· issuing instructions on the tasks that have to be carried out by a subordinate and setting objectives, such as the target data for completing the work
· requesting information concerning the area of work for which subordinates are responsible
· communicating the organisation’s procedures, working methods and practices and the rules and regulations
· given feedback on subordinate’s performance in relation to his or her objectives and targets
· motivating people and encouraging attitudes that raise productivity and improve quality.
Some information will not come from an employee’s immediate superior but from other parts of the organisations. For example, when employees first start work they receive general information about the structure and goals of the organisation from the personnel department. However, for information that relates to work undertaken by the subordinate, the communication channel should be from superior to immediate subordinate.
Upward information flows
An upward information flow along a vertical information channel is from a subordinate to a superior. This might be feedback from a downward flow or the communication may originate directly from subordinates. An upward information flow can cover:
· responding to a superior’s request for information on some aspect of work for which the subordinate is responsible
· informing managers about the subordinate’s own performance, problems or their personal ambitions in relation, for example, to promotion or opportunities for developing new skills.
· passing on information about other employees in the subordinate’s section and relations with sections with which there is a direct link
· submitting ideas on improving working methods and solving work problems.
In the interests of effective working relations. Most organisations expect subordinates to report formally through their immediate supervisor or manager. However, they are likely to communicate in formally with managers higher up the hierarchy and in some situations, such as grievance procedure, may go directly to a more senior manager than their immediate superior.
Horizontal information flow
In addition to upward and downward flows, there are also horizontal information flows between people of the same status. Because many operations within an organisation must work very closely together, there must be formal arrangements for the exchange of information between sections and departments. The production department, for example, must have close contact with the purchasing department when it is considering changes to materials and components or introducing advanced machinery and equipment. Production staff also has to exchange information with employees in requirement, training, marketing and transport.
The quality of information.
The essential characteristics of an efficient information system are that the right people receive the right information at the right time. The information communicated should be:
· internally relevant to the needs of the recipient
· accurate and concise
· comprehensive, avoiding a time-consuming request for extra information
· clear – it must be presented and communicated without ambiguity or possible misunderstanding.
The person receiving the information must have confidence in the ability of the sender and, therefore have the confidence to take decisions based on the contents of the communication. The person sending the information must be confident that the receiver has the ability to understand, use and take effective decisions based upon the information supplied.
This information system, the communication media and the kind of information provided should be review on a regular basis. The information system should be adjusted to take into account any developments within the organisation such as changes in its organisational structure or management style. This review should also take into account external factors such as advances in information technology.
Informal communications
Vertical and horizontal information flows should be clearly defined. If individual are not sure about from whom the y should receive information and instructors, this can lead to the growth of information flows which are not part of the formal system. If there are two information flows running at the same time, there can be confusion and a fall in productivity. These informal systems can generate alternative sources of information and create a situation where the different levels of management receive inconsistent, inaccurate or even conflicting information.
Many businesses, however, accept that some tasks would not get completed if they only used formal channels of communications and chains of command. It may be necessary to short cut the formal system if a matter is very argent or a clash of a personalities is creating communications problems. Some informal channels may be tolerated if groups of workers have formed good working and personal relationship outside of the formal channels. Informal channels may even be the most effective way of communicating some kinds of information.
All organisations have a grapevine, which communicates information informally through personal contact between employees both vertically and horizontally throughout the organisation. The grapevine can be a quick way of communicating information to the workforce as a whole as it tends to operate by word of mouth. It can be used to pass on important information before an official announcement and, depending upon the feedback generated, the company may modify its intentions before the formal announcement.
The problem with using the grapevine is that information can get distorted or exaggerated as it is passed on. Proposal to cut a workforce, through 10% natural wastage and 5% redundancies, may soon get changed to 15% compulsory redundancies as it spreads through the grapevine. This may be useful as the actual announcement may prove to be much more acceptable than the distorted version on the grapevine.
External communications
Efficient internal communications are important, but an organisation’s external communications are vital. Its business prospects will be seriously threatened if it neglects its external communications. An organisation needs to communicate externally with:
· customers and clients
· suppliers of materials, parts, machinery, other physical inputs and business services
· local, national and European authorities that deal with matters such as taxation, planning permission, environmental protection, competition law, investment grants, trading standards, and health and safety
· pressure groups concerned with issues such as consumer protection, animal welfare, environmental matters and the welfare of law paid workers
· the media and the general public on matters that can either damage or enhance the company’s public image.
Organisation must ensure that the quality of their external communications is as high as possible and select the most effective media for communicating information. It is obviously important that organisations maintain effective communications with their customers, and most businesses invest heavily in market research promotion to attract and keep customers.
Many companies now recognise the importance of providing a communication channel which allows customers easy access to the company. Some companies advertise a customer care telephone number or an E-mail address on their packaging or promotional literature. The customer care section will be stuffed by people trained in the kinds of communications skills needed to deal with customers making complains. Larger companies may employ specialists press officers and public relations officers to handle dealings with the media, pressure groups and the general public.
Organisations relying on other companies for materials and components can find themselves in financial difficulties of their external communications lets them down and orders are not placed at the right time. This may led to shortages of parts and materials, and production may be held up. Relations with suppliers may also be affected by poor verbal communications skills which can cause confusion of the exact nature and delivery of an order. It is for this reason that any changes to an order made verbally should be supported by some form of written or electronic confirmation.
Opened and restricted channel of communications
In most organisations, some internal channels and communication media are open to all employees; stuff at all levels can access the information. Organisations want to provide some information to all their employees. This would include, for example, information on health and safety regulations, environmental management policies, incentive chemist and any response to resent adverse publicity. This downward information flow from the top of the hierarchy would be open to all.
The content of much downward and upward information flow sis fairly routine, and organisation are not too concerned about people beyond the sender and recipient being aware of what is being communicated. However, access to some information and channels of communications may be restricted. Some information is sensitive – and if it becomes known to people other than the intended recipients, it could create either internal or external problems.
Information and communication technology
Both internal and external channels of communication are increasingly supported by information technology, with computers generating and managing information flows. A computer-based information management system provides the mean to communicate, collect, store, summarise, analyse and present information in a way that best suits the controlling and decision making needs of different managers. Inform received by one department or section can be further processed before it passed onto other departments through the organisations computer network.
Computer systems can help organisations:
· react changes in the business environment
· process complex information
· provides administrative support
· increase job certification
· collect information at source
· communicate via the internet.
The Data Protection Act 1984
The Data Protection Act was introduced to ensure that organisations structured and managed the data held on their computers in a responsible way. These are its main provisions.
· Organisations must register the kind of information it keeps on individuals with The Data Protection Agency (DPA).
· Data must be obtained and processed fairly. People should know if the information they give to organisations will be kept on computer and why it is needed.
· Organisations can only collect the kind if information that they have registered with the DPA, and the data must not be used outside of the purpose for which it has been registered.
· The information held on individuals must be accurate and, where necessary, up to date and it must not be kept longer than necessary.
· Organisations must take precautions against unauthorised access to the information they hold on individuals.
· Individuals are allowed access to the personal data held by organisations and, where necessary they can correct mistakes.
In March 2000 the Data Protection Art was extended to cover records kept on a paper as well as information stored on computers and to provide additional protection for the individual. The protection includes new rights to know who holds information on you. It provides a statutory right to know the identity of the person in a business responsible for data protection issues, right to have a photocopy of personal information held by organisations and greater rights to object to anyone holding personal data.
There are also new rules to prevent organisations sending data to a country outside the European Union in an attempt to avoid complying with legislation on data protection. There are new provisions which can lead to individuals being held personally responsible for not abiding by the rules.
Communication within Tesco plc.
An illustration of communication within Tesco plc.
Figure 2.0: Example of vertical and lateral communication within Tesco.
I have analysed the communication within Tesco plc. and now I can say that Tesco uses relevant and accurate information to plan and manage efficient development, marketing, distribution and cost control. Information, vertical and lateral, communicated within Tesco very efficiently at the all levels. Every single person who works in Tesco is sure about from whom he should receive information and instructions.
But apart of internal communications Tesco has very good external communications as well. The company communicates with customers and suppliers very well. The quality of Tesco’s external information is very high. Tesco has many communication channels which allow customers easy access to the company, for example, Tesco advertises a customer care free telephone number and e-mail address on its packaging literature.
E6
Production.
Production involves activities, which combine inputs in order to bring about the physical changes that eventually produce the desired output – the product. The product may be goods for consumers and households or parts and machinery for other producers and manufacturers. Production can create a physical change through:
· Processing
· Manufacturing
· Assembly
· Craft-based processes.
Value added
A common feature of all forms of production is that they are the means by which organisations add value to their operations. Put simply, all organisations add value to the externally sourced materials and other inputs that contribute to their output. Value added is the difference between the value of an organisation’s output, as measured by sales revenue, and the costs of its inputs bought in from outside which contribute to output.
The relative importance of the input costs incurred by a producer depend upon the nature of the business. Most businesses generally consume a combination of:
· Raw materials
· Parts and components
· Energy
· Business services.
Quality
Quality has always been an important competitive factor in some markets, but during the 1980s an increasing number of UK producers began to devote more attention to quality improvement. The rise in the spending power of the average household meant that consumers’ choice of goods and services was no longer so dependent on price. At the same time, consumers were being offered a wider choice obliged producers to improve and complete on quality. Because firms producing consumer goods and services sought to raise quality, their suppliers – companies producing materials, parts, machinery and business services – were also forced to improve quality.
A growing number of organizations now operate in markets where product differentiation is rapidly decreasing. For example, advances in technology mean that there is now very little difference between personal computers offered by the different manufacturers in particular price range. A PC producer must therefore strive to gain a competitive advantage by establishing a reputation as a company with high quality and good customer care. Consider training shoes as another example. Manufactures of trainers periodically introduce new features into their shoes in an effort to create a greater degree of product differentiation, but they all remain essentially the same design and product. If the identifying logos are removed, the average buyer might find it difficult to distinguish between brands.
Producers of both consumer goods and consumer durables must therefore place more emphasis on quality when marketing their products.
The increasing importance of quality can also be seen in the market for consumer services. The main features of services provided by airlines, banks and fast food chains are often virtually identical, and product differentiation can only really be achieved by improvements in quality.
Another factor in changing business attitudes to quality was the success of Japanese manufacturing companies. It was perceived that quality played an important role in helping Japanese companies succeed in European and US markets. By the end of the Second World War very little manufacturing capacity remained in Japan, and in the immediate post-war period Japanese products generally had a reputation as being cheap but inferior quality versions of products manufactured by US and European producers. However by the early 1980s Japanese companies had become closely associated with high-quality products for which they were able to charge premium prices. In the early 1980s, Japan had 18 per cent of the world trade in the manufactured goods, substantially more than the UK’s 5
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