Effective Communication in Business

(Chapter-1)

What is Communication

Exchanging or transferring information from one part of the business to another that leads to some outcome, changed behaviour or changed processes and practices. An idea, no matter how great, is useless until it is transmitted and understood by others. Communication can also be termed as the exchange of thoughts between two or more people, groups or organizations, verbally, through symbols, or in writing. Conti

What is Communication

Communication is the Nucleus of the organization. The meanings of words are not in the words; they are in us. Communication is a means, not an end. Communication has no life of its own. There is no meaning in a message except what you put into it. Most people think at a rate of 400 - 500 W/M. Most people speak at only about 125 W/M and write at even slower space 25 to 30 W/M. Formal Communication. Established, agreed procedures/ rules/ channels. recognized and

Informal Communication. It refers to the grapevine that informally takes place in an organization. Such a network is free to move in any direction, skip authority levels, and satisfy group members social needs.

Importance of Communication
Effective communication is important to avoid disastrous repercussions caused by the poor communication: Major World Air Accidents/Crashes/Wars

Employee Frustration
Customer dissatisfaction Employer Vs Employee lack of trust Government Vs public poor relations Broken family/friends relations

Communication as Lifeblood of Organization

Organizations cant function effective communication. without open and Exchange of information is must for effective individual and collective performance at all levels. Internal Communication. horizontal / lateral. Downward, upward &

External Communication. Effective communication with external stakeholders can help create a good reputation, and have a positive impact on its ultimate success. Overall Communication Costs. in overall communication costs. Time is a major factor

Direction of Internal BC
Downward:
Communication that flows from one level of a group organization to a lower level. This is typically what we think of when managers communicate with workers. Its purpose is to assign goals, provide instructions, communicate policies and procedures, provide feedback. It does not have to be face to face or an oral communication.

Upward:
Upward communication flows to a higher level in the group or organization.
It is used to provide feedback to higher-ups, inform them of progress, and relay current problems e.g. performance (reports prepared by lower management), suggestion boxes, employee attitude surveys, etc.

Direction of Internal BC
Lateral:
When communication takes place among members of the same work group, among members of work groups at the same level, among managers at the same level.

Horizontal communications are often necessary to save time and facilitate coordination.
They can create dysfunctional conflicts when the formal vertical channels are breached, when members go above or around their superiors to get things done, or when bosses find out that actions have been taken or decisions made without their knowledge.

Downward

Lateral

Upward

Types of Communication
Verbal Communication. Communication words whether Written or Oral.
Written.

through

Letters, memos, notice boards, bulletin boards, employee manuals etc.

Oral.

Announcements,

speeches

sermons,

counseling, demonstrations / explanations etc.

Non-Verbal Communication. Communication through various means other than words appearance, body movements, facial expressions, gestures, smell & touch, Voice, silence etc.

Various Types of Communication

Type

Merits
Quick transmission Quick feed back
Permanent record Tangible record Verifiable record Relatively low cost for others Conveys meanings fast

Demerits
Greater potential for distortion
Takes more time Lack of feedback

Verbal o Oral

o Written

o Electronic media

Problems of security for others Can be misinterpreted

Non-Verbal

Benefits of Effective Communication

Quicker problem solving Stronger decision making Increased productivity Steadier work flow

Stronger business relationships

Clearer promotional materials Enhanced professional image

Improved stakeholder response

Customer Loyalty/ delightedness

The Internal Audiences

CEO / President
VP Human Resources

VP Production

VP Marketing

VP Sales Sales Manager A

VP Finance Sales Manager International District 3 Manager

Sales Manager East District 1 Manager Sales Rep Sales Rep

Sales Manger B

District 2 Manager Sales Rep Sales Rep

Sales Rep

The External Audiences

General public, potential employees, customers, stockholders Special interest group Customers clients Trade association, Competitors, other businesses, and industries Subsidiaries Unions Employment agencies

Professional services (auditions,legal,etc)

Suppliers, vendors

The Corporation

Distributors, Wholesalers, Franchisees, Retailers, agents Legislators, Government agencies, regulation Offices

The media

Stock holders Investors and lenders

Foreign Governments and offices

The courts

Communication Model
(Various Components)
Context
(Stimuli)

Sender / Encoder

Message

Receiver/ Decoder

Medium
(Verbal/ Nonverbal)

Feedback
(Verbal/ Nonverbal)

Communication Model (Contd)

Context:

A broad field that includes country, culture, organization and internal / external stimuli; all have separate conventions for processing and communicating information. Internal stimuli have complex influence on how to compose & send a message. Understanding of the senders own and the receivers attitude, emotions, experience, likes/dislikes all influence the way communication is generated.

Especially important is the senders ability to analyse the receivers culture, viewpoint, needs, skills, status and expectations.

Communication Model (Contd)

Sender/Encoder:

Sender encodes the messages in the form of words, symbols, graphs, charts etc. to facilitate the receiver in correct understanding and suitably reacting to the message.

Message:

It is the core idea that sender wants to communicate; it could be verbal (written or spoken) or non-verbal symbols. While composing a message, sender must decide what is the main point of message and what is the other information to be included.

Communication Model (Contd)

Medium:

Medium may include Memo, Letter, Notice board, Fax, Telephone, E-mail / Internet, Face to face, Body language, Video / Video conferencing.

Receiver/decoder:

The message receiver is the decoder who interprets, understands and then responds to the message. Receiver/decoder is influenced by context and by his/her own mental filters.

Communication Model (Contd)

Feedback:

Feedback is the ultimate impact of the message that compels the receiver to act / react in a particular way or keep quiet. It could be oral or a written message. Sender wants feedback to learn about the impact of the message and the extent to which message has achieved desired results / behaviour. Feedback helps the sender to know about the weak points of his/her message and further improve it.

CONCEPTS AND PROBLEMS

Conventions of Meanings
Shapes & Symbols used should have same meanings for both the parties (to avoid misunderstanding). Standard (commonly accepted) acronyms, abbreviations AIDS, LASER, LIFO, FIFO etc. Denotations. Dictionary meanings should be used at right

place, keeping in view the positive / negative sense.

Connotations. Application of words other than their common use e.g. using villa, cottage, lodge etc for the house should be used carefully.

Perceptions of Reality
Dynamic scenario is fast changing the perception of
the people. Common problems are:
Abstracting. should be used. Inferring. Be careful while making inferences. Selecting some facts and omitting

others. Only necessary/ relevant facts/ figures

Only necessary/ desirable inferences should be

used, after collecting some relevant information. Similarly dont react to guesstimates.

Values, Attitudes and Opinions

Attitude of the receiver can reflect the acceptance or rejection of the message. Main problems involving attitude, values & opinions are:

Favorable information will be accepted and would yield better results.

Inadequate / incorrect information recipient angry.

will make the

Closed mind stops people from thinking on aspects other than their pre-conception. Senders credibility plays important role in receiving favorable response from the recipients. Sensitivity to the state of mind (by both parties) helps to communicate in a positive way.

Nonverbal Communication
How Appearance Communicates. a nonverbal message to the receiver. How Body Language Communicates. Facial Format, neatness language of written message and presentation all send

expression, gesture, posture, movement, smell, touch,

voice all influence the recipient/ audience.

Appearance Communicates

Posture has Impact

Facial Expressions Convey Meanings

Neutral

Surprise

Happiness

Fear

Sadness

Anger

Nonverbal Communication (contd)

How Silence, Time & Space Communicate. Concept of time & space are culture - specific. Effective communicators adapt to receivers expectations.
Silence. Keeping silence for an immediate oral request or not responding to a letter indicate the attitude of the receiver; taken as not accepted.
Time.

Waiting for a response from the recipient for an important request creates negative feelings.
Space. A sense of being egalitarian; where you

stand in the group; how much space you maintain from others.

Barriers to Communication
Ability of the sender how much the senders
understand of the message they are trying to send. Content including technicalities and jargon. Method of communication including style and body language where appropriate.

Skills and attitude of the receiver.

Organisational factors complexity and scope of the

organisation.

Communication Challenges in Global Market

Diversified culture and language.
Capabilities/ knowledge of both sender and receiver. Globalization. Fast technological advancements IT boom. Ever changing communication demands of customers. Hostile competition.

How to Improve Communication

Minimize distractions.
Consider/ understand the audience empathy. Improve your skills successfully counter the propaganda by the rivals.

Give and get feedback. Apply business etiquettes & ethics.

Thank You