Effective Communication

and IT Management
Chapter 13

1
Learning Objectives (1 of 2)
• 13-1. Explain why effective communication helps an organization
gain competitive advantage.
• 13-2. Describe the communication process.
• 13-3. Define information richness, and describe the information
richness of communication media available to managers.
13-4. Articulate three reasons why managers must have access to
information to perform their tasks and roles effectively.
• 13-5. Describe the advances in IT and their impact on management
and business operations.
• 13-6. Explain the differences between six different kinds of
management information systems.
Communication and Management

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

• Importance of Good Communication

• Increased efficiency in new technologies and skills

• Improved quality of products and services
• Increased responsiveness to customers
• More innovation through effective communication
The Communication Process (1 of 5)
• Transmission Phase
Information is shared by two or more individuals or groups
• Feedback Phase
A common understanding is assured

• © Christopher Robbins/Digital Vision/Getty Images RF

 The Communication Process (2 of 5)
• Figure 13.1

• Jump to Appendix 1 for long image description.

The Communication Process (3 of 5)
• Sender
Person or group wishing to share information
• Message
Information that a sender wants to share
• Encoding
Translating a message into understandable symbols or language
• Noise
Anything that hampers any stage of the communication process
The Communication Process (4 of 5)
• Receiver
Person or group for which a message is intended
• Medium
Pathway through which an encoded message is transmitted to a receiver
• Decoding
Interpreting and trying to make sense of a message
The Communication Process (5 of 5)
• Verbal Communication
The encoding of messages into words, either written or spoken
• Nonverbal Communication
The encoding of messages by means of facial expressions, body language, and
styles of dress
Information Richness and Communication Media

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

• Figure 13.2

• Jump to Appendix 2 for long image description.

 The Information Richness of Communication Media

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

• © Digital Vision/Getty Images RF

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

• Management by Wandering Around

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

• Spoken Communication Electronically Transmitted

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

• Personally Addressed Written Communication

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

• Impersonal Written Communication

• Has the lowest information richness
• Good for messages to many receivers where little or no feedback
is expected (such as newsletters, reports)
Topics for Discussion (2 of 5)
• Which medium (or media) do you think would be
appropriate for each of the following kinds of messages a
subordinate could receive from his or her boss: (a) a raise,
(b) not receiving a promotion, (c) an error in a report
prepared by a subordinate, (d) additional job responsibilities,
and (e) the schedule for company holidays for the upcoming
year? Explain your choices. [LO 13-3]
Impersonal Written Communication
• Information Overload
A superabundance of information that increases the likelihood
that important information is ignored or overlooked and
tangential information receives attention
• Blog
A website on which an individual, group, or organization posts
information, commentary, and opinions and to which readers can often
respond with their own commentary and opinions
• Social Networking Site
A website that enables people to communicate with others with whom
they have some common interest or connection
Information and the Manager’s Job
• Data
Raw, unsummarized, and unanalyzed facts
• Information
Data that is organized in a meaningful fashion
Factors Affecting the Usefulness of Information

• Figure 13.3
 Attributes of Useful Information
Attributes
Quality The accuracy and reliability of available information affects the quality of
decisions that managers make using the information.
Timeliness The availability of real-time information that reflects current conditions,
thereby allowing managers to maximize the effectiveness of their decisions.
Completeness Complete information allows managers to consider all relevant factors when
making decisions.
Relevance Having information specific to a situation assists managers in making better
decisions.
What Is Information Technology?
• Information Technology
The set of methods or techniques for acquiring, organizing, storing,
manipulating, and transmitting information
• Management Information System
A specific form of IT that managers utilize to generate the specific,
detailed information they need to perform their roles effectively
Information and Decisions
• Most of management is about making decisions.
• To make effective decisions, managers need information, both from
inside the organization and from external stakeholders.

• © Jose Luis Pelaez Inc/Blend Images LLC RF

Topics for Discussion (3 of 5)
• What is the relationship between information systems and
competitive advantage? [LO 13-1]
Information and Control
• Managers achieve control over organizational activities by:
• Establishing measurable standards of performance
• Measuring actual performance
• Comparing actual performance against established goals
• Evaluating the results and taking corrective action if necessary
Information and Coordination
• Managers use information technology to coordinate department and
divisional activities to achieve organizational goals
Effects of Advancing IT
• IT helps create new product opportunities that managers can take
advantage of.
• IT creates new and improved products that reduce or destroy
demand for established products.
IT and the Product Life Cycle • Figure 13.4

• Product Life Cycle

The way demand for a product changes in a predictable pattern over
time

• Jump to Appendix 3 long image description.

Topics for Discussion (4 of 5)
• How can information technology help in the new product
development process? [LO 13-3 ]
The Network of Computing Power
• Network
Interlinked computers that exchange information
• Four-tier network solution
• Common
• “External” mobile computing devices connect to desktops and
laptops, which then go through “internal” rack servers to a
company’s mainframe
Software Developments
• Operating System Software
Software that tells computer hardware how to run
• Applications Software
Software designed for a specific task or use
 The Organizational Hierarchy
• Traditionally, managers have used • Drawbacks
the organizational hierarchy as the
main system for gathering • Timeliness of information can be
information necessary to make reduced.
decisions and to coordinate and
control activities. • Information can be distorted.
• A tall structure can make for an
• Information Distortion expensive information system.
Changes in meaning that
occur as information passes
through a series of senders
and receivers
Six Computer-Based Management Information Systems

• Figure 13.5

• Jump to Appendix 4 for long image

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

• E-Commerce
Trade that takes place between companies and between
companies and individual customers using technology and
the Internet
Types of Information Systems (2 of 3)
• Operations Information Systems
• Systems that gather, organize, and summarize comprehensive data in a form
that managers can use in their nonroutine coordinating, controlling, and
decision-making tasks
• Assist managers with nonroutine decisions, such as customer service and
productivity
• Decision Support Systems
An interactive computer-based management information system
with model-building capability that managers can use when they
must make nonroutine decisions
Types of Information Systems (3 of 3)
• Artificial Intelligence
Behavior performed by a machine that, if performed by a human being, would
be called “intelligent”
• Expert System
A management information system that utilizes human knowledge embedded
in computer software to solve problems that ordinarily require human expertise
• Enterprise Resource Planning (ERP) Systems
Multimodule application software packages that coordinate the functional
activities necessary to move products from the design stage to the final
customer
Topics for Discussion (5 of 5)
• Many companies have reported that it is difficult to
implement advanced management information such as ERP.
Why do you think that this is so? How might the roadblocks
to implementation be removed? [LO 13-4 ]
E-Commerce Systems
• Business-to-Business (B2B) Commerce
Trade that takes place between companies using technology and the
Internet to link and coordinate the value chains of different
companies
• B2B Marketplace
An Internet-based trading platform set up to connect buyers and
sellers in an industry
• Business-to-Customer (B2C) Commerce
Trade that takes place between a company and individual customers
using technology and the Internet
BE THE MANAGER
• As an expert in communication, how would you advise Chen?
Thank you!
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