Business Communication in an Organization of Bangladesh A case study on Limited Unilever Bangladesh

Assignment Submitted by: Abdullah Al Mahmud - 1301010601

Assignment Submitted to: Forhad Hossain, Lecturer Department of Business Administration Leading University, Sylhet

April 2013
1

Contents

Abstract I. II. III. IV. V. VI. VII. VIII. Introduction Definition of Communication Communication Process Common Features of Communication Types of Communication

3 4 5 6 8 9

Benefits from Effective Communication in Business Organization 11 A case study of a MNC in Bangladesh: Unilever Bangladesh Limited 12 Conclusion 18

Abstract The objectives of the study are to find out the current situation of internal communication (and external communication as well, in some extent) in an organization in Bangladesh and how to improve it. Communication in the company is not working as effectively as it could. May be there is a need to strengthen the communication policy and internal communication itself in the company. The purpose of this assignment is to acknowledge readers with the main definition of communication. The study is based on a framework that leads the reader from the theoretical to the empirical study by first explaining fundamental concepts of communication process, types etc. Furthermore, there will be a case study of the Communication in an multinational organization in Bangladesh.

I.

Introduction

People today spend most of the time of their lives in different kinds of organization: school, work, hobbies and etc. And for organizations to function it takes effective internal communication. Todays employee is a different person in terms of values and needs than his or her counterpart in earlier decades. Most of todays employees are well educated, have higher expectations of what they will get out of their careers than their parents did, and want to understand more about the companies they work for. The workplace of today is also different tighter staffing, longer hours, greater workloads, and more emphasis on performance and the norm. The increasingly complex and highly competitive nature of todays business environment puts greater pressure on employees and also calls for more concerted effort in the area of internal communications. This study is done because a well-organized internal communication is very essential for the employees to be able to delegate work as well as inform the others about their status in projects and tasks. To be able to do that one has to communicate correctly, with the right and effective channel. There should be a functional way to keep everyone informed about things that everyone should know. Only a small portion of the people in most organizations has ever engaged in serious study of how the process of communication works. Communication is one of those things we deal with every day, so most of us assume we know quite a bit about it.

II.

Definition of Communication

Communication is an essential part of everyday life. People interact with each other every day and that calls for communication. An American communications philosopher Lee Thayer has said that communication and functions of energy are the two basic elements in our lives. Communication affects our lives as much as nutrition or health. (Blundel, 2004, 2) That is why it is very important to know what communication is and what it includes. Communication is the process by which information is transmitted between a sender and a receiver. Communication is an event, a process. To be more precise, it is exchange of messages between the sender and the receiver.

The fundamental purpose of communication in an organization is to enable and energize employees to carry out its strategic intent. It is essential for organizations to have the capability to quickly identify, send receive, and understand strategically relevant information. When making decisions on strategy and policy the necessity and the challenge of communication must be taken into account, and organizing the communication so that it functions effectively must be a part of the organizations strategic priorities.

III.

Communication Process:

There are many theories of communication, but for this study the researcher chose to tell about the basics of them. Laswell gave his theory for communication in 1948. It is basically put into words: 1. Who 2. Says what 3. Through which channel 4. To whom 5. With what effect? Laswells theory is concentrated on the study of mass media and effectiveness than the meaning of the message. One has to be able to observe and measure the change on the receivers side, which transforms into a recognizable element in the process of communication. The recognizable element is called an effect. This theory is concerned of the effectiveness of communication, which is very important in every aspect of life. Effective communication in organizations is the very base for functional operations and employee satisfaction. In other word, the whole process of communication is categorized into 8 steps: 1. Sender has the idea. 2. Sender encodes the idea. 3. Sender produces the message 4. Sender Transmit the message through channel 5. Receiver gets the message. 6. Receiver decodes the message. 7. Receiver responds the message 8. Receiver sends the feedback.

Communication is a complex non-linear process, with both the senders and the receivers sending feedback to each other. The meaning of the information or message being transmitted may be different for the sender and the receiver, and feedback enables both parties to work towards achieving a correspondence of meanings. There are challenges inherent with the actual practice of feedback. Receivers are not always able to provide feedback directly to senders Senders not always prepared or willing to receive feedback from receivers Senders are more prepared, or more willing, to receive feedback from some receivers over others

IV.

Common features of the Communication: Two or more person should be involved There should contain a Message Verbal or non-verbal way of communication Two way process: feedback is essential Formal or informal way of exchanging information Upward, downward or horizontal flows of information Process of exchange. Different media is used Provide practical information : SMART objective It should state responsibility clearly: Whom and with what effects Give data: facts and figures

V.

Types of communication:

According to the way of communication, it has 2 types: Verbal Communication: It is the expression of information through using words and grammar. Or it is the method that uses oral and written expression. Oral communication: Face 2 Face, conversation, meeting, interview etc. are oral communication Written communication: Letters, memo, report, telex, fax are used for written communication. Non-verbal Communication: It is a non-word communication. It is such communication neither written nor oral but uses some series of symbols. These are body movement, sign, color, picture, etc.

According to flow of information it is 2 types: Horizontal: Information flows among same level of managements, mostly in the same functions. Vertical: Information flows from different levels of management, not necessarily in the same department. And according to the nature of communication, it is divided into 2 types: Formal Communication. Informal Communication.

10

VI.

Benefits of effective Communication in Business Organization:

Information is one of the 4 resources of an organization. So, effective communication of information is very important in an organization. Communication enables the organization to flow the information from one corner to another, across the organization. Blood flows over the whole body and makes the body live, similarly information flows through communication channels and make the real scenario visible to managers and make the organization live. Numerous benefits includes good planning and strong decision making based on correct facts and figures, quick problem solving rather taking too much time in understanding the problem, information visible to ground level managers enables improved productivity, increasing both personal and company professional images, stronger business relationship with supplier and retailers, clear promotional material and better marketing strategy, responding stakeholders query etc.

11

VII.

A case study of Business Communication of an MNC in Unilever Bangladesh Limited

Bangladesh:

Unilever

has

three

basic

methods

of

transmitting

information. Verbal communication ranges from casual conversation between two employees to a formal speech by the managing director. In face-to-face meetings the meaning or the information being conveyed by the sender can be expressed through gesture or facial expressions that are referred to as non-verbal communication. Written communication ranges from a casual note to a co-worker to an annual report. Electronic mail systems and video machines have revolutionized written and verbal communication in organizations. Formal communication follows the organizations chain of command or hierarchy. The organizations informal communication network, the grapevine, is not based on hierarchy, but on social relationships. The grapevine is an important means through which employees fulfill their need to know about the organization. Forms and channels of Unilever Bangladesh Limited for internal

communication can be categorized into four different sectors according to some of their basic features. Channels can be so called close channels or distant channels Close channels serve small working groups or an individual workers needs. Distant channels transmit informative messages to the whole working community. Communication can be in a form of direct, personal communication between a small group of people or for instance two individuals, or transmitted communication through web to a small group of people. In this form of communication, methods normally used for mass communication are used, but in that case they are utilized for transmitting

12

messages to a smaller, restricted group of people, as in mass communication the group receiving information is larger and more randomly chosen.

13

Below there is a table demonstrating which are the communication channels and methods of the dimensions for communication are the ones described earlier. Close channels Immediate superior Other superiors Department meetings Unofficial occasions to exchange information Colleagues Distant Channels Briefings Cooperation Committees officials Meetings and negotiations Direct communication with the management Colleagues in other departments Transmitted communicatio n Departments Bulletins Board Departments circular letters Personnel Magazine Web communication Bulletins Board Circular letters Personnel magazine Customer magazine CEOs review Annual report Databases in the web Video news Internal radio Telephone news Web communication Unions communication Mass media and elected

Direct communicatio n

14

Some of the key communication activities carrying out by Unilever Bangladesh Limited are explained shortly below: Face to Face communication: Face-to-face communication has naturally a remarkable role in every day communication in Unilever. The offices are planned and built so that no one has their own separate room, except for the directors, general managers and departmental heads. Everyone sits in the same big open space, which is divided by very thin walls and practically shows everyones work place. When someone needs to ask something, they usually go and ask, if that happens within one office; sometimes people dont even need to get up because the walls are so thin that you can just ask and the person sitting next to you will answer. Concerning this, face-to-face communication in each office of the company is easy, it is different when speaking about the communication between the offices. Group Meetings: Every morning starts with a Morning meeting where each department sends their representative and updates the previous days activity and plans for future activity with necessary measures. And weekly departmental meetings are also carried out in the respective departments. Notice Board: Press releases, Notices, Chairmans monthly review speech, Trade Union meeting minutes, Any annual programs plan, committee list and itinerary etc, paper cutting are pasted in the central notice board as well as departmental notice board for mass communication internally. Telephone: Unilever has widespread strong telephone communication through PABX services. Each desk of the each floor, even each plants and factories are
15

covered with telephone so that employees can communicate with each other at once. But the company has not provided mobile phones except the Territory Managers. Video Conference: There is a conference room where usually directors meeting, departmental heads meeting are held, as well as there is facility of video conference between Dhaka Corporate Office and Chittagong Factory. Generally video conference is not so frequent, it happens in emergency top level discussion. Email: Email is one of the most important ways of internal communication at Unilever. Email is used very widely in the company for communication with the customers, with each other and for informative purposed. The working day of each employee starts with reading his or her email. All the important information that anyone would like to send to the colleagues or customers usually goes with the email. Messenger: Messenger is commonly used to communicate with the colleagues starting from communicating within your office and going up to skype-calling the colleagues from different countries. It is easy to use and doesnt cost much. If you really need some urgent information, you can just call your co-workers or send them a message. You can as well transfer files with this program and have a multiple chat with several people. Even though in many companies messengers are prohibited, because they are considered to be destructive, in Unilever is officially used. Corporate Calender in Microsoft Outlook: As it was mentioned earlier emailing is a big part of internal communication in Unilever. Everyone uses Microsoft outlook for that purpose. The programs also have the feature of having corporate folders, such as employee
16

addresses and corporate calendars. In the calendar anyone belonging to the net can find the information, who is in the office, who has a meeting, when the person is busy, free, on a business trip, on vacation or even ill. It is easy to see without going and asking a person about their schedule. That way if you need to plan your meeting and you would like certain persons to be present there as well, you can figure the most suitable time just by looking at the corporate calendar. Web pages: Unilever has its web-pages where anyone can find the information about the company, contact details, products, services and other useful information. In the survey the researcher will try to find out if this channel is useful for the employees, or it is just for external use. Companys news, press releases, CSR activity, CEOs review etc are available in the site. Companys Internal Server: One of the most important information sources and means of internal communication in Unilever is the companys internal server. By the server the researcher means a companys data base, which is located on the specially made server. Everyone from the company has an access to it, there you can find anything, like information about the clients, information about the projects, products, employees and etc. It is also very useful, for example, when the project is being carried out, you can see what documents have been bade and sent to the respective departments folder, what is still missing, what has been ordered, what are the requirements and etc. Anyone from any computer can access the general folders. News Bulletin: Unilever periodically issues the external news bulletin OIKKOTAN, which is normally sent to the all employees s for them to find out the news of the company, but every now and then the employees of the company read it as well to see if there are any news they have missed. At the moment the head
17

of Unilever is interested if there is a need of external news bulletin. It used to exist a while ago, and now there is a question if it should come back to use. Data DVD & CD: Company has its own Data-DVD and Data-CD, which contain the information about company and its products. This are as well means of communication, but mostly those sources are given to the newcomers, so they can get familiar with the products of the company and its operations. Those means of communication are as well used for external communication and given out to the customers. There are several questions about those data-drives in the questionnaire to see if the personnel uses them to get any information. Specialized Software: Unilever uses different specialized software for smooth operation in different functions. The major softwares are SAP for financial, ARIBA for purchasing equipments, MP2 for raw material and packaging material storage, FREYA for salary, PROTTASHA for HR issues like leave and Compensation benefit etc adjustment, Mass Media: Television: Company adopted almost all mass media. In the television, most of the TV commercials belong to Unilever. FM Radio: Recently they have also captured the FM radio media which is much popular to young people. Billboard: In the heart of the city or even in the high ways we see the biggest billboards belong to Unilerver. Facebook and Youtube: Unilever has developed their fun-page in facebook too because no company cant avoid this ever growing popular media. They are posting their advertisements to youtube also.
18

Newspaper and Magazine: In the daily newspaper or monthly magazines, Unilever spends ample of money in advertisements, especially new launches or promotional activities.

19

VIII. Conclusion It seems that communication in terms of written form has been seen as an essential part of the company. Without communication, the business is likely to be stopped. Right decisions are always taken upon receiving the correct information timely across the company. But it has also been seen that sometimes email culture brings much beaurocracy because many a times employee seeks written approval for everything. Even sophisticated software SAP creates lots of ambiguity and complexity at month closing. Some of the employees are not accustomed with SAP and other sophisticated communication software and that why mistakes are happening in operations. Whatever the limitations are within the organization, the employee themselves should continue frequent real time communication systems for achieving the objectives through software and internet based systems. Company may provide more training for utilizing the sophisticated software to get better result and enhance the productivity, subsequently profit.

20