What Are The Advantages Of Employee Shareholders?


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Liron Gozlan answered
1. Management of an organisation is effective only when its
communication machinery is effective. The very existence of management
depends upon an effective machinery of communication. Effective
communication machinery is important because it communicates, and helps
in implementing, the policies and objectives of the organisation on the
one hand, and also helps in understanding the nature and behaviour of
the people at work.

2. Management communication is a two-way process. It means that
the management must allow both the parties - the management and the
subordinates to convey their feelings, ideas, opinions, facts,
grievances etc. To the other party. Communication is said to be a
continuous process of exchange of views and ideas, but it should be
both ways - downward and upward.
3. The communication machinery or process should not only
provide the manager with a the privilege of communicating orders and
directions to the workers to get the work done towards the achievement
of organisational objectives as pleaded by the classical theory of
organisation behaviour known as Theory X by McGregor, but the workers
also must be given a right to approach the management and communicate
their complaints, grievances, opinions, facts, suggestions etc., which
may be in response to the orders or directions received from the
management, or in the interest of the organisation, contributing to the
achievement of its objectives.
4. This two-way traffic is advantageous to both the management
and the workers. Managers, very often, like that the subordinates must
listen to them and follow their orders and directions whatsoever. On
the other hand, managers are not prepared to listen to their
subordinates regarding what they think about them and of their
suggestions, ideas or directions. They are not bothered about their
subordinates' likes and dislikes and how they can contribute to the
organisational objectives. Management, in this way, cannot be
effective. Without giving subordinates an opportunity to be heard,
their feelings will remain suppressed and they may breakdown at any

5. A message can be interpreted by the recipient according to the
image of the communicator in the mind of the recipient. If the image is
bad, the version of the message may be distorted and interpreted
differently. The bad image can be erased through proper communication
from the other side, which is possible only when there is two-way
communication in the organisation.

6. Thus, creation of organizational systems allowing two-way
traffic will improve the morale of the workers on the one hand because
they think that they have a say in the management, and will improve the
working of the organisation on the other hand, because
management-worker relations develop in a cordial atmosphere. Thus,
two-way communication is necessary for effective management.

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