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
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
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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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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
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6
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Telephone communication
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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
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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
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The customer service department
8
1.
2.
3.
4.
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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.......
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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.
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
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.
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.
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: