Managing Business Relationship Essay

Introduction Communication underlies the effectiveness of coordinating exchange activities, developing strong relationships, which results in improved performance Without effective inter-organizational communications, learning among workmates is diminished and the long-run effectiveness of the relationship may be damaged. Communication presupposes that there is a particular cultural framework that allows “translation” of the meaning embedded within communication by the recipient to maintain the true intent of the communication (Blalock, 2005).

When business partners emanate from different cultures, the underlying cultural inconsistencies in communication patterns create hurdles to the development of effective business relationships. Today, businesses continue to struggle with communication barriers in the workplace. The lack of a process to address communication issues presents a gap in managing business relationships. The purpose of this essay is to discuss the key factors leading to effective communication in managing business relationship.

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First, examinations of the business communication issues are addressed. Next, analysis of example from scenario is presented. Finally, the skills and strategies to overcome communication inconsistencies are presented. Discussion The most significant communication issue with external sources was identified in ServIT is the late payment issue between ServIT and a local cafe shop. It is related to negotiation theory. Negotiation is usually considered as a compromise to settle an argument or issue to benefit both parties as much as possible. Megginson & Byrd, 2002:78). Negotiation in a business context can be used for selling, purchasing, staff, borrowing and transactions, along with anything else that are applicable for the business. For example, if Andrew could sit down with Renata to decide what level of each benefit they will receive. There is a good chance for Andrew to think some of items are more important than paying off the bill on time to Renata and vice versa. It is quite costly for Andrew, so he may want to minimize the cost by either when he pays or how much he pays.

On the other hand, Renata may be okay with the second tier of the payment but really want to be paid on time. If both of them assume the other party holds the same priorities they do, then over the course of the negotiation they are unlikely to maintain a good business relationship. So what is the solution? Instead of preparing for a win-lose outcome, look for an integrative one, where both sides needs are met. For instance, Andrew may consider the best alternative to a negotiated agreement with Renata, such as if he does not agree to this deal, what will he do instead?

So should Andrew consider how his interests align with Renata’s. Whether his deciding when pay the bill or what his is being paid, at the very least, he will have a better understanding of what he want, and hopefully end up with an outcome he can live with. The second communication issue in scenario was the appointment of training manager. ServIT seems to lack of effective internal communication. Managing business is often considered to include designing the job; hiring someone to fill the job, training them, delegating to them, guiding them via performance reviews, and helping them develop their career.

Obviously ServIT may not be able to afford full attention to all of these activities. However, there are several basic and regular activities which provide a solid foundation for managing business relationship. Effect internal communication ensure that everyone is working together — as important, that staff feel they are working together — towards a common cause (Inkson & Kolb, 2002: 127). Ironically, these basics seem to be the first activities that stop in ServIT case. Consequently, when “diagnosing” an organization, often first looks to see if these basics are underway.

Some activities could be conducted by either Andrew or Sally. For example, have all employees provide weekly written status reports to Andrew or Sally. It may include what tasks were done last week, what tasks are planned next week, any pending issues and date the report. These reports may seem a tedious task, but they are precious in ensuring that employee and the management has mutual understanding of what is going on, and the reports come in very handy for planning purposes, such as promotion and career development. They also make otherwise harried staff and managers stand back and reflect on what they are doing.

In addition, hold regular meetings with all staff together. The purpose of this is to review the overall condition of the organization and review recent successes. ServIT may consider conducting “in service” training where employees take turns describing their roles to the rest of the staff. For clarity, focus and morale, be sure to use agendas and ensure follow-up minutes (Ford & McDowell, 2003:433). These meetings go a long way toward building a feeling of teamwork among staff and provide an opportunity for staff to express their thoughts about future development of the business.

The third communication issue is Sally’s office policy. Sally should adopt an Open Door Policy for all employees. This means, literally, that every manager’s door is open to every employee (Jones & George & Hill, 2001:238). The purpose of open door policy is to encourage open communication, feedback, and discussion about any matter of importance to an employee. It means that employees are free to talk with manager at any time. In ServIT’s case, most problems can and should be solved in discussion with Andrew or Sally; this is encouraged as employee’s first effort to solve a problem.

No matter how they approach their problem, complaint, or suggestion, they are willing to find managers of the business willing to listen and to help bring about a solution or a clarification. By helping to solve problems, Andrew and Sally benefit by gaining valuable insight into possible problems with existing methods, procedures, and approaches. While there may not be an easy answer or solution to every concern, at least ServIT’s employees have the opportunity at all times, through the open door policy. Conclusion Based on the analysis made in discussion section, there are three significant communication issues were identified.

First of all it is worth nothing when none of Andrew and Renata had adopted integrative approach for negotiation. It is highly important for both of them doing business. Lack of effective internal communication could be seen as an obstruction for ServIT future development. Open door policy may help the business to achieve ServIT’s long term goal. Finally, effect internal communication ensure that everyone is working together, it provide an opportunity for ServIT gaining valuable insight into possible problems with existing methods, procedures, and approaches. References Blalock, Marty. (2005). Why good communication is Good business.

Journal of Business Venturing. 42. (3). P. 20-26. Megginson L. & Byrd. J. M. (2002) Small business management: An Entrepreneur’s Guidebook. North America. McGraw-Hill. P. 77-80. Inkson, G. & Kolb, B. (2002) Management perspectives for New Zealand. New Zealand Pearson Education NZ. p. 120-133. Ford, David & McDowell, Raymond. (2003). Managing Business Relationships by Analyzing the Effects and Value of Different Actions. Industrial Marketing Management. 28. (5). 425-442. Jones, G. R. , & George, J. M. , & Hill, C. W. L. (2001). Contemporary Management. Boston, Mass: Irwin/McGraw-Hill. P. 233-242.


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