GRAPHICAL PRESENTATION OF NUMERICAL DATA
Business information is very often expressed as numbers. The basis of much of this information is raw data about the activities of the business – money, sales figures, production levels, etc. There are various ways of analyzing this raw data to make it more meaningful and you will be familiar with the main statistical methods used for this purpose.
The numerical information obtained from statistical analysis can be very detailed and there is often too much of it to absorb in a short time. In situations like this, it is necessary to be able to select the most important data, summarize the key points and where appropriate use visual presentation techniques to make the information user-friendly.
There are a variety of ways to display data visually:
• Tables can be used for recording and displaying a wide range of numerical data.
• Bars charts help to compare changes in relative quantity.
• Line graphs help to show trends and moving averages over time so are useful for planning and forecasting.
• Pie charts help you see proportions of a whole.
Nowadays, it is much easier to generate graphs and charts with a professional appearance on a computer, using spreadsheet or database software. However, you should be aware of how each of these methods can be used and you should be able to produce them without the aid of a computer.
We shall examine their role in communication in the next sections, but first we should review the general rules about the graphical presentation of numerical data.
Basic Principles
There are a number of general rules which must be borne in mind when planning and using the graphical methods covered in this unit.
• Graphs and charts must be given clear but brief titles.
• The axes of graphs must be clearly labeled, and the scales of values clearly marked.
• Diagrams should be accompanied by the original data, or at least by a reference to the source of the data.
• Avoid excessive detail, as this defeats the objects of diagrams.
• There should be a key or legend relating any shading or pattern used on a chart to what it represents. In addition, or in place of a legend, labels can be used to mark what each bar, segment or line represents.
• All bar and charts should display the source of information.
• It is also advisable to cross-reference all graphs and charts within the text, such as see figure 2
3.3 STATISTICAL INFORMATION
3 Business communication 3.3 Statistical Information It is also advisable to cross-reference all graphs and charts within the text, such as see figure 2 or see attached Appendix y.
As well as these general principles, you also need to be aware of the pitfalls that can occur and ensure that you do not produce graphical displays that distort the meaning of the data.
• You need to use the correct form of presentation for type of data
• Information can be distorted if the axis on graphs and charts does not start from zero – for example, trends in the top part of a chart may be more exaggerated than if you see the whole picture with zero at the bottom left hand corner.
• Distortions can also occur through varying the scale on the axes or comparing diagrams which use different scales. For example, if you expanded or compressed the y axis (vertical axis) you could make a curve showing sales steeper or flatter, which could affect the way that sales could make a curve showing sales steeper or flatter, which could affect the way that sales graphs. The problem is that it is difficult to determine.
Bar Charts
Bar charts are most common method of presenting information in a visual way. They consist of one more bars in which the bar length indicates the quantity of the item it relates to (as specified on the y axis).
There are different types of bar chart. The bars can be presented vertically or horizontally, but can also be stacked in component bar charts and grouped in multiple bar charts. Bar charts should not usually have more than 12 bars or the chart can become confusing.
Figure 2. A simple Bar Chart
Peterson's London Office Costs
0%
100%
200%
300%
400%
500%
600%
1997 1998 1999
cost (000)
Simple bar charts are used to show the quantity of several items, which may be compared. For example, it is easy to see the difference in office costs and identify that costs are rising by looking at the differences in the bar lengths on the chart. A component bar chart breaks down the total quantity represented by each bar into its components. This allows us to seem the make of any overall quantity
– adding information to the basic bar chart. We can see that the total of office costs is made up of the costs of offices in three different locations. It appears that the London office is the most expensive, that is not very clear. A further development is the multiple bar chart. Her, two or more separate bars are used to present sub-divisions of information Unlike the component bar chart, the overall quantity is nit shown, but it is easier to compare the totals of the different divisions. Thus, we can see clearly that cost of the Madrid office is falling whilst those of Dublin and London are rising.
Figure 3. A component bar chart
Figure 4. A multiple bar chart
Pie Charts
Pie charts are used to show the relative size of different items making up an overall total (of 100%).
It is a very effective means of illustrating proportions of a whole where there is no necessary to compare that whole with another. If you wish to emphasize a particular segment, it can be exploded. Ideally, pie charts should have no more than eight sections, with the largest segment usually shown running clockwise from the top of the pie. Each segment should be labeled, sometimes including a value and a percentage share. The overall total is also usually stated.
Figure 5. Simple pie chart
Figure 6. Exploded pie chart
Line Graphs
These are used to show how one variable changes in relation to changes in another. The second variable is known as the independent variable – i.e. the variable which causes change in the other variable. That other variable is the dependent variable – i.e. the variable which changes according to changes in the other. The independent variable is shown on the axis and the dependent variable is on the y-axis.
Lines graphs are very effective at showing movements over time or against other varying circumstances, such as changing price or different production quantities. They can illustrate trend very clearly and, by showing data from a number of different situations on the same graph, allow comparisons to be drawn. Line graphs should, though, have not more than four lines types, otherwise they become confusing for the reader.
When drawing a graph, follow this procedure for constructing the framework.
• Determine the ranger of values that will need to show on each of the axes. You should start by considering the x axis since the range of values for the independent variable will determine the range of values needed for the independent variable on the y axis.
• Draw the axes and mark off the scales along them. The aim is usually to draw as large a graph as possible since this will make it easier to plot the co-ordinates accurately, and also make it easier to read. Remember that the scales must be consistent along each axis, but do not need to be the same on both. If you are using graph paper, use the thick lines as your main divisions. If you are not using graph paper, use a ruler to mark the scale and select easy-to-identify measurements for the divisions (such as one cm for each main unit).
• Give each axis a title, number the main divisions along each scale and give the whole graph title.
Now you are ready to start plotting the graph itself.
In the example here, shows the changing office costs over three years from our previous example. The downward trend of office costs in Madrid and the upward trend for London come out clearly. The trends can be extended into future by extrapolating the direction of the line to forecast the likely figure for the following years.
Figure 7. Line Graph
Histograms
Histograms should not be confused with bar charts. Bar charts are used for discrete or non-continuous data and so are best drawn using a separate bar for each item that is being represented.
Histograms are used to display continuous data such as earnings, mileage, examination marks, heights of people etc. and as such, to indicate the continuous nature of the data, there is usually no gap between the bars. For example, if you were to show the monthly gross earnings of employees in a histogram, you would first group the information together to produce a frequency table.
The gross monthly earnings data is as follows:
£750 £550 £500 £900 £400 £1,200 £1,400 £1,200 £1,250 £100
£1,500 £1,800 £900 £700 £400 £1,200 £900 £1,100 £1,200.
This can be grouped into following frequency table:
Table 28. Monthly earnings.
Monthly earnings (£) Number of employees
400 –600 3
601 –800 2
801 – 1,000 4
1,001 –1,200 5
1,201 – 1,400 3
1,401 – 1,600 1
1,601 – 1,800 1
Having organized the information into frequency table, it is much easier to plot the figures on a histogram. Histograms can show the distribution of information. In the, there is a normal “bell curve” distribution with a few people at the lower and higher ends of the scale and most people in the middle salary range.
Figure 8. Histogram
Practice questions
1. Assume you have information about the following topics which you wish to communicate to colleagues at the next Sales and Marketing Meeting. Choose and prepare an appropriate visual presentation method for each of the following:
a) The sales figures of three different recipes of frozen pizza over the last four years b) The performance of individual sales staff over the last six months
2. Draw a pie chart show the following data relating to the market share of the six top-selling small cars in 1997. The data is taken from Car Market, May 1998.
Table 29.
3. Draw a bar chart to show the following data relating to the recalling of car advertising in the past month. The data is taken from Car Market, July 1998.
Table 30.
4. Draw a multiple bar chart to show the following data relating to the number of cars owned per home in 1997. The data is taken from Car Market, May 1998.
Table 31.
Now check your answers with the ones given at the end of the unit.
Answers to question for practice
1. (a)A line chart be used to illustrate sales of frozen pizza over time Communication in Organisations
Introduction
Every organization has its own ways of communicating, whether formal or informal, efficient or inefficient, effective or in effective. The management expert, Chester Barnard, argues that communication is a crucial means of co-ordination of groups and parts of an organization. Koontz states that communication is essential if changes and improvements are to be made in an organization. Business information must be communicated to those who have need of it to perform their work functions effectively and efficiently. Resources cannot be allocated and managed without per communications. So an understanding of communication systems is fundamental to the whole organization process.
This study unit examines the principles or organizational communication and assesses how they work in practice.
A. The role of communications in organisations Communication may be defined as:
“the activity whereby an individual or group conveys, consciously or unconsciously, information to another individual or group and, where necessary, evokes a response.”
This definition stresses that communication is the process of transmitting or exchanging information. Information is central to organizational activities and operations and ideas, instructions, directions, reports and explanations are all examples of kind of information that flows through the communication system of an organization.
If we are to appreciate the importance of good communication for organizations, we must grasp the functional and goals that the exchange and transmission of information serve.
Why Organizations Needs Communication
There are many reasons why business organizations need efficient communications in order to survive – not least because the lack of such exchange of information and opinion can have very disruptive consequences.
• Departments can begin to feel isolate from the rest of the firm.
• Individuals may lose interest in the way the organization is developing.
• If workers are not kept informed about change in policy about matters such as staffing policy and conditions of service, it is quite likely that industrial action of some kind may result, which can be damaging for all concerned.
Information is necessary at every level of the operation of a company.
• Senior management is concerned with making policy decisions, and need complete, up-to-date information about the firm’s trading position, financial status and production capacity, as well as the development of new projects.
• This has to be supplied to them by middle management who are concerned with the day-to-day running of the concern. In turn, managers need information about matters such as production targets and financial matters in order to keep the firm in business.
• They also need information of another kind, which they can pass on the workers beneath them in the hierarchy. Such information is related to the firm’s policies and objectives, so that the workforce can be encouraged to feel a sense of commitment to firm, and to feel that the firm, in turn, has a commitment to them.
The reasons why communications are needed may be summarized in overall terms as follows.
a. To bring about change
Information needs to be passed from one section or level of an organization to another in order to effect change in the actions of the receivers.
This can be at the level of influencing the way individual activities are carried out – with instructions or discussions about the quality of work or standards expected.
At a broader level, it can also be concerned with the provision of information about new developments and changes in working practices. If changes such as relocations are going to happen, then releasing this information must be done in a careful and honest way, without allowing rumour or resentment and workers at all levels is essential, and this can be achieved in no small measure by the existence over a long period of a clear system of communications.
b. To sustain stability
The other side of this coin is that, when things are satisfactory, people need to know that they are going to continue in the same way.
If staffs are to be interested in and loyal to the company, then it needs to know what is going on within the company structure. No one can be expected to work with complete dedication unless he or she feels that his or her work is appreciated, and the best way of showing this is for the company to take the worker into its confidence as regards aspects to company policy. In this way, an atmosphere of trust is generated which encourages commitment to the firm.
c. To lead people into a common purpose
This makes explicit what is implied by the previous two points in the organizations need all staff – from top to bottom – to share the same objectives and be working in common cause to the same ends. Chester Barnard argued that co-ordination in the pursuit of defined objectives was the most important function of communication.
d. To integrate the activities of management
This is a wide-ranging function in that it makes communication responsible for:
i. Linking the levels of the organisation together
ii. Linking the sections and departments of the organisation to each other. ((i) + (ii) = structure integration).
iii. In addition communication integrates the functions of management to see to it that all the things management do are pulling in the same direction towards achieving organizational goals.
The first and second points here – (i) = (ii) – lead to structure integration within the organisation. Point (iii) brings about functional integration.
e. To establish links between an organization and its environment
All organizations need a two-way flow of information with sections of their environment – for example with customers, suppliers, governments, the community, etc. They need to know the needs, requirements, pressures and changes that are taking place among these groups, and also to communicate their own role in responding to and providing for these needs and requirements.
f. To sustain discipline
Although the idea of discipline could be said to be “old hat”, there are nonetheless certain issues of working practice which need to be maintained. A workforce which feels that the management has no interest in them will feel little inclination to follow rules about work procedures, statutory breaks and similar issues; discontent and a lack of interest will develop. You can avoid this by keeping people informed about what is going on.
g. To forestall rumour
Rumour can cause untold problems in a company if it is allowed to run unchecked. Suggestions of takeover, relocations to distant towns and mass redundancies are immensely destructive in terms of morale, and they are bound to flourish unless the worker feel that they can really believe the management - a feeling which is most successfully created by keeping them in touch with what is happening at the firm.
h. To satisfy statutory obligations
The law requires companies to communicate various items of importance to their employees and to outsider bodies. Broadly speaking, the internal requirements relate to areas concerned with Health and Safety and employment protection, dealing specifically with matters such as contracts of employment, disclosure of conditions of employment and information drawn directly from the Health and Safety at Work Acts. Externally, organizations need to supply information to the tax authorities, shareholders and government departments.
Organisation Theory and Communications
All the major organisation and management theorists have stressed the importance of effective communication to the success of organizations.
a. Classical theorists
Both Fayol and Taylor saw the need for good communication; in their case the stress was on communications along the chain of command. It is crucial in the classical model of organisation that all levels in the organisation know what is expected of them, and that higher levels know how well subordinates are achieving targets.
3 Business communication 3.3 Statistical Information b. Human Relations Approach
Elton Mayo and his followers placed great stress on full communication between management and workers. They argued that management should take employees into its confidence whenever possible. Many motivation theorists developed this point, seeing good communication as a motivator for higher performance.
c. Systems and Contingency Theorists
Probably the most widely applied theoretical approach to communication is system theory. We do not need to look far to see why this should be so:
Probably the most widely applied theoretical approach to communication is system theory. We do not need to look far to see why this should be so: