THEORY OF

COMPARATIVE
ADVANTAGE
COMMUNICATING

1
WHAT COMMUNICATING IS?

• It is a process of sharing information through symbols,

including words and message.
• Communication may happen between superior and
subordinate, between peers, between a manager and a
client or customer, between an employee and a government
representative.
• It may be done face- to-face or through printed materials, or
through an electronics device like telephone.
• In management, communication must be made for a
purpose and because it has a cost attached to it, it must
used effectively.

2
FUNCTIONS OF COMMUNICATION

• INFORMATION FUNCTION- Information provided through

communication may be used for decision-making at various work
levels in the organization.
• MOTIVATION FUNCTION- Communication is also used as a means to
motivate employees to commit themselves to the organization’s
objectives.
• CONTROL FUNCTION- When properly communicated, report, policies,
and plans define roles, clarify duties, authorities and responsibilities.

3
FUNCTIONS OF COMMUNICATION

• EMOTION FUNCTION- When feelings are repressed in the

organization, employees are affected by anxiety, which, in turn,
affects performance.

4
 COMMUNICATION
DEVELOPS IDEA PROCESS
encodes
Then transmits message to

WHO RECEIVE
MESSAGE

decodes

Accepts
or rejects Then provides feedback to
5
DEVELOP AN IDEA

• ENCODE- encode idea into word, illustration, figures, or other

symbols suitable for transmission. The method of transmission
should be determined in advance so that the idea may be encoded to
conform with the specific requirements of the identified method.

6
• TRANSMIT- After encoding, the message is now ready for
transmission through the use of an appropriate communication
channel. Among the various channels used include the spoken word,
body movements, the written word, television, radio, an artist's
paint, electronic mail, etc.

7
• RECEIVER- The next step is the communication process is the actual
receiving of the message by the intended receiver. The requirement is
for the receiver to be ready to receive at the precise moment the
message relayed by the sender. The message may be initially received
by a machine or by a person.

8
DECODE- The next step, decoding , means translating the message from the
sender into a form that will have meaning to the recipient.

9
• ACCEPT- The next step is for the receiver o accept or reject the
message. Sometimes, acceptance (rejection) is partial.

10
 Examples of an encoded and
decoded information
WHERE USED ENCODED DECODED
SELLING 5/10;n/30 Sales on account is
allowed.
A five percent discount is
deducted from total price
if settled within 30 days

Flowcharting Indicates beginning of a

flowcharting activity.
start

Production departure after service.

A basic queuing system
configuration indicating
Service channel, single phase
arrival facility system

11
• USE- The next step is for the receiver to use the information. If the
message provides information of importance to a relevant activity,
then the receiver could store it and retrieve it when required.

12
• PROVIDE FEEDBACK- The last step in the communication process is
for the receiver to provide feedback to the sender. Depending on the
perception of the receiver, however, this important step may not be
made.

13
 FORM OF COMMUNICATION

• TWO MAJOR FORMS OF COMMUNICATION

• VERBAL
• Oral
• written
• NONVERBAL

14
VERBAL

• Verbal communications are those transmitted trough hearing or

sight. These modes of transmission into two classes: oral and
written .
• Oral communication- mostly involves hearing the words of the sender,
although sometimes, opportunities are provided for seeing the sender’s body
movements.
• Written communication- where the sender seeks to communicate through
the written word. It may prepared as memo and sent to the receiver.

15
 Nonverbal communication
• Non verbal Communication is a means of conveying message
through body language, as well as the use of time, space,
touch, clothing, appearance, and aesthetic elements.

16
Barriers to communication

• PERSONAL BARRIERS
• PHYSICAL BARRIERS
• SEMANTIC BARRIERS

17
 It is the hindrance to effective
PERSONAL BARRIERS communication arising from a
communicator’s characteristics as a
person.

Refer to interferences to effective

communication occurring in the
PHYSICAL BARRIERS environment

Is the study of meaning as

expressed in symbols. Words,
SEMANTIC BARRIERS
picture, or action, are symbols that
suggest certain meanings.

18
Techniques for communicating in
organizations
• DOWNWARD COMMUNICATION
• To give instructions
• To provide information about policies and procedures
• To give feedback about performance
• To indoctrinate or motivate

19
• UPWARD COMMUNICATION-There is a need for management to
provide employees with all the necessary material and non material
support it can give. The requirement, however, is for management to
know the specific needs of the employees. This is the primary reason
for upward communication.

20
Techniques used in upward
communication
• FORMAL GRIEVANCE PROCEDURES
• EMPLOYEE ATTITUDE AND OPINION SURVEYS
• SUGGESTION SYSTEMS
• OPEN-DOOR POLICY
• INFORMAL-DOOR POLICY
• INFORMAL GRIPE SESSIONS
• TASK FORCES
• EXIT INTERVIEWS

21
 -part of a normally operating
FORMAL GRIEVANCE
organization. To effectively deal with
PROCEDURES
them, organizations provide a
system for employees to air their
grievances.

-finding out what the employees

EMPLOYEE ATTITUDE AND think about the company is very
OPINION SURVEYS important. The exercise, however,
requires the expertise and the
company may not be prepared to do
it.

SUGGESTION SYSTEMS -suggestions from employees are

important sources of cast-saving and
production enhancing ideas.

22
 -an open-door policy, even on a
OPEN-DOOR POLICY limited basis, provides the
management with an opportunity
to act on difficulties before they
became full-blown problems

INFORMAL GRIPE -informal gripe sessions can be used

SESSIONS positively if management knows
how to handle them.

-when a specific problem or issue

TASK FORCES arises, a task force may be created
and assigned to deal with the
problem or issue.

23
EXIT INTERVIEWS When employee leave an
organization for any reason, it is to
advantages of management to
know the real reason. If there are
negative developments in the
organization that management is
not aware of, exit interviews may
provide some of the answer.

24
• HORIZONTAL COMMUNICATION-refers to messages sent to
individuals or groups from another of the same organizational level
or position.

25
PURPOSES OF HORIZONTAL
COMMUNICATION
• To coordinate activities between departments
• To persuade others at the same level of organization
• To pass on information about activities or feelings

26
Techniques for horizontal
communication
• Memos
• Meetings
• Telephones
• Picnics
• Dinners
• Social affairs

27
MANAGEMENT INFORMATION
SYSTEM (MIS)
• Management Information System (MIS is defined as organized
method of providing past. Present, future and projected information
on internal information's and external intelligence for use in
decision making.

28
Purposes of mis

• To provide a basis for analysis for early warnings signals that can
originate both externally and internally.
• To automate routine clerical operations like payroll and inventory
reports
• To assist managers in making routine decisions like scheduling orders,
assigning orders to machines, and reordering supplies
• To provide thee information necessary for management to make
strategic or non programmed decisions.

29
 THE MIS AND ITS RELATION WITH DIFFERENT
DEFARTMENTS AND ORGANIZATION

MANUFACTURING MARKETING

MANAGEMENT
FINANCE PERSONNEL
INFORMATION
SYSTEM

RESEARCH AND
ENGINEERING
DEVELOPMENT

30