Assignment Code: 9575 Date of Allotment: 30th July 2012 Date of Completion: 30th July 2012 Words: 2000/2500

Title: Managing communication.

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

LIST OF FIGURE Figure 1 Gudykunst (1998).............................................................................4

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 while communicating. For instance, you might think that you know what the other person is going to say, so you simply leave the conversation.

3. Improper Use of Questions- Sometimes improper questions or multiple questions can make the situation awkward. 4. Non-Verbal Signals- Non verbal communication becomes a major hindrance sometimes for 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 individualismCollectivism 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 promoting the 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 connecting with its customers through a genuine engagement with Indian culture. Cognitive dissonance theoryThis 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 business communication 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 if they 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, text messages 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 implement business communication technology into its operations, and also needs to employ an

individual capable of handling maintenance issues, which becomes a costly affair for the firm. Difficulty Training Employees-Banks face difficulty training employees to use new technology. 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. Sender There should be a sender who wants s to communicate the idea. 2. Message A message can be of different type written, oral & nonverbal communications. 3. Chanel Messages are conveyed through channels, with non-verbal & verbal social interactions like televisions, telephone, meetings, conferences etc. 4. Receiver A receiver is a person who receives the message from the sender. The receiver then tries to understands the message 5. Feedback The receiver will give feedback according to its understanding of the message. 6. Context The 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 role in 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 to focus 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.

REFERENCE
Applegate, J., & Sypher.h, n.d. A constrtivist outline. In W.B. gudykunst, intercultural communication theory. (pp.63-78). Beverly hills, CA: Sage. Brownsell.A. 2010. HSBC launches Brazilian culture sponsorship programme. [Online] Retrieved from < http://www.marketingmagazine.co.uk/news/1010410/HSBC-launchesBrazilian-cultural-sponsorship-programme/?DCMP=ILC-SEARCH> [Assessed on 30th July 2012]. Gudykunst. W., n.d . Cross-Cultural and Intercultural Communication [online] Retrieved from < http://books.google.co.in/books?id=5sjpr1ypmcC&pg=PA13&lpg=PA13&dq=how+communication+is+influenced+by+values+and +culture+factors&source=bl&ots=GDeid3JG11&sig=aHHZIHqpXM6XnH_jIttbd8TgR4g&hl=e n&sa=X&ei=hTkWUPSeHcPZrQe4yIDQCg&ved=0CDUQ6AEwAA#v=onepage&q=how%20c ommunication%20is%20influenced%20by%20values%20and%20culture%20factors&f=false> [Assessed on 30th July 2012]. Harthi.F .2012. Cultural orientation programme of HSBC bank Oman [online] Retrieved from <http://main.omanobserver.om/node/101229> [Assessed on 30th July 2012]. Harvey.C ,n.d. Managing communication conflict [online] Retrieved from <http://www.odu.edu/~jritz/oted885/ManagingCommunicationConflict.pdf> [Assessed on 30th July 2012]. HSBC , n.d. Electronic communication [online] Retrieved from<http://www.hsbc.com/1/2/investor-relations/services-tools/e-comm> [Assessed on 30th July 2012].

HSBC homepage [online] Retrieved from <http://www.hsbc.co.in/1/2/homepage> [Assessed on 30th July 2012]. HSBC,n.d. Communicating with employees [online] retrieved from<http://www.knowledge.hsbc.co.uk/run/human+resources/manage+employees/com municating+with+employees> [Assessed on 30th July 2012]. Ivythesis, n.d. HSBC communication [online] Retrieved from <http://www.ivythesis.com/samples/Internet%20at%20HSBC.htm> [Assessed on 30th July 2012]. Maya Pillai. 2011. Barriers to effective communication [online] Retrieved from <http://www.buzzle.com/articles/barriers-to-effective-communication.html> [Assessed on 30th July 2012]. Graw hill, n.d communication theories [online] Retrieved <http://www.mhhe.com/mayfieldpub/westturner/student_resources/theories.htm> [Assessed on 30th July 2012].
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