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Assignment Code: 9575

Date of Allotment: 30th July 2012

Date of Completion: 30th July 2012

Words: 2000/2500

Title: Managing communication.

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Contents

INTRODUCTION .......................................................................................................................... 1

The HSBC and its stakeholders ................................................................................................... 1

Information required by stakeholders in different organizations ................................................ 1

Systems used for communicating with the HSBC stakeholders ................................................. 1

Potential barriers at work place communication. ........................................................................ 2

Influence of culture or values on communication. ...................................................................... 3

Cultural individualism-............................................................................................................ 3

Cognitive dissonance theory- .................................................................................................. 4

The use of technology- how it helps communication and how it can hinder communication .... 5

The procedure of communication from sender to receiver: ........................................................ 6

Recommendations for the improvement of the HSBC communication ...................................... 6

Measures that should be taken to have a effective Communication Plan ................................... 7

Positive indicators that communication is more likely to be handled daily: ............................... 7

REFERENCE .................................................................................................................................. 8

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LIST OF FIGURE

Figure 1 Gudykunst (1998).............................................................................4

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INTRODUCTION

HSBC is a British multinational banking and financial services company, which is

headquartered in London, U.K. According to Forbes magazine in 2011 it was the world's 2nd

largest financial services and banking group. HSBC is a universal bank and is organized within 4

commerce groups: Global private banking, Commercial banking, Global banking and Markets,

Retail banking and Wealth management.

The HSBC and its stakeholders

Customers, Supplier, Creditor,

Other banking & financing institutions, The society &environment.

There are various information needed by the stakeholders, for example the bank

customers need to know about their account updates like balance, interest, bank charges etc. The

creditors need to know the majority period, the interest rate, the position of the debtor etc.

The other banking & financial institutions are interested to know about the bank turnover,

the working of the bank, for analyzing and to know there position in the market.

The society needs to know the working style of the bank to make sure there is no

violation of law like child labor, exploitation of employees, harm to environment etc.

Information required by stakeholders in different organizations

Monitoring & evaluation consists of data analysis and data collection. It is first needed to

analyze organization functions from farmers in all level to national planners and to determine the

actions related to project. Related personnel or institutions in all level require information for its

related subject. Responsible agency requires information about project impacts and results for

better project planning and control in the future. Almost all firms deliver reports to inform all the

stakeholders and also publicize to the related person by means of regular reports.

Systems used for communicating with the HSBC stakeholders

The HSBC uses both internal & external communication. There are different ways in

which it communicates with customers; these are by oral, written, visual and electronic. In oral,

HSBC talks face to face, in meetings, seminars, telephone calls and radio ads. In written HSBC

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communicates via typed reports letters leaflets, newspaper articles and marketing booklets.

Visual communication includes television, training DVDs, video conferencing and posters.

Finally, electronic communication continues to expand as technology develops. This includes

WebExs, email, instant messenger, text, internet, websites, texting, web ads & Smart Phone

applications.

In 1989, HSBCs UK arm launched First Direct, the countrys first complete 24/365

banking service by telephone. An Internet version of the service firstdirect.com already has

270,000 clients.

It also adopted a clicks & mortar strategy. In which the customer Internet offerings

must meet customer needs and preferences, they must be multinational in scope and they must fit

HSBCs existing distribution channels.

IBM as developed Interactive Financial Services system which links in with the full

range of customers own technology: mobile phones, interactive TV, Internet and other wireless

modes of data transmission. IFS are designed to give HSBCs customers the freedom to access

their finances when they wish. HSBC launched the UKs first nationally available TV banking

service digital satellite provided by Sky in 1999. This has already attracted over 126,000

customers.

During 2000, HSBC has developed hsbc.com as a brand name and a portal for its

consumer services. By the end of 2000, Internet banking was available to HSBC customers in 11

of its businesses it also started banking by mobile phone using WAP technology in France and

Brazil.

Potential barriers at work place communication.

1. Poor Listening Skills- Poor listening can result from: Passive listening rather than active involvement with the speaker, Lack of involvement with the other person or the topic at hand, Disagreement with the speaker, resulting in mentally "shutting off" the other person, Distractions in the environment such as excessive noise or activity.

2. Wrong Assumptions- There are many assumptions that a person makes whilecommunicating. For instance, you might think that you know what the other person is

going to say, so you simply leave the conversation.

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3. Improper Use of Questions- Sometimes improper questions or multiple questions canmake the situation awkward.

4. Non-Verbal Signals- Non verbal communication becomes a major hindrance sometimesfor example if your non-verbal signals are contradicting what your mouth is saying; the

person is going to remember what you didn't say. The communication theory should be

used to understand the barriers in the communication for e.g. Uncertainly Reduction

Theory- this theory suggests that when unfamiliar people meet, their main focus is on

decreasing their levels of uncertainty in the situation. Their levels of uncertainty are

located in both cognitive and behavioral area. A person is highly motivated to use

communication to reduce their uncertainty according to this theory.

Influence of culture or values on communication.

There is a culturally different ways of communicating- the use of particular meanings and

means of communication that can be found in particular places, times and social backgrounds.

Communication is also influenced by people personalities, their values or their self

understandings. The following shows the diagram of the different culture norms affecting

communication. The influence of culture & values on communication is as under:

Figure 2 Gudykunst (1998)

Cultural individualism-

Collectivism influences communication in a culture through the culture norms associated with

the major culture tendency. It indirectly influences communication through the characteristic

individual learn when they are socialized. E.g. an Asian culture tends to have collectivistic norms

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and the US tends to have individualistic norms. Since HSBC provides its services in both The

United States & the Asian countries it has to keep in mind the cultural difference whether the

country is cultural individualism or collectivism and accordingly plan the communication

strategy.

High & Low context communication is used in all cultures. People of collectivistic

cultures tend to use high- context messages when maintaining in group harmony and

communicate in a direct way. People of individualistic cultures, in contrast, tend to use low

context communication and communicate in a direct style (Gudykunst& Ting-Toomey, 1988)

High uncertainty avoidance cultures tend to have clear norms to guide behavior for

almost all situations, whereas norms in low uncertainty avoidance cultures are not as clear-cut

and strict as those in high uncertainty avoidance cultures. For cross culture a popular

communication theory is there that is Face-negotiation theory

this theory is concerned with how people in collectivistic & individualistic cultures discuss in

conflict situations. (Gudykunst, n.d).

HSBC pays lot of attention in cultural differences and try to understand and remove the

gap of communication. Some of the programs done by HSBC are:

HSBC's cultural exchange programme - HSBC's firmness on accepting and promotingthe local culture is at the heart of both its cultural exchange programme and its business

strategy. HSBC International Residency Programme: It gave creative persons the chance to spend

time in a different culture to discover diverse ways of creating, thinking, and also share

their knowledge with the host community. HSBC worked with local cultural teams to

place a Russian circus entertainer in Australia, a Kazakh poet in Canada, Chinese

designer in the UK and a Hungarian musician in Brazil.

Indian summer cultural Programme This Program was a feasible way of connectingwith its customers through a genuine engagement with Indian culture.

Cognitive dissonance theory-

This theory argues that the experience of difference of opinion is aversive and people are

highly motivated to avoid it. In their efforts to avoid feelings of disagreement, people will avoid

hearing views that oppose their own, change their beliefs to match their actions, and seek support

after making a difficult decision.

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The use of technology- how it helps communication and how it can hinder communication

To begin with, communication is important basis of our society. The start of

communication technology and its variety of benefits has made conducting business easier

globally.

Financial Savings- The biggest advantage of the improvement of technology in businesscommunication is the financial savings. Tasks that once took huge amount of money can

now be completed easily and with less amount... E.g. before Voice of Internet Protocol

technology, placing a long distance call was expensive. Now VoIP and cellular telephone

technology has become far cheaper. Similarly the only way to send letters from one place

to another was to engage a messenger or postal service. The email, however, has

eliminated the need to transport hard copies.

Expediency- technology has also increased the speed in which business is conducted.This is especially beneficial to banks that have interaction with clients in far-away

locations. E.g. before firms had to plan meetings for individuals who are in different

locations. Now, they can convene from their respective locations as a result of various

conferencing technologies.

Specialized Employment- Many jobs that never before existed that have been created.Skilled professionals are required to maintain, install operate new information technology

tools.On the other hand, the technology may also cause hindrance to the business communication such

as:

Impersonal Perception-. Employees may see electronic communication as impersonal ifthey only receive messages from managers through email. It can also create confusion

requiring seeking more feedback than normal compared to personal communication

methods.

Security Issues- Using new technology also creates various security issues. Emails, textmessages and other website communication are often vulnerable to hackers or other

individuals who should not have access to certain information.

High tech Equipment Expense-Banks have to purchase new equipment to implementbusiness communication technology into its operations, and also needs to employ an

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individual capable of handling maintenance issues, which becomes a costly affair for the

firm.

Difficulty Training Employees-Banks face difficulty training employees to use newtechnology. They may have a difficult time understanding the technology and how these

processes work. Banks may need to spend lot of money to train employees.

The procedure of communication from sender to receiver:

1. SenderThere should be a sender who wants s to communicate the idea.

2. MessageA message can be of different type written, oral & nonverbal communications.

3. ChanelMessages are conveyed through channels, with nonverbal & verbal social interactions

like televisions, telephone, meetings, conferences etc.

4. ReceiverA receiver is a person who receives the message from the sender. The receiver then tries

to understands the message

5. FeedbackThe receiver will give feedback according to its understanding of the message.

6. ContextThe situation in which your message is delivered is the context.

This may include the surrounding or environment.

Recommendations for the improvement of the HSBC communication

To improve cultural communication between the manager & the subordinate, the

following are the actions that can be taken:

Implementation of more Intensive Information System: Technology plays an essential rolein the activities of business, Therefore it is essential to improve the Information system of

the organization by making sure that all of the employees will be connected to the latest

updated communication system. It is also significant to focus on the various coaching and

training procedures, where the recruits can apply for and get online class and seminars

about different knowledge and skills, which will be supportive in order to fully motivate

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them to develop and improve, also leaders will have their thoughts about the demands

and needs of the staff, which will be helpful in the process of implementing and planning

programmes and measures that will help to improve the motivation and spirit of the staff.

Focus more on the Culture influence on Communication: It is significant for the firms tofocus on the different cultures, and how it can effect on their communication. Therefore

the following can be done to improve communication in cultural differences:

cultural awareness communication training intercultural training intercultural management training cross cultural courses translation services

Measures that should be taken to have a effective Communication Plan

Pay attention on barriers to communication. Make improved communication part of a strategic plan. Have system in place, which surface opportunities for improved communication. Have a simple assessment to rate the communication skills the HSBC is skilled at and

those that need polishing.

Regularly provide training for building communication skills and interpersonal skills. Track what needs messaging and how visible it is to the crowd. A team should be put in charge of the Communication Plan.

Positive indicators that communication is more likely to be handled daily:

Visible measure & indicators Standing agenda point that get people talking about communication A culture that endorses direct yet non-threatening dialog in interpersonal relations. A culture that understands non-verbal communications.

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