Global Communication Benchmarking

Global Communication Benchmarking

Introduction

The following analysis is to try and explore how the selected companies followed the Problem based learning model. Evaluate if the decision making process was used in mapping up their strategies. Assess the similarities and differences in the problems of these companies. We will review if Global Communication has similar problems or not with the researched companies and compare how they handled their problems. The companies that we will be looking at are; Ericsson-telecommunications equipment manufacturer, Delta airlines, Tata Steel Manufacturing company, Philips Energy, International Business Machines (IBM) and General Motors (GM).

Key Course Concepts identified:

Communication

“Effective communication is vital to all organizations because it coordinates employees, fulfills

employees’ needs, supports knowledge management, and improves decision making.”

(McShane & Von Glinow, 2005). In every organization, many different methods of communications are employed in order to function as an effective unit. In this analysis a few methods were identified as the key concepts in organizational communication and the dimensions of communication.

“The choice of a communication medium is assumed to be rational; users match the characteristics of a particular medium to a specific task or communication objective.” (Carlson and Zmud 1999; Lee 1994; Te’eni 2001). Global Communication has chosen the public media to announce the company’s decision in the form of public news prior to making the announcement within the company to make the employees aware of the situation. Media usage in decision making is influenced by the characteristics of the decision being made (e.g., importance and urgency), and the user’s decision making role.” (Jones, Saunders, and McLeod, 1989).

Hierarchical communication is defined as “those exchanges of information and influence between organizational members, at least one of whom has formal (as defined by official organizational sources) authority to direct and evaluate the activities of other employee”

This communication pattern involves information exchanged downward from manager to employee and upward from employee to manager.” (Kreitner & Kinicki, 2004). Ericsson has chosen to employ this method to announce the company decision to the employees and union and also receive feedback from employees and union regarding the decision. The company also actively listened to employees’ concerns and provided feedback to employees.

“There are two main types of channels of communication: verbal and nonverbal.” (McShane & Von Glinow, 2005). Delta Airlines has used both channels of communication to relay the message of company’s decision to all levels of stakeholders. A letter from president was sent to employees as a form of non- verbal communication. The company has also made the verbal announcement to the employees before the news were released to public.

“The grapevine is an unstructured and informal network founded on social relationships rather than organizational charts or job descriptions” (McShane & Von Glinow, 2005). Philips’s employees’ union found out about company decision of layoffs from a grapevine originated overseas. Philips later made a public announcement confirming the news the union received from the grapevine without consulting with the union first.

Tata and GM have both chosen a similar communication channels – they both enlisted 3rd party companies to handle the communication issues. Tata has used a consulting company to convey all relevant information to all parties involved, while GM has enlisted a company for long term communication plan. The company executives as well as employees also used blogging as their means of communication.

IBM has chosen a company intranet to reach all employees, which was revealed by the employees as the most trusted source of information.

Decision making

Decision making is a process that needs to be followed clearly to avoid any pitfalls. Global Communications when faced with competition, management