SEY0000000259_IPM4_COL_240x185_PB_B[1-246] (ID 194138)

Introductory Personnel Management N4 2
To determine when delegation is most appropriate in the organisation,
managers must ask these five key questions:
•• Is there someone else who has (or can be given) the necessary

information or expertise to complete the task? Is this a task that someone
else can do? Or is it critical to do yourself?
•• Does the task provide an opportunity to grow and develop an employee’s
skills?
•• Is this a task that will recur, in a
similar form, in the future?
•• Do you have enough time to
delegate the job effectively? Time
must be available for adequate
training, for questions and answers,
for opportunities to check progress,
and for rework if that is necessary.
•• Is this a task that I should delegate?
Tasks critical for long-term success
genuinely do need your attention.
If a manager can answer yes on any of the above questions, they should
strongly consider delegating the said task to an employee.
There are six steps to effective delegation in the workplace. These steps must
be followed closely to ensure that effective delegation takes place, and that the
task delegated is completed successfully. These six steps are summarised in the
figure below:

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Module 2: The Enterprise as an organisation

Figure 004. Steps to effective delegation in the workplace.
The authority and delegation power of a manager will depend on the span of
control relevant in their department.

Definition
Span of control is defined as ‘the number of subordinates that reports
directly to a specific manager or supervisor’.

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All the employees that report to a specific manager or fall within his department,
fall within his span of control. This means that the manager has the power and
authority to delegate, control, instruct and discipline employees within his span
of control. This is a necessary process in organisations in order to ensure that
productivity is optimal, control is adequate and profitability is maximised.

A manager has direct control over all the employees within their span of
control. The number of employees in the manager’s span of control, varies with
the type of work that has to be done. A suitable span of control will depend
upon a number of factors:
•• The experience and personality of the manager.
•• The nature of the business – if the manager believes in close supervision,

then a narrow span of control might be necessary.
•• The skills and attitudes of the employees – highly skilled, professional

employees might flourish in a business adopting a wide span of control.
•• The tradition and culture of the organisation – a business with a

democratic management style and empowered workers may require a
wide span of control.

Table 017. Types of span of control Description
Span of control
• In a narrow span of control,
Narrow span of control the manager has a few
subordinates reporting
directly to them.

• This span of control leads to
a tall hierarchical structure.

• It is more expensive and
difficult to control than a
wider span of control.

• There are greater
communication problems
between the many different
levels of management.

• There are more
opportunities for employee
growth in the organisation.

• The less motivated and
confident the employees,
the better it is to have a
narrow span of control.

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Module 2: The Enterprise as an organisation

Wide span of control • A single manager has
control over a large group
of employees that report
directly to them.

• This span of control leads
to a wide hierarchical
structure.

• This structure is best
suited when employees
are not widely scattered
geographically.

• The more efficient and
organised the manager, the
better it is to have a wide
span of control.

• The more standardised the
nature of the work, the
better it is to have a wide
span of control.

Individual activity 2 H

Answer the following questions in your workbook:
(a) Differentiate between authority, delegation and span of control.
(b) Why is it important for a manager to have authority over their employees?
(c) Why is it necessary for managers to delegate some of their tasks?
(d) Discuss the six steps of effective delegation.
(e) Explain the difference between a wide and a narrow span of control.

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Individual reflection 2

In your workbook, after you have completed this module, reflect on the
following questions:
(a) Which part of this module did you most enjoy? Why?
(b) Which part did you find most challenging? Why?
(c) What was have you learned from this module?
(d) On a scale from 1 to 10 (1 being the lowest and 10 being the highest),

score your level of comfort and understanding of this module.
(e) If your score was below 5, what would you do to improve your

understanding of this module?
(f) If your score was above 5, what would you do to improve your learning

even further?

2.5 Conclusion

This module comprehensively covered the business environment and all
other related concepts in South Africa. It started off with a detailed discussion
on business related concepts, forms of enterprises and the aims of the
organisation. The activation of the enterprise and the role of the entrepreneur,
people, technology and processes in the activation of the enterprise, was
also discussed. Organisational structures, specifically the line and functional
organisations structure, and the importance of these structures in the
organisation, have been elaborated upon. Lastly, the organisational design
methods were discussed, in particular division of labour, specialisation,
authority, delegation and span of control.

2.6 Module Summary

See Figure 2. Module 2 – Structure

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Module 2: The Enterprise as an organisation

Homework Assessment 2

(a) Identify whether the following statements are true or false by making a
cross in the relevant box:

Statement True False
1. An organisation’s main aim is to make a profit.

2. A sole proprietor is a contract between two or
more parties involved.

3. The line structure includes a clear reporting line
in an organisation.

4. Specialisation is a form of division of labour.

5. A wide span of control refers to a small number of
employees reporting to one manager.

(5 x 2) [10]
(b) Define the following concepts as clearly as possible:

1. Resources (2)

2. Markets (2)

3. Prices (2)

4. Profit (2)

5. Demand (2)

6. Supply (2)

7. Competition (2)

8. Delegation (2)

9. Technology (2)

10. Authority (2)

[20]

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(c) Read the questions carefully and then answer it as comprehensively as
you can:

1. Differentiate (between) the different forms of ownership (in a table)
(15)

2. Explain the role of the following elements in the activation of an
enterprise:

2.1 Entrepreneur (3)
2.2 People (3)
2.3 Technology (3)
2.4 Processes (3)

3. Describe the aims of an organisation. (5)

4. Illustrate the difference between the two types of organisational 2
structures. (8)

5. Briefly describe the influence of the external environment on the

organisation. (5)

6. Explain division of labour by making use of a relevant example. (5)

7. Discuss the meaning of specialisation and list the advantages

and disadvantages. (10)

8. List the six steps in effective delegation in the organisation. (6)

9. Explain the two types of span of control in your own words. (4)

(70)

Total: [100]

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Module 3: The Human being as employee in the enterprise

The human being

3 as employee in the
enterprise

Learning objectives

After studying this module students should be able to:

•• Explain the following terms briefly in your own words: Motivation,
psychology, expectations, abilities and traits, qualifications,
performance, goals, self-esteem, attitudes and potential

•• Describe the following aspects briefly in your own words:
♦♦ What motivates people to do things.
♦♦ How staff can be motivated to work hard.
♦♦ Why frustration and conflict occur in the work situation.
♦♦ The influence of the working environment on job satisfaction.
♦♦ Why people learn.
♦♦ How people learn.

•• Describe in a pragmatic manner the meaning of the personality of an
individual.

•• (Explain) the nature of individual differences (briefly).
•• Describe the meaning of interpersonal relations.
•• Explain what is meant by a group referring briefly to group

characteristics.
•• Differentiate between formal and informal groups.
•• Describe the benefits of group work in the workplace.
•• Describe briefly problems which can be experienced with groups and

within groups in the workplace.

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Introductory Personnel Management N4

•• Explain what is meant by leadership. 3
•• Discuss why there is a need for leadership in organisations.
•• Explain what is meant by upward, downward and horizontal

communication in organisations.
•• Differentiate between formal and informal communication channels.
•• Explain briefly the importance of effective communication in an

organisation.
•• Meanings and definitions

♦♦ Define the following terms briefly in your own words: career,
career expectations and career path.

♦♦ Distinguish between training, development and career
management.

•• Explain the meaning and importance of career development and its
aim in the organisation.

•• Discuss career-planning referring also to the following steps in
developing a career plan:

♦♦ Take charge

♦♦ Examine your career aspirations

♦♦ Take inventory of career assets and liabilities

♦♦ Set career objectives

♦♦ Packaging qualifications

♦♦ Research the job market

♦♦ Monitor your career
•• Define self-development and discuss the joint employer-employee

responsibility for meeting goals set by both.

This module is structured in the following way:

Unit 3.1 The behaviour Unit 3.2 Interpersonal Unit 3.3 Career
of individuals and and organisational development
groups communication
•Meanings and
•Human behaviour •Upward, downward definitions
•Individual behaviour and horizontal •Career planning and
•Group behaviour communication development
•Formal and informal •Self-development
communication
channels

•Importance of
effective
communication

Figure 005. Module 3 – Structure

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People are at the centre of any organisation’s day-to-day activities. In Module 1
and 2, the importance of people as the organisation’s biggest asset has already
been highlighted. It is thus evident that the people employed by the
organisation can make or break its success.

People are influenced by the internal
and external environment of the
organisation. The external environment
has a particular impact in the person’s
personal and family life. Any changes
in the external environment will have a
ripple effect on the personal and work-
life of people.

Aspiring human resources professionals
must focus on the behaviour of people and the reasoning behind their
behaviour, especially if it could impact the productivity of an organisation.
This can only be managed through proper communication. Communication is
key in the relationship between organisations and its people. Without proper
communication, employees will not know what is expected of them or whether
they are still on track.

Human resources professionals therefore have a huge responsibility towards
the organisation and the employees to ensure harmony, productivity and
morale in the workplace. It is up to them to manage employees effectively to
be as productive and efficient as possible in order for the organisation to reach
objectives and goals.

People are motivated to work and perform by different things. Human
resources professionals must determine what these motivators are be
it incentives, bonuses, training and development or promotions. Career
development is also key to ensure that the right people inside the organisation
are trained to take over positions in future, to ensure continuous productivity
and performance of the organisation.

Example: Thapelo and his wife only recently bought a house and a new
car. They were very excited about his new found wealth, until Mr Nene,
the previous minister of finance, announced a hike in the interest rate.
This means that their monthly instalment on the house and the car
would increase, putting more strain on their already tight budget. To
make things worse, Thapelo’s wife just announced that she is pregnant
again with their third child.

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The company she works for does not provide maternity leave, so for
four months, they will have to live off a single income. Thapelo is feeling
the pressure to provide and take care of his young family. He is stressed
and anxious. This is evident in his work ethic, performance and focus at
work. Thapelo’s manager calls him into his office to talk about the recent
decline in his work performance.

Group activity 3 A

Discuss the following questions in your group:
(a) List all the things that are currently going wrong in Thapelo’s life.
(b) Why do these things make him stressed/anxious?
(c) Would this have an impact on his work performance? Substantiate your

answer.
(d) What could Thapelo do to manage his personal situation so that it does

not influence his work performance?
(e) Why is human behaviour important in the organisation?
(f) What impact does human behaviour have on the organisation?
(g) Why is communication important in the workplace and in managing

human behaviour?
(h) What do you think is career development?
(i) Why is do you think career development is important?

3.1 The behaviour of individuals and groups

The behaviour of individuals and groups in the workplace is volatile. Depending
on triggers from the internal and external environment, the behaviour of
employees and groups within the workplace have an impact on the overall
productivity, profitability and success of the organisation.

Definition
Behaviour is defined as ‘the way in which a person acts or conducts
oneself, especially towards others, a specific situation or stimulus’.

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Module 3: The Human being as employee in the enterprise
An important distinction should be made between human behaviour, individual
behaviour and group behaviour in the workplace.

3.1.1 Human behaviour

In order to understand human behaviour, it is essential to first understand
certain basic terms, concepts and aspects. These will form the basis for the rest
of this module.

1. Motivation

Definition
Motivation is defined as ‘the reason why an individual does something or
behaves in a certain way’.

Motivation drives people. It directs their actions, behaviour, thoughts and
habits. It is the desire to do things which further drives goal setting and
attaining. It is therefore an internal process that makes a person move forward
towards a goal. Motivation is also an impulse that causes a person to act in a
certain way. Motivation, just like intelligence, can’t
be observed directly, but is evident in a person’s
behaviour.

Example: Joshua goes to work everyday because
he needs the income to support his family. this
need for income or to provide for his family is
seen as his motivation to work.

From the above example, it is apparent that most
people that go to work every day are motivated by the need for an income or
to provide for their families.

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However, not everyone is motivated by money. People will be motivated by
something that will help them satisfy a need and want. In order to meet this
goal, a person will have to act. So, what exactly motivates people?

Table 018. Two main types of motivation

People are motivated by their intrinsic and extrinsic needs and wants, which
may be completely different from the needs and wants of their colleagues,
friends and family members. In Module 1, we touched on one of the key
theories on motivation, which complements
the model of intrinsic and extrinsic
motivation. Maslow’s hierarchy of needs was
used to explain the different levels of needs
and wants of people. The principle of
Maslow’s theory revolves around the notion
that people will not be motivated by a next
level of needs, be it intrinsic of extrinsic, if
the previous one has not yet been met.
Consider the following scenario:

Example: Ayanda needs water,
food, shelter, sleep, and air to live (
Physiological needs). Most of these needs are met, as he is staying
with his parents who are supporting him financially until he gets a
job. Physiological needs therefore no longer motivate him. His is now
motivated to achieve the next need, which is that of employment
(security needs). Only once he gets employment, will he be motivated by
the next level of needs.

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From the example above, Maslow’s Hierarchy is evident in that Ayanda could
not move to the next level of needs until the lower one has been met. He will
be motivated by the need that is not yet met, based on Maslow’s Hierarchy of
Needs. The bottom three levels of needs correspond with extrinsic motivators,
where the motivation occurs outside of the body (such as a need for food,
clothing, a job, friendship). The top two levels of this hierarchy correspond with
intrinsic motivators, which occurs within the person (self-esteem, respect, and
self-actualisation). In Personnel Management N6, Maslow’s Hierarchy of Needs
and other motivational theories will be discussed in more detail.

Remember, people will be motivated by different things, based on their
intrinsic and extrinsic needs and wants at the time. Some of the things that
could motivate people at work include some of the following:
•• Employees are motivated to work because they want to earn a salary to

support their families.
•• Earning a higher position with a higher salary, corner office and company

car.
•• Earning incentives, bonus or cash rewards for work performance.
•• Seeing the fruits of their labour in the organisation.
•• Being appreciated for their input into the organisation.
•• Working on and completing hard projects successfully.
•• A sense of purpose in the workplace.
•• A sense of autonomy and responsibility.
•• Having a sense of belonging in the workplace.
•• Being part of a productive and supporting work team.
•• Getting recognition for good work performance.

Individual activity 3 A

Consider the things that could motivate people at work (in the paragraph
above):
(a) Identify which of those needs are intrinsic by nature.
(b) Identify which of those needs are extrinsic motivators?
(c) How do these motivators link up with Maslow’s Hierarchy of Needs?

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Human resources professionals must understand that workers’ motivation
is closely linked to their job satisfaction. If employees are not motivated,
they won’t be happy or satisfied on the job and therefore they might not
be productive in the workplace. If they are satisfied at work, they will
be motivated to work hard, put in the extra hours and be productive.
Organisations must therefore have a clear understanding of employee
needs and wants in order to properly motivate them to be productive in the
workplace.

Organisations can motivate their employees to work harder and more
productive in the following ways:
•• Implement an open-door policy to encourage employees to communicate

with managers.
•• Provide employees with praise and recognition when deserved.
•• Help employees fulfil their career goals.
•• Provide employees with training and development opportunities.
•• Keep employees informed on what is happening in the organisation.
•• Build ownership amongst your employees.
•• Trust employees to do their jobs

without supervision.
•• Treat employees with respect and

dignity.
•• Support employee creativity and

ideas in the workplace.
•• Provide employees with challenging

and interesting work to avoid
boredom.
•• Listen to employee suggestions, concerns and problems and help them
find solutions.
•• Set an example and be a leader worth following in the workplace.

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Group activity 3 B

Discuss the following questions in your group:
(a) Brainstorm and make a list of all the things that motivate you to work

hard in your studies.
(b) Classify these things under intrinsic and extrinsic motivators.
(c) Explain how you think your lecturer can motivate you to perform even

better in your studies?

2. Psychology

Definition

Psychology is defined as ‘an academic discipline and applied science which
studies the mind and behaviour of people’.

People are all different. They have different personalities, different behaviours,
different thinking patterns, different motivators and different drivers. Their
different emotions, cultures, education and
experiences all shape their perspectives and
how they see the world around them. Their
behaviour and attitude in the workplace will
therefore also be dependent on these
individual differences.

Human resources professionals need to

pay particular attention to the psychology Source: http://www.glasbergen.
of people - how their differences can com/?count=12&s=stress
be exploited to serve the needs of the

organisation better. Psychology is a study of

these behaviours and differences of people and is an essential part of the skills

and knowledge of any manager, especially Human resources professionals, in

the workplace. Through the understanding of psychology, human resources

professionals can understand and explain how employees think, act and feel,

as well as how this will impact the overall productivity and success of the

organisation.

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3. Expectations

Definition

Expectation is defined as ‘the belief that something will happen or is likely
to happen’.

Employee expectations in the workplace is a very important consideration 3
for overall organisational success. These expectations refer to the employee’s
perception of what the organisation can or should do for them, just as much as
the expectation that management has of employee performance.

Remember, when an organisation hires employees, they expect them to
have the skills, knowledge and experience to do the job and that they will be
loyal and on time for work every day. Employees, on the other hand, expect
payment from the organisation for their time, skills and efforts that they have
put into the productivity in the organisation.

The behaviour of employees in the workplace is mostly dependent on and
motivated by their expectations. Employees want to be equitably and fairly
rewarded for their efforts, compared to their colleagues, be it in money,
incentives, public recognition or awards. They want to receive training and
development and advancement opportunities. They expect the organisation to
adhere to labour legislation in terms of breaks, rest periods and leave.

They expect to be respected, communicated to, to be given feedback and
to be allowed the opportunity to do their work to the best of their abilities.
If the working environment and all related elements meet the expectations
of employees, they will most likely be satisfied on the job. And if they are
satisfied, they will be more productive and efficient in the workplace. If these
expectations are not met, employees become disappointed, discouraged
and demotivated, which could have a detrimental effect on organisational
productivity and profitability.

Source: http://mimiandeunice.com/2011/07/19/expectations/

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Individual activity 3 B

In your workbook, answer the following questions:
(a) What is your expectation of the college where you are busy acquiring

your qualification?
(b) Do you have any expectations of yourself in terms of performance in

your studies?
(c) Are these expectations realistic? Explain your answer.

4. Abilities and traits

Definitions
Abilities is defined as ‘all the things that an individual can do; being able to
do something’.
Traits is defined as ‘a particular quality or characteristic in an individual’s
personality’.

The abilities and traits of employees
are what makes them one of the most
important assets in the organisation.
They need to be able to do the work
they are hired for, as well as have the
personality traits to do it well. Abilities
therefore determine what employees
can do, whereas traits are all those
individual characteristics which makes them and their behaviour unique. The
abilities and traits that are required for the successful completion of a job, is
included in the job description. Human resources professionals must look for
this job description during the recruitment and selection phase to ensure that
the employees that are hired have the right combination of abilities, traits and
knowledge to be successful in the job.

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Example: A person‘s ability will determine the type of job that he or
she will be able to do. An accountant needs to be able to work with
numbers, budgets and money. A doctor must be able to perform
operations, diagnose and treat illnesses and act in the medical
emergencies.
The traits will have an impact on the type of work the person is
suitable for, based on their personalities. Accountants must be accurate,
meticulous and honest, whereas doctors must be calm under pressure,
have a love for people. A person must have the right personality to be
successful in certain positions. If these traits are not present, the ability
to do the job will not necessarily mean the person will be successful in
the position.

Group activity 3 C

In groups of four to five students, brainstorm the following two aspects to
discuss in class:
(a) What do you think are the most important abilities that an HR

professional should have?
(b) Which personality traits are required for successful HR Professionals?
(c) Draw two separate mind-maps depicting the above answers for

discussion in class.

5. Qualifications

Definition
Qualification is defined as ‘an examination that a person has passed or a
course of study that they have successfully completed’.

Qualifications refer to any acknowledged academic or technical studies of an
employee that will be taken into account when he or she applies for a specific
job. It can be a formal qualification such as a degree, or a certificate or diploma
from a recognised institution.

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The qualifications of employees are very important for organisations.
Employees must have the required education (qualifications) and skills
necessary to fulfil the requirements of the
job. This is especially relevant in skilled
trades, such as accountants, doctors, lawyers
and most management levels. Employees at
higher levels in the organisation require
higher levels of education (qualifications),
compared to entry level employees. An
employee must therefore be qualified to do
the job.

Example: Most entry level positions,
like operators or cleaners, will require
a low level of qualification, depending on organisational requirements.
This could either be or below Grade 12 or at least Grade 12, as these
workers will not be required to do academically challenging work.
Management employees, like CEO or directors, need high levels of
education, including degrees, honours degrees, master degrees or MBA
degrees, and must therefore be qualified to fulfil this high level position.

Individual activity 3 C

Answer the following questions in your workbook:
(a) Do some research as to the required qualification levels of HR

Professionals in the workplace, especially in South Africa. Make a note
of these requirements in your workbook.
(b) Do you feel that this level of education is necessary to be successful in
the HR field? Explain your answer.

6. Performance

Definition

Performance is defined as ‘how well or how badly an employee does
something in the workplace’.

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Performance refers to the actual achievement of employees in the workplaces,
especially when they do something well. The performance of employees is
usually measured against pre-approved standards as required by the job in the
job description. When an employee’s
work performance is high, he or she
is adding value to the organisation
and should therefore be rewarded for
their extra efforts. Employers
therefore expect their employees to
perform well in their respective
positions.

Poor work performance, or when
an employee is not performing
adequately, is reason for concern.
Human resources professionals
and line managers alike are responsible for ensuring that employees are as
productive as possible, leading to profitability in the workplace. If employees
are not performing in their respective jobs, they are not productive and
therefore the organisation will not be able to make a profit. When employees
are not performing as they should, it could have a detrimental effect on the
organisation.

Human resources professional can assist line Managers with employee
performance issues through the implementation of performance appraisals.
This refers to the measurement of the work performance of employees based
on the standards and requirements of the job on a regular basis throughout
the year. Employees that are performing well could be earmarked for a
promotion, performance bonuses or incentives. For those not performing that
well, Performance Improvement Plans could be drawn up, in order to provide
these employees with all the training, development and coaching needed to
better their on-the-job performance. High levels of employee performance is
necessary for the overall success of the organisation.

7. Goals

Definition

Goals is defined as ‘something observable and measurable that an
employee wants to achieve within a specific timeframe’.

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Source: http://woodconsultgroup.com/tag/fun-at-work/

If an employee wants to perform on the job based on the standards and
requirements of the position, they need to have certain goals in place. Goals
could be short term or long term based, depending on the requirements of
the position within the organisation. These goals, regardless of whether they
are short term or long term, must be based on the inherent requirements
of the job, and should follow the SMART principle: Goals must be specific,
measurable, attainable, relevant and timely.

In most cases, with a few exceptions,
employees are required to set their own
goals, with the guidance and support of
their line manager. These goals must be
agreed upon by both parties, as it could
affect the employee’s performance
appraisal and the performance of the
organisation in the future. Employee goals
should be aligned with departmental and
organisational goals to ensure that all parties move in the same direction. Goals
must be challenging yet possible to achieve in order to motivate and drive
employees to perform on the job. Feedback on the achievement of goals is
very important to ensure that the morale and motivation of workers are
maintained.

Example: Farren is an eager HR student who wants to do well in her
studies. She has set herself a goal, which follows the SMART principle:
• Specific: She wants to achieve a good pass rate for Introduction to

Personnel Management.
• Measurable: She wants to achieve at least 60% pass.
• Attainable: It is attainable, as her normal academic achievements is

well above 60%.

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• Relevant: Her goals are relevant and realistic. The higher her marks,
the higher the probability of qualifying and getting an internship.

• Timely: She wants to achieve this by the end of the semester.

Individual activity 3 D

Now it is your turn to set your own goals for your studies:
(a) Think about what you want to achieve in your studies.
(b) Create a goal for yourself.
(c) Write it down based on the SMART principle.
(d) Do you think this goal is achievable? Motivate your answer.

8. Self-esteem

Definition 3

Self-esteem is defined as ‘the confidence in one’s own worth or abilities:
self-respect’.

On Maslow’s Hierarchy of Needs, self-esteem

is the second-highest need of individuals,

before self-actualisation, where a person

reaches their full potential in life. Self-esteem

is therefore a very important determinant in

the success of employees in the workplace.

Employees with high self-esteem are more

likely to be happy and satisfied in the

Source: http://www.toonpool.com/ workplace, also making them more
cartoons/kid%20school%20self%20 productive and efficient. Employees with low
esteem_88864 self-esteem, on the other hand, may become

demotivated, unhappy and frustrated at work.

Good self-esteem is critical to the well-being of employees in the workplace.
Self-esteem affects a person’s behaviour, how they think and how they interact
with others. A person with high levels of self-esteem have the confidence to
think and cope with the daily challenges of life.

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They will also have the confidence in knowing that they have the right
to success and happiness. They will furthermore have the trust in their
thinking and judgement, will make better decisions and create a better
life for themselves. This will lead to more effective interpersonal and work
relationships and the ability to effectively contribute to the work environment
around them. A high level of self-esteem can therefore have an impact on how
employees operate, how they deal with other people and how much they
achieve in their careers.
Low levels of self-esteem, on the other hand, lead to fear of the new and
unknown, inappropriate behaviour, such as defensiveness, and overly
compliant or disobedient behaviour. Employees with low self-esteem tend to
engage in subconscious behaviours that undermine their own success in the
organisation, making them less likely to ask for and get promotions, raises or
employment. Low self-esteem therefore has negative consequences for both
the employee and the organisation.

Source: http://www.lifehack.org/articles/communication/30-things-tell-yourself-mirror-when-
you-lack-self-esteem.html

9. Attitudes

Definition
Attitudes is defined as ‘the way a person thinks and feels about something
or somebody, which also impacts the person’s behaviour towards others’.

A person’s attitude towards his job, his colleagues and his superiors will have
a big impact on his behaviour and performance in the workplace. Attitudes
refer to how an individual feels about his work and the workplace in general,
be it positive or negative. Negative attitudes of employees may lead to under-
performance and frustration in the workplace, which should be avoided, if at
all possible.

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Positive attitudes can only be advanced if there is proper communication,
conflict management and employee participation in decision-making.
The attitudes of employees in the workplace
have a huge effect on every individual in the
organisation, from the employees to the CEO.
Attitudes can help to develop the predominant
workplace environment that has an impact
on employee morale, productivity and team-
building abilities. Human resources professionals
must understand how positive and negative attitudes affect employees in the
workplace, in order to create a harmonious and productive workplace.

10. Potential

Definition
Potential is defined as ‘the possibility of an individual to be developed or
used to a greater extent in the organisation’.

An organisation needs employees with high potential to ensure future
productivity, success and profitability. These employees have the ability,
attitudes and knowledge to grow in more challenging positions, taking on
more responsibility and autonomy to ensure increased productivity and
efficiency in the workplace. Potential is future based in that it focuses on what
the employee will be capable of in the organisation, should he get the right
combination of training, coaching and mentoring.

Source: http://happiness-one-quote-time.blogspot.co.za/2012/09/6-am-wake-up-call.html

Some workers may show, from an early stage, that they have management
potential. This means that they already have the skills and knowledge, and if
they get the right exposure, training and guidance, they will be able to fulfil a
management role in the future.

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A worker that is not fulfilling his true potential, is normally also performing
below his or her ability. Management must be on the lookout for employees
with the required potential to fill future positions. This is especially important
for succession planning in the organisation, where management trains
employees with potential to take over key positions in the workplace as soon as
it becomes vacant. Identifying employees with high potential is thus essential
in ensuring continuity and competitiveness of the organisation in the future.

Individual activity 3 E

There are 10 important concepts hidden in the Word Search below. Look at
the clues below to identify these words, then search for them in the grid:

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Clues:
(a) The reason why an individual does something or behaves in a certain

way.
(b) The belief that something will happen or is likely to happen.
(c) All the things that an individual can do; being able to do something.
(d) A particular quality or characteristic in an individual’s personality.
(e) An examination that a person has passed or a course of study that they

have successfully completed.
(f) How well or how badly an employee does something in the workplace.
(g) Is something observable and measurable that an employee wants to

achieve within a specific time frame.
(h) The confidence in one’s own worth or abilities: self-respect.
(i) The way a person thinks and feels about something or somebody, which

also impacts the person’s behaviour towards others.
(j) The possibility of an individual to be developed or used to a greater

extent in the organisation

a) Aspects of human behaviour that also have to be considered
◊ Frustration and conflict in the workplace

Definitions
Frustration is defined as ‘the feeling of being upset or annoyed as a result
of being unable to change or achieve something’.
Conflict is defined as ‘a situation in which people or groups within an
organisation are involved in a serious disagreement or argument’.

Frustration and conflict are an inevitable part of
life, even more so in the workplace. Because
people are so different, not only in their
motivation or drivers, but also their goals,
personalities and opinions, conflict and
frustration are unavoidable.

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Workplace frustration can undermine the energy,
enthusiasm and performance of employees,
especially top performers in the organisation.
Frustrated employees are normally aligned with
company goals and objectives and are enthusiastic
about making a difference in the workplace, but
are held back by jobs that they are not suited for
or work environments that get in their way of
achieving this. The problem with this situation is
that these employees are very reluctant to voice
their frustrations or concerns to management.

They are highly committed to their jobs and do not want to complain about
their situations. Many frustrated employees therefore suffer in silence. When
employees are overly frustrated with their jobs or their work environment,
they are more inclined to eventually get involved in conflict situations with
colleagues and managers in order to relieve the tension they are experiencing.
Organisations can avoid frustrated, and consequently conflict prone employees
by ensuring that they regularly check-in with workers to provide them with
feedback or to hear about their concerns or frustrations. Allow workers to vent
if they have to, in a safe environment, to alleviate some of the tension that
they are experiencing.

Conflict relates to the negative feelings
experienced between employees in problematic
relationships, where feelings such as anxiety, fear,
anger, dislike and revulsion are evident. Conflict
between employees may arise from a
misunderstanding between them or poor
communication within a department. Although
conflict can be positive in the organisation, most
negative conflict can be avoided.

Some of the main causes of negative conflict include the lack of communication
between the organisation and employees, unmet expectations of both parties,
personal issues between co-workers, stress and frustration and generational or
personality incompatibilities. Conflict is therefore normally between employee
and employee or between employee and employer. No matter what the cause
of conflict, organisations can deal with it effectively in the workplace. If conflict
is left unresolved, it tends to get worse and spread over time, eventually
affecting everyone in the organisation.

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b) The influence of the working environment on employee job
satisfaction

Definition

Job satisfaction is defined as ‘how content or happy an employee is with
his or her job in the organisation; a feeling of fulfilment in a job’.

Organisations need happy and productive employees in order for the business
to make a profit or to compete in the market.

If employees are satisfied with their
jobs and the working environment
that they are working in, they
will work hard and do their best
to achieve the set out goals and
objectives. The satisfaction of
employees is driven by their
intrinsic and extrinsic motivators.
Intrinsic motivators that cause job
satisfaction includes interesting and
challenging work, using personal
skills to the full and finding
the work meaningful. Extrinsic
motivators such as rewards and
getting a salary, also includes
a safe, stable and comfortable working environment. Employees that are
not part of such an environment, are quickly discouraged, demotivated and
underperforming.

A positive working environment can be created by following these guidelines:
•• Treat every employee with respect, regardless of their level in the

organisation. Provide employees with growth opportunities through
training and development.
•• Adopt management styles that are collaborative, cooperative and
facilitative, instead of micro-managing, domineering or coercive.
•• Work on a company culture that is conducive to the environment in which
employees is most productive, satisfied and happy.

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c) How and why people learn

Definition
Learning is defined as ‘the acquisition of knowledge or skills through study,
experience or being taught’.

Adults learn for various reasons. Some adults learn to get qualified or gain
extra skills so that they can earn a higher salary or get employed in a good
job. Other adults learn for the sake of advancing their own knowledge and
understanding of the world and to achieve self-actualisation.
Adults are therefore only motivated to learn if they see the need for and
possible results of the learning process. The learning content must benefit
adult learners and they must believe that they will be able to use what they
have learned in their personal or working life. Adults learn best at their own
pace and when they can take part in the learning process.

Everyone learns in their own way. Some
learn by memorising information and
repeating it like a parrot would. Others
make use of colour or mind-maps or
figures. Some people learn by physically
doing, others listen to a lecture and
remember what was heard.

It is therefore evident that organisations
cannot just focus on classroom based
training and development if they really
want effective learning to take place.
Learning is a holistic process. It should encompass all the senses of the
individual. They should see it, hear it, taste it and feel it.

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Table 019. Seven learning styles that describe how adults learn

Learning styles Description

Visual learning • A person prefers using pictures, images, and three- 3
Aural learning dimensional understanding.
Verbal learning
Physical learning • This could include the use of colour, mind-maps or
Logical learning figures during the learning process.
Social learning
Solitary learning • They want to ‘see’ what they have to know before they
can learn.

• A person prefers using sound and music.

• This could include a student listening to classical music
while citing the work over and over again.

• They want to ‘hear’ what they have to know before they
can learn.

• A person prefers using words, both in speech and
writing.

• This could include using summaries/notes or conversing
with someone on the topics during the learning process.

• They want to ‘talk’ or communicate in written or spoken
format, before they can learn.

• A person prefers using his body, hands and sense of
touch.

• This could include actively getting involved in activities
or the process being taught.

• They want to get involved in the learning process by
actually ‘doing’ that which they have to learn

• A person prefers using logic, reasoning and systems.

• This could include a debate on certain topics where
people can look at all angles of the concept being
taught.

• They want to argue their point, work things out logically
in order to ‘understand’ what they have to learn.

• A person prefers to learn in groups or with other people.

• This could include working in groups or learning in pairs.

• They want people around them when they study so
they can bounce of their ideas and ‘discuss’ answers and
solutions with each other.

• A person prefers to work alone and use self-study.

• This could include individual reading or self-study
initiatives at a place other than the classroom.

• They want to be ‘alone’ while learning what they are
supposed to learn.

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Individual activity 3 F

Answer the following questions in your workbook:
(a) Differentiate between conflict and frustration in your own words.
(b) Why would frustration lead to conflict in the workplace?
(c) What can organisations do to alleviate frustration in the workplace?
(d) Is conflict always negative? Give reasons for your answer.
(e) What is job satisfaction?
(f) Why would the work environment have an influence on the employee’s

satisfaction?
(g) Explain in your own words how and why adults learn

3.1.2 Individual behaviour and individual differences

People are inherently different. Their different motivators and personalities
drive their behaviour. This behaviour differences are dependent on triggers
from the environment in which the person lives. It is very important for human
resources professionals to take individual behaviour and individual differences
into account when planning and directing employees in the workplace.

1. Personality
Definition

Attitudes is defined as ‘the way a person thinks and feels about something
or somebody, which also impacts the person’s behaviour towards others’.

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No two people are alike. Every person in the world has their own personality,
unique from anyone and everyone else around them. People have different
ways of thinking, feeling and behaving. This is especially relevant, and
important to keep in mind in the workplace,
where individual personalities drive the success
and productivity in the organisation.
Human resources professionals must properly
understand and study human personality
and personality traits, especially because
these differences may affect the operations
in the organisation. Individual differences in
personality can sometimes lead to frustration and conflict, therefore it is vital
that management know how to manage these different personalities so that
they can reach their full potential in the workplace.

Every employee working in an organisation has to deal with different kinds
of people and personalities. Getting along with different personalities can
sometimes be a great challenge, especially when it comes to differences in
opinion. When it is hard to deal with certain personalities in the workplace, it
could lead to conflict, slower productivity and missed deadlines.
Different people need to be handled in different ways, therefore it is important
to be aware of these different personalities and how to deal with them in the
workplace. There are various classifications of personality types.

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Table 020. The simplest and most basic types of personalities

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2. The nature of individual differences

As already discussed, people are inherently different. They think differently,
behave differently and feel differently. They have different personalities,
different dreams, different goals and different values and ideals. Because
of these differences, people are unique and should be treated as unique
individuals. In the workplace, however, it is not always possible to treat every
individual differently.

Human resources professionals should avoid the ‘cookie-cutter approach’ to
people, where every employee is treated exactly the same, regardless of their
different personalities, goals, ideals or behaviours. The ideal is to treat each
employee differently, but it is still important to ensure consistent application of
rules, policies and structures.

Because people are so different, there are no clear-cut recipe available
to human resources professionals as to how to deal with their different
personalities and needs. Different employees have different needs, different
perceptions and therefore also different expectations. In order to satisfy
these individual needs and expectations, it is important that human resources
professionals pay close attention to these differences in employees in the
workplace. These individual differences of people, including their behaviours,
motivators, feelings and actions, are shaped by the following factors:
•• Their culture, ethnicity and

race.
•• Their age group.
•• Their gender.
•• Their educational levels.
•• Their religion.
•• Their sexual orientation.
•• Their family life.

Example:
• Employes from different

races and cultures can
sometimes get into conflict situations due to discrimination or racial
intolerances
• Women are sometimes more talkative and sensitive compared to
men
• Employees with high levels of education may sometimes get
frustrated with less intelligent individuals.

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• Employees who are married and have children, have other goals and
objectives than young, childless employees

• Younger employees are sometimes more prone to the use of
technology in the workplace, compared to older, more conservative
employees.

3. Interpersonal relationships

Definition

Interpersonal relationships are defined as ‘the association or relationship
an individual has with others within the working environment’.

It is vital that individuals develop and
maintain effective relationships with others,
especially in the workplace. They need to
relate well to people from different
backgrounds and different personalities, show
understanding and respect for these
differences, showing courtesy, tact, empathy,
concern and politeness towards others, in
order to be effective and productive in the
workplace.

These relationships with others are vital for the satisfaction and overall
happiness and motivation of employees in the workplace. Employees need
to be in a good relationship with colleagues and managers in order to move
forward, be successful and add value to the organisation. Employees mostly
work together in groups or teams, which makes interpersonal relationships
even more important. These relationships play a key part in the creation of
the healthy working environment, which also contributes to the satisfaction of
employees in the workplace.

Good interpersonal relationships in the workplace is important for the
following reasons:
•• Employees spend most of their day between 8 and 9 hours at work,

working with and dealing with other people. Most employees do not work
on their own, therefore interpersonal relationships are very important.
•• A single brain cannot make all the decisions alone. Employees need the
input from colleagues, managers and subordinates to make the right
decisions for the organisation.

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•• Interpersonal relationships have a direct impact on the organisation’s
culture and working environment. If the
relationships amongst employees are good, the
culture and environment will also be positive.

•• Employees need support and motivation from
colleagues and managers who appreciate their
work in the organisation. This can only happen
through sound interpersonal relationships.

•• Employees need to get along with colleagues
in order for projects, assignments and tasks
to get done in a specific time. If there is no trust in the relationship, there
will not be success in the assignment.

Individual activity 3 G

Answer the following questions in your workbook:
(a) What is personality?
(b) What impact does personality have on individual behaviour in the

workplace?
(c) Name and discuss the four types of personality and how their behaviours

influence their working life.
(d) Discuss the individual differences of people in your own words.
(e) What can human resources professionals do to curb these differences

in the workplace?
(f) What is interpersonal relations?
(g) How does interpersonal relations impact individual behaviour in the

workplace?

3.1.3 Group behaviour

Most assignments, tasks and projects in an organisation are performed
and completed by groups. Groups form an integral part of the success and
profitability of an organisation as they tend to be more productive, more
creative and more effective than individual efforts. Groups comprises of
a number of different people, with their own goals, objectives, thinking,
behaviours and motivators. It is exactly these differences combined that make
groups so much more effective, than individuals working on their own.

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Definition
Attitudes is defined as ‘the way a person thinks and feels about something
or somebody, which also impacts the person’s behaviour towards others’.

1. Group dynamics

Definition
Attitudes is defined as ‘the way a person thinks and feels about something
or somebody, which also impacts the person’s behaviour towards others’.

In an organisational setting, groups are at the
forefront of all activities in the workplace. It is
important for management to study the
behaviour and characteristics of groups, taking
essential group dynamics into consideration.
Group dynamics are relevant to all kinds of
groups, be it formal or informal. Regardless of the
size or purpose of a group, every group has similar characteristics.

a) Characteristics of groups

Every group formed, regardless of whether it is formal or informal, share the
following characteristics:

Table 021. Characteristics of groups
• Groups consists of two or more unique people.
• The group has a clear structure where the rules and norms are clearly defined.
• Members of the group share a common goal and the same objectives.
• Group entails face-to-face interaction where members of the group talk to each

other.
• Members of a group are dependent on each other.
• Members agree that they belong to the group and are accepted by the rest of the

group.
• Groups have a clear leader who drives group activities.
• Groups deal with conflict in a constructive manner.
• Members of a group have an influence on each other.

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Source: http://worldofcartoonsandcomics.blogspot.co.za/2011/03/dilbert-on-group-dynamics.html

b) Formal and informal groups

The formation of groups are a natural part of organisations, whether they are
created by the management team or amongst employees themselves. Groups
normally form because people have the need to talk and engage with each
other in a circle where they can interact freely, know each other, work together,
and accomplish work tasks. Groups are divided into two main categories:

Definitions
Formal Groups are defined as ‘employees working together on a planned
project in a work group within the organisation; usually formed by the
organisation’.
Informal Groups are defined as ‘groups that emerge naturally due to the
response and common interests of the members; based on likes, interests
and attitudes of members’.

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Table 022. Some of the key differences between formal and informal groups

Formal groups Informal groups

• Groups created by the organisation, • Groups created by the employees
with the purpose of accomplishing a themselves, for their own sake.
specific task.
• Groups are formed voluntarily.
• Groups are formed deliberately.

• Can be quite large in size, depending on • Group size is comparatively small.
the project.
• The structure of the group is ill
• The structure of the group is well defined.
defined.

• The relationships are professional. • The relationships are personal.

• Communication flows in a defined • Communication stretches in all
direction, from top to bottom. directions.

Example:

• A project team working on the new marketing strategy for the
organisation is seen as a formal group.

• A group of employees coming together after work to play soccer and
netball is seen as an informal group.

Source: https://www.psychologytoday.com/blog/dont-delay/200806/meeting-
deadlines-in-work-groups-implications-the-workplace

c) Benefits of group work in the workplace

The benefits of groups in the workplace far surpass their problems. If managed
correctly, groups could really add value to the overall productivity and
effectiveness of the organisation. Working in groups can be challenging when
there are different personalities on the team, but the combined work also
provides benefits to the organisation and individual employees.

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Table 023. Benefits of group work in the workplace

Benefits Description

Shared • Each employee has a certain set of relevant skills and
experiences knowledge.
and
knowledge • Some of these experience areas overlap, while others are
distinct to one or two employees.

• When grouping employees together, everyone gets the
advantage of shared knowledge and experiences.

Idea • The team environment requires employees to discuss
generation elements of the projects.

• This leads to more ideas being generated.

• The discussion may encourage greater creativity and push the
members to think of new ideas.

Checking • It is important for groups to work on projects with their facts 3
facts straight without any mistakes.

Support • With multiple people working on the same project, there is a
built-in system of checking and balancing information.
Increased
productivity • When all members are involved in the project, they are more
and likely to pick up mistakes before it turns into a major problem.
performance
• The sense of security and support a group creates allows its
members to take more risks.

• While some individuals are cautious on their own, being part
of a group may encourage them to push themselves further.

• The support of a group helps members to increase their
productivity and become more motivated to work.

• Groups that work well together can achieve more than
individuals working on their own.

• A broader range of skills can be applied to practical activities
and sharing and discussing ideas can play a pivotal role in
deepening the understanding of a particular project.

Skills • Being part of a team will help employees develop their
development interpersonal skills, such as speaking and listening, as well as
team building skills such as leadership.

• These skills are useful in a career and are valued by employers.

Employees • Collaborating with other people will help employees identify
get to know their own strengths and weaknesses.
themselves
better • Enhanced self-awareness will help employees’ approach to
learning and development in their careers.

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Benefits Description

Better • Although decision-making would be slower than normal, the
decision- type of decisions made in groups would mostly be better than
making decisions made by employees on their own.

• All group members would give their input into decision-
making, ensuring that the decisions being made, are the best
for the project being worked on.

d) Problems with and within groups in the workplace

Due to the complicated nature of groups,
members can sometimes find that they are not
always effective or productive as a group, which
could negatively impact their progress and the
group’s ability to be successful.

Table 024. Some of the common problems experienced with group work

Problem Reason

Tasks are • Because groups consist of members with different opinions
not always and personalities, it could lead to the task not being
completed completed on time.
by the
deadline • Groups take longer to complete tasks compared to individuals
working on their own.

Some groups • Some groups are thrown together by management where
are slow to members don’t know each other yet.
get started
• In the forming of these groups, members go through different
stages, including: forming, storming, norming, performing and
adjourning which could lead to a slower start and therefore
slower productivity.

Ideas are • Because groups are slower to get started, it may be that they
not always are short for time when ideas are being discussed.
thoroughly
discussed • When deadlines are looming, some ideas might be wiped
off the table that could have been useful in reaching group
objectives.

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Problem Reason

Some • Sometimes, employees are shy or feel that their ideas or
members inputs are not good enough.
do not
contribute • This could lead to them withdrawing from group activities and
decision-making.

• Some members may also deliberately decide not to
contribute to the group, especially when they feel that they
have been forced to be part of the group, or when they do
not like the group leader.

Ineffective • When groups are pressed for time, or when deadlines are
communi- looming, communication could become ineffective.
cation
• Some group members tend to make all the decisions, without
allowing input from other members.

• Group members sometimes do not listen to each other, and
listening is a crucial part of communication.

Slow • Because groups consist of members with different opinions,
decision- experiences and ideas, it may take the group longer to make
making a decision.

• When every member is encouraged to participate in decision-
making, it could prolong the process substantially.

Potential • People are different and therefore they do not always agree 3
conflict with everyone in the group.
within the
group • This could lead to conflict during the process of group work.

• Conflict could also break out between members who do not
like the leader or when they do not support group goals and
objectives.

Some • Sometimes, individual group members are over-confident
members or domineering, wanting to take full control of all group
might be activities.
domineering
• They could also be the ‘talkers’, not really giving other
employees the opportunity to talk or give their inputs.

• Sometimes, these individuals also brush off other employees’
ideas or inputs, as a way of showing their dominance in the
group.

Inability to • Sometimes, groups could get side-tracked by discussions on
focus on topics other than that which the project or task is focused on.
tasks
• This could lead to a lack of focus on what needs to be done or
achieved.

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Group activity 3 D

In your groups, design a poster to share with the rest of the class, covering
the following elements:
(a) Definition of groups
(b) Characteristics of groups
(c) Difference between formal and informal groups
(d) Benefits of group work in the organisation
(e) Problems experienced with and within groups in an organisation.
Make your poster as colourful and interactive as you wish. Share with the
rest of the class.

2. Leadership

Leadership is another important concept that is crucial in the success of an
organisation and groups. Without a clear leader to direct activities and inspire
members to reach objectives, there is little chance of group success.

Definition
Leadership is defined as ‘the act of leading and inspiring a group of people
or an organisation to move forward and achieve goals and objectives’.

Effective leadership is key to the success of any organisation and group. It
involves the establishment of a clear vision, sharing that vision with others,
and inspiring them to follow this vision. Leadership further involves the
sharing of information, knowledge and methods to achieve objectives and the
coordination of group activities, as well as balancing conflicting interests of
members.

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Leadership cannot be taught, although it is possible to be developed and
enhanced through coaching and mentoring. Leadership can also exist at all
levels in the organisation, not only at top management levels.
Leaders are important in organisations for the following reasons:
•• They set a clear vision and direction for the organisation.
•• They step up in the time of crisis, are able to think and act creatively and

deal effectively with difficult or challenging situations.
•• They attract people and motivate them to put their talents to work in the

group.
•• They inspire their followers to work with them in achieving goals and

objectives.
•• Leaders drive the success of the organisation through goal achievement.
•• They transform the potential of people into reality.

Source: https://www.pinterest.com/pin/252060910367118683

Individual activity 3 H

Answer the following questions in your workbook:
(a) What is leadership?
(b) Why are leaders important in the organisation? Explain your answer.
(c) Are leaders born or made? Motivate your answer.

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3.2 Interpersonal and organisational
communication

Communication is a very important element in human behaviour and
interactions in the workplace. Without proper communication, organisations
will be faced with many different challenges, including conflict, frustration, lack
of productivity and demoralised staff.

Definition
Communication is defined as ‘the activity or process of expressing ideas
and feelings or giving people information’.

Communication takes place between a minimum of two people - the sender
and the receiver - where information is sent by the sender through a specific
medium and channel, which is then decoded by the receiver.
The message decoded by the receiver will then be fed back to the sender, as
an indication that the message was understood properly. This is called the
communication process. With this in mind, it is evident that communication
flows from the sender to the receiver and back from the receiver to the sender.

Communication can flow in many different directions, it could be formal
or informal, and it is definitely more than just an exchange of information.
Communication has to be effective in order to really add value to the organisation,
to the interaction between people and to individual employees personally.

3.2.1 Upward, downward and horizontal
communication

Communication takes place between at least two different individuals. There
should be a steady flow of information sharing in all different directions in the
workplace.

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This is to ensure that communication takes place effectively in the organisation.
In the organisation, information can flow in many different directions:

1. Downward communication

From top to bottom (management to
employees).

2. Upward communication

From bottom to top (employees to
management).

3. Horizontal communication

Side to side (between colleagues).

Table 025. The different flows of communication in the organisation

Flow of Description 3
communication
• Communication that flows from top to bottom in the
Downward organisation.
communication
• Communication flowing from the management team to
its employees in a downward motion.

• It is based on the assumption that the people working
at higher levels have the authority to communicate to
the people working at lower levels.

• Managers give instruction, commands and feedback to
employees in their teams.

Upward • Communication that flows from bottom to top in the
communication organisation.

• Communication flowing from employees to
management in an upward motion.

• Employees send information, suggestions, complaints
and grievances to managers that oversee them.

• It is participative in nature, where employees are
encouraged to share information upward to their
supervisors or managers.

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Flow of Description
communication
• Communication that flows from side to side in the
Horizontal organisation.
communication
• Communication flowing from employees to employees
on the same level in a horizontal motion.

• Main use of this dimension of communication is to
maintain coordination and review activities assigned to
various employees.

• Evident during meetings or conferences in which all
members of the group, mostly peers or equals, interact
with each other.

3.2.2 Formal and informal communication

Definitions

Formal communication is defined as ‘the means of communication
normally controlled by people in positions of authority in the organisation’.

Informal communication is defined as ‘the exchange of information
outside the formal chain of communication; communication free from
organisational formalities’.

Organisations have formal and informal
communication channels that direct
the flow of information throughout
the workplace. Formal communication
follows the internal procedures and
flow of information in the organisation,
whereas Informal communication is
more focused on the grapevine.

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Table 026. Difference between formal and informal communication channels
in the workplace

Formal communication Informal communication

• Means of communication normally • Does not follow formal routes of
controlled by people in authority in communication in the workplace.
the organisation.

• Seen as an organisation’s main line • It is often discouraged or looked
of operational communication. down upon, and is not officially
sanctioned.

• Includes all the reports, records and • It is popularly referred to as a
other forms of information sharing grapevine, owing itself to man’s
to various parts of an organisation. gossipy nature.

• These channels of communication do • It runs in all directions irrespective

not function automatically. of the formal structure.

• A good organisation will ensure that • People tend to speak in a more
these are carefully planned and relaxed manner with their co-
designed to fit its needs workers wherever they may be.

• Normally involves communication • Sometimes they feel the need to 3
from managers to employees in unload, or speak from the heart in
terms of work instruction and vice casual conversation.
versa.

• This results in the generation of
a rumour mill, which is known as
the grapevine.

• These conversations deal with
both personal and business
matters.

Source: http://www.cartoonwork.com/
photos/522/communications.html

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3.2.3 Importance of effective communication

Effective communication is essential for the future competitiveness and
profitability of an organisation. It helps the management team to perform
their basic tasks of planning, organisation, motivation and controlling.
Communication skills, can be written or verbal, form the basis of the activities
in any organisation. They form the building block of organisations.
Some of the main benefits of effective communication includes the following:
•• Communication forms the foundation of

motivation in the organisation. It helps
management to know how a job is being
performed and to improve performance,
if necessary.
•• Communication acts as a source of
information and helps in the decision-
making process.
•• Communication helps to build people’s
attitude. A well-informed person will
always have a better attitude than a less
informed person.
•• No business can survive in isolation. They need to socialise and this can
only be done effectively through communication.
•• Communication is also used to control the process of management in the
organisation. Through communication, management will become aware
of employee grievances, and employees will become aware of company
policies and procedures.
•• It is also instrumental in raising the moral and satisfaction of employees,
especially through feedback to and from management.

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