Why Managers Should Prioritize Effective Communication: ABC Company

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This report, prepared for the CEO of ABC Company, investigates why managers should prioritize effective communication within the organization. It comprehensively examines three key areas: the personal and interpersonal aspects of communication, including persuasion, personal networks, and grapevine communication; the formal and informal communication channels (downward, upward, and horizontal) used within the organization; and crisis communication, including the development of strategies to protect the organization's reputation. The report emphasizes the importance of communication as a vital component of an organization's overall strategy, providing real-world examples and actionable strategies to help managers navigate communication challenges, build strong relationships, and effectively manage crises. The report concludes by reinforcing the necessity of managers giving equal importance to communication as they do to other aspects of the organization.
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Running head: MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
Name of the student
Name of the university
Author note
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
Executive summary
The chief purpose of the report was to make the managers aware about the need for prioritizing
effective communication by examining three issues. The first issue was the personal and
interpersonal aspects of communication that included the art of persuasion and grapevine
communication as well. The second issue was the formal and informal communication channels
used in the organization as a whole and the different directions in which these communication
channels work. These three directions were upward, downward and horizontal. The third issues
that the report examined was crisis communication and the communication strategies managers
must create to ensure effective management of crisis by protecting the organization’s reputation.
the discussion on these three issues revealed that communication is one of the most important
aspects of an organization’s overall strategy. The report also provided communication strategies
that could help organizations deal with crisis and maintain their reputation. Examples from the
real world were also given to make the point clearer to the managers that successful
organizations prioritize effective communication. The report concluded with a reiteration of the
statement that managers should give equal importance to communication as they do to other
aspects of the organization.
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
Table of Contents
Introduction......................................................................................................................................3
Personal and interpersonal aspects of communication....................................................................3
Personal communication..............................................................................................................3
Interpersonal communication......................................................................................................4
Practicing the art of persuasion – key points...............................................................................5
Channels of communication – downward, upward and horizontally..............................................8
Formal communication channels...............................................................................................10
Informal communication channels............................................................................................11
Downward communication........................................................................................................12
Upward communication.............................................................................................................13
Horizontal communication........................................................................................................14
Crisis communication and development of strategies to resolve crisis.........................................15
Communication strategies to manage crisis..............................................................................16
Conclusion.....................................................................................................................................19
References:....................................................................................................................................21
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
Introduction
The report aims to provide a detailed analysis of the need for managers to consider
effective communication as an important aspect of the organizational strategy. The report will
first provide explanation of personal and interpersonal communication. This would include
communication used for persuasion and influencing others. In addition, the report will highlight
the personal communication networks and grapevines used by organizations for communicating.
Further, the formal communication channels of the organization and the ways to maintain those
channels shall also be discussed. It will also include the upward, downward and horizontal
communication patterns followed in an organization. Thirdly, the report will include an
explanation and discussion of crisis communication and provide strategies to safeguard the
organization’s reputation in times of crisis. The analysis of the various aspects of communication
will help in understanding the need for managers to prioritize effective communication.
Personal and interpersonal aspects of communication
Communication has many types among which are the personal and interpersonal forms or
aspects. Personal communication may refer to the aspect of communication where the
communicators engage in colloquial or informal conversation. Personal communication could be
seen in contrast to professional communication because professional communication requires the
communicators to use words and sentences carefully. Interpersonal communication on the other
hand, refers to the communication process that takes place between two individuals. The process
could be undertaken either face-to-face, through telecommunication channels or via online
platforms.
Personal communication
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
Personal communication, as mentioned above, is the opposite of professional
communication and takes place commonly between family and friends. It can be intense at times
but mostly casual and casual communication might also happen with people who are not part of
the family of friend circle. Personal communication takes place using numerous methods starting
from written such as letters, verbal such as face-to-face and the more recent, online methods.
Communicating through letters used to be the old, traditional methods, which gradually were
replaced by methods like emailing and messaging through Facebook and such. Park, Reber and
Chon (2016) note that the newer methods of personal communication have changed the way
people actually behave while communicating. However, it must be noted that one form of
personal communication has remained the same and will continue to be the same – the face-to-
face communication. It is also one of the most effective forms of personal communication as it
allows the communicators to understand not only the tone but also the body language of each
other. In the context of business, personal communication has equal importance, as does the
professional communication. Jameson (2014), talks about the blurring of boundaries between
personal and professional communication in the age of Twitter and Facebook. The author
suggests that business communicators must realize and utilize the benefits of integrating personal
communication into professional communication because it is the age of technology and social
media platforms are the most dominant forms of communication.
Interpersonal communication
Interpersonal communication, as previously mentioned, takes place between two
individuals. Although interpersonal communication traditionally meant face-to-face
communication only, its connotations changed to non-verbal and other forms involving two
individuals. Many definitions and perceptions of interpersonal communication have been
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
developed over the years. Some regard it as the “process of exchanging messages between
people whose lives mutually influence one another in unique ways relating to social and cultural
norms” (Berger 2014). In others’ views, it does not have to have people with mutual connection,
interpersonal communication take place without people having any relation with each other.
Lolli (2013) however, has found that majority of college graduates “tend to be deficient in
interpersonal skills when entering the business world” despite knowing that it is crucial to
become a successful leader. Therefore, it is important that the managers prioritize the
interpersonal aspect of communication.
Practicing the art of persuasion – key points
Personal and interpersonal communication if done effectively could enable individuals to
persuade or influence others. The art of persuasion, as Mai and Hoffmann (2014) hold, is the key
to effective communication especially in business. It refers to the ability of a person to influence
others to see or perceive things as he or she perceives. A powerful interpersonal communication
could benefit the communicator to persuade the receiver. Business leaders utilize this art of
persuasion almost every day to influence customers into buying or opting for the products or
services over others. However, one must possess certain qualities to be able to influence or
persuade people. Jensen et al. (2013) view that establishing credibility at first is important
before attempting to persuade people, which include the relationship one has with others and the
experience or expertise one possesses. In addition, persuading others require the individual to
establish a common ground from where the persuader could successfully convey the benefits of
the message to both. To acquire these skills, it is important for communicators to have a strong
hold at the various aspects of interpersonal communication. In the absence of effective
interpersonal communication, people could not persuade or influence others to think or do, as
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
they want them to. Personal networks and grapevine communications are two of the most
effective tools that could enhance the art of persuasion.
Grapevine communication emerged from the personal and interpersonal aspects of
communication. It is defined as an informal communication undertaken in an organization where
managers and workers engage in social interaction. Several theorists and experts have defined
grapevine in different ways but the fundamental meaning has remained the same. According to
Bovee, grapevine refers to the informal or casual “interpersonal channel of information not
officially sanctioned by the organization” (Ejem and Ejem 2014). R.W. Griffin defines grapevine
as the informal network of communication that can pervade an organization. Newstrom and K.
Davis however define the concept as the informal system of communication that “arises from the
social interaction of the organization” (ati Wulandari 2014). Chan and Lai (2017) have identified
four fundamental types of grapevine communication. These include:
Single strand chain – It involves passing of information via linear process from one
person to another until it reaches the ultimate recipient.
Gossip chain – In this type, the information transmission occurs amongst a group of
people. Here, one person stays at the center and passes the information to everyone.
Probability chain – The probability chain involves passing of information randomly as
per the laws of probability. One person randomly passes the information to another and
that person carries it forward.
Cluster chain – Here, one person decides to pass the information to some selected
individuals who in turn, might relay it to other selected persons.
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
In the views of Erden (2013), “power distance in organizations increases the amount of
grapevine through perceptions of uncertainty in workers”. The authors’ views demonstrate that
perceptions of uncertainty amongst workers lead to grapevine communication. It is therefore
important for managers to consider the criticality of grapevine communication and take steps
accordingly.
It is thus clear from all these definitions that the common theme in grapevine
communication is its informality. Prior to the emergence and popularity of the online social
networking sites, grapevine communication used to occur face-to-face. Singh (2013) explains
that the modern-day grapevine communication through online sites have been both a blessing
and a disguise for managers. The managers feel that internet familiarity has allowed the workers
to stay anonymous while spreading false news about the organization or earn recognition while
praising it. The ease of access to such technology has made grapevine communication as one of
the most influential aspects of communication in organizations today. Personal networks, on the
other hand, are the contacts built by humans with whom they interact at different intervals of life.
These contacts are built throughout the course of life by people with the help of persuasion
through personal and interpersonal communication. This process of forming personal networks
has been modified by the new age technology that includes the social media networks. Similar to
grapevine, people now build personal networks by creating Facebook groups or pages and
inviting people who share similar interests.
Grapevine and personal networks are two of the most important points for practicing the
art of persuasion. The workers within an organization with the capability of persuasion could
spread rumors about the management, which might lead to fault perceptions and failure of the
organization. The art of persuasion could benefit the organization if it is channeled in the right
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direction. One must remember that it is persuasion, which attracts the customers to a particular
product or service endorsed by the organization. Grapevine and personal networks take place
within an organization amongst the workers. Other key points such as identifying the goals
clearly, determining the approach, being prepared with evidence and using compelling language
are effective in persuading potential customers.
Therefore, it is clear from the above discussion that the personal and interpersonal aspects
of communication that encompass influence and persuasion through personal networks and
grapevine, are important for the smooth functioning of an organization. Managers must give
equal attention and importance to these aspects of communication as they give to other
strategies. Communication is the most vital component of marketing and any wrong move could
cost heavily to the organization. The discussion revealed that personal communication is the
opposite of professional communication where the interaction is informal while interpersonal
communication could be both personal and professional. The discussion also highlighted the
influence of technology on the personal and interpersonal aspects of communication. It has
blurred the boundaries between personal and professional communication.
Channels of communication – downward, upward and horizontally
The communication patterns however, depend on the structure of an organization. The
structure depends on relationships patterns that exist amongst different units of an organization.
Each member of the organization is responsible or accountable to the member higher in rank. In
any organization, the communication channels are mostly formal that take place in either upward
or downward or horizontally as the figure below shows.
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
Figure 1 The upward, downward and horizontal communication pattern
(Source: Created by author)
Horizontal Communication
Upward
commun
ication
Downwa
rd
communi
cation
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
However, informal communication channels are also present within organizations
examples of which include grapevine communication and personal networks, as mentioned in the
above section. The manager holds the key in the communication that flows within an
organization. The following sections shall discuss the establishment and maintenance of formal
and informal communication of an organization as a whole.
Formal communication channels
The communication channels that transmit information that include the policies, goals
and procedures of an organization are referred to as formal communication channels. Messages
in formal communication channels pursue a sequence of command. It means that the information
passes on to the manager and the manager in turn passes it on to his subordinates and the process
continues. One example of formal communication is an organization’s newsletter that provides
both employees and clients an idea of the organization’s vision and goals (Koc 2013). Apart
from that, the formal communication includes transmission of information in terms of the
memoranda, directions, reports and planned meetings. Formal communication channels also
include business plans, annual reports, employer’s manual, customer satisfaction survey and
review meetings. Sisko et al. (2014) shed light on the use of digital communication to strengthen
the formal communication channels in multinational corporations. The authors have found that
the role of digital internal communication (IC) especially in multinational organizations as
formal communication channels has increased. On the other hand, Berger and Iyengar (2013)
have found that formal communication channels “shape interpersonal communication and the
psychological drivers of word of mouth more broadly”. These facts reveal that formal
communication channels have undergone many changes over time from face-to-face to written
and digital.
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
Informal communication channels
It has been found that within the overly formal organizational environment, there is
always a presence of informal communication channels. It is not possible for the stringent
hierarchical communication web to function effectively alone and that is the reason why a
communication channel outside this stern web exists. It refers to the informal communication
channel, which involves the casual conversation between workers in the workplace. The manager
has the responsibility to strike a good balance between the formal and informal communication
channels as the informal network might disturb the chain of command. Employees talking over
lunch in the cafeteria in a comfortable atmosphere are an instance of informal communication
channel. In addition, managers implementing a hands-on approach to handle queries of
employees while walking around also associate with informal communication channel. Other
activities outside the chain of command like quality circles, training programs, teamwork and so
on also come under the informal communication channel category. In case of informal
communication channels as well, the influence of technology is clearly visible. As Sutton et al.
(2013) observe, “Informal online communication channels are being utilized for official
communications in disaster contexts”, they further add, “Channels such as networked
microblogging enable public officials to broadcast messages as well as engage in direct
communication exchange with individuals”. This observation made by the authors show that the
emergence of online communication platforms such as Twitter has had a huge influence on
informal communication channels. Bloom et al. (2014) however, assert that informal
communication is mostly mediated by physical proximity and it is vital for coordination to take
place. While shedding light on the importance of informal communication channels, the authors
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MANAGERS SHOULD MAKE EFFECTIVE COMMUNICATION A PRIORITY
further argue that the absence of informal communication would result in the failure of numerous
collaborations. It then causes people to break up even before succeeding.
After understanding the formal and informal communication channels, it is now
important to discuss the directions of communication that include upward, downward and
horizontal communication in the organizations. Both formal and informal communication
channels take place in the three directions as mentioned previously. It is the responsibility of the
manager to establish and maintain these channels of communication through the three different
directions. Debates surrounding the effectiveness of the three directions of communication have
been influencing the decision of the managers regarding the implementation of these
communication forms. While some experts encourage upward communication, others support
downward communication. Some, on the other hand, opt for horizontal communication.
Downward communication
Downward communication refers to the formal messaging conveyed to employees
following a chain of command. The messages relayed downwards are authoritative and
commonly include information concerning procedures and policies of the organization, notices
and other official information. It has been the most dominant form of communication in
organizations that flows from the higher management to the subordinate workers. Other than
relaying information about the common purposes of downward communication, include job
instructions and rationale, goals, strategies and objectives implementation, performance feedback
and so on. As Raina and Roebuck (2016) note, the problem with downward communication is
that “much of the information is lost as it is passed from one person to another”. This happens
especially in cases where the distance is greater between the sender and receiver.
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Upward communication
While downward communication is an aspect of formal communication channel, upward
communication mostly involves informal communication. Behaviorists mostly emphasize the
implementation of upward communication. According to them, upward communication culture
helps motivate employees as it makes them feel valued. The upward flow of communication
opportune the employees to share their feedback regarding any process or culture of the
organization to the upper management. Upward communication is one of the key indicators of a
strong level of engagement with employees. When communication flows from the lowest level to
the highest level of management, it encourages an environment where employees could come to
managers to resolve any issue they face. Organizations that value culture employ upward
communication because it makes the employees feel involved in achieving the goals and
objectives. Spaho (2013) states that upward communication is important “not only to determine
if members have understood the information sent downward but also to meet the ego needs of the
staff”. The types of information that are communicated upward include grievances and disputes,
improvement suggestions, problems and exceptions amongst others. It is however difficult to
implement upward communication because the information flow is not as smooth upwards as it
is downwards. Certain barriers to upward communication may be noted as follows:
Failure of higher administration to respond to the problems or information brought up by
members
Less than perfect actions taken by higher administration and being defensive about it
makes the members withhold the information
Lack of attention and concern of the higher administration while listening to the queries
or information conveyed by the members
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Physical barrier such as separating the administrator from other employees also inhibits
upward communication
Excessive gap in time between the communication done and action taken further
obstructs upward communication
Horizontal communication
In both upward and downward direction of communication, the information flow is generally
hierarchical – coming from the top to bottom or the other way around. In contrast, horizontal
communication involves flow on information from amongst same level or similar ranked people
within the organization (Voinea et al. 2015). In other words, horizontal communication refers to
a paralleled flow of information. Horizontal communication is mainly used to coordinate
activities that concern various departments of the organization. The medium used for
communication is mostly oral or verbal. Kim, Magnusen and Andrew (2016) observe that one of
the strongest points of this form of communication is that it is free from distortion as the
messages are relayed instantly and between people within close distance. Further, it is also
important to note that horizontal communication is an aspect of informal communication
channel. Managers must understand the effectiveness of horizontal communication. The
important ways to ensure effective horizontal communication include:
Recognizing the importance and usefulness of horizontal communication
Considering horizontal communication as a type of emergency communication to resolve
quickly any problem or issue
Understanding the abilities clearly of horizontal communication as a functional aspect of
the overall communication process
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Making the organizational structure adjust to horizontal communication to ensure
communication within different departments
Crisis communication and development of strategies to resolve crisis
Organizations create a special wing, which deals with safeguarding the reputation of not
only the organization but also the individuals. This special wing is referred to as crisis
communication, a communication form that aims at protecting and maintaining an organization’s
public image. As the name itself suggests, crisis indicates an unwanted incidence at the
workplace that leads to major unrest and disturbances amongst workers. Factors such as
government investigations, media enquiry and criminal attacks blemish the image of the
organization. Crisis communication comes into play in these situations. It reflects the effort an
organization takes to communicate with its stakeholders and the public during a crisis that
negatively influences an organization. In such communications as well, the role of social media
is crucial especially in the contemporary business environment. Utz, Schultz and Glocka (2013)
however note that traditional crisis communication theories emphasize the interplay between
crisis type and communication strategy rather than emphasizing the medium. The authors while
researching the Fukushima Daiichi nuclear crisis found that the medium is more influential in
today’s world than the type of crisis. Further, Timothy Coombs and Jean Holladay (2014)
mention that monitoring stakeholders’ reaction in the social media to the crisis of an organization
helps managers use it as “barometers of the effectiveness of an organization’s crisis response”.
Some might argue that there is not much need of a special crisis communication wing
since an organization already has different departments that look after such situations. However,
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it must be noted that the presence of a strong crisis communication team saves the company from
further harm and that too without wasting much time. One of the first aspects that are put at stake
during crisis faced by the organization is the brand identity. In a study conducted by Blombäck
and Scandelius (2013), it was revealed that corporate heritage presence in corporate social
responsibility (CSR) communication enhances brand image. Nonetheless, the study further
reveals, “corporate heritage identity on its own does not influence positive consumer perception
on responsibility, unless it is liked to CSR communication” (Blombäck and Scandelius 2013).
Here, it should be stated that CSR communication could be regarded as a part of crisis
communication. The presence of crisis communication thus ensures protection of the brand
identity and maintenance of the organization’s stern stand within the industry.
Experts in handling crisis are appointed by organizations to manage the unwanted
situation. Prior to creating a plan, it is important that managers should take note of certain
elements that the crisis communication strategy must have. These include media relations,
financial communications, policy and government affairs, internal communications and
community affairs. Managing the crisis is not a matter of just one phase or one plan; it requires
critical planning at every stage and every minute detail has to be considered.
Communication strategies to manage crisis
While devising communication strategies for an organization in crisis, managers must
keep in mind the pre-crisis phase. The pre-crisis phase involves creating a plan for managing
crisis, selecting the crisis management team, training them, and performing tasks to test the
effectiveness of the team and the plan. According to Linsley and Slack (2013), organizations that
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annually update their crisis management plan and test the crisis management team, are best at
handling crisis and protecting their reputation.
The communication strategy must include a strong crisis management model that
incorporates all the requirements of handling the crisis.
Respecting media’s role – Media have a crucial role to play in communicating the
messages of the organization in times of crisis and hence must not be treated as enemies. Instead
of avoiding the media, managers should use them as an instrument to correspond key messages.
Here, preparing a statement beforehand becomes crucial. The statement must include confirmed
facts. Providing background information about the company and communicating the activities of
the company should also be done through the media. With the popularity of social media, it has
become easier for the organizations to communicate effectively during crisis (Latonero and
Shklovski 2013). Jin, Liu and Austin (2014) mention that the social media plays a huge role in
helping the organizations protect or mend their reputation. They suggest the social-mediated
crisis communication (SMCC) model to respond to crisis.
The SMCC model must be given due attention while devising the communication
strategy for an organization in crisis. As per the model, multiple audiences or ‘publics’ exist in
the social media world that have a role to play in the crisis. One section of the audiences are
called the ‘influentials’ who create the information that people access (Olsson 2014). The second
section involves ‘followers’ who as obvious follow the influentials. They access the information
and disseminate it to others. The third and last section of the audiences are the ‘inactive
members’ who although do not have direct access to the information but access it indirectly
through the social media. vital to this model is the direct and indirect distribution of information
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throughout the social media platforms and across the traditional media as well. Due to this nature
of the model, it proves to be beneficial for communication efforts especially in times of
emergency.
Communicating continuously – As obvious, the main communication strategy in times of
crisis is to communicate as much as the organizations can. The early phase of the crisis is crucial
because communication at this stage sets the tone for the rest of the stages. The media are most
likely to ask basic questions initially like “What happened?” “Where?”, “Who’s’ to blame?” and
so on. The managers must be as forthright as possible and let the media have the information and
at the same time be prompt to correct any misinformation. A great example of crisis
communication could be given of Pepsi-Cola “syringe hoax” of 1993 (Koku 2017). The
management launched an extensive communications response to restore confidence of the
consumers. Strategies included media relations and interviews, video news releases, third-party
endorsement and consumer hotlines.
Taking responsibility – Another key communication strategy to protect organization’s
reputation in crisis is to take the responsibility. The strategy might be controversial and at many
times, risky but extremely effective. However, it must be clear in the manager’s mind that taking
responsibility is different from taking the blame. It means communicating the steps taken by the
organization to rectify the situation. A recent case involving the fast food giant KFC presents
greater insights into the way organizations should take the responsibility. In February 2018, the
fast food chain had to shut over 900 of its units in the United Kingdom owing to the shortage of
chicken (Theguardian.com 2018). The news went viral on both mainstream and social media and
customers started showing their frustration through these platforms. The company had to face
widespread criticism and ridicule. The actual reason for the shortage of chicken was the delay
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caused by DHL, the chain’s new contract due to some ‘administrative problems’
(Theguardian.com 2018). KFC, while struggling to protect their reputation from further damage
launched an apology advertisement. It switched the entire scenario in favor of the company. The
advertisement was funny and targeted towards the younger consumers that form the core of the
company’s consumer base. They took the entire responsibility of the crisis and apologized to the
consumers, which was applauded across the media. This episode teaches the lesson that
organizations must take the responsibility of the situation and convey it keeping in mind their
chief stakeholders.
Communicating with employees – While pondering over the things to do in a time of
crisis, the management must not forget the employees. Although communicating to the clients
and customers through the media in the first priority, communicating to the employees is equally
important. As Heide and Simonsson (2014) note, “employees are the front-line ambassadors in
times of crisis”. Communicating all the activities that the organization is undertaking to deal with
the crisis to the employees would ensure that there is no confusion. When employees are not
involved in the communication process, they might relay false information to the media, which
might further damage the reputation. Managers therefore involve every employee in the
communication process to ensure that the organization deals with the situation as a team.
Using research to decide the responses – Market research, focus groups and polling
provide significant insight into the scale of the crisis and the attitudes of the public regarding it.
Hence, including it in the strategy is a necessary thing to do for the managers. Monitoring the
internet, the blogs and chat rooms also provide crucial information regarding the crisis.
Conclusion
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Communication, as evident from the above discussion, holds key to the better functioning
of an organization and managers must realize it. Communication has various types and takes
place in different directions, as the discussion revealed. It is the responsibility of the manager to
ensure that communication within the organization flows smoothly and is given due importance.
The discussion revealed that communication has personal and interpersonal aspects that could be
used to influence or persuade people. Personal networks and grapevine communication are
examples of personal and interpersonal communication taking place within an organization and
that blur the boundaries between personal and professional communication. Further, the report
highlighted the formal and informal communication channels and the ways to establish and
maintain these. The report also found that formal and informal communication could be done in
three directions – upward, downward and horizontal. It revealed that upward communication is
followed by most organizations today. Lastly, the report provided a discussion on crisis
communication and the strategies organizations should prepare to protect their reputation during
crisis.
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