CHAPTER 13

Effective
Communication and
IT Management

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• Learning Objectives (1 of 2)
13-1. Explain why effective communication
helps an organization gain competitive
advantage.
13-2. Describe the communication process.
13-3. Define information richness, and
describe the information richness of
communication media available to
managers.

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• Learning Objectives (2 of 2)
13-4. Articulate three reasons why managers
must have access to information to
perform their tasks and roles effectively.
13-5. Describe the advances in IT and their
impact on management and business
operations.
13-6. Explain the differences between six
different kinds of management
information systems.

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• Communication and Management
Communication
The sharing of information between two or
more individuals or groups to reach a
common understanding

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• Importance of Good Communication
Increased efficiency in new technologies and
skills

Improved quality of products and services

Increased responsiveness to customers

More innovation through effective

communication

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• The Communication Process (1 of 5)
Transmission Phase
Information is shared by two or more individuals or groups

Feedback Phase
A common understanding is assured

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• The Communication Process (2 of 5)
Figure 13.1

Jump to Appendix 1 for long image description.

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• The Communication Process (3 of 5)
Sender
Person or group wishing to share information

Message
Information that a sender wants to share

Encoding
Translating a message into understandable symbols or
language

Noise
Anything that hampers any stage of the communication
process
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• The Communication Process (4 of 5)
Receiver
Person or group for which a message is intended

Medium
Pathway through which an encoded message is transmitted
to a receiver

Decoding
Interpreting and trying to make sense of a message

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• The Communication Process (5 of 5)
Verbal Communication
The encoding of messages into words, either written or
spoken

Nonverbal Communication
The encoding of messages by means of facial expressions,
body language, and styles of dress

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• Information Richness and Communication Media (1
of 7)

Information Richness
The amount of information that a communication medium
can carry and the extent to which the medium enables the
sender and receiver to reach a common understanding
Managers and their subordinates can become effective
communicators by:
• Selecting an appropriate medium for each message—
there is no one “best” medium
• Considering information richness
A medium with high richness can carry much more
information to aid understanding.

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• The Information Richness of Communication Media (2 of 7)

Figure 13.2

Jump to Appendix 2 for long image description.

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• The Information Richness of Communication Media (3 of 7)

Face-to-Face
Communication
• Has highest
information richness
• Can take advantage
of verbal and
nonverbal signals
• Provides for
instant feedback

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• Topics for Discussion (1 of 5)
Why is face-to-face communication
between managers still important in an
organization? [LO 13-2, 13-3 ]

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• The Information Richness of Communication Media (4 of 7)

Management by Wandering Around

Face-to-face communication technique in
which a manager walks around a work area
and talks informally with employees about
issues and concerns

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• The Information Richness of Communication Media (5 of 7)

Spoken Communication Electronically

Transmitted
• Has the second-highest information richness
• Telephone conversations are information rich with
tone of voice, sender’s emphasis, and quick
feedback, but provide no visual nonverbal cues

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• The Information Richness of Communication Media (6 of 7)

Personally Addressed Written Communication

• Has a lower richness than the verbal forms of
communication but still is directed at a given
person
• Excellent media for complex messages requesting
follow-up actions by receiver

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• The Information Richness of Communication Media (7 of 7)

Impersonal Written Communication

• Has the lowest information richness
• Good for messages to many receivers where little
or no feedback is expected (such as newsletters,
reports)

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• Topics for Discussion (2 of 5)
Which medium (or media) do you think would
be appropriate for each of the following kinds
of messages a subordinate could receive from
his or her boss: (a) a raise, (b) not receiving a
promotion, (c) an error in a report prepared by
a subordinate, (d) additional job
responsibilities, and (e) the schedule for
company holidays for the upcoming year?
Explain your choices. [LO 13-3]

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• Impersonal Written Communication (1 of
2)
Information Overload
A superabundance of information that
increases the likelihood that important
information is ignored or overlooked and
tangential information receives attention

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• Impersonal Written Communication (2 of
2)
Blog
A website on which an individual, group, or
organization posts information, commentary, and
opinions and to which readers can often respond
with their own commentary and opinions
Social Networking Site
A website that enables people to communicate with
others with whom they have some common interest
or connection

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• Information and the Manager’s Job
Data
Raw, unsummarized, and unanalyzed facts
Information
Data that is organized in a meaningful fashion

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• Factors Affecting the Usefulness of Information

Figure 13.3

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• Attributes of Useful Information

Attributes
Quality The accuracy and reliability of available information affects
the quality of decisions that managers make using the
information.
Timeliness The availability of real-time information that reflects current
conditions, thereby allowing managers to maximize the
effectiveness of their decisions.
Completeness Complete information allows managers to consider all
relevant factors when making decisions.
Relevance Having information specific to a situation assists managers in
making better decisions.

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• What Is Information Technology?
Information Technology
The set of methods or techniques for acquiring,
organizing, storing, manipulating, and transmitting
information
Management Information System
A specific form of IT that managers utilize to
generate the specific, detailed information they
need to perform their roles effectively

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• Information and Decisions
Most of management is about making decisions.
To make effective decisions, managers need
information, both from inside the organization
and from external stakeholders.

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• Topics for Discussion (3 of 5)
What is the relationship between information
systems and competitive advantage? [LO 13-1]

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• Information and Control
Managers achieve control over organizational
activities by:
• Establishing measurable standards of performance
• Measuring actual performance
• Comparing actual performance against established
goals
• Evaluating the results and taking corrective action
if necessary

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• Information and Coordination
Managers use information technology to
coordinate department and divisional activities
to achieve organizational goals

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• Effects of Advancing IT
IT helps create new product opportunities that
managers can take advantage of.
IT creates new and improved products that
reduce or destroy demand for established
products.

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• IT and the Product Life Cycle
Product Life Cycle Figure 13.4
The way demand for a
product changes in a
predictable pattern
over time

Jump to Appendix 3 long image description.

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• Topics for Discussion (4 of 5)
How can information technology help in the new
product development process? [LO 13-3 ]

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• The Network of Computing Power
Network
Interlinked computers that exchange information
Four-tier network solution
• Common
• “External” mobile computing devices connect to
desktops and laptops, which then go through
“internal” rack servers to a company’s mainframe

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• Software Developments
Operating System Software
Software that tells computer hardware how
to run

Applications Software
Software designed for a specific task or use

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• The Organizational Hierarchy (1 of 2)
Traditionally, managers Drawbacks
have used the • Timeliness of
organizational information can be
hierarchy as the main reduced.
system for gathering • Information can be
information necessary distorted.
to make decisions and
• A tall structure can
to coordinate and make for an expensive
control activities. information system.

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• Six Computer-Based Management Information Systems

Figure 13.5

Jump to Appendix 4 for long image description.

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• The Organizational Hierarchy (2 of 2)
Information Distortion
Changes in meaning that occur as information
passes through a series of senders and
receivers

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• Types of Information Systems (1 of 3)
Transaction Processing Systems
• Systems designed to handle large volumes of
routine transactions
• First computer-based information systems
handling billing, payroll, and supplier payments

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• Types of Information Systems (2 of 3)
Operations Information Systems
• Systems that gather, organize, and summarize
comprehensive data in a form that managers can use in
their nonroutine coordinating, controlling, and decision-
making tasks
• Assist managers with nonroutine decisions, such as
customer service and productivity
Decision Support Systems
An interactive computer-based management
information system with model-building capability
that managers can use when they must make
nonroutine decisions
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• Types of Information Systems (3 of 3)
Artificial Intelligence
Behavior performed by a machine that, if performed by a
human being, would be called “intelligent”
Expert System
A management information system that utilizes human
knowledge embedded in computer software to solve
problems that ordinarily require human expertise
Enterprise Resource Planning (ERP) Systems
Multimodule application software packages that coordinate
the functional activities necessary to move products from the
design stage to the final customer

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• Topics for Discussion (5 of 5)
Many companies have reported that it is
difficult to implement advanced management
information such as ERP. Why do you think that
this is so? How might the roadblocks to
implementation be removed? [LO 13-4 ]

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• Types of Information Systems (6 of 6)
E-Commerce
Trade that takes place between companies
and between companies and individual
customers using technology and the Internet

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• E-Commerce Systems
Business-to-Business (B2B) Commerce
Trade that takes place between companies using
technology and the Internet to link and coordinate
the value chains of different companies
B2B Marketplace
An Internet-based trading platform set up to
connect buyers and sellers in an industry
Business-to-Customer (B2C) Commerce
Trade that takes place between a company and
individual customers using technology and the
Internet
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• BE THE MANAGER
As an expert in communication, how would you
advise Chen?

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