanings that are constituted in interaction and that form commonly accepted definitions of the situation. 38 Culture is symbolic and is described by telling stories about how we feel about the organization. A symbol stands for something more than itself and can be many things, but the point is that a symbol is invested with meaning by us and expresses forms of understanding derived from our past collective experiences. The sociological view is that organizations exist in the minds of the members. Stories about culture show how it acts as a sense - making device. Culture is unifying and refers to the processes that bind the organization together. Culture is then consensual and not conflictual. The idea of corporate culture reinforces the unifying strengths of central goals and creates a sense of common responsibility. Culture is holistic and refers to the essence – the reality of the organization; what it is like to work there, how people deal with each other and what behaviours are expected. All of the above elements are interlocking; culture is rooted deep in unconscious sources but is represented in superficial practices and behaviour codes. Because organizations are social organizationms and not mechanisms, the whole is present in the parts and symbolic events become microcosms of the whole. 5.3 CLASSIFYING CULTURES One way of exploring cultures is to classify them into types. 1. Role Cultures – are highly formalized, bound with regulations and paperwork and authority and hierarchy dominate relations. 2. Task Cultures – are the opposite, the preserve a strong sense of the basic mission of the organization and teamwork is the basis on which jobs are designed. 3. Power Cultures – have a single power source, which may be an individual or a corporate group. Control of rewards is a major source of power. 5.4 FUNCTIONS OF ORGANIZATIONAL CULTURE 1. Behavioral control 2. Encourages stability 3. Provides source of identity 39 5.5 DRAW BACKS OF CULTURE 1. Barrier to change and improvement 2. Barrier to diversity 3. Barrier to cross departmental and cross organizational cooperation 4. Barrier to mergers and acquisitions Corporate culture is the personality of the organization: the shared beliefs, values and behaviours of the group. It is symbolic, holistic, and unifying, stable, and difficult to change. It is important to remember that the corporate culture is not the ideals, vision, and mission laid out in the corporate marketing materials. Rather, it is expressed in the day-to-day practices, communications, and beliefs. According to Borgatti (1996) a strong culture: Is internally consistent Is widely shared, and Makes it clear what appropriate behavior is. Whenever human beings gather and particularly when individuals with a common purpose begin working together, work strategies and thinking processes will develop and an organizational culture will be created. Put more simply, corporate culture is the way things get done in an organization. It is what drives action in the organization, guiding how employees think, act and feel. It is the systematic set of assumptions that define day-to-day working behaviour. “Culture can be described in a circular fashion where philosophy expresses values; values are manifest in behavior; and behavior gives meaning to the underlying philosophy. Philosophy, values, and behavior describe an organization’s culture and culture is the glue that holds the organization together.” (DeWitt, 2001). According to BOLA (2001) culture is the shared beliefs, values and norms of a group and it includes: the way work is organized and experienced how authority exercised and distributed how people are and feel rewarded, organized and controlled the values and work orientation of staff 40 the degree of formalization, standardization and control through systems there is/should be the value placed on planning, analysis, logic, fairness etc how much initiative, risk-taking, scope for individuality and expression is given rules and expectations about such things as informality in interpersonal relations, dress, personal eccentricity etc differential status emphasis given to rules, procedures, specifications of performance and results, team or individual working In the beginning corporate culture is shaped by the leaders and by the purpose for with the company has been created. It then develops within the constraints of the environment, technology, values of the leadership, and performance expectations. “The initial culture is altered by the design variables of the company, experiences of the company, management’s leadership style, the structure of the company, the nature of the tasks of the groups, the way decisions are made, and the size of the company. In addition, the developing culture is affected by the internal integrity of the company, the climate, and how well the company is competing in the marketplace, its effectiveness. 5.6 WHY IS IT IMPORTANT TO UNDERSTAND THE CORPORATE CULTURE? Corporate culture is a hidden mechanism of coordination directing each individual towards the common goal. The goal and the ways of achieving the goal cannot be changed without understanding key attractors and drivers in the culture. The causes of many profitability and responsiveness issues in corporations are not found in the structure, in the leadership, or in the employees. The problems are found in the cultures and sub-cultures of the organization. 5.6.1 Understanding The Culture of An Organization Facilitates: Hiring employees that will succeed in the organization (lowering recruitment, development, and human resource maintenance and management costs). o “the culture of an organization affects the type of people employed, their career aspirations, their educational backgrounds, their status in society.” (BOLA, 2001) o “the only trustworthy predictor of on-the-job success is how closely an individual’s work habits match the organizational culture…” (Giles, 2000) 41 Creating policies and assignments to increase profitability and respond to market demands. Having a firm grasp of a company’s culture and its nuances gives an executive the edge. o “New policies and assignments should consider the organizational culture and should be communicated in a manner congruent to the existing work strategies and beliefs. Learning how to communicate to the above listed tendencies can give an executive enormous power. “(Giles, 2000) o “If the organization wants to maximize its ability to attain its strategic objectives, it must understand if the prevailing culture supports and drives the actions necessary to achieve its strategic goals.” (Hagberg & Heifetz, 2000) Making significant changes to the corporation in response to real threats to its continued existence. o “Understanding and assessing your organization's culture can mean the difference between success and failure in today's fast changing business environment” (Hagberg & Heifetz, 2000) o “Many companies have turned themselves around, converting imminent bankruptcy into prosperity. Some did it through financial gimmickry, but the ones who have become stars did it by changing their own culture.” (Toolpack, 2001) o “The power of cultural change is strong - strong enough to turn an aging dinosaur into a state-of-the-art profit-maker… Because people working in different cultures act and perform differently, changing the culture can allow everyone to perform more effectively and constructively.” (Toolpack, 2001) Facilitating mergers, joint ventures, and acquisitions. o Being able to merge and reinvent corporate cultures plays a critical role in national and international takeovers, joint ventures and mergers. If the cultures cannot be merged or reinvented then the business will fail. (Wilms, Zell, Kimura and Cuneo, 1994) Decisions to form joint ventures are made on economic grounds. Their failure to succeed relates to the key noneconomic factor, the corporate cultures involved. Increasing profitability and growth. o Understanding, shaping, nurturing, and proclaiming cultural aspects can increase corporate profitability and growth. “Companies that display specific facets of corporate culture grow 10 times faster than companies that don't. The average net sales growth for 42 so-called high-culture companies is 141 percent, compared with 9 percent growth at "lowculture" companies” (Kosan, 2001) 5.6.2 Can Corporate Cultures be Changed? Changing a corporate culture is a complex, long-term, and expensive undertaking that will either revitalize or kill the company. It should not be undertaken lightly. Culture change must be driven by a powerful, transformational reason: The competition is succeeding and you are not: Your company will fail if it does not change. “For change to be successful there needs to be a compelling reason to change, a clear vision of what the change will be, and, a sensible first step.” (Tribus, 2001) Tan (2001) outlines four instances where corporate cultures need to be changed: 1. When two or more companies of varied backgrounds merge and continuous conflict among people of different groups are undermining their performance; 2. When an organization has been around for a long time and its way of working are so entrenched that it is hindering the company from adapting to changes and competing in the marketplace; 3. When a company moves into a totally different industry or areas of business and its current ways of doing things are threatening the survival of the organization; and 4. When a company whose staff is so used to work under the favourable conditions of economic boom but could not adapt to the challenges posed by an economic slowdown. Corporate culture cannot be changed through changing a policy or issuing an edict. It can also not be accomplished overnight. “The only way to change organizational culture overnight is to fire everyone and hire a new staff with the working behaviors you now want.” (Giles, 2000) Culture change requires consistency of message, goal, direction, and leadership to succeed. To change a culture one needs to change the images and values, the evaluative, and the social elements of the organization. This requires a strong leader who knows where they want the company to go, why they want it to go there, can articulate both these points, and who has the power to drive the change throughout the organization. This leader, in all the proponents of change in the organization, must consistently and obviously “model the behavior they want to see in others. If they do not send a consistent message and keep that message clear and dominant over time, cultural change may be seen as just another fad.” (Toolpack, 2001) 43 Given strong leadership, Bijur (2001) has identified the five aspects of a successful change. Values: values that drive the organization toward the realization of a shared vision. Motivation: understand what motivates people. Make them stakeholders in the change. Shared Ideas and Strategies: create an environment that enables the sharing of ideas and strategies and encourages change. Goals: clear and unambiguous goals, frequently communicated and discussed. Clear link between individual and corporate goals. Performance Ethic: a reward and recognition system that instills in the organization a performance ethic. 5.7 CULTURE AND SUCCESS Deal and Kennedy (1982) argue that culture is the single most important factor accounting for success or failure in organizations. They identified four key dimensions of culture: 1. Values – the beliefs that lie at the heart of the corporate culture. 2. Heroes – the people who embody values. 3. Rites and rituals – routines of interaction that have strong symbolic qualities. 4. The culture network – the informal communication system or hidden hierarchy of power in the organization. 5.8 FORMAL COMPONENTS OF ORGANIZATIONATIONAL CULTURE Component 1 2 Mission/Vision Policies Description The milestones to be reached Statements designed to be guidelines to bahavioural decision 3 Procedures Methods of providing specific guidelines 4 Rules Specific instructions for performing a task 5 State of Organizational Organization at young, growing, Development maturing, or mature stage of development Table 5.1: Formal components of organizational culture Effect on Organizational Culture Could be unrealistic Policies, if not drafted properly can provide leeway Can facilitate or create obstacles in smooth functioning Rules could be a means or an end in themselves State of organizational development has direct impact on work culture 44 5.9 ORGANIZATIONATIONAL CLIMATE It is something that is sensed rather than something that is recognized. Organizational climate is a set if attributes which can be perceived about a particular organization and or its subsystem, and that may be induced from the way the organization and /or its subsystems deal with their members and environments. Organizational climate is the combined perceptions of individuals that are useful in differentiating organizations according to their procedure and practices. Organizational climate is the collective view of the people within the organization as to the nature of the environment in which they work. 5.10 CLIMATE IN ORGANIZATIONS Unlike culture, the climate in an organization changes quickly and is easier to describe It describes the present trend of opinions, attitudes or feelings in an organization, and it changes quickly as the environment changes. The changes are brought about by three things: o Styles of management; o Pressure of work; and o Available resources. The climate in a group may change rapidly from a supportive and positive one to a defensive and negative one. Managers and staff therefore need to be constantly sensitive to the climate in the group or section. 5.11 CULTURE AND CLIMATE COMPARED Culture Lasts a long time Develops slowly Depends on a known past of some length of time Climate May change quickly Develops and changes quickly Does not depend on known past 45 Operates on a high level of unconscious assumptions Collective, therefore individual variations are buried in the culture Not likely to be affected by short-term changes Deeply buried in people’s minds, therefore relatively invisible and hard to get at Operates at a level of attitudes and values Unique characteristics of members can be found Respond to short term changes Awareness more accessible behaviour more visible and Table 5.2 Culture and climate compared 46 STUDY UNIT 6 6.1 ORGANIZATIONATIONAL CHANGE Organizational change is often stimulated by a major external force, for example, substantial cuts in funding, decreased market opportunity and dramatic increases in services. Typically, organizations undertake technical, structural or strategic shifts in the organization to evolve to a different level in their life cycle, for example changing from a highly reactive organization to a more stable proactive environment. 6.2 WHAT IS CHANGE MANAGEMENT Change management is a set of processes employed to ensure that significant changes are implemented in a controlled and systematic manner. One of the goals of change management is the alignment of people and culture with strategic shifts in the organization, to overcome resistance to change in order to increase engagement and the achievement of the organization’s goal for effective transformation. Achieving sustainable change begins with a clear understanding of the current state of the organization, followed by the implementation of appropriate and targeted strategies. The focus of change management is on the outcome the change will produce – the new arrangements that must be understood. Change processes usually apply to a task and/or structural change, and can be either: 6.2.1 What Are The Differences Between Change And Transition? Change is a shift in the externals of any situation, for example, setting up a new program, restructuring a business, moving to new location, or a promotion. By contrast, transition is the mental and emotional transformation that people must undergo to relinquish old arrangements and embrace new ones William Bridges (2003:3) explains there are significant differences between change and transition. Change is the way things will be different, and transition is how you move people through the stages to make change work. Change is made up of events, while transition is an on-going process. Change is visible and tangible, while transition is a psychological process that takes place inside of people. Change can happen quickly, but 47 transition, like any organic process, has its own natural pace. Change is all about the outcome we are trying to achieve; transition is about how we'll get there and how we'll manage things while we are en route. Getting people through the transition is essential if the change is actually to work as planned. It is important to ensure that change management strategies are driven by the changes that need to occur, but not to lose focus on the more personal transition activities needed to ensure the success of the program. 6.2.2 Leading and Managing Change The implementation of any significant change process usually succeeds or fails because of the leadership of that change process. Management as a discipline focuses on processes and systems that keep the operations of the organization operating smoothly, while leadership engages people to create, adapt and meet the demands of the anticipated future. Management plays an essential part in making the changes happen; it empowers the ‘doing’. Leadership inspires the transition, it is what energizes people and sustains a change in behaviour and approach. Leadership engages the hearts and minds of staff. 6.3 WHY IS ORGANIZATIONATIONAL CHANGE DIFFICULT TO ACCOMPLISH? McKinsey & Co (2006), Shaffer & Thomson (1998), and Corporate Leadership Council (CLC, 2001) site studies of hundreds of companies that entered significant change programs. Their research indicates that 60% -70% of significant and complex change management programs grind to a halt because of their failure to produce the hoped-for results. The research identified that failure is not necessarily due to poor technical solutions; it was the result of poor project planning and change management. Generally speaking, organizationations face strong resistance to change. People are afraid of the unknown, many think things are fine the way they are and do not understand the need for change. Recognizing the need to change, and acting on it, can be difficult decisions for leaders and managers to make. 48 Managers are taught to manage processes and resources effectively. Change however requires the ‘management’ of people’s anxiety and confusion, or conversely their excitement and engagement. These are emotions that most managers find difficult to deal with or address. Managing the change process and transition emotions is fundamental to the success of a change oriented project. Many people are inherently cynical about change, many doubt there are effective means to accomplish major organizational change. Often there are conflicting goals within the organization, for example, increasing resources to accomplish goals yet cutting costs to remain viable. Organizational change often goes against the very 7 values held dear by people, that is, the change may go against how they believe things should be done or diminish ownership of ‘how we do things around here’. Resistance is a natural defence mechanism for those ‘losing’ something. The closer we are to something or someone, the greater the grief or loss. Reasons for resisting change are varied. The reasons could include perceived loss of security, money, pride or satisfaction, friends, freedom, responsibility, authority, good working conditions, status, lack of respect, objectionable manner, negative attitude, personal criticism, not having had input, bad timing, challenge to authority or second hand information. 6.4 KOTTER’S EIGHT-STAGE PROCESS FOR CREATING MAJOR CHANGE Establishing a Sense of Urgency o Help others see the need for change and the importance of acting immediately o Examining the market and competitive realities (SWOT matrix) o Identifying and discussing (potential) crises Creating the Guiding Coalition o Make sure there is a powerful group guiding the change, one with leadership skills, bias for action, credibility, communication skills and authority and analytical skills o Building teams and forming influential guiding coalitions o Assemble a group powerful enough to lead & influence the change o Getting the group to work together like a team 49 Developing a Vision and Strategy o Clarify how the future will be different from the past, and how you will make the future a reality o Creating a vision to help direct the change effort o Getting the vision and strategy right (Vision building) o Developing strategies to achieve the vision Communicating the Change Vision o Make sure as many others as possible understand and accept the vision and the strategy o Using every vehicle possible to constantly communicate the new vision and strategies (Communication Strategy & Plan, Storytelling Tool) o Have the guiding coalition role model the behaviour expected of staff Empowering Broad-Based Action o Remove as many barriers as possible so that those who want to make the vision a reality can do so o Enabling others to act on the vision by getting rid of obstacles, encourage risk taking o Altering systems or structures that undermine the change vision Generating Short-Term Wins o Create some visible, unambiguous successes as soon as possible o Planning for and generating short term wins / improvements in performance o Creating those wins o Recognizing and rewarding those Consolidating Gains and Producing More Change o Press harder and faster after the first success o Not letting up, consolidating improvements and sustain the momentum for change o Use increasing credibility to change all systems, structures and policies that don’t fit together and don’t fit the transformation effort o Hiring, promoting and developing people who can implement the change vision o Reinvigorating the process with new projects, themes and change agents 50 Anchoring New Approaches in the Culture o Hold on to the new ways of behaving, and make sure they succeed until they become a part of the very culture of the group o Creating better performance through customer and productivity oriented behaviour, more and better leadership, and more effective management o Articulating the connections between new behaviours and organizational success o Developing means to ensure leadership development and succession 51