COMMUNICATION STRATEGIES AIMED AT IMPROVING THE SUCCESS RATE OF SMALL TO MEDIUM BUSINESS ENTERPRISES (A study of small to medium business enterprises in the Empangeni District: KwaZulu- Natal) Josia Mfanasibili Magagula Submitted in accordance with the requirements for the degree of MA in Communication Science University of Zululand 2008 Supervisor: Dr. H. Rugbeer Co-Supervisor: Dr. Y. Rugbeer i ABSTRACT COMMUNICATION STRATEGIES AIMED AT IMPROVING THE SUCCESS RATE OF SMALL TO MEDIUM BUSINESS ENTERPRISES Josia Mfanasibili Magagula Organisational communication in today‘s organisations has not only become far more complex and varied but more important to overall organisational functioning and success also, organisations can not operate without communication, organisations involve people and people cannot interact with each other without communication. However, different styles of management have an influence or impact over people, on the way in which people co-operate and on the results of changes because change is both inevitable (unavoidable) and necessary in any business and it is important for managers and employees to hone (sharpen) their skills in change management. This study investigates the communication strategies aimed at improving the success rate of small to medium business enterprises. The first part of the study reviews literature on communication, change management, different styles of management, change implementation, importance of planning and communication, kinds of changes and managers and power. Subsequent chapters describe the construction of a survey instrument employed to measure and evaluate on the communication strategies aimed at improving the success rate of small to medium business enterprises. Penultimate chapters blend the insights gained from this literature review to interpret the results, obtained through the quantitative research methodology, to describe a set of conclusions and recommendations in the context of the communication strategies aimed at improving the success rate of small to medium business enterprises. ii DEDICATION This work is dedicated to the master of the universe, the almighty God. From the beginning till this moment of my life, your presence never leaves me nor forsakes me. Without you, my life would have been meaningless. Glory to God the lion of Judah. You are worthy to be praised. iii DECLARATION I declare that ―Communication strategies aimed at improving the success rate of small to medium enterprises (A case study of small to medium enterprises in the Empangeni District: KwaZulu-Natal)‖, is my own work and that all sources that I have used or quoted have been indicated and acknowledged by means of complete references. --------------------------------------------- Josia Mfanasibili Magagula iv ACKNOWLEDGEMENTS I wish to express my earnest appreciation to the following people for their support towards the completion of this research, without their continued support, this study would not have been possible. My first appreciation goes to Almighty God, the omniscience, omnipresent and omnipotent, for giving me the aptitude and opportunity to undertake this study under his extreme guidance and spiritual support. I would like to express my sincere gratitude to my loving parents, brothers and sisters of the Magagula family, for their warm love, support, motivation and prayers. I am greatly indebted to my supervisor, Dr. H. Rugbeer, Department of Communication Science, University of Zululand and my co-supervisor, Dr. Y. Rugbeer, Department of Science Foundation, University of Zululand, for their wise guidance, inspirational supervision, constructive comments, academic help, support and encouragement that contributed to the success and completion of this study. My accolade goes to my twin brother, Esau Magagula, for being so supportive and inspirational advice. To my lovely mother thanks for your motherly role. I will never forget you. Prof. Moyo, University of Zululand, Department of General Linguistics, for his patience in proof-reading and editing the original manuscript. To my research colleague, Toyin Oluwafemi, for her continuous support and assistance. To my friends, Lucky Dlamini, Nokuthuli Mthethwa, Nonto Mnisi, Sunday Mbatha, Bonoza Zwane and Themba. Just to mention a few, thanks very much for your encouragement and good company. And finally, to my big brothers and sisters of Eunice, Poppy, Melitah, Daniel, Doctor, Angel, Simon, Esau, Eddie, Sindy, Gugu, Lungile, and to the late Mthokozisi, for their confidence and belief in me. v WRITING CONVENTIONS The following conventions are used in this study: ▼ The abbreviated Harvard style of referencing in this study, for example Rees & Porter (2001:2), meaning Rees and Porter 2001, page 2. ▼ Illustrative tables and figures are all given as Figures 1 – 14 and Tables 1-23 in their chronological sequence of appearance. ▼ A conscious effort has been made to limit the use of footnotes as far as possible in order to facilitate the uninterrupted reading of the dissertation. ▼ For commonly used terms full terms are used in headings. Acronyms are used in paragraphs. ▼ Relevant material relating to investigate communication strategies aimed at improving the success rate of small to medium business enterprises. Such website addresses are included in the dissertation, both for verification purposes, and for acknowledgement of the source of information. An example of a typical website address is: http://www.hwswworld.com/wp/?m=200612 ▼ The World Wide Web (WWW) is transient and ever changing, therefore one should expect that websites from which information is gathered will be offline or may alter the contents of the website a period of time. ▼ In instances where the electronic document has been downloaded from a website, the author is given, followed by the year as in Davidmann (2006). The bibliography has been separated into authored and non-authored references. vi TABLE OF CONTENTS TABLES PAGES CHAPTER ONE............................................................................................................... 1 Orientation .......................................................................................................................... 1 INTRODUCTION ............................................................................................................. 1 LITERATURE SURVEY .................................................................................................... 2 CRITICAL QUESTIONS TO BE ANSWERED ............................................................... 3 OBJECTIVES OF THE STUDY ........................................................................................ 4 MOTIVATION OF THE STUDY ..................................................................................... 4 RESEARCH METHODOLOGY ....................................................................................... 4 Introduction ..................................................................................................................... 4 Research design ................................................................................................................ 5 Qualitative research design ............................................................................................... 5 Data collection ................................................................................................................. 5 Method of the study ......................................................................................................... 5 Geographical area............................................................................................................. 5 Population and sample ..................................................................................................... 6 Research instrument ......................................................................................................... 6 VALUE OF RESEARCH.................................................................................................... 6 OVERVIEW OF CHAPTERS ............................................................................................ 7 CONCLUSION ................................................................................................................... 8 CHAPTER TWO .............................................................................................................. 9 Key Concepts ....................................................................................................................... 9 INTRODUCTION ............................................................................................................. 9 COMMUNICATION.......................................................................................................... 9 COMMUNICATION MANAGEMENT ......................................................................... 10 COMMUNICATION TECHNOLOGIES ....................................................................... 10 FUNCTIONS OF COMMUNICATION ......................................................................... 10 CHANGE ......................................................................................................................... 10 MANAGEMENT ............................................................................................................. 11 CHANGE MANAGEMENT ........................................................................................... 11 CHANGE WITHIN AN ORGANISATION ................................................................... 12 IMPLEMENTING CHANGE ......................................................................................... 12 CHANGING MANAGEMENT STYLES OLD AND NEW .......................................... 12 CONTEMPORARY MANAGEMENT STYLES ............................................................. 12 CHANGING PATTERNS AND CULTURE................................................................... 12 INFLUENCING OTHERS DURING CHANGE ........................................................... 13 HOW TO INCREASE SOCIALLY RESPONSIBLE CHANGE? ................................... 13 LEADERSHIP .................................................................................................................. 13 CONCLUSION ................................................................................................................. 13 CHAPTER THREE ....................................................................................................... 14 Literature Review on Organisational Communication ........................................................ 14 INTRODUCTION ........................................................................................................... 14 vii COMMUNICATION IN AN ORGANISATION (ORGANISATIONAL COMMUNICATION) ................................................................. 14 IMPORTANCE OF COMMUNICATION IN AN ORGANISATION .......................... 15 For motivation and employee morale: ............................................................................ 15 For increase productivity: ............................................................................................... 15 For employees: ............................................................................................................... 15 The need for management and employees to communicate............................................ 15 MANAGERS VERSUS EMPLOYEE OBJECTIVES ...................................................... 16 EMPLOYEE RELATIONS IN THE CONTEXT OF THE ORGANISATION ............ 16 EMPLOYEE PARTICIPATION ...................................................................................... 17 EFFECTIVE COMMUNICATION ................................................................................. 17 OBSTACLES TO EFFECTIVE COMMUNICATION ................................................... 18 TYPES OF COMMUNICATION IN AN ORGANISATION ........................................ 20 Internal and Organisational Communication .................................................................. 20 External communications ............................................................................................... 20 Functions of Internal and External Communications ..................................................... 20 Formal and Informal Communications .......................................................................... 20 Upward and Downward Communications ..................................................................... 21 Lateral Communication .................................................................................................. 21 Diagonal Communication .............................................................................................. 22 COMMUNICATION MANAGEMENT ......................................................................... 22 MANAGEMENT STYLES ............................................................................................... 23 ADAPTIVE MANAGEMENT STYLE ............................................................................ 24 The Difference between Management and Leadership ................................................... 24 Differences in Perspectives ............................................................................................ 25 Subordinate as a Leader.................................................................................................. 25 A Leader is followed: The manager rules ........................................................................ 25 Management knows how it works .................................................................................. 25 Purpose of Leadership ................................................................................................... 26 Skills Needed ................................................................................................................. 26 Leadership Styles ............................................................................................................ 26 The Autocrat .................................................................................................................. 26 The Laissez-faire manager .............................................................................................. 27 The Democrat ................................................................................................................ 27 Leadership Attitudes ...................................................................................................... 28 Style Choice ................................................................................................................... 28 Practical Aspects of Leadership ...................................................................................... 29 Poor Delegation ............................................................................................................. 29 Advantages of Delegation .............................................................................................. 29 How to delegate ............................................................................................................. 30 Responsibility and Authority .......................................................................................... 30 Tasks you should not delegate ........................................................................................ 30 Your Task after Delegating ............................................................................................ 31 Leadership versus Management ...................................................................................... 31 Leaders have followers ................................................................................................... 32 viii THE WORK OF LEADERSHIP ..................................................................................... 33 MANAGERS AND POWER ............................................................................................ 35 COMPLEX MANAGEMENT.......................................................................................... 35 GOOD AND BAD MANAGERS .................................................................................... 36 THE ROLE OF TODAY‘S MANAGER IN AN EVER-CHANGING ENVIRONMENT ............................................................................................................ 36 PERFORMANCE MANAGEMENT ............................................................................... 37 THE GOAL OF PERFORMANCE MANAGEMENT ................................................... 37 THE PERFORMANCE MANAGEMENT PLAN .......................................................... 37 CONCLUSION ................................................................................................................. 37 CHAPTER FOUR .......................................................................................................... 38 Change Management .......................................................................................................... 38 INTRODUCTION ........................................................................................................... 38 IMPLEMENTING CHANGE ......................................................................................... 38 Set up ............................................................................................................................. 39 Kick off ......................................................................................................................... 40 Delivery ......................................................................................................................... 40 Review for managing change. ......................................................................................... 40 TIPS ON HOW TO MAKE CHANGE WORK .............................................................. 41 INFLUENCING OTHERS DURING CHANGE ........................................................... 41 Push behaviour .............................................................................................................. 41 Pull behaviour ................................................................................................................ 42 CHANGE MANAGEMENT ........................................................................................... 43 KINDS OF CHANGE ...................................................................................................... 43 MAJOR PREPARATION FOR CHANGE ...................................................................... 44 THE CHALLENGES OF MANAGING CHANGE ....................................................... 45 CONSIDERATIONS FOR MANAGING CHANGE ..................................................... 45 ORGANISATIONAL CHANGE MANAGEMENT ....................................................... 46 ORGANISATIONAL CHANGE ISSUE ......................................................................... 47 RISK CONSIDERATION ................................................................................................ 47 CHANGE MANAGEMENT: ORGANISATIONAL AND PERSONAL CHANGE MANAGEMENT, PROCESS, PLANS, CHANGE MANAGEMENT AND BUSINESS DEVELOPMENT TIPS. ............................................................................... 48 RESPONSIBILITY FOR MANAGING CHANGE ......................................................... 50 CHANGE MUST INVOLVE THE PEOPLE - CHANGE MUST NOT BE IMPOSED UPON THE PEOPLE ................................................................................... 50 CHANGE MANAGEMENT PRINCIPLES .................................................................... 51 OTHER POINTS ABOUT PEOPLE AND CHANGE ................................................... 52 BUSINESS DEVELOPMENT DRIVEN CHANGE ....................................................... 53 FAST CHANGING ENVIRONMENTS ......................................................................... 53 STRATEGIES FOR CHANGE ........................................................................................ 54 EMPLOYEE RESISTANCE TO ORGANISATIONAL CHANGE ............................... 55 Resistance Defined ......................................................................................................... 55 Positive Resistance ......................................................................................................... 55 The Nature and Causes of Resistance ............................................................................. 56 ix LEADERSHIP IN EXISTING ORGANISATION ......................................................... 57 Challenges of Change ..................................................................................................... 57 The ecology of leadership ............................................................................................... 58 The context of change .................................................................................................... 58 A new role for hierarchy................................................................................................. 59 Asking the Right Questions ............................................................................................ 59 THE SEVEN TRANSFORMATIONS OF LEADERSHIP ............................................. 60 Managing Transitions: Making the Most of Change ........................................................ 60 How to Get People to Let Go? ...................................................................................... 61 TURNING RESISTANCE INTO COMMITMENT ....................................................... 61 CHOOSING STRATEGIES FOR CHANGE.................................................................. 64 MANAGING PEOPLE .................................................................................................... 64 IMPLEMENTING CHANGE SUCCESSFULLY ............................................................ 64 CHANGE AND TRANSITION ...................................................................................... 65 VIEW OF CHANGE IMPACTS RESPONSE ................................................................. 65 CHANGE AS LOSS .......................................................................................................... 65 THE NEGATIVE SIDE OF CHANGE .......................................................................... 66 CHANGE AND STRESS - THE PRINCIPLE OF ADAPTATION ............................... 68 STRESS MANAGEMENT ............................................................................................... 68 TIME MANAGEMENT ................................................................................................... 68 HOW PEOPLE REACT TO CHANGE .......................................................................... 69 CHECKLIST FOR CHANGE MANAGEMENT: ........................................................... 69 TOP-DOWN CHANGE................................................................................................... 70 CONFLICT MANAGEMENT ......................................................................................... 71 MOTIVATION ................................................................................................................. 71 EMPLOYEE MOTIVATION: THEORY AND PRACTICE .......................................... 71 MOTIVATION IS THE KEY TO PERFORMANCE IMPROVEMENT ...................... 71 6 Steps to Motivation ..................................................................................................... 73 Disputes ......................................................................................................................... 73 THE ORGANISATIONAL MANAGEMENT ANALYSIS ............................................ 73 UNDERSTANDING WHAT CHANGES MEANS TO YOU AND OTHERS ............. 74 LIVING WITH CONTINUOUS CHANGE: THE MANAGEMENT CHALLENGE .. 74 Culture of Organisations and Sustainable Organisational Change ................................... 75 The Importance of Popular Acceptance of the Process of Change ................................. 76 WHY IS IT SO DIFFICULT TO SUSTAIN CHANGE? ................................................. 78 CHANGING ORGANISATIONS ................................................................................... 79 The Four Factors for Success: ......................................... 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Factor 1: Pressure for change (the top down approach) ................................................. 80 Factor 2: A Clear, Shared Vision .................................................................................... 80 Staff Motivators ............................................................................................................. 81 Pride .......................................................................................................................... 81 Happiness .................................................................................................................. 81 Responsibility ............................................................................................................. 81 Success ....................................................................................................................... 82 Good questions to get things going ............................................................................ 82 x
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