CHAPTER SUMMARY – CHAPTER 16 What Is Motivation?  Define motivation.

 Explain the energy, direction, and persistence aspects of motivation. Motivation is the process by which a person’s efforts are energized, directed, and sustained towards attaining a goal. The energy element is a measure of intensity or drive. The effort needs to be channeled in a direction that benefits the organization. Finally, motivation includes a persistence dimension in that employees need to persist in putting forth effort to achieve goals. Early Theories of Motivation  Describe Maslow’s hierarchy of needs and how it can be used to motivate.  Discuss how Theory X and Theory Y managers approach motivation.  Describe Herzberg’s motivation-hygiene theory.  Explain Herzberg’s views of satisfaction and dissatisfaction. Maslow’s hierarchy of needs proposes that there are five need levels (physiological, safety, social, esteem, and self-actualization) arranged in a hierarchy. Once a need level has been generally satisfied, it no longer serves to motivate behavior. (See Exhibit 16-1.) According to McGregor, a Theory X manager assumes that people don’t like to work and must be threatened, forced, and directed to work. A Theory Y manager assumes that people like to work and exercise self-direction. Herzberg’s motivation-hygiene (twofactor) theory proposes that the hygiene factors (those associated with job context) keep people from being dissatisfied, but don’t motivate. The motivators (those job factors associated with job content) are the ones that motivate employees. (See Exhibit 16-2.) Herzberg viewed satisfaction and dissatisfaction as two separate concepts. (See Exhibit 16-3.) Those factors that led to job satisfaction and job dissatisfaction were separate and distinct. Contemporary Theories of Motivation  Describe the three needs McClelland proposed as being present in work settings.  Explain how goal-setting and reinforcement theories explain employee motivation.  Describe the job characteristics model as a way to design motivating jobs.  Discuss the motivation implications of equity theory.  Contrast distributive justice and procedural justice.  Explain the three key linkages in expectancy theory and their role in motivation. McClelland’s three needs were the need for achievement (the drive to excel, achieve, and succeed), the need for affiliation (the desire for friendly and close interpersonal relationships), and the need for power (the need to make others behave in a way they would not have behaved otherwise). Intention to work towards a goal is a major source of job motivation. Goal-setting theory says that specific goals increase performance and that difficult goals, when accepted, result in higher performance than do easy goals. (See Exhibit 165.) Reinforcement theory says that behavior is a function of its consequences. Behavior that is reinforced is likely to be repeated. The Job Characteristics Model (JCM) describes jobs in terms of five core job dimensions: skill variety, task identity, task significance, autonomy, and feedback. When these dimensions are designed into a job, positive personal and work outcomes will result. (See Exhibits 16-6 and 16-7.) Equity theory proposes that employees compare their outcomes/inputs ratio to others to see if there is equity. (See Exhibit 16-8.) If they perceive that inequity exists, they will do something about it. In addition, employee motivation is influenced significantly by relative rewards and absolute rewards. Distributive justice is the perceived fairness of the amount and allocation of rewards among individuals. Procedural justice is the perceived fairness of the process used to determine the distribution of rewards. Expectancy theory proposes that individual effort leads to individual performance which leads to organizational rewards which influence individual goals. (See Exhibit 16-9.) The theory proposes that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome. The three key

linkages are effort-performance (expectancy or the probability that a given amount of effort will lead to a certain level of performance); performance-reward (instrumentality or the degree to which the individual believes performing at that level is instrumental in attaining the desired outcome); and reward-goal (valence or attractiveness of the reward or how important that reward is to the person). Current Issues in Motivation  Describe the cross-cultural challenges of motivation.  Discuss the challenges managers face in motivating unique groups of workers.  Describe open-book management, employee recognition, pay-forperformance, and stock option programs. The cross-cultural challenges of motivation have to do with whether the motivation theories are appropriate for that culture. Who Are Leaders and What Is Leadership?  Define leaders and leadership.  Explain why managers should be leaders. A leader is someone who can influence others and who has managerial authority. Leadership is what leaders do – that is, the process of influencing a group to achieve goals. Ideally all managers should be leaders because leading is one of the four management functions. Early Leadership Theories  Discuss what research has shown about leadership traits.  Contrast the findings of the four behavioral leadership theories.  Explain the dual nature of a leader’s behavior. Trait theories of leadership looked for characteristics (traits) that could be used to differentiate leaders from non-leaders. It proved impossible to identify one set of traits that would always do this. However, there are seven traits associated with leadership (the process) including drive, the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and extraversion. (See Exhibit 17-1.) The University of Iowa studies identified three leadership styles: autocratic, democratic, and

Employees differ in their motivational requirements. Managers must deal with groups such as: a diverse workforce (the key is flexibility); professionals (the key is offering challenges and support); contingent workers (the key is opportunities for full-time work or education/training); and low-skilled, minimum wage workers (the key is using employee recognition programs). Open-book management is sharing financial information (opening up “the books”) so employees can see how their work affects the financials. Employee recognition programs are motivational programs consisting of personal attention and expressing appreciation for a job well done. Pay-for-performance programs are variable compensation plans that pay employees on the basis of some performance measure. Stock options are financial instruments that give employees the right to purchase shares of stock at a set price. CHAPTER SUMMARY – CHAPTER 17 laissez-faire. The Ohio State studies identified two leadership behaviors: consideration and initiating structure. The University of Michigan studies also identified two leadership behaviors: employeeoriented and production-oriented. The Managerial Grid assessed leaders on their concern for people and their concern for production. (See Exhibits 17-2 and 17-3.) As these behavioral studies showed, a leader’s behavior encompasses two dimensions: people and tasks. Contingency Theories of Leadership  Explain how Fiedler’s model of leadership is a contingency model.  Contrast situational leadership theory and the leader participation model.  Discuss how path-goal theory explains leadership. Fiedler’s contingency model of leadership proposed that effective group performance depended on properly matching the leader’s style of interacting with his or her followers (relationship oriented or task oriented) and the degree to which the situation allowed the leader to control and influence (leader-member relations, task structure, and position power). (See Exhibit 17-4.) Fiedler believed, however, that a leader’s style was fixed.

Situational leadership theory is a contingency theory that focuses on followers’ readiness. Successful leadership is achieved by selecting the right leadership style which is contingent on the followers’ readiness level. (See Exhibit 17-5.) The leader participation model related leadership behavior and participation to decision making. It uses a decision-tree approach to determine the best style of leadership. (See Exhibits 17-6 and 17-7.) Path-goal theory states that it’s the leader’s job to assist his or her followers in attaining their goals and to provide the direction or support needed to ensure that their goals are compatible with the overall group’s goals. To do this, leaders choose from four leadership behaviors: directive, supportive, participative, and achievement oriented. (See Exhibit 17-8.) Contemporary Views of Leadership  Differentiate between transactional and transformational leaders.  Describe charismatic and visionary leadership.  Discuss what team leadership involves. Transactional leadership describes how leaders lead primarily by using social exchanges (or transactions). Transformational leadership describes how leaders stimulate and inspire (transform) followers to achieve extraordinary outcomes. Charismatic leadership is a leader whose enthusiastic, self confident personality and actions What Is Control and Why Is It Important?  Define control.  Contrast the three approaches to designing control systems.  Discuss the reasons why control is important.  Explain the planning-controlling link. Controlling is the process of monitoring, comparing, and correcting work performance. The market control approach emphasizes the use of external market mechanisms to establish the control standards. The bureaucratic control approach emphasizes organizational authority and relies on administrative rules, regulations, procedures, and policies. The clan control approach uses shared values, norms, traditions, rituals, beliefs, and other aspects of the organization’s culture (the clan) to control employee behavior. (See Exhibit 18-1.)

(charisma) influence people to behave in certain ways. Visionary leadership is the ability to create and articulate a realistic, credible, and attractive vision of the future that improves upon the present situation. Team leadership is leading teams. There are four specific team leadership roles: coach, liaison with external constituencies, troubleshooter, and conflict manager. (See Exhibit 17-9.) Leadership Issues in the Twenty-First Century  Tell the five sources of a leader’s power.  Discuss the issues today’s leaders face.  Explain why leadership is sometimes irrelevant. The five sources of a leader’s power are legitimate (power because of position of authority), coercive (power to punish or control), reward (power to give positive benefits or rewards), expert (power based on expertise, special skills, or knowledge), and referent (power from desirable resources or personal traits). The main issues that leaders face today are developing trust (see Exhibit 17-10), providing ethical leadership, empowering employees, crosscultural leadership challenges (see Exhibit 17-11), gender differences in leadership (see Exhibit 1712), and the demise of the “celebrity” leader. Leadership is sometimes irrelevant because certain individual, job, or organizational variables can act as substitutes for leadership. CHAPTER SUMMARY – CHAPTER 18 Control is important for three reasons. It’s how managers know whether goals and plans are on target. It’s also beneficial for empowering employees. And it’s used to protect the organization and its assets. Planning and controlling are linked because through controlling, managers are able to determine whether the goals and plans established in the planning phase are actually being accomplished. (See Exhibit 18-2.) The Control Process  Describe the three steps in the control process.  Explain why what is measured is more critical than how it’s measured.  Explain the three courses of action managers can take in controlling. The three steps in the control process are measuring actual performance, comparing actual

performance to standards, and taking any necessary managerial action. (See Exhibits 18-3 and 18-7.) “What” is measured is more critical than “how” it’s measured since selecting the wrong criteria to measure can create serious problems. Also, people in the organization will attempt to excel at what is being measured. (See Exhibit 184.) The three possible courses of action include doing nothing, correcting actual performance (immediate corrective action or basic corrective action), or revising the standard. Controlling for Organizational Performance  Define organizational performance.  Describe the most frequently used measures of organizational performance. Organizational performance is the accumulated end results of all the organization’s work activities. The most frequently used measures of organizational performance include organizational productivity (overall output of goods or services produced divided by the inputs needed to generate that output), organizational effectiveness (how appropriate organizational goals are and how well the organization is achieving those goals), and industry rankings (see Exhibit 18-8), which are comparisons of companies within industries on various measures. Tools for Controlling Organizational Performance  Contrast feedforward, concurrent, and feedback controls.  Explain the types of financial and information controls managers can use.  Describe how balanced scorecards and benchmarking are used in controlling. Feedforward controls are controls that prevent anticipated problems since they’re used before the actual work activity. Concurrent controls are controls that are used while a work activity is in progress. Feedback controls are controls that are used after the actual work activity has been completed. (See Exhibit 18-9.) Managers can use the traditional financial controls including budgets and ratio analysis. (See Exhibit 18-10.) They could also use other financial controls such as economic value added and market value added. Information controls that

managers could use include a management information system and data and information security. A balanced scorecard is a performance measurement tool that looks at four areas that contribute to a company’s performance – financial, customers, internal processes, and people/innovation/growth assets. Benchmarking – the search for best practices – can be a useful control tool for identifying specific performance gaps and potential areas of improvement. Contemporary Issues in Control  Describe how managers may have to adjust controls for cross-cultural differences.  Discuss the types of workplace concerns managers face and how they can address those concerns.  Explain why control is important to customer interactions.  Explain what corporate governance is and how it’s changing. Because of differences in culture and the challenges associated with long-distance managing, managers may use more formal techniques and rely more on information technology. Another challenge is comparability of data. Three main workplace concerns face managers: workplace privacy, employee theft, and workplace violence. Managers need to monitor workplaces because of potential lost work productivity, to reduce the potential risk of being sued for creating a hostile work environment, and to ensure that company secrets aren’t being leaked. Employee theft and workplace violence can be deterred or reduced by approaching it from the perspective of feedforward, concurrent, and feedback controls. (See Exhibits 18-13 and 1815.) Control is important for customer interactions because organizations want to create long-term and mutually beneficial relationships with their customers. Corporate governance is the system used to govern a corporation so that the interests of corporate owners are protected. Two areas of corporate governance reform involve the role of the board of directors and the organization’s financial reporting. (See Exhibits 18-17 and 1818.) CHAPTER SUMMARY – CHAPTER 15

Understanding Groups  Define the different types of groups.  Describe the five stages of group development. Formal groups are work groups defined by the organization’s structure that have designated work assignments and specific tasks. (See Exhibit 15-1 for a list of formal groups.) Informal groups are social in nature. The five stages of group development (see Exhibit 15-2) are as follows: forming (joining the group and defining the group’s purpose, structure, and leadership), storming (intragroup conflict), norming (close relationships develop and the group becomes cohesive), performing (performing the task at hand), and adjourning (group prepares to disband). Explaining Work Group Behavior  Explain the major components that determine group performance and satisfaction.  Discuss how roles, norms, conformity, status systems, group size, and group cohesiveness influence group behavior.  Explain how group norms can both help and hurt an organization.  Define groupthink and social loafing.  Describe the relationships between group cohesiveness and productivity.  Discuss how conflict management influences group behavior.  Tell the advantages and disadvantages of group decision making. The major components that determine group performance and satisfaction (see Exhibit 15-3) are: the external conditions imposed on the group, group member resources, group structure, group processes, and group tasks. People play different roles in groups. These roles tend to either be task-oriented or member-oriented. Norms are standards or expectations that are accepted and shared by group members and dictate factors such as work output levels, absenteeism, promptness, and amount of socializing on the job. Conformity is the pressure felt by members to behave according to the group. A group’s status system has to do with its grading, position, or ranking of certain people or positions within the group. Smaller groups are faster at completing tasks, but larger groups get better results. Group cohesiveness

refers to the degree to which members are attracted to a group and share the group’s goals. Norms can help an organization because they can influence work expectations. However, that’s also the reason that norms can hurt an organization. Groupthink is when a group exerts extensive pressure on individuals to align their opinions to conform to others’ opinions. Social loafing is the tendency for an individual to expend less effort (loaf) when working in a group. When a highly cohesive group’s goals are aligned with organizational goals, it will experience a strong increase in productivity. However, if the group is not cohesive, it will experience only a moderate increase in productivity. If a highly cohesive group’s goals are not aligned with organizational goals, there’s a decrease in productivity. (See Exhibit 15-5.) Conflict is any perceived incompatible differences. Conflict and how it’s managed can influence group behavior. Relationship conflicts almost always are dysfunctional. Low levels of process conflict and low-to-moderate levels of task conflict can be functional. (See Exhibit 15-8.) When making decisions, groups tend to be more accurate and creative and have a higher degree of acceptance of the decision. However, groups are not as fast or efficient as individuals when making decisions. (See Exhibit 15-6.) Creating Effective Teams  Compare groups and teams.  Explain why teams have become so popular in organizations.  Describe the four most common types of teams.  List the characteristics of effective teams. Work teams are different from work groups. (See Exhibit 15-10.) Work groups interact primarily to share information and to make decisions that help each group member individually do his or her job more efficiently and effectively. Work teams work intensely on a specific, common goal using their positive synergy, individual and mutual accountability, and complementary skills. Teams have become popular because teams typically outperform individuals when the tasks being done require multiple skills, judgment, and experience. The four most common types of teams are problem-solving teams, self-managed teams, cross-functional teams, and virtual teams.

Effective teams have the following characteristics: clear goals, relevant skills, mutual trust, unified commitment, good communication, negotiating skills, appropriate leadership, internal support, and external support. (See Exhibit 1511.) Current Challenges in Managing Teams  Discuss the challenges of managing global teams.  Explain the role of informal (social) networks in managing teams. Why Look at Individual Behavior?  Explain why the concept of an organization an iceberg is important to understanding organizational behavior.  Describe the focus and goals of organizational behavior.  Define the six important employee behaviors that managers want to explain, predict, and influence. The idea of an iceberg reflects the fact that there are hidden aspects that affect how employees behave at work. (See Exhibit 14-1.) Organizational behavior focuses on two areas: individual behavior and group behavior. The goals of OB are to explain, predict, and influence employee behavior. The six employee behaviors include: employee productivity – a performance measure of both efficiency and effectiveness; absenteeism – the failure to report to work; turnover – voluntary and involuntary permanent withdrawal from an organization; organizational citizenship behavior – discretionary behavior that’s not part of an employee’s formal job requirements; job satisfaction – an individual’s attitude towards his or her job; and workplace misbehavior – any intentional employee behavior that has negative consequences for the organization or individuals in the organization. Attitudes  Describe the three components of an attitude.  Discuss the three job-related attitudes.  Describe the impact job satisfaction has on employee behavior.  Explain how individuals reconcile inconsistencies between attitudes and behavior.

Global teams face challenges from: group member resources, group structure (conformity, status, social loafing, and cohesiveness), group processes, and the manager’s role. (See Exhibit 15-12.) Social networks describe the patterns of informal connections among individuals within teams. These informal social relationships can hinder or help the team’s effectiveness. CHAPTER SUMMARY – CHAPTER 14 Attitudes are evaluative statements concerning people, objects, or events. The three components of an attitude include the cognitive (beliefs, opinions, knowledge or information), the affective (the emotional or feeling part), and the behavioral (an intention to behave in a certain way). Job satisfaction is an important attitude that can affect productivity (correlation is fairly strong); absenteeism (satisfied employees typically have lower levels); turnover (satisfied have lower levels); customer satisfaction (satisfied employees increase customer satisfaction and loyalty); and workplace misbehavior (dissatisfied employee will respond somehow). Individuals reconcile inconsistencies between attitudes and behaviors aligning their attitudes and behaviors so they appear rational and consistent or when there is an inconsistency by taking steps to make it consistent. Personality  Contrast the MBTI and the big-five model of personality.  Describe the five personality traits that have proved to be the most powerful in explaining individual behavior in organizations.  Explain how emotions and emotional intelligence impact behavior. The MBTI is a popular approach to classifying personality traits. It looks at social interaction (extrovert or introvert), preference for gathering data (sensing or intuitive), preference for decision making (feeling or thinking), and style of making decisions (perceptive or judgmental). The Big Five model looks are five basic personality dimensions (extraversion, agreeableness, conscientiousness, emotional stability, and openness to experience) that

underlie all others and encompass most of the signification variation in human personality. The five personality traits that have proved to be the most powerful in explaining individual behavior in organizations include locus of control, Machiavellianism, self-esteem, self-monitoring, and risk-taking. Emotions and emotional intelligence impact behavior because emotions, especially how we respond emotionally and how we deal with our emotions, can be functions of our personality. Perception  Explain how an understanding of perception can help managers.  Describe the key elements of attribution theory.  Discuss how the fundamental attribution error and self-serving bias can distort attributions.  Name three shortcuts used in judging others. Perception is a process by which individuals give meaning to their environment and managers need to understand how perception explains, predicts, and influences behavior. The key elements of attribution theory (see Exhibit 14-6) are observation of behavior, interpretation of behavior (distinctiveness, consensus, consistency), and attribution of cause (external or internal). The fundamental attribution error is the tendency to underestimate the influence of external factors and overestimate the influence of internal or personal factors. Self-serving bias describes how individuals attribute their own successes to internal factors while putting the blame for personal failure on external factors. Three shortcuts used in judging others include assumed similarity (“like me” effect),

stereotyping (judging someone on the basis of a group to which he or she belongs), and halo effect (letting a single characteristic form our general impression). Learning  Explain how operant conditioning helps managers understand, predict, and influence behavior.  Describe the implications of social learning theory for managing people at work.  Discuss how managers can shape behavior. Operant conditioning says that behavior is a function of its consequences and it helps managers understand, predict, and influence behavior. Social learning theory says that people learn through observation and direct experience. Managers can shape behavior by using positive reinforcement (administering something positive to get desired behavior), negative reinforcement (withdrawing something unpleasant to get desired behavior), punishment (penalizing undesirable behavior to eliminate it), and extinction (ignoring behavior to eliminate it). Contemporary OB Issues  Describe the challenges managers face in managing Gen Y workers.  Explain what managers can do to deal with workplace misbehavior. Managing Gen Y workers presents some unique challenges especially when it comes to appearance, technology, and management style. (See Exhibit 14-7.) To manage workplace misbehavior, managers need to recognize that it exists and then try to prevent it. It can also be important to monitor employee attitudes because negative behavior can show up there as well. CHAPTER SUMMARY – CHAPTER 10  Explain how formalization is used in organizational design. Work specialization was viewed traditionally as an unending source of productivity. Today’s view is that it is an important organizing mechanism but not a source of ever-increasing productivity. The chain of command and its companion concepts—authority, responsibility, and unity of command—were viewed as important ways of maintaining control in organizations. The

Defining Organizational Structure  Discuss the traditional and contemporary views of work specialization, chain of command, and span of control.  Describe each of the five forms of departmentalization.  Explain cross-functional teams.  Differentiate authority, responsibility, and unity of command.  Tell what factors influence the amount of centralization and decentralization.

contemporary view is that they are less relevant in today’s organizations. The traditional view of span of control was that managers should directly supervise no more than 5-6 individuals. The contemporary view is that the span of control depends on the skills and abilities of the manager and the employees and on the characteristics of the situation. The various forms of departmentalization are as follows: Functional – groups jobs by functions performed; product – groups jobs by product lines; geographical – groups jobs by geographical region; process – groups jobs on product or customer flow; and customer – groups jobs on specific and unique customer groups. (See Exhibit 10-2.) Cross-functional teams are work teams composed of individuals from various functional specialties. Authority is the rights inherent in a managerial position to tell people what to do and to expect them to do it. Responsibility is the obligation or expectation to perform assigned duties. Unity of command states that a person should report to only one manager. Factors that influence the amount of centralization-decentralization include such things as the environment, experience of managers, nature of the decision, size of the company, and so forth. (See Exhibit 10-4 for a full list.) Formalization concerns the organization’s use of standardization and strict rules to provide consistency and control. Organizational Design Decisions  Contrast mechanistic and organic organizations.  Explain the relationship between strategy and structure.  Tell how organizational size affects organizational design.  Discuss Woodward’s findings on the relationship of technology and structure.  Explain how environmental uncertainty affects organizational design. A mechanistic organization is a rigid and tightly controlled structure. An organic organization is highly adaptive and flexible. (See Exhibit 10-5.) An organization’s structure should support the strategy. If the strategy changes, the structure also should change. Understanding Communication

An organization’s size can affect its structure up to a certain point. Once an organization reaches a certain size (around 2,000 employees), it’s fairly mechanistic. Woodward found that an organization’s technology can affect its structure. An organic structure is most effective with unit production and process production technology. A mechanistic structure is most effective with mass production technology. (See Exhibit 10-6.) The more uncertain an organization’s environment, the more it needs the flexibility of an organic design. Common Organizational Designs  Contrast the three traditional organizational designs.  Explain team, matrix, and project structures.  Describe the design of virtual and network organizations.  Discuss the organizational design challenges facing managers today. A simple structure is one with low departmentalization, wide spans of control, authority centralized in a single person, and little formalization. A functional structure groups similar or related occupational specialties together. A divisional structure is made up of separate business units or divisions. (See Exhibit 10-7.) In a team structure, the entire organization is made up of work teams. The matrix structure assigns specialists from different functional departments to work on one or more projects being led by project managers. A project structure is one in which employees continuously work on projects. (See Exhibit 10-8.) A virtual organization consists of a small core of full-time employees and outside specialists temporarily hired as needed to work on projects. A network organization is an organization that uses its own employees to do some work activities and networks of outside suppliers to provide other needed product components or work processes. Three organizational design challenges face today’s managers: keeping employees connected, building a learning organization, and managing global structural issues. CHAPTER SUMMARY – CHAPTER 11  Differentiate between interpersonal and organizational communication.

 Discuss the functions of communication. Interpersonal communication is communication between two or more people. Organizational communication is all the patterns, networks, and systems of communication within an organization. The functions of communication include controlling employee behavior, motivating employees, providing a release for emotional expression of feelings and fulfillment of social needs, and providing information. The Process of Interpersonal Communication  Explain all the components of the communication process.  List the communication methods managers might use.  Describe nonverbal communication and how it takes place.  Explain the barriers to effective interpersonal communication and how to overcome them. There are seven elements in the communication process. (See Exhibit 11-1.) First there is a sender who has a message. A message is a purpose to be conveyed. Encoding is converting a message into symbols. A channel is the medium a message travels along. Decoding is when the receiver retranslates a sender’s message. Finally, there is feedback. The communication methods include face-to-face, telephone, group meetings, formal presentations, memos, traditional mail, fax, employee publications, bulletin boards, other company publications, audio- and videotapes, hotlines, email, computer conferencing, voice mail, teleconferences, and videoconferences. (See Exhibit 11-2.) Nonverbal communication is communication transmitted without words. The best known types are body language and verbal intonation. The barriers to effective communication include filtering, emotions, information overload, defensiveness, language, and national culture. Managers can overcome these barriers by using feedback, simplifying language, listening actively (see Exhibit 11-3), constraining emotions, and watching for nonverbal clues. Organizational Communication  Explain how communication can flow in an organization.  Describe the three common communication networks.

 Discuss how managers should handle the grapevine. Communication in an organization can flow downward, upward, laterally, and diagonally. The three communication networks include the chain, in which communication flows downward and upward according to the formal chain of command; the wheel, in which communication flows between a clearly identifiable and strong leader and others in a work team; and the allchannel, in which communication flows freely among all members of a work team. (See Exhibit 11-4.) Managers should manage the grapevine as an important information network. They can minimize the negative consequences of rumors by communicating openly, fully, and honestly with employees. Understanding Information Technology  Describe how technology affects managerial communication.  Define e-mail, instant messaging, blogs and wikis, voice mail, fax, EDI, teleconferencing, videoconferencing, Web conferencing, intranet, and extranet.  Explain how information technology affects organizations. Technology has radically changed the way organizational members communicate. It improves a manager’s ability to monitor performance; it gives employees more complete information to make faster decisions; it has provided employees more opportunities to collaborate and share information; and it has made it possible for people to be fully accessible, anytime anywhere. E-mail is the instantaneous transmission of written messages on linked computers; Instant messaging is interactive real-time communication. A blog is an online journal that usually focuses on a particular subject. A wiki is a type of Web site that allows anyone visiting it to add, remove, or otherwise edit the content. Voice mail digitizes a spoken message, transmits it over a network, and stores the message for the receiver to retrieve later. Fax is communication through machines that allow the transmission of documents containing both text and graphics. Electronic data interchange is a way for organizations to exchange standard business transaction documents using computer networks. Teleconferencing allows a group of people to confer simultaneously using telephone or e-mail

group communication software. Videoconferencing is a simultaneous communication conference where participants can see each other. Web conferencing is holding group meetings or live presentations over the Internet. An intranet is an organizational communication network that uses Internet technology and is accessible only by organizational employees. An extranet uses Internet technology and allows authorized users inside the organization to communicate with certain outsiders. IT affects organizations by affecting the way that organizational members communicate, share information, and do their work. Communication Issues in Today’s Organizations  Discuss the challenges of managing communication in an Internet world.  Explain how organizations can manage knowledge.  Describe why communicating with customers is an important managerial issue.

 Explain how political correctness affecting communication.


The two main challenges of managing communication in an Internet world are the legal and security issues and the lack of personal interaction. Organizations can manage knowledge by making it easy for employees to communicate and share their knowledge so they can learn from each other ways to do their jobs more effectively and efficiently. One way is through online information databases and another way is through creating communities of practice. Communicating with customers is an important managerial issue since what communication takes place and how it takes place can significantly impact a customer’s satisfaction with the service and the likelihood of being a repeat customer. Political correctness is affecting communication in that it sometimes restricts communication clarity. However, managers must be sensitive as to how their choice of words might offend others.

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