Top Performance through Empowerment, Teamwork, and Communication

Empowering Employees

An important component of effective management is the empowerment of employees. Managers empower employees by giving them authority and responsibility to make decisions about their work. Empowerment seeks to tap the brainpower of all workers to find improved ways of doing their jobs, better serving customers, and achieving organizational goals. It also motivates workers by adding challenges to their jobs and giving them a feeling of ownership. Managers empower employees by sharing company information and decision-making authority and by rewarding them for their performance—as well as the company's.

SHARING INFORMATION AND DECISION-MAKING AUTHORITY

One of the most effective methods of empowering employees is to keep them informed about the company's financial performance. Anderson & Associates (A&A), an engineering firm, gives its employees regular reports on key financial information, such as profit-and-loss statements. A&A designs roads, water and sewer lines, and water treatment plants for municipalities, along with private construction projects like retirement community Warm Hearth Village, whose residents were consulted during the planning process. The firm practices open-book management, giving every employee access to the same financial information about his or her employer. Like other companies that practice this strategy, A&A also trains employees to interpret financial statements so that they can understand how their work contributes to company profits. Using information technology to empower employees does carry some risks, however; for example, information may reach a firm's competitors. Although A&A considered this problem, management decided that sharing information was essential to the company's strategy.²

The second way in which companies empower employees is to give them broad authority to make workplace decisions that implement a firm's vision and its competitive strategy. Even among non-management staff, empowerment extends to decisions and activities traditionally handled by managers. Employees might be responsible for such tasks as purchasing supplies, making hiring decisions, scheduling production or work hours, overseeing the safety program, and granting pay increases.

This can be an especially powerful tool in many health care environments. At Lebanon Valley Brethren Home, a long-term care facility, workers at all levels are empowered to do whatever it takes to improve the quality of their elderly residents' lives. Each care worker attends to the same residents every day, so caregivers and residents form a strong personal bond. Caregivers are responsible for the overall management of their households, including meals and housekeeping. They make decisions for individual residents ranging from sleep schedules to room lighting. As a result, each Green House—or household within the larger community—feels like a home.³

LINKING REWARDS TO COMPANY PERFORMANCE

Whether they work in a small team or a large organization or are individual contributors, aligning employees' motivation and performance with that of the company is critical to success of both. Two widely used ways that companies provide workers with a sense of ownership are employee stock ownership plans and stock options. TABLE 9.1 compares these two methods of employee ownership.

EMPLOYEE STOCK OWNERSHIP PLANS

Over 10 million workers participate in 10,900 employee stock ownership plans (ESOPs) worth almost $870 billion.⁴ These plans benefit employees by giving them ownership stakes in their companies, leading to potential profits as the value of their firm increases. Under ESOPs, the employer buys shares of company stock on behalf of its employees as a retirement benefit. The accounts continue to grow in value tax-free, and when employees leave the company they can cash in their shares. Employees are motivated to work harder and smarter than they would without ESOPs because, as part owners, they share in their firm's financial success. Of companies that offer ESOPs, over 92 percent of those surveyed report an increase in employee productivity.⁵

As a retirement plan, an ESOP must comply with government regulations designed to protect pension benefits. Because ESOPs can be expensive to set up, they are more common in larger firms than in smaller ones. Public companies with ESOPs average around 14,000 employees, and private companies average about 1,500 employees.⁶ One danger with ESOPs is that if the majority of an employee's retirement funds are in company stock and the value falls dramatically, the employee—like other investors—will be financially harmed.⁷

STOCK OPTIONS

Another popular way for companies to share ownership with their employees is through the use of stock options—the right to buy a specified amount of company stock at a given price within a given time period. In contrast to an ESOP, a stock option gives employees a chance to own the stock themselves if they exercise their options by completing the stock purchase. If an employee receives an option on 100 shares at $10 per share and the stock price goes up to $20, the employee can exercise the option to buy those 100 shares at $10 each, sell them at the market price of $20, and pocket the difference. If the stock price never goes above the option price, the employee isn't required to exercise the option.⁸

Although options were once limited to senior executives and members of the board of directors, some companies now grant stock options to employees at all levels. Federal labor laws allow stock options to be granted to both hourly and salaried employees. An estimated 9 million employees in thousands of companies hold stock options.⁹ About one-third of all stock options issued by U.S. corporations go to the top five executives at each firm. Much of the remainder goes to other executives and managers, who make up only about 2 percent of the U.S. workforce. Yet there is solid evidence that stock options motivate regular employees to perform better. Some argue that to be most effective as motivators, stock options need to be granted to a broad base of employees.

Stock options have turned hundreds of employees at firms such as Home Depot, Microsoft, and Google into millionaires. But such success is no guarantee, especially when stock prices drop during an economic downturn. As with ESOPs, employees face risks when they rely on a single company's stock to provide for them.

Five Types of Teams

According to a saying attributed to Aristotle, “The whole is greater than the sum of its parts.” And so it is with employees—individually they may be “just” workers, but collectively they do amazing things: build new products, launch companies, and create whole new industries. To accomplish these tasks, a manager often creates a team—a group of people with certain skills who are committed to a common purpose, approach, and set of performance goals. All team members hold themselves mutually responsible and accountable for accomplishing their objectives.

Teams are widely used in business and in many not-for-profit organizations such as hospitals and government agencies. Teams are one of the most frequently discussed topics in employee training programs because teams require that people learn how to work effectively together. Many firms emphasize the importance of teams during their hiring processes, asking job applicants about their previous experiences as team members. Why? Because companies want to hire people who can work well with other people and pool their talents and ideas to achieve more together than they could achieve working alone. FIGURE 9.1 outlines five basic types of teams: work teams, problem-solving teams, self-managed teams, cross-functional teams, and virtual teams.

About two-thirds of U.S. firms currently use work teams, which are relatively permanent groups of employees. In this approach, people with complementary skills perform the day-to-day work of the organization. A work team might include all the workers involved in assembling and packaging a product—it could be anything from cupcakes to cars. Most of Walmart's major vendors maintain offices near Walmart headquarters. Typically, each vendor office operates as a work team, with the head of the vendor office often holding the title of “team leader.”

In contrast to a work team, a problem-solving team is a temporary combination of workers who gather to solve a specific problem and then disband. This team differs from a work team in important ways, though. Work teams are permanent units designed to handle any business problem that arises, but problem-solving teams pursue specific missions. When Toyota faced serious quality problems—unintended acceleration, faulty brakes, questions about tires—and was forced to recall thousands of vehicles, the company formed Rapid Response SMART Teams to deal with the technical problems. The teams were made up of field technology specialists, engineers from manufacturing and design, and product engineers. Together, team members worked with dealers across the country to contact customers and arrange for on-site analyses of each problem vehicle to determine what went wrong and why. Teams were encouraged to “listen and react” to customers' descriptions of their experiences as part of their investigation.¹⁰

Typically, when a problem is solved, a problem-solving team disbands, but in some cases, it may develop a more permanent role within the firm.

A work team empowered with the authority to decide how its members complete their daily tasks is called a self-managed team. A self-managed team works most effectively when it combines employees with a range of skills and functions. Members are cross-trained to perform each other's jobs as needed. Distributing decision-making authority in this way can free members to concentrate on satisfying customers.

Whole Foods Market has a structure based on self-managed work teams. Company managers decided that Whole Foods could be most innovative if employees made decisions themselves. Every employee is part of a team, and each store has about ten teams handling separate functions, such as groceries, bakery, and customer service. Each team handles responsibilities related to setting goals, hiring and training employees, scheduling team members, and purchasing merchandise. Teams meet at least monthly to review goals and performance, solve problems, and explore new ideas. Whole Foods awards bonuses based on the teams' performance relative to their goals.¹¹

A team made up of members from different functions, such as production, marketing, and finance, is called a cross-functional team. Most often, cross-functional teams work on specific problems or projects, but they can also serve as permanent work team arrangements. The value of cross-functional teams comes from their ability to bring different perspectives—as well as different types of expertise—to a work effort. Communication is key to the success of cross-functional teams.

A virtual team is a group of geographically or organizationally dispersed co-workers who use a combination of telecommunications and information technologies to accomplish an organizational task. Because of the availability of e-mail, videoconferencing, and group-communication software, members of virtual teams rarely meet face to face. Their principal advantage is their flexibility. Team members can work with each other regardless of physical location, time zone, or organizational affiliation. Virtual teams whose members are scattered across the globe can be difficult to manage, but firms that are committed to them believe the benefits outweigh the drawbacks.

Stages of Team Development

Teams typically progress through five stages of development: forming, storming, norming, performing, and adjourning. Although not every team passes through each of these stages, those that do usually perform better. These stages are summarized in FIGURE 9.2.

STAGE 1: FORMING

Forming is an orientation period during which team members get to know each other and find out what behaviors are acceptable to the group. Team members begin with curiosity about expectations of them and whether they will fit in with the group. An effective team leader provides time for members to become acquainted.

STAGE 2: STORMING

The personalities of team members begin to emerge during the storming stage, as members clarify their roles and expectations. Conflicts may arise as people disagree over the team's mission and jockey for position and control of the group. Subgroups may form based on common interests or concerns. At this stage, the team leader must encourage everyone to participate, allowing members to work through their uncertainties and conflicts. Teams must move beyond this stage to achieve real productivity.

STAGE 3: NORMING

During the norming stage, members resolve differences, accept each other, and reach broad agreement about the roles of the team leader and other participants. This stage is usually brief, and the team leader should use it to emphasize the team's unity and the importance of its objectives.

STAGE 4: PERFORMING

While performing, members focus on solving problems and accomplishing tasks. They interact frequently and handle conflicts in constructive ways. The team leader encourages contributions from all members. He or she should attempt to get any nonparticipating team members involved.

STAGE 5: ADJOURNING

The team adjourns after members have completed the assigned task or solved the problem. During this phase, the focus is on wrapping up and summarizing the team's experiences and accomplishments. The team leader may recognize the team's accomplishments with a celebration, perhaps distributing plaques or awards.

Team Cohesiveness and Norms

A team tends to maximize productivity when it becomes a highly cohesive unit. Team cohesiveness is the extent to which members feel attracted to the team and motivated to remain part of it. This cohesiveness typically increases when members interact frequently, share common attitudes and goals, and enjoy being together. Cohesive groups have a better chance of retaining their members than those that do not achieve cohesiveness. As a result, cohesive groups typically experience lower turnover. In addition, team cohesiveness promotes cooperative behavior, generosity, and a willingness on the part of team members to help each other. When team cohesiveness is high, team members are more motivated to contribute to the team because they want the approval of other team members. Not surprisingly, studies have clearly established that cohesive teams quickly achieve high levels of performance and consistently perform better.

Team-building retreats are one way to encourage cohesiveness and improve satisfaction and retention. Firms that specialize in conducting these retreats offer a wide range of options. CEO Chef offers to bring its team-building program to clients—an option typically less expensive than a traditional retreat. The culinary team from CEO Chef can travel to an off-site meeting location or to a company's own cafeteria for a team-building exercise in which participants work together to create a gourmet meal—then enjoy eating it.¹²

A team norm is a standard of conduct shared by team members that guides their behavior. Norms are not formal written guidelines; they are informal standards that identify key values and clarify team members' expectations. In highly productive teams, norms contribute to constructive work and the accomplishment of team goals.

Team norms can be simple such as a group's expectations for working hours (staying late) or employee dress (casual Fridays). Or they can be involved and complex such as a member's willingness to accept a groups' decision after a decision has been made. In either case, members who follow the norms are more likely to be seen as a valuable part of the team, whereas members who do not embrace the team norms are often seen as less productive. As will be seen in the next section, when team conflicts arise, they often occur because one or more members of the team are not adhering to the team's norms.

Team Conflict

Conflict occurs when one person's or a group's needs do not match those of another, and attempts may be made to block the opposing side's intentions or goals. Conflict and disagreement are inevitable in most teams. But this shouldn't surprise anyone. People who work together sometimes disagree about what and how things are done. What causes conflict in teams? Although almost anything can lead to conflict—casual remarks that unintentionally offend a team member or fighting over scarce resources—the primary cause of team conflict is disagreement over goals and priorities. Other common causes of team conflict include disagreements over task-related issues, interpersonal incompatibilities, simple fatigue, and team diversity.

Strong teams are diverse in their members' experience, ability, and background. And though diversity brings stimulation, challenge, and energy, it can also lead to conflict. The manager must create an environment in which differences are appreciated and a team of diverse individuals can work productively together. Diversity awareness training programs can reduce conflict by bringing these differences out in the open and identifying the unique talents of diverse individuals.

Although most people think conflict should be avoided, management experts note that conflict can actually enhance team performance. The key to dealing with conflict is making sure the team experiences the right kind of conflict. Cognitive conflict focuses on problem-related differences of opinion; reconciling these differences strongly improves team performance. With cognitive conflict, team members disagree because their different experiences and expertise lead them to different views of the problem and its solutions. Cognitive conflict is also characterized by a willingness to examine, compare, and reconcile differences to produce the best-possible solution.

By contrast, affective conflict refers to the emotional reactions that can occur when disagreements become personal rather than professional, and these differences strongly decrease team performance. Because affective conflict often results in hostility, anger, resentment, distrust, cynicism, and apathy, it can make people uncomfortable, cause them to withdraw, decrease their commitment to a team, lower the satisfaction of team members, and decrease team cohesiveness. Unlike cognitive conflict, affective conflict undermines team performance by preventing teams from engaging in activities that are critical to team effectiveness.

What can managers do to manage team conflict—and even make it work for them? Perhaps the team leader's most important contribution to conflict resolution can be facilitating good communication so that teammates respect each other and are free to disagree with each other. Ongoing, effective communication ensures that team members perceive each other accurately, understand what is expected of them, and obtain the information they need. Taking this a step further, organizations should evaluate situations or conditions in the workplace that might be causing conflict. Solving a single conflict isn't helpful if there are problems systemic to the team or to the company. Team-building exercises, listening exercises, and role-playing can help employees learn to become better team members.¹³

The Importance of Effective Communication

No matter how well the rest of an organization operates, few businesses can succeed without effective communication, the meaningful exchange of information through messages. Toyota Motor Corp. became embroiled in miscommunication when it tried to establish a clear timeline for the reporting of the number of its vehicles that were affected by unintended acceleration worldwide. While the National Highway Traffic Safety Administration (NHTSA) investigated, Toyota continued the recalls over a period of several years, reaching a total of more than 8 million total vehicles. By the time the NHTSA closed its investigation, Toyota had been ordered to pay more than $66 million for not notifying the agency in a timely manner on the acceleration issues and was fined an additional $17 million for not telling the agency about a floormat issue in a separate recall of Lexus vehicles.¹⁴

Managers spend about 80 percent of their time—6 hours and 24 minutes of every 8-hour day—in direct communication with others, whether on the telephone, in meetings, via e-mail, or in individual conversations. Company recruiters consistently rate effective communication, such as listening, conversing, and giving feedback, as the most important skill they look for when hiring new employees.

THE PROCESS OF COMMUNICATION

Every communication follows a step-by-step process that involves interactions among six elements: sender, message, channel, audience, feedback, and context. This process is illustrated in FIGURE 9.3.

In the first step, the sender composes the message and sends it through a communication carrier, or channel. Encoding a message means that the sender crafts its meaning in understandable terms and in a form that allows transmission through a chosen channel. The sender can communicate a particular message through many different channels, including face-to-face conversations, phone calls, and e-mail or texting. A promotional message to the firm's customers may be communicated through such forms as radio and television ads, billboards, magazines and newspapers, sales presentations, and social media such as Facebook and Twitter. The audience consists of the person or persons who receive the message. In decoding, the receiver of the message interprets its meaning. Feedback from the audience—in response to the sender's communication—helps the sender determine whether the audience has correctly interpreted the intended meaning of the message.

Every communication takes place in some sort of situational or cultural context. The context can exert a powerful influence on how well the process works. A conversation between two people in a quiet office, for example, may be a very different experience from the same conversation held at a noisy party. And words have different meanings in different cultures. An American who orders chips in an English tavern will receive French fries.

Anthropologists classify cultures as low context or high context. Communication in low-context cultures such as Switzerland, Austria, Germany, and the United States tends to rely on explicit written and verbal messages. In contrast, communication in high-context cultures—such as those of Japan, Latin America, and India—depends not only on the message itself but also on the conditions that surround it, including nonverbal cues, past and present experiences, and personal relationships among the parties. Westerners must carefully temper their low-context style to the expectations of colleagues and clients from high-context countries. Although Americans tend to favor direct interactions and want to “get down to business” soon after shaking hands or sitting down to a business dinner, businesspeople in Mexico and Asian countries prefer to become acquainted before discussing details. When conducting business in these cultures, wise visitors allow time for relaxed meals during which business-related topics are avoided.

Senders must pay attention to audience feedback, even requesting it if none is forthcoming, because this response clarifies whether the communication has conveyed the intended message. Feedback can indicate whether the receiver heard the message and was able to decode it accurately. Even when the receiver tries to understand, the communication may fail if the message contained jargon or ambiguous words.

Noise during the communication process is any type of interference that affects the transmission of messages and feedback. Noise can result from simple physical factors, such as poor reception of a cell phone message or static that drowns out a radio commercial. It can also be caused by more complex differences in people's attitudes and perceptions. Consequently, even when people are exposed to the same communications, they can end up with very different perceptions and understandings because of communication noise.

Basic Forms of Communication

Managers and co-workers communicate in many different ways—by making a phone call, sending an e-mail, holding a staff meeting, or chatting in the hallway. They also communicate with facial expressions, gestures, and other body language. Subtle variations can significantly influence the reception of a message. As TABLE 9.2 points out, communication takes various forms: oral and written, formal and informal, and nonverbal.

ORAL COMMUNICATION

Managers spend much time engaged in oral communication, both in person and on the phone. Some people prefer to communicate this way, believing that oral channels convey messages more accurately. Face-to-face oral communication allows people to combine words with such cues as facial expressions and tone of voice. Oral communication over the telephone lacks visual cues, but it does allow people to hear the tone of voice and creates an opportunity to provide immediate feedback by asking questions or restating the message. Because of its immediacy, oral communication has drawbacks. If one person is agitated or nervous during a conversation, noise enters the communication process. A hurried manager might brush off an employee who has an important message to deliver. A frustrated employee might feel compelled to fire a harsh retort at an unsupportive supervisor instead of thinking before responding.

In any medium, a vital component of oral communication is listening—receiving a message and interpreting its genuine meaning by accurately grasping the facts and feelings conveyed. Although listening may be the most important communication skill, most of us don't use it enough—or as well as we should.

Listening may seem easy because the listener appears to make no effort. But the average person talks at a rate of roughly 150 words per minute, while the brain can handle up to 400 words per minute. This gap can lead to listener boredom, inattention, and misinterpretation. In fact, immediately after listening to a message, the average person can recall only half of it. After several days, the proportion of a message that a listener can recall falls to 25 percent or less.

Certain types of listening behaviors are common in both business and personal interactions:

• Cynical or defensive listening. Occurs when the receiver of a message feels the sender is trying to gain some advantage from the communication.
• Offensive listening. Receiver tries to catch the speaker in a mistake or contradiction.
• Polite listening. Receiver listens to be polite rather than to contribute to communication. Polite listeners are usually inattentive and spend their time rehearsing what they want to say when the speaker finishes.
• Active listening. Receiver is involved with the information and shows empathy for the speaker's situation. In both business and personal life, active listening is the basis for effective communication.

Learning how to be an active listener is an especially important goal for business leaders because effective communication is essential to their role. Listening is hard work, but it pays off with increased learning, better interpersonal relationships, and greater influence.

WRITTEN COMMUNICATION

Channels for written communication include reports, letters, memos, online discussion boards and social media, e-mails, and text messages. Many of these channels permit only delayed feedback and create a record of the message. It is important for the sender of a written communication to prepare the message carefully and review it to avoid misunderstandings—particularly before pressing that “send” button.

Effective written communication reflects its audience, the channel carrying the message, and the appropriate degree of formality. When writing a formal business document such as a complex marketing research report, a manager must plan in advance and carefully construct the document. The process of writing a formal document involves planning, research, organization, composition and design, and revision. Written communication via e-mail may call for a less-formal writing style, including short sentences, phrases, and lists.

E-mail is an effective communication channel for delivering straightforward messages and information. But e-mail's perceived effectiveness also leads to one of its biggest drawbacks: too much e-mail! Many workers find their valuable time being consumed with e-mail. To relieve this burden and leave more time for performing the most important aspects of the job, some companies are looking into ways to reduce the time employees spend sending and reading e-mail. To fulfill this need, some firms provide e-mail management services. DakotaPro.biz provides customized e-mail solutions for firms that struggle to keep up with the volume of e-mail they receive and the time it takes to operate an in-house server.¹⁵

Security and retention present other e-mail concerns. Because e-mail messages are often informal, senders occasionally forget they're creating a written record. Even if the recipient deletes an e-mail message, other copies exist on company e-mail servers. Such e-mails can be used as evidence in lawsuits or disciplinary actions.

FORMAL COMMUNICATION

A formal communication channel carries messages that flow within the chain-of-command structure defined by an organization. The most familiar channel, downward communication, carries messages from someone senior in the organization to subordinates. Managers may communicate downward by sending employees e-mail messages, presiding at department meetings, distributing policy manuals, posting notices on bulletin boards, and reporting news in company newsletters. The most important factor in formal communication is to be open and honest. “Spinning” bad news to make it look better almost always backfires. In a work environment characterized by open communication, employees feel free to express opinions, offer suggestions, and even voice complaints. Research has shown that open communication has the following seven characteristics:

1. Employees are valued. Employees are happier and more motivated when they feel they are valued and their opinions are heard.
2. A high level of trust exists. Telling the truth maintains a high level of trust, forming a foundation for open communication and employee motivation and retention.
3. Conflict is invited and resolved positively. Without conflict, innovation and creativity are stifled.
4. Creative dissent is welcomed. By expressing unique ideas, employees feel they have contributed to the organization and improved performance.
5. Employee input is solicited. The key to any organization's success is input from employees, which establishes a sense of involvement and improves working relations.
6. Employees are well informed. Employees are kept informed about what is happening within the organization.
7. Feedback is ongoing. Both positive and negative feedback are ongoing and are provided in a manner that builds relationships rather than assigns blame.¹⁶

Many firms also define formal channels for upward communications, encouraging communication from employees to supervisors and upward to leadership. Some examples of upward communication channels are employee surveys, suggestion boxes, and systems that allow employees to propose ideas for new products or voice complaints. Upward communication is also necessary for managers to evaluate the effectiveness of downward communication. FIGURE 9.4 illustrates the forms of organizational communication, both formal and informal.

INFORMAL COMMUNICATION

Informal communication channels carry messages outside formally authorized channels within an organization's hierarchy. A familiar example of an informal channel is the grapevine, an internal channel that carries information from unofficial sources. All organizations, large or small, have grapevines. Grapevines disseminate information with speed and economy and are surprisingly reliable. But company communications must be managed effectively so that the grapevine is not the main source of information.

When properly nurtured, the grapevine can help managers get a feel for employee morale, understand what employees are thinking about, and evaluate the effectiveness of formal communications. Managers can improve the quality of information circulating through the company grapevine by sharing what they know, even if it is preliminary or partial information. By feeding information to selected people, smart leaders can harness the power of the grapevine.

But the grapevine is also a chief carrier of gossip. And because gossip can spread misinformation quickly—particularly if it reaches the Internet—a manager should deal directly with gossip to attempt to maintain the grapevine as a legitimate source of information.

More than ever before, as organizations become more decentralized and globally dispersed, informal communication provides an important source of information, through e-mail, texting, and social media.

NONVERBAL COMMUNICATION

So far, this section has considered different forms of verbal communication, or communication that conveys meaning through words. Equally important is nonverbal communication, which transmits messages through actions and behaviors. Gestures, posture, eye contact, tone and volume of voice, and even clothing choices are all nonverbal actions that become communication cues. Nonverbal cues can have a far greater impact on communications than many people realize. In fact, an estimated 70 percent of interpersonal communication is conveyed through nonverbal cues. Top salespeople are particularly adept at reading and using these cues. For example, they practice “mirroring” a customer's gestures and body language in order to indicate agreement.¹⁷

Even personal space—the physical distance between people engaging in communication—can convey powerful messages. FIGURE 9.5 shows a continuum of personal space and social interaction with four zones: intimate, personal, social, and public. In the United States, most business conversations occur within the social zone, roughly from 4 to 12 feet apart. If one person tries to approach closer than that, the other individual will likely feel uncomfortable or even threatened.

Interpreting nonverbal cues can be especially challenging for people with different cultural backgrounds. Concepts of appropriate personal space differ dramatically throughout most of the world. Latin Americans conduct business discussions in positions that most Americans and northern Europeans would find uncomfortably close. Americans often back away to preserve their personal space, a gesture that Latin Americans perceive as a sign of unfriendliness. To protect their personal space, some Americans separate themselves across desks or tables from their Latin American counterparts—at the risk of challenging their colleagues to maneuver around those obstacles to reduce the uncomfortable distance.

People send nonverbal messages even when they consciously try to avoid doing so. Sometimes nonverbal cues convey a person's true attitudes and thoughts, which may differ from spoken meanings. Generally, when verbal and nonverbal cues conflict, receivers of the communication tend to believe the nonverbal content. This is why firms seeking to hire people with good attitudes and a team orientation closely watch nonverbal behavior during job interviews in which job applicants participate in group sessions with other job candidates applying for the same job. If in those group interviews an applicant frowns or looks discouraged when a competing candidate gives a good answer, that nonverbal behavior suggests that this person may not be strongly team oriented.

EXTERNAL COMMUNICATION

External communication is a meaningful exchange of information through messages transmitted between an organization and its major audiences, such as customers, suppliers, other firms, the general public, the media, and government officials. Businesses use external communication for many purposes:

• To keep their operations functioning
• To maintain their position in the marketplace
• To preserve their corporate reputation
• To build customer relationships

Using external communication, organizations provide information on such topics as product modifications and price changes. Every communication with customers—including sales presentations and advertisements—should create goodwill and contribute to customer satisfaction. For example, SC Johnson uses its annual report, its Web site, press releases, product packaging, and even the phone to communicate good news about the company. Letting the public know about the firm's new initiatives for environmentally friendly processes, community projects, and other socially responsible activities is an important function of external communication.

NOTES

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2. Company Web site, http://www.andassoc.com, accessed April 30, 2013; Su Clauson-Wicker, “Warm Hearth CEO Ferne Moschella: Seeing the Trees & the Forest,” Ampersand 24, no. 1, http://www.andassoc.com, accessed April 30, 2013.

3. Retirement Community Web site, http://www.lvbh.org, accessed May 15, 2013; David Farrell, “Empowerment Is Foundational to Success: Herzberg and the Green House Model,” The Green House Project Blog, March 11, 2013, http://blog.thegreenhouse-project.org.

4. Organization Web site, http://www.nceo.org, accessed April 30, 2013.

5. Association Web site, http://www.esopassociation.org, accessed April 30, 2013.

6. Organization Web site, http://www.nceo.org, accessed April 30, 2013.

7. Organization Web site, “Employee Ownership as a Retirement Plan,” http://www.nceo.org, accessed April 30, 2013.

8. Organization Web site, “Employee Stock Options Fact Sheet,” http://www.nceo.org, accessed April 30, 2013.

9. Ibid.

10. Company Web site, https://secure.toyota.com/safety/smart-team/videos/rapid-response-smart-team.html, accessed April 30, 2013.

11. Company Web site, “Whole Foods Market's Core Values,” http://www.wholefoodsmarket.com, accessed April 30, 2013.

12. Company Web site, http://ceochef.com, accessed April 30, 2013.

13. Tara Duggan, “Leadership vs. Conflict Resolution,” Chron.com, http://smallbusiness.chron.com, accessed April 30, 2013.

14. Mike Ramsey, “Toyota in $1.1 Billion Gas-Pedal Settlement,” The Wall Street Journal, December 27, 2012, http://online.wsj.com; Christopher Jensen, “Toyota Recalls Nearly 700,000 Vehicles for Potential Brake Light and Air-Bag Failures,” New York Times, March 9, 2012, http://www.nytimescom.

15. Company Web site, “Why Outsource Email?” http://www.dakotapro.biz, accessed April 30, 2013.

16. “Expand Trust in Your Organization,” Peter Stark.com, http://www.peterstark.com, accessed April 30, 2013.

17. John Boe, “How to Read Your Prospect like a Book!” John Boe International, http://johnboe.com, accessed April 30, 2013.