Team Contract

MGMT20001 Organisational Behaviour

COMMUNICATION & ENRON TAKEAWAY HANDOUT

Functional Approach

Applying the functional theories: Prompt Questions Answers

What is the function of the Lay's message to employees after Skilling's departure in August 2001?

* Organising

* Relationships

* Change * In this case the function of the CEO's message is primarily about change (i.e. about, Enron's future and Skilling's departure).

* The messages are therefore complex

What networks is the CEO targeting/using?

* Formal; informal; technological The CEO is using a very formal network:

* The entire organisation through the large presentations with all employees; however, it is clear that different groups are hearing different messages.

* Audio visuals used at the presentation addressed at all employees

What channels is the CEO using? What are the advantages and disadvantages of this channel? * Large group meeting (presentations) were used whereby all employees attended.

* Advantages:

o Provides an element of a face-to-face meeting

o All employees receive the message at the same time

o CEO is seen as taking responsibility

* Disadvantages:

o The group is too large for the interaction to be meaningful

o There is no opportunity to explain the complexity of the message to individuals or smaller groups or to tailor its implications for the different groups.

o The presentation (when Lay presents to employees after Skilling's departure) is rushed and he is using an audio-visual presentation that is unsatisfactory (lack of clarity)

What is the direction of the CEO's message?

* Horizontal

* Upward

* Downward

* External * The direction is clearly downward from the CEO to his subordinates.

* However, there is an external element here. Part of the CEO's message is directed externally (and upwards) to the stakeholders and the public.

* Part of his message is designed to convince everyone that the the organisation is still strong and the worst is behind them.

Is the information load appropriate? One communication from the CEO is insufficient to convey a complex message like this.

Does not allow for the development of messages that is "tailored" to different audiences; nor do they allow for meaningful feedback.

What are the main causes of distortion and what can be done about them?

* Encoding & Decoding

* Wrong network

* Wong channel

* Wrong direction/audience

* Over-load (and under-load)

* Feedback * The targeted network, channel and audience are too generic - there is a need to consider the different audiences in the organisation, and to target different networks using more channels are needed.

* A one-off meeting may be fine as a starting point because everyone gets to hear the message at the same time from the CEO directly. But it then needs to be followed up by separate communication by different people to different networks.

* For example, the CEO needs to communicate with