COMMUNICATION IN COMMUNICATION IN ORGANIZATIONSORGANIZATIONS

COMMUNICATION IN COMMUNICATION IN ORGANIZATIONSORGANIZATIONS

Lecture 11aLecture 11aINFORMATIONINFORMATIONTECHNOLOGY IN TECHNOLOGY IN ORGANIZATIONSORGANIZATIONS

• TWO OR MORE INDIVIDUALS

• WHO DEVELOP COORDINATION AND CONTROL RELATIONSHIPS

KEY ELEMENT OFKEY ELEMENT OFAN ORGANIZATION: REVIEWAN ORGANIZATION: REVIEW

KEY ELEMENT OFKEY ELEMENT OFAN ORGANIZATION: REVIEWAN ORGANIZATION: REVIEW

Coordination-Control Harder as Organization Gets Bigger

• GLOBALIZATION• OVEREXTENDED OPERATIONS• TIME STRESSES• UNPREDICTABLE CHANGES

– Political, business, economic, social

• TURBULENT ENVIRONMENT– Complex and Dynamic:

LEADS TO:LEADS TO:

ORGANIZATIONAL COMPLEXITY

• MORE MANAGERIAL LAYERS• ELABORATION OF PROCEDURES AND

CONTROLS– HIGH ADMINISTRATIVE OVERHEAD

– OVER RELIANCE ON COMMUNICATION BY PAPER

More Rules and Managers Not The Answer

• As Machine or Divisionalized Machine orgs. expand into other parts of the world and operate in other countries, they can’t help themselves

– They extend their bureaucratic report/decide rules to those areas– Local managers can’t decide much without checking with HQ.

Lots of local problems that the people at HQ don’t know much about and can’t deal with, but

– Local managers have to wait until HQ decides – and suffer with their poor decisions

– The org. environment has become far more complex – and if the firm stabilizes the local environment what type of structure do they need?

FOUR ENVIRONMENTS AND STRUCTURAL CHANGE

1.1.

4.4.

STABLESTABLE

SIMPLESIMPLE

COMPLEXCOMPLEX

DYNAMICDYNAMIC

2.2.

3.3.

DIVISIONALIZED MACHINE

BUREAUCRACY

MACHINE BUREAUCRACY

THEY DON’T SUDDENLY BECOME

PROFESSIONAL BUREAUCRACIES AND

LET LOCAL MANAGERS MAKE

ALL THE DECISIONS

FOUR ENVIRONMENTS AND STRUCTURAL CHANGE

1.1.

4.4.

STABLESTABLE

SIMPLESIMPLE

COMPLEXCOMPLEX

DYNAMICDYNAMIC

2.2.

3.3.

HIERARCHY AND CONTROL

DIV. MACHINE BUREAUCRACY

LAYERS OF CONTROL

PATHOLOGIES

ORGANIZATIONAL PATHOLOGIES

• BRANCH / HEADQUARTERS TENSIONS

• DEPERSONALIZATION OF MANAGEMENT

• COMMUNICATION PROBLEMS– OMISSION– DISTORTION

• FRAGMENTED UNDERSTANDING

• INEFFICIENT TEAMWORK

• SUBSERVIENCE TO DOCUMENTS

• MIDDLE MANAGEMENT DILEMMAS

ORGANIZATIONAL PATHOLOGIES CON’T…

COMPUTERIZATION WAS SUPPOSED TO HELP

• It didn’t – the first systems were centralized at HQ– Controlled by a group of professional operators– Number-driven

• Managers could only ask for certain types of reports• Would only get what the computer could give• People would have to line up to get their requests

fulfilled

– Simply speeded up and extended central control

FOUR ENVIRONMENTS AND IT CHANGE

2.2.

3.3.

1.1.

4.4.

STABLESTABLE

SIMPLESIMPLE

COMPLEXCOMPLEX

DYNAMICDYNAMIC

HIERARCHY AND CONTROL

MACHINE BUREAUCRACY

CENTRALIZED INTELLIGENCE

MAIN FRAMES CONTROL

WHAT WE NEEDED WAS INFORMATION TECHNOLOGY THAT

WOULD COUNTER THE PATHOLOGIES

• SIMPLIFY ORGANIZATIONS• CREATE STRUCTURE AND LOCATION-

INDEPENDENT ORGANIZATIONS• FACILITATE COLLABORATIVE

ORGANIZATIONS• MAKE IT EASIER TO COMMUNICATE THAN

NOT TO• REPERSONALIZE MANAGEMENT

(KEEN)(KEEN)

DEALING WITH PROBLEMS OF OMISSION AND DISTORTION OVER

DISTANCE

1. REDUNDANCY– Send it twice – more time and resources

2. VERIFICATION– Check to see if it’s the “real” message – more time and resources

3. BYPASSING – “Talk to somebody”– Undermine local authority – use “back channel” communication– When done interpersonally – managers talking to other managers

- these solutions create “political” problems in organizations– In particular, undermines control in name of coordination

BUT

CONTEMPORARY

INFORMATION

TECHNOLOGY (IT)

HANDLES

THIS

A COMMON NETWORK OF DATABASES, ACCESSIBLE BY ALL, FROM ANYWHERE AND ANYPLACE IN THE COMPANY CAN DEAL WITH THIS

– MANAGERS AND EMPLOYEES CAN ACCESS COMMON DATABASES TO SOLVE PROBLEMS INSTANTLY

– NO ONE HAS TO ASK ANYBODY IF THE SOLUTION IS SUGGESTED BY THE DATA IN THE SYSTEM

– EVERYBODY CAN SEE EVERYBODY ELSE’S CHOICES

I.T. APPROACH TO PROBLEMS OF OMISSION AND DISTORTION

Summary: The Four Environments and IT Changes

2.2.

3.3.

1.1.

4.4.

STABLESTABLE

SIMPLESIMPLE

COMPLEXCOMPLEX

DYNAMICDYNAMIC

HIERARCHY AND CONTROL

DIV. MACHINE BUREAUCRACY

DECENTRALIZED INTELLIGENCE

PC access to Databases

AUTONOMY

CENTRALIZED INTELLIGENCE

MAIN FRAMES CONTROL

NETWORKED INTELLIGENCE

COLLABORATION

• CREATES A “LEGITIMATE” FORM OF BYPASSING– TELECONFERENCING, E-MAIL, INSTANT MESSAGING, FAXES– AUDIO AND VIDEO COMPUTER CONFERENCING– GROUP DECISION-MAKING SUPPORT SYSTEMS– EXPERT SYSTEMS (D-BASE)– INTERNET AND THE WORLD WIDE WEB (READINGS: p. 357)

• FLATTENS ORGANIZATIONS• CONNECTS HIGH OFFICIALS WITH LOW LEVELS• MAKES IT EASY TO RECOMMEND UPWARDS• HIERARCHY TO ADHOCRACY

• ALL THIS WORKS BECAUSE OF A CHANGE IN HOW WE FORMAT AND DELIVER INFORMATION – NEXT LECTURE.

INFORMATION TECHNOLOGY (IT)

COMMUNICATION IN COMMUNICATION IN ORGANIZATIONSORGANIZATIONS

COMMUNICATION IN COMMUNICATION IN ORGANIZATIONSORGANIZATIONS

Lecture 11bLecture 11bINFORMATIONINFORMATIONTECHNOLOGY IN TECHNOLOGY IN ORGANIZATIONSORGANIZATIONS

INFORMATION TECHNOLOGY

• TRADITIONAL MANAGEMENT INFORMATION SYSTEMS– HARD INFORMATION - NUMBERS DRIVEN– HERARCHICAL

• INFORMATION TECHNOLOGY PERMITS “SOFT” INFO TO FLOW– DOCUMENT DRIVEN– AND / OR PERSON DRIVEN

– NETWORK CENTERED

FORMAL ORGANIZATION INFORMATION FLOW

SuperSuper

PRESPRES..

SuperSuper

Mgr. Mfg.Mgr. Mfg.

SuperSuperSuperSuper

Mgr. FinanceMgr. Finance

SuperSuper

Mgr. SalesMgr. Sales

SuperSuper

INFORMAL ORGANIZATION NETWORK INFORMATION

FLOW

SuperSuper

PRESPRES..

SuperSuper

Mgr. Mfg.Mgr. Mfg.

SuperSuperSuperSuper

Mgr. FinanceMgr. Finance

SuperSuper

Mgr. SalesMgr. Sales

SuperSuper

EXAMPLES OF BENEFICIAL USES OF I.T.:

• COORDINATION VS. CONTROL

• AIRLINE RESERVATION SYSTEM:– REDUCES COORDINATION COSTS– ACCESS TO RAPIDLY CHANGING FARES,

DEALS, FLIGHT CHOICES– AIRLINES MAKE MONEY OFF THEIR

SERVICE - SELL IT TO INDUSTRY

EXAMPLES OF BENEFICIAL USES OF I.T.:

• FRITO LAY:– EACH SALES PERSON HAS PERSONAL

COMPUTER– CONSTANTLY UPDATED INFO ON SALES– DECISIONS MADE BY AREA HEADS, NOT

CORPORATE HEADQUARTERS

EXAMPLES OF BENEFICIAL USES OF I.T. CON’T

INTERNATIONAL COMPUTER SYSTEMS - SALES AND SERVICE DATA BASE:

1. EASILY ACCESSED • TIME AND EFFORT TO RESPOND IS LOW

2. NEUTRAL WAY - NO PERSONAL RISK• FEWER THAN 15% OF REPLIERS KNOW ASKERS

3. ANSWERS ARCHIVED FOR FUTURE ACCESS

• DON’T LOSE VALUABLE INFO

THE VIRTUAL ORGANIZATION• MARKET VS. HIERARCHY• MARKET CHEAPER IF YOU CAN KEEP COORDINATION

COSTS LOW• AN OFFICE, A FEW STAFF AND AN I.T. SYSTEM

1. INPUT PROCESSES: COORDINATED DESIGNERS, SUPPLIERS ALL ON CONTRACT

2. THROUGHPUT: (TRANSFORMATION) PROCESSES COORDINATED BY I.T.– MANUFACTURING IS CONTRACTED

3. OUTPUT PROCESSES: COORDINATED BY I.T.– SHIPPING, DISTRIBUTION, SALES BY CONTRACT

EXAMPLES OF BENEFICIAL USES OF I.T. CON’T

IT USE: CONDITIONS FOR SUCCESSFUL USE

• NATURE OF COMMUNICATION TASK• UNABMIGUOUS: ONE OR FEW MEANINGS,

COMPLEMENTARY INTERPRETATIONS OF AN ISSUE

• AMBIGUOUS: MULTIPLE, CONFLICTING INTERPRETATIONS OF AN ISSUE

IT USE: CONDITIONS FOR SUCCESSFUL USE

• THE INFORMATION CARRYING CAPACITY OF MEDIA

• RICH• INSTANT FEEDBACK, MULTIPLE CUES,

NATURAL LANGUAGE, PERSONAL FOCUS

• LEAN• DELAYED FEEDBACK, FEW CUES, TEXT OR

NUMBERS ONLY, IMPERSONAL

IT: CONDITIONS FOR SUCCESSFUL USE

RICH MEDIA

LEAN MEDIA

UNAMBIGUOUS TASK

AMBIGUOUS TASK

COMMUNICATION FAILURE

RICH MEDIA USED FOR

ROUTINE TASKS - OVERLOAD

EXCESS CUES - CONFUSION, SURPLUS MEANING

COMMUNICATION FAILURE

DATA STARVATION. TOO FEW

CUES TO CAPTURE

MESSAGE COMPLEXITY

EFFECTIVE COMMUNICATION

MEDIA CAPACITY MATCHES TASKEG: FACE-TO-FACE TALK

EFFECTIVE COMMUNICATION

MEDIA CAPACITY MATCHES TASKEG: E-MAIL OR MEMO

KIT p. 200

MUTUAL ADJUSTMENT

WHEN ORG. CHANGE WITH I.T. CAN’T SUCCEED

1. IN “CRISIS” OR “PRESSURE” SITUATIONS• FEW SYSTEMS PROVIDE “RICH” ENOUGH INFORMATION

FOR DIFFICULT MORAL/ETHICAL DECISIONS• FACE TO FACE STILL BETTER

2. WHEN ORGANIZATION LEADERS DON’T UNDERSTAND CHANGES REQUIRED

• PRIMARY FOCUS ON TOP-DOWN USE• NO MONEY OF COMMITMENT TO MULTI-LEVEL SYSTEM

WHEN ORG. CHANGE WITH I.T. CAN’T SUCCEED

3. AUTOMATE THE WRONG PROCESSES• MOST SHOULD BE RE-DESIGNED AND REPLACED• THEY WERE BUILT UP OUT OF PAPER-PEOPLE CONTROLS• REENGINEERING FROM CLEAN PAGE• SPEED UP A POOR PROCESS

• OVERWHELMED STRATEGIC APEX WITH DATA• OVERWHELMED MIDDLE MANAGEMENT WITH COLLECTING IT

WHEN ORG. CHANGE WITH I.T. CAN’T SUCCEED

4. WHEN I.T. SEEN AS A “SILVER BULLET”• WHEN I.T. FOLKS THINK THAT THE CHANGE IS IN THE INFORMATION

TECHNOLOGY (IT) ITSELF - “JUST GIVE THEM THE TOOLS AND THEY WILL CHANGE” - WRONG

• FAKE EMPOWERMENT• PEOPLE AREN’T EMPOWERED BY I.T.• PEOPLE MAKE IT WORK NOT THE OTHER WAY AROUND• THEY ARE EMPOWERED ABOUT I.T.

– WHEN THEY THOROUGHLY UNDERSTAND I.T.– WHEN THEY FEEL ACCOUNTABLE FOR IMPLEMENTING AND USING I.T.

• REAL EMPOWERMENT ABOUT I.T. IS HARD • IT’S COMPLEX• FRAMED IN INCOMPREHENSIBLE JARGON• DROPPED ON PEOPLE IN THE MIDST OF BUSINESS AS USUAL

WHEN ORG. CHANGE WITH I.T. CAN SUCCEED

Don’t automate work, obliterate it. – Hammer and Champy

• Original Design: The processing of a new policy at a UK insurance company involved ten handoffs and took at least 40 days to complete.

• Redesign: A case-manager approach was implemented so that only one handoff occurred, and the policy was processed in less than seven days.

• Each person was able to access all needed information and assemble the policy properly on their desktops

• The handoff was for quick review for quality

• Effective redesign: requires more than I.T. (computing) technology – Requires

• Change in roles and responsibilities; measurements and incentives; organizational structure; development of shared values and new skills.

• An organization-wide I.T. change project will fail without the full, active commitment and involvement of senior executives supporting not only the technology but necessary “people focused” changes

» EUGENE A. HALL, JAMES ROSENTHAL, AND JUDY WADE The McKinsey Quarterly, 1994 Number 2, pp. 107–128