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London School of Science

and Technology
Pearson BTEC Level 5 HND

MCKI
Diploma in Business
Unit 16: Managing Communications,
Knowledge and information
Assignment Title: Managing Communications,
Knowledge and information
Module Leader:
Patrick Justus
Internal Verifier:
Dr. George Panagiotou
Issued on:
30th January 2017
Deadline:

Submitted on: 12th May 2017

Student Name:
Student ID:
Campus: Alperton/Luton/Birmingham (delete as appropriate)
Pearson Registration Number:

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Signature & Date:


London School of Science & Technology
Introduction:
An organization has to maintain relationship to various parties. It has to produce better value
than the competitor and has to communicate about the value with stakeholders. To do all
these things an organization has to maintain a strong communication and knowledge
structure. This report will represent how Zara maintain the communication and knowledge
system with various stakeholders and local community. This report will also examine the
personal plan of liaison manager and the communication process of Zara UK.

Task One: Coherent Business Report


To,

Senior Management, Zara UK

Subject: Understand how to assess information and knowledge needs

Dear Sir,

The report will represent the need for information and knowledge required plan a market
penetration. As Zara is a leading company in UK so it has to develop its management plan
depending on real and exact information and knowledge. This will also verify the sources of
information and knowledge and improvement paths for management.

Discuss different decisions to be taken by the Zara senior management team for
this audacious plan to manifest [AC1.1].
Decision Making

Decision making refers to the procedure to make decision. It is a sequential manner of


making decision. It is a process of taking the right decision from some alternatives through
verifying the information available to the management. Every management level takes some
decisions in their respective field. Right decision making is the very necessary part of
business to be succeeded.

Level of Management of Zara

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Figure 1: Level of Management, Source: Robbins and Coulter, 2005


Senior Management: The top level management who are responsible for making the
strategic plans, long term business policy and job responsibilities for the individuals.

Middle Management: Different managers of different departments are entitled as middle


management. These managers divide the responsibilities and time frame of each specific job
to be done by the junior management.

Junior Management: The lower level management or the operational mangers are the part
of this level. They just perform the tasks assigned by the middle management and the
job specified by the top management.

Decisions Taken by Senior Management of Zara UK in Market Penetration Plan

Strategic Plan: It is the plan of the strategies to be taken by the Zara in a competitive market.
Senior management level does the work and also makes some contingency plans to be
followed in different competitive situations.

Sources of Finance: Finance is the heart of organization. Finance sources and amount of
finance to be collected will be selected by the top level management. Finance can be
collected both from external and internal sources. But between them internal source is less
risky.

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Location: Location defines the degree of sales and customer attraction. It is an important
decision of the Zara. So the top level managers take the decision regarding a place that is near
the target market and where entry barrier is strong for competitors.

UK Business Law: As Zara conducts its business in UK as a clothing retail outlet so it has to
abide by the commercial law of UK. The law says that customer protection should be ensured
and disputes between customer and retailer must be solved through UK commercial law. So
Zara should maintain these issues.

Selection and Recruitment: Zara should emphasize on recruitment and selection carefully.
Because human resource defines the level of customer satisfaction as they contact directly
with customers. It should recruit the local person of UK to access to the local information and
to carry out the outlet successfully. Selection should match with the job specification.

Personal Development: It is the program of skill development of human resources. If the


skills are well developed through the program then individual job will be carried out more
successfully and superior value can be generated and delivered.

Strategy to Face BREXIT: As Britain is no longer a member of the EU, so the business
condition there will definitely change. Zara should rethink the global policy, should follow
diversity in business perspective within the organization, and should make contingency
approaches to meet the situation. It should follow various strategies rather than following a
single one only.

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Examine information and knowledge required to ensure that effective decision
taking is possible across board in Zara UK [AC1.2].
Information and Knowledge

When data or the raw facts are analysed the result is called as information. Knowledge is the
gathered information required to carry out a job. Management requires both to take decisions
in order to be seceded in business by selecting the best alternative.

Figure 2: Information and Knowledge Diagram, Source: infopages.com, 2016


Information Needed by Zara UK to Ensure Effective Decision in Penetration Plan

Strategic Information: It is the information regarding the strategies to be taken in


competitive market. Zara must define its customer’s preferences, demand, goals and vision,
level and the capacity and competitors’ capabilities to take the right strategy. It will give an
advantage over the competitors and help to survive in long run.

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Tactical Information: Tactical information refers the information required to select tactics
to meet the situational demand. Zara should gather information regarding market situation,
strength and weakness both of itself and the competitors, environmental analysis and external
forces those have an impact on business.

Operational Information: information required to carry out the operations in various level
of the organization is known as operational information. It requires adequate knowledge of
customers, products, value expectation, and other missions of the organization.

Knowledge Needed by Zara UK to Ensure Effective Decision Making in Penetration


Plan

Figure 3: Knowledge Types. Source: Laudon and Laudon, 2004


Explicit Knowledge: The knowledge may be gathered from third party regarding the
tangible things like product, machineries, technique of analysis etc. these only covers 20% of
the knowledge of an individuals. Zara need to know enough about the product, technological
advancements available, customer’s choice and preferences.

Tacit Knowledge: These are private knowledge and can’t be accessible by others. Customer
handling in varying situations, goals and policies of Zara falls into these category. It helps to
define the norm to be followed in different situations. It is almost a subconscious process of
knowledge that will help to work in an effective way.

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Assess internal and external sources of information and understanding available
in Zara UK for decision making [AC1.3].
Internal Sources of Information

 Sales figures: Past sales record will help to understand the trend of sales and factors
influence the sales.
 Personnel records: personnel sales record, previous performance in the market will
supply information to take decisions.
 Customer records: Customer preferences, buying behaviour are great source of
information. Address and contact number also gives a mean to collect information.
 Financial documents such as trading, profit and loss accounts and the balance sheet:
financials documents help to analyse different trends and pattern in different situation
of the market.

Assessment of Internal Sources of Information: Sales record is good for analysing


different sales pattern in different situation and it also gives an idea about the factors that
affect sales and denotes customer preferences in varying times. Where personnel record only
deals with individual assessment and customer records may be go unreasonable if customers
don’t response to the individual promotion effort. Financial documents also give a mean to
judge the financial condition to reveal different information, but ignore the issue of customer.

External Sources of Information

 Government websites: Govt. websites provides different rules and regulation


information as well as the information regarding the business of sane industry.
 Trade association: It provides different information regarding trade policy, trade
assistance, support etc.
 Journals and researches: these provide information regarding sales, company bio,
customer taste and preferences, new technologies implemented by other companies
etc.
 Newspapers and magazines: Open source information regarding current issues of the
commerce, trade and industry.

Assessment of External Sources of Information

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Among the external sources govt. websites usually provides rules and regulations but the
information regarding other companies and industry are not quiet available there. But the
journals and researches provide this sort of information that will help Zara to form strategy
and to take decisions. Newspaper and magazines provide a little range of information and
these sources depends on the interview taken by newspaper correspondence. So among these
journal and research is the best source to be considered.

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Justify your recommendations for improvement to the Zara UK management
team [AC1.4].
You will have to show the reasons along with the discussion of every point because question
has asked for the justification of your recommendations

New technology: Technological advancement is a great way to achieve a competitive


advantage. Through adapting and using of new technologies will help to reduce cost and
better management of the personnel and information flow will be smoother. Technological
updates can be used in data collection and processing area, information transformation area,
and in production and distribution also.

Training & Motivation Programs: These two programs aim at developing human skills and
getting work done by the people. It will develop the skills so that personnel recruited can
work efficiently. As a result the wastage will be lower. Motivation is a mean to employ the
potentiality of personnel and it will help to pursue the goals and missions of Zara.

CPD and Performance Related Rewards: Through CPD personnel skills, performance and
past record will be listed and it will help to assess the performance. On the other hand reward
will make the personnel interested to work. It will enable them to give their best to get the
offered reward. Through reward, performance recognition is expressed.

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Task Two: Portfolio

“Networking Strategy for the


launching “SLIM FIT JEANS” in
Kent, London”

Pre event agenda

By

XXXXXX

(Assistant Customer Service Manager)

Identify at least a minimum of four and maximum of six stakeholders that you
will invite for this important occasion [AC2.1].
Proposed Plan

As stakeholders are deeply related with the company in terms of ownership, investment,
profit, policies and so on. So their participation is badly needed to be succeeded in the
launching event of “SLIM FIT JEANS”. Their positive attitude will result in accomplishment
of goals.

Internal and External Stakeholders

Types of Stakeholders Importance and members of the category

Internal Internal part of Zara including the owners and


the resource personnel inside the company.
This type of stakeholder consists of CEO,
Managers, Resource Personnel and

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shareholders. These are related to decision
making.
External Excluding the internal part of Zara, who
influence on decision making indirectly and
influence profitability. These include,
members of supply chain, customers, lenders
and Government.

Primary and Secondary Stakeholders

Types of Stakeholders Importance and members of the category


Primary Contractors, supplier, customers and
employees are primary stakeholders. They
affect the internal ability, process, value
chain and total internal system.
Secondary Government, trade union, media, agencies
are the secondary stakeholders. They affect
the macro environment and ability to
maintain strong relationship with the
customers.

Location: Quarterhouse Folkestone

Date: 26 February 2017

Scope of the Event: the event will take place to promote the product ‘“SLIM FIT JEANS”’
in Kent. It will be in front of all stakeholders as it can carry out the desired success in future
through making right decision about the product by analysing the both internal and external
aspects. To ensure maximum presence the program will be held on Sunday.

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Internal
Stakeholders Board of Directors
Managers
Employees
External
Stakeholder Customers
Suppliers
Product Designer
Decision will be collected from board of directors and will be followed by the managers and
employees to implement by making a mixture with customer taste and suppliers ability with
an attractive product design.

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Make contacts with your proposed invitees using appropriate and cost effective
channels [AC2.2].
List of Available Communication Channel for Zara to Communicate with the invitees are
described below:

Telephone: Telephone number from the database can be a vital medium for communication.
But calling them time to time will be more costly but it will make the program more
attractive for the stakeholders and they will feel themselves important having a call from
Zara.

Emails: It is a cost effective medium to communicate as there will be only internet cost
involved and message should be same so time will be saved. But it is less sure to open the
mail by the respective stakeholders.

Letters: Letters can be sent to the stakeholders describing the event. It will also be cost
effective but slow process but fruitful. Different messages can also be developed by this
medium.

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Fax: Fax is a vital medium of communication. The message of product launch can be faxed to
the invitees describing the event and the message should be interesting. It is less effective and
covers only a partial portion.

Word of mouth: An important medium but can go wrong if the inviter makes any mistake in
communication.

Facebook: A medium presently at a boom position in the modern world. It is cost effective
and required less effort but gives a good response.

Twitter: A digital medium where a special segment is targeted. It is also requires less cost but
gives lower response than facebook.

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Stakeholder Discussion about Communication Channel


Networking Used
Employees Employees will be contacted
through word of mouth.
Managers Managers are internal part so
they will maintain
networking between Zara and
the employees.
Suppliers Suppliers will be
communicated by telephone,
fax and letters.
Customers Customers will be
communicated through
Facebook, twitter and
telephone.

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Involves those invitees you have contacted for this occasion ensure that their
interests are well represented throughout the occasion [AC2.3].
Agenda of the Programme

Agenda Time
Check in 3:30 pm- 4:00 pm
Seating 4:00 pm- 4:30 pm
Welcome 4:30 pm- 4:45 pm
Presentation for Designer 4:45 pm- 5:15 pm
Test Product 5:15 pm- 6:00 pm
Refreshment 6.00 pm- 6:30 pm
Question and Answer Session 6:30 pm-6:45 pm

Design of Feedback Form:

Feedback Form

Zara, London

Do you think the product will work in future?

Was the design of the product up-to-date with fashion?

Is the price is reasonable?

Which area we should emphasize for further development of the product?

Did the aesthetics feature of the product encourage you for trail?

Other opinion:

Your e-mail: Telephone no:

Thank You.

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Design all-inclusive strategy that will make the event more interesting and
memorable for all [2.4]
 Strategy to make the event memorable:

agenda of activities Promotional activities to Gift items to make more


make more interesting interesting

Presentation and trail of the Free trail can be offered to Can offer bundle price as buy
product for refreshment promote the product as it is 2 get 1 free or can coupons/
“SLIM FIT JEANS” it can’t discount card be offered to
be distribute for free. encourage purchase

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Task 3: Coherent Business Report
To,

Senior Management, Zara UK

Subject: Report on robust communication network channel to link employer and local
community.

Dear Sir,

In order to attain the goal and better integration it is must to robust communication network
between the employer and the local community. In this report I will represent the ways to
robust communication as a liaison manager.

Report on the existing communication structure and system in Zara UK [AC3.1].


Define communication

Communication is the magic bullet of transferring message from one place to another. It is
the process of transmitting message from sender to receiver through a medium. It is a
sequential process of transaction of message.

Communication process diagram of Zara

Figure 4: Communication Process, Source: (Richards et al., 1997)

Source: The sender of the message is considered as the source. It is the place where message
is generated.

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Message: The information to be transferred is considered as message, as job responsibility
message send by the top management to the lower management in Zara.

Encoding: assigning a code or a pattern which is only known to the receiver and sender that
save the message from third party access.

Channel: The media used to transmit the message is known as channel like as Facebook,
twitter or letter used in Zara.

Decoding: Breaking the code assigned by the sender to reveal the message.

Receiver: The ultimate destination of message, whoever has the valid identity to receive the
message.

Feedback: The signal sent by the receiver confirming the receipt of the message or sending
answer in return of the message.

Other types of communication used by Zara:

1. Verbal: Word of mouth communication or the communication based on language.


Zara used languages to communicate with other parties. It may be written or oral.

2. Non-verbal: Use of sign, pictures, gestures or non-word communication of Zara.


This involved making people understand easily and quickly.

Organisational communication structure used by Zara

1. Formal communication: Communication based on the organization protocol


maintaining. It maintains the rule of who can contact to whom. As sometimes only
mid-level managers of Zara can contact with top managers.

2. Informal communication: This type of communication does not follow any


protocol. Anyone can communicate to another as they want but confidentiality in
maintained.

The communication of three level of management at Zara UK:

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1. Downward Communication: The type of communication where information flows
from upper management to lower management. Here top management is the sender
and lower management is the receiver.

Figure: downward communication system Source: Robbins and Coulter, 2005

2. Upward Communication: Here the information flows from lower level towards
upper level. The lower level management transmit the messages as sender. It usually
done when the management need root level information. Here root level employees of
Zara transfers message to the top management gradually.

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Figure: Upward communication system Source: Robbins and Coulter, 2005

3. Horizontal Communication: when communication occurs in the same level of the


organization then it is called the horizontal communication. When the line managers
of Zara communicate among them then it is called horizontal communication.

Figure: Horizontal communication process Source: Robbins and Coulter, 2005

External communication methods of Zara:

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When communication is made with the external parties then it is called external
communication. It depends on the external environment of Zara. When contacts are made
with third parties then it has to ensure the confidentiality of the message.

Figure: External communication methods, Source: Robbins and Coulter, 2005

Internal communication methods of Zara:

Internal communication is made between the internal parties of the Zara UK. Two
communication types are maintained one is written and another is verbal. Communication is
maintained regarding the minutes or agendas of the formal meeting, notice, reports for
written communication. In terms of oral communication face to face discussion is made and
meetings etc. are held in Zara.

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Figure: Internal communication methods, Source: Robbins and Coulter, 2005

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Design appropriate methods to improve the overall communication systems in-
line with modern realities in the sector [AC3.2]
Better communication results in better value creation across the organization. If the
communication is maintained and coordinated effectively then the efficiency increases and
the productivity raise. Companies frequently need to update the system and technologies of
communication.

Use of modern technology/ Digital tools: Modern technologies should be tagged with the
communication system. These modern tools help to accelerate the flow of information across
the stakeholders of Zara. The use of Facebook, Twitter, emails, intra-organization
communication software can be used to improve the system. Through this one party can
easily get the necessary message from the other party within moments. This will result in
quick feedback and quick response.

Feedback system:

Feedback is the response given by the receiver of the message. Through feedback the
message and effort can be redesigned through necessary correction. By this the probable area
of improvement of the effort can easily be identified. Feedback from customers help to
improve the product and the product can be modified with adjustments. Feedback from the
supplier will make the organization cost effective. If Zara design an effective feedback then it
will result in better deign, in productivity and in efficiency.

Customer feedback with questionnaire:

To collect feedback from the customers the following form can be used. This will help to
assemble the thinking of various customers regarding Zara and will help to maintain a better
relationship with the customers.

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Zara, UK

Customer feedback form

Products of Zara you have used:

How long you been with Zara? :

Your experience with Zara’s product you have used:

Your experience with our retail outlets facilities and salespersons:

Your advised sector regarding further improvement:

What can we do for delivering you a better satisfaction? :

Email:

Contact no:

Thank you from Zara, UK

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Implement plans that will guarantee better communication mediums between the
local community and Zara UK [AC3.3]
If communication is maintained between the local community and the Zara then it will
possible to derive the better result in business. To do so Zara have to efficiently manage the
following mediums.

1. Regular town hall meetings: for town hall meetings Zara can apply two strategies. The
management bodies can meet at the town hall for promoting the ideas and business initiatives
and can arrange some cultural events like concert, a get together, conferences or seminars to
maintain a proper relation. It will also enable Zara to know about the thinking of the local
community towards Zara. It will help to improve the service level of Zara. It should be done
at a definite interval such as monthly or yearly etc.

2. Local Medias: Zara can use the local Medias of UK to get along with the local community
and to the customers of local area. They can use the following mediums:

TV: visual communication program or advertising can be made on television to attract the
local community and to form a favourable image.

Radios: Non visual appealing message can be used to reach on a specific segment. The
senior citizens are the main target of the program.

Local newspapers: Newspaper advertising creates a favourable image in local community.


Zara can also design a thanking message to the people of UK in newspaper.

Along with these magazines, Video conferencing, chat rooms, intranet, extranet plays a vital
role to develop a good communication with local community. Magazines create a colourful
impression in mind and intranet maintain a successful communication internally where
extranet maintain it with external parties. New product promotions, gratitude and ideas can be
promoted to local communities can Zara can listen to the local community.

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Unit 16 - Managing Communication Knowledge and information – January 2017
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Create a personal plan to improve your own communication skills, as the newly
appointed community liaison trainee manager [AC3.4]
A liaison manager is entitled to maintain and improve the relationship with the actual and
potential customers of the company. As an appointed liaison manager of Zara I will
emphasize on customer preference and communication program. It is must to find the
strengths and weaknesses first to identify the opportunities and threats. Plan will be to
recover the weaknesses and turn into strength. The analysis of SWOT is given:

SWOT Analysis as Community Liaison Trainee Manager

Strengths Weaknesses Opportunities Threats

• Exchange • Requires time • Geeting along • Critical


information to access to the with varities of customers
effectively mind of critical people offten
• Ability to customers • Network consumes time
access the building so the
feeling of implementation
customer mind gets slow

Personal plan: Personal plans to improve as a liaison manager of Zara are drawn below:

Development Priority Delivery Deadline to Strategy to pursue


issues achieve the development

Being prompt in First Seeking support from May 2017 (3 Getting along
customer supervisor of the team months) with the critical
handling customers and
trying to handle
them

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Improving Second Seeking help from June 2017 Analysing the
customer dealing seniors situation and
tactics applying tactics.
customer Third Past case study and April 2017 Access to inner
judgment training feeling by judging
the behavioural
sign.

From,

Community liaison trainee manager

Zara, UK

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Task 4: PowerPoint Slides with Integrated Speaker Note

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Unit 16 - Managing Communication Knowledge and information – January 2017
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Report on the existing data collection, formatting, storage and dissemination
approaches in Zara UK [AC4.1].

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Conduct necessary changes to improve on the above mediums in AC4.1, in-line
with your new mandate in Zara UK [AC4.2].

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Implement users-friendly strategy that can improve access and usage of systems
in Zara UK [4.3].

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Conclusion:

Information is valueless if the information and knowledge is not accessible. So the


information should be easily accessible for the verified stakeholders. Through the information
the organization has to maintain a favourable relationship with the customer and other parties
to gain success in business. Zara has to fill the gaps in the system and has to develop a full
proof communication, knowledge and information system and these have to be
communicated effectively to be profitable in business. It should consider both external and
internal parts, elements and forces.

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References and Bibliographies:
Murphy, H. and Peck, C. (1976). Effective business communications. New York:
McGraw-Hill.

Bazerman, M. (2002). Judgment in managerial decision making. New York: Wiley.

Brooke, P. (2008). Hiring and firing. Nursing Management (Springhouse), 39(9), pp.50-
52.

Freeman RE, Harrison JS, Wicks AC, Parmar BL, Colle S (2010) Stakeholder Theory:
the State of the Art. Cambridge, Cambridge Univ. Press

Business Communication Quarterly. (2009). Business Communication Quarterly, 72(2),


pp.145-145.

Fitzgerald, S. (2002). Decision making. Oxford, U.K.: Capstone Pub.

Laudon, K. and Laudon, J. (2004). Management information systems. Upper Saddle


River, N.J.: Prentice Hall.

R. Edward Freeman, Alexander Moutchnik (2013): Stakeholder management and CSR:


questions and answers. In:UmweltWirtschaftsForum, Springer Verlag, Bd. 21, Nr.

Richards, J., Hull, J., Proctor, S. and Richards, J. (1997). New interchange. Cambridge,
U.K.: Cambridge University Press.

Rohan, S. & Madhumita, M. (2012): “Impact of Training Practices on Employee


Productivity: A Comparative Study”. Interscience Management Review

Robbins, S. and Coulter, M. (2005). Management. Upper Saddle River, NJ: Pearson
Prentice Hall.

Thierauf, R. J. (1999). Knowledge Management Systems. Quorum Books.

Simon, H. (1976). Administrative behavior. New York: Free Press.

Hubert Österle, Elgar Fleisch, Rainer Alt (2001), Business networking: shaping collaboration
between enterprises.

Stallings, W. and Van Slyke, R. (1998). Business data communications. Upper Saddle
River, N.J.: Prentice Hall.

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Van Le, Christopher, "Opening the Doors to Digital Libraries: A Proposal to Exempt
Digital Libraries From the Copyright Act," Case Western Reserve Journal of Law,
Technology & The Internet, 1.2 (Spring 2010).

Wellman, J. L. (2009). Organizational Learning: How Companies and Institutions


Manage and Apply Knowledge Palgrave Macmillian

Wang, H.J., Morlang, A. Mang, F.Joseph, A.D. and Katz, R.H. (2001), A Service.
Creation Model for Integrated Communication Systems on the Internet

Saint-Paul, G. (2008). Innovation and inequality: How does technical progress affect
workers? Princeton, New Jersey: Princeton University Press.

UK business objectives in computing, telecommunications and information policies. (1987).


Computer Law & Security Review, 3(2), pp.9-10

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