EFFECTIVE BUSINESS COMMUNICATIONS finds for 9+» Dome of M. A. MICHIGAN STATE COLLEGE Daneid Wofler I954 IIIIIIII IIIIIIIII man 3 1293 014110575 LIBRARY I Michigan SW“ Unlversity PLACE IN RETURN BOX to remove this chockoutfmm your need. TO AVOID FINES Mum on or bdoro dd. duo. 3,... . ~. ..- a». . DATE DUE iDATElnlIfiQEDfiTE DUE Mints? - m MSU !e.‘.'!.“" AL EFFECTIVE BUSINESS COMMUNICATIONS By DONALD WELLER A THESIS Submitted to the School of Graduate Studies of Michigan State College of Agriculture and Applied Science in partial fulfillment of the requirements for the degree of MASTER OF ARTS Department of General Business Curriculum in.Food Distribution 1954 ACKNOWLEDGMENTS The writer wishes to express his sincere appreciation to Dr. Edward A. Brand under whose inepiration, guidance, and supervision this investigation was undertaken. He is also greatly indebted to American Stores Company for their financial support and assistance which has made this year and investigation possible. Further credit should be given to Mr. William C. Ferguson, Director of Personnel, American Stores Company, for his unfailing encouragement and assistance throughout the past year. Grateful acknowledgment is also due the food chains, who so willingly contributed information and material which is included in this thesis, and the American_Management Associa- tion, from whose library and published material much informa— tion was received. These acknowledgments would not be complete without pay- ing tribute to my parents, who have carefully guided the author down the paths of life and the Almighty who has seen fit that-the author has survived the many trials of his life. TABLE OF CONTENTS CHAPTER I. II. III C IV. INTRODUCTION . . . . . . . . . . . . . . Purpose of Study . . Sources of Data . . . . . . . . .f. . . Sc0pe of the Study . . . . . . . . . . FLOW 0F COMMUNICATIONS Determining the Best Means of Communication Written Communications . . . . . . . . . . . Two-Way Communications . . . . . . . . . Three-Way Communications . . . . . . . . Methods of Written Communications . . . . OTHER METHODS OF EMPLOYEE COMMUNICATION . . Importance of Information from Employees . . Methods of Employee Communications . . . . Use of Suggestion Systems for the Encourage- ment of New Ideas . . . . . . . . . . . ORAL COMMUNICATIONS . . . . Sales Meetings and Conferences . .Presentation by Middle Management . . . Store Personnel Meetings . . . . . . . . . . Measuring the Reactions to the Meetings . . PAGE ODQC‘ONUCfll-‘H NMNHI—J HOOOJl-J 26 :54 39 4o 41 iv Table of Contents (Continued) Chapter Page V. SPECIAL PURPOSE COMMUNICATIONS . . . . . . . . . 45 Employees' Handbooks and Manuals . . . . . . 45 Definition and Publication of Company Policies . . . . . .'. . . . . . . . . 47 Making the Annual Report . . . . . . . . . . 49 VI. ROLE OF THE UNION IN COMMUNICATIONS‘ . . . . . . 54 Handling of Grievances Through Correct and Prompt Channels . . . . . . . . . . . . 55 Presentation of UnionAManagement Attitudes . 58 VII. DEVELOPING A GOOD COMMUNICATIONS PROGRAM . . . . 59 Set Up the Objectives . . . . . . . . . . . 59 Classify information to be Transmitted . a . 60 Costs of the Program . . . . . . . . . . . . 61 Evaluating the Program . . . . . . . . . . . 62 VIII. Summary and Conclusions . . . . . . . . . . . .4 65 BIBLI WRAPHY o o o o o o o o o o o o o e o o o o o o o 70 APPENDIX.A — Employee's Suggestion Plan, Wrigley's Stores, Incorporated . . . . . . . . . . . 75 APPENDIX B - An Outline of Communication Practice . . . 80 CHAPTER I INTRODUCTION Purpose of Study This is a study of communications as applied to all busi- ness, with particular emphasis being directed to the food chain industry. It was undertaken because the writer feels that today, more than ever before, and in the future, there is, and will be, a need for better and more accurate com- munications within the food chain group. The food industry itself presents a good Opportunity to test different methods of communications, since there is an ever-present need for communicating sales plan and product information through correct channels promptly and accurately. Inversely, there is also a need for information to pass from within the ranks to top management. In order that both these functions are performed smoothly and efficiently, the tracks for communications must be "cleared for action." The food business has grown tremendously in the past ten or fifteen years, and if it is to continue its phenomenal growth it must be able to pass valuable pieces of information zalong so that they can be acted upon immediately. With the present system of competitive business, it is very important truat facts, as well as "tips," be channeled to the right per- sons quickly and accurately if an advantage is to be gained. 2 Up to the present time, not too much has been done to improve the field of communications. However, the execu- tives of today are beginning to realize how important good communications are in their attempt to keep the organization running smoothly. Some chains have tried to set up their communication systems on a parallel with the formal organization of the company. They have found that not everything moves as easily as eXpected. This is due to the fact that there are obstacles in the chain of command. These obstacles must be overcome to relieve the bottlenecks and inefficiencies of this formalized system. The writer has endeavored to deveIOp six major divisions in his treatment of communications. In develOping these divi— sions, necessary to include some of the problem areas of communications, as well as some possible solutions to these important questions. The main purpose of including these explanations was to set down the basic founda— tions for good, efficient communications. With this investiga- tion the various companies can start to analyze their systems in.relation to an ideal system. The companies may then be zable to find a key to unlock their trouble chest. Sources of Data The primary sources of information for this study have been secured from the multitude of published material on each of the various phases of the problem that the writer deemed necessary and important for the study of communications. In addition to this information the writer has obtained, through correspondence and discussions with many food chain execu- tives who have been on speaking engagements here at Michigan State College, much valuable information. In requesting information from these various companies, the writer tried to get a glimpse of the problem areas and how they were handled by the various organizations. The material received filled in the actual with the theoretical. Where the information received was brought into the discussion, direct reference was made. A complete listing of the other 5 sources, i.e., periodicals, pamphlets, addresses and books, is found in the bibliography of this thesis. Scape of the Study The writer has tried to expand the scape of this study enough to cover all the major points, and yet still handle 'bhem.thoroughly and concisely. This study is divided into six major areas in the handling of communications as applied tc: the food chain industry. There probably are other areas which might be treated in this field; however, it would be 4 impossible to handle all of them thoroughly in a dissertation such as this one. Only the most important areas were chosen for this discussion } The first phase of this investigation deals with the flow of communications. Therefore, it is necessary to compare two-way communications as opposed to three-way communications. In handling the subject of written communica- tions it would be almost impossible to avoid the methods used and how they can be used effectively. This being the case, a'secticn'ccncerning”the most important cf“these methods has been included. Written communications will be divided into ‘two chapters to avoid too lengthy a discussion and also to treat the matter more thoroughly. The second phase of written communications deals mainly with written communications from the employee to the top management whereas the first phase dealt mainly with top management to employee information. The third phase of this thesis deals with oral communica— ‘tions, with particular emphasis being placed on the various xneetings of the different levels of management and the results obtained from these meetings. It was also felt necessary to include several examples to further enlighten the reader. The fourth phase has to do with special purpose communica- tions. This area not only covers the employees but also the very Mportant patrons outside of the Operations; namely, the stockholders. Since our business is dependent upon these stockholders, the author felt that any discussion in the field of communications should justly include them. The fifth phase deals with the role of the union in com- munications. In this day and age unions are firmly entrenched in business; therefore, we must include them as a major area in the dissemination of information. Since the handling of grievances is a major problem in communiCations, and falls into the union classification, the author felt it should justly be mentioned in this area. The sixth and final phase of this investigation discusses what might be termed "a good communications program." This includes what the goals of the program should be, how they can be brought about, and evaluation of the program to see if the desired results are being obtained. From this point, it is the job of the executives to alter their program to suit the individual needs of the particular organization. CHAPTER II FLOW or COMMUNICATIONS Communications is defined as the "interchange of thoughts, opinions, or information." It is the job of all concerned to see that these functions are performed smoothly. The reason this "interchange" does not take place, in many cases, as it should is because there is a lack of understanding among the parties involved. One of these major barriers against under— standing is the difference in personal background and educa- tion of the personnel. Determining the Best Means.of Communication A food chain organization, whether it be large or small, is made up of many kinds of people. The education of these peOple varies from the person with many degrees, who may be at the tap of the management level, to the store clerk who has possibly had, at the most, a high school education. To- (lay, the chains are becoming more strict in their employee educational requirements and it is often the case that a high school education is required for employment. However, these persons with their varying degrees of education, analytical aibilities, and understanding must be reached. The communica- tions issued to these various groups must contain the material iii.a.highly informative, as well as understandable, form. 7 Therefore, it must be general enough to be understood by most, if not all, of its readers and still be concise enough to con- vey no mistake as to its intended purpose. "Companies frequently handle this problem of the specific vs. the general audience by preparing certain written communications for limited distribu— tion to Specific groups, such as an executive house organ, a branch letter, or a technical bulletin." It is the job of management to determine exactly what they want to say to the personnel, how they wish to say it, and the best means of getting this information to the specific groups. In determining the best means of communications, the factors given above must be carefully weighed to make sure that the personnel receives the right information. WRITTEN COMMUNICATIONS The author feels that in a breakdown of communications, written communicatiOns should be presented first, because they present the most concrete picture. In analyzing written com- munications, the authors of them, if they carefully study them with an open mind, can Spot some of the weaknesses or .faults within their writings, whereas it is quite difficult 'to remember all oral communications. This weakness in oral cummmunications is one of the reasons failures of company pro- grams are difficult to trace and remedy. In examining written communications, it is evident that there are many forms and IOMee, John.F. (editor) Personnel Handbook. New York: The Ronald Press Company, 1951. p. 788. 8 channels which can be used. This part of the discussion will include the more formal means, with a full description of the others, i.e., employee house organs, bulletins and posters, booklets and local neWSpapers, to follow in the latter stages of the chapter. TWO-WAY COMMUNICATIONS Two-way communication in business is thought of as being the giving and receiving of information. In order for com- munications to exist, what is sent must be received. Hence, we use two-way communications to indicate the up and down flow of information to and from employees. However, the subject will be treated mainly as comp munications downward through the organization to the person- nel. It may be said that the means used to achieve an effective flow of communications, may also be reversed and, thus, the reason for its name. This two-way flow of com- munications is very important. Water backing up behind a dam, without a spillway, is analogous to ' what transpires in the absence of two-way communications. If the management does .not keep the channels of information cpen, its main purpose is defeated. In order that management may learn the feelings and arttitudes of its workers toward its programs and policies, the Irpward channels must be kept cpen. If the downward channels tare not kept open, the employees will not know what informa- ‘tion.tc send back up the channels to management.2 ’ 2 Ibid., pp. 758-759. Lgtters to personnel. Letters are a very effective method of transmitting information directly to the employees and one which insures maximum response. The letter adds a more personal touch to the job because it makes the employee feel that he is more a part of the organization. In many cases these direct letters to the employees are signed by the president; in others, by the local branch manager. Com— - panics that have used this form of communication feel that these letters, used with judgment, are a valuable supplement to the periodic company publications and are quite impressive.3 Direct-mail adds to the effectiveness of any material .given to the employees. The mere fact that the employer thought enough of it to send it individually and pay postage on it is a good indication of its importance.4 Since these letters are an additional expense to the company, they must prove their valuableness. The outlay for these letters is just as important as an expenditure for new lighting fixtures. The direct letter to personnel and their families, if used appropriately as to time and Content, can be one of the most effective media for sharing information with employees and securing better understanding. 0n the other hand, if not used with discretion, it can be very harmful.5 3 Baker, Helen. gpmpany:Wide Understandingof Industrial Relations Policies. Princeton: Princeton University, Depart- .ment of Economics and Social Institutions. 1948. pp. 35—36. 4 Heron, Alexander R. Shari Information with Employees. ‘Palo Alto: Stanford University Press. 1942. p.—ISI. 5 Ibido, pp. 132-139. 10 Orders through the line organization. If the channels of communication are kept open and are functioning prOperly, these direct orders can prove the most productive system in an organi— zation. The top management of Johnson and Johnson Company, the world's largest producer of surgical dressings, realized the importance of the line organization as a direct channel of com- munication. The channels of communication were set up from the vice president through to the employee and were recognized as the chief conduit of the management's system of communications. The above-mentioned channels handled all Operating instructions and other matters, such as the daily maintenance of safety and discipline.6 it might also be mentioned that the company has had only one minor labor disturbance since June, 1945, when they had to lay Off workers because of over production. The dispute was handled later and everything has functioned smooth— ly since that time. This labor relations record has proven the effectiveness Of setting up channels of communication and Operating directly through them. The following statement aptly sums up communications through the line organization: "Formal communication is so indispensable to purposeful co- Operation that it is secondary only to the prior existence of an organization with members willing to OOOperate."7 fiBaker, Helen, John Ballantine and John True. -Trans- c§g%§;%%ainformation.Through.Manggement and Union;ChanneIs. n us ial R—laticns Section, Department of Economics and Social Institutions, Princeton.University, Two Case Studies. Princeton, New Jersey. 1949. . 7 Mee, 2p. git., p. 763. 11 The author of the above statement further eXplains that line communication must be so designed that it is: l. Authentic- that it comes from whom it purports to come. 2. Authoritative- that it may be relied upon as a basis for action. Authoritativeness is usually the command type designated by the organization chart; but it may also be func- tional authoritativeness, which comes from the person's func- tional duties. For example, an electrical engineer definitely speaks with more authority concerning a generator than does a plumber. 3. Intelligible- that its language has the same meaning to the receiver as it does to the originator of the communica- 8 The originator of these communications must use a tion. vocabulary which he knows has the same meaning to the receiver as it does to him. THREE-WAY COMMUNICATIONS. Not all communications are two way. In business there is a need for a broader phase than two-way communications permit. .hence, we have what is known as "three-way" communications. This type of communication consists of the following types: 9 8 Mee, loc. cit., p. 763. 9 Mee, 22. 911., pp. 759-761. 12 l. Qifferent levels of authority. Interscalar communi- cations consists of communication between the different levels of authority within an organization. Orders, reports and instruc- tions through the formal line organization are handled by this method. 2. gersonnel on the same level. The conversations, or communications, between personnel on the same level is called intrascalar communications. This is the informal type of communication. Casual remarks about the boss between two workers, or the exchange of ideas or information by two dis- trict superintendents, would best illustrate this method. in- formal communication, such as this, is necessary to promote unity, understanding, morale and. action in an organization. However, too much informal communication will tend to weaken a business organization. 3. Outside communications. This last classification of three-way communications includes all outside, or 55335- orgganizatipnal, communications which are related to the work, but which take place outside of the company. Information ‘which.should not or could not go through the company channels .falls into this grouping. Unions and local newspapers are two good, common carriers of this type of information. I fPogether, these three types of communications should take cmxre of the loose ends in the company's system of keep- ing its employees informed. 13 METHODS OF WRITTEN COMMUNICATIONS The author felt that special consideration should be given to some of the other important methods of transmitting information to the employees. Therefore, this section of the chapter will deal with house organs, bulletins and posters, booklets and local newSpapers. These are what might be called the "extra-curricular" media of informational exchange. They provide an excellent means for keeping the employee informed outside of his working environment. House Organs. Employee house organs, also known as in- ternal house organs, employee magazines, or employee news- papers, are a big part of the program of communicating informa- tion to the employees of many companies. In the United States there are approximately 5,000 such publications. These publi- cations reach about 30,000,000 readers at an approximate cost of $30,000,000, annually, for printing and administration.10 Surely an expenditure of this size must perform some valuable’ job. At least the companies hope so. A good example of the type of work this kind of employee publication can do is to build "company-consciousness," a feeling of belonging, or ‘what is termed esprit Q3 corps.11 Ibido, pp. 789’7910 llHeron, pp. cit., p. 118. 14 A recent study by the Association of National Advertiser‘s, Inc., of six major companies in this country, to determine whether the companies are actually receiving their money's worth from house organs, revealed:12 1. Fifty—three per cent of the employees named it as their major source of information about the company. 7 2. Ninety-seven per cent of the workers stated they felt they could believe what they read. 3. Seventy—eight per cent of the employees read these company publications regularly. 4. Pictures and sectionalized departmental news have top pulling power. 5. Signed editorials outscored unsigned ones by a good margin. In another company, employees indicated their preference as being: 1. Humor page. 2. The article by the president. Surveys that have been made in the last few years indicate that the kind of information employees desire most in their .house organ concerns the programs of the company and their effect on the workers' jobs. ____n______ Anon. "How Effective Is Your Employee Ma azine." JFactor Mana ement and'Maintenance. Vol. 3, No. , p. 270:4 {As inyghe Management Review, February, 1954, Vol. 43, No. 2, p. 84. 15 Every indication points to the house organ as a valuable contribution to the communications program. However, it must not be used as a preaching medium and any information that is submitted should be surrounded by personality sketches, births, deaths, and marriages and other information of personal in- terest to employees. Much of this latter material can be contributed by the employees themselves, and, thus, the house organ provides two-way communication. The following list illustrates what a house organ can do 13 in a company using it as a medium of communications: 1. It promotes loyalty to the company. It gives the employees a sense of belonging to an organization. 2. It improves coOperation of the worker with the management. The employees receive the facts and have a chance to weigh them t emselves. 3. It gives employees a feeling of working to- gether. It builds a "one, big family" feeling among the workers. 4. It interprets company policies, problems, and objectives so that they are understood by the workers. 5. It informs employees of company rules, products, methods of doing business, new policies, and plans. 6. It increases company prestige among employees. 7. It inSpires individual initiative and the desire to get ahead. Awards, promotions and campaigns are publicized and enlist employee participation. 8. It promotes employee activities. It promotes morale-building activities and shows the employees that the company is behind them. "' '13I"""“' . . . . . Lesly, Philip. (editor) Public Relations Handbook. New York: Prentice—Hall, Inc., 1950, pp. $03-105. 16 9. It promotes health and safety. It carries re- minders on accident prevention and safety precautions. 10. It increases productivity and performance. It features individual accomplishments and gives Special recognition to deserving employees. 11. It serves as a sounding board for employee attitudes. Suggestions and Opinions are stimulated by the house organ. 12. It can combat, when necessary, adverse publicity or harmful rumors. True facts can allay rumors. 13. It builds understanding and support in the com- munities where the company operates. Good will of the public, which receives the material, naturally is con— veyed to the employees. 14. It is an important contribution to the building Of good will for the company. By gaining the support of community leaders, developing loyalty among the employees, and preventing harmful rumors it stimulates good Opinion of the company from the sources that are most important - those nearest the company. The preceding list, in the author's Opinion, best states the merits of using a house organ to promote employee communica— tion. Although the house organ is a valuable aid to company communications, it is just one of the many. Some companies do not endorse an internal employee publication and rely on other media to handle the job of keeping their employees in- formed Of personal incidents among their fellow workers. Kroger, one Of the leaders in the food chain industry, is a good example of a company which relies on other media to com- municate to its employees. Booklets. The Kroger Company uses employee booklets instead of a house organ. Each booklet is designed to conVey 17 a particular message that Kroger desires to explain to its 30 , 000 employees. Booklets provide an excellent medium for companies to give Specialized and detailed treatment to a particular sub- Ject - Since they can be quite small in size (3"x5") they easily lend themselves for use as pay envelOpe inserts, direct distribution, or individual mailing. They are usually printed and lend themselves very nicely to the use of colors, drawings and sketches. Complicated programs, i.e., pension plans, job eVialz.z..<...'—2.‘l:ion, and fringe benefits, can be explained quite thor- °ueh1y and dramatically by these little booklets. In fact, it is the author's Opinion, as well as that of some of the Chain store executives in this country, that employee booklu ts are one of the best methods for presenting compli- cated facts, such as. company pension or hospital plane. to the company's personnel on all levels. Wag. Forms of communication can be very Offective on the store level. Material which is Put on bulletin boards should present the point accurately. briefly and in a catching manner. Bulletins should be as 01"” and friendly as any other communication. Posters are very effective when drawn by company artmen and duplicated i 11 black and white, rather than expensive, multi-colored, s . yndlcated posters.14 Since it is necessary to have a muse, 9E. 92.2., p. 794. 18 prominent and convenient place to display these communiques, bulletin boards are a "must." Bulletin boards should be con- Veniently located, efficiently designed, and carefully managed. Special emphasis should be placed on the need for keeping these vital information points uncluttered, clean and having the material changed periodically. In fact, if posters and bulletins are not changed once a week, some system for ar- ranging them should be made. .In one of the larger chains, the American Stores Company, mail is sent to the stores on the produce and bakery delivery trucks . This mail contains the price changes, merchandise and promotion news, and other daily information needed to keep the store personnel informed on current developments within the market, and also the company. A policy of posting the store mail is followed. This mail is read by all of the e11113103r'ees in the store who initial it after they have read it and eVery week the material is taken or: the board and kept on file in the manager's office. In this manner the board is cleared for the next week, it is kept uncluttered and all in- forma~‘tSZI".On is noted by the employees. Local NeWSpaLerg. In communities where the company “mploys a large number of peOple and is well thought Of by the Peeple in those communities, the local newspapers are an excellent medium for communications. They serve a two-fold purpose: Dissemination of interesting‘material to the em— Pl°yees and, secondly, promote good will and public relations among. the townspeOple. 19 Newspapers present company news and plans for inSpection by the public. Local papers also direct attention toward cer- tain fellow citizens cited for outstanding‘service and achieve- ments. The papers are always glad to print news, such as previously mentioned, and fellow workers are always happy to receive it. The writer has mentioned only a few of the various meth— ods of management-employee communications which he thought deserved special mention. There are many more, such as the use of films to present worthwhile subjects, pay envelope in- serts , and television, which have become very important in this day and age. These are just a few of the more noteworthy methods. Whatever forms are chosen by the various chain or- ganizations, care and restraint must be exercised. Do not Preach to the employees; ex lain, and then let them draw their own conclusions . CHAPTER III OTHER METHODS OF WLOYEE COMIUNICATION This phase of employee communication deals mostly with employee-management communication, or the passing of informa- tiozi up through the channels to top level management. A major section is devoted to the use of the suggestion System, as it presents a good example of communications “up- ward - u Importance of Information from Employees There are definite benefits which can be derived within the organization which maintains Open channels of communica- tion upward. In this way management is able to receive valu- able information from the Operating level and subordinate man- agemen't. The main benefits of such a system are:1 l - Management may improve downward communication, be- cause, it better understands the worker and can communicate in t°rm3 01’ his world. 2 - Management can more effectively meet the information needs and desires of employees, because employees are able to commicate their needs to management. -\ The Nice, John F. (editor) Personnel Handbook. New York; RQnald Press Company. 195']. pp' 1W8 b- 1 . 21 3. Cost-saving, morale-building suggestions are received. uuarlzagement has no monOpOly on the brains in the organization. There is higher morale because of a greater sense of 4. employee participation in the Operation Of the business. can contribute is almost Information which employees The employees can contribute any information which unlimited. management needs - if management can only get them to give up Generally Speaking, almost any infOrmation the information. Which directly, or indirectly, indicates to management, em- Ployees' attitudes, sentiments, needs, or information concern- Also, suggestions which would 1118 the Operations is welcome. iHILDI‘OtIes business conditions and working conditions are looked for by management from the ”employees. Methods of Employee Communications In. considering methods whereby the employee can communi- cate with management, these are not presented in order Of importance, but rather chosen at random. M"’111‘136-‘alzlent must make sure that there are no barriers between itself and the employees if effective communications are to exist - ln‘t erviews. An interview has been defined as any face— t .. 0 face meeting, with other than purely social contacts being the motivating factor. The major aim Of any interview is the Ibid. , p. 816. 22 gathering of information. Information Obtained may be of a different nature and make-up than is ordinarily thought of in conjunction with such meetings. It provides a foundation upon which conclusions may be drawn and action motivated. if the information Obtained from the interviews is carefully compiled and filed, it can serve as a valuable reference in the future. Employees can contribute such information as: Why they ask for transfers. What are the trouble spots within the organiza- tion? Why they are remaining employed in the Company. This information can be used to avoid a continuation 0f unsatisfactory situations. Ece-tO-face contacts and meetings. Using this phase of upward communication, management must prove itself a good lis- “1161‘- Discretion must be used in interrupting the employee and in inserting ideas to clear up the matter at hand. This type Of meeting is commonly referred to as counseling and Possesses potential for securing information. "This two-way, man‘t°~man technique has all the ingredients necessary to prod- uce the: best results. It is informal; it is face-tO-face; it is P3138 anal; and it flows in two directions.“5 Le “tters from individual employees. Brief mention of these 1°tt°r8 from individual employees is all that is necessary to give the reader a complete picture. The type of letter received Thro Brunauer, Walter 19. "Increasing Sales Lfficiency ugh Better Two-Way Communication." Amorican Mana ement W. Marketing Series Number 84: p. 2T. 1 . 23 varies from those by the chronic complainers to the letters of individual need or appreciation for some act of management. since these letters are self-explanatory, from Specific individuals, they are handled as such and it 'is not necessary to go into the subject in any further detail. Special empha— sis should be placed on the need for answering these letters promptly and to the complete satisfaction of both parties. Prompt answers help to avoid grievances later. Employee representatives. In some companies employees are elected to represent the masses and present their prob- lems to management. Now that unions have established them— selves so firmly in industry, this "middleman" is disappearing in one sense. The union steward isnow taking over this func— tion as employee representative. The steward must act un— biased and present all information unfailingly. I‘t is logical that any employee representative who is chosen. by his fellow workers can be very helpful to both the emplOYe es and management. The steward performs a necessary functi on as co-ordinator for both groups. He is the relay agent, passing employee sentiments and opinions back up the ladder «- He also helps by explaining any new company plans or P°1icies to the employees. The co-ordinator is very vital in keeping the channels Of communication Open.4 Brown, Harvey W. "What Labor Expects of Management." ”Eerican Management Association. Personnel Series Number 117: . §2 e 9 ‘ I 24 "_pen-door" policy. In establishing an "Open-door" policy, all efforts must be exerted to insure use by the em- ployee and make the atmOSphere as friendly and informal as possible, so that the employee will not be ill at ease.5 "Theoretically, at least, the 'Open—door' policy...whereby the worker is encouraged to bring his problems directly to upper management at any time...has been widely accepted as a vehicle for improved communication. Its practical application ,presents certain problems, however, since workers Often hesitate to by—pass their immediate super- ‘visors...who, in turn, may feel justifiably resent- :ful if they do. The solution in one company was ‘tClintegrate the 'Openpdoor' concept with an em- ;zployee council program based upon multiple manage— zznent." {The company, upon which this discussion is based, was the H.1r .. Grant Company, with general headquarters in New York City’.. This plan is very similar to the one adOpted by McCoazfizmick & Company, Inc., of Baltimore, Maryland.7 In MC3001fil:ll:i.ck'£i plan, multiple management was born with the settni.1:ng up Of three elective employee boards - the junior board of directors, the factory board, and the sales and ad— vertieing board. The principal purpose of the board is to feed- '130 the senior board of directors any new ideas which Mee, __p_. cit., p. 818. Pex~ Davis, George F. "The Open—Door Polic in Operation." M' V°1° 29' NO- 6: May: 1955. pp. so 4510. Add 7 Curlett, John N. The Management Job in Communication. ress given before the CalifOrnia Personnel Management ABBOQiation, 1953. 9 pp. 25 might improve business conditions. Unanimous approval of the junior board is required before any new plan can be sent to the senior board of directors for action. As one author so aptly stated it, "When any man in an organization is free, regardless of formal channels, to con- sult with anyone else who is able to help him with his prob- lems, one of the conditions Of good communication may be said to exist."8 Attitude surveys. In order to find out how personnel is reacting tO management's policies, the survey or Opinion poll is used. The methods used may vary. Two common methods are questionnaires and interviews. The purpose of the question— naires and interviews is to Obtain information from the em- ployees in an informal and informative manner. However, the two media do more than make an analysis Of employee attitudes. Actually, they make an analysis of the way the management of a particular branch has been able to produce a "winning team." They also analyze the effective- ness Of OOOperation at and between all levels Of employees in any of the stores or zones. Manager's skill is revealed and also how well he is maintaining sound, human relations.9 8 Learned, Edmund P., David N. Ulrich, and Donald R. Booz. Executive Action. Boston: Harvard University, Graduate schoOl Business Administration. 1951. 218 pp. 9 Worthy, James C. "Attitude Surveys As a Tool of Management." American Mana ement Association. General Management Series Number 11?. 41915. pp. 12-13. 26 In addition to the analytical and informational values received, these surveys also play a big part in personnel planning. With a device of this sort, tOp management can be more confident of the way in which their middle manage— ment is exercising the human relations portions of its total management responsibility.10 The author has sketched briefly the "other methods" of employee communications in an attempt to describe "bottom-up" management. In this phase of employee communications upward to tOp management, one Of the best and most satisfying methods to both parties is the use of the suggestion system. Use of Suggestion Systems forfithe EncOuragement of New Ideas An employee who has worked on the job for some time is likely to know a lot more about the job details and ways to 3 improve them than anyone else, including his supervisor.11 Since he possesses ideas, a release is needed to keep him happy. The release can be in the form Of a suggestion sys— tem. This idea of employees contributing worthwhile ideas to management is not new. "History tells us that as early as the year 1880, the William Denny Shipbuilding Company Of Dumbarton, Scotland, inaugurated a formal suggestion plan."12 10 Ibide, ppe 15-21. 11 Mee, loc. cit., p. 818. 12 Denz, F. A. "Why a Suggestion Plan?" American Man ement Association. Production Series Number I55, 1946. p. g. 27 gtartingga plan. The keystone in the establishment of such a program is proper executive support. The wholehearted support of all levels Of management should be enlisted from the start. As the proverbial saying goes, "If it's worth do- ing at all, it's worth doing right." - Secondly, proper organization of the program must be ar- ranged. An executive director is therefore a "must" require- ment.13 The job Of the director Of the suggestion plan and his staff is to handle all suggestions received, investigate them and follow up with acknowledgments or awards, as the case may be. Further mention of this will be made later. Another requirement for successful evolution of a sug- gestion plan is promotion and publicity. At the outset not too much promotion and publicity is required, but careful handling thereafter is necessary. The house organ provides an ideal location for such promotional material. As previously mentioned, the suggestions must be quickly investigated and handled to the employee's satisfaction. If a suggestion is accepted, a normal procedure of events should be followed. However, if rejected, the employee should re- ceive a prompt and full explanation Of the matter. Lastly, prOper incentives should be given to stimulate the employees. There is no need for fabulous awards, but in the same manner __—_—E3_E:;;;;;, R. E. "Building a Suggestion Plan." American Management Association. Production Series Number : 9 e pp. 8-9. 28 they should be more than a token acknowledgment. In the majority of companies the minimum award is 35. If there is a maximum set, and many companies do so, the ranges are from $100 to $2,500, with the majority falling within the $500 to $1,000 range.l4 Proper and careful handling_of suggestions. Not enough emphasis can be placed on the importance of handling sugges- tions. No rubber-stamp type suggestion system can be set up and left to run its own course. No two individuals are alike; therefore, we must deal with each individual separately. Since we are dealing with individuals, we should make the most of the Opportunity. The opportunity afforded supervisors, managers or department heads, working in conjunction with the system, to further personnel relations are unlimited. Like- wise, chances to hurt personnel relations are also afforded by the presence of suggestion rejections. In addition to a follow-up letter, which is best when delivered in person by the person's immediate supervisor, further discussion with the suggester might be necessary to smooth feelings.15 Why would there be a need for the study of communications if every person was perfect in his writing? The point is, not everyone is faultless and so a follow-up discussion with the employee is necessary.16 i4 Ibid., p. 17. 15 Seinwerth, herman-W. "Suggestion Plans - The Value to the Personnel Relations Program." American Management Associa- tion. Production Series Number 165; 1946. pp.78-9. 16 Ibid., p. 7-8.' 29 Benefits of suggestions. Not only does the company bene- fit, but the employees as well. The employees receive an Op- portunity of expressing themselves to management. Also, other benefits accrue, such as personal recognition, satisfaction of seeing your own ideas put to work, and making working condi— tions more pleasant and safer, plus the remuneration received. The employee's education about the company is broadened. They also become acquainted with the operating procedures of the company and what is the main purpose of these procedures. .Management, on the other hand, gains through improved employee relations, greater safety, improvement in products and customer service, and the creation of an alert, thinking organization.17 Awards. Not much is needed to clear up this phase of the program. These are the greatest pleasures in the whole plan. When rewarding employees with cash, give it to them personal- ly. In addition to this, build up the feeling of personal accomplishment within the company by announcing winners, using pictures, if available, on bulletin boards, posters, and in the house organ of the company, if one is published. Evaluating the suggestion program. To determine the rel- ative performance of any suggestion system, it is only neces— sary to take three factors into consideration:18 I17‘Denz, _p, cit., p. 4. 18 Alger, L. J. "Suggestion Statistics." American Man- agement Association. Production Series Number 165: 19162 p. O ~30 1. Participation (suggestions received per 1,000 em- ployees); 2. Percentage of adoptions; 3. Average award. The measuring stick for determining the preportion of employees management is reaching through this medium is the ta rate of participation. The percentage of adOption determines the over-all qual— a- ity of the suggestions management receives and the average award determines the value of those suggestions actually adopted.19 Keepigg enthusiasm in the sgggestionjproggam. In order to maintain enthusiasm in the suggestion program, tap manage- ment must constantly promote it. Personnel changes in the company can present a problem; therefore, constant indoctri- 20 nation of new supervisors and employees must be made. Posters should be used, placed in noticeable locations, and be fresh, new motivators of ideas. National Biscuit Company uses a few'gimmicks"which are not costly. The following are a few of the most noteworthy examples.2l 419 Alger, loc. cit., p. 13. 20 Richey, H. J. "Keeping Life in the Suggestion System." Address given before the California Personnel Management Association in 1953, by the Director of Suggestion System Division, National Biscuit Company, pp. 5-6. 21 Ibid., pp. 8-10. 31 All their daily desk calendar pads have the slogan "Think and Suggest" printed on each memo sheet. The cost is approximately five cents per pad — a reminder for every day in the year. Another one is a calendar which some might think corny, but they are nevertheless attention-getters with such expressions as "February - Put Your Heart into It," "April - Pour in Your Suggestions," "July - Would Ju-like to Gain Recognition - Suggest," "December - Yule Like Suggesting." Another idea is pencils with "NABISCO - Think and Suggest." Mr. Richey considers this next item the best of all. It is a wallet calendar which is given out each year with different art work on the back.— In 1953, a flow chart showing the flow of suggestions in the National Biscuit Company was reproduced on the back of the wallet calendar. Any idea, no matter how insignificant, may prove to be valuable promotional material. Never underestimate the draw- ing power of any idea. These ideas are what keep the blood flowing in the lifestream of the suggestion system. The writer would like to quote a very fine definition of a suggestion system which Mr. Richey22 read somewhere in pre- paring his speech, but did not state its source. It reads as follows: "A suggestion system prOperly administered is at once a communication system, a partnership in ideas 221bid., p. 5 32 between management and worker, a release for the worker's need for recognition, a creative outlet, an Opportunity to express individuality, and a reward for effort." If organizations are to keep the suggestion system alive, the most certain way of doing so is by constantly promoting them. i During a discussion session at the NAFC Management Clinic on Personnel on "Effective Employee Communications," the use of suggestion systems arose. The companies which in- dicated that they had suggestion systems also had different uses or purposes for them. However, companies which do use them do possess somewhat the same setup.23 23 See Appendix A which contains the Wrigley stores, Inc., "Employee Suggestion Plan." CHAPTER IV ORAL COMMUNICATIONS Oral communication means just what it implies - communica- tion by word of mouth. It is estimated that 75 per cent to 90 per cent of all employee communication is comprised of oral communication.1 In the day-to-day operation of the stores, offices and warehouses, this tool is the principal means of getting em- ployees to perform their jobs. It is used whenever work is done. A good speaking voice is a very valuable attribute for the executive. Orders must be given, suggestions tendered and objectives reached. Accomplishment of these duties neces- sitates a good, clear, pleasant and easily-understood manner of speaking. -Employees often mimic their supervisor's manner of speech; therefore he must set a good example. Communicating orally presents a good opportunity to be- come more friendly with employees and is easier in eXplaining a situation. In dealing personally with individuals, a person can alter his presentation to meet the specific needs of the individual. Questions can be asked and the problem solved on the Spot. This is a distinct advantage over written 1 Moe, John.F. Personnel Handbook. New York: The Ronald Press Company. . p. . 34 communications. However, the person speaking has much to do with how much value is placed in the explanation. The com- municator's background, training and position tend to in- fluence the listener. Oral communications include a wealth of varied media and methods for obtaining results. The author chose to limit this section to one of the major phases - meet- ings of the various levels of management. Included in the discussion are the different types of meetings, methods for making them more effective and some concluding remarks on how to measure the effectiveness of these meetings. sales Meetings and Conferences Increased sales and profits begin at the top. Better planning and organization of sales programs are.important fac- tors in the race by businesses to expand to all-time heights. Sales meetings and conferences are especially good media for communications downward because it provides the Opportu- nity to demonstrate, to visualize, to dramatize, as well as tell the story. Everyone realizes the inadequacies of printed communications as compared to methods of oral communications when the job calls for inspiration as well as information, for persuasion as well as explanation, or for the development of enthusiasm within the sales force. Yet, many an expensive campaign has been launched with- out the benefit of discussion, opportunity to ask questions and without anything else to transmit the idea from one person to another except the cold, naked, printed word. 18 it.any 35 wonder these plans are not successful or fail to generate enthusiasm? There seems to be a definite trend toward the use of sales meetings and conferences as management's tool for com- municating this kind of valuable information. Methods of conductigmeore interesting and_productive sales meetings and conferences. Some of the more current methods used by some of the various food chains around the country to improve enthusiasm are develOped in the ensuing discussion. The main purpose of each of these different meth— ods is to develop enthusiasm in each of the individual food chains. A necessary factor to insure successful meetings is care— ful planning. Advance planning by tOp management enables them to thoroughly cover the desired information. It is necessary that these meetings thoroughly convey the ideas if the partic— ipants are to retain the valuable highlights to take back home. To gain enthusiasm and perfection as the end results, the formulas to make these meetings successful must be care- fully worked out by tOp management beforehand. There are four main points which must be developed to produce successful sales meetings:2 1. Well-planned material - Give personnel a chance to take step-by-step notes or have it printed for distribution. é Anon. "How to Stage Productive Sales Meetings." Chain Store figs. 26: 147-150. June, 1954. 36 2. Comfortable surroundings - Permit participants to see, hear, understand and breathe. Feeling at ease, they take more personal interest. 3. Timely, interesting talks — Present the latest facts, not trends. 4. Audience participation - Helps all to share in the meeting as a whole; builds team Spirit. It also avoids tell- ing only - it demonstrates. Morale building is a vital by-product of these meetings. Pride, ability to contribute their pet ideas and a sense of importance bolster a man's morale tremendously. Ideas should be presented one at a time to make certain that the point is well digested by all before going on to the next one. Krogers, Wrigley's and Alpha Beta food chains, just to mention a few, are firm believers in the use of novel props and getting as many peOple as possible "into the act" to pep up their meetings. Another point is that any program initiated by the com- pany must have full employee backing or it is of no avail. Preparedness is needed to start the programs with a hang. The organization.must be prepared to put everything into their plans to secure employee backing. Both of these must be borne out at these meetings. A lasting, take-home impression should be the closing note of every sales meeting. 57 The Ansul Chemical Company, Marinette, Wisconsin, Operates their meetings in a unique pattern.3 It plans its meetings so as to induce employees to ask questions. The more questions, the better they like it. Soliciting questions is the Ansul Companyfs method of securing participation by the audience. Another method used by the Ansul Company as an aid in presenting information is the flannel-board. The flannel— board is nothing more than a felt-covered board. Information is fastened on felt strips, which in turn adhere to this board. This board is a handy gadget which can be transported to the meeting place very easily. A comparison was made on the two main types of seating arrangements at sales conferences. The first type compared was the conference where the conferees sit in rows in an audience with the discussion leader being in front of them with a lectern. The second type of conference is one which is held in a large room. The conferees are seated around a large table at comfortable intervals. The discussions which were held across the table were .much more successful, since there was not present the dif- ficulty of controlling side conferences between the members who sit so closely in the audience-type meetings. An "arm's length rule" for conferee arrangement is a good solution to T ' u Managemgg ?' 76%'mGglgg.Yexbgifeg’nggaguestion.- §E$E§ 38 the problem of conference control. Side conferences held by the conferees are most disconcerting. The conferees stray from the actual subject and miss much of the main discussion. When considering the serious problem of communication among people who are not even in the same room, and who have much less incentive than these top-management conferees to achieve a meeting of the minds, it becomes evident that con- sideration of any device for increasing the mechanical effec- tiveness of communication is worthwhile.4 The success of these meetings and conferences depends upon management‘s ability to keep them new, interesting, mo- tivating and enthusiastic. Taking the ”pulse" of the staff. Teamwork is necessary to create a winning team in business, as well as in sports. The coach must be able to mold his team into a smooth func- tioning outfit. He cannot lecture his team all the time. He must let them Operate and then find out the weak spots in the team. To find this out, he must stop talking and listen for awhile, or he must take the "pulse" of the team. The same holds true in.sales meetings and conferences. The tap man— agement must stOp talking periodically and listen for awhile to see if the staff is absorbing the material under discus- sion. Also, by listening, new ideas can be contributed and then all will benefit. By listening to the men for awhile, Rogers, R. A. "Across the Table: A Simple Device for ImprOVing Conference Discussion." gersonnel. 29: 510- 511. May, 1953. 39 management can see if the heart is working steadily and if the brains are functioning as they should. If everything is not functioning properly, then it is management's job to put the organization back in running order. Presentation by Middle Management ‘_ In the group labeled "middle management" food chain or- ganizations include supervisors or superintendents. These E supervisors have charge Of six to twelve supermarkets, depend- 1 ing upon the size of the stores, the capabilities of these supervisors and the division of the branch. Also, general superintendents, who are in charge of four to six Of these superintendents, fall into the middle-management classifica- tion. The general superintendents act as co—ordinators Of weekly organization meetings. In these meetings, past per— formances are reviewed, sales plans for the coming week are outlined and quotas are set. Other information, such as the development of store personnel and general condition of the stores, is also discussed. One midwest chain felt that there was a link missing in the chain of communication between the office and the stores and set up supervisors' meetings to tighten this chain of communications. Other chains use the same procedure. The office staff of this chain attended the weekly meetings of the supervisors and tried to broaden the supervision's out- look Of the Operations. TOpics discussed included such sub- jects as store safety programs, personnel training, suggestion 40 system Operations, medical benefit program, and other ideas which were a part of the institutional, personal and general aspects of the business. Monthly or weekly managers' meetings might also be in— cluded in the lower bracket of middle management. In these meetings the managers of the large supermarkets discuss the more general personnel and merchandising tOpics in relation to their stores. Intelligent ordering, special care in handling the merchandise, tieéins, handling of personnel and constructive aids to customers are a few of the subjects dis— cussed. This is the final point for generating enthusiasm before presentation to the store personnel. Store Personnel Meetings Meetings on the store level may be formal or informal, depending upon specific needs. formal meetings. This type of meeting may take place before, during or after work. At these meetings all person- nel assemble and the manager conducts the meeting, presenting information and plans to the employees. This type of meeting is required to handle important plans and programs or the installation of new systems of procedure, i.e., state sales tax. Store meetings in the morning, before work, are hard to arrange, since the problem of employees' days-off enters into the picture. Meetings after store hours are also bad because of union controls and also the laxity and disinterest Of employees who are too tired to listen intelligently-and 41 want to go home after a long day. Another alternative is a social function and business meeting every three months. At this meeting the personnel have a chance to bring their wives to the dinner and meeting, and business, as well as pleasure, results. Informal meetings. Informal store meetings are those which are conducted on the spur of the moment. This type of meeting takes place anywhere in the store whenever a few em— ployees congregate. An ideal time to hold these informal meetings presents itself during the coffee break in the.morn— ing. At this time the store manager outlines employee duties for the day and gives the employees an idea of plans for the coming week. Meetings on the store level eliminate the stock excuse, "Nobody told me." They also serve to make the clerks feel more a part Of the organization, therefore stimulating them to do better work. Best Of all, store employees share in planning and improving store drives and campaigns. They are all members of just one great big happy family. Heasuring the Reactions to the Meetings 0n the store level, the best measuring stick is the actual performance Of the employees. If they get behind the plans and go all out to make them successful, the results will be there in black and white. The same may be said in reference to the lower and middle—management groups. Their ability to carry out plans and stimulate action on the lower levels will '42 be reflected by the increase in sales of their stores and the growth figures of their territories in comparison with other territories. In the tOp-management brackets, other devices may be em— ployed to measure the effectiveness of the meetings. Questions such as the following may be asked:5 1. How useful is each subject discussed? Why? 2. What problems were raised in terms of applying material to the particular situations back in their districts? 3. What further information or knowledge should have been presented? 4. What were the participants' reactions to each presenta- tion? 5. What further classification or amplification should have been presented? For tOp-management, answers to questions such as these will give: 1. A picture of the gaps in information that will have to be filled if effective follow-up action is to take place; 2. A clearer picture of the audience's position in re- lation to each subject; 3. The importance and usefulness of each subject dis- cussed; ——.n T5 Beckhard, Richard. "How to Rate Reactions During a Meeting." sales Management. 70: 42, continued 44-45. April 1, 1953. . 4:5 4. Guides for agenda items at later sessions; 5. Information in advance of the next meeting which will enable them to present it much better. There are many good methods for collecting the audience's reaction to the meeting. The simplest method is for the speaker, or chairman, to ask for questions from the floor on the subjects covered. A second type of fact-finding device is the reaction form which may be given to the participants at the end of the meeting or the end of the conference. Briefly, this form consists of one or two questions such as:6 1. How did you like this session? (Check one) Excellent Good All Right Mediocre Poor Why? 2. How useful was this session to you in terms of back- home problems? (Check one) Excellent Good All Right Mediocre Poor Why? These questions can be printed on a small card and handled very easily. The importance of finding out how effective the sales meetings and conferences are is great. From.this information, past mistakes can be corrected and better and more productive sessions developed. €1bide , DO 450 44 The importance of oral communications to employees can— not be over-emphasized in the transmission of orders and plans. Although it is not as formal and precise as written communications, it is still a vital part of any business organization. CHAPTER V SPECIAL PURPOSE COMMUNICATIONS In the food chain industry, as well as many others, a need for special purpose communications arises on many occa- sions. This need may be reflected for materials to fully indoctrinate the new employees, to give the new company policy on specific subjects, to publicize an Open house or in the preparation of the annual report. As the name implies, it is for a special purpose. Therefore, the con- tent should be carefully written so that no misunderstand- ings arise and the primary Objective is reached. This section will deal with the employee handbooks, epecial purpose manuals and annual reports. Employees' Handbooks and Manuals The employee handbook is a Specialized booklet widely used to transmit the company plans, policies and procedures to the new employee. A company manual, for practical purposes, should be small in size so that it may be carried in the employees' pockets. The cover should be sturdy so that it can with— stand the wear and tear, and inexpensive so that necessary Periodical revisions will not make it costly to recall and rePlace. 46 Within these limitations, the manual provides a very capable medium for sharing information with the employees. However, by no means is it capable of performing the whole task. Constant counseling and guidance are also a necessity. If the Opinions, ideas and suggestions of supervisors and employee committees are interwoven into the book, then much more interest will be shown in it. Also, these peOple who helped and contributed to the book will be more ready and able to explain and share the contents with their fellow workers. The cover is a very important item in the make-up of the handbook. An appropriate color should be chosen for the book. As a suggestion, the food chains may want to use their company colors, i.e., Kroger Blue. It would be attractive and practical. Tact in choosing a title is also a "must." The book might be better received if "Information for Employees of the Jones Company" was printed on the cover rather than "Rules for Employees of the Jones Company."1 The impres- sion made on the employees should be that this handbook is an aid to them if properly used, not rules and regulations to be shoved down their throats. l Heron, Alexander R. Sharing_Information with Em lo ees. Palo Alto: Stanfbrd’University Press. 1942. DO 12 .1250 ‘ 47 Definition and Publication of Company Policies The company history usually prefaces a publication of this kind. From the company history the employee can secure some background of the company's formation and how it grew into the organization it is today. The goals of the company may also be included in this preface. The employee receives a feeling of security and well-being at being employed by a reputable and firmly established business. A prime requisite of any handbook is that it clearly states and eXplains the company's employee relations policy. The tone of the book is molded here. At this point manage- ment either makes or breaks its personnel relations policy. The handbook also explains other company policies, such as vacations, holidays and sick leaves. Rules to be followed by the employee are also given. These rules should not be exhaustive in length or too complicated to impair easy read- ing and understanding. PrOper rules are aids to teamwork, so the company should be able to justify each rule. Handbooks are used to describe the fundamentals Of com— pany plans and fringe benefits. Some handbooks do not give employees full eXplanation of these plans. Instead, a note is inserted directing the interested employee, who wants to learn more about the plans, to the prOper person from whom he may receive help in understanding all these plans. This procedure also encourages employees to visit the supervisor's Office, where they may become better acquainted with their superiors, as well as receive the information they were seeking. 48 grocedures to be used by the company personnel in receiv- ingd preparation and merchandising of goods. The dairy, prod- uce and store managers' manuals contain the standard opera- tional procedures. These manuals are meant to be guidebooks for the employees to use when questions or procedure arise. The material contained in these guidebooks is very complete and thoroughly explains the operating procedures of the com- pany. The main purposes of these Operating manuals are: l. Insures systematic circulation of policies. 2. Assures greater consistency in policy application. 5. Provides maximum accessibility for quick reference. 4. Provides a follow-through on formal training. Operating manuals fully describe every step in the re- ceiving, storing, preparation and merchandising of all com- modities. For example, a produce manual contains 1) an introduction, 2) a review of elementary addition, subtrac— tion and division, 5) an introduction for the employee to weights and measures, 4) the hanging scale, 5) the computing scale. This would constitute the first division of material. The employee would now be familiar with the fundamentals of weighing, computing and pricing. The next section would be a division on handling of the merchandise; storing and care the next; then one on trimming and preparation. Next would follow material on diSplay and merchandising, then a section explains ing the projection of sales and ordering. The final chapter would sum up the preVious ones and conclude with major points discussed. 49 The manual just described is typical of many Special manuals in use in food chains. .Another use of manuals is the formulation and definition of duties and responsibilities of the various executives. A good example of this type of communication would be a sales manager's handbook. Suggestions for the improvement of handbooks are:2 1. Make the capy friendly and sincere. 2. Be informal but dignified. 3. Speak on a level easily understood by all. 4. Don't take things for granted - explain in detail. 5. Avoid controversial matters if possible. 6. Explain how and why important rules were formulated. 7. Include background of policies used by the company. 8. Create interest by the use of color, photographs and illustrations. 9. Revise the handbook periodically. lO. Enlist the aid and advice of supervisors in the preparation of the handbook. Makigg the Annual Report A good annual report is a vital instrument in a corpora- tion's relationship to the "publics" with which it deals: stockholders, employees, financial institutions, suppliers and distributors; customers; and the general public. zMee, 92. cit., p. 809 50 Be :fore preparing the annual report, the company must ascertain which are its most important "publics" so that it may fulfill their needs as much as possible. The obligation to the stockholders is the most important objective of the annual report. A valuable aid to furthering personnel rela- 1ions is another objective of the annual report. In recent years the trend has become more and more in favor of presenting financial information to the employees. When the question of preparing two separate reports arises, one for stockholders, the other for the employees, careful °°naideration must be given to this problem. Will the advan- tasee of two statements outweigh the disadvantages? L3 c. lirate. If two different reports are made, there is a 9°931bility of sharp criticism by the employees. The em- ployees either discount the statement or regard it as propa- ganda. More harm than good then results because of manage- ment's desire to share financial information with the employees. The emDnaoyees may feel that management considers them unintel- ligent enough to read detailed stockholders' reports. True, many of the terms used in the regular report have no meaning to the average employee, but, on the other hand, do they hold any Ere at significance for the average stockholder? Whether or not ”two reports are made, the fact remains that the informs- tion must be accurate and unbiased. If a separate report is ma . . . de 130:- distribution to the employees, a helpful suggestion is t that it be certified by an independent, public auditing 51 firm as being accurate and reporting the true financial pic- ture 0f the company, just as the other report is certified by the auditors. 1 Interesting. The report must be interesting as well as accurate. in pertinent data about which the employee has in- dicated an interest must be presented in the report. The re- port must be in such form that the employees will besatisfied. What are these points of interest? The question of company PI'OfitB: past and future, and their distribution is, of course, of first concern to the stockholders. The dividend policy is always °£ interest to the investors, for they are always de- manding higher returns on their investments and looking for tips as ‘to the future. Other relevant facts are sales and sales I‘a‘tios, depreciation, improvements, taxes and how much were they deprived because it was reinvested in the company for 8x79 ansion purposes. If management can present all these facts Satisfactorily and with justification, the stockholders will bQ happy. In order to keep the employees happy, information con- cermng their salaries in relation to sales, profits and man- agemeq‘t's compensation must be supplied. It might be well to Show how insignificant management' 8 remuneration actually is, in reletion to the employees' salaries. Qreamlined. Streamlining the annual report has been a s “‘03th for conjecture for many years. Most companies are 8 . . . . 1:11le hard to make their reports more attractive and more readable. 52 Good layout is a necessity to a streamlined report. Better arrangement of facts and figures is a big step in the modernizati on of the reports. Summaries of the statistics given on ea ch page provide a more pleasing and readily under- standable report. Facts presented in chart form, illustrations and graphs are 83811)? understood and are other points to be considered in the streamlining process. . The JPaport should be thick enough to indicate complete- ness, Yet riot too thick. A bulky report tends to scare the reader- The cliover of the annual report is another important will”0 under consideration. It should be easily identified and present a dignified appearance. Use of the company seal or tradQ—mark on the cover is a point well worth considera- tion. Paper for the annual report should be substantial, but not 6x9 ensive; in fact, it should be more on the conservative side. The matter of cost should always be examined very close- 1 . y The report should not appear too costly; however, it sho 111:1 not appear "pinched." E\§Silj understood by all. The last prerequisite of the annual report is that it be clear and easily read by everyone. T - hat 18 to say, facts and figures must be presented in such a me? that they are easily graSped by all. Summaries of I. lg“res are a valuable aid. Likewise, facts which are not , 5C5 essential to the common reader should be omitted. Detailed statistics are important only to the investment houses and financial, institutions. If necessary, to assure understand- ing, we must prepare two forms - this is the answer. However, the faCtS must be carefully weighed, as previously suggested. Brevity, concentration and stress on the essentials should be characteristics of every good report.4 \Dale Ernest (Editor). Preparation of CompanLAnnual W. American Management Association. Research Report— 31' 10, 1946. p. 23. CHAPTER VI ROLE OF THE UNION IN COMMUNICATIONS Under our present system of organized labor, it is im- pOBSible‘ “'23 o exclude unions as a channel of communications. The union represents the worker and provides means of trans- mittins K1aeriagement's plans and policies. Unions are very interested in any company decisions which might affect their membereo Hence, they waste no time in passing these decisions on t0 “1% employees. In ‘the past, unions have been the dominating, voice. SlipeI‘VisOrs have been undermined by the unions' dominance over the workers, but more confidence has been placed on the Burner":Lsor‘s information and this situation has been eased conglciQrably. If supervisors present the same material as the unions, the employees become a little more reliant upon the BuEervisors as an informed source. Unions have forced this upgrading of the supervisors, because management recog- nized ‘the need of gaining employees' confidence in their BUperV :isors . Likewise, union support of any information given to em— Dloyees insures rapid employee acceptance. Unions have thus been h 1 ful in increa 1 reduction. In man cases the e p 8 1'18 P y : unions have supported time and motion studies and job evalua- tion reviews. This union support has helped to increase e mployees' production and salaries. Unions also serve as regulators of information. They channel iniormation to the employees as they see fit. ianage- ment must never bypass unions in communicating any informa- tion which. directly affects the employees‘ jobs, salaries or benefits. Therefore, management and unions must work together ‘30 keep 111:1? ormation flowing up and down the channels of com— munication - Unions also have a leading role in backing up grievances and PrOVid-ing grievance procedures. The union steward acts ‘18 employe es' counsel in the review of grievances. In the true 891133 of the meaning, they are law-enforcement officers. They makQ certain that the company lives up to its promises t0 the Workers. Handling of Grievances Through Correct and Prompt Channels No labor agreement was ever so perfectly written that the 611113 loyees had no "@ipes." When complaints arise, they must be handled promptly and justly. If possible, the immediate superv3~sor of the employee who has a grievance should try to Correct any wrongdoing and alleviate any hard feelings. In case the supervisor is unable to remove the grievance, it sh oulq be referred to the prOper authority who is able to re ‘ ndeb aid. There should be no "passing the buck." mile union contract should be carefully written so as to inc . luqe a grievance clause. The grievance clause should in clude a definition of a grievance, steps to be taken to F )6 insure iunzieadiate handling and the channels of communication to be folLLucnwed to make sure the proper authorities are notified. Diligence in preparing the grievance clause may prevent head- aches in the future. One company posts printed copies of the union contract ifl'eVQTY’Cless of the other. Management, to some extent, realizes the value of unions in CMpleting the chain of communications. However, it is doubtful if chain store executives would enlist unions to he 11) them if none existed within their organization. Manage- ment has seen the complications which arise when the unions and management are in discord. Rather than take this chance 201- better communications, management would much rather set LII) employee associations or company-sponsored organizations t9 promote employee welfare. Unions are here to stay for a long time. If they are Qt‘ganized in the reader's company, he should make the best Q? the situation. Disunited, nothing can be accomplished; erking in harmony, much can be accomplished. CHAPTER VII DEVELOPING A GOOD COMMUNICATIONS PROGRAM Every company should have a planned and written communica- tions program. No one can tell exactly what should be included in the individual company's program. The company itself is the best judge as to the necessary items required to build a sound and workable program. By the same token, it is not wise to go out and purchase a communications program. These programs are 31181; like a custom-made suit -- tailored to the exact tastes of the individual. Set Up the ObjectiVes Just as the traveler must have a road map when planning a '13::ip, or a baker a recipe to bake a cake, so must a company haVe its objectives set up to guide it in building a good 'pqc”c>gram. This guide also sets standards by which the program is junCiged. The over-all purpose of a communications program is lthC) carry orders and information to their right sources at the 1?:i-éght time and to take the "pulse" of the organization. Super- ‘r:i~£30rs.must know labor's reaction to the company plans and bk‘egrams if they are to plan effectively. Basic objectives Q tldzluld be : 60 1. To inform all that management is responsible and therefore should be constantly kept informed; 2. To raise the workers' standard of living by increas- ing his productivity. 3. To present management's position on controversial matters, so there will be no misunderstandings as to what it expects. 4. To form a well-knit, smooth-running organization through the channeling of information to the right places, where it may be quickly acted upon. Classify Information to be Transmitted When considering the information to be passed on to the °E¥I>3Loyees, it is necessary to consider what particular ideas '551?ee necessary to give management its broad outlook on busi- neas Operations. However, the company must be sure the in- f‘Ditunation is what the employees want to know and that it satisfies the employees' inquisitive minds. Information concerning company products, sales and cost ‘iqcllilysis should be passed on to the employees. Of course, it :1'53 tantamount that such business statistics satisfy the em— ::>:l~oyees' curiosities. Our basic problem is to supply them ‘wv:i