Fundamentals of Management, 8th ed

communication

network

The pattern through

which the members

of a group

communicate

368

Part 4: Leading

Copyright 2016 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. Due to electronic rights, some third party content may be suppressed from the eBook and/or eChapter(s).

Editorial review has deemed that any suppressed content does not materially affect the overall learning experience. Cengage Learning reserves the right to remove additional content at any time if subsequent rights restrictions require it.

---

with only one other person. This path is closed in the circle pattern. Finally, the all-

channel network, the most decentralized, allows a free flow of information among all

group members. Everyone participates equally, and the group’s leader, if there is one, is

not likely to have excessive power.

Research conducted on networks suggests some interesting connections between the

type of network and group performance. For example, when the group’s task is relatively

simple and routine, centralized networks tend to perform with greatest efficiency and

accuracy. The dominant leader facilitates performance by coordinating the flow of infor-

mation. When a group of accounting clerks is logging incoming invoices and distributing

them for payment, for example, one centralized leader can coordinate things efficiently.

When the task is complex and nonroutine, such as making a major decision about organi-

zational strategy, decentralized networks tend to be most effective because open channels

of communication permit more interaction and a more efficient sharing of relevant infor-

mation. Managers should recognize the effects of communication networks on group and

organizational performance and should try to structure networks appropriately.