Lec6: Strategic planning

The five competitive forces that shape strategy by Michael E. Porter

Or Porter’s five forces
Established Customers Suppliers Entrants Substitute offerings
rivals

DEFINING STRATEGIC MANAGEMENT

Definition: Formulation and implementation of initiatives by top management,
taking in to account account resources and environmental opportunity
Organizational strategies: Plans for competition, customer attraction, and goal
achievement
Business model
Concept: How a company makes money
Focus:
+ Customer value: The perceived worth that a product or service brings to the
customer
+ Economic viability: The sustainability and profitability
IMPORTANCE OF STRATEGIC MANAGEMENT
Why is it important?
1. Performance impact: Strategic management influences organizational success
or failure. It results in higher organizational performance
2. Adaptability: Help managers cope with changing situations
3. Organizational cohesion: Enable diverse parts of an organization to work
towards common goals
Strategic management process
Strategic management process
Step 1: Identifying the organization’s current mission, goals and strategies
- Mission: The firm’s reason for being (The scope of its products and services)
- Goals: Measurable performance targets
- Strategies: have a basis for assessing whether they need to be changed
Step 2: Doing an external analysis
- The environmental scanning of specififc and general environments
+ Focuses on identifying opportunities and threats
+ Opportunities: positive trends. Threats: negative trends
External analysis - general environment
Political - Government policy
- Political stability
- Corruption
- Tax policy
- Labor law
 - Trade restrictions
Economic - Economic growth
- Exchange rate
- Interest rate
- Inflation rates
- Disposable income
- Unemployment rate
Social - Population growth rate
- Age distribution
- Career attutudes
- Safety emphasis
- Health consciousness
- Lifestyle attitudes cultural barriers
Techonology - Technology incentives
- Level of innovation
- Automation
- R&D activity
- Technological change
- Technological awareness
Environmen - Weather
t - Climate
- Environmental
- Climate chnage
- Pressures fromo NGO’s

Strategic management process

Threat of new entrants: The ease of difficulty with which new competitors can
enter an industry (ex.: cost advantages, access to inout, economies of scale and
strong brand identity)
Threate of substitues: the extent to which switching costs and brand loyalty
affect the likelihood of customers adopting substitues products and services (ex.
Swithcing cost)
Bargaining power of buyers: The degree to which buyers have the market
strength to hold sway over and influence competitors in an industry. Consumers
have power when they are fewer in number but there are plentiful seller and it’s
easy for consumer to switch
Bargaining power of suppliers: the relative number of buyers to supplier and
threats from substitutes and new entrants affect the buyer-supplier relationship
Current rivalry: intensity among rivals increases when industry growth rates slow,
demand falls, and product prices descend
Step 3: Doing an internal analysis
Assessing organizational resources capabilities, and activities:
Strengths create value for the customer and strengthen the competitive position
of the firm
Weaknesses can place the firm at a competitive disadvantage
Step 2+3= SWOT analysis
Step 4: Formulating strategies
SWOT: Combines external and internal analysis
Strategic alternatives: Develop and evaluate strategic options
Strategic selection: Select appropriate strategies for all levels in the organization
that provide relative advantage over competitors
Alignment: Match organizational strengths to environmental opportunities,
correct weaknesses and guard against threats
Types of strategies: Corporate, Competitive, Functional
Step 5: Implementing strategies

Step 6: Evaluating results

- How effective the strategies been at helping the organization reach its goals?
- What adjustments are necessary

Top-level managers: corporate strategies

Middle-level managers: competitive strategies
Lower-level manager: Functional strategies
Corporate strategies
Definition: top management’s overall plan for the entire organiation and its
strategic business unit
Types of corporate strategy
Growth:
Definition: expansion in markets/products through current/new
businesses
Growth driver:
+Concentration: focus on primary business. E.g: Buick’s push towards
luxury automobile
+Vertical integration: Controllling inputs/outputs
 Backward: gain control of input - Become own supplier
(Wmart tự cung cấp sữa)
 Forward: gain control of output - Control distribution
(Apple’s retail stores)
+Horizontal integration: Combine with competitors (Bank of America’s
mua lại ngân hàng khác)
+Diversification: Expand into new era, combine with businesses
 Related: google mua lại utube
 Unrelated: Vingroup
Stability: continue current operations without significant change
A strategy that seeks to maintain the status quo to deal with the uncertainty of a
dynamic environment
when the industry is experiencing slow-or-no conditions, or if the owner of the
firm elect not to grow for personal reasons
Renewal: Address declining performance
Definition: Developing strategies to counter organization weaknesses that are
leading to performance declines.
Strategies:
Refrenchment(khai thác): deal with non-critical short term issues, restore
strengths to overcome current performance problems
 Turnaround(quay vòng): addressing critical long-term performance problems
through the use of strong cost elimination measures and large-scale
organizational restructuring solutions.
Turnaround bigger scale than Refrenchment
CORPORATE PORTFOLIO ANALYSIS: Effectively manage a diverse business
portfolio
Key tool: Corporate portfolio matrix, such as the BCG Matrix
BCG Matrix insight:
Axes: horizontal: market share (low to high)
Vertical: projected market growth (low to high)

Stars: need substantial investments to capitalize on market growth and maintain

dominance. They transition to cashcows as their market mature
Cash cows: exploit for optimum gains, cap new investments, and use the funds
generated for stars and question marks
Question mark: managers face a dilemma. Some are sold, while other, after
rigorous analysis, are transformed into stars
Dogs: Recommended for sale or liquidation(thanh lý) due to minimal market
share in stagnating markets

COMPETITVE ADVANTAGE
Competitive advantage: An organization’s distinctive edge
Sustainable competitive advantage: Continuing overtime to effectively exploit
resources and develop core competencies that enable an organization to keep its
edge over its industry competitor.
Economic moat: term by warren buffet referring to a method of maintaining a
competitive edge. The wider the moad, the better
BUSINESS (COMPETITIVE) STRATEGIES
A strategy focused on how an organization should compete in each of its
SBUs(strategic business units)
Business strategies:

Cost leadership strategy Differentiation strategy

- Seeking to attain the lowest total - Attempting to create a unique and
overall costs relative to other industry distinctive product or service for which
competitors customers will pay a premium
Focused-cost strategy Focused-differentiation strategy
- Using a cost advantage to exploit a - Using a differentiation advantage to
particular market segment rather a exploit a particular market segment
larger market rather a larger market
Best cost strategy
Combine a strategic emphasis on low-cost with a strategic emphasis on
differentiation
Firms unable to develope either a cost or differentiation advantage become
“stuck in the middle” and lack prospects for long-term success
A few firms successfully pursue both dfferentiation and cost advantages (hybrid
strategy)
CURRENT STRATEGIC MANAGEMENT ISSUES
Strategic leadership: the ability to anticipate, envision, maintain, flexibility, think
strategically and work with others in the organization to initiate changes that will
create a viable and valuable future for the organization
Strategic flexibility: the ability to recognize major external environmental changes
to quickly commit resources and recognize when the strategic option isn’t
working
New directions in organizational strategies
- E-business strategies (e.g clicks-n-bricks strategy)
- Customer services strategies
- Innovation strategies
FUNTIONAL STRATEGIES: strategies by different organizational department to
support the competitive strategy. This cooverr marketing, finance, HR, R&D, etc

End of lec 6

TOPIC 7: Designing Organizational Structure

Introduction
 Traditional Views: Organizational structure often associated with rules, regulations,
defined jobs, and hierarchy.
 Chapter Focus: Key organizing concepts, when to prefer free-form structure, and when a

structured hierarchy is the best choice. 🎯

Six Key Elements of Organizational Design 🔑📊

 Modern Trends: Managers are rethinking traditional approaches to find more efficient
and flexible designs.
 Terminology:
o Organizing: Arranging and structuring work to meet organizational goals.
o Organizational Structure: Formal arrangement of jobs within an organization.
o Organizational Design: Process involving six key elements: Work specialization,
departmentalization, chain of command, span of control,
centralization/decentralization, and formalization.

Purpose:

+ Divides work to be done into specific jobs and departments

+ Assign tasks and responsibilities associated with individual jobs
+ Coordinates diverse organizational tasks
+ Clusters jobs into units
+ Establishes relationships among individuals, groups, and departments
+ Establishes formal lines of authority
+ Allocates and deploys organizational resources

Organizational design
📌 Section 1: Work Specialization 🛠️

 Definition: the degree to which tasks in the organization are divided into separate jobs
with each step completed by a different person
 Advantages:

o More efficient employees ✅

 Disadvantages:

o Potential for boredom, fatigue, stress 😫

o Poor quality, increased absenteeism 🚫

o Reduced performance, higher turnover 💔

📌 Section 2: Departmentalization 🏢

 Definition: The process of grouping jobs to ensure work is done in a coordinated and
integrated way.
 Types:

o Functional: By functions performed 📑

o Product: By product line 📦

o Process: Based on product or customer flow 🔄

o Customer: By type of customer and their needs 🧑‍🤝‍🧑

o Geographical: By territory or geography 🌍

📌 Section 3: Chain of Command 📊

 Definition: The continuous authority line that clarifies reporting relationships from upper
to lower organizational levels.
 Components:

o Authority: Rights of managerial position to command 🎖️

o Responsibility: Obligation or expectation to perform tasks 📝

o Unity of Command: One should report to only one boss 🤝

📌 Section 4: Span of Control 📋

 Definition: The number of employees a manager can effectively and efficiently

supervise.
 Factors affecting Span:
o Skills and abilities of the manager
o Employee characteristics
o Characteristics of the work being done
o Similarity of tasks
o Complexity of tasks
o Physical proximity of subordinates
o Standardization of tasks

📌 Section 5: Centralization and Decentralization 🌐

 Centralization: the degree to which decision-making is concentrated at a single point in

the organizations 🎯
 Decentralization: organizations in which decision-making is pushed-down to the

managers who are closest to the action 🌐

 Employee Empowerment: increasing the decision making authority (power) of

employees 💪

More centralization More decentralizationn

Environment is stable
Lower-level managers are not as capable or
experienced at making decisions as upper
level managers
Lower-level managers do not want a say to
decisions
Decisions are relatively minor
Organization is facing a crisis or the risk of
company failure
Company is large
Effective implementation of company
strategies depends on managers retaining
say over what happens
Environment is complex, uncertain
Lower-level managers are capable and
experienced at making decisions
Lower-level managers want a voice in
decisions
Decisions are significant
Corporate culture is open to allowing
manager a say to what happens
Company is geographically dispersed
Effective implementation of company
strategies depends on managers having
involvement and flexibility to make
decisions

📌 Section 6: Formalization 📜
  Definition: the degree which jobss are standardized and the extend to which employee
behavior is guided by rules and procedures

💡 Concluding Thoughts

Organizational design serves as the backbone of how efficiently and effectively a company
functions. From how tasks are specialized to how departments are structured, each element plays

a crucial role in overall performance. 👏🌟

Organizational Design and Structure

✨ Mechanistic vs. Organic Structures ✨

📖 Background: Two primary forms of organizational design are mechanistic and organic
structures

Mechanistic organization Organic Organization

A rigid and tightly controlled structure Highly flexible and adaptable structure

1. High specialization 1. Non-standardized jobs

2. Rigid departmentalization 2. Fluid team-based structure
3. Narrow spans of control 3. Little direct supervision
4. High formalization 4. Minimal formal rules
5. Limited information network 5. Open communication network
(downward) 6. Empowered employees
6. Low decision participation

In essence, while no organization is purely one or the other, the modern business trend
leans towards the organic model, valuing adaptability and flexibility over strict

hierarchies and rigid roles. 🌱🔄

Organizational Structures & Influences 📚

🔍 Selection of Organizational Structures 🔍

🔘 Contingency factors influencing the selection of organizational structures:

1. Overall strategy of the organization 📊

2. Size of the organization 📏

3. Technology use by the organization 🖥️

4. Degree of environmental uncertainty 🌪️

🎯 Strategy and Structure 🎯

 An organization's structure should facilitate goal achievement.

 Goals are pivotal to an organization's strategies.

 Hence, strategy and structure are intimately connected. 🔗

🔎 Size and Structure 🔎

 An organization's size distinctly impacts its structure. 📈

 After an organization surpasses a certain size, the influence of size on structure

diminishes. 📉

🖥️Technology and Structure 🖥️

Unit production Mass production Process production

Crafting items in units or Manufacturing items in Production of items through
small batches substantial batches ceaseless processes
Low vertical differentiation Moderate vertical High vertical differentiation
differentiation
Low horizontal differentiation High Low
Low formalization High Low
Most effective structure: Mechanistic Organic
organic

🌍 Environmental Uncertainty and Structure 🌍

  In stable and simple environments, mechanistic designs prove to be more potent. 🛠️
 With an increase in uncertainty, organizations lean towards the adaptability of an

organic design. 🌿

(stable+đơn giản -> machanistic, uncertain -> organic)

📚 Comprehensive Notes on Organizational Designs 📚

📂 Common Organizational Designs

1. Traditional Designs

 Simple Structure: Low departmentalization, wide spans of control, centralized authority,

minimal formalization. 🏢
 Functional Structure: Departmentalized by function - Operations, finance, HR, product

R&D. 📊
 Divisional Structure: Comprises separate business units or divisions with limited

autonomy, all under the control of a parent corporation. 🌐

2. Contemporary Designs

 Team Structures: Organization consists of work groups or self-managed teams of

empowered employees. 🤝
 Matrix & Project Structures: Specialists from various functional departments work on

projects led by project managers. 📑

 Boundaryless Organization: Flexible and unstructured design aiming to eliminate
barriers between the organization and its external entities. Uses virtual or network

designs to achieve this. 🌐🔗

 Virtual Organization: A core group of full-time employees with temporary specialists

hired as opportunities arise. 💼🌐

  Network Organization: Small core that outsources major functions (e.g., manufacturing)
to focus on core competencies. Includes Modular Organization for manufacturing -

outsources product components for final assembly. 🌐🔗

3. Other Concepts

 Task Force/Ad hoc Committee: Temporary teams addressing specific short-term inter-

departmental problems. ⏳🔍
 Open Innovation: Involves sourcing new ideas beyond organizational boundaries and
enabling easy internal and external innovation transfer.
o Benefits:
 Engages customers, addresses complex issues.
 Nurtures relationships, brings focus to the marketplace.
 Helps manage product development costs and uncertainties.
o Drawbacks:
 Managing demands, needing extensive support.
 Facing cultural challenges and the need for greater flexibility.
 Requiring significant shifts in knowledge control and sharing.

Sources: Lindegaard; Chesbrough & Garman; Gabor; Winsor.

4. Modern Work Arrangements

 Telecommuting: Work-from-home, connected to workplace via computers. 💻🏠

 Compressed Workweek: Longer daily hours, fewer workdays. 📆

 Flextime: Flexible scheduling with mandatory weekly hours. ⏰

 Job Sharing: Multiple individuals sharing one full-time job. 🔄

 Contingent Workers: Temporary, freelance or contract workers hired based on demand.

End of lec 7
Lecture 8: Organization culture
INTRODUCTION

🌱 Origins & Concept:

 Roots: Derived from cultural anthropology.

 Comparison: Similar to societies, organizations foster their own cultures.
 Characteristics: Cultures in organizations are shared, symbolically communicated, and
inherited by new members.

📚 Historical Context:

 Early Mentions: Notions of work group culture appeared in the Hawthorne studies.
 1970s Development: The search for organizational survival strategies in challenging
markets led to a focus on culture.
 1980s Milestones: Prominent publications by Deal and Kennedy, Ouchi, and Peters and
Waterman emphasized corporate culture.

📖 Literature Contributions:

 "Corporate Cultures": Deal and Kennedy.

 "Theory Z": William Ouchi.
 "In Search of Excellence": Peters and Waterman.
 These works engaged a broad audience and spurred focused research.

🏢 Organizational Recognition:

 Executive Awareness: Leaders acknowledged the tangible impact of organizational

cultures and the potential for managing them.

16-1: Levels of Organizational Culture

Organizational Culture Definition: a pattern of basic assumptions that are considered valid and
that are taught to new member as the way to perceive, think, and feel in the organization

Levels of Culture According to Edgar Schein:

1. Artifacts: These are visible elements like company symbols, rituals, and ceremonies.
They are the most tangible part of a culture, easy to observe but challenging to decipher.
2. Espoused Values, enacted values: These are the stated norms and rules that express the
values and beliefs of the organization.
3. Basic Underlying Assumptions: These are invisible, unconscious beliefs that truly drive
behavior in the organization. Taken for granted, invisible, preconscious

1. Artifacts
  Definition & Importance: symbols of culture in the physical and social work
environments. Include: personal enactment, ceremonies and rites, stories, rituals and
symbol
 Understanding Artifacts: To comprehend culture through artifacts means deciphering
their meanings, as they are central to studies of organizational culture due to their ease of
access.

1.1. 🎭 Personal Enactment: Reflecting Values

 Culture can be understood, in part through an examination of the behavior of

organization members
 Personal enactment by the top managers provides insight into the organization’s value
 Visa's Case Study: CEO Charles Sharf's tenure at Visa exemplifies personal enactment. By simplifying rules and
fostering a more cooperative environment, he led to a significant increase in Visa's stock and income.
 Eskimo Joe's Philosophy: Founder's Intent: Stan Clark focuses on quality over expansion, personally instilling the
company's philosophy in new hires, highlighting the impact of modeled behavior on shaping culture.

1.2.🎖️Ceremonies and Rites: Rituals of Value

 Role of Ceremonies: Organizational ceremonies and rites serve to celebrate and

reinforce the values aligned behaviors among employees.
o Southwestern Bell & AT&T: They use management training and ceremonies like graduations to
underline their values.
o Berkshire Hathaway's Annual Meetings: Known for their celebratory nature, with humorous
skits and celebrity cameos, emphasizing a unique corporate culture.

Ceremony and rites: relatively elaborate sets of activities that are repeatedly enacted on
important occasions
These occasions provide opportunities to reward and recognize employees whose behavior is
congruent with the values of the company
Individual who both espouse and exhibit corporate values are heroes to be admired

 Types of Rites: The text references a table categorizing six distinct rites in organizations.
1.3. Stories as Cultural Tools

 📖 The Power of Stories: Stories have a significant impact in reinforcing organizational

values, helping orient new employees by providing identity and meaning to the company.

 🌍 Cultural and Political Reach: Stories can cross cultural and political boundaries, like
the Walmart story, imparting the company's ethos globally.

Common Organizational Story Themes

1. Boss Stories: Reflect the human side of the boss and their reaction to errors.
2. Firing Stories: Narrate the circumstances around employee dismissals.
3. Relocation Stories: Discuss the company’s support for employees moving for work.
4. Success Stories: Talk about employees who rise from the bottom to top positions.
5. Crisis Handling Stories: Show how the company tackles tough times, like layoffs.
6. Status and Rules Stories: Illustrate the company’s stance on rule-breaking and status.

Integrity of Stories

 💬 Credibility of Stories: For stories to be effective, they must be genuine and match
reality. Stories not supported by true company practices can lead to distrust.

Storytelling Impact

 🚀 Motivational Stories at Southwest: Southwest Airlines uses stories to motivate and

align employees with company values.

1.4. Rituals and Symbols in Reinforcing Culture

 🔄 Rituals: These are daily practices that subtly instill 'the way we do things' in a
company.

 📛 Symbols: Objects or actions that represent organizational identity, like Nike’s swoosh.

 📈 Rituals at Facebook: Mark Zuckerberg's rituals and movie quotes aim to remind
employees of Facebook’s mission beyond profit-making.

Overall, personal enactments, rites and ceremonies, stories, rituals, and symbols are critical
in reinforcing the underlying values and culture of an organization.

2. 🌱 Values in Organizations

 Intrinsic Beliefs: Values are core beliefs dictating what is seen as good or bad.
 Articulation: consciously articulated, both in conversation and in a company’s mission
 Espoused vs. Enacted Values:
o Espoused: What members claim to value.
o Enacted: Values shown in actual behavior.
🔄 Values' Impact

 Internal Perception: Effective value communication boosts job satisfaction.

 External Perception: Treating employees well enhances their self-value.
 Health & Well-being: Cultures valuing health can boost performance and well-being.

3. Assumptions in Organizations

 Guiding Principles: assumptions are the deeply held beliefs that guide behavior and tell
members of an orgainzation how to perceive situations and people
 Unquestionable Nature: So ingrained that violating them is unthinkable. Assumptions
are often unconscious
 Edgar Schein’s Insight: Assumptions are the culture's essence.
 Awareness: Members may be not aware of their own assumptions -may be reluctant or
unable to discuss them or change them.

16-2. FUNCTIONS OF ORGANIZATIONAL CULTURE

1️⃣ Identity and Commitment: culture provides a sense of identity to members and
increases their commitment to the organization

2. Interpretation of Events: culture provides a way for employees to interpret the

meaning of organizational events

3️⃣ Reinforcement of Values: culture reinforces the values of the organization

4️⃣ Behavior Shaping: culture serves as a control mechanism for shaping behavior

🔍 Norms and Emotions

 Emotional Regulation: Culture influences how emotions are displayed.

 Work-Family Balance: A positive culture can minimalize work-related stress.

16-3. THE RELATIONSHIP OF CULTURE TO

PERFORMANCE
1️⃣ The Strong-Culture Perspective

 Definition: Strong cultures are unified, intense, and visible to outsiders.

 Performance Relation: Belief that strong cultures lead to better performance.
o Goal Alignment: Employees have shared goals.
o High Motivation: Shared values drive employee motivation.
o Control Without Bureaucracy: Offers guidance without oppressive structures.
 Questions Raised:
 o Economic Performance Creates Culture?: Unclear if performance leads to
strong culture or vice versa.
o Risk of Misdirection: A strong culture may resist necessary changes

2️⃣ The Fit Perspective

 Industry Compatibility: Culture's effectiveness is contingent on alignment with industry

demands.
 Performance Factors:
o Consistency with Industry: Cultures aligned with industry conditions aid in
better decision-making.
o Responsiveness to Change: Cultures often change too slowly to benefit
performance.
 Scope Limitations: Explains short-term performance but struggles with long-term
perspectives.
 Change Management: Indicates the difficulty of quick cultural change.

3️⃣ The Adaptation Perspective

 Environmental Adaptability: Cultures that facilitate organizational adaptation to change

are linked to high performance.
 Characteristics of Adaptive Culture:
o Confidence and Risk-Taking: Cultures that empower employees to take risks.
o Leadership that Drives Change: Leaders who are proactive in fostering change.
o Customer-Centric: Focuses on evolving customer needs.
 Evidence of Success: Studies show adaptive cultures correlate with better long-term
economic performance.
 Key Constituents: Considers interests of stockholders, customers, and employees.

Explanation of Table 16.2: Adaptive Versus Nonadaptive Organizational

Cultures

Adaptive
Core Management focus: A concern for
value customer, stockholders, and
employees is paramount
Value on change: emphasizes the
importance of people and processes
that contribute to meaningful
change, including leadership at all
levels
Common Attention to constituents:
behavior managers are attentive to customers
and other stakeholders
Initiative for change: there’s a
readiness to initiate change to serve
Nonadaptive
Management focus: mostly self-
concerned, focused on their
immediate group or
products/technology related to their
group
Value on process: they place higher
value on maintaining order and
reducing risks than on pursuing
leadership initiatives
Insular behavior: managers may
act in a politically safe, cautious
and bureaucratic manner
Resistance to change: there is a
general hesitance or inability to
 legitimate interests, accepting the quickly adapt to strategic shifts or
associated risks take advantage of new
opportunities in the market

Summary

🔍 Case Studies and Evidence

 Kotter and Heskett's Study: Showed a stark contrast between adaptive and nonadaptive
cultures.
 Financial Implications: Adaptive strong cultures potentially enhance financial results.

16-4. THE LEADER’S ROLE IN SHAPING AND

REINFORCING CULTURE

🌟 Leadership Influence on Culture

 Importance: Leaders are key in molding and reinforcing an organization's culture.

 Key Elements: Leaders influence culture through focus, crisis response, behavior,
reward allocation, and hiring/firing practices.

📌 Elements Detailed

1. Leaders' Focus:
o Communication: Leaders send messages about priorities and values based on
what they pay attention to.
o Consistency: Consistent focus provides clear signals; inconsistency leads to
confusion among employees.
2. Response to Crises:
o Impact: Leaders' actions during crises deeply affect the cultural understanding of
values, like the importance of employees.
o Observations: Employees learn about true company values by observing leaders
during tough times.
3. Leaders' Behavior:
o Modeling: Leaders' actions serve as a model for expected behaviors aligning with
the organizational culture.
o Influence: To instill cultural values like innovation, leaders must exhibit those
behaviors themselves.
4. Reward Allocation:
o Alignment: Rewards should reflect the organization's values to ensure
acceptance.
o Consistency: A misalignment between stated values and actual reward practices
can confuse employees.
5. Hiring and Firing Practices:
o Cultural Fit: Leaders reinforce culture by selecting new hires who align with the
organization's values.
 o Signals: Hiring questions and firing practices also communicate cultural norms
and expectations..

16-5. Innovation, Management, and Organizational Change

🌟 Importance of Innovation

 Innovation is crucial across various sectors: big corporations, educational institutions,

governments, and the military.
 It's a key aspect of a manager's role and has gained increased significance recently.

🔍 Managing Innovation

 Managers play a vital role in driving innovation within their organizations.

 This section discusses how managers can handle innovation and its related challenges,
including disruptive innovation.

🔄 Managing Change

 Change is categorized as organizational change, which can impact strategies, people,

structure, or technology.
 Change agents, who manage the process, can be internal managers or external
consultants.

🔁 The Case for Change

 Managers often need to initiate changes in the workplace.

 External consultants can offer objective insights but lack deep organizational knowledge.
 Internal managers have a better grasp of company specifics but may be overly cautious.

🔄 Necessity of Change in Management

 Change makes planning, organizational design, and decision-making complex.

 It's prompted by both external (consumer needs, laws, technology, economy) and internal
factors (strategy, workforce, equipment, attitudes).

📊 External and Internal Forces for Change

 External Forces: Changes in consumer demands, legal requirements, technology

advancements, and economic shifts.
 Internal Forces: New strategies, workforce changes, new equipment, and evolving
employee attitudes.

External Factors
 1. Changing Consumer Needs and Wants: Companies like Ford adapt by
exploring new customer preferences, such as car-sharing and electric bikes, while
Burger King's experience with menu expansion serves as a cautionary tale of
misalignment with customer desires.
2. New Governmental Laws: Regulatory changes across different countries
necessitate adaptations in business practices, like Singapore incentivizing robot
use in services, and China's evolving employment laws influencing management
strategies.
3. Changing Technology: The automotive industry's shift toward electric vehicles,
with research into battery technologies to increase range, exemplifies
technological evolution impacting business directions.
4. Economic Changes: Economic downturns, like the Great Recession, compel
businesses to alter operations, often leading to cost-cutting measures such as
layoffs, which can have a cascading effect on the economy.

Internal Factors

5. New Organizational Strategy: Walgreens pivoted from expanding retail

locations to enhancing customer service and competitive pricing, in response to
the economic pressures and competition.
6. Change in Workforce Composition: The increasing diversity of the workforce
in the U.S. presents challenges in maintaining a productive and inclusive work
environment.
7. New Equipment: Advancements in technology, like 3D printing, are
transforming industries by facilitating rapid prototyping and customized
production in fields such as healthcare and manufacturing.
8. Changing Employee Attitudes: Attitudes towards leadership and company
image tend to be less favorable in organizations undergoing significant changes,
necessitating managerial strategies that support and encourage employee
adaptability.

Calm Waters Metaphor:

 Analogy: An organization is like a ship on a calm sea.

 Premise: Change is like a storm, a rare disruption.
 Process: Kurt Lewin’s model: unfreeze, change, refreeze.
o Unfreezing: Preparing for change by altering forces that either push for or resist
change.
o Change: Implementing the actual changes.
o Refreezing: Reinforcing changes to establish a new equilibrium.
 Example: Germanwings’ response to the cockpit security issue was to implement new
rules requiring two crew members in the cockpit at all times.

White-Water Rapids Metaphor:

 Analogy: An organization is like a raft in constant, unpredictable rapids.

 Premise: Change is normal and managing it is ongoing.
 Characteristics:
o Rapid and constant changes in conditions.
o A need for continual adaptation and quick responses.

Comparisons & Implications:

  Calm Waters: Changes are infrequent and can be planned for.
 White-Water Rapids: Change is continuous; adaptability is crucial.
 Reality: Most modern managers face "white-water rapids" scenario.
 Consequence: Treating change as an occasional disturbance is risky.

Reactive vs. Proactive Change:

 Reactive: Responding after a change occurs.

o Example: Civil aviation’s rule changes post Germanwings crash.
 Proactive: Anticipating and preparing for change before it happens.
o Example: Ford’s proactive approach in exploring new technologies.

16-7. Organizational Change Areas

Four Main Areas of Change for Managers:

1. Strategy
o Changing strategy is crucial for adapting to new circumstances.
o Example: Ryanair shifted from low-cost, low-service to improving customer
service and removing excessive fees to stay competitive.
2. Structure
o Structural change is pivotal when transitioning from old practices to new market
demands.
o Example: Tsingtao Brewery moved from a state-run to a market-led structure,
decentralizing decision-making.
o Challenge: Organizations like the U.S. Postal Service struggle with structural
change due to external constraints.
3. Technology
o Adapting new technologies can improve efficiency and output.
o Example: Ford's use of wrist devices in Valencia for quality assurance.
4. People
o Changing behaviors and attitudes is a delicate process.
o Example: Scotiabank's implementation of OD techniques for strategic change in
sales and service, leading to successful nationwide adoption.

Key Takeaways:

 Organizational changes can include restructuring how work is done, who does it, and
adapting new technologies.
 Managers might need to consider cultural factors when applying change strategies
internationally.
 Organizational Development (OD) techniques are employed to improve the quality of
work relationships and facilitate personal change within an organization.

16-8. Managing Change

Resistance to Organizational Change:

 🏢 Change is often seen as a threat, creating organizational inertia.

  🔄 Key reasons for resistance include uncertainty, habit, concern over personal loss, and
belief that change isn't beneficial for the organization.

Uncertainty:

o 🎓🏭 Moving from college to a job or learning new quality control methods at work
represents a shift from the known to the unknown, breeding resistance.

Habit:

o 🛣️Humans rely on habitual actions to simplify life's complexity. Change disrupts

these patterns, causing resistance.

Fear of Loss:

o 💼✨ Change threatens existing investments in the status quo. The more invested, the
greater the resistance due to fear of losing status, relationships, or benefits.

Misalignment with Goals:

o 🎯 If change seems contrary to an organization's interests, it faces resistance.

However, positive expression of such concerns can be beneficial.

Overcoming Resistance Strategies:

 🗣️Education & Communication: Clarify the change's logic to counter misinformation.

 ✋ Participation: Involve affected individuals in decision-making to express concerns and

increase commitment.

 🤝 Facilitation & Support: Offer support like counseling or training to ease anxiety.

 💬 Negotiation: Offer concessions to powerful resistors.

 🎭 Manipulation & Co-optation: Covertly influence opinions about the change.

 💪 Coercion: Use threats or force as a last resort.

16-9. Managing Change

🔁 Leading Organizational Change

 Change is an everyday challenge in organizations.

  A study showed that most organizations had made major structural, technological, and
human resource changes.
 Effective change management requires the involvement of managers at all levels.
 However, many managers are not satisfied with their ability to implement change.

Korean Air’s Transformation

 Challenge: Korean Air, led by CEO Cho Yang-Ho, aimed to shift from a perceived
unsafe airline to a competitive international carrier.
 Strategy: Focus on safety and a systems approach to minimize personality-driven
decisions, countering Korea’s hierarchical culture.

Culture’s Resistance to Change

 Stability: Organizational culture is often resistant due to its stability and permanence.
 Strong Cultures: Companies with strong cultures, like IBM, are particularly resistant.
Lou Gerstner at IBM faced a tough challenge changing its tradition-bound culture.
 Time: Cultural change is a long-term process, measured in years, not weeks or months.

Conditions Favorable for Cultural Change

1. Crisis: A major crisis can prompt a reevaluation of the existing culture.

2. New Leadership: New leaders can introduce and enforce new values.
3. Organizational Age and Size: Younger and smaller organizations have less entrenched
cultures, making them more adaptable.
4. Weak Culture: Cultures that aren’t strongly established are more open to change.

Challenges to Developing Positive, Cohesive Culture

 Merger or Acquisition
 Developing a global organizational culture
 Developing an ethical organizational culture
  Developing a culture of empowerment and quality

End of lec 8

Lec 9: Groups and teams

Groups in Organizations

 Definition of a Group: A collection of two or more individuals who interact and depend
on each other to achieve certain objectives. Groups fall into two categories:
o Formal Groups: Defined by organizational structure with specific roles for
achieving company goals.
o Informal Groups: Form naturally around shared interests or friendships, such as
colleagues lunching together.

Group Development Stages

 Forming: Members join, begin to understand the group's purpose, and navigate initial
uncertainties.
 Storming: Characterized by conflicts over leadership and group direction.
 Norming: Relationships strengthen, and the group develops a cohesive identity and set of
norms.
 Performing: The group effectively works towards task completion with an established
structure.
 Adjourning: Temporary groups disband once their task is complete, leading to varied
emotional reactions.

Group Dynamics and Effectiveness

o Groups develop through the aforementioned stages, but not

necessarily in a linear fashion. The progression may involve
backtracking and overlap between stages.
o Effectiveness at each stage can vary; high conflict might enhance
performance under certain conditions.
o This non-linear development highlights the dynamic nature of
groups, emphasizing the need for managers to recognize and address
the specific stage-related challenges to improve group
functionality.

Application in Real Scenarios

o The stages of group development are evident in common experiences,

such as academic group projects, where initially, there's a
"feeling out" period followed by a struggle for leadership and
eventual establishment of roles, norms, and tasks.
o Success in these groups is not guaranteed merely by progression
through the stages; it is influenced by how well the group manages
interpersonal dynamics and adheres to set goals and structures.

Key Takeaways

o While groups in organizations may not face life-or-death outcomes

like firefighters, their ability to effectively navigate the
stages of development is critical to achieving objectives.
o Managers play a crucial role in guiding groups through these
stages, resolving conflicts, fostering cohesion, and ensuring that
 the collective efforts lead to the desired performance outcomes.
Understanding that groups are dynamic and may not follow a set
path is essential for managing them effectively.

Factors Determining Group Performance and Satisfaction

1. External Conditions: Groups are influenced by the organization's overarching conditions

including:

 Organizational strategy and authority relationships.

 Formal rules, regulations, and availability of resources.
 Employee selection criteria, performance evaluation systems.
 Company culture and the physical layout of workspaces.

2. Group Member Resources: Individual contributions are pivotal, encompassing:

 Knowledge, abilities, skills, and personality traits.

 Interpersonal skills like conflict resolution and collaborative problem-solving.

3. Group Structure: A well-defined structure within a group impacts performance through:

 Roles: Each member has expected behavior patterns based on their position within the
group, which can be oriented toward task completion or member satisfaction.
 Norms: Shared expectations within a group that govern members' behavior, such as work
output, attendance, and socializing.
 Conformity: The pressure to align with group norms can be strong, leading to positive
outcomes like cohesion or negatives like groupthink.
 Status Systems: The ranking or prestige within the group, which can be informally
conferred by the group or formally through organizational hierarchy.
 Group Size: The size affects how a group performs; smaller groups complete tasks more
quickly, whereas larger groups are better for diverse input and problem-solving.
 Social Loafing: Individuals may exert less effort in a group setting compared to working
alone, leading to free-riding behavior.
 Group Cohesiveness: The degree of attraction among group members towards each
other and their shared goals, which generally correlates with higher productivity.

Cohesiveness, Goals, and Productivity

o Cohesiveness in a group can lead to higher productivity when the group's attitudes align with its
goals. If cohesiveness is high but attitudes towards work are negative, productivity may decline.
o Conversely, when cohesiveness is low but goals are supported, productivity can still rise but not to
the potential of a cohesive and aligned group.

4. Group Process: processes that go on within a work group:

Group Decision Making

o Importance: Groups are frequently used in organizations for decision-making

through meetings, committees, and other assemblies.
o Advantages:
  Generate more complete information and diverse alternatives.
 Increase acceptance and legitimacy of decisions.
o Disadvantages:
 Time-consuming processes.
 Potential for minority domination or groupthink.
 Ambiguous individual responsibility.

Conflict Management

o Inevitability: Conflict is a natural occurrence in group tasks due to perceived

incompatible differences.
o Views on Conflict:
 Traditional View: Conflict is to be avoided, indicates problems.
 Human Relations View: Conflict is natural and inevitable, not
necessarily negative.
 Interactionist View: Some conflict is necessary for effective group
performance.
 Types of Conflicts:
 Functional Conflicts: Constructive, support group goals,
improve performance.
 Dysfunctional Conflicts: Destructive, prevent the group
from achieving its goals.
o Conflict Forms:
 Task Conflict: Concerns content and goals of work, can be positive if
moderate.
 Relationship Conflict: Almost always dysfunctional due to interpersonal
hostilities.
 Process Conflict: Should be minimal; excessive process conflict is
dysfunctional.

Group Task: the complexity and interdependence of tasks that influence a group’s effectiveness

o Diversity of Tasks: Groups may perform a range of tasks, from simple to

complex, and from routine to nonroutine.
o Task Complexity and Interdependence:
 Complex tasks benefit more from group discussions about alternative
methods.
 High interdependence requires effective communication and controlled
conflict for optimal performance.

Turning Groups into Effective Teams

Emergence of Team-Based Work Structures

o Team-based work has become a fundamental aspect of modern organizations.

o Teams are favored for their flexibility, responsiveness to changing events, and
ability to be quickly assembled and refocused.

Difference Between Groups and Teams

 o Work Groups: Share information to help each member perform better
individually, with one leader and individual accountability.
o Work Teams: Members work intensely on a shared goal, with shared leadership,
collective work, and mutual accountability.

Types of Work Teams

o Problem-Solving Teams: Focus on specific issues and suggest improvements but

often lack implementation authority.
o Self-Managed Work Teams: Operate independently and take on managerial
roles, controlling their work pace and making operational decisions.
o Cross-Functional Teams: Combine skills from various specialties to innovate or
solve problems.
o Virtual Teams: Use technology to collaborate across distances on common
goals.

Creating Effective Work Teams

Effective teams are characterized by:

o Clear Goals: Understanding and commitment to the team's objectives.

o Relevant Skills: Competence in both technical and interpersonal aspects.
o Mutual Trust: Belief in each other’s abilities and integrity.
o Unified Commitment: Dedication and loyalty to the team's success.
o Good Communication: Clear, efficient exchange of ideas and feelings.
o Negotiating Skills: Ability to reconcile differences and adjust roles.
o Appropriate Leadership: Coaching and facilitating rather than controlling.
o Internal and External Support: Proper training, performance evaluation,
incentives, and necessary resources.

Key Takeaways

The shift towards team-based work structures is driven by the multifaceted skills, judgment, and experience
required in modern tasks. Distinguishing between groups and teams is crucial for understanding the
dynamics and requirements for success in a collaborative environment. Effective teams are not just about
having skilled individuals but also about fostering trust, clear communication, and a unified commitment to
goals. Managers play a vital role in creating an environment that nurtures these qualities and supports teams
both internally and externally.

End of lec 9
Lec 10: Communication
Introduction to Communication Challenges

 Main Issue: Miscommunication is a significant source of office conflicts, national

disasters, and international incidents.
 Example: The tragic Tenerife airport disaster, where poor communication led to a
catastrophic collision between two jumbo jets, resulting in 583 deaths.

Chapter Focus

 Topics Covered:
o Interpersonal and organizational communication.
o Identifying and overcoming barriers to effective communication.
o Tips for becoming a better communicator.

Importance of Communication in Management

 Essential Skill: Effective communication is crucial for effective management.

 Role in Every Activity: Everything a manager does requires communication, from
gathering information for decision-making to conveying decisions.

Definition and Nature of Communication

 What is Communication?: It's the transfer and understanding of meaning.

 Key Aspects:
o Successful communication requires imparting and understanding the intended
meaning.
o Perfect communication occurs when the receiver understands the message exactly
as the sender intended.
o Misconception: Good communication is often mistakenly equated with agreement
with the message.

Types of Communication

 Interpersonal Communication: Between two or more people.

 Organizational Communication: Patterns, networks, and systems within an
organization.

Functions of Communication (15th Edition)

1. Management: Guides member behavior through formal and informal channels.

2. Motivation: Clarifies tasks, provides feedback, and helps in setting and achieving goals.
3. Emotional Sharing: Facilitates emotional expression and social interaction within work groups.
4. Persuasion: Can have positive or negative outcomes, influencing beliefs and actions.
5. Information Exchange: Essential for decision-making by providing necessary data.

🌟 This chapter underscores the vital role of communication in various aspects of management and
organizational functioning, emphasizing the need for clarity and understanding in all
communicative exchanges.

Current Version of 4 functions of Communication (14th Edition)

1. Control:
 o Description: Communication guides employee behavior within organizational
structures.
o Examples: Following job descriptions, adhering to company policies, addressing
grievances.
o Role of Informal Communication: Influences behavior through social norms
and peer interactions.
2. Motivation:
o Mechanism: Clarifies goals, provides feedback on performance, suggests
improvements.
o Importance: Essential for guiding employees towards achieving specific
objectives.
3. Emotional Expression:
o Function: Facilitates the sharing of feelings and satisfaction within work groups.
o Impact: Serves as a vital outlet for emotional and social needs of employees.
4. Information:
o Purpose: Provides the necessary data for decision-making and task execution.
o Challenge: Potential for misinformation and breakdowns, leading to confusion.
o Example: The Ryanair miscommunication about trans-Atlantic flights,
highlighting the need for accurate and timely information sharing.

Overview of Communication Process

 Initial Requirement: A purposeful message from the sender to the receiver.

 Steps Involved:
1. Source (Sender): Originates the message.
2. Message: The content to be communicated.
3. Encoding: Converting the message into symbolic form.
4. Channel: Medium through which the message is transmitted.
5. Decoding: Receiver interprets the sender’s message.
6. Receiver: The target of the message.
7. Feedback: Response from the receiver back to the sender.
 Noise Factor: Disturbances that hinder message transmission, like environmental sounds,
inattention, or technical issues.

Modes of Communication in Organizations

1. Oral Communication:
o Forms: Speeches, discussions, informal grapevine.
o Advantages: Speed, immediate feedback, social and emotional exchange.
o Disadvantage: Potential distortion when passing through multiple people.
2. Written Communication:
o Forms: Letters, emails, instant messaging, blogs, organizational publications.
o Usage: Predominantly through digital means like emails, social media, and apps.
3. Nonverbal Communication:
o Components: Body language, tone of voice, facial expressions.
o Roles:
 Conveys status, engagement, and emotions.
 Often more influential than verbal communication.
 Adds complexity to the interpretation of verbal messages.
o Limitations: Absent in written records like meeting minutes, leading to loss of
context.
Introduction to Communication Barriers

 Key Issue: Distortion in communication is common, caused by various barriers.

 Focus: Identifying specific barriers to effective communication.

Major Barriers to Communication

1. Information Overload:
o Definition: Occurs when information exceeds processing capacity.
o Example: A manager returning to 1,000 unread emails.
o Consequences: Ignoring, forgetting, or selectively processing information.
2. Filtering:
o Definition: Deliberate alteration of information to appear favorable.
o Examples: Employees tailoring information for managers.
o Influencing Factors: Organizational levels, culture, and use of direct
communication tools like email.
3. Emotions:
o Impact: Extreme emotions can distort rational thinking and interpretation.
o Consequences: Defensive behaviors and reduced mutual understanding.
4. Language:
o Challenge: Same words can have different meanings for different people.
o Influences: Age, education, cultural background, departmental jargon.
5. Silence:
o Nature: Defined by the absence of information.
o Meanings: Can indicate noninterest, withholding of communication, or
processing time.
o Consequences: Misinterpretation, especially in contexts of perceived
mistreatment or power imbalance.
6. National Culture:
o Impact: Cultural differences significantly affect global communication.
o Examples:
 Japanese preference for face-to-face communication over written formats.
 Latin American, Arab, and Asian reliance on context and nonverbal cues,
contrasting with German explicitness.
o Lesson: Importance of understanding and respecting cross-cultural differences.

🌟 This part of the chapter emphasizes the diverse and often subtle barriers that can hinder
effective communication in both domestic and international contexts. It underscores the need for
awareness and adaptability in communication strategies to overcome these barriers.

Strategies for Effective Communication

 Key Goal: Enhancing communication effectiveness by addressing common barriers.

Five Suggested Approaches

1. Use Feedback:
 o Purpose: To address misunderstandings and inaccuracies.
o Methods: Seeking verbal and nonverbal feedback, asking for message
restatement, observing actions for implied feedback.
o Benefit: Enhances understanding and accuracy.
2. Simplify Language:
o Strategy: Tailoring language to the audience.
o Example: A hospital administrator using different communication styles with
surgical staff and office employees.
o Caution: Avoiding jargon that could be misunderstood outside specific groups.
3. Listen Actively:
o Difference from Hearing: Active listening involves searching for meaning, while
hearing is passive.
o Challenge: Overcoming the tendency to talk more and listen less; dealing with
idle brain time due to the speech-comprehension speed gap.
o Solution: Focusing on full meaning without premature judgments.
4. Constrain Emotions:
o Issue: Emotions can cloud and distort communication.
o Advice: Calm down and control emotions before engaging in communication.
o Goal: To communicate more clearly and accurately.
5. Watch Nonverbal Cues:
o Importance: Nonverbal actions often speak louder than words.
o Focus: Ensuring nonverbal cues align with and reinforce verbal messages.

🌟 These strategies emphasize the importance of conscious effort in communication, whether it's
through careful listening, controlling emotions, or being mindful of nonverbal signals. They
highlight the need for adaptability and attentiveness in overcoming communication barriers.

Introduction to Organizational Communication

 Context: Understanding organizational communication by considering its structure.

Formal vs. Informal Communication

1. Formal Communication:
o Definition: Communication within organizational work arrangements.
o Examples: Managerial instructions, employee reports.
2. Informal Communication:
o Definition: Communication outside the structural hierarchy.
o Functions: Facilitates social interaction and can enhance organizational
performance.

Direction of Communication Flow

1. Downward Communication:
o Nature: From manager to employees, for informing, directing, and evaluating.
2. Upward Communication:
o Purpose: Employees providing feedback and ideas to managers.
3. Lateral Communication:
 oDescription: Among employees at the same level for coordination and time-
saving.
4. Diagonal Communication:
o Function: Across different departments and levels for efficiency, but can bypass
managers.

Communication Networks

 Combination of Flows: Forms various communication patterns.

 Types:
1. Chain Network: Follows formal command lines.
2. Wheel Network: Centers around a strong leader.
3. All-Channel Network: Free flow among all team members.
 Criteria for Effectiveness: Speed, accuracy, leadership emergence, member satisfaction.

The Grapevine (Informal Network)

 Importance: A vital source of information in organizations.

 Characteristics: Limited active participants, selective message transmission.
 Management Strategy: Analyzing and utilizing the grapevine for informal
communication.
 Evolution: Transition from face-to-face to digital platforms like social media.
 Advice for Management: Develop clear social media policies.

🌟 This section delves into the complexities of organizational communication, exploring various
forms and directions of communication flows within an organization. It highlights the
significance of both formal and informal networks, including the evolving role of the grapevine
in the digital age, underscoring the need for adaptive and strategic communication approaches in
modern organizations.

Evolution of Communication in the Digital Era

 Impact of IT: Profound changes in how, where, and when people communicate in
organizations.
 24/7 Work Environment: Enabled by IT, allowing constant connectivity and
collaboration.

Social Media's Role in Organizational Communication

1. Usage Examples:
o Channels for Information Sharing: Similar to HipChat or Facebook for internal
communication.
o Internal Video Portals: For updates on colleagues, products, and company
messages, akin to YouTube or Vimeo but internal.
2. Benefits: Enhances communication efficiency, encourages employee interaction and idea
sharing.
3. Downsides:
o Addiction and Distraction: High usage of social media can impact productivity.
 o Reduced Personal Interaction: Challenges in conveying complex, sensitive, or
emotional content.

Generation Z's Communication Preferences

 Preference for Digital Channels: Texting, email, social media.

 Workplace Challenges: Difficulty in conveying complex or sensitive messages digitally.
 Importance of Face-to-Face Communication: Essential for building trust, dealing with
complex or confidential issues.

Cybersecurity Concerns

1. Risks: Hacking incidents affecting sensitive information, as seen in Sony Pictures,

government databases, and companies like Target and Equifax.
2. Consequences: Breaches in customer trust, prolonged undetected breaches causing
extensive damage.
3. Precautionary Measures: Secure passwords, caution with downloads/emails, data
backups, Wi-Fi security, comprehensive antivirus and firewall protection.

🌟 This section outlines the significant transformation in organizational communication brought

about by the internet and social media, highlighting both the opportunities and challenges of this
digital shift. It also stresses the importance of cybersecurity in safeguarding sensitive
organizational data in an increasingly digital world.

Becoming a Better Communicator

 Context: Effective communication is a key component of managerial success.

 Focus Areas: Persuasion, speaking, writing, and reading skills.

Enhancing Persuasion Skills

 Importance: Vital for influencing others' thoughts or behaviors.

 Example: Richard Branson's effective telephone pitches for his magazine venture.
 Key Elements of Persuasion:
1. Clarity about the "who," "what," and "why."
2. Simplicity in presentation.
3. Addressing the listener's needs, motivations, and interests.
4. Combining rational and emotional appeals.

Improving Speaking Skills

 Relevance: Linked to career success; overcoming public speaking discomfort is crucial.

 Methods for Improvement: Practice through class presentations, joining clubs like
Toastmasters.
 Characteristics of Effective Speaking: Authenticity, humility, brevity, audience
awareness.
 Tip: Remember, brevity is appreciated in speeches.

Developing Writing Skills

  Goal: Communicate effectively in text appropriate for the audience.
 Business Writing Guidelines:
1. Plan before writing to ensure focus and avoid wordiness.
2. Be direct and concise.
3. Eliminate unnecessary words.
4. Avoid jargon and overly complex language.
5. Maintain professionalism, especially in formal business communications.

Enhancing Reading Skills

 Challenge: Managing high volumes of work-related written material.

 Skills Required: Effective comprehension and speed in reading.
 Recommendation: Enroll in reading-improvement classes if necessary.

🌟 This section highlights the crucial role of communication skills in managerial effectiveness,
offering practical tips and strategies to enhance persuasion, speaking, writing, and reading
abilities. These skills are presented as essential tools for successful career advancement and
effective organizational functioning.