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ABSTRACT
This case study discusses about how the concept of organizational structure that is
implemented by CAPCO (flat organizational) and by using elements of human
resource development can bring to effective communication. CAPCO is a leading
international provider of consulting, managed services and technology solutions for
the financial services industry. By using the secondary data, this paper will take you
to understand the journey of CAPCO in creating the effective communication in their
organization by using their human resource development tools that are, training,
recruitment, matrix structure team and professional development.
Keywords: effective communication, organizational structure, matrix structure team
and training.
INTRODUCTION
WHAT IS EFFECTIVE COMMUNICATION?
Effective communication can help an individual or organization to better
understand a person or situation that enables them to resolve a different opinion in
a group of people or organization, build trust and respect, and create an
environment where creative ideas, problem solving, affection, and caring can
flourish. Effective communication can improve relationships at home, work, and in
social situations by deepening an individual or organization connected to others and
improving teamwork, decision-making, and problem solving. It enables a person to
communicate even negative or difficult messages without creating conflict or
destroying trust (Deepti Mishra and Alok Mishra, 2009).
organizational communication.
Effective communication in the organization is also necessary to address other
organizational aspects such as innovation, organizational learning, knowledge
Work being carried out is complex in nature and requires greater coordination
and interaction among workers.
Knowledge and innovation are very critical for the competitive advantage of
the organization.
According to Fred T. Allen, the chairman and president of Pitney Bowes, believe that
the better informed employees are, the better employees they will be. Therefore,
communication is essential to an organization. Information is vital to effective
communication. The Person who control information control power. (Gerald M.
Goldhaber, 1990)
This is because the production processes of today emphasize greater collaboration
and teamwork among employees in different functional groups. Further the rapid
advancement in the communication technologies has also contributed to the
transformation of both work and organizational structure.
Communication is defined as the exchange of ideas, messages, or information by
speech, signals, or writing. The basic function of communication is to affect receiver
knowledge or behavior by informing, directing, regulating, socializing, and
persuading.
Communication is an important tool for the development of an organization. It is
critical to effective management. It is something which helps the management to
perform the basic functions of managing the organization such as leading, planning,
Compliance-gaining
Sense-making
All the essential information must be communicated to the managers who in-turn
must communicate the plans so as to implement them. Organizing also requires
effective communication with others about their job task. Similarly, leaders as
managers must communicate effectively with their subordinates so as to achieve
the team goals. Controlling is not possible without written and oral communication.
Communication helps achieve the desired outcomes for the employee and the
organization in a variety of ways.
Faulty communication in the organization can lead to the lowered efficiency and
effectiveness of the organization as well as at the individual levels. Also, it may
become a cause of the interpersonal friction between the employees.
Communication in the organization can be formal and informal communications. It
can be inside the organization (internal communication) and can be outside the
organization (external communication). Internal communication is a process where
all employees take part unlike external communication where only some employees
take part. Internal organizational communication practices include newsletters,
presentations, strategic communications, work direction, performance reviews,
meetings and more while the external communications are directed to the public,
customers, suppliers, media, and other stakeholders. External communications can
also be inter-organizational.
Initially
greater emphasis
was
directed
at
vertical
organizational
communication.
Vertical
communication
can
be
downward
communication
communication
from
the
also
known
as
management
top-down
to
the
communication
employees.
This
is
form
the
of
services,
and
demonstrating
that
communication
also
known
as
bottom-up
communication
is
the
creativity in the employees and they are motivated to make a contribution to the
strategic goals of the organization.
"Many of the problems that occur in an organization are the direct result of people
failing to communicate or communicating ineffectively"
command from top to bottom will be short and the span of control is wide, by using
this structure of organizational the communication among the team leadership and
the employees can be clear an effective.
The structure of a flat organizational uses a team based project, also known as
matrix structure. This matrix structure is a method to build a cross-functional team,
where every single person on the team was from a different field of the business
that were combined together. This structure was highly motivated and empowered
workforce with everyone, the employee have access to advice and coaching and
using a bottom up leadership approach where employees are able to ask questions
and give a suggestion for improvements to the high company management team, it
is said that all have open access.
Capco really focuses on an open and effective communication in their organization
to flourish ideas, sharing, innovation, creativity and promoting a new way of
thinking. Capco believes in open lines of communication and its structure and
culture has created honest channels of communication.
Elaine Crowe is a Relocation Manager for the Rank Group; a European gaming and
leisure group and the Chair of the UK Relocation Users Group, shared:
Honest communication is a vital ingredient in creating a long lasting professional
relationship. It should allow each partner to meet expectations and together obtain
a united framework for every move, regardless of the different relocation
requirements. There are often lots of buzz words to describe the basics, but as they
always remain the same; conscientious, caring, cooperation, clear and concise
communication. (Dominic Tidey, 2004)
The employees of Capco were encouraged to share their entrepreneurial ideas to
the leadership team of Capco through its local and regional forum event to
disseminate information about the development in the business, as well as giving
employees an opportunity to socialize. One of the examples, where the story, one of
the Capcos employees shared his idea to develop an internal social networking site
called CapInTouch for Capcos employee to communicate remotely on a client site
Within Capco, they used Rocket Method to
Rocket team was the name of a method for a team working, communication and
create decision-making. There will be several Rocket teams that will develop ideas
to solve a certain client problem given to them, then they will share among the
teams, what are their ideas and the best solution idea will be getting for this
method of ideas generation and sharing. This is how the Capco create an effective
communication among the employees and employees to the upper leadership
team, it will be discussed further in this case analysis.
HYPOTHESIS
The hypotheses are shown in the following figure
Organizational
Structure
Recruitment
Training
Matrix
Structure
Professional
Development
Effective
Communication
Professional
development
in
CAPCO
positively
affects
the
effective
METHODOLOGY
In order to examine the effective communication in organizations, a content
analysis of data and articles regarding elements in the effective communication
need analysis were carried out. All these documents were extracted from various
resources such as journal, articles, data from the companys website and later were
analyzed.
Enormous, because effective recruiting is the foundation upon which any talent
management program is built. This report has presented a model of the ideal
recruitment process based on academic research and practitioner reports, and
recommendations for conducting an effective recruitment campaign. To get
1 Recruiting and Talent, A SHRM modul (2004)
maximum benefit from these recommendations, you should customize them to fit
your organizations unique situation. 2
Traditional Recruitment and Online Recruitment
Doing traditional recruitment is one of hardest matter in Human Resources
Management. It includes different step start from fill in forms until training. It might
incur cost and time. However, this traditional recruitment will make organization
assured to recruit employee as employer believes in their credibility as they has
gone through many stages in order to be recruited in the company. Different from
CAPCO, they have an Associates Talent Program (ATP) which is they used social
media called LinkedIn to promote this program to attract applicants. Even though
CAPCOs new associates undertake an intensive training, but they will only attach to
training in class, but they do not have assessment after training and it might make
applicants forget what they learned.
When analyzing on training and recruitment, we found out that the best way to
implement it is by using effective communication between the employee. Therefore,
we can say that CAPCO is using the right and good strategy in emphasizing
effective communication in its organization.
CAPCO is applying a unique organizational structure in its organization. As has been
mentioned in the introduction,CAPCO is implementing a flat organization structure
in
their
management.
organization or delayering)
structure with
few
or
no
A flat
is
an
levels
organization (also
organization
of
that
known
as horizontal
has
an organizational
middle management
across the
organization.
- CAPCO
employees
guidance
and
reward:
true
meritocracy
where
performance
is
the employees that give the best effort and performance. The result of all this
investment and also as a compliment towards the employees can lead to the
development in company management whereby more experienced and skillful
people will take the lead in this company and coaching and mentoring the new lead
or the newcomers in the company.
The other way of CAPCO gives apply the professional development towards its
employee by the forum.The CAPCOs local and regional offices will host the regular
forum to disseminate information about the development in the business. With this
also CAPCO give the opportunity to its employees to communicate and socialize
with each other. This opportunity to communicate with each other combining with
the uniqueness of its flat organization structure creates the larger opportunity for
the employees whereby the employees can put forward their entrepreneurial ideas
to the leadership team.
We can analyze working in the team actually is the best way of implementing the
effective communication between the employee. So, here we can say that CAPCO is
using the right and good strategy in emphasizing effective communication in its
organization.
Besides,
effective
communication
also
helps
in
developing
professional development
Explanation Figure 1
Salary and Reward
Flat Organization
Training and Development Program
EMPLOYE
R
EMPLOYE
ES
CUSTOME
RS
for
the Capco
Public Relation Event
Corporate Social Responsibility
division to work together and solve problems, with creative ideas. CAPCO also
leaves their employee to freely ask questions and suggest improvements,
they have all open access. Furthermore, they provide forums for their
employee to put forward their entrepreneurial ideas to the leadership team
and sometimes if a task is urgent then it is preferable to do small team or
even individual to undertake the task to ensure focus. This will lead employee
to have their own personal development.
The Sunday Times also stated that 87% said that CAPCO is good for personal
growth. CAPCO does training for their employees by using eLearning and
classroom training opportunity delivered by seasoned CAPCO professional.
CAPCO created an internal social networking site called CalpInTouch to solve
problem that faced by employees which is hard to keep in touch with other
staff, as working in different locations and projects.
2) From the site of the employer, CAPCO put a biggest trust and benefits to the
employee. In return for that, employee will provides good services to
customer as what satisfaction they have from the employer. But before that,
for whom who worked for CAPCO will relief because CAPCO implement Equal
Employment Policy.
The Company stands committed to its philosophy that all employees are entitled to
equal employment opportunities. This policy applies to all personnel actions,
including compensation, benefits, discipline, transfers, promotions, layoffs, leaves of
absence, terminations, and participation in Company-administered activities. The
Company also affirmatively recruits and hires individuals based upon demonstrated
abilities, achievements and experience, without regard to race, color, religion, age,
national origin or ancestry, sex, pregnancy, citizenship status, veteran status,
marital status, physical or mental disability, medical conditions, sexual orientation,
or any other consideration made unlawful by Federal, state or local laws.
Besides that, in order to provide good services to customer, employee will work in
teams called as a project based team. Basically, they will form a team and the
projects with the assistance of different department to provide excellent services.
The skills and experience and ability to think differently are important components
that CAPCO offers to clients. Idea generation for their clients developed through
CAPCOs
rocket
method
as
it
is
covering
all
aspects
of
team
working,
RESULTS
Base on the hypothesis and after analyzing the data using the content analysis of
secondary data such as journal, article and company website, we can prove that our
hypothesis about training in CAPCO positively affect the effective communication in
the organization structure of CAPCO is proved. Then the second hypothesis about
the recruitment in CAPCO positively affect the effective communication in the
organization structure CAPCO is also proved. Third hypothesis is about the matrix
structure team in CAPCO positively affects the effective communication in the
organization structure of CAPCO is proved and fourth hypothesis about professional
development in CAPCO positively affect the effective communication in the
organization structure of CAPCO is also proved.
REFERENCES
Aleksander P. J. Ellis Bradford S. Bell Robert E. Ployha (2005) The Impact of Taskand Team-Generic Teamwork Skills Training on Team Effectivenes
Bolarinwa and D. Y. Olorunfemi, (2009) Organizational Communication for
Organizational Climate and Quality Service in Academic Libraries, J.A.
APPENDIX
1. Rocket Team.