2.6 Communication

The list in the table below indicates some situations that can arise as a result of barriers to communication. Complete it by identifying ways to overcome these barriers.

https://docs.google.com/document/d/10DOY_hp2xFTQxn8QEZZqjMnuZYOtqKIzUmAUEeBFlh8/edit?usp=sharing

Day 3: 2.6 Case Study Questions

Choose one of the following case studies to complete:

17. Aurora Enterprises (Aurora)

18. Hamn Roasters

EXTRA!

Scenario Analysis

1) Case Study: Boeing's Communication Crisis

*Background:*

Boeing is a well-known aerospace company that has faced significant challenges in recent years, specifically concerning its 737 MAX aircraft. Following two fatal crashes involving the 737 MAX, Boeing was scrutinized for its communication practices internally with employees and externally with airlines, regulators, and the public.

*Situation:*

During the crisis, there were reports of internal communication breakdowns between engineers, the management team, and the test pilots. Moreover, the company's external communication was criticized for being defensive and lacking transparency, which damaged public trust.

*Recent News:*

Regulatory investigations revealed that there were known safety concerns that weren't effectively communicated within the company or to airlines and pilots. The release of internal emails showed employees mocking regulators and expressing concerns about the 737 MAX's design, which they had not voiced openly due to the company culture and communication barriers.

*Questions for Discussion or Role-play:*

1. (Discussion) Discuss the formal and informal barriers to communication that existed within Boeing's corporate structure that might have contributed to the crisis. (6 marks)

2. (Role-play) Act out a scenario between Boeing executives and engineers after the first crash, focusing on how to effectively communicate safety concerns up the chain of command. (6 marks)

3. (Discussion) Critically evaluate Boeing's external communication strategy in the aftermath of the crashes. How could Boeing have better managed communications with its stakeholders? (10 marks)

The discussion and role-play should be anchored in understanding the importance of transparent and effective communication. Students might touch on hierarchical barriers, fear of retribution, and corporate culture as internal communication issues. Externally, they could discuss the need for transparency, accountability, and empathy in crisis communication. This case study challenges students to examine the complexities of real-world business problems and apply theoretical concepts to provide potential solutions.

2) Case Study: Starbucks and the Philadelphia Incident

*Background:*

Starbucks, the international coffeehouse chain, is known for its emphasis on customer service and community connection as part of its brand identity. It has long been a place where patrons are encouraged to stay and use the facilities with no obligation to make a purchase.

*Situation:*

In April 2018, an incident occurred at a Starbucks location in Philadelphia, USA, where two African American men were arrested for trespassing after asking to use the restroom without making a purchase. The store manager called the police when the men did not leave after being denied restroom access. The incident was recorded and spread across social media, leading to public outrage and accusations of racial profiling.

*Recent News:*

The company's initial response was viewed as inadequate by many, exacerbating the situation. In response to the backlash, Starbucks' CEO apologized, and the company closed over 8,000 U.S. stores to conduct racial-bias training for employees – a move that was widely covered in the news.

*Questions for Discussion or Role-play:*

1. (Discussion) Examine the initial communication response by Starbucks to the Philadelphia incident. Analyze the effectiveness of the communication strategy and discuss what Starbucks could have done differently in the first 48 hours. (10 marks)

2. (Role-play) Imagine a board meeting at Starbucks immediately following the incident. You are a communication consultant. Explain the importance of cultural sensitivity and customer relations management, and propose how Starbucks should address the public and its employees. (10 marks)

3. (Discussion) Evaluate the long-term implications of this incident on Starbucks' brand image and customer relationship management. How can the company leverage formal and informal communication to repair its image? (10 marks)

In this case study, students will analyze Starbucks' crisis communication strategies and propose how businesses can manage similar situations effectively. They will need to consider measures to ensure customers' and employees' needs are adequately addressed to prevent lasting damage to the company's reputation. The role-play will involve understanding cultural sensitivity and the nuances of both internal and external communication, especially in a crisis situation. Students will also evaluate the company's actions beyond the incident and suggest improvements to communication protocols to restore and maintain the brand's image.

3) Case Study: WeWork's Expansion and Communication Challenges

*Background:*

WeWork, known for providing shared workspaces for tech startups, freelancers, and enterprises, experienced rapid growth and expansion. The company fostered a culture of entrepreneurship and community but also faced criticism for its management practices and ambitious growth targets.

*Situation:*

In the lead-up to its planned IPO in 2019, WeWork was under intense scrutiny from investors and the media. Reports suggested that there were internal communication issues, with a disconnect between the company's leadership and staff, alongside confusion about the company's direction and the valuation presented to the public.

*Recent News:*

As the IPO approached, internal confusion and miscommunication about the company's financial health and business model led to mistrust among employees and skepticism from the public. External communication to investors and the media lacked clarity, resulting in a significant drop in valuation expectations and eventually the postponement of the IPO.

*Questions for Discussion or Role-play:*

1. (Discussion) Identify and analyze the barriers to effective communication that WeWork faced both internally within the organization and externally with its stakeholders during the IPO process. (6 marks)

2. (Role-play) Take on the role of WeWork's leadership team addressing employees shortly before the planned IPO date. Discuss formal and informal communication methods to clarify the company's financial health, business plan, and IPO status. (6 marks)

3. (Discussion) Considering WeWork’s situation, how might the use of jargon and lack of transparency act as barriers to effective communication with stakeholders? Propose strategies to overcome these barriers. (10 marks)

In answering these questions, students should explore barriers such as organizational structure, company culture, misinformation, overuse of jargon, and lack of transparency. During the role-play, they should consider how to address employees’ concerns and fears regarding job security and the overall future of the company, ensuring clear and direct formal communication is provided while also giving room for feedback and informal discussions. Furthermore, in tackling the barriers of jargon and transparency, they might suggest creating more straightforward and candid ways of reporting financials and business strategies to help investors and the media understand the company's value proposition better.

4) Case Study: EcoWear's Communication Challenge

*Context:*

EcoWear is a startup that has quickly grown into a competitive player in the sustainable fashion industry. They pride themselves on using environmentally friendly materials and having a transparent supply chain. The company's headquarters are in Amsterdam, but they have recently expanded with satellite offices in New York, Shanghai, and Mumbai.

*Problem:*

EcoWear has been facing communication challenges both internally and externally. Internally, there's a disconnect between the design team in Amsterdam and the marketing teams in the satellite offices, causing delays in campaign launches and confusion over product features. Externally, the stakeholders are not receiving consistent messages about the company's sustainability practices, leading to a trust deficit. Recent feedback suggests the presence of jargon in communique is alienating customers who are not well-versed in sustainability terminology.

*Recent Event:*

An email meant for the internal design team was accidentally sent to a group of external stakeholders, containing technical jargon and incomplete information about the upcoming product line. This has resulted in confusion and a dip in stakeholder confidence in EcoWear's organizational capabilities.

*Questions for Discussion or Role-play:*

1. (Role-play) Assume the roles of the Amsterdam design team and the New York marketing team to conduct a meeting and address the communication issues. Identify formal and informal methods to improve alignment on campaign launches. (6 marks)

2. (Discussion) What barriers to communication can you identify in EcoWear's internal and external communication? List and explain two barriers. (6 marks)

3. (Discussion) As the head of EcoWear's communication department, propose a strategy to manage stakeholder relationships following the email incident. (10 marks)

The students involved in the role-play should consider factors such as time zones, cultural differences, and technology platforms that could aid in synchronizing the teams' efforts. For the discussion questions, students might identify jargon, psychological barriers (e.g., unwillingness to adapt or change), and technological barriers as key issues. In proposing a strategy, students should suggest tangible steps like creating a glossary for common terms, setting up transparent and regular communication channels, and potentially holding a stakeholder meeting to clarify misunderstandings and re-establish trust.

The purpose of such a case study is not only to understand the theory behind concepts such as formal and informal communication and barriers to effective communication but also to apply these concepts to complex, real-world business problems.

5) Case Study: TechGlobal's Remote Work Communication Conundrum

*Context:*

TechGlobal is an established tech giant known for its innovative culture and its wide array of consumer electronics. With headquarters in Silicon Valley, USA, TechGlobal also has several international branches worldwide. Recently, due to the global shift towards remote work, TechGlobal has allowed its employees to work from home indefinitely.

*Problem:*

While the shift to remote work has been well-received by employees, it has also brought about significant challenges in maintaining effective communication. Employees have reported feelings of isolation and disconnect from the company culture. The lack of face-to-face interaction has resulted in misunderstandings and reduced collaboration efficiency. The reliance on electronic communication has led to an increase in misinterpretation of messages, often due to a lack of non-verbal cues.

*Recent Event:*

During an important virtual product launch, there were technical difficulties that led to miscommunication about the product features between the team members. This resulted in presenting incorrect information to the clients and a delayed product release, which was heavily criticized in the media.

*Questions for Discussion or Role-play:*

1. (Role-play) Simulate a virtual meeting between TechGlobal’s management and the international team leaders to brainstorm solutions to overcome the current communication barriers while working remotely. (6 marks)

2. (Discussion) Analyze the impact that the remote work environment has had on formal and informal communication within TechGlobal. Provide recommendations for each. (10 marks)

3. (Discussion) Evaluate the potential long-term consequences for TechGlobal if they fail to resolve these communication issues promptly. Consider both internal operations and external relationships with stakeholders. (10 marks)

For the role-play, students should consider leveraging both synchronous and asynchronous communication tools, establishing clear protocols for virtual meetings, and exploring virtual team-building activities. In the analysis discussion, students could recommend establishing virtual 'open door' hours for informal chats and ensuring a range of communication channels are available to meet different needs. Lastly, when evaluating the long-term consequences, students should think about employee turnover, productivity losses, reputational damage, and even possibly the loss of market share if product launches continue to be mishandled.

This case study touches on contemporary issues that many businesses face in the current global environment, making it especially pertinent and relatable for students to engage with. It also serves as a practical application of IB Business Management concepts, allowing students to synthesize and evaluate information in a critical manner.

2.6 Checklist - Kognity

What you should know

By the end of this subtopic, you should be able to:

define the following terms: (AO1)
- communication
- formal communication
- informal communication
- barriers to communication
- jargon
examine formal and informal methods of communication (AO3)
explain barriers to communication (AO2)

2.6 Quizlet

https://quizlet.com/_cnq62q?x=1jqt&i=4jrhob

https://www.gimkit.com/view/63cabd765e105d0021837274

Barriers to communication

Refers to the various factors that can prevent information being transferred effectively or accurately.

Channel of communication

This refers to the method or means through which communications take place between the sender and recipient.

Communication

The transfer of information from one entity to another. It is vital to how well a business operates.

Cultural barriers to communication

These obstacles to effective communications stem from differences in social norms, beliefs, and values in different communities and countries

External communication

Refer to communications conducted between stakeholders of one organization and another organization.

Formal communication

This refers to any method of communication through official channels of communication. Tends to flow along the chain of command.

Jargon

Specialist or technical language used in different fields or professions in order to improve communications.

Informal communication

Also known as grapevine communication, this refers to any method of communication through unofficial channels of communication.

Internal communication

Refers to communications between stakeholders within the business organization.

Language barriers to communication

These obstacles to effective communications stem from miscommunications and misunderstandings due to language issues such as tones, jargon, slang, dialects, and accents.

Non-verbal communication

Refers to any form of communication other than oral (verbal) communication, such as email, letters, and body language.

Open channels of communication

Refers to any method of communication when information is not confidential and can be shared by and with anyone.

Oral communication

Also known as verbal communication, this refers to communication via the use of speech, such as appraisals, interviews, and meetings.

Organizational barriers to communication

These obstacles are caused by a lack of understanding of the internal functions and structures of the business, as well as the individual roles within the organization.

Psychological barriers to communication

Also referred to as emotional barriers to communication, these obstacles are caused by individuals with contrasting and conflicting mindsets, opinions, or priorities.

Restricted channels of communication

Also known as closed channels of communication, this refers to when information is confidential so need to be communicated formally to only those who need to know.

Transmission mechanism

The medium of communication or the method by which one party communicates with another.

Visual communication

A method of communication that relies on the use of visual stimuli to communicate information or ideas, such as infographics, charts, and images.

Written communication

A method of communication that relies on the use of texts, such as emails, letters, executive summaries, abstracts, notices, and reports.

Top-down communication

Communication from senior managers to employees lower down the hierarchy.

Bottom-up communication

Communication from employees lower down in the hierarchy to senior managers.

2.6 PowerPoints

2.6 - Communication

https://docs.google.com/presentation/d/1evfvGYvP1GDC6M6NTdHY7UNQxq8P9lqNjd1JXI8wGyk/edit?usp=sharing

2.6 Communication - IBID

https://docs.google.com/presentation/d/1tc7PIK64qa2I88B04DUAwy_P-wqpHdOQwst7toVZ4Ow/edit?usp=sharing

Formal and informal methods of communication for an organization in a given situation (AO3)

Formal Communication

The transfer of information in an organisation that uses defined channels, endorsed by the business organization, and tends to flow along the chain of command.

Communication that stems from the authority, accountability, and responsibility of a job.

Effective communication helps to keep employees working on the right tasks, at the right times, and with the right attitudes.

Allows managers to have a better command and control over what they do.

Formal communication also includes official communications with external stakeholders, such as customers, suppliers, and the government.

For example, students, parents, and teachers can get in touch with the IBO with general question about any aspect of the International Baccalaureate via email (support@ibo.org) or calling the regional office.

Examples of Formal Communication

Meetings - Formal scheduled meetings are a common method of communication in the workplace (just ask your teachers!) These are formal events that typically occur on the premises of the business and are directly related to work matters.
Appraisal - This is a formal performance review between an employee and the line manager. The appraisal is conducted orally, although the review is documented and signed by both parties as a record of the discussions between the manager and employee.
Reports - These are official documents that have been produced for internal and external stakeholders, such as a company's annual report to its shareholders.
Emails - The use of messages sent via electronic mail sent in an official capacity is commonly used by businesses to communicate with their internal and external stakeholder groups.
Letters - Official texts contained in these written forms of communication include letters of application (for a job role), formal notices, and contracts.
Publications - These are academic and scholarly works, such as educational publications, research papers, market research, and market analyses.
Presentations and speeches - These oral methods of communication are used to inform or address a particular audience. Examples include giving a press conference ( for public relations purposes), product launch, or presentation to prospective investors.
Company websites - The use of multimedia online platforms are used by businesses to communicate with their customers and other interested parties. This will typically include a section on the introduction or history of the organization, product details, and contact information.

Follwos an official chain of command based on formalized organizational charts.

Formal Communication Advantages

Can increase efficiency, coordination and accuracy. Predefined rules about communication can speed it up and ensure the information reaches its target audience.

Discipline, order and fewer mistakes. Employees follow rules about audience, purpose and tone that can lead to predictable and orderly communication in the organisation, with fewer missteps in communication.

Documented for future reference.

Communication through documented, defined channels means that information is recorded if it needs to be referenced in the future.

Confidentiality.

Formal communication ensures confidentiality by following structured protocols, limiting access to sensitive information to authorized personnel only. This approach minimizes the risk of leaks or unauthorized disclosures, crucial in organizational settings where privacy and security are paramount. It involves clear guidelines on who can access and share information, reducing the likelihood of misinformation or breaches

Formal Communication Disadvantages

Can delay decision-making. Top-down communication through a long chain of command can be slow and can delay decision-making.

Reduced initiative and creativity.

When communication only follows defined channels and rules, more spontaneous and original transfer of information may be prevented.

Cost. Defined channels need to be maintained and documented. This may involve payments for platforms such as business intranets, which cost money.

Informal Communication

The transfer of information in an organisation through unofficial channels of communication, such as gossip or rumours in the workplace or discussions during social events with colleagues.

It happens casually and organically, rather than through formal and pre-determined methods.

Informal communication takes place without any boundaries.

For example, informal communication may refer to an overheard conversation or anonymous source of information.

Hence, it is often called grapevine communication (as a grapevine grows freely and rapidly in all different directions if not controlled).

Examples of Informal Communication

Unscheduled conversations are often informal, even if they occur on work premises and are related to work matters. For example, colleagues from different departments might have a casual conversation during a coffee or lunch break. This includes small talk, using ordinary, everyday spoken language.
Internet-based communication such as instant messaging services, online forums, chatrooms, and social media. For example, social media platforms, such as posts and comments on Twitter, LinkedIn, Instagram, and Facebook, are commonly used to communicate information about a business in an unofficial way.
Personal conversations between two or more people in a non-official capacity. This include private conversations about matters related to work, such as something that is worrying a colleague. It also includes conversation between colleagues at work who have become friends.
Similarly, communications take place in clusters. This is a common method of informal communication, where people receive information and pass it on to their personal network (cluster) of work colleagues. Each individual may then pass on this information to their own cluster.
Open channels of communication are another example. This refers to any method of communication when information is not confidential and can be shared by and with anyone. This contrasts with formal, restricted channels of communication (or closed channels of communication), used when information is confidential and is directed in formal ways only to those who need to know.

Informal Communication Advantages

Faster. Not following defined channels or official chains of command, can mean that communication spreads more quickly.

Positive Employee relationships. Employees share information more freely, which can improve relationships between them and enhance collaboration.

Alternative means. Some important information cannot be sent through formal channels, so informal communication acts as an alternative.

Less costly

Can improve transparency in the workplace

Informal Communication Disadvantages

Miscommunication, distortion and conflict. Incorrect or misinterpreted information can be spread easily, resulting in conflict.

Rumours. Alternative types of information may result in rumours that can undermine official communication.

No official records

Lack of confidentiality. Unregulated channels of communication outside of the chain of command mean that shared information will not be confidential.

Hard to control

Differences between formal and informal communications

Example of Poor Communication:

The CEO of a US mortgage company fires 900 employees over a Zoom call

Case Study - Communication mishaps

Short list of communication mishaps from President George W. Bush, the 43rd president of the US (2001 - 2009).

“The vast majority of our imports come from outside the country.”
"If you're struggling to put food on your family."
"I know that humans and fish can co-exist peacefully."
“If we don't succeed, we run the risk of failure.”
"We have the best workforce in America."
“One word sums up probably the responsibility of any Governor: 'to be prepared'”
“It isn’t pollution that’s harming the environment. It’s the impurities in our air and water that are doing it.”

Barriers to communication (AO2)

A barrier to communication in businesses is anything that interferes with the ability of employees to convey information in a timely and accurate manner.

Language barriers
Cultural barriers
Physical barriers
Technological barriers
Organizational barriers
Psychological and perceptual barriers

Communication in the workplace interesting facts

According to this article, 39% of employee time is usually spent on role-specific tasks, and almost 61% is spent on communication: replying to emails, communicating with external and internal stakeholders, and searching for and gathering information.

According to other research, almost 75% of all business communications do not achieve their desired results. This means that workers are spending a lot of time communicating in an ineffective way.

Language barriers

Language barriers can cause major miscommunications and misunderstandings, such as difficulties related to translation of languages, tones, written language, jargon, slang, dialects, and accents.

Even when referring to the same language, these barriers can still exist (see below), leading to misinterpretations and misconceptions and hence unintended consequences.

Jargon: terminology and technical phrases used by people in certain professions and industries. Can often be confusing to people unfamiliar with it.

Cultural barriers

Cultural barriers to communication stem from differences in social norms, beliefs, and values in different communities and countries. In a corporate context, this could be due to a lack of awareness or understanding of different business etiquette in other cultures. What is considered to be the social norm or culturally acceptable in one country is not necessarily the case in other parts of the world. A lack of cultural knowledge and a low cultural quotient can lead to all sorts of communication problems.

Language Barriers: Berlitz German Coastguard

Language Barriers: My blackberry is not working - BBC

Cultural Barriers: Funny, But True: Cultural Differences

Physical barriers

Physical barriers in the workplace and the broader corporate world can also cause communication problems. Examples of physical barriers to communication include:

Physical distance is a common barrier to communication, such as people having to meet in a physical location to discuss a business venture or commercial contract. This will entail time (travel) and costs for the business. Proximity can be important for effective communications.
Time zone differences exist, even for people who work remotely. Employees and managers often find themselves having to have virtual meetings with teams that may be located hundreds or even thousands of miles away, which can cause communication issues.
Physical evidence such as closed office doors, barrier screens, and separate facilities for people of different status (such as reserved car parking spaces, catering, and toilets) can create a "them and us" culture in which employees feel detached from senior management.

Technological barriers

Technological barriers to communication are caused by people not having the right technologies and tools to communicate effectively. This could be due to a lack of finance to invest in the latest information communication technologies and/or workers not having the right training to use these effectively. Examples include:

Outdated computer hardware, machinery, and equipment.
Out of date software programmes that are prone to cyberattacks and viruses.
Technological failures, such as software crashes or poor Internet connectivity.

Organizational barriers

A business may have complex organisational structures that can delay or hinder communication. When there are many levels of hierarchy, this can delay information transfer and increase the chances of miscommunication. If an organisation has a long chain of command or tall hierarchy, it may be difficult to pass messages through the many different levels.

Psychological and perceptual barriers

Psychological barriers (or emotional barriers) are caused by individuals with contrasting and conflicting mindsets, opinions, or priorities. The source of the problem is that people often see the world differently and interpret different events in contrasting ways. Although disagreements and conflict in the workplace are inevitable, they can cause serious problems for a business if the situations are not managed, making communication extremely difficult. Examples of psychological and perceptual barriers include: