Organizational Communication
ABB Asea Brown Boveri (ABB) is constantly attempting to streamline itoperation. (Pearce & Robinson, 2003) In 1997, the company had four corebusiness segments: industrial automation and robotic, electrical powergeneration and distribution; oil, gas and petrochemicals and, industry andbuilding technology. In 2000, ABB underwent an expansion to six divisions.These were: automation technology, electricity transmission, electricitydistribution, oil, gas, petrochemicals, building technology and financialservices.(Bierbaum, Kischewski, Kischewski, & Schmidt, 2001) In 2003, ABBin a strategic shift in favor of specialization, has chosen to concentrateits resources and research and development on two main core sectors ofpower technology and automation technology.(ABBWebPage, 2003) The organization has dedicated and committed leaders who are willing tocritically analyze the market they face and change the organization to makeit competitive in new and changing markets. Currently the company isconsidering divesting its oil, gas and petrochemical division. (ABBWebPage,2003) The leadership at ABB was willing to change the core business of the
When workers lower down the ranks inform their supervisors of situationsand conditions that exist as a result of the operation upward communicationtakes place. All individuals involved in such organizationsneed access to all the information available to adequately carry out theirtask. Long-term vision and foresight from managers at all levels ofthe organization is required to promote alternative methods ofcommunication. In this "bottom up" form of communication,thinking is expected from all employees in the organization and interactionis considered. ABB traditionally followedthis form of communication. A system type of organization can reach its fullpotential only if there is a good and efficient two-way communicationsbetween all levels of the organization. The manager remains at thecentre but new ideas and evaluation of worker feed back is consideredcritical. The silo effect of organizational work can create extremely limited focusin workers ABB learnt the pitfalls of the lack of horizontal communicationwhen they implemented the matrix type of organization. The role of communication within an organization cannot be stressedenough. Constantly restructuring and changing the core competencies of ABB can beconfusing to the stakeholders (employees, shareholders, the community inwhich ABB operates) of the organization. The validity of theinformation through the grapevine is never doubted as constant and periodicconfirmation of the information is obtained at every transfer point. In horizontal communication, individuals at different levels of theorganization interact to share information, tactics and discusses options. Horizontalcommunication at equal levels helps the worker or manager or departmenthead understand how decisions and task undertaken by them affect theorganization as a whole. McGregor both believed that in order forpeople to work to their full potential, they're basic needs have to besatisfied. In the past, upward and horizontal communication flow waslimited.
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