Com1

Com1

1. COMMUNICATION IN THE ORGANISATION

   • The strategic role of communication
     • The concept of strategy
       • Derived from the Greek word strategia, meaning the art of war. Used in the context of warfare and it is only since the early 1960s that it has been applied to business management.
       • Definition The determination of the basic goals and the objectives of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals. This definition encompasses three main themes, namely:
         • Determination of goals and objectives (for example improving profitability or market share)
         • Adoption of certain courses of action (for example developing a new product)
         • Allocation of resources (for example natural, financial, technological and human resources)
     • Extensions of the strategic concept
       • Strategic Management
         • Strategic management can be defined as the coordination and monitoring of an organisation’s strategy development and implementation processes. Three key strategic issues (dimensions) that managers need to address: value creation, responsiveness and responsibility.
           • Value creation To be profitable, an organisation needs to create more value than its competitors. Value means different things to different stakeholders. For example, customers want products or services that offer value for money, while investors want a good return on their investment in the organisation. Employees want job satisfaction, market-related salaries and fair treatment in return for their expertise and labour.
           • Responsiveness As the business environment became more volatile and unpredictable, there was increasing interest in a more dynamic or responsive approach to strategic management. Differences between the strategy developed prior to implementation (intended strategy) and the strategy that is actually realised during execution (realised strategy). For example, due to environmental changes, some aspects of intended strategy might not be realised.
           • Although strategy can be deliberate (intended strategy) it can also evolve through a learning process and from adaptation to environmental changes (emergent strategy). The concept of emergent strategy incorporates responsiveness in the strategic management process.
           • Responsibility This dimension involves the ethical behaviour of organisations and the economic, social and environmental impact of their actions. As society becomes more aware of the negative impact that organisations can have (for example, fraud, unfair practices or pollution), pressure on organisations to earn their ‘license to operate’ increases. The corporate social responsibility movement - promotes the triple bottom line approach (profit, people and planet) to business management.
       • Strategic Planning
         • Strategic planning is the process through which strategy is operationalised. Strategic planning involves decisions on the implementation of strategy by various functions or departments in the organisation. Strategic plans are implemented to improve the organisation and to provide staff members and stakeholders with information regarding the direction the organisation is intending to take.
         • Weaknesses - the term ‘strategic planning’ conjures up images of a lengthy, elaborate and expensive process, reserved for the most senior managers. In today’s changing environment, this is neither realistic nor ideal. The knowledge and expertise of staff members of all ranks should be incorporated in the strategic planning process. Weakness - the fallacy of prediction - the assumption that the world comes to a standstill while the strategic plan is being developed and will maintain its predicted course while the plan is being implemented - does not reflect reality.
       • Strategic Thinking
         • Strategic thinking entails the articulation of top management’s broad vision of the future and the direction of the organisation. Based on a systems view of the manner in which different parts of the organisation and the external environment influence each other. It is aware of the interconnectivity between past, present and future. Enables organisations to recognise and take advantage of emerging opportunities – to be intelligently opportunistic.
       • Strategic Decision-Making
         • Underlies the development and implementation of strategy and is based on analyses of the environment, the organisation’s resources and culture, and stakeholder expectations. Various types of information are needed. The success of strategic decisions depends, among other things, on an effective communication system. It is insufficient to simply gather the information; a communication infrastructure is necessary to ensure that the gathered information reaches decision-makers timeously.