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te
gccneeees, O88
3. “tee e@ oorts e
Advanced
Vocational
Training
(elt gt:
Professional certificates
SS Communication
& Customer Service
Héctor M. Pérez Feijoo
Jorge M. Pérez Hernandez
Lia Lépez Gonzalez
Carmen Caballero Bravo
www.mhe.es
ion & Customer Service
Héctor Marcos Pérez Feijoo
Jorge Manuel Pérez Hernandez
Lia Lépez Gonzalez
Carmen Caballero Bravo
Technical advisor
Maria Vicenta Sanchis Martin
IRES - CARAGAS - GUATEMALA - MEXICO
0 - SAO PAULO
MONTREAL - NUEVA DELHI - PARIS
Education OUIS - TOKIO - TORONTO
Communication & Customer Service. Advanced Vocational Training
This book shall not be partially or fully reproduced, neither digitalised nor transmitted
through any means, whether electronic, mechanic, photocopies, recordings or other
ways, without prior written consent by the holders of the Copyright. Please contact
CEDRO (Centro Espajfio] de Derechos Reprograficos, www.cedro.org) if you need to
photocopy or scan parts of this book.
All rights reserved © 2013, regarding the first edition, by:
McGraw-Hill/Interamericana de Espafia, $.L.
Edificio Valrealty, 1.a planta
Basauri, 17
28023 Aravaca (Madrid)
ISBN: 978-84-481-8546-6
Original book: Communication & customer service © 2012,
regarding the first edition in spanish, by McGraw-Hill Interamericana de Espafia, S.L.
ISBN original edition: 978-84-481-8086-7
Publishing team: Pablo Regueiro, Marta Reyero Saez, Caja Alta Edicién & Comunicacién S.L,
Antonio Aguilella Asensi and Audrey Bourke.
Translation: Antonio Aguilella Asensi.
Pictures: 123rf and McGraw-Hill’s image stock.
Illustrations: Age Fotostock, Valentin Ramon.
Layout: Caja Alta Ediciédn & Comunicacién.
Cover design: rload.es
Book design: dfrente.es
Introduction
The book you are holding in your hands, Communication & Cu.
is a clear and updated text that highlights the practical issues of
communication in order to provide you with the skills required for
of the Advanced Vocational Training Course in Administration and Fin
Managing Assistance you are studying.
When dealing with such a broad and diverse subject, the aim of being extreme
exhaustive might lead to inefficiency and confusion. Therefore, this text tries to
escape from dogma and impositions. Our goal is to develop every aspect of the
curriculum, but also to provide open alternative solutions to the problems in
business communication. Specifically, this trend is expressed in the type of activi-
ties that are included throughout the book. Along with the most common
activities for the settlement and testing of the knowledge gained by students,
we include others that are more open and participatory, consistent with the
characteristics of this subject and supported by text and web references.
In addition, we want to make the development of these activities easier for
students and teachers, and for this purpose we provide some patterns that,
within a flexible framework, will guide the process of solving problems.
Accessibility is another major advantage of this book. Along with a clear and direct
language, we have included multiple resources such as diagrams, graphs, tables
and images that allow a simple and flexible interpretation of the content. We have
also carried out a careful selection of documentary sources and references to web
pages.
In short, this text is designed as a practical introduction to a very large area by
means of direct and simple language and supporting examples, problems and real
documents that students will encounter in their future working life. These
supporting materials will complement teaching performance by suggesting
potential ways to expand the knowledge of students about this exciting subject:
business communication.
The authors
Dy Contents
Business organizations
1
2
1. The COMPANY AS AN OFFAMIZALION ou... eeseescsesssseeessssesssseecssssssssseessssesssssesssssssssesssueessssessssseesssssssssessssssssssessssesssssesssuecssssssssuesssesssssusesssnssssseessssessssseess 8
2. Types of DUSINESS OFGAaNIZALIONS ou... ecsssessssescssseesssstessssessssessssesssssssssseessseesssssessseesssee 10
3. Functions in the organization: planning, management, organization and control 12
4. Departments in the company. Organizational Charts ess escssseessssesssseesssseees we TS
B. Decision-Making... cccsecsssecssssecsssssssseessssessssessssseessssessssesssssssssesssssssssseesssssssssssssuecssssssssssessssessssseessnessssseessuuesssssssssusesssnssssssesssussssssesssuesssessssseesssnessssee 17
6. Corporate identity and Corporate IMAE «nec sessseecsssesssseeessssssssseessssessssseesssuesssssessssesssssssssueessssssssueesssnssssssessssessssseessusssssssessusesssssesssneessseessseee 20
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Check your learning .........ccccssescessesessesnsseensssensssensssenssseneeseneeseneesoeeseeeceesseneceneeceaesneneaseseneeseneeseneeseneeseesseeeeeaeesseeeeesaeennanennasennacennaceanaes 27
The communication process
1. Elements involved in the COMMUNICATION POSS... ees ssseessssesssseeesssessssseessssesssssesssseessssessssesssssssssessssessssseessssessssseessuessssseessseesssesesssseessseess 30
2. Barriers tO COMMUNICATIONS... eeccsssesseseseesssesssseesessessssssssssessssssssssssssssssssssessssssessusssssuessssusessscessseessssssssssssessessssussesstssssssessseessssssssnssssseessssseesseessssesee 39
3. Solutions to COMMUNICATION DALTi€LS ........sessesssseseeessseeee we A]
3
4. Differences between communication and information. 42
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Communication within the company
1. Communication within the COMPANY. TYPES ......cesssceccssecsseessssessssessssseessssessssesssssssssseesssssssssesssuecssssesssseessssssssseessssessssssssssssssseessneesssesessseeessseess 48
Z. Internal COMMUNICATION uu. eeesecsecssessnessscssesseessccsesesssnccsssssscsssssessecsscesscesssnscsssssssnscssecsesescessesesassenscssssssssucsseesessscesssssssnsssucaneessesseenessscessessssnscsnessesnsesses 50
3B. External COMMUNICATION uu... cesesseessesssessssseccnccsscssessscssecsesssccnscsssonssnssssesusessecssssssenscsussuscsscsscsucssesuscescesssssscsscsuesssesseessssssenscssssucsnsessceseceseessencsensenscnsesse 55
4, COMMUNICATION ON A CLISIS...... es esseseseecessecsessssnscsessenccsssseesscsssscsnensssucusssscsssusssssssnssussnessssususessesssussnessssusueesscsssucasessesssseasscussusssessssssnessensesususensenseneaes 61
5. COMMUNICATION NECWOKKS uu... cesesseessesseessessescsccsccsnsssecsscssessscesccnscsnssnsssucsssensecseesesascenscssssusssuesscsueesscescesssssscsscsucansesseessssssenecsussucsnsessesuessseeseessessssnscnsease 63
6. Communication as a source of behaviours. 65
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cee steeneeeenenseeeneenenee .. 67
4
Oral communication
5
Test review.......... 68
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Non-verbal communication
J. Non-verbal COMMUNICATION ...eessesssseesssssssssseessssesssssessssuesssseesssecsssssssssseesssssssssessssesssssesssussssseesssuesssssesssuecsssnssssssessssssssssesssuesssssesssuesssesesssseessseess 72
2. Factors related to non-verbal language... essecsssssssseeessssssssseessssesssssesssssessssesssssessssssssseesssssssssesssssssssesssnssssssesssssssssseessusesssssessnersssesessseeessseess 75
3. Functions of non-verbal COMMUNICATION wu... eessescsssesssseesssssessssessssseesssessssseesssssssssesssssssssseessusesssseessusesssssssssuesssnssssssesssnssssssessssssssssesssneesssnessssee 84
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T. Oral OXPreSSiON....cssssssssscsssessssesssseeessssssssseessssssssseessssssssssesssuuessssssssssessssssssssesssuesssssessssssssssesssuecssssssssseessssnsssssessssessssseessusesssssesssuecsssnssssssessssnssssseessneee 90
2. Listening for better communication. 199
SUMIMALPY ues ceeettteceestseneeeecenseneneeee - 107
6
Test review.......... -108
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Telephone communication
J. Telephone COMMUNICATION ou... eee ssssseecsssesssseesssesssssessssssssssessssesssssesssuecsssuessssuesssnsssssesssussssssesssuessssseessuuesssssssssusesssnssssssesssssssssseessuessssesssseesssy 112
2. Telephone Media ANd CQUIPMENE us eessssesssseeesssscsssseesssssssssssssseessssesssueessssesssssesssssssssseessusssssuesssssssssseesssussssssssssuecsssessssseesssesssssseesssesssssessnees 113
3. Additional services offered by the telephone CqUuIPMENt ou. es sessssecsssessssseessssesssssessssessssseessssesssseessseesssssesssueessssesssueesssnsssssessssessssseess 116
4. Rules for a good telephone COMMUNICATION ues eeecsssesssseeessssessssesssssesssseesssueessssssssssesssssssssseessuuesssssssssueesssnssssssesssssssssseessuesssseesssussseessseeesse 120
B. Telemarketing... cecsssesecsssesssseecsssessssseessssessssssssssesssnsssssesssssssssssesssssssssesssussssssssssessssssssusesssnsssssesssssssssssessssessssseessueesssesssssueesssnssssseessssesssssessssessssseess 125
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Test review.......... . 130
Check your learning..
Contents
Written communication within the company
7
1
2
3.
4
. Written communication
. Produce or reproduce documents.....
Models of written documents in the company
. E-mail and netiquette.......
Summary
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Check your learning «uu... cccseeseesesessesesssensssenseseesceseseeseseseseeeeeeeseeseseesesneseseeseeneseecasensseesseaeaseeaseanesaneeeaseneesseessneensneasseecsnneesnneeeaees 161
The customer service department
8
1.
2.
3.
4.
The customer service department. CUStOME SEFVICE.... ec ecssessssescssseessssesssssecssssssssseesssesssssesssssssssseessusssssseessusesssssssssueesssnsssssesssnssssseesssness 164
Stages in the process of customer service
Procedures to solve complaints and claims..
Enforcement of rules on resolution of complaints and claims...
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After-sales service
9
1.
2.
3.
4.
5.
6.
After-sales service
Relationship of the after-sales service with other processes within the company.
Quality management and the after-sales service...
Techniques and tools for quality management
Structuring the after-sales service
Management tools of an after-sales service
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The information processing
10
1.
2.
3.
Information processing 1 204
The file.......
File media. a
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iy How to use this book
© Introduction to the unit
wna
The communication process
Here you'll find the assessment
criteria of the unit.
|
You will also find a summary of
the contents you'll study. P|
© Development of the contents
68 Case study. Activities
They use what has been learnt in order to solve real They are used to work on the contents as they are
problems and situations of your professional environment. explained, and they ensure a progressive learning. Do
you think that there some issues that must be dealt with
talking instead of in writing? Why? Explain your answer.
Clear and concise explanation of the theory, along with
margin sections that provide a better understanding of
the most relevant topics:
2 Do you know that...? Examples
Gg © Web
Important
A Vocabulary
7 Watch out! rE Spanish assistant
™ Closure of each unit
Summary Review
- Diagram of the contents of this unit. It allows the detection of learning problems.
|
i Sea
Te cites Check your learning
Sd
= [=a == Two pages with final activities grouped by assessment criteria.
aa
Unit
Business organizations
In this unit you'll learn how to:
+ Identify the different types of existing
business institutions.
* Relate the usual functions of
the organization: management, planning,
organization, execution and control.
+ Be aware of the importance of an
adequate organizational structure to
carry out the provision of quality services.
+ Identify the different stages of the
decision-making process.
+ Recognize the different types of existing
trademarks.
+ Differentiate between corporate identity
and corporate image.
unctional and
nal features of every
ganization.
rtments in an organization.
ional charts.
methods for decision-making.
7 Business organizations
Vocabulary
Profit. Gain or advantage taken of
something.
@ 1. The company as an organization
How many companies surround us? The bus that we take every day belongs to a transport
company; the bakery where we buy bread (Fig. 1.1) is a company too; and the bookstore where
we buy academic material or text books is a company as well. They all look different but they
have many things in common. From this starting point, we can define what a company is as
follows:
A company is a for-profit entity the primary purpose of which is to obtain benefits
through the sale of goods or services on the market.
Let’s consider this definition:
+ Entity. This is a community considered as a unit, that is to say, there is a group of people
forming the entity that are not treated individually, but collectively as a whole.
+ For-profit. This means that it has been created in the interest of making money, unlike other
types of organizations such as foundations or NGOs (non-profit organizations), which are
aimed at obtaining a social benefit.
* Through the sale of goods or services on the market. Companies may engage in the sale of
goods (bread, photocopies...) or services (public transport).
When a company is created, the employer or the partners provide capital with which the com-
pany purchases a range of goods. In addition, many times premises are bought to develop
the activity; it may also have mobile phones, company cars, etc. These are the assets of the
company.
However, the value of the company rarely coincides with the value of its assets, and this is
because the company, in its every-day performance, gains customers and tries to retain their
loyalty, creates a good image in the market (corporate image}, and also generates expectations
for benefits.
The value of these intangible assets is very difficult to assess. In addition, they are not
included in the list of the company assets that we can check through accountancy. However,
when the company is sold, it is not only for the price of its tangible assets, but also for the value
of its intangible assets. Those assets that add value to the company exist because there is an
organized exploitation of resources.
This is the reason why the most relevant is-
sue about the company concept is that all this
group of goods, rights and people must be or-
ganized; therefore, hereinafter we will refer to
it as an organization (Scheme 1.1).
In turn, organization is a broad concept that
may have different meanings:
* Regarding the allocation of tasks to emplo-
yees, the way decisions are made and who
takes the corresponding responsibility, we
may talk about internal organization
Fig. 1.1. A small shop is a company too. Think about original or very specialised small shops * Ina broad sense, companies are called or-
that you have seen lately in your town or neighbourhood. ganizations.
Business organizations ]
Assets
Property
+ rights
+ obligations
Intangible
value of Work
the company Employer
Image + employees
+ customers
Scheme 1.1. Components of the concept of organization.
When it comes to perform their activity, organizations must develop mechanisms for
communication, both among its members and with other economic agents they are rela-
ted to (suppliers, customers...) That is to say, an internal communication and an external
communication. We'll deal with these two types of communication later.
Also internally, the organization is structured on areas or functions, which give rise to
departments. Imagine you read an article in the newspaper or hear an interview with a pres-
tigious doctor; usually the function of the person who writes the article or the doctor appears
under the name and includes the correspondent department (for example, Jaime Alvarez,
Director of Human Resources of Petroleros Europeos, S.A. or Alejandro Salgado, Head of Gas-
trointestinal Surgery at Hospital Salud es Vida).
Thus, the organization has an internal structure in which the work is divided among em-
ployees and hierarchical relationships are settled with the aim of optimizing the skills and
knowledge of each member.
In the following sections we'll learn more about these issues, as well as their legal or juridical
form, as organizations can be formed in several types (corporation, limited partnership, etc.),
and also about corporate image or corporate identity of the company.
65 Case study 1. Buying a company
The company Brokers, S.A. wants to buy another company, Aislantes, S.L. which has been
running for several years.
The total value of the goods of Aislantes, S.L. after deducting debts (that is to say, its
assets), amounts to three million euros. However, Brokers, S.A. is willing to pay up to four
million euros to obtain not only the assets of Aislantes, S.L. but also its image, techno-
logy, customers and profit expectations (already signed contracts).
Solution:
This gap of one million euros corresponds to the value of the organization Aislantes, S.L.
and it’s usually known as goodwill.
S
ih Spanish assistant —————_
Hay muchas formas de referirse a
una empresa en inglés. El término
mas general es business, que se
refiere al concepto de "negocio"
en general. Cuando ese negocio
se crea por la asociacién de varias
personas, recibe el nombre de
company, que es el término que
usaremos casi siempre en este
libro. Ademas, también pode-
mos referirnos a ella como firm
o enterprise. Por otro lado, una
corporation es una empresa que
tiene personalidad juridica propia.
S
Vocabulary
Goodwill. Intangible value of a
company.
7 Business organizations
Do you know that...?
Freelance workers (self-employed
workers such as many taxi drivers,
lawyers, etc.) belong to the cate-
gory of individual private com-
panies.
Watch out!
The owner of the company is
not always its manager. In pymes
(small and medium-size compa-
nies) both roles usually coincide in
the same person, but in large com-
panies management is delegated
to professionals on a fee.
oO Spanish assistant —————_
Hemos dejado los nombres de
las diferentes formas juridicas
en espafiol porque suelen variar
de pais a pais, asi no tienen una
traduccién exacta. Por ejemplo,
seguro que has visto alguna vez
las siglas Ltd. después del nom-
bre de una empresa anglosajona;
pues bien, esas siglas significan
Limited, que se corresponderia
con nuestra S.L., aunque con dife-
rencias. Si quieres saber mas, con-
sulta el siguiente enlace: http://
en.wikipedia.org/wiki/Types_of_
companies.
/
VA Activities
1. Search the web and indi-
cate the minimum required
capital to form a corpo-
ration (S.A.) and a limited
company (S.L.), and the
difference between stocks
and shares.
2. List the types of existing
S.A. and S.L. You can find
documentation online.
@ 2. Types of business organizations
Business organizations may be classified according to various criteria. In our case we'll focus
on those features that allow us to distinguish their legal and organizational structure.
© 2.1. Legal classification
First of all, we must distinguish between public and private companies, depending on who
holds the managing power (the State in the first and individuals in the latter).
In turn, private companies are divided into individual companies, when they belong to only
one person, and corporate companies, when the owners are several people.
In Spain, there are several types of companies with their own legal features:
Sociedad anénima (S.A.)
Limited liability companies
(partners do not respond with
their personal assets)
Sociedad de responsabilidad limitada
(S.R.L.0 S.L)
Sociedad cooperativa
Companies with unlimited liability Sociedad colectiva
(partners respond with their Sociedad civil
personal assets)
Comunidad de bienes
Limited partnership (general
partners respond with their goods, | Sociedad comanditaria
but community partners don’t)
Societies in which a minimum S.A.
capital is required S._L.
Societies in which no minimum
capital is required Other companies
Companies that, apart from
obtaining benefits, aim at
integration with the environment
and social cohesion
Cooperativas
Sociedades laborales
Companies that only seek profit Other companies
Sociedad colectiva
Sociedad comanditaria
S.A.
S.R.L.
Market companies
Companies whose activities
are commercial
Non-market companies Other companies
Table 1.1. Types of companies in Spain.
Besides the abovementioned features in Table 1.1, the following are also relevant:
+ The minimum capital of the S.A. is higher than the one of the S.L.
+ The identity of the partners is important in the S.L., so partners must give their approval
when they transmit their shares; in the case of a S.A. (stock), this is not important.
+ Inthe S.C., partners bring money or time to implement it; in the C.B., the participants ex-
ploit or manage pre-existing property without obligation to bring further capital to form
the community.
Business organizations ]
© 2.2. Classification according to the
organizational structure
Each of the several divisions that we may find in this type of structure is known as department.
The organizational structure is the distribution of the parts of an organization.
Organizations use this means to achieve the goals they have set.
© Types of organizations by organizational structure
+ Its structure is clearly defined and very stable.
Formal + Each element of the company is located and identified and performs its function obeying orders
from other individuals that are clearly identified.
Informal + It arises from spontaneity: its members engage in relations that were not previously defined.
Centralized
* The decision-making authority occupies the top position in the corporate hierarchy.
* The possibility to delegate tasks to lower positions is minimal.
Decentralized
the structure.
* The authority assigns or delegates the decision-making to individuals in lower positions of
hierarchical
* The principle of hierarchy: each employee receives orders from his
Linear organization immediate superior.
Simple + Itis typical of pymes.
Functional + Subordinates in lower levels receive orders from several heads of
organization department instead of receiving them from only one head.
Mixed or hierarchical + Heads with authority make their decisions upon the previous advice
functional _
ae from specialists (staff).
organization
Organization * Decisions are made and responsibility is taken as a group, but not
in committees individually.
Complex
* The organizational structure resembles a double-entry matrix.
For example: one entry would be the function to perform in the company
Matrix organization and the other would be the project to be developed in the company. Thus,
there are at least two heads: a hierarchical-type head linked to functions
and a project head.
Highly
* There's a large number of hierarchical levels and thus a big gap between staff and managers.
Flat + Virtual absence of intermediate levels of command between management and staff of the company.
Table 1.2. Types of organizations according to their organizational structure.
65 Case study 2. Matrix organization
The company Ricos Quesos, S.L. is divided into two geographi-
cal areas: north and south. In turn, it develops three different
products: cured cheese, semi-cured cheese and soft cheese.
Thus, if Ricos Quesos, S.L. was organized independently in each
geographical area, we would have duplicate structures and tasks.
It could also happen that the different criteria between the both
areas resulted in different products depending on the area. Howe-
ver, this could be avoided if employees simultaneously received
orders from the area manager and from a product manager in
charge of unifying the technical criteria for both areas.
How could this approach be reflected in a matrix?
Solution:
Head of cured cheese Employees Employees
Head of semi-cured cheease Employees Employees
Head of soft cheese Employees Employees
S
7 Business organizations
6 Vocabulary
These are some concepts related
to planning:
* Forecast. It’s something that is
expected to occur. It is a hypo-
thesis about what we believe
will happen in the future.
Budget. It’s a forecast, but asse-
ssed in monetary terms.
Program. A set of tasks, a calen-
dar for carrying out these tasks, a
responsible person for them, and
resources to perform them.
S
[ee Do you know that...?
There are several tools in planning
that can help us make plans in the
short, medium or long term.
The most important and well-
known are the following two:
* PERT: it was originatedin the U.S.
Navy. Basically it involves the
graphic representation of a se-
ries of tasks that form a project.
GANTT: it’s another graphic te-
chnique in which you specify the
expected time to spend on each
task within a process.
@® 3. Functions in the organization:
planning, management,
organization and control
In the different classifications that we have seen before, we talked about the leadership role
of line managers. In turn, we distinguished between the owner (employer) and the manager of
the company, who, as we studied, may not always be the same person.
The individual or individuals who manage the company have the mission of organizing all the
resources with the aim of obtaining benefits for the company or organization through
four functions: planning function, organization function, direction function, and control
function.
3.1. Planning function
The planning function consists of establishing the goals that the company has to reach.
In other words, it is the ideal that will guide the company in its performance.
For example, the company Disconta XS, S.L. wants to launch a new product to market with
the purpose of covering an unmet need.
The employer can plan many variables such as what product or service a company will sell,
which activities it will develop or which organizational structure will be implemented.
To do this, goals must be initially settled, and, according to them, the best strategies to achieve
them will be determined. This is known as strategic planning.
In any strategic planning there are several factors that the employer must take into account:
+ Resources: the questions concerning this particular issue are which elements should be
used to achieve the goals, if they are available and, if they are not, how to obtain them.
For example: according to the example above, and as a result of several market studies, the
company Disconta XS will devote an initial budget of € 50000 and a total of 15 workers
will handle all the processes to launch this product.
+ Actions: the question here is what is going to be done in order to achieve these goals. Mo-
reover, these actions have to be sequenced in time and, if it’s necessary, some of them will
have to be prioritized over others. For example, the plan made by the company Disconta XS
implies the performance of the following phases:
a) Market research for the product.
b) Determination of physical resources and staff needed.
c) Manufacture of the product.
d) Distribution and sale of the product.
+ People: the point here is how many people are needed to achieve the objectives set and
which tasks or functions have to be performed by each staff member. In the event of
not having all those people available, the question is if it's possible to hire them or not.
For example:
a) Product design: as the company itself does not have this specialized staff, it has to
outsource it.
b) Manufacturing: it has been decided that a total number of ten employees will be needed
for the performance of the different stages in the manufacture of the product.
Business organizations ]
c) Storage: three workers are considered necessary for this function.
d) Distribution and sales: the tasks of distribution and sales will be outsourced (that is, they
will be performed by staff outside the company); therefore, there's no staff assigned to
this function.
+ Control: the point here is which control measures have to be established to act in the
events where deviations from planned objectives or goals occur. For example: the esta-
blished control system is based on the following standards:
a) Product/employee: productivity of each employee cannot fall outside the 5% over the
initial target that has been proposed.
b) Costs: the costs for each production process may not vary more than 3 % of planning.
® 3.2. Organizational function
The employer must ensure that every human and material resource meets the assigned
function, and also controls what relations are established among them and intervenes if it is
necessary. That is to say, the aim of the organizational function is that all the resources that
have been settled in the planning phase are adequate and that the relationship between them
is optimal to reach the achievement of the targets.
Every organization process implies a restructuring in which bodies or departments are created
to carry out the corresponding tasks.
® 3.3. Leadership function
Once the functions of planning and organization have been defined, the company has to start
working.
The leadership function (or management) is the task of control that the employer has
to perform upon his or her staff to motivate and guide it in the achievement of the
objectives that have been previously planned.
Leading is also to explain or transmit the company’s plans to others and give appropriate
instructions so that, by means of performing them, the planned goals are finally reached.
This is one of the most complex existing functions in business, as the employer should not
only guide and motivate, but also understand the problems that his or her employees may
face in the process of achieving the objectives, in order to intervene, if it’s necessary, by faci-
litating support tools.
Schematically, this function could be summarized as follows:
ny Important
A leadership style is the set of
methods and procedures used by
management to fulfil their leader-
ship roles. There are many classi-
fications of leadership styles, but
they can be grouped into three
main types:
a) Authoritarian style: also called
"autocratic", it’s based on the
allocation of tasks and workers
by managers. Each employee
knows what to do. This is not
positive for the participation
of employees in the decision-
making process.
b) Democratic style: also known
as "support to workers", it faci-
litates teamwork and the par-
ticipation of employees in the
decision-making process.
c) Advisory style: it is regarded as
a combination of the two styles
above. The manager consults
with his or her employees, and
therefore they feel valued in the
company. However, the mana-
ger is the one that ultimately
decides.
d) Passive or liberal style: in this
case, the directors or managers
settle the objectives that the
organization has to reach and
employees organize with each
other how to achieve them. The
role of the manager is limited to
giving advice or transmitting in-
formation on work procedures
in the event that the employees
ask for it.
Scheme 1.2. Functions of the management of the company.
7 Business organizations
=
—
Fig. 1.2. Levels of direction.
Vocabulary
Effectiveness. Ability to achieve
the desired effect.
Efficiency. Ability to achieve the
desired effect at the least possible
cost.
3 Case study 3. Control systems
turing process.
The company Control, S.L. is dedicated to manufacture and sell variation for this variable will also be set (for example:
computer hardware. It decides to establish a control system in -5 %).
the company in order to evaluate the results of the manufac-
The estimated production volume per month is 5000 units for production of each employee will be obtained every
a total amount of 200 working hours per month. Which control day.
system would be the most suitable for this company?
Solution: report daily data to the control department. This de-
a) Control variable: a variable regarding production/em- partment will assess and determine the corrective mea-
ployee will be set. Moreover, the affordable range of sures to be carried out in the event of deviations.
In turn, when we talk about management we may find three different levels (Fig. 1.2):
Globally: this is management itself, since it refers to the entire company. This is also known
as top management.
Departmental level: it includes what is known as "company management", as it relates to
the technical or intermediate heads of the organization. Its scope is each and everyoneof the
departments in which the company is structured.
Operational level: it refers to every defined group of people or tasks. It is usually known as
supervision, and it corresponds to the operational level of the organization.
® 3.4. Control function
The control function is to verify if everything goes as it was previously planned, if the
instructions that have been given are being followed, and if the settled principles are
being observed. This verification will highlight potential weaknesses and mistakes so
that they can be solved or corrected and prevent them from happening again.
Moreover, this function also helps the employer to assess the outcome of the decisions that
have been adopted by means of the measurement and correction of the activities that are
being performed in the company, and always trying to ensure that the outcome fits the plans
that were previously developed. Thus, the employer may detect possible deviations that can
be analyzed in order to decide which corrective measures are the best to adopt with the aim
of solving potential problems.
As we can see, there is a direct relationship between planning and control, as any planning
process necessarily requires a control system. Thus, the organization has a monitoring me-
chanism that allows it to assess the extent of achievement of the objectives that have been
proposed and, therefore, to assess the effectiveness of the planning.
In any control process, we can define the following stages:
a) Establishing several control variables (for example, productivity / employee).
b) Specifying how we are going to gather information about the variable that we have set
(daily production statistics, etc.).
c) Heads of the control department will compare the expected data to those that have been
collected on an actual basis and will discuss the deviations that may have occurred. For
example, if it is planned that 1000 units of product A must be obtained every day but daily
production statistics show that only 950 units have been obtained, there is a deviation
from the figures that were previously planned.
d) According to the obtained deviations, the most appropriate remedial actions will be
proposed. In our case, the measure could be to increase working time.
b) Data collection: it will be done through the company’s
internal accounting. To do this, worksheets with the
c) Control department: the heads of departments will
J
Business organizations ]
@ 4. Departments in the company.
Organizational charts
© 4.1. Concept and types of departments
As we mentioned before, the function of organization involves dividing the company into
smaller units or structures.
These units are known as departments, areas or functional units of the company,
and they are specialized in one or more specific tasks in order to achieve the goals or
objectives that have been planned.
The tasks that are carried out in each department are usually supervised by the head of such
department.
Generally speaking, departments are usually set according to the functions attributed
to them. Thus, there are four main functions that most common departments usually per-
form (Table 1.3): production, commerce, finance and human resources.
+ It generates products or services through the transformation of resources.
* It is also known as operation unit.
Purchasing department + It’s responsible for the procurement of goods or services for the company.
Sales department + It’s responsible for pricing, customer relations, conditions of sale, etc.
* It obtains and manages the money that the company needs to develop its
activity and controls all economic activities.
+ It plans and implements the decisions relating to recruitment, selection,
training and design of compensation policies of the company staff.
+ It may also be responsible for security and hygiene at work.
+ In large companies, it develops performance evaluation programmes to
assess the activity of employees.
Table 1.3. Most common departments in companies.
® 4.2. Organizational charts.
Concept, features and types
An organizational chart is a diagram that schematically shows the formal structure of the
company and its departments, functional areas and its relationship of interdependence.
The main features of a classic organizational chart are those appearing in Table 1.4:
It outlines the structure of the company, representing the units that form it and indicating the hierarchical relationships among them.
It highlights the degree of dependence, as well as its hierarchical relevance.
It indicates the specific name of departments and, sometimes, the name of those responsible.
It shows a temporal reality: it must represent the hierarchical structure in the company at the time it is made, but not the when the company was created.
It must be understandable: the graphical representation must be easily understood by those who read it.
It is expressed simply: it must contain only the essential elements to provide the information that is intended to transmit.
Table 1.4. Features of a classic organizational chart.
7 Business organizations
As for the existing types of organizational charts, they vary depending on the criterion that
has been chosen, as shown in the following table:
Informative It informs the general public about the company structure, so it tends to be very simple.
Analytical It contains the whole structure of the company in detail.
General It covers the full set of the organization concerned.
Partial It only shows a part of the structure.
Structural It only shows the names of the elements, their hierarchical position and authority relations.
Functional It reflects the functions or contents that are assigned to the different departments.
Staff It contains information on job positions.
Vertical It is made from top to bottom in a pyramidal layout.
Horizontal It is made from left to right, and the base of the pyramid would be on the right.
Circular
The highest authority is placed in the centre and from this point, increasing circles are
developed to represent the different levels of authority.
Table 1.5. Types of organizational charts according to different sorting criteria.
Here you can see two examples of charts: the first belongs to a highly hierarchical company,
and the second belongs to a flat company.
Example of a highly hierarchical company General management
Staff director Financial director Commercial director
| I |
Head of the technical office Financial technicians Head of sales department Head of purchasing
department
—_— ——
Payroll responsible Selection responsible Store operator
Scheme 1.3. Chart of a highly hierarchical company.
Example of flat organization
Manager
|
Marketing head Production head Financial head Human resources head
Scheme 1.4. Chart of a flat-organization company.
As you can see in the first chart (Scheme 1.3), there are three department managers: staff,
financial and commercial. The general manager (or CEO) is above, and below we can find heads
of different areas or technicians, who may also have, in turn, workers in charge of different tasks.
In the second chart (Scheme 1.4), only basic information is shown: a manager and four
department heads.
VA Activities
3. How many organizational levels are there in the organiza-
tional chart in Scheme 1.3? Specify who reports directly to:
4. Make the following organizational charts:
a) Informative chart of a farming company.
a) The commercial director.
b) The head of sales.
c) The store operator.
b) Partial chart of a computing company.
c) Functional chart of a hotel company.
d) Vertical chart of a wine export company.
1
Business organizations
@ 5. Decision-making
We are constantly making decisions in our daily life: we decide the clothes that we will be
wearing, the road we will take to go somewhere, and many other issues that arise all the time.
However, we are scarcely aware of many of those decisions, as we make them as if they were
reflex actions; nevertheless, there are other decisions that we consider important enough to
think about them thoroughly.
The decision-making process is one of the major responsibilities for managers or executives,
because, depending on the decisions they make, the company will meet its objectives or not.
This is the reason why many economists and human resources specialists believe that busi-
ness management is definitely an ongoing process of decision-making.
Decision-making in the company is a rational process by which one or more individuals
choose between two or more alternatives in order to solve a problem.
© 5.1. Types of decisions
Decisions may be taken as an individual or as a responsible for an organization; all those deci-
sions may vary a lot depending on their level, importance or scope. Therefore, in Table 1.6 you
can find the most significant classifications:
+ It is made by one single individual who is the one responsible
Individual for it.
Group + It is made by several people, who are responsible for it.
+ It is made by the top hierarchical level.
* This decision involves planning and organization issues
Strategic / Level | of the company.
+ It has to do with long-term goals.
* This decision involves planning and organization issues
of the company.
+ It is made by the middle positions of the company.
* It is aimed at the efficient allocation of resources to achieve
the goals set at the strategic level.
Tactical / Level Il
+ It is made by the executives at the lowest level.
* It involves the type of decisions that are made in the
performance of regular work.
Operational
/
Level Ill
+ Itis repetitive; it must be taken regularly.
poreculod * There is a process to facilitate its performance
+ It is new to the company, and then it has to be made when
the unforeseen circumstance arises.
* There's no settled procedure for it.
Non-schedulable
Table 1.6. Types of decisions according to different sorting criteria.
Activities
5. Mr. Roda is the final decision maker of Banco Oscense. Give examples of the decisions
that he or the rest of decision-making levels could adopt for the bank according to
the types in Table 1.6.
6. Search the web for other possible classifications of decisions
authority, consensus, etc.).
(regarding experience,
>
«i
Fig. 1.3. The decisions we make lead us
one way or another. Just think about th
decision you made to study Vocational
Training and the changes that it has
brought to your life.
Oo Examples
Types of decisions:
* Strategic/Level |: where to lo-
cate production facilities, which
the capital resources should be
or which products will be pro-
duced,
Tactical/Level Il: budget use and
control.
Operational/Level Ill: alloca-
tion of tasks to workers.
Programmable: payroll.
Non-programmable: launching
a new product.
je
J
7 Business organizations
Do you know that...?
When somebody has to make a
decision, the choice is influenced
by several factors:
Resources available.
* Risk.
* Time.
Pressure.
Beliefs.
Values.
3 Case study 4. Decision-making process
Gestoria FiscalSur, S.L. is increasing its customer base and
plans to hire more staff, but it has a problem: the lack of space
in its current workplace. Which process of decision-making has
to be taken in order to solve this problem?
Solution:
the following stages:
The process that has to be taken for making such a decision has
5.2. The process of decision-making
As we indicated before, decision-making is a process consisting in choosing between two or
more alternatives (take the bus or the subway, go to the gym or go shopping, etc.).
It is obvious that when we have alternatives that are common and without much importance
(as those above), the decision process is almost mechanical. But when we face new problems
or those that are relevant somehow, it is necessary to perform the entire process and assess
all possible alternatives.
The decision-making process consists of four main stages:
1. Analysis of the situation. In this first stage, we must define the goal we want to achieve
to solve the problem and what causes it. Therefore, it is essential to find all the necessary
information, both present and past.
2. Planning and assessment of alternatives. In a second step, we identify the different
options that we can choose and even raise new ones. Thus, the more options we have, the
more we are able to find the most suitable. We will make an assessment of the alternatives
by eliminating the less advantageous.
3. Decision and execution. At this stage, we will decide which the best option is among the
possibilities and we will put it into practice, that is to say, we will execute it.
4. Monitoring and evaluation. Finally, we will assess whether the results correspond to our
planning or not, that is to say, if we have achieved the objective or if we have solved the
problem that we wanted to solve. Otherwise we will have to go through the process and
the selected alternative again.
on the suburbs; c) place C: this location is slightly sma-
ller than the above, but it is in a big neighbourhood in
the city and surrounded by many businesses.
3. Decision and execution: the company will finally take
place C, because although it is somewhat smaller, it
is easily accessible and is situated in a neighbourhood
where there are many potential customers.
1. Analysis of the situation: the company wants to rent a
new place, where there is room for more workers, but in
turn this place must be easily accessible to their custo-
mers and allow the company to gain new customers.
2. Planning and assessment of alternatives: FiscalSur, S.L.
has three alternatives: a) place A: it’s downtown, but with
few parking areas (it will be dismissed for lack of acces-
sibility); b) place B: it’s very accessible, but it’s located
. Monitoring and evaluation: once installed at the new
location, FiscalSur, S.L. will check if the main problem is
solved, that is to say, if they have enough room for ever-
yone. It also has to make sure that the place is comfor-
table for its customers, and if, moreover, moving to this
new place has implied an increase in its customer base.
Otherwise, it may want to rethink its decision and keep
looking for more suitable premises.
5.3. Decision-making in a group
In business, individual decisions are very common, although today there is a growing
tendency to make decisions collectively or at least to allow a group to express their opinions,
although the final decision is made only by one person.
The decision-making process in a group has a number of advantages and disadvantages with
respect to decisions on an individual basis:
Business organizations ]
Advantages:
+ It allows for more and better information gathering and offers different viewpoints.
+ It produces more and better solutions.
* It increases motivation and commitment.
+ |t encourages creativity.
+ Decisions are usually accepted by everyone, even those that are riskier.
Disadvantages:
Fig. 1.4. Today companies tend to make
their decisions on a group basis because
of its many advantages.
+ It takes a longer time.
+ It dilutes individual responsibility.
+ There's a risk of conformism: sometimes a right personal opinion is abandoned in order to
reach a consensus.
+ There may be members of the group that self-censor, avoid defending their views or critici-
zing the others for fear of rejection from the group.
+ There is inequality: members of a group are never equal, as they differ in experience, level
or role in the organization, verbal skills, etc. Therefore, a member may try to dominate the
group.
As for the way of making group decisions, there are many techniques (Table 1.7), and
the following are the most important:
+ Its aim is to develop creativity and find an innovative solution.
* Once the problem has been explained, each participant brings ideas spontaneously, regardless of the order in which they speak,
the value or relationship of the ideas.
* Ideas are written where everybody can see them.
* To be effective, one cannot judge the ideas of others and self-censorship has to be avoided.
* Once the group is not able to develop more ideas, these ideas must be valued and the members have to decide the solution;
this stage may be done by the same group or by a different one.
+ It consists in dividing the group into subgroups of 6 people, who will discuss a topic for 6 min.
+ After this time there will be a sharing, and together they will draw a final conclusion based on reports of the subgroups.
* It is very useful when dealing with a problem that can be split by assigning each of the sides of the issue to a subgroup.
* The decision can be analyzed from six different perspectives, each of which is represented by a hat of one colour:
— White: it represents the facts objectively, it works with facts.
— Black: this is the most pessimistic thinking, working with drawbacks and mistakes.
— Yellow: it symbolizes optimism, and works with advantages, successes and benefits.
— Red: it represents emotions, feelings, intuitions ...
— Green: it’s related to creative, innovative and different ideas.
— Blue: it organizes and coordinates the various thoughts. It is used by those running the meeting.
* The idea is to give the different types of thinking among the members of each group and analyze the problem from
the perspective of the corresponding hat.
It combines individual work and group work. It is divided into these steps:
— The moderator of the team formulates the problem and asks each group member to write as many answers as possible.
— The moderator collects the answers and reads them aloud, guaranteeing anonymity. Similar ideas are grouped on
a whiteboard.
— The group discusses ideas to clarify, develop or qualify them.
— In writing, each member assigns a score to ideas. The moderator collects the scores, also anonymous, and quantifies them.
— The ideas with the most votes will be adopted as group decisions.
+ It develops a great deal of ideas and, as the process is made in writing, it prevents some of the disadvantages of oral group
decision-making, such as interferences caused by hierarchical differences or having more outgoing people covering most of the
meeting time.
Table 1.7. Techniques of decision-making in a group.
7 Business organizations
Important
Corporate identity has to be based
on actual qualities or intentions
of the company, and not only
in what is believed to please the
public.
If the company uses attributes
that do not belong to it, the public
will clearly notice the inconsis-
tency.
@ 6. Corporate identity and corporate
image
6.1. Corporate identity
In the beginning
of this unit we talked about the need for controlled communication processes in
the company. In order to understand this importance, first of all we must understand why the
company needs to communicate. And not only to communicate, but also why this commu-
nication has to be performed in a controlled way.
In advanced societies, people are subjected to thousands of daily advertising stimuli. We go
down the street and there are advertisements everywhere; we turn the TV on, and advertise-
ments are there too; and the same goes for magazines. All these companies that launch their
messages want us to buy or use their products or services and to recommend them to the
people we know, but there are too many of them. This oversupply is the reason why compa-
nies have to make a major effort to stand out from their competitors, and the only way of
standing out is making their consumers perceive them as a unique product, trademark
or professional.
Thus, we can define corporate identity as the enduring traits that define the personali-
ty of the company. That is to say, it is what the company decides is going to differentiate
it from its competitors for a long period of time. We could say it’s its DNA.
© A. Properties of corporate identity
When it comes to implement corporate identity, a company must fulfil four properties:
* Stability: it has to be maintained over time so that the public may have the possibility
of being aware of it.
* Consistency: it must be based on actual attributes, but not in qualities that the company
does not have.
+ Evolution: it has to evolve as time goes by to adapt to changes in society.
+ Uniqueness: the definition of the company must be exclusive, that is to say, products,
technology or services can be copied, but not the identity. This is the most important
property.
©) B. Dimensions of corporate identity
Corporate identity has two dimensions:
+ Objective identity: it is formed by actual elements: legal form, corporate structure,
history, the goods it produces...
* Subjective identity: it is formed by the attributes associated with it, but they don’t need to
be tangible. For example, the company may be friendly, modern, classic, green...
Making an analogy with people, we could say that an objective identity might be formed by
traits such as age, hair colour, skin colour, nationality, etc., while subjective identity might be
formed by other traits, such as being sympathetic, altruistic, friendly and so on.
It is essential that all members of the organization know and share the corporate identity of
their company, as this identity is present in each and every action that the company performs:
it’s in the way phone calls are answered, and also in its advertisements. Everything must be in
accordance with corporate identity.
Business organizations ]
©) C. Communication of corporate identity
Any organization, by the fact of its mere existence, is sending information about itself to the
environment. This information is issued in two ways:
* Voluntarily: this is the information that the company issues in a controlled and intentional
way. For example, if a line manager of the organization offers a lecture on the history of the
organization at a conference.
+ Involuntarily: this is the information that the company issues without control. Those data
are inferred from comments, actions or opinions that are produced in private or unintentio-
nally. For example, if the president of the organization meets his or her old college buddies
and talks about the way sales are going in that semester.
When we receive information from different companies, we understand it in the same way,
regardless of whether this was voluntary and, therefore, controlled by the company, or invo-
luntary or uncontrolled.
That is to say, all the information we receive through several channels makes us create an
image of the company.
Therefore, if the company wants us to have the image it is trying to create, communication
must be:
+ Constant: the company cannot communicate with its public only when it’s convenient;
it has to keep a constant communication.
* Consistent: all communication actions undertaken by the company have to be faithful to
their identity. That is to say, what the company is, what the company does and what the
company says it does must be in the same line.
If there are inconsistencies, unconsciously or even consciously, the consumer will trigger a
warning signal that will cause distrust of all information and actions of the company, and even
more when they are voluntary or controlled.
6.2. Corporate image
To put it simply, we may say that corporate image is what the public think of our
organization. It’s not just what an individual or group thinks, but what emerges from the
collective.
© A. Building corporate image
The public builds corporate image from the information it receives from:
+ The company itself: this type of information may have been issued both voluntarily and
involuntarily.
+ The competitors: the messages of competitors about themselves influence the image of
other companies for comparison.
* The environment: this includes any information related to the company or sector that
reaches the public through media, friends, acquaintances...
© B. Measuring corporate image
After creating the corporate image of the company, it is necessary to measure its impact
on the market. This measurement is possible through market research techniques, such as
opinion polls.
© Watch out!
We may use the term public as
a collective noun when we mean
the set of individuals forming
the society in which the orga-
nization is immersed. The term
general public is also used for this
meaning.
We also use the term public when
we refer to all groups of individuals
that form a whole with common
features.
For example, for the Regional
Government of Madrid, the public
is formed by all the inhabitants
of the Region of Madrid. But the
public of an organization is iden-
tified with a group: workers of the
organization, users of the services
it provides, suppliers of the orga-
nization, etc.
1
Business organizations
The two elements that can be studied to carry out the measurement of corporate image are:
The reputation of the company, that is to say, the valuation that the public has about the
company.
Positioning, that is to say, the place that the company has in consumer’s mind compared
to its competitors.
To sum up, we can say that corporate identity is formed by traits that belong to the organi-
zation, while corporate image is formed by the mental perception or idea that the public has
about the organization (Fig. 1.5).
In any case, the goal of any organization is to make sure that its identity and its image are the
same, as this is the way to ensure that the public has the mental picture of the organization
that is best for it.
5 Case study 5. Building corporate image
The sneaker company Zapatines, S.L. designs and produces shoes for young people aged
between 12 and 18. Its corporate identity is formed by the following objective features:
young company, founded in 2008, working team of an average age of 32. And the following
subjective features: it supports young people, it’s different, rebel, urban, and fighter.
Solution:
To create a corporate image in the public so that it identifies that image with the
abovementioned values of youth, rebellion, and so on, Zapatines, S.L. decides to adopt
the following measures:
Remove formal barriers within the company, creating an informal and equal
working environment.
Use the media that young people use in order to advertise the company. For exam-
ple, social networks.
Use a young language in all its communications.
Hiring well-known graffiti artists €
to do some designs of their shoes.
4
Sponsor skate and graffiti cham- fF
pionships and music contests. ; Za pat j ness.
1 Deke
z
Support new clothing designers
by creating scholarships.
J
Activities
7. The company Reposterias Lépez, S.L. owns several brands in the food sector. After
more than 40 years on the market, it has decided to replace its traditional logo, con-
sisting of the initials RL in plain blue uppercase letters, for a new one in which the
initials are not plain, but formed by the symbols of the different brands of the com-
pany. In doing so, Reposterias L6pez seeks to convey vitality, while maintaining the
strength and solidity that the previous logo transmitted. By including the symbols
of all the brands of the company, the public can also fully perceive what is behind
Reposterias L6pez, what it does and how it does it. In orther to complement the logo
change, the company has hired an advertising campaign.
Which corporate identity properties are evident with this information? Which ele-
ments of objective and subjective identity is the company intending to communi-
cate? How does Reposterias Lépez want its identity communication to be? What is
the requirement for a corporate image to match a corporate identity?
Business organizations ]
6.3. The trademark
The term trademark refers to any sign used to distinguish our products, services and
industrial or commercial establishments in the market.
The main feature of a trademark is that it has to be unique, that is to say, there can be no other
identical or similar trademark in the market.
The trademark must be unique for two reasons:
+ Because this uniqueness helps consumers to differentiate products, companies or services
from each other.
+ Because it helps the company to be in the market, as it supports visually its distinctive
qualities, that is to say, its identity.
There are three basic types of trademarks:
+ Nominative: these are formed by a name or letters. They can use a unique font or not.
In the example of the right margin, that would be BBVA logo (Fig. 1.5).
Figurative: they are symbols, signs or images, such as Movistar logo (Fig. 1.6).
* Mixed: formed by letters and symbols combined, such as El Corte Inglés logo (Fig. 1.7).
These three types are the most commones, but there are other things that may also be a
part of the brand, such as a melody (as the one in Nocilla advertisement) or a colour that
has been exclusively used for this trademark (as the red colour in the case of Coca-cola). Today,
even exclusive flavours are created so that they can be associated with trademarks.
In any case, the fundamental types of trademarks are always formed by three elements:
* The symbol: the figure or icon that represents our organization. For example, the flag of
El Corte Ingles.
* The logo: the name of our organization written in a certain way or in a particular font.
For example: the letters of El Corte Inglés.
* The corporate colours: colours that identify us as an organization. For example,
colours green, white and black are the defining feature of El Corte Inglés.
6.4. Corporate Visual Identity (CVI)
The term corporate visual identity refers to the development and application of the
trademark in all areas of the company.
Today, as a result of the increasing number of existing trademarks, companies have realized
that their identity can’t only be based on design, and must go further and make a real dif-
ference.
Thus, just as we have noted the importance of consistency in corporate identity, in the case
of visual identity this need becomes even more evident because, as a general rule, the first
contact that an individual has with the organization is through the trademark.
Therefore, if we want our trademark to be recognized in the future, or if we want that the
actor of an advertisement is clearly identified, we must not change the graphics application
of the trademark.
For example, if we go down the street, the first thing we usually see before entering a store is
its sign. Moreover, if the store contacts us by postal mail to confirm an order that we have just
made, we need to identify the trademark, and this is the reason why it must be recognizable
both in the sign and printed on paper.
BBVA
Fig. 1.5. BBVA logo. Example nominative
trademark: formed by letters.
Fig. 1.6. Movistar logo. Example of figura-
tive trademark: a specially designed M as a
trademark.
Tent
uy ey
Fig. 1.7. Logo of El Corte Inglés. Example
of mixed trademark: it combines a parti-
cular font with the symbol of the flag.
Ho Spanish assistant —————
La palabra espafiola "marca" puede
decirse de dos formas en inglés:
trademark y brand, como habras
visto en este pagina. Aunque la
mayoria de las veces se aceptan
como sindénimos, no esta de mas
que sepas que no lo son: mien-
tras que trademark es un término
general que hace referencia a la
marca registrada en si misma, el
término brand se suele emplear
para referirse a elementos {visua-
les, sonoros o de otro tipo) que
sirven para diferenciarse de la
competencia. Por eso se dice que
algo esta branded cuando muestra
alguno de estos elementos, por
ejemplo, un boligrafo con el logo
del BBVA.
yy
7 Business organizations
Web
http://www.um.es/cpu/imagen/
In the section "Servicio de Comuni-
cacién y Proyeccién Universitario"
of the University of Murcia, you
can access its Corporate Visual
Identity Manual.
Ty ary
Fig. 1.8. Logo of El Corte Inglés in black
and white.
i Do you know that...?
Pantone is a U.S. company that
invented a system, the Pantone
Matching System, which identi-
fies colours by a certain code.
Thus, the colours that appear in
logos and symbols will remain the
same regardless of where they are
printed.
Summing up to achieve an appropriate visual identity, it is necessary to develop a set of rules
to guide the implementation of the brand in various media; in other words, when the brand is
used in commercial letters, envelopes, websites, corporate gifts, etc., it must keep the identity
and perfectly suit these media.
These rules of application are usually explained in the corporate identity manual.
The aim of the corporate identity manual is that everyone in the organization in charge of
working with some element of visual identity knows how to apply the trademark. This is the
way to achieve unification and standardization of communication elements.
As for the elements that form corporate visual identity, they are the following:
Activities
Logo: it is the written part of the identifier of the trademark. For example, the letters
forming the words El Corte Ingles.
Symbol: it’s a graphical representation of the trademark. For example, the symbol of sports
trademark Nike.
Corporate colours: the choice of the colours that form the symbol, the logo or both. Co-
lours have an standard reference for each one so that they can be faithfully reproduced. For
example, a Pantone reference.
Fonts: the font used in the logo, as well as the one to be used in all company communica-
tions, has to be identified. For example, CEPSA has chosen the font family Gill Sans as its
corporate font.
Figure-background relationship: that is, how to apply the logo depending on the back-
ground colour. For example, the brand CEPSA determines that if its logo can not be used
with red background and white lettering, the background has to be black.
Monochrome version: how to apply the logo or symbol using only one colour. The logo in
Fig. 1.8 is a good example.
Applications: all possible applications of the logo and/or symbol in different materials and
media. For example, cards, letterheads, envelopes, banners, uniforms, company cars,
and so on.
8. Using the Internet, search websites of companies, educational institutions, govern-
ment agencies, NGOs, etc., and find a complete manual of corporate visual identity
of the organization:
a) Indicate which of the elements that we have seen in this unit are included in that
manual and which are not.
b) Once you have identified them, indicate which of the absent elements in the
manual should appear.
9. Find three brands on the Internet that match the concept of nominative, figurative
and mixed trademark.
10. Do you think that the choice of corporate colour influences the success of a
brand? What colours would you choose to represent a brand of wines from the south
of Spain? Why?
11. The font may be used to give a formal or informal character to the brand. Use a word
processor to search for two fonts, one formal and one informal, to convey the brand
image of the company Centro de formaciédn Calculus, S.L.
Business organizations
Classification
of companies
according
to their
organizational
structure
Functions
of the
organization
Organizational chart
Decision-making
Corporate
identity (DNA
of the
company)
Trademark
Formal or informal
Centralized or decentralized
Simple (linear or functional) or complex
Hierarchical or flat
Planning Production
Sales
Organization Commercial
Departments Purchasing
Management Financial
Control Human resources
Schematic diagram showing the formal structure of the company and its
departments, functional areas and their relationship of interdependence.
Purpose
Range
Sorting criteria
Content
Graphical Layout
Situation analysis
Planning and assessment of alternatives
Process with four stages
Decision and execution
Monitoring and evaluation
Techniques of decision-making in group: brainstorming, Phillips 6/6,
Six thinking hats, nominal group.
Objective identity: formed by real elements: legal form, structure,
history, goods produced... Corporate identity
Subjective identity, formed by the attributes associated with it, x
but those doesn’t have to be tangible: friendly, modern, classic, green... Corporate image
(public perception)
Corporate visual identity: development and application of the mark
in all areas of the company.
Sign used to distinguish our products, services, industrial
or commercial establishments in the market and so on.
7 Business organizations
Test review
. The business organization is NOT:
a) Assigning tasks to employees.
b) Paying applicable taxes.
c) Distributing responsibilities among members of the
company.
d) Line managers making decisions.
. Which of the following types of company divides its share
capital and limits the liability of the partners?
a) Sociedad limitada.
b) Sociedad colectiva.
c) Sociedad andénima.
d) Sociedad cooperativa.
. The function responsible for raising the targets or goals to
be achieved by the company is:
a) Organization function.
b) Control function.
c) Planning function.
d) Management function.
. Which of the following are managing functions of the
employer?
a) Identification of objectives, planning and control.
b) Identification of objectives, organization, planning and
control.
c) Identification of objectives, resource allocation, man-
agement and control.
d) None of the above.
. Regarding the decision-making process, which of these
statements is correct?
a) When we face a common problem, the full process has
to be performed.
b) The situation analysis involves identifying the different
options that we can choose.
c) The more options we have, the lower the chances of
finding the best.
d) It is necessary to assess whether the results correspond
to those planned or not.
. In the technique "six thinking hats" each colour reflects a
different thinking style. Indicate the wrong option:
a) The black hat represents the most pessimistic thinking:
it works with drawbacks and mistakes.
b) The yellow hat symbolizes optimism: it works with
advantages.
c) The blue hat represents the facts objectively: it works
with facts.
d) The green hat is associated with creativity, innovative
and different ideas.
7. The properties of corporate identity are:
10.
11.
12
a) Uniqueness, objectivity, consistency and evolution.
b) Stability, objectivity, evolution and uniqueness.
c) Stability, consistency, evolution, uniqueness.
d) Consistency, kindness, uniqueness and evolution.
. The construction of the corporate image results in:
a) The creation of the company’s trademark.
b) The communication of voluntary and involuntary infor-
mation.
c) Two measurable elements: positioning and reputation.
d) The subjective elements of the company’s corporate
identity.
. The elements of a trademark are:
a) Figurative, nominative and mixed elements.
b) Fonts, the figure-background relationship and applica-
tions.
c) Design, colour and creativity.
d) The symbol, logo and corporate colours.
A decision that is made on matters arising repetitively and
with an established procedure is known as:
a) Scheduled decision.
b) Intended decision.
c) Routine decision.
d) Non-schedulable decision.
A decision that is made by a superior and that refers to the
organizational structure of the company is:
a) Strategic or Level |.
b) Tactical or Level Il.
c) Operational or Level Ill.
d) None of the above.
. The organization whose decisions are taken by the leaders
but with professional advice is:
a) A matrix organization.
b) A hierarchical functional organization.
c) Aclover organization.
d) None of the above.
Business organizations ]
Check your learning
Distinguish types of existing business institutions
1. Media usually refer to a special kind of company known
as pyme. Find out what a pyme is and define the different
types of existing pymes.
Tip: the website www.creatuempresa.org/apoyoinfo.htm
may be helpful to solve this activity.
2. Search the Internet and find out what the laws governing
corporations and limited liability companies are and indi-
cate the minimum capital required to constitute them.
3. There are other types of companies that participate in the
social economy principles. Enter the website of Confedera-
cién Empresarial Espafola de la Economia Social (CEPES),
www.cepes.es, and indicate which they are. Also indicate
all the basic features of social economy companies.
Relate the common functions of the organization: manage-
ment, planning, organization, execution and control
4. List the factors that influence strategic planning and that
every employer should consider.
5. Which is the difference between the functions of mana-
gement and organization? Give an example of a task that
belongs to each of these types of functions.
6. The company TEXTILNOR, S.L. raised the following issues
in amanagement meeting:
a) The operations department proposes a change in staff
shifts to produce at lower costs.
b) It is proposed to choose between two possible product
lines to launch next year: decorative items or toiletries.
c) The heads of different departments explain the degree
of achievement of the objectives and the deviations that
have occurred on the plans while establishing measures
to correct these deviations.
d) The manager emphasizes the need to motivate staff and
to explain clearly its functions.
Which function of the organization relates to each case
above?
Be aware of the importance of an adequate organizational
structure to perform the provision of quality services
7. Make the chart of a company including (from the highest
to the lowest priority) the following organizational levels:
+ President of the company.
+ General manager.
+ Departments of:
8. Following the classification of the charts, match the
— Production.
— Staff.
— Logistics.
— Administration. This one has a technical staff of
investments.
+ Employees (hierarchically dependent and independent
from the different departments).
following types with the group they belong to:
General chart
Depending on the purpose
Organizational chart
Circular chart Depending on the range
Analytical chart
Horizontal chart Depending on the content
Partial Chart
Depending on the layout
Staff chart
9. Describe the features that concur in the following organi-
10. Think about the reasons you had to study this Vocational
11. Make a classification of the types of existing decisions
zational chart:
Employees
Middle
positions
Department
heads
Manager
Training Course. In relation with your thoughts, design your
own decision-making process for this specific case.
according to the level criterion.
q
7 Business organizations
Check your learning
12. Match each type of decision with its meaning:
1. Decisions made during the develop-
ment of regular work.
a) Scheduled
b) Operational
c) Individual
d) Strategic
2.They are adopted by the supe-
rior level of the organization. They
settle long-term goals.
3. Decision made by a single person
with final responsibility.
4. Decisions to be taken periodically.
13. Describe a scheduled decision you usually make every
day. Why do you think that it is scheduled? Was it a non-
schedulable decision in the past?
. List the advantages and disadvantages of decision-making
in groups.
. Indicate if the following statements are true or false:
a) Decision-making in the company is an irrational process
by which one or more individuals are choosing between
two or more alternatives.
b) According to the level of the decision maker, there are
scheduled and non-schedulable decisions.
c) Strategic decisions are those related to the objectives of
the company on a long-term basis.
d) Encouraging creativity is an advantage of decision-
making in groups.
e) The technique Phillips 6/6 combines individual work
with team work.
f) The technique "six thinking hats" allows analyzing a
decision from six different points of view.
Recognize different types of existing trademarks
16. List three examples of famous companies of each of these
types of trademarks: nominative, figurative and mixed.
Differentiating between corporate identity and image
17. Indicate whether the following statements correspond to
elements of subjective corporate identity, objective corpo-
rate identity or corporate image of the company:
a) The company Tadami decided to adopt the legal form
of corporation to facilitate the entry of new members.
b) It was founded forty years ago.
c) It manufactures wooden furniture of high quality.
d)|t has always advocated the use of wood from sus-
tainable exploitation and its products are covered by a
pan-European forest certification.
18.
19.
20.
e) Its customers value their involvement with the preser-
vation of the environment.
f) Tadami, S.A. commits to cutting-edge designs that offer
innovative solutions.
g) ts designs have obtained several awards for innovation
from magazine conducting consumer surveys.
h) It produces furniture collections for living-rooms, bed-
rooms, offices and dining areas, and therefore customers
find solutions for the entire house in its catalogue. They
value this issue because they can keep the same style
throughout the house.
Read the following statements and indicate whether they
are true or false:
a) Corporate identity may change constantly to adapt to
what the public demands.
b) Companies should always communicate with their
public, and not just when it’s convenient for them.
c) The identity of a company can be copied, as well as the
services it provides.
d) Corporate identity is known by the line managers of a
company, and the rest of the company members don’t
need to know about it.
e) The information received by the public of a company
through friends or relatives do not affect its corporate
image.
f) Consistency is one of the issues that the corporate iden-
tity needs to have so that the public may create the
image that the company is interested in.
We have created the corporate visual identity of the ba-
kery Tupan. Which potential applications should we consi-
der in the manual of corporate visual identity?
Indicate if the following statements are cases of voluntary
or involuntary communication of corporate identity:
a) The president of the NGO Salvacién Sur offers a lecture
on the history, goals and values of the organization.
b) The marketing manager of Zapatines, S.L. calls for an
internal meeting to inform partners about the new
advertising campaign.
c) The accountant of the bakery Tupan tells the accountant
of the fruit store Freshverd that sales are going down.
d) The purchasing manager of Zapatines, S.L. meets two
friends and tells them that the new advertising cam-
paign that her company is about to launch seems "for
dummies" to her.
Unit
The communication process
In this unit you'll learn how to:
Identify the elements and stages of a
communication process.
Assess the importance of maintaining
a positive attitude towards a
communication process.
Analyse the various barriers that may
arise in communication.
Differentiate between communicating
and transmitting information.
Choose a suitable alternative to solve
communication problems.
of the communication
er, receiver, message,
, context and feedback.
e between communication
ation.
arriers to communication.
ions to barriers
cation. r
,
2 The communication process
6...
In this web page you can obtain
more information about the com-
munication process:
www.portalcomunicacion.com
@ 1. Elements involved in
the communication process
In the first unit we defined a company as a business organization where people work. We also
explained that those who work in it must communicate with each other (internal communi-
cation) and that the company also communicates with the outside (external communication).
But what are the roles that communication plays in organizations? They are the following:
* Motivating employees and creating a proper cooperative environment.
* Reporting or providing data needed for decision-making and spreading the goals and ob-
jectives of the organization.
* Controlling the performance of plans and the behaviour of its members.
* Expressing emotions about work achievements or failures and relate the organization with
its environment.
In this unit we will focus on communication in general and we will introduce a series of basic
concepts to expand and apply them to business communication in the next unit.
From a practical point of view, the issues related to oral and written communication are
considered separately. Oral communication, on the other hand, is not only the set of words
that is transmitted: there are also elements, such as gestures, that we use when we speak
face to face, as well as the voice tone that goes with these words and that is a part of the
meaning that you want to give to the message. These elements form the so-called non-verbal
communication, as we will see in detail in the following sections.
Activities
cases:
success:
1. Indicate the communication role in each of the following c) A study on prospective customers of a new cola:
a) The placement of a poster with the picture of the
employee that has excelled in the past month:
b) The expressions of joy of the athletes when they get a
Cola demand
y = -139.53x3 + 1258.5x? - 3900.7x + 4168.2
1200
1000
800
600
400
200
0
1.25 1.75 2.25 2.75 3.25
d) An internal circular letter asking the employees to
observe the dress code of the company:
The communication process 2
(5 Case study 1. Communicating the new company’s product
The company Piedras Soneira, S.L. is organized according to this organizational chart:
Operator 1
; Vicente Bajo
Operations manager
Alejandra Diaz
Operator 2
Juan Sala
Marketing manager Sales agent
Pedro Pérez Luisa Vargas
Financial manager Administrative assistant
Alba Soneira Sara Castelo
Scheme 2.1. Organizational chart of the company Piedras Soneira, S.L.
The manager, Arturo Soneira, wants to launch a new range of marble countertops for
catering establishments. For this purpose, he brings the heads of the three departments
together at his office and tells them his idea. The three of them express their agreement
and undertake to carry out a joint plan for that launch.
What elements can be identified in this communication process?
Solution:
In the communication process occurring in Arturo’s office we can identify several ele-
ments:
The sender: the person issuing the message, which is Arturo Soneira.
The receivers: the recipients of the message. In this case the heads of the three
departments.
The message that is transmitted: "We are launching a new line of marble countertops
for the catering sector."
The channel or medium through which it is transmitted: it is transmi-tted orally
by Arturo Soneira.
The code or set of signs and symbols that transmit the message: in this case,
English language.
The context: location, time, culture of the participants and, in general, the circum-
stances in which the message is transmitted. In this case, they meet at the office
of the general manager after being called by Arturo Soneira.
g Activities
2. The company AQUAOCIO, municipal swimming pool
supplier in the towns of the Autonomous Community of
Castilla y Len, sends messages to the cell phones of the
customers that have been with the company for more than
one year to announce the gift of some invitations to a ther-
mal treatment. Indicate the elements of this communica-
tion process.
Web
If you want to expand your know-
ledge on communication within
the company, visit the following
link:
+ http://www.ciberconta.uni-
zar.es/leccion/comui/100.htm
(©Esther Puyal)
3. Enter the website of the campaigns of Direcciédn General
de Trafico (DGT), www.dgt.es/was6/portal/contenidos/
visor_multimedia, and answer these questions:
a) Who is the sender?
b) Who are the recipients?
c) What channel or channels are used?
2 The communication process
© Watch out! —————————_
Do not mistake the meaning of
the message for its content. The
meaning is given not only by
words, sounds, pictures or gestu-
res that are transmitted, but also
by the context in which we live.
Take the sentence "Let’s go to the
bank". It could be said by a busi-
nessman to a customer with the
idea of going together to a finan-
cial institution to deposit some
money; but it could also be used
by someone who invites a friend
to have a walk along the riverside
of their town.
Web
In the following website you can
learn the rules for the proper use
of the microphone:
www.asesorutil.com/uso-del-
microfono-conferenciantes
The most common scheme for the communication process (Scheme 2.2) was established in
the last century by Roman Jakobson, renowned Russian linguist, and is usually represented as
follows:
Receiver
Sender
Decoding
Message
qT
Channel
Feedback
Scheme 2.2. The communication process.
For a communication process to develop, an exchange of information is required. If there is
no exchange, there is no communication, as this is only information transmission.
VA Activities
4. Ediciones Aprende, S.A. is a company dedicated to publishing textbooks. It has a
website aimed only at posting information about its products. What other functions
could be incorporated to the website so that the communication with its customers
and suppliers could happen? Form groups of students to solve this activity.
5. The communication model that we have represented is not the only theory that has
been developed on the subject. Harold Dwight Lasswell, for example, proposed a
theory that has been widely used in mass media performance. Using the resources
provided by Internet, find out what this theory is about.
© 1.1. The sender
The sender is the one who transmits the message.
In a company, the sender may be, for example, a manager giving instructions to his or her
employees.
The sender seeks or intends a certain reaction in the recipient as a result of the information
transmitted. Therefore, the sender's primary mission is to encode the message. Encoding a
message means:
* Choosing a transmission system or channel to ensure the connection and a suitable code
or system of signs to allow the communication process. For example, no fluent commu-
nication will be achieved using the Spanish language with a person who usually does not
use it.
+ A proper use of the transmission system. For example, when we speak on a microphone.
The proper use of the microphone to address an audience is very useful to avoid annoying
sound distortions that might prevent the message from being clearly perceived. To avoid
this, you should check some issues such as the distance to the microphone, the volume of
your voice or the direction in which to speak.
The communication process
In a conversation, the sender and the receiver alternate their roles as information is
exchanged (for example, the boss speaks first, then the employee, then the boss again, then
the employee, and so on; however, when the boss brings the company’s employees together
to inform them about new internal rules, this only implies a transmission of information).
In turn, the communication process always entails an exchange of messages, along which
the sender and the receiver exchange their roles successively (in the example above, the boss
explains something to the employee, the employee answers if he or she thinks that these
ideas are viable, etc).
This means that, sometimes, we cannot know who the original source is and who the recipient
was initially, and we must consider them as a source or sender and receiver simultaneously
(Fig. 2.1).
For the message to be transmitted with guarantees by the sender, it is important that he
meets a series of recommendations:
+ Developing the ability to communicate and improvising.
+ Transmiting ability, confidence and credibility.
+ Knowing and showing interest in people and culture of the organization and in communi-
cation techniques.
Moreover, there is no doubt that the style used by the sender in communication influences
the effectiveness of communication. Thus, a sender may be aggressive, inhibited or assertive.
In the first case, intimidation may lead to a poor response from receivers, who do not feel free
to give their opinion or possible answer because of fear. In the second case, we have senders
whose shyness gives a sense of lack of control, and therefore they transmit insecurity and
lack of confidence. The third case is the most effective communication style, as assertiveness
refers to express what you want in a direct and honest way, apart from showing respect to
the speaker or receiver.
VA Activities
6. Companies often turn to public personalities to strengthen their credibility in the
message they send to consumers. Find three examples of advertisements in which
celebrities appear and say if you think that the credibility of the product improves
with their appearance.
© 1.2. The receiver
The receiver is the recipient of the message and the one who interprets it to understand
its meaning. It may be a single person or several.
When a receiver performs this interpretation of the signs that come as a message, we say that
he or she decodes it. Thus, in a written message, the receiver reads and interprets it through
his or her knowledge of the language in which it is written.
To produce a real communication process, it is necessary for the recipient to react in some
way when the message is received, that is to say, to transmit information to the sender about
the reception of the message to verify the existence of good communication. This is called
feedback and it is another element of the communication process that we will be discussing
in detail in section 1.7.
When you receive a message, especially in some types of communication such as face-to-face
conversations, the receiver must maintain an active attitude; this is why we usually talk about
the importance of active listening.
Content Content
a tree tree al
b~
Sender Receiver
Fig. 2.1. Relationship between senderand
receiver. The sender thinks about the
content that he or she wants to transmit
and encodes it using the spoken language.
The receiver listens and decodes the
information, interpreting the content.
For content to be easily understood, the
sender can show images supporting
the words to the receiver.
Spanish assistant
Como ya habras visto, el “emisor”
y el “receptor” son el sender y el
receiver en inglés, respectivamen-
te. Pero hay mas palabras para
referirse a ellos; asi, “emisor” tam-
bién puede ser issuer o source,
y “receptor” también puede ser
recipient. Lo mismo ocurre con el
verbo “transmitir”, que puede ser
to transmit 0 to convey.
2 The communication process
[2 Do you know that...?
The expression lingua franca refers
to the language in which people
who speak a different language
and who perform a common acti-
vity can understand each other.
The expression comes from the
language of the Franks, a people
who founded the empire of the
same name in the Middle Ages.
This language was commonly used
for business transactions among
the peoples of the Mediterranean.
Nowadays, it is said that English is
the lingua franca for business.
Regarding the receiver, the recommendations to enrich the process of oral communication in
a positive way can be summarized as follows:
* Watching the interlocutor during the conversation, because we can infer his or her attitu-
des and feelings on the matter we are dealing with from gestures and behaviour.
* Communicating with our own gestures that we are listening to the conversation or that
we agree with some point of the dialogue, for example, nodding.
* Using a voice tone that suits the circumstances in our turn of the conversation. It is
also important to show, from time to time, that the message is being understood with
expressions like "right", "sure" or other similar ones. In any case, do not interrupt the person
who is speaking.
* Waiting our interlocutor to expose all his or her arguments before making judgments.
Once finished, we can offer solutions or assistance if necessary. In any case, we must be ca-
reful when we express our opinion and, if possible, we must think before speaking to avoid
hurting the feelings of the other person.
© 1.3. The message
The message is the information that the sender transmits to the receiver. It is the idea
that we try to transmit and it is the main element in the communication process.
The characteristics (Scheme 2.3) of a good message are:
— Clarity — Unequivocal and easy to decode.
The information transmitted in the
Accuracy = —— message must be accurate and complete.
—— Objectivity —— True, authentic, as unbiased as possible.
It must be transmitted at the right time, that
| Opportunity — is, the moment in which the message has the
proper effect for the purpose
to be achieved.
wu Interest — Information must be relevant to interlocutors.
Scheme 2.3. Basic features that a properly-made message should have.
Activities
7. In the article by Enrique Sueiro, "Comunicacién intima
y preventiva en la empresa", released in the newspaper
El Pais on July 23, 2010, we can read the following:
"[..] some organizations sacrifice the truth to preserve
the good. Thus, they conceal or disguise information
to their employees in order not to discourage them with
facts and data that do not suit the official message, they
show managing incompetence, and act with managing
immaturity and lack of sensibility. This communication
disease implies using the facts (which are denied by
words) to practice the saying ‘the end justifies the means’.
In the best case, silence or denial only work for a short
time. [...]
[...| In the discussion after a session in Barcelona, | was
asked about the best way to communicate an imminent
collective dismissal in a company. The first thing is that we
shouldn't let urgency affect our time schedule because, in
communication, the clock is as important as the compass.
Also sensitivity is. Moreover, unlike the advice of Direccién
General de Trafico, the important thing here is not to get
to our destination, but to do it on time. The severity of
being late always ends up with scars and, sometimes, it is
progressively or fulminantly lethal. It’s all about practicing
what we call preventive communication [...]"
What message features fail in the communication of the
companies that Sueiro describes in his article? Why?
The communication process 2
In the communication process, when it comes to transmit a message, we can distinguish
three types:
* Intended or planned message: the one that the sender intends to transmit.
* Sent message: the message that has actually been transmitted and that is in the commu-
nication channel.
* Received message: the message that has been decoded and understood by the receiver.
In effective communication, these three messages should be identical, but in practice they
rarely are. The problems in encoding and decoding the message, which we will see later, cause
differences between the intended or planned message and the one that is actually received.
© 1.4. The channel
The communication channel is the means through which information circulates. It is a
form of connection between the sender of the message and its receiver.
This is a necessary element in any communication and influences the content and code of a
message. Many of the distortions (called noise) that can occur in the communication process
are due to an inappropriate choice of channels. Therefore, we must choose a channel that
provides us with results and suits our possibilities.
The communication channels or means can be classified according to different criteria. One
classification distinguishes between personal and impersonal channels:
¢ Personal channels are those in which the sender and receiver have direct contact, such as
the telephone. They allow an immediate response or feedback.
* Non-personal channels are divided into two categories: mass media and selective me-
dia. The former are intended for general public, such as newspapers, while the latter are
addressed to specific groups. An example of selective media is a specialized magazine for
computer fans.
A second classification focuses on whether the formal structure of the organization is used
or not, according to which they may be formal or informal:
* Formal channels: those occurring within the formal networks of the organization, that
is to say, the hierarchical relationships established in the organizational chart. Some
examples are:
* Bulletins or newsletters.
Oo Examples
Intended, sent and received mes-
sage
It is told that king Carlos V recei-
ved a sentence that he had to sign.
The text said "Perdén imposible,
que cumpla su condena. Carlos V
was feeling magnanimous that
day, and a little funny too, and be-
fore signing the sentence he era-
sed the comma and put another
before the word "imposible". The
text after his signature had litt-
le to do with what was initially
planned...
roan ncn en 200
Za salarias
* Posters.
Calls.
Internal information publications.
Ipresas _
re
Fig. 2.3. Newspapers are a mass medium.
‘eon
ieerempule
* E-mails.
* Informal channels: those occurring among a group of people outside hierarchical relation-
ships. It is a social network. This is the scope where rumours are usually born.
But a channel can be also understood as the line of people through which messages are
distributed in the organization. Then, depending on the direction in which information travels,
communication may be top-down, bottom-up or lateral.
That is to say, when we consider the communication channel from this point of view, we must
remember the hierarchical relationships appearing in organizational charts. For example, in
top-down communication, an individual with a leadership role in the organizational chart of
the company communicates with his or her subordinates to give them instructions on how to
perform a task.
Do you know that...?
Rumours can be divided into seve-
ral types:
* The aggressive rumour: it goes
against a person or group.
* The menacing rumour: it causes
fear or anxiety.
* The rumour that expresses desi-
res or wishes.
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Communication & Customer Service.pdf

  • 1. te gccneeees, O88 3. “tee e@ oorts e Advanced Vocational Training (elt gt: Professional certificates SS Communication & Customer Service Héctor M. Pérez Feijoo Jorge M. Pérez Hernandez Lia Lépez Gonzalez Carmen Caballero Bravo www.mhe.es
  • 2. ion & Customer Service Héctor Marcos Pérez Feijoo Jorge Manuel Pérez Hernandez Lia Lépez Gonzalez Carmen Caballero Bravo Technical advisor Maria Vicenta Sanchis Martin IRES - CARAGAS - GUATEMALA - MEXICO 0 - SAO PAULO MONTREAL - NUEVA DELHI - PARIS Education OUIS - TOKIO - TORONTO
  • 3. Communication & Customer Service. Advanced Vocational Training This book shall not be partially or fully reproduced, neither digitalised nor transmitted through any means, whether electronic, mechanic, photocopies, recordings or other ways, without prior written consent by the holders of the Copyright. Please contact CEDRO (Centro Espajfio] de Derechos Reprograficos, www.cedro.org) if you need to photocopy or scan parts of this book. All rights reserved © 2013, regarding the first edition, by: McGraw-Hill/Interamericana de Espafia, $.L. Edificio Valrealty, 1.a planta Basauri, 17 28023 Aravaca (Madrid) ISBN: 978-84-481-8546-6 Original book: Communication & customer service © 2012, regarding the first edition in spanish, by McGraw-Hill Interamericana de Espafia, S.L. ISBN original edition: 978-84-481-8086-7 Publishing team: Pablo Regueiro, Marta Reyero Saez, Caja Alta Edicién & Comunicacién S.L, Antonio Aguilella Asensi and Audrey Bourke. Translation: Antonio Aguilella Asensi. Pictures: 123rf and McGraw-Hill’s image stock. Illustrations: Age Fotostock, Valentin Ramon. Layout: Caja Alta Ediciédn & Comunicacién. Cover design: rload.es Book design: dfrente.es
  • 4. Introduction The book you are holding in your hands, Communication & Cu. is a clear and updated text that highlights the practical issues of communication in order to provide you with the skills required for of the Advanced Vocational Training Course in Administration and Fin Managing Assistance you are studying. When dealing with such a broad and diverse subject, the aim of being extreme exhaustive might lead to inefficiency and confusion. Therefore, this text tries to escape from dogma and impositions. Our goal is to develop every aspect of the curriculum, but also to provide open alternative solutions to the problems in business communication. Specifically, this trend is expressed in the type of activi- ties that are included throughout the book. Along with the most common activities for the settlement and testing of the knowledge gained by students, we include others that are more open and participatory, consistent with the characteristics of this subject and supported by text and web references. In addition, we want to make the development of these activities easier for students and teachers, and for this purpose we provide some patterns that, within a flexible framework, will guide the process of solving problems. Accessibility is another major advantage of this book. Along with a clear and direct language, we have included multiple resources such as diagrams, graphs, tables and images that allow a simple and flexible interpretation of the content. We have also carried out a careful selection of documentary sources and references to web pages. In short, this text is designed as a practical introduction to a very large area by means of direct and simple language and supporting examples, problems and real documents that students will encounter in their future working life. These supporting materials will complement teaching performance by suggesting potential ways to expand the knowledge of students about this exciting subject: business communication. The authors
  • 5. Dy Contents Business organizations 1 2 1. The COMPANY AS AN OFFAMIZALION ou... eeseescsesssseeessssesssseecssssssssseessssesssssesssssssssesssueessssessssseesssssssssessssssssssessssesssssesssuecssssssssuesssesssssusesssnssssseessssessssseess 8 2. Types of DUSINESS OFGAaNIZALIONS ou... ecsssessssescssseesssstessssessssessssesssssssssseessseesssssessseesssee 10 3. Functions in the organization: planning, management, organization and control 12 4. Departments in the company. Organizational Charts ess escssseessssesssseesssseees we TS B. Decision-Making... cccsecsssecssssecsssssssseessssessssessssseessssessssesssssssssesssssssssseesssssssssssssuecssssssssssessssessssseessnessssseessuuesssssssssusesssnssssssesssussssssesssuesssessssseesssnessssee 17 6. Corporate identity and Corporate IMAE «nec sessseecsssesssseeessssssssseessssessssseesssuesssssessssesssssssssueessssssssueesssnssssssessssessssseessusssssssessusesssssesssneessseessseee 20 SUIMIM ALY usec eee see cece eeeenenecroeeeesenenenroeeseseneneneoeeseseveeeseseneneneeeeseseneneneoeeseseceneneeesesaeoeeseseneneadeeseseneneneoneneseseneadnenesesaveseseneneeoneneseneaeanane 25 Test review .....ccsssssssessessesssssessessssnsssssssssssssssssssesscsscssessesseesesassnesescssssssassossecsaesceaseassaeenesassssusnssnesnsaseossssseseaesaesnesansaesseansesnessesneanseseecseesaees 26 Check your learning .........ccccssescessesessesnsseensssensssensssenssseneeseneeseneesoeeseeeceesseneceneeceaesneneaseseneeseneeseneeseneeseesseeeeeaeesseeeeesaeennanennasennacennaceanaes 27 The communication process 1. Elements involved in the COMMUNICATION POSS... ees ssseessssesssseeesssessssseessssesssssesssseessssessssesssssssssessssessssseessssessssseessuessssseessseesssesesssseessseess 30 2. Barriers tO COMMUNICATIONS... eeccsssesseseseesssesssseesessessssssssssessssssssssssssssssssssessssssessusssssuessssusessscessseessssssssssssessessssussesstssssssessseessssssssnssssseessssseesseessssesee 39 3. Solutions to COMMUNICATION DALTi€LS ........sessesssseseeessseeee we A] 3 4. Differences between communication and information. 42 SUMIM ALY usec cece ce cree eecenenecneeesesenensennesenenennnneneeenane Test review Check your learning.......cccccesesessessssesesseenssseesssensssenssseneesseeeseneesieseeeeceeseenesceneeneneseeneseseneeseneeseneeseneaseeessneeeensessieesonssenesennacennecennaceanaes 45 Communication within the company 1. Communication within the COMPANY. TYPES ......cesssceccssecsseessssessssessssseessssessssesssssssssseesssssssssesssuecssssesssseessssssssseessssessssssssssssssseessneesssesessseeessseess 48 Z. Internal COMMUNICATION uu. eeesecsecssessnessscssesseessccsesesssnccsssssscsssssessecsscesscesssnscsssssssnscssecsesescessesesassenscssssssssucsseesessscesssssssnsssucaneessesseenessscessessssnscsnessesnsesses 50 3B. External COMMUNICATION uu... cesesseessesssessssseccnccsscssessscssecsesssccnscsssonssnssssesusessecssssssenscsussuscsscsscsucssesuscescesssssscsscsuesssesseessssssenscssssucsnsessceseceseessencsensenscnsesse 55 4, COMMUNICATION ON A CLISIS...... es esseseseecessecsessssnscsessenccsssseesscsssscsnensssucusssscsssusssssssnssussnessssususessesssussnessssusueesscsssucasessesssseasscussusssessssssnessensesususensenseneaes 61 5. COMMUNICATION NECWOKKS uu... cesesseessesseessessescsccsccsnsssecsscssessscesccnscsnssnsssucsssensecseesesascenscssssusssuesscsueesscescesssssscsscsucansesseessssssenecsussucsnsessesuessseeseessessssnscnsease 63 6. Communication as a source of behaviours. 65 SUMIM ALY usec cee steeneeeenenseeeneenenee .. 67 4 Oral communication 5 Test review.......... 68 Check your learning ........ccccseeseesssesessesesseenssseesssensssenssseneeseneeseneeseseseeeeesesseanenenesseesnenesceseneeseneeseneeseeeseesseneeseaeesseeeeaeseaneseanasennesennaceanaes 69 Non-verbal communication J. Non-verbal COMMUNICATION ...eessesssseesssssssssseessssesssssessssuesssseesssecsssssssssseesssssssssessssesssssesssussssseesssuesssssesssuecsssnssssssessssssssssesssuesssssesssuesssesesssseessseess 72 2. Factors related to non-verbal language... essecsssssssseeessssssssseessssesssssesssssessssesssssessssssssseesssssssssesssssssssesssnssssssesssssssssseessusesssssessnersssesessseeessseess 75 3. Functions of non-verbal COMMUNICATION wu... eessescsssesssseesssssessssessssseesssessssseesssssssssesssssssssseessusesssseessusesssssssssuesssnssssssesssnssssssessssssssssesssneesssnessssee 84 SUIMIM ALY usec ccc cee eeenene once eeeeneneoeoeeseeeneneneonenesoeeeseseneneneeeseseneneneoeeeeseneneneonesesdoeeseseneneaeoneeeseneneneoneneseseeadaveeesadneneseneneeoneneseneeanans Test review Check your learning ........ccccseeseesssesessesesseenssseesssensssenssseneeseneeseneeseseseeeeesesseanenenesseesnenesceseneeseneeseneeseeeseesseneeseaeesseeeeaeseaneseanasennesennaceanaes 87 T. Oral OXPreSSiON....cssssssssscsssessssesssseeessssssssseessssssssseessssssssssesssuuessssssssssessssssssssesssuesssssessssssssssesssuecssssssssseessssnsssssessssessssseessusesssssesssuecsssnssssssessssnssssseessneee 90 2. Listening for better communication. 199 SUMIMALPY ues ceeettteceestseneeeecenseneneeee - 107 6 Test review.......... -108 Check your learning.........cscccsccsssssessseesesesssseenesessesceseseenesceneseeneeseseneeseneeseneeseneeseneeseneeeeagseseeneaeeneseeneseeeeseeeeseeeeseeeeseecesenneseneesenneeennaceanaes 109 Telephone communication J. Telephone COMMUNICATION ou... eee ssssseecsssesssseesssesssssessssssssssessssesssssesssuecsssuessssuesssnsssssesssussssssesssuessssseessuuesssssssssusesssnssssssesssssssssseessuessssesssseesssy 112 2. Telephone Media ANd CQUIPMENE us eessssesssseeesssscsssseesssssssssssssseessssesssueessssesssssesssssssssseessusssssuesssssssssseesssussssssssssuecsssessssseesssesssssseesssesssssessnees 113 3. Additional services offered by the telephone CqUuIPMENt ou. es sessssecsssessssseessssesssssessssessssseessssesssseessseesssssesssueessssesssueesssnsssssessssessssseess 116 4. Rules for a good telephone COMMUNICATION ues eeecsssesssseeessssessssesssssesssseesssueessssssssssesssssssssseessuuesssssssssueesssnssssssesssssssssseessuesssseesssussseessseeesse 120 B. Telemarketing... cecsssesecsssesssseecsssessssseessssessssssssssesssnsssssesssssssssssesssssssssesssussssssssssessssssssusesssnsssssesssssssssssessssessssseessueesssesssssueesssnssssseessssesssssessssessssseess 125 SUIMIM ALY usec eee c ce eenenece cree seeeneneoeeeeseneneneoeeeesoeoeeeeseneneneoeeeesenenendoeeeeseneedoveeesesoeeeeseneeaeoeeeeseneneadoeeeeseseneneonenesdneneseseneneoneneseseeanane 129 Test review.......... . 130 Check your learning..
  • 6. Contents Written communication within the company 7 1 2 3. 4 . Written communication . Produce or reproduce documents..... Models of written documents in the company . E-mail and netiquette....... Summary Test review .....scecscsscsssssssessssssssesssssssssssssssssssscssessessessesacssesnssnessessenssnsassaseassocsoesseesessesnesesnssnssssnsaneassossecscssesseeaesaesatsaesnnsaesnesneansansosseesetsaess 160 Check your learning «uu... cccseeseesesessesesssensssenseseesceseseeseseseseeeeeeeseeseseesesneseseeseeneseecasensseesseaeaseeaseanesaneeeaseneesseessneensneasseecsnneesnneeeaees 161 The customer service department 8 1. 2. 3. 4. The customer service department. CUStOME SEFVICE.... ec ecssessssescssseessssesssssecssssssssseesssesssssesssssssssseessusssssseessusesssssssssueesssnsssssesssnssssseesssness 164 Stages in the process of customer service Procedures to solve complaints and claims.. Enforcement of rules on resolution of complaints and claims... SUMIM ALY usec cece eects cess secenenecneeesevenesesenenenneneseneneneoneneneee Test review... ” Check your learning «uu... cccsecesseesesessesesssensssensseeseeeneseeseseeseseeseeeesesseseseesesessesesaeeeeaesessenesceesceasaseonaseasieseseesseneetsneessaeeseeatsneetsnneesaneeeaees After-sales service 9 1. 2. 3. 4. 5. 6. After-sales service Relationship of the after-sales service with other processes within the company. Quality management and the after-sales service... Techniques and tools for quality management Structuring the after-sales service Management tools of an after-sales service SUIMIM ALY ue. eet eee cee eeeene neces seeeneneoerneneoneeeseseneneoneeeseneneneoneeesenenedoeeee se oveeesesenedoeeee sensed oeeeeseneedovedseaeeeeesesenedvenesesenedneneseneaeanane Test review... ” Check your learning... cccsceseeessesesesessssnssseessseesseeseeeseseeseseeseseeseseeseseesesesseeesseeeeaeeesseeseseeesennaseasaseanscenseeessneessisessesssneassneetsnnensneeeaees The information processing 10 1. 2. 3. Information processing 1 204 The file....... File media. a SUMIM ALY ose e eect eens ce cree eeeenece cree eeee sone seneneneoeeee sensed oeeee secede oeeee sensed seneeeoeeee sensed nese senenedoneneseoneeeseneaendoneneseneeadneneseneaeanoneneneea Test review Check your learninng..........ccccsecesseesesesesesseeessseesssensesseseesesesseseeeeeeseseeaeseesesesseeeeseeeeseeeessesseesseasaseassseansceseneeseneesseessneeteeansneetsneeeneeeaees 223
  • 7. iy How to use this book © Introduction to the unit wna The communication process Here you'll find the assessment criteria of the unit. | You will also find a summary of the contents you'll study. P| © Development of the contents 68 Case study. Activities They use what has been learnt in order to solve real They are used to work on the contents as they are problems and situations of your professional environment. explained, and they ensure a progressive learning. Do you think that there some issues that must be dealt with talking instead of in writing? Why? Explain your answer. Clear and concise explanation of the theory, along with margin sections that provide a better understanding of the most relevant topics: 2 Do you know that...? Examples Gg © Web Important A Vocabulary 7 Watch out! rE Spanish assistant ™ Closure of each unit Summary Review - Diagram of the contents of this unit. It allows the detection of learning problems. | i Sea Te cites Check your learning Sd = [=a == Two pages with final activities grouped by assessment criteria. aa
  • 8. Unit Business organizations In this unit you'll learn how to: + Identify the different types of existing business institutions. * Relate the usual functions of the organization: management, planning, organization, execution and control. + Be aware of the importance of an adequate organizational structure to carry out the provision of quality services. + Identify the different stages of the decision-making process. + Recognize the different types of existing trademarks. + Differentiate between corporate identity and corporate image. unctional and nal features of every ganization. rtments in an organization. ional charts. methods for decision-making.
  • 9. 7 Business organizations Vocabulary Profit. Gain or advantage taken of something. @ 1. The company as an organization How many companies surround us? The bus that we take every day belongs to a transport company; the bakery where we buy bread (Fig. 1.1) is a company too; and the bookstore where we buy academic material or text books is a company as well. They all look different but they have many things in common. From this starting point, we can define what a company is as follows: A company is a for-profit entity the primary purpose of which is to obtain benefits through the sale of goods or services on the market. Let’s consider this definition: + Entity. This is a community considered as a unit, that is to say, there is a group of people forming the entity that are not treated individually, but collectively as a whole. + For-profit. This means that it has been created in the interest of making money, unlike other types of organizations such as foundations or NGOs (non-profit organizations), which are aimed at obtaining a social benefit. * Through the sale of goods or services on the market. Companies may engage in the sale of goods (bread, photocopies...) or services (public transport). When a company is created, the employer or the partners provide capital with which the com- pany purchases a range of goods. In addition, many times premises are bought to develop the activity; it may also have mobile phones, company cars, etc. These are the assets of the company. However, the value of the company rarely coincides with the value of its assets, and this is because the company, in its every-day performance, gains customers and tries to retain their loyalty, creates a good image in the market (corporate image}, and also generates expectations for benefits. The value of these intangible assets is very difficult to assess. In addition, they are not included in the list of the company assets that we can check through accountancy. However, when the company is sold, it is not only for the price of its tangible assets, but also for the value of its intangible assets. Those assets that add value to the company exist because there is an organized exploitation of resources. This is the reason why the most relevant is- sue about the company concept is that all this group of goods, rights and people must be or- ganized; therefore, hereinafter we will refer to it as an organization (Scheme 1.1). In turn, organization is a broad concept that may have different meanings: * Regarding the allocation of tasks to emplo- yees, the way decisions are made and who takes the corresponding responsibility, we may talk about internal organization Fig. 1.1. A small shop is a company too. Think about original or very specialised small shops * Ina broad sense, companies are called or- that you have seen lately in your town or neighbourhood. ganizations.
  • 10. Business organizations ] Assets Property + rights + obligations Intangible value of Work the company Employer Image + employees + customers Scheme 1.1. Components of the concept of organization. When it comes to perform their activity, organizations must develop mechanisms for communication, both among its members and with other economic agents they are rela- ted to (suppliers, customers...) That is to say, an internal communication and an external communication. We'll deal with these two types of communication later. Also internally, the organization is structured on areas or functions, which give rise to departments. Imagine you read an article in the newspaper or hear an interview with a pres- tigious doctor; usually the function of the person who writes the article or the doctor appears under the name and includes the correspondent department (for example, Jaime Alvarez, Director of Human Resources of Petroleros Europeos, S.A. or Alejandro Salgado, Head of Gas- trointestinal Surgery at Hospital Salud es Vida). Thus, the organization has an internal structure in which the work is divided among em- ployees and hierarchical relationships are settled with the aim of optimizing the skills and knowledge of each member. In the following sections we'll learn more about these issues, as well as their legal or juridical form, as organizations can be formed in several types (corporation, limited partnership, etc.), and also about corporate image or corporate identity of the company. 65 Case study 1. Buying a company The company Brokers, S.A. wants to buy another company, Aislantes, S.L. which has been running for several years. The total value of the goods of Aislantes, S.L. after deducting debts (that is to say, its assets), amounts to three million euros. However, Brokers, S.A. is willing to pay up to four million euros to obtain not only the assets of Aislantes, S.L. but also its image, techno- logy, customers and profit expectations (already signed contracts). Solution: This gap of one million euros corresponds to the value of the organization Aislantes, S.L. and it’s usually known as goodwill. S ih Spanish assistant —————_ Hay muchas formas de referirse a una empresa en inglés. El término mas general es business, que se refiere al concepto de "negocio" en general. Cuando ese negocio se crea por la asociacién de varias personas, recibe el nombre de company, que es el término que usaremos casi siempre en este libro. Ademas, también pode- mos referirnos a ella como firm o enterprise. Por otro lado, una corporation es una empresa que tiene personalidad juridica propia. S Vocabulary Goodwill. Intangible value of a company.
  • 11. 7 Business organizations Do you know that...? Freelance workers (self-employed workers such as many taxi drivers, lawyers, etc.) belong to the cate- gory of individual private com- panies. Watch out! The owner of the company is not always its manager. In pymes (small and medium-size compa- nies) both roles usually coincide in the same person, but in large com- panies management is delegated to professionals on a fee. oO Spanish assistant —————_ Hemos dejado los nombres de las diferentes formas juridicas en espafiol porque suelen variar de pais a pais, asi no tienen una traduccién exacta. Por ejemplo, seguro que has visto alguna vez las siglas Ltd. después del nom- bre de una empresa anglosajona; pues bien, esas siglas significan Limited, que se corresponderia con nuestra S.L., aunque con dife- rencias. Si quieres saber mas, con- sulta el siguiente enlace: http:// en.wikipedia.org/wiki/Types_of_ companies. / VA Activities 1. Search the web and indi- cate the minimum required capital to form a corpo- ration (S.A.) and a limited company (S.L.), and the difference between stocks and shares. 2. List the types of existing S.A. and S.L. You can find documentation online. @ 2. Types of business organizations Business organizations may be classified according to various criteria. In our case we'll focus on those features that allow us to distinguish their legal and organizational structure. © 2.1. Legal classification First of all, we must distinguish between public and private companies, depending on who holds the managing power (the State in the first and individuals in the latter). In turn, private companies are divided into individual companies, when they belong to only one person, and corporate companies, when the owners are several people. In Spain, there are several types of companies with their own legal features: Sociedad anénima (S.A.) Limited liability companies (partners do not respond with their personal assets) Sociedad de responsabilidad limitada (S.R.L.0 S.L) Sociedad cooperativa Companies with unlimited liability Sociedad colectiva (partners respond with their Sociedad civil personal assets) Comunidad de bienes Limited partnership (general partners respond with their goods, | Sociedad comanditaria but community partners don’t) Societies in which a minimum S.A. capital is required S._L. Societies in which no minimum capital is required Other companies Companies that, apart from obtaining benefits, aim at integration with the environment and social cohesion Cooperativas Sociedades laborales Companies that only seek profit Other companies Sociedad colectiva Sociedad comanditaria S.A. S.R.L. Market companies Companies whose activities are commercial Non-market companies Other companies Table 1.1. Types of companies in Spain. Besides the abovementioned features in Table 1.1, the following are also relevant: + The minimum capital of the S.A. is higher than the one of the S.L. + The identity of the partners is important in the S.L., so partners must give their approval when they transmit their shares; in the case of a S.A. (stock), this is not important. + Inthe S.C., partners bring money or time to implement it; in the C.B., the participants ex- ploit or manage pre-existing property without obligation to bring further capital to form the community.
  • 12. Business organizations ] © 2.2. Classification according to the organizational structure Each of the several divisions that we may find in this type of structure is known as department. The organizational structure is the distribution of the parts of an organization. Organizations use this means to achieve the goals they have set. © Types of organizations by organizational structure + Its structure is clearly defined and very stable. Formal + Each element of the company is located and identified and performs its function obeying orders from other individuals that are clearly identified. Informal + It arises from spontaneity: its members engage in relations that were not previously defined. Centralized * The decision-making authority occupies the top position in the corporate hierarchy. * The possibility to delegate tasks to lower positions is minimal. Decentralized the structure. * The authority assigns or delegates the decision-making to individuals in lower positions of hierarchical * The principle of hierarchy: each employee receives orders from his Linear organization immediate superior. Simple + Itis typical of pymes. Functional + Subordinates in lower levels receive orders from several heads of organization department instead of receiving them from only one head. Mixed or hierarchical + Heads with authority make their decisions upon the previous advice functional _ ae from specialists (staff). organization Organization * Decisions are made and responsibility is taken as a group, but not in committees individually. Complex * The organizational structure resembles a double-entry matrix. For example: one entry would be the function to perform in the company Matrix organization and the other would be the project to be developed in the company. Thus, there are at least two heads: a hierarchical-type head linked to functions and a project head. Highly * There's a large number of hierarchical levels and thus a big gap between staff and managers. Flat + Virtual absence of intermediate levels of command between management and staff of the company. Table 1.2. Types of organizations according to their organizational structure. 65 Case study 2. Matrix organization The company Ricos Quesos, S.L. is divided into two geographi- cal areas: north and south. In turn, it develops three different products: cured cheese, semi-cured cheese and soft cheese. Thus, if Ricos Quesos, S.L. was organized independently in each geographical area, we would have duplicate structures and tasks. It could also happen that the different criteria between the both areas resulted in different products depending on the area. Howe- ver, this could be avoided if employees simultaneously received orders from the area manager and from a product manager in charge of unifying the technical criteria for both areas. How could this approach be reflected in a matrix? Solution: Head of cured cheese Employees Employees Head of semi-cured cheease Employees Employees Head of soft cheese Employees Employees S
  • 13. 7 Business organizations 6 Vocabulary These are some concepts related to planning: * Forecast. It’s something that is expected to occur. It is a hypo- thesis about what we believe will happen in the future. Budget. It’s a forecast, but asse- ssed in monetary terms. Program. A set of tasks, a calen- dar for carrying out these tasks, a responsible person for them, and resources to perform them. S [ee Do you know that...? There are several tools in planning that can help us make plans in the short, medium or long term. The most important and well- known are the following two: * PERT: it was originatedin the U.S. Navy. Basically it involves the graphic representation of a se- ries of tasks that form a project. GANTT: it’s another graphic te- chnique in which you specify the expected time to spend on each task within a process. @® 3. Functions in the organization: planning, management, organization and control In the different classifications that we have seen before, we talked about the leadership role of line managers. In turn, we distinguished between the owner (employer) and the manager of the company, who, as we studied, may not always be the same person. The individual or individuals who manage the company have the mission of organizing all the resources with the aim of obtaining benefits for the company or organization through four functions: planning function, organization function, direction function, and control function. 3.1. Planning function The planning function consists of establishing the goals that the company has to reach. In other words, it is the ideal that will guide the company in its performance. For example, the company Disconta XS, S.L. wants to launch a new product to market with the purpose of covering an unmet need. The employer can plan many variables such as what product or service a company will sell, which activities it will develop or which organizational structure will be implemented. To do this, goals must be initially settled, and, according to them, the best strategies to achieve them will be determined. This is known as strategic planning. In any strategic planning there are several factors that the employer must take into account: + Resources: the questions concerning this particular issue are which elements should be used to achieve the goals, if they are available and, if they are not, how to obtain them. For example: according to the example above, and as a result of several market studies, the company Disconta XS will devote an initial budget of € 50000 and a total of 15 workers will handle all the processes to launch this product. + Actions: the question here is what is going to be done in order to achieve these goals. Mo- reover, these actions have to be sequenced in time and, if it’s necessary, some of them will have to be prioritized over others. For example, the plan made by the company Disconta XS implies the performance of the following phases: a) Market research for the product. b) Determination of physical resources and staff needed. c) Manufacture of the product. d) Distribution and sale of the product. + People: the point here is how many people are needed to achieve the objectives set and which tasks or functions have to be performed by each staff member. In the event of not having all those people available, the question is if it's possible to hire them or not. For example: a) Product design: as the company itself does not have this specialized staff, it has to outsource it. b) Manufacturing: it has been decided that a total number of ten employees will be needed for the performance of the different stages in the manufacture of the product.
  • 14. Business organizations ] c) Storage: three workers are considered necessary for this function. d) Distribution and sales: the tasks of distribution and sales will be outsourced (that is, they will be performed by staff outside the company); therefore, there's no staff assigned to this function. + Control: the point here is which control measures have to be established to act in the events where deviations from planned objectives or goals occur. For example: the esta- blished control system is based on the following standards: a) Product/employee: productivity of each employee cannot fall outside the 5% over the initial target that has been proposed. b) Costs: the costs for each production process may not vary more than 3 % of planning. ® 3.2. Organizational function The employer must ensure that every human and material resource meets the assigned function, and also controls what relations are established among them and intervenes if it is necessary. That is to say, the aim of the organizational function is that all the resources that have been settled in the planning phase are adequate and that the relationship between them is optimal to reach the achievement of the targets. Every organization process implies a restructuring in which bodies or departments are created to carry out the corresponding tasks. ® 3.3. Leadership function Once the functions of planning and organization have been defined, the company has to start working. The leadership function (or management) is the task of control that the employer has to perform upon his or her staff to motivate and guide it in the achievement of the objectives that have been previously planned. Leading is also to explain or transmit the company’s plans to others and give appropriate instructions so that, by means of performing them, the planned goals are finally reached. This is one of the most complex existing functions in business, as the employer should not only guide and motivate, but also understand the problems that his or her employees may face in the process of achieving the objectives, in order to intervene, if it’s necessary, by faci- litating support tools. Schematically, this function could be summarized as follows: ny Important A leadership style is the set of methods and procedures used by management to fulfil their leader- ship roles. There are many classi- fications of leadership styles, but they can be grouped into three main types: a) Authoritarian style: also called "autocratic", it’s based on the allocation of tasks and workers by managers. Each employee knows what to do. This is not positive for the participation of employees in the decision- making process. b) Democratic style: also known as "support to workers", it faci- litates teamwork and the par- ticipation of employees in the decision-making process. c) Advisory style: it is regarded as a combination of the two styles above. The manager consults with his or her employees, and therefore they feel valued in the company. However, the mana- ger is the one that ultimately decides. d) Passive or liberal style: in this case, the directors or managers settle the objectives that the organization has to reach and employees organize with each other how to achieve them. The role of the manager is limited to giving advice or transmitting in- formation on work procedures in the event that the employees ask for it. Scheme 1.2. Functions of the management of the company.
  • 15. 7 Business organizations = — Fig. 1.2. Levels of direction. Vocabulary Effectiveness. Ability to achieve the desired effect. Efficiency. Ability to achieve the desired effect at the least possible cost. 3 Case study 3. Control systems turing process. The company Control, S.L. is dedicated to manufacture and sell variation for this variable will also be set (for example: computer hardware. It decides to establish a control system in -5 %). the company in order to evaluate the results of the manufac- The estimated production volume per month is 5000 units for production of each employee will be obtained every a total amount of 200 working hours per month. Which control day. system would be the most suitable for this company? Solution: report daily data to the control department. This de- a) Control variable: a variable regarding production/em- partment will assess and determine the corrective mea- ployee will be set. Moreover, the affordable range of sures to be carried out in the event of deviations. In turn, when we talk about management we may find three different levels (Fig. 1.2): Globally: this is management itself, since it refers to the entire company. This is also known as top management. Departmental level: it includes what is known as "company management", as it relates to the technical or intermediate heads of the organization. Its scope is each and everyoneof the departments in which the company is structured. Operational level: it refers to every defined group of people or tasks. It is usually known as supervision, and it corresponds to the operational level of the organization. ® 3.4. Control function The control function is to verify if everything goes as it was previously planned, if the instructions that have been given are being followed, and if the settled principles are being observed. This verification will highlight potential weaknesses and mistakes so that they can be solved or corrected and prevent them from happening again. Moreover, this function also helps the employer to assess the outcome of the decisions that have been adopted by means of the measurement and correction of the activities that are being performed in the company, and always trying to ensure that the outcome fits the plans that were previously developed. Thus, the employer may detect possible deviations that can be analyzed in order to decide which corrective measures are the best to adopt with the aim of solving potential problems. As we can see, there is a direct relationship between planning and control, as any planning process necessarily requires a control system. Thus, the organization has a monitoring me- chanism that allows it to assess the extent of achievement of the objectives that have been proposed and, therefore, to assess the effectiveness of the planning. In any control process, we can define the following stages: a) Establishing several control variables (for example, productivity / employee). b) Specifying how we are going to gather information about the variable that we have set (daily production statistics, etc.). c) Heads of the control department will compare the expected data to those that have been collected on an actual basis and will discuss the deviations that may have occurred. For example, if it is planned that 1000 units of product A must be obtained every day but daily production statistics show that only 950 units have been obtained, there is a deviation from the figures that were previously planned. d) According to the obtained deviations, the most appropriate remedial actions will be proposed. In our case, the measure could be to increase working time. b) Data collection: it will be done through the company’s internal accounting. To do this, worksheets with the c) Control department: the heads of departments will J
  • 16. Business organizations ] @ 4. Departments in the company. Organizational charts © 4.1. Concept and types of departments As we mentioned before, the function of organization involves dividing the company into smaller units or structures. These units are known as departments, areas or functional units of the company, and they are specialized in one or more specific tasks in order to achieve the goals or objectives that have been planned. The tasks that are carried out in each department are usually supervised by the head of such department. Generally speaking, departments are usually set according to the functions attributed to them. Thus, there are four main functions that most common departments usually per- form (Table 1.3): production, commerce, finance and human resources. + It generates products or services through the transformation of resources. * It is also known as operation unit. Purchasing department + It’s responsible for the procurement of goods or services for the company. Sales department + It’s responsible for pricing, customer relations, conditions of sale, etc. * It obtains and manages the money that the company needs to develop its activity and controls all economic activities. + It plans and implements the decisions relating to recruitment, selection, training and design of compensation policies of the company staff. + It may also be responsible for security and hygiene at work. + In large companies, it develops performance evaluation programmes to assess the activity of employees. Table 1.3. Most common departments in companies. ® 4.2. Organizational charts. Concept, features and types An organizational chart is a diagram that schematically shows the formal structure of the company and its departments, functional areas and its relationship of interdependence. The main features of a classic organizational chart are those appearing in Table 1.4: It outlines the structure of the company, representing the units that form it and indicating the hierarchical relationships among them. It highlights the degree of dependence, as well as its hierarchical relevance. It indicates the specific name of departments and, sometimes, the name of those responsible. It shows a temporal reality: it must represent the hierarchical structure in the company at the time it is made, but not the when the company was created. It must be understandable: the graphical representation must be easily understood by those who read it. It is expressed simply: it must contain only the essential elements to provide the information that is intended to transmit. Table 1.4. Features of a classic organizational chart.
  • 17. 7 Business organizations As for the existing types of organizational charts, they vary depending on the criterion that has been chosen, as shown in the following table: Informative It informs the general public about the company structure, so it tends to be very simple. Analytical It contains the whole structure of the company in detail. General It covers the full set of the organization concerned. Partial It only shows a part of the structure. Structural It only shows the names of the elements, their hierarchical position and authority relations. Functional It reflects the functions or contents that are assigned to the different departments. Staff It contains information on job positions. Vertical It is made from top to bottom in a pyramidal layout. Horizontal It is made from left to right, and the base of the pyramid would be on the right. Circular The highest authority is placed in the centre and from this point, increasing circles are developed to represent the different levels of authority. Table 1.5. Types of organizational charts according to different sorting criteria. Here you can see two examples of charts: the first belongs to a highly hierarchical company, and the second belongs to a flat company. Example of a highly hierarchical company General management Staff director Financial director Commercial director | I | Head of the technical office Financial technicians Head of sales department Head of purchasing department —_— —— Payroll responsible Selection responsible Store operator Scheme 1.3. Chart of a highly hierarchical company. Example of flat organization Manager | Marketing head Production head Financial head Human resources head Scheme 1.4. Chart of a flat-organization company. As you can see in the first chart (Scheme 1.3), there are three department managers: staff, financial and commercial. The general manager (or CEO) is above, and below we can find heads of different areas or technicians, who may also have, in turn, workers in charge of different tasks. In the second chart (Scheme 1.4), only basic information is shown: a manager and four department heads. VA Activities 3. How many organizational levels are there in the organiza- tional chart in Scheme 1.3? Specify who reports directly to: 4. Make the following organizational charts: a) Informative chart of a farming company. a) The commercial director. b) The head of sales. c) The store operator. b) Partial chart of a computing company. c) Functional chart of a hotel company. d) Vertical chart of a wine export company.
  • 18. 1 Business organizations @ 5. Decision-making We are constantly making decisions in our daily life: we decide the clothes that we will be wearing, the road we will take to go somewhere, and many other issues that arise all the time. However, we are scarcely aware of many of those decisions, as we make them as if they were reflex actions; nevertheless, there are other decisions that we consider important enough to think about them thoroughly. The decision-making process is one of the major responsibilities for managers or executives, because, depending on the decisions they make, the company will meet its objectives or not. This is the reason why many economists and human resources specialists believe that busi- ness management is definitely an ongoing process of decision-making. Decision-making in the company is a rational process by which one or more individuals choose between two or more alternatives in order to solve a problem. © 5.1. Types of decisions Decisions may be taken as an individual or as a responsible for an organization; all those deci- sions may vary a lot depending on their level, importance or scope. Therefore, in Table 1.6 you can find the most significant classifications: + It is made by one single individual who is the one responsible Individual for it. Group + It is made by several people, who are responsible for it. + It is made by the top hierarchical level. * This decision involves planning and organization issues Strategic / Level | of the company. + It has to do with long-term goals. * This decision involves planning and organization issues of the company. + It is made by the middle positions of the company. * It is aimed at the efficient allocation of resources to achieve the goals set at the strategic level. Tactical / Level Il + It is made by the executives at the lowest level. * It involves the type of decisions that are made in the performance of regular work. Operational / Level Ill + Itis repetitive; it must be taken regularly. poreculod * There is a process to facilitate its performance + It is new to the company, and then it has to be made when the unforeseen circumstance arises. * There's no settled procedure for it. Non-schedulable Table 1.6. Types of decisions according to different sorting criteria. Activities 5. Mr. Roda is the final decision maker of Banco Oscense. Give examples of the decisions that he or the rest of decision-making levels could adopt for the bank according to the types in Table 1.6. 6. Search the web for other possible classifications of decisions authority, consensus, etc.). (regarding experience, > «i Fig. 1.3. The decisions we make lead us one way or another. Just think about th decision you made to study Vocational Training and the changes that it has brought to your life. Oo Examples Types of decisions: * Strategic/Level |: where to lo- cate production facilities, which the capital resources should be or which products will be pro- duced, Tactical/Level Il: budget use and control. Operational/Level Ill: alloca- tion of tasks to workers. Programmable: payroll. Non-programmable: launching a new product. je J
  • 19. 7 Business organizations Do you know that...? When somebody has to make a decision, the choice is influenced by several factors: Resources available. * Risk. * Time. Pressure. Beliefs. Values. 3 Case study 4. Decision-making process Gestoria FiscalSur, S.L. is increasing its customer base and plans to hire more staff, but it has a problem: the lack of space in its current workplace. Which process of decision-making has to be taken in order to solve this problem? Solution: the following stages: The process that has to be taken for making such a decision has 5.2. The process of decision-making As we indicated before, decision-making is a process consisting in choosing between two or more alternatives (take the bus or the subway, go to the gym or go shopping, etc.). It is obvious that when we have alternatives that are common and without much importance (as those above), the decision process is almost mechanical. But when we face new problems or those that are relevant somehow, it is necessary to perform the entire process and assess all possible alternatives. The decision-making process consists of four main stages: 1. Analysis of the situation. In this first stage, we must define the goal we want to achieve to solve the problem and what causes it. Therefore, it is essential to find all the necessary information, both present and past. 2. Planning and assessment of alternatives. In a second step, we identify the different options that we can choose and even raise new ones. Thus, the more options we have, the more we are able to find the most suitable. We will make an assessment of the alternatives by eliminating the less advantageous. 3. Decision and execution. At this stage, we will decide which the best option is among the possibilities and we will put it into practice, that is to say, we will execute it. 4. Monitoring and evaluation. Finally, we will assess whether the results correspond to our planning or not, that is to say, if we have achieved the objective or if we have solved the problem that we wanted to solve. Otherwise we will have to go through the process and the selected alternative again. on the suburbs; c) place C: this location is slightly sma- ller than the above, but it is in a big neighbourhood in the city and surrounded by many businesses. 3. Decision and execution: the company will finally take place C, because although it is somewhat smaller, it is easily accessible and is situated in a neighbourhood where there are many potential customers. 1. Analysis of the situation: the company wants to rent a new place, where there is room for more workers, but in turn this place must be easily accessible to their custo- mers and allow the company to gain new customers. 2. Planning and assessment of alternatives: FiscalSur, S.L. has three alternatives: a) place A: it’s downtown, but with few parking areas (it will be dismissed for lack of acces- sibility); b) place B: it’s very accessible, but it’s located . Monitoring and evaluation: once installed at the new location, FiscalSur, S.L. will check if the main problem is solved, that is to say, if they have enough room for ever- yone. It also has to make sure that the place is comfor- table for its customers, and if, moreover, moving to this new place has implied an increase in its customer base. Otherwise, it may want to rethink its decision and keep looking for more suitable premises. 5.3. Decision-making in a group In business, individual decisions are very common, although today there is a growing tendency to make decisions collectively or at least to allow a group to express their opinions, although the final decision is made only by one person. The decision-making process in a group has a number of advantages and disadvantages with respect to decisions on an individual basis:
  • 20. Business organizations ] Advantages: + It allows for more and better information gathering and offers different viewpoints. + It produces more and better solutions. * It increases motivation and commitment. + |t encourages creativity. + Decisions are usually accepted by everyone, even those that are riskier. Disadvantages: Fig. 1.4. Today companies tend to make their decisions on a group basis because of its many advantages. + It takes a longer time. + It dilutes individual responsibility. + There's a risk of conformism: sometimes a right personal opinion is abandoned in order to reach a consensus. + There may be members of the group that self-censor, avoid defending their views or critici- zing the others for fear of rejection from the group. + There is inequality: members of a group are never equal, as they differ in experience, level or role in the organization, verbal skills, etc. Therefore, a member may try to dominate the group. As for the way of making group decisions, there are many techniques (Table 1.7), and the following are the most important: + Its aim is to develop creativity and find an innovative solution. * Once the problem has been explained, each participant brings ideas spontaneously, regardless of the order in which they speak, the value or relationship of the ideas. * Ideas are written where everybody can see them. * To be effective, one cannot judge the ideas of others and self-censorship has to be avoided. * Once the group is not able to develop more ideas, these ideas must be valued and the members have to decide the solution; this stage may be done by the same group or by a different one. + It consists in dividing the group into subgroups of 6 people, who will discuss a topic for 6 min. + After this time there will be a sharing, and together they will draw a final conclusion based on reports of the subgroups. * It is very useful when dealing with a problem that can be split by assigning each of the sides of the issue to a subgroup. * The decision can be analyzed from six different perspectives, each of which is represented by a hat of one colour: — White: it represents the facts objectively, it works with facts. — Black: this is the most pessimistic thinking, working with drawbacks and mistakes. — Yellow: it symbolizes optimism, and works with advantages, successes and benefits. — Red: it represents emotions, feelings, intuitions ... — Green: it’s related to creative, innovative and different ideas. — Blue: it organizes and coordinates the various thoughts. It is used by those running the meeting. * The idea is to give the different types of thinking among the members of each group and analyze the problem from the perspective of the corresponding hat. It combines individual work and group work. It is divided into these steps: — The moderator of the team formulates the problem and asks each group member to write as many answers as possible. — The moderator collects the answers and reads them aloud, guaranteeing anonymity. Similar ideas are grouped on a whiteboard. — The group discusses ideas to clarify, develop or qualify them. — In writing, each member assigns a score to ideas. The moderator collects the scores, also anonymous, and quantifies them. — The ideas with the most votes will be adopted as group decisions. + It develops a great deal of ideas and, as the process is made in writing, it prevents some of the disadvantages of oral group decision-making, such as interferences caused by hierarchical differences or having more outgoing people covering most of the meeting time. Table 1.7. Techniques of decision-making in a group.
  • 21. 7 Business organizations Important Corporate identity has to be based on actual qualities or intentions of the company, and not only in what is believed to please the public. If the company uses attributes that do not belong to it, the public will clearly notice the inconsis- tency. @ 6. Corporate identity and corporate image 6.1. Corporate identity In the beginning of this unit we talked about the need for controlled communication processes in the company. In order to understand this importance, first of all we must understand why the company needs to communicate. And not only to communicate, but also why this commu- nication has to be performed in a controlled way. In advanced societies, people are subjected to thousands of daily advertising stimuli. We go down the street and there are advertisements everywhere; we turn the TV on, and advertise- ments are there too; and the same goes for magazines. All these companies that launch their messages want us to buy or use their products or services and to recommend them to the people we know, but there are too many of them. This oversupply is the reason why compa- nies have to make a major effort to stand out from their competitors, and the only way of standing out is making their consumers perceive them as a unique product, trademark or professional. Thus, we can define corporate identity as the enduring traits that define the personali- ty of the company. That is to say, it is what the company decides is going to differentiate it from its competitors for a long period of time. We could say it’s its DNA. © A. Properties of corporate identity When it comes to implement corporate identity, a company must fulfil four properties: * Stability: it has to be maintained over time so that the public may have the possibility of being aware of it. * Consistency: it must be based on actual attributes, but not in qualities that the company does not have. + Evolution: it has to evolve as time goes by to adapt to changes in society. + Uniqueness: the definition of the company must be exclusive, that is to say, products, technology or services can be copied, but not the identity. This is the most important property. ©) B. Dimensions of corporate identity Corporate identity has two dimensions: + Objective identity: it is formed by actual elements: legal form, corporate structure, history, the goods it produces... * Subjective identity: it is formed by the attributes associated with it, but they don’t need to be tangible. For example, the company may be friendly, modern, classic, green... Making an analogy with people, we could say that an objective identity might be formed by traits such as age, hair colour, skin colour, nationality, etc., while subjective identity might be formed by other traits, such as being sympathetic, altruistic, friendly and so on. It is essential that all members of the organization know and share the corporate identity of their company, as this identity is present in each and every action that the company performs: it’s in the way phone calls are answered, and also in its advertisements. Everything must be in accordance with corporate identity.
  • 22. Business organizations ] ©) C. Communication of corporate identity Any organization, by the fact of its mere existence, is sending information about itself to the environment. This information is issued in two ways: * Voluntarily: this is the information that the company issues in a controlled and intentional way. For example, if a line manager of the organization offers a lecture on the history of the organization at a conference. + Involuntarily: this is the information that the company issues without control. Those data are inferred from comments, actions or opinions that are produced in private or unintentio- nally. For example, if the president of the organization meets his or her old college buddies and talks about the way sales are going in that semester. When we receive information from different companies, we understand it in the same way, regardless of whether this was voluntary and, therefore, controlled by the company, or invo- luntary or uncontrolled. That is to say, all the information we receive through several channels makes us create an image of the company. Therefore, if the company wants us to have the image it is trying to create, communication must be: + Constant: the company cannot communicate with its public only when it’s convenient; it has to keep a constant communication. * Consistent: all communication actions undertaken by the company have to be faithful to their identity. That is to say, what the company is, what the company does and what the company says it does must be in the same line. If there are inconsistencies, unconsciously or even consciously, the consumer will trigger a warning signal that will cause distrust of all information and actions of the company, and even more when they are voluntary or controlled. 6.2. Corporate image To put it simply, we may say that corporate image is what the public think of our organization. It’s not just what an individual or group thinks, but what emerges from the collective. © A. Building corporate image The public builds corporate image from the information it receives from: + The company itself: this type of information may have been issued both voluntarily and involuntarily. + The competitors: the messages of competitors about themselves influence the image of other companies for comparison. * The environment: this includes any information related to the company or sector that reaches the public through media, friends, acquaintances... © B. Measuring corporate image After creating the corporate image of the company, it is necessary to measure its impact on the market. This measurement is possible through market research techniques, such as opinion polls. © Watch out! We may use the term public as a collective noun when we mean the set of individuals forming the society in which the orga- nization is immersed. The term general public is also used for this meaning. We also use the term public when we refer to all groups of individuals that form a whole with common features. For example, for the Regional Government of Madrid, the public is formed by all the inhabitants of the Region of Madrid. But the public of an organization is iden- tified with a group: workers of the organization, users of the services it provides, suppliers of the orga- nization, etc.
  • 23. 1 Business organizations The two elements that can be studied to carry out the measurement of corporate image are: The reputation of the company, that is to say, the valuation that the public has about the company. Positioning, that is to say, the place that the company has in consumer’s mind compared to its competitors. To sum up, we can say that corporate identity is formed by traits that belong to the organi- zation, while corporate image is formed by the mental perception or idea that the public has about the organization (Fig. 1.5). In any case, the goal of any organization is to make sure that its identity and its image are the same, as this is the way to ensure that the public has the mental picture of the organization that is best for it. 5 Case study 5. Building corporate image The sneaker company Zapatines, S.L. designs and produces shoes for young people aged between 12 and 18. Its corporate identity is formed by the following objective features: young company, founded in 2008, working team of an average age of 32. And the following subjective features: it supports young people, it’s different, rebel, urban, and fighter. Solution: To create a corporate image in the public so that it identifies that image with the abovementioned values of youth, rebellion, and so on, Zapatines, S.L. decides to adopt the following measures: Remove formal barriers within the company, creating an informal and equal working environment. Use the media that young people use in order to advertise the company. For exam- ple, social networks. Use a young language in all its communications. Hiring well-known graffiti artists € to do some designs of their shoes. 4 Sponsor skate and graffiti cham- fF pionships and music contests. ; Za pat j ness. 1 Deke z Support new clothing designers by creating scholarships. J Activities 7. The company Reposterias Lépez, S.L. owns several brands in the food sector. After more than 40 years on the market, it has decided to replace its traditional logo, con- sisting of the initials RL in plain blue uppercase letters, for a new one in which the initials are not plain, but formed by the symbols of the different brands of the com- pany. In doing so, Reposterias L6pez seeks to convey vitality, while maintaining the strength and solidity that the previous logo transmitted. By including the symbols of all the brands of the company, the public can also fully perceive what is behind Reposterias L6pez, what it does and how it does it. In orther to complement the logo change, the company has hired an advertising campaign. Which corporate identity properties are evident with this information? Which ele- ments of objective and subjective identity is the company intending to communi- cate? How does Reposterias Lépez want its identity communication to be? What is the requirement for a corporate image to match a corporate identity?
  • 24. Business organizations ] 6.3. The trademark The term trademark refers to any sign used to distinguish our products, services and industrial or commercial establishments in the market. The main feature of a trademark is that it has to be unique, that is to say, there can be no other identical or similar trademark in the market. The trademark must be unique for two reasons: + Because this uniqueness helps consumers to differentiate products, companies or services from each other. + Because it helps the company to be in the market, as it supports visually its distinctive qualities, that is to say, its identity. There are three basic types of trademarks: + Nominative: these are formed by a name or letters. They can use a unique font or not. In the example of the right margin, that would be BBVA logo (Fig. 1.5). Figurative: they are symbols, signs or images, such as Movistar logo (Fig. 1.6). * Mixed: formed by letters and symbols combined, such as El Corte Inglés logo (Fig. 1.7). These three types are the most commones, but there are other things that may also be a part of the brand, such as a melody (as the one in Nocilla advertisement) or a colour that has been exclusively used for this trademark (as the red colour in the case of Coca-cola). Today, even exclusive flavours are created so that they can be associated with trademarks. In any case, the fundamental types of trademarks are always formed by three elements: * The symbol: the figure or icon that represents our organization. For example, the flag of El Corte Ingles. * The logo: the name of our organization written in a certain way or in a particular font. For example: the letters of El Corte Inglés. * The corporate colours: colours that identify us as an organization. For example, colours green, white and black are the defining feature of El Corte Inglés. 6.4. Corporate Visual Identity (CVI) The term corporate visual identity refers to the development and application of the trademark in all areas of the company. Today, as a result of the increasing number of existing trademarks, companies have realized that their identity can’t only be based on design, and must go further and make a real dif- ference. Thus, just as we have noted the importance of consistency in corporate identity, in the case of visual identity this need becomes even more evident because, as a general rule, the first contact that an individual has with the organization is through the trademark. Therefore, if we want our trademark to be recognized in the future, or if we want that the actor of an advertisement is clearly identified, we must not change the graphics application of the trademark. For example, if we go down the street, the first thing we usually see before entering a store is its sign. Moreover, if the store contacts us by postal mail to confirm an order that we have just made, we need to identify the trademark, and this is the reason why it must be recognizable both in the sign and printed on paper. BBVA Fig. 1.5. BBVA logo. Example nominative trademark: formed by letters. Fig. 1.6. Movistar logo. Example of figura- tive trademark: a specially designed M as a trademark. Tent uy ey Fig. 1.7. Logo of El Corte Inglés. Example of mixed trademark: it combines a parti- cular font with the symbol of the flag. Ho Spanish assistant ————— La palabra espafiola "marca" puede decirse de dos formas en inglés: trademark y brand, como habras visto en este pagina. Aunque la mayoria de las veces se aceptan como sindénimos, no esta de mas que sepas que no lo son: mien- tras que trademark es un término general que hace referencia a la marca registrada en si misma, el término brand se suele emplear para referirse a elementos {visua- les, sonoros o de otro tipo) que sirven para diferenciarse de la competencia. Por eso se dice que algo esta branded cuando muestra alguno de estos elementos, por ejemplo, un boligrafo con el logo del BBVA. yy
  • 25. 7 Business organizations Web http://www.um.es/cpu/imagen/ In the section "Servicio de Comuni- cacién y Proyeccién Universitario" of the University of Murcia, you can access its Corporate Visual Identity Manual. Ty ary Fig. 1.8. Logo of El Corte Inglés in black and white. i Do you know that...? Pantone is a U.S. company that invented a system, the Pantone Matching System, which identi- fies colours by a certain code. Thus, the colours that appear in logos and symbols will remain the same regardless of where they are printed. Summing up to achieve an appropriate visual identity, it is necessary to develop a set of rules to guide the implementation of the brand in various media; in other words, when the brand is used in commercial letters, envelopes, websites, corporate gifts, etc., it must keep the identity and perfectly suit these media. These rules of application are usually explained in the corporate identity manual. The aim of the corporate identity manual is that everyone in the organization in charge of working with some element of visual identity knows how to apply the trademark. This is the way to achieve unification and standardization of communication elements. As for the elements that form corporate visual identity, they are the following: Activities Logo: it is the written part of the identifier of the trademark. For example, the letters forming the words El Corte Ingles. Symbol: it’s a graphical representation of the trademark. For example, the symbol of sports trademark Nike. Corporate colours: the choice of the colours that form the symbol, the logo or both. Co- lours have an standard reference for each one so that they can be faithfully reproduced. For example, a Pantone reference. Fonts: the font used in the logo, as well as the one to be used in all company communica- tions, has to be identified. For example, CEPSA has chosen the font family Gill Sans as its corporate font. Figure-background relationship: that is, how to apply the logo depending on the back- ground colour. For example, the brand CEPSA determines that if its logo can not be used with red background and white lettering, the background has to be black. Monochrome version: how to apply the logo or symbol using only one colour. The logo in Fig. 1.8 is a good example. Applications: all possible applications of the logo and/or symbol in different materials and media. For example, cards, letterheads, envelopes, banners, uniforms, company cars, and so on. 8. Using the Internet, search websites of companies, educational institutions, govern- ment agencies, NGOs, etc., and find a complete manual of corporate visual identity of the organization: a) Indicate which of the elements that we have seen in this unit are included in that manual and which are not. b) Once you have identified them, indicate which of the absent elements in the manual should appear. 9. Find three brands on the Internet that match the concept of nominative, figurative and mixed trademark. 10. Do you think that the choice of corporate colour influences the success of a brand? What colours would you choose to represent a brand of wines from the south of Spain? Why? 11. The font may be used to give a formal or informal character to the brand. Use a word processor to search for two fonts, one formal and one informal, to convey the brand image of the company Centro de formaciédn Calculus, S.L.
  • 26. Business organizations Classification of companies according to their organizational structure Functions of the organization Organizational chart Decision-making Corporate identity (DNA of the company) Trademark Formal or informal Centralized or decentralized Simple (linear or functional) or complex Hierarchical or flat Planning Production Sales Organization Commercial Departments Purchasing Management Financial Control Human resources Schematic diagram showing the formal structure of the company and its departments, functional areas and their relationship of interdependence. Purpose Range Sorting criteria Content Graphical Layout Situation analysis Planning and assessment of alternatives Process with four stages Decision and execution Monitoring and evaluation Techniques of decision-making in group: brainstorming, Phillips 6/6, Six thinking hats, nominal group. Objective identity: formed by real elements: legal form, structure, history, goods produced... Corporate identity Subjective identity, formed by the attributes associated with it, x but those doesn’t have to be tangible: friendly, modern, classic, green... Corporate image (public perception) Corporate visual identity: development and application of the mark in all areas of the company. Sign used to distinguish our products, services, industrial or commercial establishments in the market and so on.
  • 27. 7 Business organizations Test review . The business organization is NOT: a) Assigning tasks to employees. b) Paying applicable taxes. c) Distributing responsibilities among members of the company. d) Line managers making decisions. . Which of the following types of company divides its share capital and limits the liability of the partners? a) Sociedad limitada. b) Sociedad colectiva. c) Sociedad andénima. d) Sociedad cooperativa. . The function responsible for raising the targets or goals to be achieved by the company is: a) Organization function. b) Control function. c) Planning function. d) Management function. . Which of the following are managing functions of the employer? a) Identification of objectives, planning and control. b) Identification of objectives, organization, planning and control. c) Identification of objectives, resource allocation, man- agement and control. d) None of the above. . Regarding the decision-making process, which of these statements is correct? a) When we face a common problem, the full process has to be performed. b) The situation analysis involves identifying the different options that we can choose. c) The more options we have, the lower the chances of finding the best. d) It is necessary to assess whether the results correspond to those planned or not. . In the technique "six thinking hats" each colour reflects a different thinking style. Indicate the wrong option: a) The black hat represents the most pessimistic thinking: it works with drawbacks and mistakes. b) The yellow hat symbolizes optimism: it works with advantages. c) The blue hat represents the facts objectively: it works with facts. d) The green hat is associated with creativity, innovative and different ideas. 7. The properties of corporate identity are: 10. 11. 12 a) Uniqueness, objectivity, consistency and evolution. b) Stability, objectivity, evolution and uniqueness. c) Stability, consistency, evolution, uniqueness. d) Consistency, kindness, uniqueness and evolution. . The construction of the corporate image results in: a) The creation of the company’s trademark. b) The communication of voluntary and involuntary infor- mation. c) Two measurable elements: positioning and reputation. d) The subjective elements of the company’s corporate identity. . The elements of a trademark are: a) Figurative, nominative and mixed elements. b) Fonts, the figure-background relationship and applica- tions. c) Design, colour and creativity. d) The symbol, logo and corporate colours. A decision that is made on matters arising repetitively and with an established procedure is known as: a) Scheduled decision. b) Intended decision. c) Routine decision. d) Non-schedulable decision. A decision that is made by a superior and that refers to the organizational structure of the company is: a) Strategic or Level |. b) Tactical or Level Il. c) Operational or Level Ill. d) None of the above. . The organization whose decisions are taken by the leaders but with professional advice is: a) A matrix organization. b) A hierarchical functional organization. c) Aclover organization. d) None of the above.
  • 28. Business organizations ] Check your learning Distinguish types of existing business institutions 1. Media usually refer to a special kind of company known as pyme. Find out what a pyme is and define the different types of existing pymes. Tip: the website www.creatuempresa.org/apoyoinfo.htm may be helpful to solve this activity. 2. Search the Internet and find out what the laws governing corporations and limited liability companies are and indi- cate the minimum capital required to constitute them. 3. There are other types of companies that participate in the social economy principles. Enter the website of Confedera- cién Empresarial Espafola de la Economia Social (CEPES), www.cepes.es, and indicate which they are. Also indicate all the basic features of social economy companies. Relate the common functions of the organization: manage- ment, planning, organization, execution and control 4. List the factors that influence strategic planning and that every employer should consider. 5. Which is the difference between the functions of mana- gement and organization? Give an example of a task that belongs to each of these types of functions. 6. The company TEXTILNOR, S.L. raised the following issues in amanagement meeting: a) The operations department proposes a change in staff shifts to produce at lower costs. b) It is proposed to choose between two possible product lines to launch next year: decorative items or toiletries. c) The heads of different departments explain the degree of achievement of the objectives and the deviations that have occurred on the plans while establishing measures to correct these deviations. d) The manager emphasizes the need to motivate staff and to explain clearly its functions. Which function of the organization relates to each case above? Be aware of the importance of an adequate organizational structure to perform the provision of quality services 7. Make the chart of a company including (from the highest to the lowest priority) the following organizational levels: + President of the company. + General manager. + Departments of: 8. Following the classification of the charts, match the — Production. — Staff. — Logistics. — Administration. This one has a technical staff of investments. + Employees (hierarchically dependent and independent from the different departments). following types with the group they belong to: General chart Depending on the purpose Organizational chart Circular chart Depending on the range Analytical chart Horizontal chart Depending on the content Partial Chart Depending on the layout Staff chart 9. Describe the features that concur in the following organi- 10. Think about the reasons you had to study this Vocational 11. Make a classification of the types of existing decisions zational chart: Employees Middle positions Department heads Manager Training Course. In relation with your thoughts, design your own decision-making process for this specific case. according to the level criterion.
  • 29. q 7 Business organizations Check your learning 12. Match each type of decision with its meaning: 1. Decisions made during the develop- ment of regular work. a) Scheduled b) Operational c) Individual d) Strategic 2.They are adopted by the supe- rior level of the organization. They settle long-term goals. 3. Decision made by a single person with final responsibility. 4. Decisions to be taken periodically. 13. Describe a scheduled decision you usually make every day. Why do you think that it is scheduled? Was it a non- schedulable decision in the past? . List the advantages and disadvantages of decision-making in groups. . Indicate if the following statements are true or false: a) Decision-making in the company is an irrational process by which one or more individuals are choosing between two or more alternatives. b) According to the level of the decision maker, there are scheduled and non-schedulable decisions. c) Strategic decisions are those related to the objectives of the company on a long-term basis. d) Encouraging creativity is an advantage of decision- making in groups. e) The technique Phillips 6/6 combines individual work with team work. f) The technique "six thinking hats" allows analyzing a decision from six different points of view. Recognize different types of existing trademarks 16. List three examples of famous companies of each of these types of trademarks: nominative, figurative and mixed. Differentiating between corporate identity and image 17. Indicate whether the following statements correspond to elements of subjective corporate identity, objective corpo- rate identity or corporate image of the company: a) The company Tadami decided to adopt the legal form of corporation to facilitate the entry of new members. b) It was founded forty years ago. c) It manufactures wooden furniture of high quality. d)|t has always advocated the use of wood from sus- tainable exploitation and its products are covered by a pan-European forest certification. 18. 19. 20. e) Its customers value their involvement with the preser- vation of the environment. f) Tadami, S.A. commits to cutting-edge designs that offer innovative solutions. g) ts designs have obtained several awards for innovation from magazine conducting consumer surveys. h) It produces furniture collections for living-rooms, bed- rooms, offices and dining areas, and therefore customers find solutions for the entire house in its catalogue. They value this issue because they can keep the same style throughout the house. Read the following statements and indicate whether they are true or false: a) Corporate identity may change constantly to adapt to what the public demands. b) Companies should always communicate with their public, and not just when it’s convenient for them. c) The identity of a company can be copied, as well as the services it provides. d) Corporate identity is known by the line managers of a company, and the rest of the company members don’t need to know about it. e) The information received by the public of a company through friends or relatives do not affect its corporate image. f) Consistency is one of the issues that the corporate iden- tity needs to have so that the public may create the image that the company is interested in. We have created the corporate visual identity of the ba- kery Tupan. Which potential applications should we consi- der in the manual of corporate visual identity? Indicate if the following statements are cases of voluntary or involuntary communication of corporate identity: a) The president of the NGO Salvacién Sur offers a lecture on the history, goals and values of the organization. b) The marketing manager of Zapatines, S.L. calls for an internal meeting to inform partners about the new advertising campaign. c) The accountant of the bakery Tupan tells the accountant of the fruit store Freshverd that sales are going down. d) The purchasing manager of Zapatines, S.L. meets two friends and tells them that the new advertising cam- paign that her company is about to launch seems "for dummies" to her.
  • 30. Unit The communication process In this unit you'll learn how to: Identify the elements and stages of a communication process. Assess the importance of maintaining a positive attitude towards a communication process. Analyse the various barriers that may arise in communication. Differentiate between communicating and transmitting information. Choose a suitable alternative to solve communication problems. of the communication er, receiver, message, , context and feedback. e between communication ation. arriers to communication. ions to barriers cation. r ,
  • 31. 2 The communication process 6... In this web page you can obtain more information about the com- munication process: www.portalcomunicacion.com @ 1. Elements involved in the communication process In the first unit we defined a company as a business organization where people work. We also explained that those who work in it must communicate with each other (internal communi- cation) and that the company also communicates with the outside (external communication). But what are the roles that communication plays in organizations? They are the following: * Motivating employees and creating a proper cooperative environment. * Reporting or providing data needed for decision-making and spreading the goals and ob- jectives of the organization. * Controlling the performance of plans and the behaviour of its members. * Expressing emotions about work achievements or failures and relate the organization with its environment. In this unit we will focus on communication in general and we will introduce a series of basic concepts to expand and apply them to business communication in the next unit. From a practical point of view, the issues related to oral and written communication are considered separately. Oral communication, on the other hand, is not only the set of words that is transmitted: there are also elements, such as gestures, that we use when we speak face to face, as well as the voice tone that goes with these words and that is a part of the meaning that you want to give to the message. These elements form the so-called non-verbal communication, as we will see in detail in the following sections. Activities cases: success: 1. Indicate the communication role in each of the following c) A study on prospective customers of a new cola: a) The placement of a poster with the picture of the employee that has excelled in the past month: b) The expressions of joy of the athletes when they get a Cola demand y = -139.53x3 + 1258.5x? - 3900.7x + 4168.2 1200 1000 800 600 400 200 0 1.25 1.75 2.25 2.75 3.25 d) An internal circular letter asking the employees to observe the dress code of the company:
  • 32. The communication process 2 (5 Case study 1. Communicating the new company’s product The company Piedras Soneira, S.L. is organized according to this organizational chart: Operator 1 ; Vicente Bajo Operations manager Alejandra Diaz Operator 2 Juan Sala Marketing manager Sales agent Pedro Pérez Luisa Vargas Financial manager Administrative assistant Alba Soneira Sara Castelo Scheme 2.1. Organizational chart of the company Piedras Soneira, S.L. The manager, Arturo Soneira, wants to launch a new range of marble countertops for catering establishments. For this purpose, he brings the heads of the three departments together at his office and tells them his idea. The three of them express their agreement and undertake to carry out a joint plan for that launch. What elements can be identified in this communication process? Solution: In the communication process occurring in Arturo’s office we can identify several ele- ments: The sender: the person issuing the message, which is Arturo Soneira. The receivers: the recipients of the message. In this case the heads of the three departments. The message that is transmitted: "We are launching a new line of marble countertops for the catering sector." The channel or medium through which it is transmitted: it is transmi-tted orally by Arturo Soneira. The code or set of signs and symbols that transmit the message: in this case, English language. The context: location, time, culture of the participants and, in general, the circum- stances in which the message is transmitted. In this case, they meet at the office of the general manager after being called by Arturo Soneira. g Activities 2. The company AQUAOCIO, municipal swimming pool supplier in the towns of the Autonomous Community of Castilla y Len, sends messages to the cell phones of the customers that have been with the company for more than one year to announce the gift of some invitations to a ther- mal treatment. Indicate the elements of this communica- tion process. Web If you want to expand your know- ledge on communication within the company, visit the following link: + http://www.ciberconta.uni- zar.es/leccion/comui/100.htm (©Esther Puyal) 3. Enter the website of the campaigns of Direcciédn General de Trafico (DGT), www.dgt.es/was6/portal/contenidos/ visor_multimedia, and answer these questions: a) Who is the sender? b) Who are the recipients? c) What channel or channels are used?
  • 33. 2 The communication process © Watch out! —————————_ Do not mistake the meaning of the message for its content. The meaning is given not only by words, sounds, pictures or gestu- res that are transmitted, but also by the context in which we live. Take the sentence "Let’s go to the bank". It could be said by a busi- nessman to a customer with the idea of going together to a finan- cial institution to deposit some money; but it could also be used by someone who invites a friend to have a walk along the riverside of their town. Web In the following website you can learn the rules for the proper use of the microphone: www.asesorutil.com/uso-del- microfono-conferenciantes The most common scheme for the communication process (Scheme 2.2) was established in the last century by Roman Jakobson, renowned Russian linguist, and is usually represented as follows: Receiver Sender Decoding Message qT Channel Feedback Scheme 2.2. The communication process. For a communication process to develop, an exchange of information is required. If there is no exchange, there is no communication, as this is only information transmission. VA Activities 4. Ediciones Aprende, S.A. is a company dedicated to publishing textbooks. It has a website aimed only at posting information about its products. What other functions could be incorporated to the website so that the communication with its customers and suppliers could happen? Form groups of students to solve this activity. 5. The communication model that we have represented is not the only theory that has been developed on the subject. Harold Dwight Lasswell, for example, proposed a theory that has been widely used in mass media performance. Using the resources provided by Internet, find out what this theory is about. © 1.1. The sender The sender is the one who transmits the message. In a company, the sender may be, for example, a manager giving instructions to his or her employees. The sender seeks or intends a certain reaction in the recipient as a result of the information transmitted. Therefore, the sender's primary mission is to encode the message. Encoding a message means: * Choosing a transmission system or channel to ensure the connection and a suitable code or system of signs to allow the communication process. For example, no fluent commu- nication will be achieved using the Spanish language with a person who usually does not use it. + A proper use of the transmission system. For example, when we speak on a microphone. The proper use of the microphone to address an audience is very useful to avoid annoying sound distortions that might prevent the message from being clearly perceived. To avoid this, you should check some issues such as the distance to the microphone, the volume of your voice or the direction in which to speak.
  • 34. The communication process In a conversation, the sender and the receiver alternate their roles as information is exchanged (for example, the boss speaks first, then the employee, then the boss again, then the employee, and so on; however, when the boss brings the company’s employees together to inform them about new internal rules, this only implies a transmission of information). In turn, the communication process always entails an exchange of messages, along which the sender and the receiver exchange their roles successively (in the example above, the boss explains something to the employee, the employee answers if he or she thinks that these ideas are viable, etc). This means that, sometimes, we cannot know who the original source is and who the recipient was initially, and we must consider them as a source or sender and receiver simultaneously (Fig. 2.1). For the message to be transmitted with guarantees by the sender, it is important that he meets a series of recommendations: + Developing the ability to communicate and improvising. + Transmiting ability, confidence and credibility. + Knowing and showing interest in people and culture of the organization and in communi- cation techniques. Moreover, there is no doubt that the style used by the sender in communication influences the effectiveness of communication. Thus, a sender may be aggressive, inhibited or assertive. In the first case, intimidation may lead to a poor response from receivers, who do not feel free to give their opinion or possible answer because of fear. In the second case, we have senders whose shyness gives a sense of lack of control, and therefore they transmit insecurity and lack of confidence. The third case is the most effective communication style, as assertiveness refers to express what you want in a direct and honest way, apart from showing respect to the speaker or receiver. VA Activities 6. Companies often turn to public personalities to strengthen their credibility in the message they send to consumers. Find three examples of advertisements in which celebrities appear and say if you think that the credibility of the product improves with their appearance. © 1.2. The receiver The receiver is the recipient of the message and the one who interprets it to understand its meaning. It may be a single person or several. When a receiver performs this interpretation of the signs that come as a message, we say that he or she decodes it. Thus, in a written message, the receiver reads and interprets it through his or her knowledge of the language in which it is written. To produce a real communication process, it is necessary for the recipient to react in some way when the message is received, that is to say, to transmit information to the sender about the reception of the message to verify the existence of good communication. This is called feedback and it is another element of the communication process that we will be discussing in detail in section 1.7. When you receive a message, especially in some types of communication such as face-to-face conversations, the receiver must maintain an active attitude; this is why we usually talk about the importance of active listening. Content Content a tree tree al b~ Sender Receiver Fig. 2.1. Relationship between senderand receiver. The sender thinks about the content that he or she wants to transmit and encodes it using the spoken language. The receiver listens and decodes the information, interpreting the content. For content to be easily understood, the sender can show images supporting the words to the receiver. Spanish assistant Como ya habras visto, el “emisor” y el “receptor” son el sender y el receiver en inglés, respectivamen- te. Pero hay mas palabras para referirse a ellos; asi, “emisor” tam- bién puede ser issuer o source, y “receptor” también puede ser recipient. Lo mismo ocurre con el verbo “transmitir”, que puede ser to transmit 0 to convey.
  • 35. 2 The communication process [2 Do you know that...? The expression lingua franca refers to the language in which people who speak a different language and who perform a common acti- vity can understand each other. The expression comes from the language of the Franks, a people who founded the empire of the same name in the Middle Ages. This language was commonly used for business transactions among the peoples of the Mediterranean. Nowadays, it is said that English is the lingua franca for business. Regarding the receiver, the recommendations to enrich the process of oral communication in a positive way can be summarized as follows: * Watching the interlocutor during the conversation, because we can infer his or her attitu- des and feelings on the matter we are dealing with from gestures and behaviour. * Communicating with our own gestures that we are listening to the conversation or that we agree with some point of the dialogue, for example, nodding. * Using a voice tone that suits the circumstances in our turn of the conversation. It is also important to show, from time to time, that the message is being understood with expressions like "right", "sure" or other similar ones. In any case, do not interrupt the person who is speaking. * Waiting our interlocutor to expose all his or her arguments before making judgments. Once finished, we can offer solutions or assistance if necessary. In any case, we must be ca- reful when we express our opinion and, if possible, we must think before speaking to avoid hurting the feelings of the other person. © 1.3. The message The message is the information that the sender transmits to the receiver. It is the idea that we try to transmit and it is the main element in the communication process. The characteristics (Scheme 2.3) of a good message are: — Clarity — Unequivocal and easy to decode. The information transmitted in the Accuracy = —— message must be accurate and complete. —— Objectivity —— True, authentic, as unbiased as possible. It must be transmitted at the right time, that | Opportunity — is, the moment in which the message has the proper effect for the purpose to be achieved. wu Interest — Information must be relevant to interlocutors. Scheme 2.3. Basic features that a properly-made message should have. Activities 7. In the article by Enrique Sueiro, "Comunicacién intima y preventiva en la empresa", released in the newspaper El Pais on July 23, 2010, we can read the following: "[..] some organizations sacrifice the truth to preserve the good. Thus, they conceal or disguise information to their employees in order not to discourage them with facts and data that do not suit the official message, they show managing incompetence, and act with managing immaturity and lack of sensibility. This communication disease implies using the facts (which are denied by words) to practice the saying ‘the end justifies the means’. In the best case, silence or denial only work for a short time. [...] [...| In the discussion after a session in Barcelona, | was asked about the best way to communicate an imminent collective dismissal in a company. The first thing is that we shouldn't let urgency affect our time schedule because, in communication, the clock is as important as the compass. Also sensitivity is. Moreover, unlike the advice of Direccién General de Trafico, the important thing here is not to get to our destination, but to do it on time. The severity of being late always ends up with scars and, sometimes, it is progressively or fulminantly lethal. It’s all about practicing what we call preventive communication [...]" What message features fail in the communication of the companies that Sueiro describes in his article? Why?
  • 36. The communication process 2 In the communication process, when it comes to transmit a message, we can distinguish three types: * Intended or planned message: the one that the sender intends to transmit. * Sent message: the message that has actually been transmitted and that is in the commu- nication channel. * Received message: the message that has been decoded and understood by the receiver. In effective communication, these three messages should be identical, but in practice they rarely are. The problems in encoding and decoding the message, which we will see later, cause differences between the intended or planned message and the one that is actually received. © 1.4. The channel The communication channel is the means through which information circulates. It is a form of connection between the sender of the message and its receiver. This is a necessary element in any communication and influences the content and code of a message. Many of the distortions (called noise) that can occur in the communication process are due to an inappropriate choice of channels. Therefore, we must choose a channel that provides us with results and suits our possibilities. The communication channels or means can be classified according to different criteria. One classification distinguishes between personal and impersonal channels: ¢ Personal channels are those in which the sender and receiver have direct contact, such as the telephone. They allow an immediate response or feedback. * Non-personal channels are divided into two categories: mass media and selective me- dia. The former are intended for general public, such as newspapers, while the latter are addressed to specific groups. An example of selective media is a specialized magazine for computer fans. A second classification focuses on whether the formal structure of the organization is used or not, according to which they may be formal or informal: * Formal channels: those occurring within the formal networks of the organization, that is to say, the hierarchical relationships established in the organizational chart. Some examples are: * Bulletins or newsletters. Oo Examples Intended, sent and received mes- sage It is told that king Carlos V recei- ved a sentence that he had to sign. The text said "Perdén imposible, que cumpla su condena. Carlos V was feeling magnanimous that day, and a little funny too, and be- fore signing the sentence he era- sed the comma and put another before the word "imposible". The text after his signature had litt- le to do with what was initially planned... roan ncn en 200 Za salarias * Posters. Calls. Internal information publications. Ipresas _ re Fig. 2.3. Newspapers are a mass medium. ‘eon ieerempule * E-mails. * Informal channels: those occurring among a group of people outside hierarchical relation- ships. It is a social network. This is the scope where rumours are usually born. But a channel can be also understood as the line of people through which messages are distributed in the organization. Then, depending on the direction in which information travels, communication may be top-down, bottom-up or lateral. That is to say, when we consider the communication channel from this point of view, we must remember the hierarchical relationships appearing in organizational charts. For example, in top-down communication, an individual with a leadership role in the organizational chart of the company communicates with his or her subordinates to give them instructions on how to perform a task. Do you know that...? Rumours can be divided into seve- ral types: * The aggressive rumour: it goes against a person or group. * The menacing rumour: it causes fear or anxiety. * The rumour that expresses desi- res or wishes.