Homework #9 for MGT3000

1.    Explain the difference between formal and informal organizational communications. How is each important for organizational management?

Formal communication, which consists of downward, upward and horizontal communications, follows a hierarchy within an organization.  Informal communication, which consists of personal networking, the grapevine and written communication, coexists with formal communication but often skips hierarchal order.

Formal communication is important because it transfers critical organizational data and information between departments and employees.  This information is useful in planning, implementing and organizing the organization to meet potential goals and cooperatively solve problems.

Informal communication is important because it is the primary means of spreading information within an organization.  This results in personal relationships across departments and the use of those resources to influence the accomplishment of tasks and solution to problems.

2.    Describe the difference between centralized networks and decentralized networks.

Centralized networks utilize one person of a group as a channel for communication.  All team members communicate through this designated individual.  This method generally results in faster decision making as it limits the number of people making the decisions.  This can be effective for larger groups and/or simple problems.

Decentralized networks utilize all members of a team or group and encourage open/free communication.  Decisions are made when all members of the group agree on a decision.  This can be effective for smaller groups and/or more complex problems.

3.    Define the concept of channel richness. What is the richest channel? Why it is so rich?

Channel richness refers to the amount of information that can be transmitted during a communication session.  The capacity of an information channel is influenced by three characteristics:
1)    The ability to handle multiple cues simultaneously
2)    The ability to facilitate rapid, two-way feedback
3)    The ability to establish a personal focus for the communication.

Face-to-face discussion is the richest medium for communication.  It permits direct experience, multiple information cues, immediate feedback, and personal focus.

4.    Briefly discuss the five styles that can be used to handle conflict.

There are five styles of conflict resolution.  Each style has its own level of assertiveness and cooperativeness:
1)    Competing is assertive and uncooperative.  This style should be used when quick and decisive action is vital on important issues or unpopular actions, such as during emergencies or urgent cost cutting.
2)    Avoiding is unassertive and uncooperative.  This style should be used when an issue is unimportant, when there is no chance of winning, when a delay to gather more information is needed, or when a disruption would be costly.
3)    Compromising is moderately assertive and moderately cooperative.  This style should be used when goals of both sides are equally important, when opponents have equal power and both sides want to split the difference, or when people need to arrive at temporary or quick solutions under time pressure.
4)    Accommodating is unassertive and cooperative.  This style should be used when people realize that they are wrong, when an issue is more important to others than oneself, when building social credibility, and when maintaining harmony is important.
5)    Collaborating is assertive and cooperative (win-win).  This style should be used when both sets of concerns are too important to be compromised, when insights from different people need to be merged into an overall solution, and when commitment of both sides is needed for a consensus.

5.    As a supervisor, you are concerned about the low level of productivity in your unit. Your subordinates seem to have an unwritten law concerning how much they will produce, and anyone who does more than that is going to be in serious difficulty with the group. Labor-management relations in this company have never been cooperative. Managers have always tried to get as much as they could from labor and are reluctant to give them much of a voice in the operation of the firm. Analyze this situation based on what you know about group norms and cohesiveness.

This scenario sounds like the team development isn’t entirely complete.  It seems that the labor team is on the storming stage while the management is on the performing or adjourning stage of team development.  Both parties have neglected the normative stage altogether.
The labor division seems to have formed their own cohesive team outside the parameters of management.  This is probably due to the fact that management has not established themselves as leaders or because the labor division collectively feels that management is incompetent or unfair.

Management will most likely find themselves in a position of negotiating with the labor division and both parties will need to come to a collaborative decision on how to move forward or having a shared goal.

Management could have avoided this situation (and can avoid it in the future) by being in frequent contact with the labor division, listening to the labor division and sharing goals, and establishing themselves as leaders who are concerned with not only performance, but the well-being of their labor division.