TRANSACTIONAL AND CONSTRUCTIVIST COMMUNICATION MODELS

 

QUESTION

With relevant examples, describe in detail any two communication models used in the business environment.

    Look at those red new leaves! Beautiful! The leaves are red when young, starting to turn green from about one to one-and-a-half weeks. 
 

SUGGESTED ANSWER

Communication is the exchange of meanings between individuals through a shared system of sounds, signs and other forms of message.

                       The Transactional Model of Communication

In the transactional model of communication, at one point party A is the sender and party B is the receiver; in the next moment, party B becomes the sender and party A becomes the receiver. That is, the sender/receiver status alternates between the two parties. In other words, when one party receives a message from the sender, they become the sender themselves when they give feedback. The original sender now becomes the receiver (the feedback is the message they receive).

As a result of the switching of status from sender to receiver and back, parties A and B are referred to as communicators rather than sender and receiver. This also explains why the model is said to be “transactional”, whichis a word normally associated with the commercial activities of buying andselling. Indeed, in business transactions, there is something to give and also something to receiver for each of the parties (who we call C and D). We give an example of a business transaction in the next paragraph.

C is selling a wrist watch and D is buying the wrist watch at $25. One set of actions involves C physically offering the watch to D and D taking possession of the watch (in which C could be called the sender and D the receiver). There is then a second set of actions in which D physically offers $25 to C and C accepts the money (this now makes D the sender and C the receiver). This is how transactional communication mirrors a commercial exchange.

            Transactional communication is two-way interaction. It is real-time exchange of messages. As a result, both parties are normally present, though not necessarily in the same place. Examples of transactional communication include face-to-face speaking, a skype talk and a message exchange in a chat room.

Diagram 1, below, illustrates transactional communication.

 

Criticism of the transactional model

·         A response is a necessity. Without a verbal response, it is not easy for the sender to be confident the message has been received as intended.

·         Since the message exchange is concomitant, interference is a big possibility.

 

The Constructivist Model of Communication

Constructivism was first used by Jean Piaget to describe the learning and cognitive processes of children. The constructivist model of communication is, in the general sense, much in line with that, as it is based on the principle that the real meaning of what has to be conveyed in messages comes out through the social process of communication.

The constructivist model focuses on the common ground or negotiated meaning reached as the communicators (sender and receiver) clarify the key components of the messages going in each direction.

Constructivist communication is exchange of meanings that develops through reaching a common understanding on different things. It is bout people getting to a stage where they start getting the same meaning from particular signals, sounds and other kinds of communication package. The way a child learns to communicate is indeed one example of a constructivist model of communication.

Constructivism learning is influenced by past experience of the learners/teachers which enables them to ascribe meaning to different motions, sounds, and other specific types of communication effort.

To further help one conceptualise constructivist communication, one could imagine two people who spoke completely different languages coming to live together and somehow finding ways to understand each other.

 

Figure 2 illustrates the concept of constructivist communication.

 Significance of the constructivist model of communication

Constructivism in communication provides the basis for mutual understanding. The constructivist model is a reminder that there may not be effective communication if the communicating parties do not ensure that what one word or phrase means to party X is what it also means to party Y.

A lot of communication requires that action be taken by the sender/receiver in accordance with the message sent/received. No action is likely to address the expectation if the sender/receiver do not have a common interpretation of the ideas exchanged in the communication.

Criticism of the constructivist approach

A constructivist approach to communication, among students, could mean an undirected, principle-less study system that eventually leaves learners frustrated and ending up nowhere (as they may not know exactly where they are supposed to go).

Conclusion

The transactional and the constructivist communication models are not the only models of communication identified by different researchers on the subject. However, they are among the most basic and, in that way, could help set the foundation that scholars of communication can build on to uncover or create new perspectives on the subject.  

MERITS AND DEMERITS OF CENTRALISATION AND DECENTRALISATION IN MANAGEMENT

 

QUESTION

Briefly analyse the merits and demerits of centralisation and decentralisation.

 

SUGGESTED ANSWER

Centralisation

Centralisation is a management approach in which the top level of an organisation makes all the material decisions.

Advantages of centralised management

·         The command framework is clear. There is little confusion as to who directs what activity.

·         In times of emergency, response can be quick owing to plainness of authority and responsibility structure.

·         Employees tend to concentrate on developing a smaller skill set, which they tend to polish up well. They do not have to master any real management skills, which could simply be a strain on their obviously scarce time.

·         It is more likely the firm will operate as a single unit with minimal pulling in different directions.

Disadvantages of centralised management

·         Where a situation needs detailed information from a specific locality, top management

may not fully understand the situation. As a result, any action taken may also not be good enough.

·         Workers may not have enough motivation to work if everything appears dictated down to them by top management.

·         Repetitive and limited scope of work can be a disadvantage to employees interested in grown by way of learning and management responsibilities, especially as the organization expands.  

·         Overall company performance may go down when workers feel they are simply carrying out someone else’s instructions and not what they are part of.

·         Total centralisation may deny the organisation valuable input from talented people in lower echelons.

 

Decentralisation

This is when top management and lower-levels share management authority and responsibilities.

Advantages of decentralisation

·         Overall organisational levels of knowledge and effectiveness are raised because of marrying central and local-level perspectives.

·         Workers are more motivated because they feel they have a say in the running of the firm.

·         It reduces the potential of top management being overloaded.

·         Lower level employees become more alert as they feel they could be partly responsible as well if anything went wrong.

 

Disadvantages of decentralisation

·         Reporting lines can cause uncertainty and frustration as to who is in charge of what domain.

·         Passing the buck. More managers means the blame-game is easier to play.

·         Complex processes. It takes long for decisions to move through the established stages: in business, it is said that time is money.

 

Conclusion

Centralised and decentralised management each have positives and negatives. The best situation is probably leaving it to managers to decide whether their unique business situation will work better with centralisation or with decentralisation.  This means looking at such factors as type of business, size of organisation and capacity of human resource.

ECONOMICS - Concentrated/Non-concentrated Markets

CONCENTRATED AND NON-CONCENTRATED MARKETS 

Question

 

Why do some markets become concentrated and others do not?

 

Increased or decreased market concentration often signifies one or more of the following factors:

 

Stronger or weaker market entry barriers. Both government and existing competitors can make it more difficult or favourable to enter a market. Government could, for instance, make things more, or less, challenging, if it created cumbersome licencing requirements, or business-friendlier ones. Competitors could make entry by new players harder by, for example, entering into exclusive contracts with customers.

Another way to weaken barriers to entry is legislating for common industry standards by government rather than allowing an industry player to set the standards, as they could easily be manipulated by the supplier to their own benefit and to the detriment of others. This is especially important in the case of technical products.

 

 Making anti-trust laws more or less effective. Anti-trust laws are meant to prevent any single player, or a few, entirely dominating the market. One result of lax anti-trust laws is mergers and acquisitions that eliminate all competition. In a country where there are only two brewing companies, for example, acquisition of one brewing company by the other may not be allowed if a pro-competition stand were stronger.

 

Unfavourable or favourable start-upcosts. When starting a business is highly capital-intensive, there are greater chances of the market being concentrated than when initial costs are low. Some industries, such as underground mining and airline, by their very nature are - in general - inherently concentrated. In one market, there are, at the moment, only four cement-manufacturing companies. That is to be contrasted with the market for soft drinks and juices where there are numerous suppliers and entry capital is relatively low.

 

Rent-seeking. This refers to tendency to manipulate the established system to gain in some way. For example, a firm paying a government official to preserve or improve its market power. In the idealistic environment, there is much less rent-seeking. Existing companies are not able to get away with rent-seeking manoeuvres: they let new competitors enter the market unhindered - and only maintain or improve their position by creating, innovating, investing and raising productivity (output per unit of investment, which represents falling costs).