Juguar’s Method of Communication.

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People In Organization                                                      Name: WenWen TANG

     Case Study No.2 - April 2002

JUGUAR’S METHOD OF COMMUNICATION

Question 1

Communication is about sending and receiving information. Employees, managers and departments communicate with each other every day in business. Good communication is vital for the efficient running of a business. Within a business, there are both formal and informal channels of communication.

Firstly, have a view at formal communication. It can be divided into three forms: downwards, upwards and laterally.

1. Downwards communication has, in the past, been used to tell employees about decisions that have already been made. The importance of downwards communication can be proved by the four points: first, allow decisions by manager to be carried out by employees; second, ensures that action is consistent and co-ordinated; third, reduces costs because fewer mistakes should be made; fourth, would lead to greater effectiveness and profitability as a result of the above.

2. Upwards communication can help in decision-making. The following evidence can show this well: first, it helps managers to understand employees’ concerns; second, it helps managers to keep more in touch with employees’ attitudes and values; third, it can alert managers to potential problems; fourth, it can provide managers with the information that they need for decision making and gives feedback on the effects of previous decisions; fifth, it helps employees to feel that they are participating and can encourage motivation; sixth, it provides feedback on the effectiveness of downwards communication and how it can be improved.

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3. Lateral communication takes place when people at the same level within an organization pass information. An example might be a member of the finance department telling the marketing department about funds available for a sales promotion. One problem that firms sometimes face is that departments may become hostile towards each other if they don not understand the problems that each face. The marketing department may want these funds, but this might adversely affect the firm’s cash flow.

Secondly, turn to the informal communication. Informal communication channels can both help and hinder formal communication. There is one main channel of ...

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