1. Explain why understanding the communication process and having communication skills are important for managerial success.
2. How are accounting controls used by top management in the situation described in the area?
Question 1: Answer
The communication process in business involves managers informing employees about organizational issues, listening to their opinions and getting feedback from them on how the information has been used within the organizational context to further the organization’s goals (Szpekman 12). Good communication skills involve giving definitive and clear messages, making interactions with employees a continuous exercise and not one-off events, and also recognizing that all organizational issues involve both benefits and costs (Razi and More 58).
Understanding the communication process is very important for management because it is through this process that managers communicate very important details of the job to their employees (Szpekman 12). A good understanding of the process combined with good communication skills can help the managers find ways of achieving competitive advantage because it is through appreciation of employees and engaging them more on critical matters of the organization that managers can achieve productivity and in turn improve on organizational performance (Razi and More 57).
Studies have shown managers who master the art of communicating effectively with their employees achieve more than those who isolate themselves from their employees (Szpekman 12). This is because, when employees’ participation in roles such as decision making is improved, they develop a greater sense of commitment towards their jobs and they will work towards the success of the organization. This is because they know that when an organization achieves high performance it benefits both the organization and themselves (Razi and More 57).
Good communication between management and employees leads to greater autonomy in decision making and self drive among employees. When management assures employees of job security, they are able to interact freely with their peers and managers, the knowledge and skills that they get from such interactions is transformed into in producing the best results for the organization (Razi and More 59).
Most employees assert that in times of organizational transition, effective communications between them and management help to relieve the tension and anxiety that is associated with change (Papadakis 239). This is usually the case when managers take the necessary precautions to communicate the information needed to adopt change. In cases such as acquisitions, employees may develop fears on how the new management will treat them, But when their leaders take that initiative to ensure put them at ease and that their expectations are met, employees accept and adopt change more quickly (Razi and More 63). Effective communication also helps to avoid staff turnover that might come about due to fears of adopting change.
Question 2: Answer
Accounting controls used in the case include:
Effective communication among employees and with their superiors
In the case study, top management has used effective communication to help the employees in the adapting to the acquisition. The employees confirm that it is an effective control because it helped them deal with uncertainties and fears because they were allowed to communicate freely with their superiors and colleagues (Razi and More 63). This proved effective because in most cases employees are not allowed to discuss change issues with each other as it may be seen as a pathway to resisting change. Further, some companies do not allow employees to question their superiors when it comes to such matters.
Equipping employees with relevant skills and knowledge
When employees are equipped with the relevant skills and knowledge to do particular jobs, they become more effective. For top management engaging in an acquisition strategy, the best way to make the best use of employee skills is to ensure that employees have a wide knowledge base (Papadakis 240). In the situation described, top management is using both formal and informal training to enhance their employees’ skills. Top management can also increase the basic, specific and technical skills required by employees to accomplish tasks successfully (Razi and More 59). Engaging in training and development is a form of communication between management and employees. Where employees lack the necessary skills to deal with an acquisition, management can use their training facilities to enhance the confidence of employees and this is considered as an effective accounting control when dealing with acquisitions.
Improving relations with employees through employee participation
Employee participation as an accounting control is intended to make employees develop a greater sense of autonomy, self direction, communication and team work (Razi and more 60). Successful operations of the telecommunications company are attributed to self managed teams which require less control from management. This allows management to concentrate on more important issues while creating mutual trust between them and the employees, and which also acts as a strong incentive in helping employees keep up performance even after the take over (Razi and More 66).
Motivating employees through use of employee incentives
Employee incentives as an accounting control are aimed at ensuring job security for employees where there are fears of changes that may come about due to the acquisition (Razi and More 60). Some measurements used to determine employee incentives in the case include opportunities for promotion, balance between work and family and bonuses based on the performance. Top management of the telecommunication company carries out reviews to ensure that employees are always motivated. Such an act from management usually gets a positive response from employees who ensure organizational success (Papadakis 237).
Equipping employees with firm specific knowledge
Apart from equipping employees with the relevant skills, top management have ensured that they are at ease with their work by ensuring that they have access to the knowledge and skills that are specific to the parent company (Razi and More 68).
Papadakis, Vassilis M. “The Role of Broader Context and the Communication Program in
Merger and Acquisition Implementation Success.” Management Decision 43.2 (2005): 236,236-255. ABI/INFORM Complete. Web. 12 Sep. 2011.
Razi, N and More, E. ”The Role of Communication in the Acquisition of High Performance
Work System Organisations.” Australian Journal of Communication (2010): 55-75.
Szpekman Andy. “A four process to making managers stronger communicators”. Leadership
communication. (2008): 12.
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