Contemporary Business 16th Edition Boone Solutions Manual

Contemporary Business 16th Edition
Boone Solutions Manual

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Boone & Kurtz / Contemporary Business, 16th edition Instructor’s Guide
CHAPTER 9
TOP PERFORMANCE THROUGH EMPOWERMENT,
TEAMWORK, AND COMMUNICATION
Chapter Overview
Top managers recognize that teamwork and communication are essential for empowering
employees to perform their best. This chapter focuses on how organizations involve
employees by sharing information and empowering them to make critical decisions,
allowing them to work in teams, and fostering communication. We begin by discussing
the ways managers can empower their employees’ decision-making authority and
responsibility. Then, we explain why and how a growing number of firms rely on teams
of workers rather than individuals to make decisions and carry out assignments. Finally,
we discuss how effective communication allows workers to share information that
improves the quality of decision making.
Glossary of Key Terms
Affective conflict: disagreement that focuses on individuals or personal issues

Cognitive conflict: disagreement that focuses on problem- and issue-related differences of
opinion
Communication: meaningful exchange of information through messages
Conflict: when one person or group’s needs do not match those of another, and attempts may be
made to block the opposing side’s intentions or goals
Cross-functional team: a team made up of members from different functions, such as
production, marketing, and finance
Empowerment: giving employees authority and responsibility to make decisions about their
work
External communication: meaningful exchange of information through messages transmitted
between an organization and its major audiences
Grapevine: internal information channel that transmits information from unofficial sources
Listening: receiving a message and interpreting its intended meaning by grasping the facts and
feelings it conveys
Problem-solving team: temporary combination of workers who gather to solve a specific
problem and then disband
Self-managed team: work team that has the authority to decide how its members complete their
daily tasks
Team: group of people with certain skills who are committed to a common purpose, approach,
and set of performance goals
Copyright © John Wiley & Sons, Inc. 9-1

Team cohesiveness: extent to which team members feel attracted to the team and motivated to
remain part of it
Team diversity: variances or differences in ability, experience, personality, or any other factor
on a team
Team level: average level of ability, experience, personality, or any other factor on a team
Team norm: standard of conduct shared by team members that guides their behavior
Virtual team: group of geographically or organizationally dispersed coworkers who use a
combination of telecommunications and information technologies to accomplish an
organizational task
Work team: relatively permanent group of employees with complementary skills who perform
the day-to-day work of organizations
Annotated Lecture Outline
Learning Objective 1: Discuss empowering employees. Managers empower employees

by giving them the authority and responsibility to make decisions about their work.
Empowerment seeks to tap the brainpower of all workers to find improved ways of doing
their jobs, better serving customers, and achieving organizational goals. Empowerment
often includes linking rewards to company performance through employee stock
ownership plans (ESOPs) and stock options.
Opening Vignette: Yahoo! Brings Employees Back to Lecture Enhancer: Ask if any
the Office students have ever had a job
Studies have shown that employees who work from home where teamwork was strongly
are more productive than workers in an office. If this is true, emphasized, and have them
then why have Yahoo, Bank of America, Zappos, and describe their experience.
Hewlett-Packard, among others, recently decided that many
of their workers can no longer work exclusively from home
and must come to the office? In the highly competitive
business world, these companies believe that innovation
springs from employee interaction and collaboration.
Yahoo’s CEO Marissa Mayer may have had this in mind
when she abolished Yahoo’s work-at-home policy and
ordered almost everyone back to the office. Mayer believes
that people are more productive when they are alone, but
are more collaborative and innovative when they work
together. And innovation is precisely what companies like
Yahoo need to stay relevant in the highly competitive
Internet world.
EMPOWERING EMPLOYEES PowerPoint Slide 3

a. Empowerment is giving employees authority Lecture Enhancer: In today’s

and responsibility to make decisions about hyper-competitive, technology-
their work. driven business environment,
creating an environment where
empowered employees are free
to challenge the status quo is
critical.
b. It taps the brainpower of workers, frees
managers from hands-on control, and
motivates workers.
1. Sharing Information and Decision-Making Class Activity: Discuss with

Authority students the possible drawback
of sharing detailed operating
and financial information with
all employees.
a. Companies should keep employees informed
about a firm’s financial performance.
b. Some companies give workers broad Hit & Miss:

authority to make decisions that implement Cisco Plays Games as Part of
the firm’s vision. Employee Training
2. Linking Rewards to Company Performance PowerPoint Slide 4
Lecture Enhancer: Many
technology company
employees have benefitted
from the rewards of high stock
prices and increased investor
demand.
a. Employee stock ownership plans (ESOPs) PowerPoint Slide 5
give employees ownership stakes in their Table 9.1 Employee Stock
firms, leading to potential profits as the value Ownership Plans and Stock
of the firm increases. Options
i. Approximately 11 million workers at Lecture Enhancer: The stock
12,000 companies participate in option has been used by
ESOPs. companies to attract and
motivate top talent, especially
those who were willing to take
a chance on stock instead of
additional money in pay.

ii. An employer buys shares of the

firm’s stock on behalf of the
employee as a tax-free retirement
benefit.
iii. ESOPs give employees ownership,
motivating them to work smarter and
harder.
iv. 60 percent of companies that use
ESOPs reported an increase in
productivity.
v. ESOPs are expensive to set up.
vi. ESOPs are more common in larger
firms.
vii. If an employee’s retirement funds are
in stock and the value falls, the
employee may be financially harmed.
b. Stock options refer to the right to buy a Class Activity: Ask students to
specified amount of company stock at a fixed discuss the pros and cons of
price within a given time period. stock options in a bear market.
i. Stock options allow employees—not
the firm—to own the stock.
ii. Options are being offered to more
employees at all different levels.
iii. Approximately 9 million employees
in thousands of companies hold stock
options.
iv. Still, one-third of all options go to the
top five executives
at a firm.
v. There is solid evidence that stock
options motivate employees to
perform better.
vi. As with ESOPs, employees face risks
when they rely on a single company’s
stock to provide for their retirement.

Hit & Miss:

Cisco Plays Games as Part of Employee Training
If you like the thrill of reviewing your spot on a leaderboard, completing
achievement levels, and earning prizes when playing mobile or video
games like “Candy Crush Saga,” you may be able to have the same
experience right in the workplace. It’s called gamification, and companies
like Cisco Systems are using the same features found in video games for
training, education, and skill-based learning. Cisco Systems, a network equipment
manufacturer, uses an advanced simulation game in which players manage an interactive
business as it evolves through the various stages of the Internet over the past 25 years.
The game provides the user with an experience of managing and guiding citizens into the
“Connected Life,” using Cisco’s core visual networking products.
Questions for Critical Thinking
1. What are your thoughts about gamification strategies for increasing employee
productivity? Discuss the pros and cons.
This answer will vary. The pros of gamification for increasing employee productivity
result in increased employee engagement. Many companies have found that adding
game elements to reward employees is effective. Gamification offers immediate
results, updates, and input -- and many companies use it to identify leaders. For
example, employees can learn about leadership and management, resulting in
recognition within the organization for their gameplay. Using and identifying
meaningful metrics such as badges and points, allows a company, for example, to
identify contributors of meaningful information to online forums.
The cons of gamification for increasing employee productivity include a company's
ability to balance gamificiation with competition and collaboration. Gamification can
be overused, and based upon a company’s cultural nuances, it cannot always be
applied using a one size fits all approach. Therefore, gamification may not make
sense for all types of work processes and places. Because not all employees want to
be forced to play a game, gamification can become an issue if it is mandated, and not
voluntary. Using gamification, some employees cite the temptation to cheat, and
others have taken advantage of loopholes in gamification systems. This can
contribute to internal conflict and unethical choices, as employees compete to “win”
in order to meet specific goals.
2. How can gamification techniques drive business performance through
increased sales, improved learning, and greater employee collaboration?
Gamification can be used to increase social interactions and learning. Additionally,
it can be used to enhance and learn work processes. Competitions using leaderboards
are known to enhance sales. Points can be awarded and attached with monetary,
recognition, or intrinsic value. Individual and team activity can be tied to virtual or
monetary incentives. The result can be increased collaboration among sales teams.

To enhance learning, gamification can be used as a skill building app to increase

retention of critical information, training, or work processes. Meaningful employee
collaboration can be inspired using gamification as follows: social sharing, creating
groups to promote desired behavior, internal competitions, and rewards for team
members whose online and offline behavior meets performance targets.
Assessment Check Answers
1.1 What is empowerment?

Empowerment is giving employees authority and responsibility to make decisions about
their work.
1.2 What kinds of information can companies provide employees to help them share
decision-making responsibility?
Sharing information about company performance, particularly financial performance, is
one of the best ways to share decision-making responsibility.
1.3 How can managers empower employees?

Managers empower employees by sharing company information and decision making
authority and by rewarding them for their performance as well as the company’s.
Learning Objective 2:
Distinguish the five types of teams.
The five basic types of teams are work teams, problem-solving teams, self-managed
teams, cross-functional teams, and virtual teams. Work teams are permanent groups of
coworkers who perform the day-to-day tasks necessary to operate the organization.
Problem-solving teams are temporary groups of employees who gather to solve specific
problems and then disband. Self-managed teams have the authority to make decisions
about how their members complete their daily tasks. Cross-functional teams are made up
of members from different units, such as production, marketing, and finance. Virtual
teams are groups of geographically or organizationally dispersed coworkers who use a
combination of telecommunications and information technologies to accomplish an
organizational task.
TEAMS PowerPoint Slide 6

a. A team is a group of people with certain skills Lecture Enhancer: Discuss
who are committed to a common purpose, the benefits of working as
approach, and set of performance goals. part of a team as compared
to individualized work.

i. Team members hold themselves Class Activity: What

mutually responsible and accountable happens when teams
for accomplishing objectives. compete for attention rather
than cooperating in the
larger goals of the
organization?
ii. The ability to work on teams often is
emphasized during the hiring and
training processes.
iii. There are five basic types of teams: PowerPoint Slide 7
work teams, problem-solving teams, Figure 9.1 Five Types of
self-managed teams, cross-functional Teams
teams, and virtual teams. Lecture Enhancer: Which
type of team do you imagine
would be the easiest to
manage? Why?
b. A work team is a relatively permanent group of
employees with complementary skills who
perform the day-to-day work of organizations.
i. Two-thirds of U.S. firms use work
teams.
ii. Designed to handle any business
problem that arises.
c. A problem-solving team is a temporary Lecture Enhancer: Provide

combination of workers who gather to solve a a few examples of the types
specific problem and then disband. of problems solved by
knowledge workers on a
problem-solving team.
d. A self-managed team is a work team that has
the authority to decide how its members
complete their daily tasks.
i. Most effective when made of
employees with a range of skills and
functions.
ii. Members often are cross-trained to do
each other’s jobs.
iii. Distributing decision making frees
members to focus on customer

satisfaction.
e. A cross-functional team is a team made up of Class Activity: Lead a

members from different functions, such as discussion to identify work
production, marketing, and finance. situations in which a team
composed solely of members
from the same function
would be more effective
than a cross-functional
team.
i. They usually work on specific projects
but also can be permanent teams.
ii. They bring different perspectives to

the work effort.
f. A virtual team is a group of geographically or
organizationally dispersed coworkers who use a
combination of telecommunications and
information technologies to accomplish an
organizational task.
i. Members of virtual teams rarely meet
face-to-face.
ii. Their advantage is flexibility across
time zones and locations.
iii. Virtual teams can be difficult to Solving an Ethical
manage. Controversy:
Who Benefits from Virtual
Teamwork?
Solving an Ethical Controversy:

Who Benefits from Virtual Teamwork?
Virtual teams are teams of professionals, some or all of whose members work from home
or in various off-site locations, to reach a common objective or goal. They work and keep
in touch using technology including Web conferences, project management software, and
voice-over-Internet services such as Skype. By reducing the need for office space and
overhead, they can generate lower costs. Do geographically dispersed employees pose
greater management challenges?

2.1 What is a team?

A team is a group of people with certain skills who are committed to a common purpose,
approach, and set of performance goals.
2.2 What are the five types of teams, and how are they different?
Work teams are permanent, whereas problem-solving teams are temporary. Unlike work
teams, self-managed teams have the authority to change how they get their work done.
Cross-functional teams are composed of people from different backgrounds, whereas
virtual teams are composed of people from different locations.
Learning Objective 3
Identify team characteristics.
Three important characteristics of a team are its size, team level, and team diversity. The
ideal team size is about six or seven members. Team level is the average level of ability,
experience, personality, or any other factor on a team. Team diversity represents the
variances or differences in ability, experience, personality, or any other factor on a team.
Team diversity is an important consideration for teams that must complete a wide range
of different tasks of particularly complex tasks. Teams pass through five stages of
development: (1) Forming is an orientation period during which members get to know
each other and find out what behaviors are acceptable to the group. (2) Storming is the
stage during which individual personalities emerge as members clarify their roles and
expectations. (3) Norming is the stage at which differences are resolved, members accept
each other, and consensus emerges about the roles of the team leader and other
participants. (4) Performing is characterized by problem solving and a focus on task
accomplishment. (5) Adjourning is the final stage, with a focus on wrapping up and
summarizing the team’s experiences and accomplishments.
TEAM CHARACTERISTICS PowerPoint Slide 8

1. Team Size
a. Most teams have fewer than 12 members; 6 is
an ideal number.
b. Smaller teams stress the need to get along,
favor informal interactions, and make only
limited demands on team leaders.

c. Large groups see slower decision making, less Lecture Enhancer: Why do
participation, more conflict, higher you think larger groups might
absenteeism, and subgroups. have lower participation
rates?
d. A team of more than 20 people should be
divided into subteams.
2. Team Level and Team Diversity
a. Team level is the average level of ability,
experience, personality, or other factor on a
team.
i. Team level is important when a firm
needs a team with a particular set of
skills or capabilities.
b. Team diversity refers to the variances or Hit & Miss:
differences in ability, experience, personality, Sheryl Sandberg “Likes”
or any other factor on a team. Diversity
i. Team diversity is important when a Class Activity: Ask students
firm must complete a wide range of to describe the possible
different tasks or particularly challenges of working on a
complex tasks. diverse team.
c. The strongest teams have the best Class Activity: Discuss the
combination of both. impact of team diversity on
organizational outcomes.
Does a larger firm usually
have more team diversity than
a smaller one?
3. Stages of Team Development PowerPoint Slide 9
– Teams that pass through all of these stages usually Figure 9.2 Stages of Team
perform better. Development
Lecture Enhancer: During
which stage is the manager’s
role most important? Why?
a. Stage 1: Forming
An orientation period during which team
members get to know each other and find out
what behaviors are acceptable to the group.

i. An effective team leader will

provide time for forming.
b. Stage 2: Storming
Team members clarify their roles and
expectations.
i. Personalities of team members
emerge.
ii. Conflicts may arise as members
jockey for positions within the
group.
iii. Subgroups may form.
iv. The team leader must encourage
members to move beyond this stage
to real productivity.
c. Stage 3: Norming Lecture Enhancer: What
Members resolve differences, accept each might be the effect on a team
other, and reach broad agreement regarding if a manager skips the
member roles. norming stage?
i. The team leader should emphasize
team unity during this brief stage.
d. Stage 4: Performing
Members focus on solving problems and
accomplishing tasks.
i. The team leader should encourage
participation and contributions from
all members.
e. Stage 5: Adjourning
Once members have completed the task, the
focus is on wrapping up and summarizing
experiences and accomplishments.
i. The team leader recognizes the Class Activity: Discuss the

team’s accomplishments with impact of the adjourning
awards or celebration. stage on team members who
prefer routine, or have
developed close working
relationships with other team
members.

Hit & Miss:

Sheryl Sandberg “Likes”Diversity
Sheryl Sandberg, Facebook’s Chief Operating Officer, believes that businesses succeed
when management reflects the diversity of the population at large. A leadership team
with different experiences and backgrounds typically is better at identifying and solving
problems. In addition to her COO duties at Facebook, Sandberg recently gained media
attention with her book about “leaning in,” challenging women to take risks in their
careers and not let gender bias get in the way of advancing in the workplace. She believes
that a culture of inclusion and a diverse workplace improve employees’ engagement
levels, performance, productivity, and retention.
1. Discuss situations in which you have witnessed gender or cultural bias either at
work or at school. What could you have done to prevent the situation?
This answer will vary. Ways to prevent or alleviate gender bias include: education,
advocacy, and taking actions (in the case of an employer or an instructor), to make
decisions based upon workplace (or classroom) performance. In addition, providing
proper training to employees on the issue is also helpful.
2. Provide specific examples of how multiple perspectives have helped problem
solving in either a team or group setting.
Multiple perspectives can help in the following ways:
• A team member with additional skills and experience in a new or different
area might bring greater effectiveness and efficiency to the team. For
example, someone with technical skills who can also speak to customers
(or students) in lay terms can enrich relationships and deepen
understanding.
• Personality types – including introverts and extroverts can deepen
relationships.
• Intellectual capacity and emotional intelligence – those who are smart in
their subject-matter, and those can communicate their opinions and
perspectives with others in a manner that is understandable and relatable.
3.1 Explain team level and team diversity.

Team level is the average level of ability, experience, personality, or other factors on a
team. Team diversity represents differences in ability, experience, personality, or any
other factor on a team.

3.2 Explain how teams progress through the stages of team development.
Teams pass through five stages of development: forming, storming, norming, performing,
and adjourning.
Evaluate team cohesiveness and norms.
Team cohesiveness is the extent to which team members feel attracted to the team and
motivated to remain on it. Team norms are standards of conduct shared by team
members that guide their behavior. Highly cohesive teams whose members share certain
standards of conduct tend to be more productive and effective.
TEAM COHESIVENESS AND NORMS PowerPoint Slide 10

1. Cohesiveness
a. Team cohesiveness is the extent to which
team members feel attracted to the team and
motivated to remain part of it.
b. It increases when members interact
frequently, share common attitudes and
goals, and enjoy being together.
c. When team cohesiveness is high, team Lecture Enhancer: What
members are more motivated to contribute to is likely to happen if
the team. team cohesiveness is low
or nonexistent?
d. Cohesive teams quickly achieve high levels Class Activity: Describe
of performance and consistently perform a sports team exhibiting
better. team cohesiveness.
Describe its
characteristics as a
team and among the
individual players.
e. Team-building retreats or cross-training
skills encourage cohesiveness.
2. Norms
a. A team norm is a standard of conduct shared by Lecture Enhancer:
team members that guides their behavior. Provide an example of a
team norm you have
experienced.

b. They are informal guidelines that identify key

values and clarify expectations.
c. In productive teams, norms contribute to the
accomplishment of team goals.
4.1 How does cohesiveness affect teams?

Members of cohesive teams interact more often, share common attitudes and goals, have
higher morale, and are more likely to help each other. Cohesive teams also perform
better.
4.2 What is a team norm?

A team norm is a standard of conduct shared by team members that guides their
behaviour. Norms are informal standards that identify key values and clarify team
members’ expectations.
Describe team conflict.
Conflict and disagreement are inevitable in most teams. Conflict can stem from many
sources: disagreements about goals and priorities, task-related issues, interpersonal
incompatibilities, scarce resources, and simple fatigue. The key to dealing with team
conflict is not avoiding it but making sure that the team experiences the right kind of
conflict. Cognitive conflict focuses on problem-related differences of opinion and, when
reconciled, strongly improves team performance. By contrast, affective conflict refers to
the emotional reactions that can occur when disagreements become personal rather than
professional, and these differences strongly decrease team performance. A team leader
can manage team conflict by fostering good communication so that team members
perceive each other accurately, understand what is expected of them, and obtain the
information they need.
TEAM CONFLICT PowerPoint Slide 11

1. Conflict occurs when one person or group’s needs do Lecture Enhancer: Share
not match those of another, and attempts may be made an instance of team
to block the opposing side’s intentions or goals. conflict you have
experienced within the
workplace, or at school.

a. Conflict and disagreement are inevitable in

most teams.
b. The primary cause of team conflict is
disagreement over goals and priorities.
c. Other causes include disagreements over task-

related issues, interpersonal incompatibilities,
fatigue, and team diversity.
d. Although most people believe conflict should

be avoided, experts note that the right kind of
conflict can actually enhance team
performance.
2. Types of conflict: Lecture Enhancer: Which
type of conflict would be
the most difficult for a
manager to resolve? Why?
a. Cognitive conflict focuses on problem- related
differences of opinion.
i. Reconciling these differences
improves team performance.
ii. Team members disagree because
their different experiences and
expertise lead them to different
views of the problem and its
solutions.
iii. Characterized by a willingness to
examine, compare, and reconcile
differences to produce the best
possible solution.
b. Affective conflict focuses on individuals or

personal issues.
i. Refers to the emotional reactions that
occur when disagreements become
personal rather than professional.
ii. These differences strongly decrease

team performance.

iii. Often results in hostility, anger,

resentment, distrust, cynicism, and
apathy.
iv. It can make people uncomfortable,
cause them to withdraw, decrease
their commitment to a team, lower
the satisfaction of team members,
and decrease team cohesiveness.
v.It prevents teams from engaging in

activities that are critical to team
effectiveness.
3. How team leaders can manage conflict:
a. Facilitate good communication so that Class Activity:
teammates respect each other and are free The primary source of
to disagree with each other. team conflict is
disagreement over goals
and priorities. Provide
actual examples of how
this can occur within an
organizational setting
such as a bank.
b. Evaluate situations or conditions in the

workplace that might be causing conflict.
c. Use team-building exercises, listening

exercises, and role-playing.
5.1 What is cognitive conflict, and how does it affect teams?

With cognitive conflict, team members disagree because their different experiences and
expertise lead them to different views of the problem and its solutions. Cognitive conflict
is characterized by a willingness to examine, compare, and reconcile differences to
produce the best possible solution.

5.2 Explain affective conflict and its impact on teams.

Affective conflict refers to the emotional reactions that can occur when disagreements
become personal rather than professional. These differences strongly decrease team
performance.
Explain the importance of effective communication.
Managers spend approximately 80 percent of their time in direct communication with
others. Company recruiters consistently rate effective communication, such as listening,
conversing, and giving feedback, as the most important skill they look for when hiring
new employees. The communication process follows a step-by-step process that involves
interactions among six elements: sender, message, channel, audience, feedback, and
context. The sender composes the message and sends it through the channel. The
audience receives the message and interprets its meaning. The receiver gives feedback to
the sender. The communication takes place in a situational or cultural context.
THE IMPORTANCE OF EFFECTIVE PowerPoint Slide 12

COMMUNICATION
a. Communication is the meaningful exchange of
information through messages.
b. Managers spend approximately 80 percent of Lecture Enhancer:

their time in direct communication with others. Can you think of a manager
who you feel is or was
exceptionally good at
communicating? What
specific traits helped that
manager to be a good
communicator?
c. Company recruiters rate effective Class Activity:
communication as the most important skill they How might you let a
look for in hiring new employees. prospective employer know
about your communication
skills?
1. The process of communication follows a step-by-step PowerPoint Slide 13
process that involves interactions among six elements: Figure 9.3 The
sender, message, channel, audience, feedback, and Communication Process
context.

a. The sender composes the message and sends it Lecture Enhancer:

through a communication carrier, or channel. What is the impact of using
technology on the
communication process?
b. The message is sent in understandable terms
and appropriate format.
c. The sender must choose a channel (face-to-
face, phone, e-mail, texting, ads).
d. The audience consists of the people who

receive and decode the message.
e. Feedback from the audience helps the sender Lecture Enhancer:
determine whether the audience has correctly What can happen to the
interpreted the message. communication process if the
feedback step is ignored?
f. Every communication takes place in some sort
of situational or cultural context.
2. Context can exert a powerful influence on PowerPoint Slide 14

communication.
a. Anthropologists classify cultures as either low Lecture Enhancer: Describe
context or high context. whether low or high context
has to do specifically with
culture rather than the
situation.
b. Communication in low-context cultures tends to
rely on explicit written and verbal messages.
i. Examples of low-context cultures

include Switzerland, Austria,
Germany, and the United States.
c. Communication in high-context cultures

depends not only on the message itself but also
on the conditions that surround it.
i. Examples of high-context cultures

include Japan, Latin America, and
India.

ii. Nonverbal cues, past and present

experiences, and personal
relationships between the parties are
all factors.
d. Westerners must temper their low-context
communication style to the expectations of
high-context cultures when communicating
within those cultures.
3. Noise is some type of interference that influences the Class Activity:

transmission of messages and feedback. Ask students how noise in
their households affects their
ability to participate in a
distance learning activity.
a. It can be physical factors: poor cell phone
reception, static on a radio commercial.
b. It can be caused by differences in people’s

attitudes and perceptions.
c. Managers must learn how to cut through noise
when communicating with employees.
6.1 What is the difference between communication in low-context and high-context

cultures?
Communication in low-context cultures tends to rely on explicit written and verbal
messages. By contrast, communication in high-context cultures depends not only on the
message itself but also on the conditions that surround it, including nonverbal cues, past
and present experiences, and personal relationships among the parties.
6.2 In the context of the communication process, what is noise?

Noise is some type of interference that influences the transmission of messages and
feedback. It can result from physical factors such as poor reception of a cell phone
message or from differences in people’s attitudes and perceptions.

Compare the basic forms of communication. People exchange messages in many
ways: oral and written, formal and informal, and verbal and nonverbal communication.
Effective written communication reflects its audience, its channel, and the appropriate
degree of formality. Formal communication channels carry messages within the chain of
command. Informal communication channels, such as the grapevine, carry messages
outside the formal chain of command. Nonverbal communication plays a larger role than
most people realize. Generally, when verbal and nonverbal cues conflict, the receiver of
a message tends to believe the meaning conveyed by nonverbal cues.
BASIC FORMS OF COMMUNICATION PowerPoint Slide 15

Table 9.2 Forms of
Communication
1. Oral Communication
a. Face-to-face oral communication allows
people to combine words with such cues as
facial expressions and tone of voice.
b. Oral communication over the telephone lacks Lecture Enhancer:

visual cues, but it does allow people to hear the Storytelling is a form of
tone of voice and provide immediate feedback verbal communication which
by asking questions or restating the message. clarifies values and
demonstrates a point the
sender is trying to convey.
c. Drawbacks:
i. If one person is agitated or nervous
during a conversation, noise enters the
process.
ii. A hurried manager might brush off an
employee who has an important
message.
iii. The immediacy of oral communication Lecture Enhancer: Can you
can lead to speaking before thinking. think of some additional
drawbacks to oral
communication?
d. Listening is a vital component of oral
communication.

i. Listening refers to receiving a message PowerPoint Slide 16

and interpreting its intended meaning
by grasping the facts and feelings it
conveys.
ii. Listening is complex: an average Class Activity: Discuss the
person talks at a rate of 150 wpm, implication that the average
whereas a listener has a capacity for up person talks at a rate of 150
to 400 wpm. words per minute when the
brain can handle an average
of 400 words per minute.
iii. This gap can lead to boredom,
inattention, and misinterpretation.
iv. Immediately after listening to a

message, the average person can recall
only half of it.
e. Common listening behaviors:
i. Cynical or defensive listening occurs Lecture Enhancer:

when the receiver feels the sender is Have students name a
trying to gain some advantage from the situation where they engaged
communication. in each type of listening.
ii. Offensive listening occurs when the

receiver tries to catch the speaker in a
mistake or contradiction.
iii. Polite listening occurs when the

receiver listens mechanically rather
than to communicate. Usually
inattentive listeners.
iv. Active listening requires involvement
with the information and empathy with
the speaker’s situation and is the basis
for effective communication.
f. Listening may be difficult, but it results in Career Kickstart:
increased learning, better interpersonal Tune Up Your Listening
relationships, and greater influence. Skills
2. Written Communication PowerPoint Slide 17

a. Written communication includes reports, Lecture Enhancer:

letters, memos, online discussions, social What are some possible
media, e-mails, and text messages. drawbacks to written
communication?
b. Effective written communication reflects its
audience, channel carrying the message, and
appropriate degree of formality.
c. E-mail can be effective for straightforward

messages, but drawbacks include:
i. Too much worker time spent reading e-

mail.
ii. Senders occasionally forget they are Class Activity: Ask students
creating a written record that can be about a situation when they
used as evidence in a legal case or were thankful to have put
disciplinary action. something in writing.
Describe the situation.
3. Formal Communication Power Point Slide 18
a. A formal communication channel carries
messages that flow within the chain of
command structure.
i. Downward communication carries Lecture Enhancer:
messages from top managers to Share some typical methods
subordinates and is the most familiar that companies use for
formal channel. downward formal
communication.
b. The most important factor in formal Class Activity: Discuss what
communication is to be open and honest. happens when management
tries to “spin” bad with the
intent of lessening the blow
to employees?
c. Open communication has the following seven PowerPoint Slide 19
characteristics: Lecture Enhancer: Discuss
whether a classroom
environment is one where
open communication exists
on an ongoing basis.
i. Employees are valued.

ii. A high level of trust exists.

iii. Conflict is invited and resolved
positively.
iv. Creative dissent is welcomed.
v. Employee input is solicited.
vi. Employees are well informed.
vii. Feedback is ongoing.
d. Upward communication includes channels PowerPoint Slide 20
from employees to supervisors and upward to Figure 9.4 Formal and
top management levels. Informal Channels of
Communication
i. Some examples of upward Lecture Enhancer: Discuss
communication include employee the impact of telecommuting
surveys and suggestion boxes. on formal communication
ii. Upward communication is necessary

for managers to evaluate the
effectiveness of downward
communication.
4. Informal Communication PowerPoint Slide 21
a. Informal communication channels carry Class Activity:
messages outside formally authorized channels Ask students how they would
within an organization’s hierarchy. communicate with employees
about an across-the-board
20 percent workforce
reduction.
b. The grapevine is an informal, internal
information channel that transmits information
from an unofficial source.
i. Grapevines disseminate information Class Activity: What
with speed and economy and are happens when an employee
surprisingly reliable but should not be belongs to three different
the main source of information. groups (for example,
working moms with kids,
people within a work
department, and a softball
league) with whom she
speaks about work about in
informal ways?

ii. The grapevine can help managers get a Lecture Enhancer: What are
feel for morale, the anxieties of the some other ways in which
workforce, and the effectiveness of managers can use the
formal communications. grapevine?
iii. Managers can improve the grapevine
by sharing what they know.
c. Gossip is the main drawback of an informal Lecture Enhancer: It makes
communication channel. sense that a rumor is likely to
match what workers think
about a situation or person,
and that the person sharing
the rumor with us can
appear to be credible.
i. Gossip can spread misinformation and
undermine morale.
ii. A manager should deal directly with a

gossiper.
5. Nonverbal Communication PowerPoint Slide 22
a. Nonverbal communication transmits messages Class Activity: Discuss a
through actions and behaviors. situation when someone’s
nonverbal message conveyed
an attitude or thought which
differed from their spoken
meaning.
i. Gestures, posture, eye contact, tone Lecture Enhancer: If you’ve
and volume of voice, and even ever watched a movie
clothing choices are all nonverbal without the volume, you’d be
actions. particularly adept at reading
nonverbal cues.
ii. 70 percent of interpersonal
communication is conveyed through
nonverbal cues.

b. Personal space can convey powerful messages. Lecture Enhancer: What

meaning do you infer if
someone is standing too
close to you when you are
conversing? What if someone
is standing unusually far
away?
i. Four zones of personal space include PowerPoint Slide 23

intimate, personal, social, and public. Figure 9.5 Influence of
Personal Space in Nonverbal
Communication
ii. In the United States, most business Lecture Enhancer:
conversations occur within the social Have students discuss,
zone. compare and contrast their
personal space requirements.
iii. Concepts of appropriate personal Lecture Enhancer: Studies

space differ dramatically throughout show that affluent people
the world. expect larger amounts of
personal space. Do you
agree?
c. When verbal and nonverbal cues conflict,
receivers of the communication tend to believe
the nonverbal content.
Career Kickstart:
Tune Up Your Listening Skills
Smart managers know that good listening is an important key to business success.
Tuning in to employees, customers, and competitors can provide a wealth of valuable
insight and information. Listening means paying attention to verbal and nonverbal cues.
It means turning off your cell phone during a face-to-face conversation or meeting. Some
listening tips include: be attentive, keep an open mind, don’t interrupt, ask questions, and
be empathetic.
7.1 Define the four common listening behaviors.

Cynical listening occurs when the receiver of a message feels that the sender is trying to
gain some advantage from the communication. Offensive listening occurs when the
receiver tries to catch the speaker in a mistake or contradiction. Polite listening occurs

when the receiver is rehearsing what he or she wants to say when the speaker finishes.
Active listening requires involvement with the information and empathy with the
speaker’s situation.
7.2 What are the differences between formal and informal communication?
Formal communication occurs within the formal chain of command defined by an
organization. Informal communication occurs outside formally authorized channels
within an organization’s hierarchy.
Explain external communication and crisis management.
External communication is a meaningful exchange of information through messages
transmitted between an organization and its major audiences, such as customers,
suppliers, other firms, the general public, and government officials. Every
communication with customers should create goodwill and contribute to customer
satisfaction. However, all of this is threatened when companies experience a public crisis
that threatens their reputations or goodwill. To manage a public crisis, businesses should
respond quickly and honestly, with a member of top management present.
EXTERNAL COMMUNICATION AND CRISIS PowerPoint Slide 24

MANAGEMENT
1. External communication is a meaningful exchange of
information through messages transmitted between an
organization and its major audiences.
a. Used to keep operations functioning, maintain Class Activity: Ask
positions in the marketplace, and build students for examples of
customer relationships with information. organizations that
handled communication
surrounding a crisis in an
effective manner.
b. Every communication with customers should Going Green: SC
create goodwill and customer satisfaction. Johnson Company Goes
Green and Beyond
2. When dealing with a public crisis, putting together a Lecture Enhancer: Share
plan of action and dealing with facts and rumors a recent example of a
immediately could be the difference between company that did not
regaining trust and disaster. follow one or more of
these steps. What were the
consequences?

3. The following communication steps can help calm a Lecture Enhancer: Share
public relations crisis: a recent example of a
company that did not
follow one or more of
these steps. What were the
consequences?
a. Respond quickly with a prepared, written
statement.
b. Put top management in front of the press
immediately.
c. Stick to the facts when answering reporters’
questions; do not speculate.
d. If you do not know, offer to find out.
e. Acknowledge problems, explain solutions, and
welcome feedback.
f. Speak briefly and clearly and provide visual
images.
Going Green:
SC Johnson Company Goes Green and Beyond Summary
SC Johnson Company was recently recognized by the Environmental Protection Agency
(EPA) for its environmental considerations after they met their projected annual goals to
become more sustainable. They report reducing greenhouse gases by 40% in the last
decade. In addition, global manufacturing waste has been reduced by 62 percent. The
largest company plant in Wisconsin will harness wind energy, as well. SC Johnson
Company also reaches out to customers to let them know how green their products are,
informing them online, on product packaging, and via phone.
1. Is SC Johnson doing a good enough job communicating its green efforts to
customers? Why or why not?
SC Johnson is doing a successful job at informing their customers about their
sustainable efforts because customers will see the information right on the products
and can be confident that they are buying something green. However, SC Johnson
could continue their efforts by having more campaigns, commercials, etc. that inform
the public about their efforts.
2. How do you think the company’s regular reporting about these efforts affects
the results?
The company’s regular reporting will help them gain more customers as consumers
like to know where their products originated from and whether they are sustainable.
Also, all of the positive feedback will encourage SC Johnson to continue researching

how to make their products greener while encouraging other companies to do the
same.
8.1 What is external communication?

transmitted between an organization and its major audiences.
8.2 What is the first thing a company should do when a public crisis occurs?
The firm should respond quickly by preparing a written statement that includes the time,
place, description of the event, and the number and status of people involved.
Answers to Review Questions
1. How do companies benefit from empowering their employees? How do

employees benefit from empowerment?
Companies benefit from employee empowerment because it taps the brainpower of
workers, frees managers from hands-on control, and motivates workers. It also can result
in increased loyalty and dedication among its employees, resulting in higher-quality
products and services.
Employees benefit from employee empowerment through an increased sense of
appreciation for their work, increased motivation, and enjoyment of their work.
Employees also may benefit financially from such programs as ESOPs, etc.
2. How might a firm that manufactures shoes use teams to determine ways to
improve its environmental standards in terms of products and processes? What type
(or types) of teams would be best for this initiative? Why?
Each team could focus on one aspect of the shoe business’s operations and functions.
Teams could be assigned, for instance, to review and list opportunities in the accounting,
human resources, manufacturing, shipping, advertising, etc. areas. Then, the teams could
share and compare their ideas with other teams. A cross-functional team would combine
the expertise of the various areas to optimize and implement the team’s solutions.
3. How do team level and team diversity affect team performance?

• Level is a measurement that weighs the talent and background of the group as a
whole, so it affects performance by setting certain standards for members’ skill
sets or expertise.

• Diversity is a measurement that looks at how wide the range is and how different
the traits are among team members, so it affects performance by drawing
individuals with varied talents, backgrounds, and viewpoints.
4. What are the characteristics of an effective team? Why are these features so
significant?
The characteristics of an effective team include team size, team level, and team diversity.
• Size is important because different tasks require greater or fewer participants,
and a team’s number can determine success or failure. Six or seven members
often are ideal. Very small groups have a stronger need to get along, favor
informal interaction, may end up discussing personal topics, and make few
demands on members. Very large groups may see slower decision making, less
participation or commitment, higher absenteeism and turnover, more
disagreement and conflict, or the formation of subgroups.
• Level is important because it helps judge the overall ability, experience, and
personality within a group, and it determines how much a team can handle.
• Diversity helps determine the differences among members in terms of their own
ability, experience, and personality, so it measures how well the group represents
a wider population and a broad range of views.
5. At what stages of development might a team not be able to move forward? How
might a team leader or manager resolve the situation?
A team might stop progressing during the storming stage if the group gets caught up in
frivolous arguments or irrelevant personality conflicts. The performing stage could drag
on if certain members do not complete assigned tasks, conflicts arise that are not
resolved, or the team’s proposed actions are not taken for some reason.
The team leader could arrange a meeting with all team members and simply
begin by saying “there appears to be a team dynamics issue and we need to discuss and
resolve this, without any personal attacks.” Ideas could be generated that can get the
team back on track.
6. Describe the norms associated with your business class. How do these norms
influence the way students behave in class?
Answers will vary, but some may refer to class expectations regarding dress, use of
electronic devices during class time, and absenteeism or tardiness.
7. What steps can managers take to resolve team conflict?

Managers can facilitate good communication so that teammates respect each other and
are free to disagree with each other, evaluate situations or conditions in the workplace

that might be causing conflict, and engage the staff in team-building exercises and role-
playing.
8. In what ways is context a powerful influence on the effectiveness of

communication? Describe an instance in which situational or cultural context has
influenced one of your communication processes.
Communication in low-context cultures tends to rely on explicit written and verbal
messages. Communication in high-context cultures depends not only on the message itself
but also on the conditions that surround it. Any form of communication must match the
context of its culture in order to be interpreted correctly.
Specific instances will vary.
9. What are the benefits and drawbacks of oral and written communication?
• Oral communication advantages: Face-to-face oral communication allows people
to combine words with such cues as facial expressions and tone of voice. Oral
communication over the phone allows people to hear the tone of voice and provide
immediate feedback by asking questions or restating the message.
• Oral communication disadvantages: If one person is agitated or nervous during a
conversation, noise enters the process. The immediacy of oral communication can
lead to speaking before thinking. Immediately after listening to a message, the
average person can recall only half of it.
• Written communication advantages: Effective written communication reflects its
audience, channel carrying the message, and appropriate degree of formality.
• Written communication disadvantages: Poorly written communication reflects very
poorly upon the writer and can provide permanent, negative evidence.
10. What is the role of external communication? Why is it so important to

companies?
transmitted between an organization and its major audiences (customers, suppliers, other
firms, government officials, and the general public). The central focus always should be
the customer, and every communication with customers should create goodwill and
contribute to customer satisfaction. External communication is vital to companies
because it creates and reinforces a corporate and brand image.

Projects and Teamwork Applications
1. Discuss the concepts of authority, accountability, and responsibility. Who has the
authority in a school setting? In the classroom? What is the difference between
accountability and responsibility as a student? Provide several examples.
2. Is teamwork more important than skill? In pairs or in groups, discuss the importance
of an organizational culture that includes teamwork and collaboration over an
organization that lacks such traits. Using sports as an analogy, why is it that a team
with weaker players but stronger cohesiveness and collaboration can beat a team with
stronger, more-skilled players? If you had to choose, would you select the team with
stronger collaboration or the one with more skilled players? Discuss your reasoning.
3. Try this listening exercise with a partner. First, spend a few minutes writing a
paragraph or two about the most important thing that happened to you this week.
Second, read your paragraph out loud to your partner. Next, have your partner read
his or her paragraph. Finally, take turns summarizing the most important points in one
another’s stories. How well did you listen to one another?
4. On your own or with a classmate, visit the college library, a mall, or anywhere else
people gather. For about 10 or 15 minutes, observe the nonverbal cues that people
give each other. Does the librarian smile at the students? What is the body language
of students gathered in groups? When you leave the venue, jot down as many of your
observations as you can. Notice things such as changes in nonverbal communication
when someone joins a group or leaves it.
5. Every day we hear news about companies in crisis. Either online or through media
reports, find and research a recent event and how the company used external
communication to address the crisis. Review the communication steps outlined in the
chapter and discuss whether the company follows these steps.
Web Assignments
Note: Internet Web addresses change frequently. If you do not find the exact sites listed,
you may need to access the organization’s home page and search from there or use a
search engine such as Bing or Google.

1. Team-building exercises. The Web site Team-Building-Bonanza.com is “the

motherlode of corporate team building ideas.” You want to select a team-building
exercise to help resolve conflicts. What are some of the suggested activities?
http://www.team-building-bonanza.com
2. Writing better business letters. Assume you would like to improve your
business letter-writing ability. Using a search engine, such as Google or Bing,
search the web for sites with tips and suggestions to improve letter-writing skills.
(An example is shown below.) Select two of these sites and review the material.
Prepare a brief summary.
http://writingcenter.unc.edu/handouts/business-letters/
https://owl.english.purdue.edu/owl/resource/653/01/
3. Teamwork at Whole Foods. Go to the Whole Foods website and learn more
about the importance of teams and teamwork on the “Company Values and
Mission” page. Discuss, along with additional research, if necessary, the
company’s organizational structure and the importance of collaboration and
teamwork.
www.wholefoodsmarket.com
Case 9.1
Southwest Airlines Thrives on Customer Service

For anyone doubting that customer service affects a company’s bottomline, Southwest
Airlines, with a reputation for “fast, fun, and friendly,” has an answer. The Dallas-based
carrier has been top ranked in customer satisfaction for 20 straight years and is the only
major airline that consistently is profitable. Its 46,000 employees also voted the airline
into the top 50 places to work in Glassdoor’s annual Employee Choice Awards, based on
company culture, benefits, pay, and communication.
Answers to Questions for Critical Thinking
1. How does Southwest’s customer service affect its bottom line?

Southwest’s customer service will likely increase Southwest’s bottom line because even
without tacking on extra service fees, they will have more customers and therefore more
profit than other airlines. Customers will continue to do business with Southwest while
informing others about how the airline has stellar service.
2. Among 47 industries, airlines overall earn the lowest customer satisfaction

score. What could they learn from Southwest?

Other airlines could study the strategies of Southwest and learn that customer
satisfaction is key to high profits rather than charging high fees. Southwest demonstrates
that putting customer needs over everything else is key to successful business.
Case 9.2
Merrill Lynch Tells its Advisors: Join a Team

The Merrill Lynch Client Experience Achievement Award may sound more like a sales
award than the company’s latest effort to inspire and compensate team building within its
ranks. To encourage teams, Bank of America-owned brokerage firm Merrill Lynch has
offered its 14,000 financial advisers a bonus equivalent to 10 percent of increased
revenues if they double it over the next five years – and if they join a team. According to
the country’s largest brokerage firm (by assets), clients are provided a more holistic
approach and increased interaction through an updated approach with a team structure.
1. What incentive is there for an adviser who has an established clientele to join a
team?
Joining a team can actually enhance an adviser’s business through increased and deeper
interaction with team members who specialize in certain areas like trust, lending, and
financial planning. Rather than relying on a single individual, when a client has a
question, there is a range of team mates to get an answer. A bonus is another of the
incentives for an adviser with an established clientele to join a team. There will,
however, be advisers who prefer to “fly solo” rather than share clients. While teams are
encouraged, they’re not required.
2. What are the benefits for the clients and for Merrill Lynch of a team approach to
managing investments?
A team approach to managing investments provides a client with complementary skills of
team members, a broader depth of experience, and more than likely, specialized product
knowledge. In addition, there is a built-in succession planning element, whereby if one
adviser leaves, the remaining team members are well aware of the client’s needs. This
makes account transitions easier. Upon retirement, advisers 55 years of age and older
remain up to four years in a consulting role. The benefits to both Merrill Lynch and its
clients include enriched and deeper relationships and a deeper and wider knowledge
base to deal with changing clients’ needs.

Case 9.3
Necco Empowers and Engages Employees

If you’ve ever received a box of candy hearts with cute sayings imprinted for Valentine’s
Day, you have the New England Confectionary Company, or Necco for short, to thank.
Behind the scenes of the 150-year-old tradition of Conversation Hearts is a collaborative
and empowered group of 150 employees who work in teams at the company’s
headquarters in Revere, MA. A company executive bearing the title, “Lean Champion,”
is mandated with empowering the workforce, building awareness, and capturing energy
and passion among employees. Similarly, employee training needs and strategies to
perform jobs more collaboratively and efficiently are part of Necco’s culture of
expansion, rebuilding, and improvement. Employee engagement is supported at every
level of the organization. The employees are champions, and there are executives who
continue to champion for their cause.
1. Give three specific reasons why empowerment is key to Necco’s success. Provide
examples of how Necco empowers its employees.
Three specific reasons why empowerment is key to Necco’s success:
• Necco employees are given a voice – input is solicited and employees are
considered “experts” in their work areas.
• The company actually has an executive whose role as “lean champion” is
to advocate for employees – this includes training, engagement, building
awareness, and maintaining the momentum of employee passion.
The company’s culture is one of expansion, rebuilding, and improvement – this
requires employee participation.
Necco empowers its employees by:
• Linking rewards to company and departmental performance (an example
of team building)
• Giving them a voice and soliciting feedback and advice about process and
product (discontinuing its all-natural wafers, for example)
• Providing and evaluating ongoing training needs, identifying tools to do
jobs more efficiently, and encouraging collaboration.
2. Select the concept of a problem-solving team or a self-managed team. How might

this team function at Necco? Who might be on the team, and what role might the
team have in the running of the company?
A problem solving team at Necco might be assembled to evaluate how to increase the

manufacturing or production of one of its products which could result from machine
limitations or lack of capacity during the busy Valentine’s Day season. Product
freshness and product delivery are also issues pervasive in candy manufacturing. A
self-managed team, on the other hand, has the authority to change how they get their
work done, so such a team may approach any of the abovementioned issues in their
own way, and on their own terms.
3. Give an example of a situation in which informal communication would work

well among Necco employees – either on the production floor or among its top
leadership team.
Informal communication is more flexible and open than formal communication.
Similarly, a social bond between employees at all levels of the organization is
created.
Within an organization experiencing rapid changes, informal communication can fill
the void of information yet to be disseminated by senior officials.
Informal communication may help keep people honest. For example, if there is a
behavior that an employee may not want others to know about (work ethic, for
example), it’s likely to be “found out” through informal communication channels.
Informal communication doesn’t have to be the equivalent of gossip – at Necco, it can
be an excellent bridge for idea exchange and open problem solving among
employees.
4. Describe the five stages of team development, and provide an example of what
each stage might look like at Necco.
Stage 1: Forming
A new group working on the wafer line to increase output and manage productivity,
might have an orientation period during which team members get to know one
another, thereby finding out what behaviors are acceptable to the group.
Stage 2: Storming
During this stage, team members may clarify their roles and expectations – some may
be working directly on the embossing of the wafers, while others may be involved
with quality assurance mixing of the wafer batter.
Stage 3: Norming
At this stage, differences between members may result, and resolution will take place
during which time members accept each other.
Stage 4: Performing
During this stage, there may be issues with wafer production, so members will be
focused on problem solving and accomplishing and meeting production tasks and
goals.
Stage 5: Adjourning

Members have resolved the output and productivity issues which once resulted on the
wafer line, for example. The task has been completed, and experiences of members
and wrap-up is accomplished.
Collaborative Learning Exercises
1 – Virtual Teams
Learning Objective: 2
Purpose: To give your students a chance to better their understanding of the nuances of
being part of a virtual team.
Background: It is common in today’s global environment to work on a geographically

dispersed team without ever meeting team members face-to-face. Known as virtual
teams, members communicate by way of electronic means.
Relationship to Text: Distinguishing the Five Types of Teams - 2
Estimated Class Time: Approximately 15 minutes
Preparation/Materials: None
Exercise: Divide your class into groups of approximately four students, and challenge
them to discuss what it would be like as a team member of a virtual team. How would
work responsibilities be structured, and what would communication patterns be like?
Assign one of the virtual team types below to each group. Have each group
discuss the nuances, including the benefits and drawbacks of working in each type of
virtual team.
• A geographically dispersed team of members, not necessarily from the same
organization
• Task oriented teams of highly skilled professionals which last for a very short
period of time
• Geographically distributed members, consisting of highly skilled
professionals, and operating from different time zones
• Team members that perform a particular function within the organization
(finance, marketing, and so on)
• Service teams offering customer support, technical support, data support and
maintenance, data analysis, and so on

2 – More Teamwork in Action
Learning Objectives: 3, 4, and 5
Purpose: To provide your class with another opportunity to experience and analyze
teamwork.
Background: American business is moving toward a team-oriented approach across

virtually every industry. This exercise is designed to give students another chance to hone
their understanding of teamwork and to develop their personal team-working skills.
Relationship to Text: Team Development and Roles – Learning Objectives 3, 4, and 5
Preparation/Materials: You will need plenty of newspapers and a roll of masking tape for
each group of three to five students.
Exercise: Announce that the purpose of this exercise is for each group of students to use
the newspaper and tape to build the best possible tower that they can build in 15 minutes.
Before you divide the class into groups, help them determine the criteria for
“best” (e.g., tallest, widest, wackiest, etc.). Quickly brainstorm the possibilities, and as a
class, vote on three to five criteria. Then, divide the class into groups of approximately
five students. Earmark one student per group to be the observer, and let the building
begin!
When you call time, ask the observer from each group to present the tower and to
comment on the group process. Encourage observers to cover key issues such as how (or
whether) a leader emerged, how much time the group spent planning their approach, and
how the group resolved conflict.
3 – Effective Communication
Purpose: To demonstrate the impact of noise on effective communication.

Background: Messages of all kinds in American business too often are transmitted
through a number of people before they reach their intended recipient. This exercise is
designed to vividly demonstrate how messages can become distorted when they pass
through a chain of communicators.
Relationship to Text: The Process of Communication – Learning Objective 6
Preparation/Materials: Spend a few moments choosing a complex, multicolored

advertisement from a well-known magazine. A two-page spread is most effective.
Exercise: Divide your class into groups of five students. Ask the students in each group to
label themselves A–E. Direct all of the As to remain in the classroom, and all of the
others to step outside. Share the advertisement with the As. Encourage them to look very
carefully but not to take notes. Then, invite the Bs back into the room and direct the As to
describe the advertisement to the Bs. Repeat the process with the Cs, Ds, and Es, and do
not let any of the prior letter groups help the current letter groups describe the
advertisement. Finally, ask the Es to describe the advertisement to the class. The results
are usually both entertaining and enlightening; it often is hard to believe that they are all
describing the same advertisement.
Follow-up discussion: Which group did best? Why? What were the barriers to
communication? (Language often is significant.) How can they overcome these barriers?
Encourage them as communicators to summarize key points (rather than bogging down in
detail), and as message recipients to listen for key points and to ask clarifying questions.
4 – Choosing an Appropriate Channel of Communication
Purpose: To highlight the importance of choosing the most appropriate channel of

communication when conveying a particular message.
Background: Messages can be communicated through many different channels, including

face-to-face conversations, phone calls, email, texting, Skype, and more.
Relationship to Text: Basic Forms of Communication – Learning Objective 7

Preparation/Materials: None needed
Exercise: Begin with a brief discussion of the basic forms of communication. You may
want to review Table 9.2 with the class. Have students discuss the most common
communication channels used. Brainstorm other communication channels not included in
the list.
After the discussion, spend a few moments brainstorming with your class to come
up with examples of different types of communication scenarios. Examples might
include a performance review, a sales presentation to a bank looking to purchase
software, a crisis management situation for a company whose CEO has just been fired by
its board of directors.
The challenge: Once of a list of communication scenarios are compiled, have
students assign one or more channels for each type of scenario.
• Keep in mind that more than one communication channel can be used for each
scenario.
• Have students discuss and explain their reasoning when selecting the most
appropriate channel to deliver a message.
• Does the communication channel change based upon the type of message being
delivered?
5 – External Communication and Crisis Management
Purpose: To highlight the importance of external communication and crisis management

within an organizational context.
Background: Pig and horse DNA in products purportedly made from beef was discovered
a few years ago by the Food Safety Authority of Ireland. While horsemeat is not harmful,
the testing of beef products sold by several of Europe’s major supermarket chains found
DNA links to pigs and horses. Additional testing pulled more countries and brands into
the scandal. IKEA’s Swedish meatballs, Nestle, Bird’s Eye, Burger King, and many
others were found to contain horsemeat passed off as beef. Food manufacturers claim that
“mistaking” horsemeat for beef is not a safety issue, nor should it make you sick, unless
the horse was treated with a painkiller known as phenylbutazone, or “bute.”
The response by UK retailers Tesco, Iceland, Aldi, Lidl, Ikea, Asda and the Co-op, who
sold the beef products centered on food fraud rather than food safety. When it emerged
that one of Tesco’s products was 100 percent horsemeat, the company immediately

recalled the products, dropped two of its suppliers, and issued an apology in newspapers.
“We and our supplier have let you down and we are sorry,” read the apology.
Relationship to Text: External Communication and Crisis Management – Learning

Objective 8
Preparation/Materials: None needed
Exercise: Begin with a brief discussion of the crisis, and an overview of how it was
handled. Ask students whether they recall reading about the crisis in the media, and what
their initial responses were to it.
Then, ask your students to divide themselves into groups of up to four, and have
them brainstorm the ways they might have handled such a crisis.
1. Did retailers fail in their promise to supply customers with a promised product?
How could this crisis have been remedied?
2. Discuss Tesco’s placement of responsibility upon its suppliers rather than taking
responsibility. Does Tesco have the responsibility for the horsemeat and labeling
procedures, or does the horsemeat supplier have the responsibility to let Tesco know
about the contents of its product?
3. Tesco’s CEO addressed the crisis on the company’s website, by saying: “If some
of our customers are angry, so are we.” Is this an appropriate response to a crisis?
Discuss.
4. Tesco took measure to make its supply chain more transparent and trusted. Its
product testing became more rigid, and a “promises” section in its markets committed the
company to more sourcing from meat from the UK and Ireland.

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Glossary of Key Terms

Affective conflict: disagreement that focuses on individuals or personal issues

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Annotated Lecture Outline

Learning Objective 1: Discuss empowering employees. Managers empower employees

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a. Empowerment is giving employees authority Lecture Enhancer: In today’s

1. Sharing Information and Decision-Making Class Activity: Discuss with

b. Some companies give workers broad Hit & Miss:

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ii. An employer buys shares of the

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Hit & Miss:

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To enhance learning, gamification can be used as a skill building app to increase

Assessment Check Answers

1.1 What is empowerment?

1.3 How can managers empower employees?

TEAMS PowerPoint Slide 6

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i. Team members hold themselves Class Activity: What

c. A problem-solving team is a temporary Lecture Enhancer: Provide

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e. A cross-functional team is a team made up of Class Activity: Lead a

ii. They bring different perspectives to

Solving an Ethical Controversy:

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Assessment Check Answers

2.1 What is a team?

TEAM CHARACTERISTICS PowerPoint Slide 8

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i. An effective team leader will

i. The team leader recognizes the Class Activity: Discuss the

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Hit & Miss:

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3.1 Explain team level and team diversity.

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TEAM COHESIVENESS AND NORMS PowerPoint Slide 10

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b. They are informal guidelines that identify key

Assessment Check Answers

4.1 How does cohesiveness affect teams?

4.2 What is a team norm?

TEAM CONFLICT PowerPoint Slide 11

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a. Conflict and disagreement are inevitable in

c. Other causes include disagreements over task-

d. Although most people believe conflict should

b. Affective conflict focuses on individuals or

ii. These differences strongly decrease

Copyright © John Wiley & Sons, Inc. 9-15

iii. Often results in hostility, anger,

v.It prevents teams from engaging in

b. Evaluate situations or conditions in the

c. Use team-building exercises, listening

Assessment Check Answers

5.1 What is cognitive conflict, and how does it affect teams?

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5.2 Explain affective conflict and its impact on teams.

THE IMPORTANCE OF EFFECTIVE PowerPoint Slide 12