COURSE NAME : MANAGING ORGANIZATION

COURSE CODE : MGT 2221 E

SESSION : JANUARY 2022
PROGRAMME : BACHELOR OF BUSINESS
TITLE : GROUP ASSIGNMENT
GROUP : 15
NAME OF LECTURER : MR.FRANCIS WONG
SUBMISSION DATE : 22 FEBRUARY 2022

Student Details
NO STUDENTS NAME MATRICULATION ID
1 Kanagesswary Desiker i20018959
2
3
4
5 Rakib Hasan Ayon i22021651

CONTENT

1
EXECUTIVE SUMMARY ……………………………………………………………………………………………………3

CHAPTER 1 ……………………………………………………………………………………………………………………..

INTRODUCTION
DEFINITION
DISCUSSION
ILLUSTRATION OF COMUNICATION

CHAPTER 2 …………………………………………………………………………………………………………………….

DETAILED DISCUSSION
EVALUATION OF UPWARD COMMUNICATION

CHAPTER 3 …………………………………………………………………………………………………………………….

DETAILED DISCUSSION
EVALUATION OF DOWNWARD COMMUNICATION

CHAPTER 4 …………………………………………………………………………………………………………………….

DETAILED DISCUSSION
EVALUATION OF LATERAL COMMUNICATION

CONCLUSION ………………………………………………………………………………………………………………..

REFERENCES …………………………………………………………………………………………………………………

EXECUTIVE SUMMARY

The communication strategy of any organization needs to be in line to the product and
services it produces. The strategy should communicate to the customers and the internal

2
employees the mission of the organization and the values it stands for. Multinationals like
Nike, have incorporated the values of sports like teamwork and perseverance and adopted
them into the company culture. Each employee can identify himself as a part of the team
that is called Nike Inc... Nike is endorsed by athletes who have a reputation for winning and
a passion for the sport they play. It is in unison with the internal branding initiatives of Nike
without the company reshaping its value delivery mechanism. At Nike emotion is used in
everyday work to remain competitive in the workplace. Nike employees use sporting
metaphors for carrying out their everyday business. Thus, through such branding initiatives,
Nike ensures that all its employees have the ultimate goal of creating a world-class sporting
product at the back of their minds all the time.

In Nike Inc., communication is fundamental to an effective work environment.

Communication is a very important part of working in the business environment. Managers
must be able to communicate with employees and employees must be able to communicate
with managers in order to have a profitable business. 

CHAPTER 1

3
 CHAPTER 2

In the context of multinational companies, it is important that the communication strategy of

different markets should be tweaked according to local tastes and customs keeping the value
proposition same throughout the world.

Upward communication is the flow of information from front line employees to managers,
supervisors, and directors. Some advantages of upward communication are:
 Feedback: Managers can get feedback from employees that can help improve organizational
development. Employees who are encouraged to provide feedback feel respected and that
they have a say in how the organization is run.
 Mutual trust: Mutual trust brings employees and managers closer to each other. As trust
grows, relationships between employees and managers become stronger.
 Introduction of new policies: Front line employees do the work every day. They can usually
tell managers if something works or doesn't work. Employees can be instrumental in forming
new policies or changing those that are outdated.

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Upward communication is participative because it encourages lower-level employees to voice their
opinions. In contrast, downward communication is directive in nature as it allows upper
management to instruct employees on particular company matters. Using upward communication
creates the opportunity for improvements to workplace procedures and, consequently, workplace
productivity. Upward communication encourages employees to communicate directly with upper
management. This creates a sense of value in employees since they realize that upper management
cares about their input, especially when they make changes in response to employee suggestions.
 Subordinate provides only that information which is favorable to upper management.
 It may be discouraged due to lack of proper response of top management.
 It takes a lot of time to communicate the problems at higher level due to various levels from
which it has to pass.
 There may be willful manipulation of information to attain personal goals.
 There arises a threat that superior may react negatively.

The first major limitation of upward communication is the slow movement of information up to
the higher levels. As a result, messages may reach the intended destination when it has little or
no utility. It is a significant constraint of upward communication is the long and slow association
of information to the higher authority.
 Superior’s negligence:
Sometimes top executives discourage the upward flow of information and neglect the opinions
and suggestions of their subordinates. It hampers the normal flow of upward communication. If
the superiors do not take any assessment in the assistance of upward communication, the
employee’s loss assurance in their superiors and workflow may also hamper.
 Lack of subordinate’s confidence:
In some cases, subordinates suffer from confidence and hesitate to communicate upward with
their superiors. They feel shy to represent themselves to their superior. Usually, subordinate is
unenthusiastic to take the proposal to upward communication for a dissimilar reason.

 Distortion of the message:

Distortion of message is a common problem in upward communication subordinate willingly
distorts the message to convey only satisfying news to their superiors. In this system,
subordinates eagerly distort the message because they fear if they tell the original fact to their
bosses, they may appear some problems. In this way, subordinates try to gain their own
interests and get relief from accountability.
 Flattering the superior:
In order to convince the superiors, subordinates can take the help of flattery. Subordinates also
use upward communication as a means of flattering their superiors. They often conceal the truth
and try to satisfy their bosses with imaginary and fictitious information. Most of the lower-level
employees are not aware of many aspects of an organization. The decision taken on such
incomplete information will be wrong to provide the organizational purpose.
 By-passing the intermediary superior:
In some cases, subordinates send messages to the top-level managers by by-passing their
intermediary superiors. This proves destructive in two ways. The officers who have been
bypassed undergo underestimated while the top officer makes hesitation on the worker’s
intentions. The relations become reduced between superiors and workers and works are
damaged. This hampers the relationship between superiors and subordinates. This is harmful to
any organization.
 Fear:
Employees often refrain from upward communication due to fear of reprisal. They think that if
they communicate their problems upward, the superiors may question their positions and

5
 efficiency. The criticism placed by the subordinates may be interpreted as a sign of their
personal weakness or limitation. For this reason, subordinates hesitate to transmit information
in the upward channel. Many employees fear to correspond and allocate their ideas, positive
suggestions and opinions with the superiors.
 Unwillingness to Admit Failure
Many employees in the subordinate are anxious about their jobs and doubtful about their future
prospects. Sometimes subordinates don’t send the information to their superior enthusiastically.
So, the communication structure may be disrupted. They, therefore, feel unwilling to discuss
their on-the-job problems with their superiors.

CHAPTER 4

Evaluation of Lateral Communication in Nike’s Organization:

Nike employs about 75,000 people in almost 170 countries and sells its products under a dozen of its
own brands, including Air Jordan, Nike+, Nike Pro, Nike Golf, and Air Force 1. Hurley International,
Brand Jordan, and Converse are other divisions of the corporation. Nike is a truly worldwide brand
that has managed to rise to the top despite stiff rivalry from other market competitors such as
Adidas, Under Armour, and Puma. The company's success can be interconnected to its product and
marketing approach, but it can also be associated to its organisational structure.

Nike's Organizational Structure

Nike's entire global business is divided into important geographic regions such as North America,
EMEA (Europe, Middle East, and Africa), Greater China, and APLA (Africa, Pacific, and Latin America).
The company's operations are also divided by product type and distribution channel (Wholesale and
Nike Direct) (Footwear, Apparel and Equipment). Nike's organisational structure is a matrix, which
has a few and one of it is the vertical/horizontal structures. The employee in a vertical/horizontal
structure has several reporting lines and duties. Even though this structure appears to be
complicated, Nike has been able to use it to its advantage. Employees frequently report to multiple
managers, which can be inconvenient in this type of organisational structure, but it has worked in
Nike's benefit. The organisation uses a highly defined operational approach that allows the leaders
to make quick decisions and maintain constant communication. Despite the fact that there are
several reporting authorities, employees are well aware of what their superiors expect of them.

Nike's vertical/horizontal organisational structure is depicted in the diagram below, which clearly
shows the multiple reporting lines:

6
Nike Executives
The diagram below shows the major personnel who work in the global headquarters and are in
charge of making all of the company's centralised decisions. Needless to say, it still implies the same
horizontal/vertical organisational structure, with each reporting authority in each market region
included. It should be noted, however, that the streamlined approach to handling business
operations is what makes it beneficial to the company. The combination of standardisation and
localization has helped the firm to develop marketing strategies that are easily appealing to local
customers while maintaining the global Nike culture, allowing the brand to become more personal
with its customers. Nike's sophisticated matrix organisational structure, such as the
vertical/horizontal organisation, has served the company wonderfully, but this does not always
suggest that it would be a good fit for another. The success of a company's organisational structure
Leadership styles and business culture have a significant impact on it.

Nike Executives
The diagram below shows the major personnel who work in the global headquarters and are in
charge of making all of the company's centralised decisions. Needless to say, it still implies the same
horizontal/vertical organisational structure, with each reporting authority in each market region
included. It should be noted, however, that the streamlined approach to handling business
operations is what makes it beneficial to the company. The combination of standardisation and
localization has helped the firm to develop marketing strategies that are easily appealing to local
customers while maintaining the global Nike culture, allowing the brand to become more personal
with its customers. Nike's sophisticated matrix organisational structure, such as the
vertical/horizontal organisation, has served the company wonderfully, but this does not always
suggest that it would be a good fit for another. The success of a company's organisational structure
Leadership styles and business culture have a significant impact on it.

7
 CONCLUSION

Managers must be able to communicate with employees and employees must be able to
communicate with managers in order to have a profitable business. Upward communication is
the flow of information from front line employees to managers, supervisors, and directors. In
contrast, downward communication is directive in nature as it allows upper management to
instruct employees on particular company matters. This creates a sense of value in employees
since they realize that upper management cares about their input, especially when they make
changes in response to employee suggestions. Thus, through such branding initiatives, Nike
ensures that all its employees have the ultimate goal of creating a world-class sporting
product at the back of their minds all the time. The strategy should communicate to the
customers and the internal employees the mission of the organization and the values it stands
for. Nike employees use sporting metaphors for carrying out their everyday business. Nike
employs about 75,000 people in almost 170 countries and sells its products under a dozen of
its own brands, including Air Jordan, Nike+, Nike Pro, Nike Golf, and Air Force 1. The
company's success can be interconnected to its product and marketing approach, but it can also be
associated to its organisational structure.

REFERENCES

https://www.linkedin.com/pulse/nike-brand-communication-strategies-mohit-yadav

https://csdijon.files.wordpress.com/2009/10/nike-inc.pdf

https://qsstudy.com/disadvantages-limitations-upward-communication/

8
Andrew Thompson. (2019). Nike Inc. Organizational Structure Characteristics (Analysis). Retrieved
from the Panmore Institute http://panmore.com/nike-inc-organizational-structure-characteristics-
analysis

Nike.com. (2022). NIKE, Inc. - About NIKE Executives. [online] Available at:
https://about.nike.com/pages/executives

Sobiya. (n.d) Nike’s Organizational Structure: Pros & Cons from the Advergize website.
https://www.advergize.com/business/nikes-organizational-structure-the-pros-cons/