Organization Communication - Management
In many cases, we communicate information in nonverbal ways using groups of behaviors.
For example, we might combine a frown with crossed arms and unblinking eye gaze to
indicate disapproval.
1. Facial Expressions
Facial expressions are responsible for a huge proportion of nonverbal communication.
Consider how much information can be conveyed with a smile or a frown. The look on a
person face is often the first thing we see, even before we hear what they have to say.
While nonverbal communication and behavior can vary dramatically between cultures,
the facial expressions for happiness, sadness, anger, and fear are similar throughout the
world.
2. Gestures
Deliberate movements and signals are an important way to communicate meaning without
words. Common gestures include waving, pointing, and using fingers to indicate numeric
amounts. Other gestures are arbitrary and related to culture.
In courtroom settings, lawyers have been known to utilize different nonverbal signals to
attempt to sway juror opinions. An attorney might glance at his watch to suggest that the
opposing lawyers argument is tedious or might even roll his eyes at the testimony offered by
a witness in an attempt to undermine his or her credibility. These nonverbal signals are seen
as being so powerful and influential that some judges even place limits on what type of
nonverbal behaviors are allowed in the courtroom.
3. Paralinguistics
Paralinguistics refers to vocal communication that is separate from actual language. This
includes factors such as tone of voice, loudness, inflection, and pitch. Consider the powerful
effect that tone of voice can have on the meaning of a sentence. When said in a strong tone of
voice, listeners might interpret approval and enthusiasm. The same words said in a hesitant
tone of voice might convey disapproval and a lack of interest.
Consider all the different ways simply changing your tone of voice might change the meaning
of a sentence. A friend might ask you how you are doing, and you might respond with the
standard Im fine, but how you actually say those words might reveal a tremendous amount
of how you are really feeling. A cold tone of voice might suggest that you are actually not
fine, but you dont wish to discuss it. A bright, happy tone of voice will reveal that you are
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actually doing quite well. A somber, downcast tone would indicate that you are the opposite
of fine and that perhaps your friend should inquire further.
4. Body Language and Posture
Posture and movement can also convey a great deal on information. Research on body
language has grown significantly since the 1970s, but popular media have focused on the
over-interpretation of defensive postures, arm-crossing, and leg-crossing, especially after the
publication of Julius Fasts book Body Language. While these nonverbal behaviors can
indicate feelings and attitudes, research suggests that body language is far more subtle and
less definitive that previously believed.
5. Proxemics
People often refer to their need for personal space, which is also an important type
ofnonverbal communication. The amount of distance we need and the amount of space we
perceive as belonging to us is influenced by a number of factors including social norms,
cultural expectations, situational factors, personality characteristics, and level of familiarity.
For example, the amount of personal space needed when having a casual conversation with
another person usually varies between 18 inches to four feet. On the other hand, the personal
distance needed when speaking to a crowd of people is around 10 to 12 feet.
6. Eye Gaze
The eyes play an important role in nonverbal communication and such things as looking,
staring, and blinking can also be important nonverbal behaviors. When people encounter
people or things that they like, the rate of blinking increases and pupils dilate. Looking at
another person can indicate a range of emotions including hostility, interest, and attraction.
People also utilize eye gaze a means to determine if someone is being honest. Normal,steady
eye contact is often taken as a sign that a person is telling the truth and is trustworthy. Shifty
eyes and an inability to maintain eye contact, on the other hand, is frequently seen as an
indicator that someone is lying or being deceptive.
7. Haptics
Communicating through touch is another important nonverbal behavior. There has been a
substantial amount of research on the importance of touch in infancy and early
childhood.Harry Harlows classic monkey study demonstrated how the deprivation of touch
and contact impedes development. Baby monkeys raised by wire mothers experienced
permanent deficits in behavior and social interaction. Touch can be used to communicate
affection, familiarity, sympathy, and other emotions.
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In her book Interpersonal Communication: Everyday Encounters, author Julia Wood writes
that touch is also often used as a way to communicate both status and power. Researchers
have found that high-status individuals tend to invade other peoples personal space with
greater frequency and intensity than lower-status individuals. Sex differences also play a role
in how people utilize touch to communicate meaning. Women tend to use touch to convey
care, concern, and nurturance. Men, on the other hand, are more likely to use touch to assert
power or control over others.
8. Appearance
Our choice of color, clothing, hairstyles, and other factors affecting appearance are also
considered a means of nonverbal communication. Research on color psychology has
demonstrated that different colors can evoke different moods. Appearance can also alter
physiological reactions, judgments, and interpretations. Just think of all the subtle judgements
you quickly make about someone based on his or her appearance. These first impressions are
important, which is why experts suggest that job seekers dress appropriately for interviews
with potential employers.
Researchers have found that appearance can play a role in how people are perceived and even
how much they earn. One 1996 study found that attorneys who were rated as more attractive
than their peers earned nearly 15 percent more than those ranked as less attractive. Culture
can have an important influence in how appearances are judged. While thinness tends to be
valued in Western cultures, some African cultures relate full-figured bodies to better health,
wealth, and social status.
9. Artifacts
Objects and images are also tools that can be used to communicate nonverbally. On an online
forum, for example, you might select an avatar to represent your identity online and to
communicate information about who you are and the things you like. People often spend a
great deal of time developing a particular image and surrounding themselves with objects
designed to convey information about the things that are important to them. Uniforms, for
example, can be used to transmit a tremendous amount of information about a person. A
soldier will don fatigues, a police offers will wear a uniform, and a doctor will wear a white
lab coat. At a mere glance, these outfits tell people what a person does for a living.
Final Thoughts
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Nonverbal communication plays an important role in how we convey meaning and
information to others, as well as how we interpret the actions of those around us. The
important thing to remember when looking at such nonverbal behaviors is to consider the
actions in groups. What a person actually says along with his or her expressions, appearance,
and tone of voice might tell you a great deal about what that person is really trying to say.
References
Darwin, C. (1872). The Expression of the Emotions in Man and Animals, 3rd edition. New York: Oxford
University Press.
Wood, J. (2010). Interpersonal Communication: Everyday Encounters. Boston, MA: Wadsworth-Cengage
Learning.
BCO323 ORGANIZATIONAL COMMUNICATION
Please find below written instructions for your Mid - Term Assignment.
1. Please start with a brief introduction.
Part A. Please critically compare and contrast empathic and critical listening. I would
like you to use examples from your personal experience or research to support your
arguments.
Please design a set of guidelines for evaluating speaker’s message but also note
when it would be fitting to withhold judgment. Please make sure that your suggested
guidelines are well structured and justified.
Please give examples of four types of nonverbal behaviour and summarize the
importance of each in a specific organization or career field. Please make sure that
you demonstrate the significance of non-verbal behaviour by providing examples
from a specific organization or field that you are familiar with or you do have
personal experience.
Part B. Please explain why language is often a cause of miscommunication across
cultures. Please refer to our Webinar 3 and the issues discussed during our webinar.
Think of the diverse internal business environments
What can international managers do to minimize communication problems that stem
from language difference? Please provide examples of strategies to overcome
common barriers to effective communication in the contemporary organisational
context. Here you will need to act as a consultant and suggest ways for international
managers to deal with communication issues that stem from language difference.
Reflect on your own experience when possible. Do not forget to mention the
contemporary organisational context. How the current pandemic and online work
affected communication?
2. Please use a brief conclusion. It will add value to your assignment.
3. The word limit is 2000.
4. Please do not forget to add your bibliographical references. I will suggest that you
need in text citations to enhance the quality of your work.
As always please let me know if you need any further information
Please send me a draft of you work if you wish before your final submission. I will be
happy to provide you with my feedback.
Good luck with your Mid Term Assignment!
9 - 7 1 3 - 4 7 8
F E B R U A R Y 5 , 2 0 1 3
________________________________________________________________________________________________________________
Professors Jan W. Rivkin and Stefan H. Thomke and Europe Research Center Assistant Director Daniela Beyersdorfer prepared this case. HBS
cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or
illustrations of effective or ineffective management.
Copyright © 2013 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685,
write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be digitized,
photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School.
J A N W . R I V K I N
S T E F A N H . T H O M K E
D A N I E L A B E Y E R S D O R F E R
LEGO (A): The Crisis
In late 2004, Jørgen Vig Knudstorp faced the toughest challenge of his young career. A mere
thirty-six years old, Knudstorp had recently been named CEO of the LEGO Group – a long successful
toymaker with a world-renowned brand, but a company suddenly on the brink of financial collapse
(Exhibit 1). If Knudstorp failed to make the right decisions, and fast, the LEGO Group would likely
slip from the hands of its founding family and be swallowed up by one of the giant conglomerates
that increasingly dominated the toy industry.
Hard decisions faced Knudstorp at every turn. Should the LEGO Group fall back to the plastic-
brick product lines that defined its past, or should it continue into the new product lines that many
considered its future? Within the plastic-brick arena, should the company continue to make most of
its own products, or should it shift to a contract manufacturer? Why was the Group running out of
some products and awash in inventory of others? Why had complexity and costs risen so
dramatically and made so many products unprofitable? Indeed, why was Knudstorp struggling to
figure out which products were truly unprofitable and which made money?
The Toy Industry
As Knudstorp reflected on the LEGO Group’s crisis, he considered the evolution of the global toy
market. The industry booked wholesale revenues of $61 billion in 2004. The retail market for toys
grew at a steady pace of about 4\% per year, but demand for specific fad toys could surge or collapse
rapidly.
Industry observers noted a few important trends. First, fad toys seemed to be rising and product
life cycles declining, perhaps not surprising for an industry, as one journalist put it, “subject to the
whims of [kids] who can’t decide which shoe to put on which foot.”1 Second, in many parts of the
world, children had more after-school activities and less unscheduled time to play than in the past.
Third, for kids over three years old, demand had shifted toward technology, either in a toy itself or in
the form of toys coming with access codes to online worlds.2 As children gave up traditional toys
earlier for videogames and online activities, childhood became shorter and adolescence longer.
Parents were often torn between buying the toys their kids wanted and those they considered good
for their children.
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Thousands of toymakers served the world market, but increasingly, a handful led the industry.
Mattel, the world’s leading toymaker by revenue ($5.1 billion in 2004), featured brands like Fisher-
Price, Barbie, Hot Wheels, and American Girl dolls.3 Hasbro, the second largest player ($3.0 billion),
housed brands such as Transformers, Monopoly, GI Joe, Play-Doh, and Playskool. To win consumer
attention, retail shelf space, and sales, toymakers introduced new products, cut their wholesale
prices, sponsored cooperative ads and promotions with retailers, provided in-store support, and
advertised to consumers. The impact of new product introductions was muted by rapid imitation and
limited protection of intellectual property. To boost brand presence among consumers, toymakers
often licensed characters from media companies. Mattel, for example, was the “favored creator of
toys based on Disney and Pixar characters.”4
Toymakers increasingly manufactured in Asia, where labor was inexpensive and subcontractors
stood ready to produce goods on their behalf. The majority of toys sold in the U.S., for instance, were
manufactured in China by outside contractors, while global players such as Hasbro specialized in
new product development, sales, and marketing.
Toymakers went to market via diverse retail channels, including independent toy specialists,
chain stores, discount stores, department stores, and online stores. In choosing among toys to stock
their shelves, retailers focused on profit per square foot and consequently considered margin, turn,
and product space requirements. In a highly seasonal business in which consumers bought a large
fraction of their toys during the holiday season, retail purchasing occurred mainly in the second half
of the year.5 Retail competition had heated up in recent years. In the United States, for instance,
pressure from the likes of Wal-Mart and Target had driven Toys R Us, the nation’s largest toy chain,
to hire investment bankers to review its “strategic alternatives” in 2004.
Building the LEGO Group (1916-1992)
To the toy market, the LEGO Group brought a heritage that reached back to 1916, when Ole Kirk
Kristiansen, a humble carpenter, bought a wood workshop in the rural Danish village of Billund and
began to build houses and furniture for farmers. In 1932, he added wooden toys to his production
and chose the name LEGO, formed from the Danish words “LEg GOdt” (“play well”). Only later did
he learn that in Latin “lego” meant “I assemble.” Aiming for quality, he wrote on his wall, “Only the
best is good enough.”
Ole’s son Godtfred started working in the business in 1932 at age 12. In 1947, the firm became the
first in Denmark to buy a plastic injection-molding machine. By 1949, its portfolio had grown to 200
plastic and wooden toys, including the automatic binding brick, a forerunner of the modern LEGO
brick. In 1954, during a ferry ride to England, a purchasing agent complained to Godtfred that toy
departments were a mess: toys lacked a systematic organization. The comments moved Godtfred to
consider a “LEGO system of play.” Such a system began to form in 1958, when the company changed
the design of its bricks to match its current form. When a fire destroyed the LEGO Group’s wooden
warehouse in 1960, Godtfred discontinued wooden toy production. Knudstorp reflected:
Godtfred Kirk Christiansen bet the whole farm on one-third of his business, plastic toys,
and not just any toy – the brick. Godtfred Kirk Christiansen felt he had stumbled onto
something unique with this brick. You can build anything out of it. It doesn’t fall apart when
you throw it around. And you can add to this system forever as it allows you to create a new
toy every day, make endless variations, thereby inspiring and challenging a child’s
imagination and creativity. Godtfred Kirk Christiansen realized that in this system, the value
of play expands exponentially the more elements you have.
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LEGO (A): The Crisis 713-478
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In 1963, Godtfred laid out ten principles of “good play” that defined LEGO product characteristics
(Exhibit 2). By 1967, the company produced LEGO bricks in 218 distinct shapes. In 1977, Godtfred’s
son Kjeld Kirk Kristiansen joined the company’s management. Born in the same year as the brick,
Kjeld felt, in Knudstorp’s words, that “the LEGO brick is more than a toy. He knows what the brick
can be and what it can do for humanity.”
From early on, a strong culture of creativity at the LEGO Group favored the steady introduction of
new products and themes based on the brick system. The high quality of bricks and the standardized
spacing between studs ensured that all elements made after 1958 were compatible with one another,
resulting in enormous opportunities for creativity. The Group expanded its audience in 1968 with
larger “DUPLO” bricks for children under five and, in 1977, with the LEGO Technic line for teens. By
1980, about 70\% of Western European families with children under 14 owned LEGO bricks.
By that time, a three-phase production process lay at the heart of Group operations. First, in the
molding phase, injection-molding machines produced plastic elements in massive numbers. Because
it took a molding tolerance of 0.002 millimeters to make bricks clutch each other right, Godtfred
focused on developing industrial excellence and cutting-edge capabilities in material science and
production technology. Second, in the decoration phase, specialized parts were painted. Third, in the
packaging phase, the many small elements that made up a product were placed in a box along with
an instruction manual.
Godtfred controlled the company’s operations closely, and no new product, brick, or color was
introduced without his approval. Until the early 1980s, LEGO bricks came in five base colors: black,
white, red, blue, and yellow. Kjeld felt that the company’s sustained growth required new bricks, but
it took him 10 to 15 years to convince his father to add the color green. Kjeld also added new themes,
began to collaborate with the MIT Media Lab on robots in the mid-1980s, expanded into Eastern
Europe and Asia, and maintained a strong position in America and a leading one in Western Europe.
The LEGO Group enjoyed steady organic growth and profitability. By 1992, it was a top 10 global
toy manufacturer, and according to Advertising Age, accounted for about 80\% of the construction toy
market (which accounted for a few percent of the total toy market). With its products so popular
among consumers, LEGO Group management came to see retailers as “a necessary evil.” Christian
Iversen, Executive VP of LEGO Corporate Center, recalled:
We were used to stable growth and expansion, driven by our growing pipeline. This was
further fueled when the Berlin Wall came down, with millions of young Eastern Europeans
eager to get their hands on Western products. If anything, the LEGO Group worked hard to
control sales growth. The head of production, a strong person on Kjeld’s team, watched
production costs and capacity closely. When I joined in 1993, the first meeting I attended was
about how to shelve several product introductions so that projected growth would fall to the
target range of 8-10\%. We had such a grip on the market and unmet demand that we could
gradually add new products and more or less decide five years out what and how much we
wanted to sell.
The Growth Period That Wasn’t (1993-1998)
In the early 1990s, several shifts in the toy market caught the LEGO Group’s management by
surprise. Knudstorp explained:
Birth rates in our core markets—Western Europe and North America—declined, as did
household spending on toys. Between 1993 and 2003, the total profit pool in the industry
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713-478 LEGO (A): The Crisis
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decreased by 50\%. Traditional mom & pop stores started to disappear. Retail channels
consolidated, and mass discounters featured toys more aggressively. Mattel, Hasbro, and
others pushed manufacturing to the Far East. Finally, market research suggested that children
had less time for unstructured play, had shorter attention spans, and looked more for instant
gratification as well as fashionable and electronic products. These changes did not play to our
strengths.
In 1993, Kjeld Kirk Kristiansen suffered a severe illness and left the company for a year. Upon his
return, he built a five-person management team to help him run the company. Increasingly, Kjeld
pushed responsibility to frontline managers so they could be more responsive to market dynamics.
The head of production was dismissed. Growth became the new focus. Fueling the drive to grow was
a desire to leverage the LEGO Group’s position among the world’s top-10 brands for families with
children. Iversen said:
The other companies on that list, such as Disney and Nike, were much larger than us. We
concluded that our brand must have huge untapped potential. This potential seemed to lie
outside our core play systems, so we stretched our brand and explored opportunities in new
areas. We experimented with new ways to push out more products, without necessarily
having an eye on their margin. The businesses were encouraged to make their own decisions.
Suddenly you couldn’t speak to an important retail customer without offering an account-
specific product. We also did studies on how to grow in untapped markets like Southern
Europe and concluded that we needed products tailored to those markets.
The Group branched out beyond the brick. Inspired by the success of its family leisure park in
small Billund, it opened LEGOLAND Windsor (U.K.) in 1996. The same year, the company launched
www.lego.com and began to develop videogame software related to its products. LEGO Media was
set up in London to develop media products linked to LEGO play themes (e.g. movies, television
programs, or books). The company introduced children’s wear in 1993, watches in 1996, and LEGO®
MINDSTORMS robotic bricks in 1998. Knudstorp reflected on the company’s strategy during these
years: “All of these efforts to push our boundaries felt natural in our Disney-like brand stretch
strategy. There seemed to be potential everywhere.” Expansions tended to be done in-house, not
through partners. Mike Moynihan, VP of marketing, explained: “The mentality was that only we
sufficiently knew our brand, and the expression of it could therefore not be outsourced.”
In its brick-based product lines, the Group launched a host of new themes and products.
Designers created LEGO products with more complex and chunkier pieces for some sets, so that
children could build objects faster and arrive sooner at the playing part of the experience. The
number of distinct components rose. In cases where brick shapes were more pre-defined, such as the
lower and upper side of a car, they were harder to combine with other pieces.
Despite management’s efforts and significant investments to grow the top line, sales stagnated. In
1998, the LEGO Group faced the first financial loss in its history.
The Fix that Wasn’t (1999-2004)
To restore profitability and growth, Kjeld brought in a new CFO, Poul Plougmann, who soon
became COO and took over day-to-day management. Ploughman’s experience with turnarounds at
Danish companies led the press to announce the arrival of “Mr. Fix-it.” A restructuring program was
launched to cut costs by DKK 1 billion (about US$140 million) and lay off up to 1,000 employees
(more than 10\% of total staff). Of the 100 top executives, more than 60 were asked to leave.
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Ploughman’s “Fitness Program” included measures to streamline production, reduce organizational
layers, and increase responsibility and customer focus, all to build a simpler, more responsive, global
business system. When management announced these drastic measures, employees stood up and
applauded.
Change To develop stronger leaders who could take the group into new areas, Ploughman
moved managers around rapidly. People stayed in one position for 6-12 months before rotating or
being replaced by someone who could do a better job. General leadership experience was valued
more than direct experience with LEGO toys.
Design responsibilities were shifted from small, rural Billund to global product development
concept centers in creative locales such as Milan, London, and San Francisco. Production was
streamlined and geared to match forecasts. Several tool-making factories were sold, and certain
manufacturing processes that were difficult to automate were transferred from the LEGO Group’s
main factory in Billund to a new plant in the Czech Republic. In sales, senior management
consolidated 25 country-level sales companies into five regional entities. The incentives of
salespeople were tied, in part, to whether their actual sales exceeded their forecasts. Back-office
functions were globalized.
Management decided in 1999 to sell directly to consumers through two initiatives: an online shop
and LEGO-owned retail stores in Europe and the United States. Iversen recalled that “this was both
about meeting the consumer in the right places, online and in our own stores, and about building the
brand. Another reason was that we found ourselves increasingly working with discounters that were
squeezing us on their shelves. This made it impossible to display the wealth of our brand.”
The Group’s product line continued to evolve. Among the most prominent product launches in
1999 was the brick-based LEGO Star Wars™ theme. While the LEGO Group had developed many
play themes over the years, LEGO Star Wars was the first in-licensed brand. The decision had not
been an easy one. Long-time employees bristled at the idea of placing the word “War” on a LEGO
box and putting laser guns in the hands of LEGO minifigures, who traditionally carried nothing more
lethal than a pirate’s sword. The financial potential of the partnership was also difficult to assess.
Iversen recalled that “these debates about the danger of eroding our brand heated up when we
launched LEGO Star Wars. But we saw it as an opportunity to be more ‘in tune’ and add storytelling
to building.” More licensed products followed, including “Winnie the Pooh and Friends” in 1999 and
“Harry Potter” in 2001.
In 2002, the company repositioned the preschool line, LEGO DUPLO, under a new brand name.
Mads Nipper, Executive VP of Markets & Products, explained: “We tried to tap into mothers’
emphasis on child development and make the product more learning-focused.” The expansion of
theme parks continued with the opening of LEGOLAND California in 1999 and LEGOLAND
Germany in 2002. Projects like videogames continued to flourish, but some lifestyle initiatives, such
as wristwatches and publishing, were cut back after 2000.
Consequences Knudstorp recalled the ensuing difficulties in operations:
When I was brought in as a consultant in 2001 to analyze the supply chain, I realized
nobody had kept an eye on complexity. Product developers argued that the number of distinct
shapes did not matter, as the marginal cost of an extra mold was so low. And management did
not see the impact of this on design, manufacturing, servicing of retailers, forecasting, and
managing inventory. You could be out of stock for a product just because you miss one of its
675 pieces, which you did not make when you got the forecast wrong. The total number of
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713-478 LEGO (A): The Crisis
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components was not visible, but in 2004 we discovered that it had more than doubled since
1993. We had 3,560 different shapes, 157 colors, and 10,900 elements in our assortment. Each
shape required a mold, and a mold cost €50,000 on average, or up to €300,000 for complicated
ones.
Exhibit 3 shows the number of distinct LEGO components over time. Bali Padda, Executive VP of
Global Supply Chain, also recalled the company’s operations situation:
When I joined in 2002, there was a lack of discipline, of accountability, and a costing system
that I could not figure out. I couldn’t understand how net production prices were determined
or which products were profitable. It took me six months to get a sense of our fill rate to
customers [the proportion of demand delivered without delay from stock on hand]. I found
out it was anywhere between 5\% and 70\%, and my colleagues told me not to worry. My
inventory costs were exploding, we had a lot of write-offs and obsolescence, and I couldn’t
explain anything! We started to control costs, for example by ordering fewer molds, but
sometimes we could not meet demand anymore. Balancing supply and demand was further
complicated by individuals directly calling their friends in manufacturing and asking them to
produce more of this or that.
The LEGO Group’s major customers were frustrated by stock-outs and slow-moving inventory.
The typical retailer devoted nine linear feet to LEGO products in 2004, earned a 19\% gross margin on
LEGO sales, and saw LEGO inventory turn over two times a year. Chain-wide, Wal-Mart, Target,
and Toys R Us reported gross margins of 22.9\%, 33.6\%, and 32.4\%, respectively, in 2004. Their
inventory turns across all products were 7.5x, 6.0x, and 2.1x, respectively. Padda recalled, “When I
met the Wal-Mart buyer for the first time in 2004, he asked me: ‘Can you please tell me why I
shouldn’t put dog food on the shelves [instead of LEGO products]?’”
Among the Group’s new products, the LEGO Star Wars line thrived, rising to become 35\% of total
revenue. The repositioning of LEGO DUPLO proved less successful. Nipper recalled, “Many
consumers found the new products did not live up to our promise and missed the LEGO DUPLO
brand. A German retailer bluntly asked me, ‘Have you absolutely lost your mind?’ This was only one
of several innovation and marketing approaches at the time that customers did not understand.”
Increasingly, senior leaders noticed that managers were attributing poor results to factors beyond
their control; weak sales, for instance, might be blamed on nice weather, which discouraged
consumers from buying indoor toys.
The company’s results were characterized by large profit swings. The Group saw 28\% top-line
growth and a return to profitability in 1999, a sales downturn and a loss in 2000, and a decent profit
in 2001. Revenue grew in 2002, stimulated by new product launches, a new Star Wars film, growth in
core products, and a strong U.S. dollar, but profit fell.
By 2003, it became clear that the new growth strategy wasn’t working. Sales plunged by 29\% to
DKK 6.8 billion, and the company lost DKK 935 million. Management acknowledged that the
substantial investment in expanding the product portfolio and consequent cost increases had not
produced the desired results. Worse yet, some new products had cannibalized core products and
eroded earnings. In a year without Star Wars or Harry Potter movie launches, the unsatisfactory sales
of products with movie tie-ins accounted for more than 50\% of the overall sales decrease. Iversen
summarized the situation: “We were pregnant with many initiatives and their costs, and the market
environment turned against us.” In December 2003, Kjeld Kristiansen asked Plougmann and four of
his 14-person management team to leave the company. When 2004 brought another loss and pushed
For the exclusive use of E. S.A., 2019.
This document is authorized for use only by EUROPEAN COLLEGE-EC BUSINESS S S.A. in 2019.
LEGO (A): The Crisis 713-478
7
the LEGO Group to the brink of bankruptcy, Kristiansen invested in the company, retired as CEO,
and handed the position to Knudstorp.
A Newcomer and a Company on the Brink
The appointment of then 35-year old Jørgen Knudstorp as the LEGO Group’s first outside CEO
surprised industry observers. Born a short distance from Billund, Knudstorp had earned a PhD in
Business Economics at the University of Aarhus, Denmark and had started his career as a consultant
at McKinsey & Company before joining the LEGO Group as Director of Strategic Development in
2001. Iversen recalled that “the reaction in the Danish corporate community was: ‘How can they put a
‘rookie’ in charge when they are struggling to survive?’ But Kjeld had gotten to know Jørgen, had
come to trust his views, and liked his values.”
Knudstorp and his management team knew that saving the company would be no easy task.
Iverson described an early, sobering meeting with the Group’s board:
Jørgen bluntly told the board that if they wanted the business to survive in the long run,
this could not be a quick fix. He said that if he was a financial investor, he would advise them
to sell. But if they did not want to sell, they needed to believe that the LEGO family firm could
do it right. They needed to allow us to deliver long term and not quarter by quarter, and they
would have to sacrifice some of the ‘sacred cows.’
Among the sacred cows that might be sacrificed was the Group’s approach of making its own
products. Knudstorp wondered whether he should outsource manufacturing to a third party:
We had lost our edge in manufacturing and supply chain management in the 1990s when
many competitors like Hasbro started outsourcing things, and our costs were out of control….
It should be easy to find professional manufacturers able to operate the factories better than we
could.
Beyond manufacturing and supply chain management, all aspects of the company’s strategy were
on the table for discussion, including its product line, its approach to consumers and retailers, and its
processes for innovation and planning, To get his bearings among the many decisions, Knudstorp
began to look for LEGO’s “core.” Doing so was difficult, however, as financial pressure mounted:
I had the banks breathing down my neck and asking for immediate repayment of all
outstanding debt. We quickly needed to close or sell items to generate cash. My CFO listened
to my theory about the ‘core’ and said, ‘I don’t get all you’re saying, but what I take away is
that a core is something which makes a superior return. But if you take this to the extreme,
since our business is almost destroyed, there is no meaningful core in that sense.’
For the exclusive use of E. S.A., 2019.
This document is authorized for use only by EUROPEAN COLLEGE-EC BUSINESS S S.A. in 2019.
7
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BCO323
ORGANIZATIONAL
COMMUNICATION
Week 3:
Communication barriers at work
Professor: Konstantinos Biginas
Communicating across cultures
BLOCKS TO INTERCULTURAL
COMMUNICATION
• When people are acting in a home
manner in the different culture it might
cause a lot of problems
(Barna,1997)
• U n l e s s we are a w a r e of t h e s e
differences, we are certain to face
difficulties in communicating with people
from other cultures
1. Assuming similarity instead of dissimilarity
2. Language
differences
(Barna,1997)
3. Nonverbal misinterpretations
(Barna,1997)
• Stereotypes are over generalized
• Second hand beliefs that provide
conceptual bases from which we “make
sense” out of what goes around us,
whether or not they are accurate or fit
the circumstance
• Stereotypes are stumbling blocks for
communicators because they interfere
with objective viewing of stimuli (Barna,1997)
4.1
Stereotypes
• We have a certain stereotypical
preconception of a person from a
culture
(Barna,1997)
• We interpret his/her behaviour
according to this preconception,
whether or not the reason for the
behaviour is what we think it is
4.2 The
preconceptions
• We tend to approve or disapprove the
statements and actions of other people or
group rather than to try to comprehend
completely the thoughts and feelings
expressed from the worldview of the other
• This prevents the open-minded attention
needed to look at the attitudes and
behavioural patterns from the other’s point
of view (Barna,1997)
5. The tendency to
evaluate
• Also known as stress
• Too much anxiety or tension requires some form of
relief which too often comes in the form of defences,
such as the skewing of perceptions, withdrawal, or
hostility.
• High anxiety often underlies and compounds the other
stumbling blocks
• (Barna,1997
6. High anxiety or tension
THANK YOU!
QUESTIONS?
[email protected]
mailto:[email protected]
1
Chapter 1
THE INTRODUCTION OF BUSINESS
COMMUNICATION
2
Lasswell (1948) classic definition of communication defines communication as: who
(source or sender), says what (message), in which channel (medium), to whom
(audience or receiver), with what effect. In other words this model is about process of
communication and its function to society.
Target customers (receivers) have particular preferences for the message channels.
Discrete types of messages are received differing in their various uses. Furthermore the
ways that receivers could respond to these messages or those senders of messages
will occur in different paths, depend on detached preferences (Westmyer et al., 1998).
The classic model of effective communication recommends the highest impact of the
message that the sender sends occurs when the sender has thoroughly understood the
demands and desires of the receivers. In other words, as Shannon and Weaver claims
(1949): communication occurs when the sender encoding of the message corresponds
with the receiver decoding of it (Shannon and Weaver, 1949). Message is the main
target of the Shannon-Weaver model of effective communication. To make it clear,
Shannon-Weaver model is about inter-personal communication that composed of eight
principal components that are needed for information transmission or communication to
be occurred: source, encoder, message, channel, decoder, receiver, noise and
feedback.
1.1 Business Communication – an introduction
Kotler claims that companies must ask not only how can we reach our customers but
also, how can our customers reach us. (Kotler, 2009, p.564).This shows the importance
of communication marketing between company and its customers. According to Kotler
today communication is an interactive dialogue between the company and its customers
3
that it takes place in all the stages i.e. pre-selling, selling, consuming and post-
consuming. Moreover Kotler claims that technological advances had a great impact on
the means of communication. People can communicate through traditional media
(newspapers, radio, TV), as well as through newer media (computers, internet). By
decreasing communication costs, the new technologies have encouraged more
companies to move from mass-communication to more targeted communication and
one-to-one dialogue (Kotler, 2009, p.564)
The American Marketing Association (AMA) (2008) has provided a clearer definition of
marketing as an organizational function and a set of processes for creating,
communicating, and delivering value to customers and for managing customer
relationships in ways that benefit the organization and its stakeholders.
Importance of Communication in Business
Communication plays a vital role in the fulfillment of all marketing objectives.
Understanding communication is essential since it is the basic process through which
managers specifically and organizations in their entirety accomplish their set objectives
culminating in their success. Smith, Berry and Pulford (1997) describe communication
as the act of sending information from the mind of one person to the mind of another
person. Similarly, Churchill Jr. and Peter (1998) describe communication as the
transmission of a message from a sender to a receiver, such that both understand it the
same way. Mcshane and Glinow (2000) in turn, define communication as the process by
which information is transmitted and understood between two or more people.
4
Types of Communication tools
Communication tools can be divided into two types:
Personal communication tools: Personal communication tools are those in which two or
more people communicate with one another. Word of mouth is the primary means of
personal communication. There are various other Medias of personal communication
also such as e-mail.
Non-personal communications: Non-personal communication tools are those in which
communication do not occur in person-to person but occur through some other media.
National and regional newspapers and magazines, television, satellite, and cable
television are some of the means of non-personal communication.
Components of Communication:
For effective communication to occur, Dubrin (1997) stipulates that six components
must be present: a communication source or sender, a message, a channel, a receiver,
feedback and the environment.
The source (sender) is the initiator of a communication event who is usually a person
attempting to send a spoken, written, sign language, or nonverbal message to another
person(s). Here, the perceived authority and experience of the sender are important
factors influencing how much attention the message will receive.
Message is the purpose or idea to be conveyed. Many factors influence how a message
is received. Among them are clarity, the alertness of the receiver, the complexity and
length of the message, and how the information is organized.
Channel (medium). This concerns the way the message is transmitted. In organizations,
5
several channels or media are usually available. More often than not, messages are
either written or spoken or a combination of the two. In addition, nonverbal cues such as
a smile and body gestures accompanies most spoken messages. For example, there is
heavy reliance on electronic transmission of messages (email) in today’s business
environment.
Receiver is the other party for whom the message is intended. Communication can only
be deemed to be complete when the receiver receives the message and understands it
properly.
Feedback is a message/response sent back from the receiver to the sender. Without
feedback, it is difficult to know whether a message has been received and understood.
Thus, if the receiver takes action intended by the sender, the message is deemed to
have been received satisfactorily.
A full understanding of communication requires knowledge of the environment in which
messages are transmitted and received. For example, the organizational culture is a
key environmental factor that influences communication. It is important also to mention
that distractions have a pervasive influence on the components of the communication
process. In this context, noise is anything that disrupts communication, including the
attitude and emotions of the receiver. Noise includes work stress, fear, ambivalence,
blurred visibility and strong advocacy for an opposing position.
1.2 Elements of Business Communication
According to Kotler and Killer following are the six major elements of communication:
Advertising: Advertising is one of the elements of the promotion mix which is considered
6
prominent in the overall marketing mix. This attribute is as a result of its visibility and
pervasiveness in all the other marketing communication elements. Advertising is any
paid form of non-personal presentation and promotion of ideas, goods or services by an
identified sponsor (where the source is the sponsoring organization) (Kotler &
Armstrong, 2010)
Sales Promotion: Sales promotions are short-term incentives to encourage the
purchase or sale of a product. Blythe (2006) describes sales promotion as any activity
intended to generate a temporary boost in sales. This includes several communications
activities pursued in an attempt to provide added value or incentives to consumers,
wholesalers, retailers, or other organizational customers to stimulate immediate sales.
Such efforts are usually geared towards stimulating product interest, trial, or purchase. It
is specifically designed to boost quick sales and ultimately create loyalty.
Publicity and Public Relations: Publicity is the disseminating of information by personal
or non-personal means, which is not directly paid for by the organization, nor is the
organization the source. Grasby et al (2000) describe publicity as the use of the media
to provide free coverage in their stories related to their product. Unlike advertising that
relies on purchasing power to get a message across, publicity relies solely on the
quality of content to persuade others to get the message out.
Public relations (PR), on the other hand is the overall term for marketing activities that
raise the public consciousness about a product, an individual or issue. Shimp (2000)
explains PR simply as an organizational activity involved with fostering goodwill
between a company and its various publics. Research has indicated that promotional
budgets have recently increased tremendously. In Ghana, budgetary allocations on
7
promotions have equally risen steadily over the years.
Personal Selling: Personal selling which involves personal contact is gradually
becoming the backbone of service marketing. If promotion is communicating with
potential customers, then, personal selling is perhaps the best way to do it. Kotler
(2006) defines personal selling as face-to-face interaction with one or more prospective
purchasers for the purpose of making presentations, answering questions, and
procuring orders. Jobber (2007) also describes personal selling as the marketing task
that involves face-to-face contact with a customer. Unlike the other tools of the
communication mix, personal selling permits a direct interaction between buyer and
seller. This two-way communication means that the seller can identify the specific needs
and problems of the buyer and tailor the sales presentation in the light of this
knowledge.
Sponsorship: Since traditional media have become more expensive, sponsorship is
viewed by marketers as a cost-effective alternative, (Lee et al., 1997). Events and
experience or sponsorship is another marketing communications tool comprising
company-sponsored activities and programs designed to create daily or special-related
interactions. In other words, a company can build its brand image through creating or
sponsoring events. According to Arens (1999), sponsorship is a cash or in-kind fee paid
to a property (which may be a sports, entertainment, or non-profit events or
organization) in return for access to the exploitable commercial potential associated with
that property. Palmer (2005) describes Sponsorship as getting involved and/or
investment in events or causes in order that an organization can achieve objectives
such as increased awareness levels, enhanced reputation, etc.
8
Direct Marketing: Direct marketing specifically ensures sending a promotional message
directly to consumers rather than via a mass medium. It is aimed at creating and
exploiting a direct relationship between producers and their customers. The Direct
Marketing Association (DMA) has defined direct marketing as an interactive system of
marketing that uses one or more advertising media in acquiring a measurable response
and/or transaction at any location. Similarly, direct marketing is described as the use of
mail, fax, e-mail, or internet to communicate directly with or solicit response or dialogue
from specific customers and prospects (Kotler & Keller 2006; Kotler & Armstrong, 2010).
Fig 1.1 Marketing Communication Mix
9
1.3 Challenges for Business Communication in India
Lack of strategic consistency
Lack of needed skill sets among marketing staff
Scarcity of creativity and innovation
Insufficient marketing budget
Lack of a standard measurement process
Lack of technology advancement support
Ambiguity on the issue
Complex cultural and social values
1.4 Business Communication Strategy
A strategic communication plan is one of the key elements in Business Communication.
It allows marketers to build a synchronized communication strategy that reaches every
market segment with a single, unified message. (Tri-Media, 1999) The objectives of any
promotional strategy can be to increase sales, maintain or improve market share, create
or improve brand recognition, create a favorable climate for future sales, inform and
educate the market, create a competitive advantage relative to competitor’s products or
market position and to improve promotional efficiency. Marketing Communications
Strategy determines the message or sequence of messages, which should be shared
with specific target audiences through the optimum communications mix. Strategy
summarizes how objectives will be achieved (Smith et al, 1997:77).
Communication strategies nowadays differ broadly from the ones in former times or
10
offline times. It is important to understand the relationship between digital
communication and traditional communication (Internet Marketing 4th edition, Dave
Chaffey). In the old media; for example, TV, radio, newspapers, magazines and
billboard ads, the communication model was and is one-to-many compared to the one-
to-one or many-to-many communication model in digital media, like blogs, social
networks, wikis and every form of vital marketing campaign. The best consideration
nowadays for a company-to-customer communication is the one-to-one or the one-to-
many model (Hoffmann and Novak 1996). These models speak of a monologue in the
old media and a dialog in the new media, because of the interactivity of social-network
and forum users. Resulting from this, the goal in traditional media was branding by
convincing the customer of a strong brand. In contrast the digital media is about
communication with the potential customer or user in a dialog to create interest by using
a pull strategy. In addition it can be said that it is a supply-side thinking communication
in the old media compared to a demand-side thinking in the digital media, where
customer pull becomes more important (Internet Marketing, Dave Chaffey, 4th edition).
Besides this, in old media communication, the customer is a target in comparison to the
digital media communication where the customer is a partner, by answering surveys
and product rankings (Internet Marketing (Table 1.5), Dave Chaffey, 4th edition).
Therefore, communication strategies can be divided into five step model as follows:
11
Fig 1.2 Components of Communication
12
Benefits of Communication Strategy
Smith et al (1997:88) outlined the benefits derivable from communications strategy as
follows:
It enables each tactical activity to build on the others creating strength of
communications through continuity and consistency;
It helps to create sharper selling messages appropriately directed to target
customers at various stages in their buying process;
Tactical planning of each communications tool is made that much easier and
quicker when clear strategic direction is agreed;
It facilitates integrated marketing communications (IMC) which saves time,
money and stress as well as providing IMC? other associated benefits of
consistency and clarity;
It can facilitate the development of joint promotions and strategic alliances;
It can encourage the development of hybrid marketing systems. The addition and
integration of new communications tools/channels (for example, telemarketing) to
existing communications tools/channels (for example, advertising or the sales
force) can create such a hybrid marketing system.
As well as driving the external communications, a good communications strategy (when
communicated internally) creates a bond within an organization so that everyone knows
what everyone else is trying to achieve.
13
Stages in designing communication strategies
Rowley (1998) has formulated the following stages in designing communication
strategies
Identify target audience
Determine communication objectives
Design the message
Select communication channels
Establish promotional budget
Decide on promotion mix
Measure results
Similarly, Czinkota and Ronkainen (2001), follow a five basic step model. This can be
illustrated as follows:
Step one: Assess Marketing Communications Opportunities
Step two: Analyze Marketing Communication Resources
Step three: Set Marketing Communications Objectives
Step four: Develop/Evaluate Alternative Strategies
Step five: Assign Specific Marketing Communications Tasks
14
Effect of communication strategies on consumers:
- Providing product information
- Creating Customer Awareness
- Changing Customer Attitude
- Building company Image
- Enforcing brand loyalty
- Creating Brand Image
- Customer Response
- Literature review
- Communication
Van Staden et al., (2002) define communication as a two-way process whereby
information (the message) is sent from one person (the sender) through a channel to
another person (the receiver) who in turn reacts by providing feedback.
Since communication requires converting the original concepts into symbols that can
transmit the desired message (Blythe, 2006) the individual or organization who
communicates has to transform first the concepts in a set of symbols that can be
transferred to the receiver, who need to decode the symbols, in order to understand the
original message. A correct decoding can take place only if the participants in the
communication share a common experience, with at least one common language.
Palmer (2005) posits that the message is presented according to a simple master
formula (model) which is: Attract the attention of your prospect; Interest your
15
prospect in the product; cause your prospect to desire the product, and demand
action from the prospect. This is known as the AIDA concept.
1.5 Substance of Business Communication
Marketing communication is a process that consists of a series of decisions made to
find the most optimal way(s) to deliver the message to a target audience (Sissors &
Baron, 2002; Sissors and Bumba, 1996). According to Rouse and Rouse (2002),
effective communication means that the information is received accurately in terms of
content and meaning as intended by the sender. According to Duncan (2002:8),
marketing communication is a process for managing the customer relationships that
drive brand value.
Developments taking place in digital media has lead to increasing ways in which
companies can communicate with consumers (Crosier et al., 2003). Grimes (2004) does
not share the idea of advertisers appointing a main agency among their network of
agencies and advises that? Operation across a range of parties is at the heart of
successful marketing communication campaigns.”
Churchill Jr. & Peter (1998) maintain that arousing the prospects desire to buy a
particular product is one of marketers most difficult tasks. An advert, for instance, must
convince customers that the product can meet their needs. Getting the prospects action
is the final requirement and definitely not an easy task. Prospective customers must be
led beyond considering how the product might fit into their lives but to actually trying it or
allowing for product demonstration. Arens (1999) emphasizes that appealing to
important needs can get more action and provide the kind of information buyers need to
16
confirm their decisions. In a general sense, to obtain optimum results from promotions,
the activities must highlight strongly felt customer needs that can only be uncovered
through careful research.
According to Paul Smith (1998) Promotion is consisted of following stages (different
organization of promotions subsidiaries): Sales Promotion (Sample drop, Competition,
Collection), Advertising (TV- Press), Direct Marketing (Mail shot, Telesales), Publicity
(and PR), Sponsorship, Exhibitions, Packaging, Point-of-sale and merchandising,
Internet, Word of Mouth, Corporate Identity. This is called the communication mix and is
the ingredients of Paul Smiths communications model.
In a global market characterized by high dynamism and fierce competition,
organizations try to find the most efficient way to get their word out so that customers
understand the benefits that can be obtained by consumption or use products or
services (Clow, 2010). Consequently, marketing communications have become a
fundamental aspect of marketing, a business vision and an essential factor in
successful marketing communication. Its importance have increased dramatically in
recent decades, considering that the marketing and communication are inseparable, all
organizations business areas using various forms of marketing communication to make
their offer and to meet financial or non-profit targets (Shimp,2003). Hart (2003:144),
outlines a number of organizational attributes of service providers that may help foster
sustainable customer relationships.
17
An organizational culture & business communication
Employees that have good interpersonal communication skills since these influences
how service providers interact with customers.
Employee motivation and training which is very important especially in services that
involve high employee/customer contact, where social benefits are valued and where
technology plays a significant role in building and maintaining relationships, for e.g.
service providers contacting customers via sms.
Developing an ability to calculate relationship performance and assess the impact of
marketing strategies on customer satisfaction, trust, commitment and loyalty.
Wells et al. (2000) are categorizing all the sources of messages that communicate with
the customers into planned, unplanned and often unconsidered tools. The planned are
almost always used or at least considered, while the unplanned and often unconsidered
are less frequently used.
The planned tools include the traditional marketing tools such as advertising and sales
promotion, and are controllable by the company itself.
The unplanned tools consist of media that are mostly uncontrolled by the company,
such as gossip and chat groups. These are often not considered to be important in the
coordination of marketing communication tools, although they may be of vital
importance when it comes to the publicity of a company.
The often-unconsidered tools are messages delivered by other aspects of the marketing
mix, such as price, product, and distribution. The price of a product signals a level of
18
quality. The product itself and the distribution of it communicate reliability and can
together with price build up a good image for the company.
Van Staden et al., (2002) cite the following advantages of communicating effectively
with customers:
Better customer relationships
Saving time and money
More effective decision-making
Successful problem-solving
Business Communication Strategy formulation
Every firm needs strategy to make its products acceptable by the consumers at the right
time. Marketers need marketing mix to produce desired response from the market
(Kotler & Armstrong, 2010). An element of marketing mix that communicates companies
marketing message to its target consumers is promotion, also known as integrated
marketing communication (Wells et al., 2007). An effective integrated marketing
communication enables the company to grow continuously, to be known by the public,
and to build its brand equity (Madhavaram et al., 2005). According to Amoako-Gyampah
and Salam (2004), effective communication seeks to influence the receivers knowledge,
attitude and behaviors.
Arens (1999) emphasizes that appealing to important needs can get more action and
provide the kind of information buyers need to confirm their decisions. In a general
sense, to obtain optimum results from promotions, the activities must highlight strongly
felt customer needs that can only be uncovered through careful research.
19
Communication is believed to directly affect the building of long-term relationships with
the stakeholders of an organization. It is therefore, necessary to acknowledge the role
of communication in building relationships between the various activities in the
organization and between the organization and its stakeholders (Rensburg & Cant,
2003:120). Schultz et al. (1995:85) are of the opinion that it is the rapport, the empathy,
the dialogue, the relationship and the communication that the marketer establishes with
the prospect that makes the difference.
The decision-making perspective holds that buying behavior results from consumers
engaging in problem-solving task in which they move through a series of stages.
Decisions involving extended problem solving correspond most closely to the decision
making perspective. At this level, the consumer has no established criteria for
evaluating a product category or specific brands and needs a great amount of
information to establish a set of criteria on which to judge specific brands and a
correspondingly large amount of information concerning each of the brands to be
considered (Schiffman and Kanuk, 2009).
The tools of integrated marketing communication, called as promotional mix, consist of
personal selling, advertising, customer relations, sales promotion, direct marketing to
consumers, and others associated with advertising and bidding. Advertising is a one-
way and non-personal communication from an organization using mass media (Kotler et
al., 2009; Solomon et al., 2009). Price promotions, often known as price-off deal (Belch
& Belch, 2007; Solomon et al., 2009; Wells et al., 2007), is a promotional strategy in
which consumers receive a temporary reduction from products normal price.
When developing a communication strategy, according to Czinkota and Ronkainen
20
(2001), a marketer should access what a company or product characteristics and
benefits should be communicated to the market. This requires constant monitoring of
the various environments and target audience characteristics. In evaluating resources to
be allocated for communication efforts, certain things can be taken under
considerations. A sufficient commitment is necessary which means a relatively large
amount of money. The company has to operate according to the rules of the market
place due to monetary constraints most companies face and promotional efforts should
be concentrated on key markets.
According to Czinkota and Ronkainen (2001), the international marketer has to form a
communication program using the tools shown below.
- Advertising which consists of print, broadcast, electronic media, direct
communication.
- Personal selling with person-to-person communication with intermediaries and/or
final customer.
- Publicity that is any form of non-paid, commercial news or editorial comment
about products, ideas.
- Sales promotion, providing extra value to the product or gives incentive to the
salespeople, intermediaries, or ultimate consumers.
- Sponsorship which is promoting the company? Interest by associating it with a
for example sport event or charity/ social interest.
According to Rowley (1998), when determining the communication objectives the
importance lies in identifying whether the objective is to draw to attention, develop
21
interest, stimulate desire or provoke action. Furthermore, Wells et al. (2000) argue that
objectives should be S.M.A.R.T: Specific, Measurable, Actionable, Realistic and Time
Specific.
Although advertisement and other communicative options play an important role in the
marketing plans, development of brand equity is the main goal. Because of flexibility,
marketing communications effect on brand equity in different ways. Marketing
communications play an important role in development of brand equity by providing
information about brand, positive associations in memory of the consumers,
empowerment of judgment and positive feelings relative to brand and finally facilitation
of shaping powerful relationship between consumers and conformity with brand (Keller,
2008).
Consumer response reflects the state changes that a consumer experiences either
temporally or on a more permanent basis - as a result of exposure to a marketing
communication. Consumer response to any marketing communication can be broken
down into a host of different categories reflecting the process or outcome associated
with exposure to the communication. In terms of processing, both cognitive and
affective responses can occur. These responses may vary in terms of their level of
abstraction (specific vs. general), evaluative nature (negative, neutral, or positive
valence) (Keller 2001, 828-829).
There are several important benefits when having successful brand image and it is no
surprise why branding is one of the most important aspect in marketing communications
(Murphy, 1987). The list below show what companies aims to achieve with corporate
identity based on Olins (1989).
22
- A strong brand influences the buying decision and shapes the ownership
experience.
- Branding creates trust and an emotional attachment to the product or company.
- A strong brand can command a premium price and maximize the number of units
that can be sold at that premium.
- Branding helps make purchasing decisions easier.
Branding help the company to fence off the customers from the competition and …
BCO323
ORGANIZATIONAL
COMMUNICATION
Week 4:
Problem solving and Adaptation
Professor: Konstantinos Biginas.
F a c t o r i n g m u l t i p l e c o n t e x t s in to
communication decisions is a large part
of treating business communication as a
problem-solving process
2
The 3 key feature of BC is
about
• Sharing information
• Building relationships
• Solving workplace problems
3
STEPS THAT USUALLY OCCUR WHEN
PEOPLE ARE SOLVING BUSINESS
PROBLEMS AND COMMUNICATING
ABOUT THEM
Problem solving
4
1. Senses a communication need
2. Defines the problem
3. Searches for possible solutions
4. Selects a course of action
5. Composes the message
6. Receives the message
7. Interprets the message
8. Decides on a response
9. Replies to the message
5
Adaptation
ADAPTATION AND SELECTION
OF WORDS
The main goals here are
to
1. use words that your reader can readily understand
2. use an economical, lively style
3. avoid any wording that hints of exclusion or
discrimination
The key to good writing choices is
considering your reader
“adaptation” of one’s writing to the readers goes all the
way down to the word level
Good judgment on the word level is key
to communication success
• One ill-chosen word can alienate readers, thwarting
one’s purpose
• An especially well-chosen one can strengthen the co-
operation between writer and reader
Use familiar, short words
short, common words are preferable
to complex, long words
Use Slang and Popular Clichés with
Caution
• use slang and popular clichés with caution
• such phrases are especially troublesome for nonnative
English speakers
Use Technical Language with
Caution
• use technical words with caution
• Every field has its technical language (accounting,
information systems, medicine, finance).
• This language is good for communicating within the
field
• But it is likely to be meaningless to people outside the
field
Use Acronyms with Caution
• Initialisms and acronyms are not likely to be
understood by people outside a specialised area.
Example: ROI
Select Words for Precise
Meanings
• Selecting words for precise meanings is critical to
clear writing
• It means choosing the word with both the correct
denotation and the desired connotation
• It also means getting expressions idiomatically
correct
Study words so that you can use them
as precisely as possible
Words with similar meanings have slight differences in
meaning
….
Consider the shades of difference in these
groups of words
• cemetery, graveyard, memorial garden
• fight, dispute, law suit, disagreement
• pleased, satisfied, happy, content, gratified,
impressed
• thin, slender, skinny, slight, wispy, lean,
willowy, rangy, spindly, lanky, wiry
• fired, dismissed, canned, separated,
discharged
• Concrete language adds specificity and vigor to writing
• Concrete words stand for specific things that the reader can see, feel, taste,
or visualise - They relate to
experiences
• They are the opposite of abstract words -the words that refer to broad
and vague concepts
• ….
Prefer the Concrete to the Abstract
Example
s
• Concrete:
John S. Simmons, bagels and coffee, Ms. Levi, oil stains
• Abstract:
human resources, nourishment, management, damage
Concreteness also involves being specific
• A significant loss vs.
• The majority
• In the near futurevs.
• Substantial amount vs.
a 53\% loss
vs. 62 percent
by noon on May 1
EUR 3,751,321
Select Words for Appropriate Usage
Many pairs of words are confused in English and cause
problems for writers
Consider
• less vs. fewer
• affect vs. effect
• continual vs. continuous
Prefer Verbs in Active Voice
In most cases, one should prefer the active voice to the
passive
Active voice is stronger and more direct
….
Example
s
• In active voice, the subject does the action:
“Joan examined the equipment.”
• In passive voice, the subject receives the action:
“The equipment was examined by Joan.”
In what kinds of situations the passive
might actually be preferable?
• When the doer of action is unimportant: “Sports shoes
are manufactured in Korea.”
• When one wants to avoid accusing the reader of an
action: “The maintenance instructions were not followed in
this case.”
• When the doer of action is unknown: “During the past
year, three automobiles were stolen from this parking lot.”
• When the writer does not want to name the doer of
action: “Seventeen accounts were lost in the Portland area
last month.”
Avoid Overuse of Camouflaged
Verbs
• Avoiding overuse of camouflaged verbs adds clarity
and vigor to writing
• A verb is camouflaged when the verb describing an
action is changed to a noun
….
Example
s
When one changes the verb “eliminate” to the noun
“elimination,” which results in a long, passive sentence
like this:
“Elimination of the deficit was accomplished by
Thornberry.”
A better sentence is one that uses the verb: “Thornberry
eliminated the deficit.”
Avoid Discriminatory Wording
Use nondiscriminatory wording
(wording that treats all people equally and with respect)
• avoiding words that refer negatively to groups of
people, such as by gender, race, nationality, age,
disability, or sexual orientation.
• Avoid sexist labels
….
Labels that discriminate against a person because
of his or her gender
• Although there can be discrimination against men,
most sexist wording discriminates against women
• The problem exists primarily because our language
developed in a male-dominated society
• But be aware that not all words containing “man” are
sexist
• Avoid sexist use of pronouns ….
Three excellent ways to avoid the generic
male pronoun
1. by rewording the sentence,
2. by making plural references,
• Incorrect: Each team member should turn in
their schedule tomorrow.
• Correct: Team members should turn in their
schedules tomorrow.
3. by substituting a neutral expression
Avoid other stereotyping words and phrases
• It is unfair to stereotype all members of a race or
nationality
• Words that imply that Jews are miserly, Italians are
Mafia members, Hispanics are lazy, and the like are
unfair
(All groups have members with a wide range of
characteristics)
Eliminating such references requires taking
two steps
1. You must consciously treat all people equally
2. You should refer to minority membership only
when it is a vital part of the message
….
Our words should not discriminate
against the young and the old
• Some in these age groups object to words such as
“senior citizen,” “teenager,” “adolescent,” “juvenile,”
“golden ager,” or “elderly.”
Sometimes people with disabilities are
offended by the words we use in talking
about them
Instead of saying “the disabled” or “disabled people,”
say “people with disabilities.”
THANK YOU!
QUESTIONS?
[email protected]
mailto:[email protected]
ENVIRONMENTAL SCANNING & INDUSTRY ANALYSIS
WEEK 3–MBA301 – BUSINESS POLICY AND STRATEGY
ENVIRONMENTAL SCANNING & INDUSTRY ANALYSIS
INDEX
1. Organization´s environment factors influencing decisions
2. Strategically important environment factors of organizations
3. Conducting analysis to understand competitive forces influencing rivalry intensity
within an industry
4. Understand how industry maturity affects competitive forces
5. Strategic group map construction to assess the competitive positions of firms in a
given industry
6. Identifying KSF & develop an industry matrix
7. Use publicly available information to conduct competitive intelligence analysis
8. How to develop industry scenarios
9. EFAS table construction to summarize external environment factors
• LEARNING OBJECTIVES
• Understand external &
environmental factors
influencing the Strategy
• Learn how to build an
Industry analysis benchmark
& how the competitive
forces influence
• Competitive position
analysis
• KSF & Industry Matrix
development
• Industry Scenario models
Environmental Scanning & Industry Analysis
https://www.google.es/url?sa=i&url=https\%3A\%2F\%2Fwww.shutterstock.com\%2Fes\%2Fsearch\%2Fbusiness\%2520environment\%2520analysis\%3Fimage_type\%3Dillustration&psig=AOvVaw3Z-8ScgaD8s9kjDM2opzha&ust=1586608645343000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCNDW3P_v3egCFQAAAAAdAAAAABAJ
1/2. ORGANIZATION´S ENVIRONMENT FACTORS INFLUENCING DECISIONS
Organizations conduct business using their internal resources and How firms conduct
business is affected by their external environment.
Managers need to align the fit between their Internal conditions and External
environment & continually monitor both.
INTERNAL
ENVIRONMENT
EXTERNAL ENVIRONMENT
1. ORGANIZATION´s strategical environment factors
INTERNAL ENVIRONMENT
1-MISSION &
VISION
2-
MANAGEMENT
& CULTURE
3-RESSOURCES4-STRUCTURE
5-SYSTEMS &
PROCESSES
1/2. ORGANIZATION´S ENVIRONMENT FACTORS INFLUENCING DECISIONS
EXTERNAL ENVIRONMENT / 9 factors
Mission
Structure
Ressources
Management & Culture
Systems & Process
INTERNAL
intern
al
intern
al
conne
cted
intern
al
conne
cted
9-CUSTOMERS
8-SUPPLIERS
7-LABOR FORCE
6-SHAREHOLDERS
5-SOCIETY
3-GOVERNMENTS
1-COMPETITION
2.ECONOMY
4-TECHNOLOGY
EXTERNAL
GLOBAL
THE ORGANIZATIONAL ENVIRONMENT
3/4. - CONDUCTING ANALYSIS TO UNDERSTAND COMPETITIVE FORCES
MICHAEL PORTER´S 5 FORCES
3/4. - CONDUCTING ANALYSIS TO UNDERSTAND COMPETITIVE FORCES
MICHAEL PORTER´S 5 FORCES
5/6. STRATEGIC GROUP MAP TO ASSESS FIRM COMPETITIVE POSITION
https://www.youtube.com/watch?v=CcF3ZMgXQrA
Strategic Group Mapping
https://www.youtube.com/watch?v=CcF3ZMgXQrA
5/6. STRATEGIC GROUP MAP TO ASSESS FIRM COMPETITIVE POSITION
STRATEGIC GROUP MAPPING
Competitive Advantage
TIPS Benchmarking & understanding Competition KSF
THE COMPETITORS
Understanding the competition is
essential to corporate strategy planning
How competitive is your market? What
are your competitors doing, likely to be
doing? Evaluate the following:
Who are your competitors?
Who are your major competitors,
how big are they, what is their
market share?
What reputation do they have?
How do they distribute their
products?
What is their marketing like - do they
diversify?
What are their key strengths and
weaknesses?
Which is their key benefit?
Competitors´s Marketing Mix
Analysis (product, place, Price,
promotion)
Profile competitor strategies, sales,
operational set-up, and
distribution?
What are our competitive threats?
What are our competitors’ strengths
and weaknesses?
How can we measure our
performance against our
competitors?
What can we learn from
competitors’ success?
Can you build a shortlist of potential
partners best suited to our needs?
Four Corner´s Analysis
Competitors SWOT 360º
COMPETITORS´POSITIONING SAMPLE
5/6. STRATEGIC GROUP MAP / KSF INDUSTRY EXAMPLE
KSF MACEDONIA CHOCOLATE INDUSTRY EXAMPLE
7. COMPETITIVE INTELLIGENCE ANALYSIS
COMPETITIVE INTELLIGENCE
There are many publicly data of competitive
intelligence studies including information and analysis
from various disparate sources, including the news
media, customer and competitor interviews, industry
experts, trade shows and conferences, government
records, and public filings
7. INDUSTRY SCENARIOS
INDUSTRY SCENARIOS ANALYSIS TOOLS
5 P´S
PEST ANALYSIS
SWOT
COMPETITION ANALYSIS COMPANY SITUATION
ANALYSIS + BCG
WAR GAMING
4 CORNERS ANALYSIS
9. EFAS TABLE / EXTERNAL FACTORS
EFAS TABLE
The EFAS Table (External Factors
Analysis Summary) is one way to
organize the external factors into
the generally accepted categories of
opportunities and threats as well as
to analyze how well a particular
companys management (rating) is
responding to these specific factors
in light of the perceived importance
THANK YOU
BCO323
ORGANIZATIONAL COMMUNICATION
Week 1:
Establishing Credibility (Chapter 1)
Professor: Konstantinos Biginas.
Cardon, P. (2016). Business Communication: Developing Leaders
for a Networked World. Mc Graw Hill Education.
Why Does This Matter?
Credibility
– Your reputation for being trustworthy
– The degree to which others believe or trust in you
The Role of Trust in the Post-Trust Era (1 of 3)
Operating from a position of trust or credibility is one
of the first things you should consider as you
communicate.
Your goal should be to gain trust or credibility from
colleagues, clients, customers, and other contacts.
The Role of Trust in the Post-Trust Era (2 of 3)
The public increasingly views companies with less
trust.
A deficit of trust also exists within companies.
Surveys show that employees often do not trust their
own business leaders.
Figure 1.1 A Look at Trust in Various Professions
Jump to Image Descriptions
Appendix
The Role of Trust in the Post-Trust Era (3 of 3)
Post-trust era
– The public overwhelmingly views businesses as operating
against the public’s best interests, and the majority of
employees view their leaders and colleagues with
skepticism.
Figure 1.2 The Three Components of Credibility
The Role of Competence in Establishing
Credibility (1 of 3)
Competence
– Refers to the knowledge and skills needed to accomplish
business tasks, approach business problems, and get a job
done
Most people will judge your competence based on your
track record of success and achievement.
The Role of Competence in Establishing
Credibility (2 of 3)
People develop competence through study,
observation, and practice and real-world business
experiences.
How you communicate directly affects how others
perceive your competence.
The Role of Competence in Establishing
Credibility (3 of 3)
Focus on
Action
Emphasis on
Results
The Role of Caring in Establishing Credibility
Caring
– Implies understanding the interests of others, cultivating a
sense of community, and giving to others and showing
generosity
People distrust individuals who are perceived as
unconcerned about the interests of others or
disinterested in causes above and beyond themselves.
Understanding the Interests of Others
Your ability to gain credibility strongly depends on your
ability to show that you care for the needs of others.
Effective communicators gain trust by connecting with
others—that is, seeking to understand others’ needs,
wants, opinions, feelings, and aspirations.
Cultivating a Sense of Community
The most effective business leaders in today’s corporate
environment have generally risen to their positions because of
their sense of community and teamwork.
Speaking about “our needs” or “your needs” as opposed to “my
needs” engenders trust and helps you come up with solutions
that achieve mutual benefit.
Giving to Others and Showing Generosity
Most professionals can be broadly categorized as givers
or takers.
Companies with higher percentages of givers have
higher profitability, higher productivity, and higher
customer satisfaction.
The Role of Character in Establishing Credibility
Character
– Refers to a reputation for staying true to commitments
made to stakeholders and adhering to high moral and
ethical values
Figure 1.3 What Determines Trust in Individuals in the Workplace?
Jump to Image Descriptions
Appendix
Ethics
Ethics
─ Are “rules of conduct or moral principles that guide
individual or group behavior”
Business Ethics (1 of 3)
Business ethics
– The commonly accepted beliefs and principles in the
business community for acceptable behavior
Transparency
– Involves sharing all relevant information with stakeholders
Business Ethics (2 of 3)
Trust-building behaviors include:
• Extending trust
• Sharing information
• Telling it straight
• Providing opportunities
• Admitting mistakes
• Setting a good example by following rules
Business Ethics (3 of 3)
Often employees fail to speak up when they observe
potentially unethical behavior.
Business professionals remain silent for four basic
reasons:
1. They assume it’s standard practice.
2. They rationalize that it’s not a big deal.
3. They say to themselves it’s not their responsibility.
4. They want to be loyal.
Corporate and Personal Values (1 of 2)
Corporate values
– The stated and lived values of a company
Personal values
– Those values that individuals prioritize and adhere to
Corporate and Personal Values (2 of 2)
Most organizations have created a written code of conduct or
code of ethics.
Publicly traded companies are required by the Sarbanes-Oxley
Act of 2002 to have a code of ethics available to all employees
and to ensure that it is enacted.
Aligning personal values with corporate values is an important
element of character.
Open and Honest Communication
1. By avoiding open and honest communication of business
problems, employees doom a business to poor financial
performance.
2. Dishonesty is among the primary reasons for lower
employee morale.
3. Dishonesty can be reason for dismissal.
Stakeholder View of Accountability
A sense of accountability implies an obligation to meet the needs and wants of others.
It also involves an enlarged vision of those affected by your business activities.
It takes a stakeholder view that includes all groups in society affected by your business.
Fairness in Business Communications
The FAIR test helps you examine:
– How well you have provided the facts
– How well you have granted access to your motives,
reasoning, and information
– How well you have examined impacts on stakeholders
– How well you have shown respect
Figure 1.4 The FAIR Test of Ethical Business
Communication
Jump to Image Descriptions
Appendix
High-Trust Relationships, Ease of Communication,
and Improved Work Outcomes (1 of 3)
Establishing credibility allows you to communicate
more easily and more influentially.
Credibility leads to less resistance from others, an
increased willingness to cooperate, and a reduced
likelihood of miscommunication.
High-Trust Relationships, Ease of Communication,
and Improved Work Outcomes (2 of 3)
Engagement
– A measure of how much employees are connected
emotionally to their work, how willing they are to expend
extra effort to help their organizations meet their goals,
and how much energy they have to reach those goals
High-Trust Relationships, Ease of Communication,
and Improved Work Outcomes (3 of 3)
A study showed that companies with highly engaged
employees were nearly three times as profitable as
companies with low engagement among employees.
THANK YOU!
QUESTIONS?
[email protected]
mailto:[email protected]
BCO323
ORGANIZATIONAL
COMMUNICATION
Week 2:
Interpersonal communication, Communication
styles & non verbal language
Professor: Konstantinos Biginas
Interpersonal communication
COMMUNICATION STYLES
1. Assertive
2. Aggressive
3. Passive-aggressive
4. Submissive
5. Manipulative
The five communication
styles
Different sorts of behaviour and language
are characteristic of each communicative
style
How?
• Assertive communication is born of high self-esteem
• It is the healthiest and most effective style of communication,
the sweet spot between being too aggressive and too passive
• We have the confidence to communicate without resorting to
games or manipulation
• We know our limits and dont allow ourselves to be pushed
beyond them just because someone else wants or needs
something from us
• Assertive is the style most people use least
The assertive
style
Behavioural Characteristics
• Achieving goals without hurting others
• Protective of own rights and respec8ul of others
rights
• Socially and emotionally expressive
• Making your own choices and taking responsibility
for them
• Asking directly for needs to be met, while accepting
the possibility of rejection
• Accepting compliments
Non-‐Verbal Behaviour
• Voice – medium pitch and speed and volume
• Posture – open posture, symmetrical balance,
tall, relaxed, no fidgeting
• Gestures – even, rounded, expansive
• Facial expression – good eye contact
• Spatial position – in control, respec8ul of
others
Language
• Please would you turn the volume down? I
am really struggling to concentrate on my
studies.
• I am so sorry, but I wont be able to help you
with your project this aLernoon, as I have a
dentist appointment.
• They can take the person at their word
• They know where they stand with the person
• The person can cope with justified criticism
and accept compliments
• The person can look aLer themselves
• Respect for the person
Assertive
style
People on the Receiving end Feel
• This style is about winning, often at someone elses
expense
• An aggressive person behaves as if their needs are the
most important, as though they have more rights,
and have more to contribute than other people
• It is an ineffective communication style as the
content of the message may get lost because people
are too busy reacting to the way its delivered
The Aggressive Style
Behavioural Characteristics
Agressive style
People on the Receiving end Feel
• Defensive, aggressive (withdraw or fight back)
• Uncooperative
• Resen8ul/Vengeful
• Humiliated/degraded
• Frightening, threatening, loud, hostile
• Willing to achieve goals at expense of others
• Out to win
• Demanding, abrasive
• Belligerent
• Explosive, unpredictable
• Intimidating
• Bullying
Non-‐Verbal Behaviour
• Voice – volume is loud
• Posture – bigger than others
• Gestures -‐ big, fast, sharp/jerky
• Facial expression – scowl, frown, glare
• Spatial position -‐ Invade others personal
space, try to stand over others
Language
• You are crazy!
• Do it my way!
• You make me sick!
• That is just about enough out of you!
• Sarcasm, name-‐calling, threatening, blaming,
insulting.
• Hurt, Afraid
• A loss of respect for the aggressive person
• People appear passive on the surface, but are actually
acting out their anger in indirect or behind-the-scene
ways
• Prisoners of War often act in passive-aggressive ways in
order to deal with an overwhelming lack of power
• People who behave in this manner usually feel powerless
and resentful, and express their feelings by subtly
undermining the object (real or imagined) of their
resentment, even if this ends up sabotaging themselves
• The expression Cut off your nose to spite your face is a
perfect description of passive-aggressive behaviour
The passive-aggressive style
Behavioural Characteristics
• Indirectly agressive
• Sarcastic
• Devious
• Unreliable
• Complaining
• Sulky
• Patronising
• Gossips
• Two-‐faced
Language
• Why don’t you go ahead and do it; my ideas
aren’t very good anyway
• Oh don’t you worry about me, I can sort myself
out, like I usually have to.
• Confused
• Angry
• Hurt
• Resen8ul
Non-‐Verbal Behaviour
• Voice: OLen speaks with a sugary sweet voice.
• Posture: oLen asymmetrical – e.g. Standing
with hand on hip
• Gestures: Can be jerky, quick
• Facial expression: OLen looks sweet and
innocent
• Spatial position: oLen too close, even touching
other as pretends to be warm and friendly
Passive-‐
agressive
style
People on the Receiving end Feel
The submissive style
• This style is about pleasing other people and
avoiding conflict
• A submissive person behaves as if other
peoples needs are more important, and other
people have more rights and more to
contribute
Behavioural Characteristics
• Apologetic (feel as if you are imposing when
you ask for what you want)
• Avoiding any confrontation
• Finding difficulty in taking responsibility or
decisions
• Yielding to someone elses preferences
• Opting out
• Feeling like a victim
• Blaming others for events
Non-‐Verbal Behaviour
• Voice: Volume is soL
• Posture: make themselves as small as possible,
head down
• Gestures: twist and fidget
• Facial expression: no eye contact
• Spatial position: make themselves smaller/
lower
• Submissive behaviour is marked by a martyr-‐
like attitude (victim mentality) and a refusal to
try out initiatives, which might improve things.
Language
• Why don’t you go ahead and do it; my ideas
aren’t very good anyway
• Oh don’t you worry about me, I can sort myself
out, like I usually have to.
People on the Receiving end Feel
• Exasperated, frustrated, guilty
• You dont know what you want (and so
discount you)
• They can take advantage of you.
• Others resent the low energy surrounding the
submissive person and eventually give up
trying to help them
Submissive
style
The Manipulative Style
• This style is scheming, calculating and shrewd
• Manipulative communicators are skilled at
influencing or controlling others to their own
advantage
• Their spoken words hide an underlying
message, of which the other person may be
totally unaware
Behavioural Characteristics
• Cunning
• Controlling of others in an insidious way – for
example, by sulking
• Asking indirectly for needs to be met
• Making others feel obliged or sorry for them.
• Uses artificial tears
Non-‐Verbal Behaviour
• Voice: patronising, envious, ingratiating, oLen
high pitch
• Facial expression: Can put on the hang dog
expression
Language
• You are so lucky to have those chocolates, I
wish I had some. I cant afford such expensive
chocolates.
• I didnt have time to buy anything, so I had to
wear this dress. I just hope I dont look too
awful in it. (Fishing for a compliment).
• Guilty
• Frustrated
• Angry, irritated or annoyed
• Resen8ul
• Others feel they never know where they stand
with a manipulative person and are annoyed
Manipulative
style
People on the Receiving end Feel
Interpersonal communication
NON VERBAL LANGUAGE
7 \% Words
38 \% Tonality
55 \%
Physiology
Albert Mehrabian
Facial
expressions
• Eyes (How is his glance? Are there changes according
to his speech?)
• Body (What is the ease of the negotiator, is his
behaviour in adequacy with his/her speech?)
• Intonation of the voice (What are the feelings
conveyed by the voice? Are they in adequacy with its
speech?)
• Space (This gap is the indicator on the balance of
power which settles down over the negotiation)
• time (Is the negotiator gambling with it? Is he in a
hurry or conscious of the time which is available on
him?
The non-verbal language is conveyed through
• Eye contact: high levels of high contact are
linked to friendliness, trustworthiness and
sincerity in European culture. 60-95 \%
perceived positively.
• Facial expression: reflecting the verbal
content, illustrating commitment, interest,
emphasis, smiling and nodding are among the
most persuasive and compelling.
• Head held erect
High credibility factors include: (1/3)
• Open posture: demonstrating interest,
reasonably relaxed but with energy, showing
the area around the diaphragm
• Gestures: open and energised but without
being repetitive, jerky or hesitant. Relaxed
movements showing palms can be persuasive
and will help keep listeners attention
High credibility factors include: (2/3)
• Movement: must reflect relaxation, energy and
commitment to the direction of the
communication
• Spatial relationships: sensitivity to the
comfort of others to encourage the process of
communication and avoid confrontation
Preservation of a comfortable personal space
• Diaphragmatic breathing
• Personal attractiveness: projecting positive
personal image
High credibility factors include: (3/3)
Low credibility factors include: (1/4)
• Tension in body posture: raised or
hunched shoulders, arm barriers across the
diaphragm, sunk down in the middle.
• Movements: jerky and hesitant. Taking little
time and space
• Relaxation without energy: perceived as
lack of interest and carelessness. Slumped
posture
Low credibility factors include: (2/4)
• Gestures: with emotional overtones which
may become repetitive and jerky. Closed fists,
pointing or not gestures at all
• Mannerisms: neck scratching, nose or ears
rubbing, fiddling or biting diminish credibility
• Face touching: especially covering the
mouth with a hand is perceived as lack of self-
confidence or even a lie
Low credibility factors include: (3/4)
• Signals of stress response: upper chest
breathing, blushing, shaking, sweating,
rubbing palms together…
• Proximity and touching: insensitivity to
spatial relationship, not all parties feeling
comfortable. Induces stress response
• Facial expressions: over serious, frowning,
incongruent, immovable
Low credibility factors include: (4/4)
• Eye contact: 20 to 40 \% eye contact is
perceived as low credibility in European
culture
• Head down, chin tucked in
• Good resonant tone: considered to be
enthusiastic, sincere, proud, interesting,
dependable and energetic
• Pace: Rate of speech can vary from 120 and
195 words per minute. Although, research
shows a preference for moderate to fast
speakers, credibility is lost below 110 and
sense disappears over 210
High credibility factors (content and vocal quality)
• Volume: within reasonable limits, using
volume increases credibility. The listener is
reassured by knowing the speaker has some
vocal power when it is appropriate to use it.
• Clarity: good articulation is perceived to be
trustworthy, sincere, considerate, energised
and intelligent.
High credibility factors (content and vocal quality)
• Conversational style: perceived as more
intelligent, sophisticated, calm, friendly, sincere,
reasonable, and confident. Generally more people
orientated.
• Use of visual images and vivid language: to
evoke response. For most people visual images
are the most memorable and intense language is
most persuasive provided the speaker has a basis
of credibility to begin with.
High credibility factors (content and vocal quality)
• Variety: building in vocal variety is essential.
Attention is controlled by a deep part of the
brain and is switched off by repetitive stimuli.
Consider also that we can think at four times
that rate at which we speak, so it is necessary
to continually keep the audience attentive.
High credibility factors (content and vocal quality)
• breathiness
• formality
• harsh tone
• high pitch
• lack of vocal variety
• lazy articulation
• over articulation
• speech disturbances
• thin or nasal tone
Low credibility factors to avoid
are:
THANK YOU!
QUESTIONS?
BCO323
ORGANIZATIONAL COMMUNICATION
Week 1:
Organizational communication, culture & behavior
Professor: Dr Anne M. Walder, Ph.D, D.B.A.
WELCOME TO WEEK 1!
BCO323 Organizational Communication
WHAT IS AN ORGANIZATION?
BCO323 Organizational Communication
« An organization is a social arrangement for
achieving controlled performance in pursuit of
collective goals »
(Huczynski & Buchanan, 2001)
• Social arrangements (people come together to interact & organise
themselves in a certain way)
• Controlled performance (which entails the setting of standards
for outputs, measurement of performance against these standards, and the
implementation of corrective action as required)
• Collective goals (members work together to achieve shared aims and
common objectives)
(Hargie & al., 2004)
Organizations involve:
• The function of the organisation shapes its nature,
form and structure
• It also influences the types of people who will want to
work there
Different organisations, varying purposes &
divergent goals
(Hargie & al., 2004)
Organisations purposes
• Market economy (maximising income, accumulating capital)
• Manufacturing and service sector companies
• Seeking private enterprise goals
Economic production
and profit-making goals
• Activities relating to the control and distribution of power in
society (Government agencies, political parties, police and
military. Political goals
• Facilitation of education and the dissemination of culture.
• Those involved in this sphere include family, schools and
colleges, religious denominatios and cultural heritage groups
Pattern maintenance
goals
• Include scrutiny of other groups and the mediation and
resolution of disputes
• This encompasses customer rights watchdogs, courts and
legal offices, regulatory bodies and citizens’ advice agencies
Integration objectives
(Parsons, 1963)
THE PEOPLE AND THE
ORGANIZATION?
Organizational communication
« I – We – Them – It » principle
(Clampitt, 1991)
• How staff relate
to one another
• How employees
are regarded as
individuals within
the company
• Reflects the way
in which external
publics are dealt
with
• How the
organisation
feels about what
it does
It Them
We I
Managers should examine 4 dimensions
• their business
• current value systems within each
• their accompanying communication patterns
• how to improvements could be effected
COMMUNICATION WITHIN THE
ORGANIZATION?
Organizational communication
Organisations do not communicate
People do
Organisations do not have goals
The people who compromise them do
(Hargie & al., 2004)
For the organisations, communication has been
portrayed as:
The life blood Its oxygen
Its central nervous system
Its
brain
Its
arteries
The highways
along which its
business is
transacted
(Hargie & al., 2004)
• Allowing messages to be transmitted rapidly
• Connecting the different « bits » together
The role of communication
Communica*on
Effec*ve
business
opera*on
Central element
(Hargie & al., 2004)
Increase productivity
Better quality of services &
products
More staff suggestions
Higher levels of creativity
Greater employee job satisfaction
Decrease absenteeism
Reduced staff turnover
Less industrial unrest and fewer
strikes
Lower costs
Benefits of effective communication practices
(Hargie & Tourish, 2000; Tourish & Hargie,2004)
Organizational
structure
Organizational
communication
affects
Performance
Human relations
Behavior
It is the way managers design their firms to achieve their organization’s mission and goals
Determines who works together
MANAGER & COMMUNICATION
Organisational Communication
18
1. Planning
2. Organising
3. Leading
4. Evaluating
Managers at all levels engage in four main
types of activity:
Communication
Communication
Communication
Communication
(Beck, 1999)
1. Upwards
2. Downwards
3. Across
4. Outwards
5. Self
Five levels at which managers must
employ their skills
(Forrest, 1997)
The 5 directions of management communication
Management
Upwards
(senior managers, CEO)
Outwards
(customers, suppliers)
Downwards
(employees, unions)
Across
(teams, colleagues)
WHAT IS BUSINESS
COMMUNICATION PROCESS?
Organizational Communication
22
BC process
• To understand the BC process, it’s important first to
understand the nature of BC
• BC is best understood as complex problem solving
23
BC depends on the type of business, its environment,
and the nature of the people involved
• Nature of the business
• Size and complexity
• Industry environment
• Geographic dispersion
• Organizational culture
This means that
for most situations, the business communicator will
need to take a unique set of circumstances into account
and generate a unique solution that will achieve the
desired business goals
25
Being a successful business
communicator requires
• Research: interview the players and understand
the history of the communications situation
• Careful analysis: to gather and interpret the
relevant information
• Creativity: to think of possible solutions
• Judgement: to pick the solution that will fit this
situation best
26
The Business Communication Process
27
The contexts in which BC takes place
• The larger business-economic, sociocultural,
historical context
• The communicators’ relationship
• The communicators’ individual contexts
(organizational, professional, personal)
28
BC is not simply about moving information from
point A to point B.
Anyone who neglects the specific contexts in
which communication takes place is likely
doomed to be an unsuccessful communicator
29
1. Clear communication targets are set company-wide,
together with accompanying accountability for their
achievement
2. Regular employee attitude surveys are conducted and the
results and action plans widely communicated
3. Senior management have high visibility among all
employees – managers make, and take, time to talk with
staff
4. Extensive face-to face and two-way communication is
fostered and employees are encouraged to communicate
proactively with management; improvement suggestions
are rewarded
8 best communication practices in top companies
(Berger, 1994)
5. There is a high use of technology, including an emphasis
on videos and e-mail, to disseminate information and
ensure it is understood
6. Communication training is an ongoing activity for all staff
7. All publications are carefully prepared and presented, each
bearing in mind the specific purpose, goals and target
audience
8. Management bonus take cognisance of employee
e v a l u a t i o n s o f c o m m u n i c a t i o n p e r f o r m a n c e a n d
effectiveness
8 best communication practices in top companies
(Berger, 1994)
THANK YOU!
QUESTIONS?
[email protected]
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We can mention at least one example of how the violation of ethical standards can be prevented. Many organizations promote ethical self-regulation by creating moral codes to help direct their business activities
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With covid coming into place
In my opinion
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While you must form your answers to the questions below from our assigned reading material
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5 The family dynamic is awkward at first since the most outgoing and straight forward person in the family in Linda
Urien
The most important benefit of my statistical analysis would be the accuracy with which I interpret the data. The greatest obstacle
From a similar but larger point of view
4 In order to get the entire family to come back for another session I would suggest coming in on a day the restaurant is not open
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After viewing the you tube videos on prayer
Your paper must be at least two pages in length (not counting the title and reference pages)
The word assimilate is negative to me. I believe everyone should learn about a country that they are going to live in. It doesnt mean that they have to believe that everything in America is better than where they came from. It means that they care enough
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Single Subject Chris is a social worker in a geriatric case management program located in a midsize Northeastern town. She has an MSW and is part of a team of case managers that likes to continuously improve on its practice. The team is currently using an
I would start off with Linda on repeating her options for the child and going over what she is feeling with each option. I would want to find out what she is afraid of. I would avoid asking her any “why” questions because I want her to be in the here an
Summarize the advantages and disadvantages of using an Internet site as means of collecting data for psychological research (Comp 2.1) 25.0\% Summarization of the advantages and disadvantages of using an Internet site as means of collecting data for psych
Identify the type of research used in a chosen study
Compose a 1
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effect relationship becomes more difficult—as the researcher cannot enact total control of another person even in an experimental environment. Social workers serve clients in highly complex real-world environments. Clients often implement recommended inte
I think knowing more about you will allow you to be able to choose the right resources
Be 4 pages in length
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One thing you will need to do in college is learn how to find and use references. References support your ideas. College-level work must be supported by research. You are expected to do that for this paper. You will research
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3 The first thing I would do in the family’s first session is develop a genogram of the family to get an idea of all the individuals who play a major role in Linda’s life. After establishing where each member is in relation to the family
A Health in All Policies approach
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Read Connecting Communities and Complexity: A Case Study in Creating the Conditions for Transformational Change
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Use the bolded black section and sub-section titles below to organize your paper. For each section
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