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Managing a Business/Question on communication on global managers


1.   Assume that you are the chairmen of a FMCG company. Prepare a draft for your speech for the forthcoming Annual General Body meeting.    
b) “Informal communication announces bad moods of managers” – Under what circumstance this statement is valid? Explain.   

2.   a) What are the barriers to communication and how will you overcome them?
b) "Top-down communication yields better results in a firm" - Discuss.

3.   a) Prepare a report to be sent to the managing director regarding an enquiry you have conducted about the misbehaviour of a male employee with female employee.   
b) Prepare a month end sales report to be submitted to marketing manager. (You can choose the product of your choice).


1.   Assume that you are the chairmen of a FMCG company. Prepare a draft for your speech for the forthcoming Annual General Body meeting.
It gives me great pleasure to welcome you to the XXth Annual General Meeting of your Company.

It is a matter of satisfaction for me to report yet another year of robust growth and strong performance encompassing all the business segments of your Company.

The foundations that we have laid over time by investing in R & D, technology and innovation for international competitiveness, supported by a robust governance structure, continue to drive growth in your Company's multiple businesses, providing a strong momentum for a secure future.


Gross Turnover for the year grew by 20.2% to Rs. aaaaa crores. Net Turnover at Rs.aaaaa  crores increased by 26.3% driven by the  FMCG businesses, higher agri-business revenues and the continuing strong performance by the Hotels business. The FMCG  portfolio grew by AAA % during the year and now accounts for BBB % of the Company's Net Turnover. Pre-tax profit increased by PP % to Rs. Aaaa  crores, while Post-tax profit at Rs. aaaa crores registered a growth of xxx %. Earnings Per Share for the year stands at Rs. xx. Cash flows from Operations stood at Rs. Aaaa  crores during the year.

The XXXX  Group's contribution to foreign exchange earnings over the last ten years amounted to nearly USD BBB billion, of which agri exports constituted nearly AA %. Earnings from agri exports is an indicator of your Company's contribution to the rural economy by effectively linking small farmers with international markets.

You, the shareholders, can draw even greater satisfaction from the fact that these financial results rest on a strong foundation of trust earned by your Company's diverse brands, products and services and the enduring relationships formed with millions of farmers in rural India over several years. It is on this bedrock of trust, competencies, innovation and rural partnerships that we have built our aspiration to be a leader in every business segment we are engaged in.


Last year, I had spoken to you on the fundamental pillars of Vision, Values and Vitality that have powered the transformation of your Company over the past decade. I reiterated that envisioning a larger societal purpose has always been the hallmark of your Company. Indeed, this 'commitment beyond the market' is a compelling Vision that motivates us to enlarge our contribution to the Indian Society, even as we attain new milestones of excellence in sustainable wealth creation.

We have, over the years, pursued relentless innovation to forge unique business models that synergise long-term shareholder value enhancement with the superordinate purpose of creating greater societal capital. We take pride that your Company is defined by its deeply 'Indian' character that aligns corporate strategy to national priorities.

It is for this reason that we measure our accomplishments not only in terms of financial performance but also by the transformation we have consciously engendered to augment the natural and social capital of the nation. This approach towards achieving Triple Bottom Line benchmarks is key to our resolve to contribute to the national goal of sustainable and inclusive growth. It is my firm belief that business enterprises can and must make a difference towards achieving greater social equity. It is through a fundamental and unwavering commitment to Triple Bottom Line objectives that long-term sustainability of business enterprises can be ensured, unleashing in the process strong drivers that can make national progress more inclusive and equitable.

AAA  has received global recognition as an exemplar of Triple Bottom Line performance. For five years in a row, we have achieved and sustained our status as a 'water positive' organisation. We have also been 'carbon positive' for the last two years. We continue to strive towards achieving a 'zero solid waste' discharge status, having recycled over 90% of solid waste produced during the year. This makes us, to the best of my knowledge, the only business enterprise in the world, of our size and complexity, to accomplish these three dimensions of environmental excellence - an extremely challenging task given the fact that we are continuously growing our manufacturing operations.

In addition, through a concerted effort to develop innovative value-chains across our diverse business segments, your Company today is instrumental in creating and sustaining livelihoods for nearly V  million people, many of whom represent the weakest sections in rural India.

Our deep commitment in ensuring sustainability and competitiveness have given us the confidence to voluntarily publish an annual Sustainability Report with independent reputed third party verification. The 2006 Sustainability Report of your Company, the third in the series, is the first in India and among the top 10 in the world to be presented in accordance with the latest G3 guidelines of the Global Reporting Initiative.

Indeed, these achievements reinforce our commitment in making a meaningful contribution towards sustainable and inclusive growth of the Indian Society.

I take immense pride that the vision enunciated by the Hon'ble Prime Minister echoes the core values that your Company has enshrined in its management philosophy and governance structure. We have indeed been ' practitioners' of this vision for many years now. It gives me immense satisfaction that your Company has executed, on a substantial scale, innovative business strategies which result in 'mainstreaming' the disadvantaged sections of rural India.

As a nation, we face today a multi-dimensional challenge to chart a growth path that will transform the lives of almost a third of our billion population who live at the margin. Surely, it is not a task that any single segment of society - be it Government or Responsible Business - can hope to accomplish in isolation. It is true that sustained high rates of GDP growth is one of the surest ways of creating livelihoods for the disadvantaged. However, if such growth impulses do not envision or contain conscious efforts to enhance social value, it is not necessary that high growth rates alone will ensure social equity. In fact, there is a danger that competitive pressures may not actually lead to development and growth in areas that need it the most.

There is also a significantly large cost involved in implementing value-chains that are socially inclusive. While commensurate returns may flow over the longer term, there are indeed cost barriers, over the short to medium term, that inhibit investments in such socially inclusive initiatives. In the absence of strong fiscal or financial incentives, business enterprises would hesitate to raise such investments and commit physical and human resources over a longer term. Therefore, it is important to examine how market drivers can creatively facilitate such long-term investments which have larger societal benefits. Corporates will be able to support a much larger social involvement in their business strategies, if market forces facilitate such investments and returns.

How do we then create a market that will support such corporate action for social development ? If we are to transform the Hon'ble Prime Minister's vision into reality to its fullest potential, we need to find answers to this critical question.


Over the years, progressive organisations have demonstrated several laudable examples of responsible corporate action for social development. Unfortunately, many of these efforts have not been able to reach a level of scale and dimension that can make an impactful difference on a nation as large and diverse as ours. Why is it, that despite possessing rich and diverse managerial capability, a tradition of entrepreneurship, economic resources and the right consciousness, corporates are still unable to participate more meaningfully in building natural and social capital?

The reasons are many and complex. These relate to the lack of a conducive external environment as also to organisations' vision, values, leadership and competitive capability. However, if there is one common thread, it is the unassailable fact that markets have failed to reward CSR (Corporate Social Responsibility). They do not adequately provide the drivers required to sustain a level of intensity of long-term engagement necessary to produce results in the vast social fabric. As Prof. David Vogel says, in his recent work titled 'Market for Virtue', and I quote, "CSR is sustainable only if virtue pays off. The supply of corporate virtue is both made possible and constrained by the market …..while there is a place in the business system for responsible firms, the 'market for virtue' is not sufficiently important to make it in the interest of all firms to behave more responsibly."

There are also apprehensions amongst many that investing in CSR would put them at a disadvantage vis-à-vis their competitors who do not choose to carry such social overheads. Nevertheless, there are worthy exceptions, where organisations have displayed sustained commitment and are certainly the harbingers of social change and an inspiration to others. However, it is only when market forces make CSR a crucial component of shareholder value creation that new competitive forces will emerge in favour of responsible corporate action. It is then that CSR will assume a new dimension - one that is defined by market forces, and not inspired by corporate conscience alone.

I am of the firm belief that private enterprises are well placed to play a much larger role in augmenting natural and social capital. Corporates have created assets and facilities that span the length and breadth of the country, and therefore, constitute the front line of engagement with civil society. The physical presence in communities around their catchments gives them an opportunity to directly engage in synergistic business activities that can create livelihoods and add to preservation of natural capital. More than financial resources, private enterprises possess the more crucial managerial capability to ensure efficient delivery of social projects. In that sense, CSR can lead to optimum utilisation of national resources, given that far higher social benefits will accrue to every unit of incremental cost incurred by the organisation. Thus, given the right market incentives, Indian corporates can significantly add to Government efforts in pursuing growth with equity in constructive public-private partnerships.

The key to corporates sustaining a meaningful strategy for constructive social action therefore lies in the ability to create strong market drivers that incentivise CSR. Civil Regulation, including pressure groups, act as strong drivers to ensure socially responsible action. Government regulation and public policy are also influential drivers. However, these again tend to deliver the bare minimum interventions. Besides, over reliance on regulation can stifle corporate creativity and innovation. A perceptible augmentation of societal capital will take place when market drivers spur innovation and a sense of competition to deliver CSR in ways that positively impact financial results. CSR initiatives then become a part of the balance sheet deliverables, are quantified by the market and provide a direct incentive to the company to enhance socially responsible behaviour.


Can we, therefore, make markets work for CSR ? Are there compelling market drivers which would give a positive reinforcement to corporates to focus on Triple Bottom Line performance ? Can these powerful drivers energise innovation by companies, so that CSR becomes an integral part of the marketing mix and a competitive differentiator?

Fortunately, there is an answer. The most potent force that can trigger a complete rethink of corporate strategy and bring about transformational change lies in the power of consumer franchise. I use the term 'consumer' here in a broader sense to also encompass other market participants including Government - both as a buyer and regulator, Investors, Employees, Job-Seekers and other segments of Civil Society.

Consumer preference will spur a massive movement in corporate innovation to integrate business goals with the building of societal capital.

CSR can also emerge as a distinctive market differentiator and help position progressive companies more strongly in the marketplace.

Companies will vie for consumer spend by positioning CSR as a compelling value proposition.

Gains would accrue to the company and its shareholders with increasing revenues and goodwill.

Where consumers go, Investors will follow. Investors will increasingly find such socially responsible companies attractive, given the larger market gains.

Potential employees would also seek opportunities in such successful companies and the enterprises themselves would be better positioned in the war for talent.

Competition amongst CSR exemplars would lead to a perceptible augmentation of natural and social capital and this would create a more sustainable future.

Thus, powerful market drivers will emerge to encourage CSR as an integral part of business strategy. In the course of time, stakeholders will build a more enduring relationship with such companies, continuously creating value for the organisation, for its shareholders and the nation.


The key, therefore, lies in mobilising market participants - the most potent being the consumer - and enhancing awareness amongst them, so as to empower their decisions. We will need to ramp up consumer education substantially, so that they are made aware of the power they possess to transform society and bring in enduring social change. Government, Industry and Civil Society will need to join hands in this endeavour to give it more body, scope and reach.

Your Company made a beginning in this direction by creating a high visibility 'cause marketing' campaign involving our popular brands - AAAAA' and 'BBBBB' - and highlighted the link with some of our CSR initiatives. It was our endeavour to educate the consumer that with every spend on those brands, they would, in effect, be contributing to the Social Forestry and Watershed initiatives of your Company. You are aware that your Company's 'CCCCC' brand contributes significantly towards the education of the underprivileged by earmarking a portion of its proceeds for this cause. I am given to understand that school children actually prefer

These are certainly welcome developments although they occupy, as of now, a small proportion of global trade. If these individual efforts of consumers get escalated into collective action, they will certainly have a distinct impact on corporate thinking and action.

Unfortunately, the 'market for virtue' in India is practically non-existent. However, a small beginning has been made. With concerted action from policy makers and civil society, a significant force can be created by enlightened consumer franchise to spur industry into innovative thinking for social action.

India's young demographic profile will also support this trend. This goes to indicate that with greater awareness through education and exposure, the future generation will tend to exercise a 'vote' for companies with higher social accountability. This is now getting to be a worldwide trend, and with increasing connectivity through the Internet, widespread media and new tools for communication, I can see the emergence of a young global community, who share common views, common concerns, and common hopes and aspirations. This is a force that is lying dormant amongst India's confident new young generation, and once unleashed will be a formidable catalyst for change.

ALIGNING FORCES OF FRANCHISE Given the power of consumer franchise, how do we align forces amongst all the market participants to support a new movement for innovative CSR?

To make 'consumer choice' a compelling market driver we would need to create a supportive institutional framework to facilitate the process of making an informed choice by market participants. Let me briefly elaborate on some of these enablers :

First, the Policy and Institutional Framework.

Market participants would need an effective tool to make an informed choice in favour of a Responsible Corporation. I would suggest that Government support the development of a 'CSR Sustainability Trustmark', or a series of Trustmarks defined by Industry segments, which could be displayed on products and services to convey to the consumer that the enterprise follows a strong commitment to building natural and social capital. Voluntary in nature, these Trustmarks, crafted on sound scientific and market principles, will stand for the positive impact a company has made on the environment and the society. The Trustmarks could also be supplemented with Ratings, based on the extent of the individual company's involvement in creating societal capital.

The Trustmarks need to be administered by a reputed and independent body or bodies, much like the financial rating agencies. An institutional framework and appropriate guidelines can be created by a Government-Industry partnership to provide organisational support and credibility.

A major impetus can emerge out of Government's consideration to extend fiscal and financial concessions, priority clearance and other incentives to organisations that attain sustained high ratings. Government and its agencies could also give purchase preferences to suppliers with highly rated Trustmarks.

Second, the role of Industry :

In championing a sincere commitment to a Vision that embraces contribution to Society as a key component of business strategy.

In moving towards voluntary disclosure of Triple Bottom Line performance in the Company's Annual Reports, verified by independent reputed third party organisations.

In making a strong effort to attain the CSR Sustainability Trustmarks, and displaying the same on their products and services.

In enlarging the Company's contribution by giving preference to vendors with a strong CSR and Sustainability orientation.

In developing a model code of responsible conduct by Industry bodies and associations for its members.

In encouraging Modern Retail outlets to develop special sections that display and sell products with Trustmarks.

In providing support to the creation of Awards that recognise outstanding Sustainability Performance. This would provide a tremendous reputational asset and incentivise CSR significantly.

In strengthening reporting on Sustainability based on guidelines such as the Global Reporting Initiative. I am sure that the Indian operations of multinationals, not listed on Indian bourses, would also want to make such public disclosures and demonstrate their contribution to the Indian Society. I envisage a future where Sustainability Reporting will form an integral part of a firm's public disclosures, and will be valued by stakeholders in equal measure to the established practices of financial reporting.

Third, the role of Investors.

Investors play a critical role in encouraging social accountability in corporate behaviour. Globally, there are today hundreds of funds that invest in socially responsible enterprises.

Individual investors, while seeking to maximise returns from their portfolio holdings, could exercise a powerful choice for companies with high Triple Bottom Line performance.

Banks and Financial Institutions could ask for voluntary disclosures and factor the rating in their lending evaluations.

Fourth, the role of Civil Society organisations.

Consumer awareness will benefit immensely if civil society organisations and consumer bodies actively advocate the usage of Trustmarks. They could also promote awareness amongst constituents to support products and services of companies with higher Sustainability ratings.

Schools and educational institutions could also promote awareness on responsible corporate behaviour and its association with the Trustmark ratings on products and services, and design elements in their curriculum to groom citizens of tomorrow as enlightened consumers.

And finally, the Media, as one of the most powerful forces of shaping public opinion, can make a multi-dimensional contribution in this direction.

It is my strong belief that by aligning such powerful forces, we will see the emergence of a new consciousness where CSR will transcend from corporate philanthropy to a competitive value proposition.


The essence of what I have presented to you today is a considered response to enhancing corporate participation in societal development. Your Company has been at the forefront in providing both thought leadership and action in creating a more secure, sustainable and inclusive future. It is true that no single organ of society will be able to make a significant difference based on their individual action. However, the efforts made by your Company demonstrate that with innovation, commitment and by forging enduring partnerships, we can all make a difference.

Indeed, the challenges seem daunting when we witness the scale of inequity and poverty. The good news is that never before in world history have we possessed so much knowledge, technology and resources to deal with this apparently hopeless situation. It is indeed heartening to witness a growing corporate consciousness to ensure that the future generations are more secure. I hope this groundswell of effort will continue to grow and become a committed movement for a better tomorrow.

I firmly believe that Corporates in India have the capability, the vision and the entrepreneurial skill to forge a more prosperous future for the nation, even as they sharpen their competitiveness and grow their businesses globally. Mahatma Gandhi said, and I quote : "The difference between what we do and what we are capable of doing would suffice to solve most of the world's problems". We need to heed this message to realise our fullest potential.

To be able to stand tall amidst adversity, to live your convictions and know that your actions and beliefs have transformed the lives of millions is at once a humbling and enriching experience. Your company is indeed privileged to be able to make a difference, and be recognised for the contribution it makes. Our abiding Vision the strength of our outstanding human capital, and our commitment to creating enduring value will continue to inspire us as we strive to achieve even greater success in the future.

On this occasion of your Company's 96th AGM, I would like to once again thank all of you - our valued shareholders - for your unstinted support in our shared journey to create one of India's most valuable corporations. In this journey, I look to you, as always, or your continued support and encouragement.

b) “Informal communication announces bad moods of managers” – Under what circumstance this statement is valid? Explain.

The Informal Communication Network
Every company also has an informal communication network (or grapevine), which goes to work whenever two or more employees get together and start talking about the company and their jobs. Informal communication can take place just about anywhere (in one person’s cubicle, in the cafeteria, on the golf course) and by just about any means (phone, e-mail, instant messaging, face-to-face conversation).
Though it’s sometimes called the grapevine, an informal network is an extremely important communication channel. Why? For the simple reason that it’s typically widespread and can rarely be prevented, even if it’s not officially sanctioned by the company—indeed, even when the company tries to discourage or bypass it. Unofficial information crosses virtually every boundary drawn by a firm’s organization chart, reaching out and touching everyone in the organization, and what’s more, it travels a lot faster than official information.
Problems with the Flow of Information through Informal Channels
The downside of “unofficial” information should be obvious. Because much of it is communicated orally, it’s likely to get distorted and often degenerates into outright misinformation. Say, for example, that a rumor about layoffs gets started in your workplace. As more than one manager will verify, such rumors can do more damage than the reality. Morale may plummet and productivity won’t be far behind. Valuable employees may abandon ship (needlessly, if the rumors are false).[282]
And imagine what can happen if informal information gets outside the organization. In the 1970s, Chicago-area McDonald’s outlets found themselves fighting rumors about worms in their hamburgers. Over the years, Coca-Cola has had to fight rumors about terrorists joining its organization, subversive messages concealed in its label, and hyperacidity (false rumors that Coke causes osteoporosis and makes a good pesticide and an equally good spermicide).[283]
What to Do about Informal Information Flows
On the upside, savvy managers can tap into the informal network, either to find out what sort of information is influencing employee activities or to circulate more meaningful information, including new ideas as well as corrective information. In any case, managers have to deal with the grapevine, and one manager has compiled a list of suggestions for doing so effectively:[284]
•   Learn to live with it. It’s here to stay.
•   Tune into it. Pay attention to the information that’s circulating and try to learn something from it. Remember: The more you know about grapevine information, the better you can interact with employees (who, in turn, will probably come to regard you as someone who keeps in touch with the things that concern them).
•   Don’t participate in rumors. Resist the temptation to add your two cents’ worth, and don’t make matters worse.
•   Check out what you hear. Because it’s your job to replace bad information with good information, you need to find out what’s really going on.
•   Take advantage of the grapevine. Its only function is to carry information, so there’s no reason why you can’t pump some useful information through it.
Perhaps most importantly, when alert managers notice that the grapevine is particularly active, they tend to reach a sensible twofold conclusion:
1.   The organization’s formal lines of communication aren’t working as well as they should be.
2.   The best way to minimize informal communication and its potential damage is to provide better formal communication from the outset—or, failing that, to provide whatever formal communication will counteract misinformation as thoroughly as possible.
Let’s go back to our example of a workplace overwhelmed by layoff rumors. In a practical sense, what can a manager—say, the leader of a long-term product-development team—do to provide better communication? One manager suggests at least three specific responses:[285]
1.   Go to your supervisor or another senior manager and try to find out as much as you can about the organization’s real plans.
2.   Ask a senior manager or a human resources representative to meet with your team and address members’ concerns with accurate feedback.
3.   Make it a priority to keep channels open—both between yourself and your team members and between team members and the human resources department.
Because actions of this sort send a message, they can legitimately be characterized as a form of formal communication. They also reflect good leadership: Even though the information in this case relates only indirectly to immediate team tasks, you’re sharing information with people who need it, and you’re demonstrating integrity (you’re being honest, and you’re following through on a commitment to the team).

2. a) What are the barriers to communication and how will you overcome them?

Barriers to Effective Communication
There are a wide number of sources of noise or interference that can enter into the communication process. This can occur when people now each other very well and should understand the sources of error. In a work setting, it is even more common since interactions involve people who not only don't have years of experience with each other, but communication is complicated by the complex and often conflictual relationships that exist at work. In a work setting, the following suggests a number of sources of noise:
1   Language: The choice of words or language in which a sender encodes a message will influence the quality of communication. Because language is a symbolic representation of a phenomenon, room for interpreation and distortion of the meaning exists. In the above example, the Boss uses language (this is the third day you've missed) that is likely to convey far more than objective information. To Terry it conveys indifference to her medical problems. Note that the same words will be interpreted different by each different person. Meaning has to be given to words and many factors affect how an individual will attribute meaning to particular words. It is important to note that no two people will attribute the exact same meaning to the same words.
2   defensiveness, distorted perceptions, guilt, project, transference, distortions from the past
3   misreading of body language, tone and other non-verbal forms of communication (see section below)
4   noisy transmission (unreliable messages, inconsistency)
5   receiver distortion: selective hearing, ignoring non-verbal cues
6   power struggles
7   self-fulfilling assupmtions
8   language-different levels of meaning
9   managers hesitation to be candid
10   assumptions-eg. assuming others see situation same as you, has same feelings as you
11   distrusted source, erroneous translation, value judgment, state of mind of two people
12   Perceptual Biases: People attend to stimuli in the environment in very different ways. We each have shortcuts that we use to organize data. Invariably, these shortcuts introduce some biases into communication. Some of these shortcuts include stereotyping, projection, and self-fulfilling prophecies. Stereotyping is one of the most common. This is when we assume that the other person has certain characteristics based on the group to which they belong without validating that they in fact have these characteristics.
13   Interpersonal Relationships: How we perceive communication is affected by the past experience with the individual. Percpetion is also affected by the organizational relationship two people have. For example, communication from a superior may be perceived differently than that from a subordinate or peer
14   Cultural Differences: Effective communication requires deciphering the basic values, motives, aspirations, and assumptions that operate across geographical lines. Given some dramatic differences across cultures in approaches to such areas as time, space, and privacy, the opportunities for mis-communication while we are in cross-cultural situations are plentiful.
Characteristics of Effective Feedback
Effective Feedback has most of the following characteristics:
1   descriptive (not evaluative)(avoids defensiveness.) By describing one's own reactions, it leaves the individual fee to use it or not to use it as he sees fit..
2   avoid accusations; present data if necessary
3   describe your own reactions or feelings; describe objective consequences that have or will occur; focus on behavior and your own reaction, not on other individual or his or her attributes
4   suggest more acceptable alternative; be prepared to discuss additional alternatives; focus on alternatives
5   specific rather than general.
6   focused on behavior not the person. It is important that we refer to what a person does rather than to what we think he is. Thus we might say that a person "talked more than anyone else in this meeting" rather than that he is a "loud-mouth."
7   It takes into account the needs of both the receiver and giver of feedback. It should be given to help, not to hurt. We too often give feedback because it makes us feel better or gives us a psychological advantage.
8   It is directed toward behavior which the receiver can do something about. A person gets frustrated when reminded of some shortcoming over which he has no control.
9   It is solicited rather than imposed. Feedback is most useful when the receiver himself has formulated the kind of question which those observing him can answer or when he actively seeks feedback.
10   Feedback is useful when well-timed (soon after the behavior-depending, of course, on the person's readiness to hear it, support available from others, and so forth). Excellent feedback presented at an inappropriate time may do more harm than good.
11   sharing of information, rather than giving advice allows a person to decide for himself, in accordance with his own goals and needs. When we give advice we tell him what to do, and to some degree take away his freedom to do decide for himself.
12   It involves the amount of information the receiver can use rather than the amount we would like to give. To overload a person with feedback is to reduce the possibility that he may be able to use what he receives effectively. When we give more than can be used, we are more often than not satisfying some need of our own rather than helping the other person.
13   It concerns what is said and done, or how, not why. The "why" involves assumptions regarding motive or intent and this tends to alienate the person generate resentment, suspicion, and distrust. If we are uncertain of his motives or intent, this uncertainty itself is feedback, however, and should be revealed.
14   It is checked to insure clear communication. One way of doing this is to have the receiver try to rephrase the feedback. No matter what the intent, feedback is often threatening and thus subject to considerable distortion or misinterpretation.
15   It is checked to determine degree of agreement from others. Such "consensual validation" is of value to both the sender and receiver.
16   It is followed by attention to the consequences of the feedback. The supervisor needs to become acutely aware of the effects of his feedback.
17   It is an important step toward authenticity. Constructive feedback opens the way to a relationship which is built on trust, honest, and genuine concern and mutual growth.
Part of the feedback process involves understanding and predicting how the other person will react. Or in the case of our receiving feedback, we need to understand ways that we respond to feedback, especially threatening feedback.
People often react negatively to threatening feedback. This reaction can take a number of forms including:
1   selective reception and selective perception
2   doubting motive of the giver
3   denying validity of the data
4   rationalizing
5   attack the giver of the data
Following the guidelines to effective feedback can go a long way to limit these kinds of reactions but we need to be conscious of them nonetheless and be ready to react appropriately.
When we are on the receiving end of feedback we should be careful to avoid these pitfalls. Try to keep these points in mind.
1   try not to be defensive
2   check on possible misunderstanding ("Let me restate what I am hearing")
3   gather information from other sources
4   don't overreact
5   ask for clarification

b) "Top-down communication yields better results in a firm" - Discuss.

•   Top-down communication is a method of issuing commands or orders within a business using a hierarchical structure. Orders or commands originate from the highest-ranking officials within the company and filter down to the rest of the employees using the company's managerial structure. Each rung on the managerial ladder finds out information from the rung above until the information or command passes to all relevant tiers within the business.
Dependence on Hierarchy
•   A company's managerial hierarchy is of great importance when using top-down communication. A clear employee structure is necessary for each manager to know who her immediate superior and subordinate is so she can receive and communicate company directives properly

Top-down communication allows a company's managerial structure to control the flow of information and ensure that each employment level has only the information necessary to complete relevant tasks. This keeps each employment level focused and reduces the risk employees will focus on irrelevant details of a project.

An employee evaluation may also use a top-down communication strategy. In this evaluation method, an employee receives detailed information regarding techniques to succeed. Management provides feedback on employee performance and strategies to achieve work goals. Feedback is integral to allow the employee an opportunity to make adjustments to techniques and strategies in the name of improving performance.

internal communication plans offer many benefits to organizations across:
• Increased productivity
• Higher probability of achieving organizational goals
• Ability to approach situations, problems or crises proactively
• More effective and responsive customer service
• Empowered employees who take stock in your organization
• A better workplace understanding of organizational
values and purpose
• Smarter decision-making on all levels, reducing the
need for micro-managing
• Reduced day-to-day conflict between team members
• Higher employee retention rates
Another proven benefit is a reduced chance of data leaks

3. a) Prepare a report to be sent to the managing director regarding an enquiry you have conducted about the misbehaviour of a male employee with female employee.

b) Prepare a month end sales report to be submitted to marketing manager. (You can choose the product of your choice).
November 1st, 2001
Sales division, headquarters

1. Sales results (by branch, October) (in thousands)
Office N Sales---- Gross Margin--- Ordinary Profit
.  ATLANTA—567----- 53.7 -------------43.7
SAN FRANCIS5,920--- 668.9 ----------293.4
COLUMBUS    2,135---- 245.5 ----------65.7
NEW YORK     4,723---- 538.4---------- 288.3
CHICAGO        1,509---- 173.5 ----------54.8
TOTAL          14,854---- 1,680.0------- 658.5
2. Sales results (by office, cumulative total amount (in thousands)
Office NamSales Gross Margin Ordinary Profit
ATLANTA  7,843--- 878.5 ------------95.5
SAN  FRANCIS 57,348---- 6,473.7--- 2,718.0
COLUMBUS 22,875--- 2,624.0------ 826.1
NEW  YORK  49,328---- 5,619.1---- 3,118.4
CHICAGO hic14,998---- 1,719.5 ------529.3

TOTAL        l 152,392 ---17,314.8 ---7,096.3

3. Market share (%)
Area Our Company-- ABC Inc.----- XYZ Crop.
Georgia 34 45 21
Florida 43 35 22
California 45 31 24
New York 48 33 19
Illinois 51 32 17
U.S. 44 35 21

4. View
The sales results in October was relatively low. Every plan, including the budget plan for the fourth quarter, demands
an immediate reappraisal. Although the market is still slow to respond, interest from investors in IT related devices is
rising gradually. Therefore, the budget scale toward the end of this quarter needs to be taken into consideration.
As big companies have recently began to open local offices, information sharing between headquarters and branch
offices has to be accomplished as soon as possible.

Managing a Business

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Leo Lingham


In Managing a business, I can cover all aspects of running a business--business planning, business development, business auditing, business communication, operation management, human resources management , training, etc.


18 years of working management experience covering such areas
as business planning, business development, strategic planning,
marketing, management services, personnel administration.


24 years of management consulting which includes business planning, strategic planning, marketing, product management, training, business coaching etc.




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