You are on page 1of 9

Corporate communication

In todays global corporation, this function serves as the conscience of the
corporation and is responsible for the organisations reputation. Previously
called public relations or public affairs, corporate communication has taken
on new importance in the 21st century as a result of corporate scandals or crises
at companies like Enron and Toyota.
The department usually oversees communication strategy, media relations,
crisis communications, internal communications, reputation management,
corporate responsibility, investor relations, government affairs and sometimes
marketing communication

Corporate communication is a management function or department, like
marketing, finance, or operations, dedicated to the dissemination of information
to key constituencies, the execution of corporate strategy and the development
of messages for a variety of purposes for inside and outside the organisation.
Jon Iwata, the chief communications officer for IBM, oversees a large
department focused on both marketing and communications for the company.
This global function is responsible for IBMs communications to all key
constituencies including customers, employees and communities. It also plays a
role in shaping and executing the companys Smarter Planet strategy, and
initiative focused on developing sophisticated systems to make the world a
better place like smart grids and efficient water management systems.
Jon works closely with Sam Palmisano, CEO of IBM, on strategy execution,
and is a member of the companys most senior management team.

The importance of communication in management:-

1. Necessary for planning: -
Planning, the most important functions of management, requires
extensive communication among the executives and the other personnel.
Communication is important in executing a planned programme and
then controlling the activities of the personnel with the help of feedback

2. Basis of co-ordination:-
The present day big organisations are designed on the basis of
specialisation and division of labour, constitute a large number of
In order to achieve the desired objectives, it is very necessary to
coordinate the efforts of the labour engaged in the various activities of
production and organisation.
Co-ordination requires mutual understanding about the organisational
goals, the mode of their achievement and their inter-relationship between
the work being performed by various individuals, this all can be achieved
only through effective communication.
3. Establishment of effective leadership:-
Communication is the basis of effective leadership. By developing the
skill of communication, a manager can be a real leader of his
A good system of communication brings them in close contact with each
other and removes misunderstandings.

4. Increases managerial efficiency:-

For the smooth running of the organisation, management conveys
directions, goals and targets; issues instruction, allocates jobs and
responsibilities; and looks after the performance of subordinates.
Moreover, management cannot work efficiently unless it knows the
grievances of its subordinates and removes it. Thus the skill of
communication has become an essential quality of successful
5. Promotes Co-operation and industrial peace:-Communication is a two-
way traffic which helps promoting cooperation and mutual understanding
between both the parties. The efficient downward communication helps the
management to tell the subordinates what the organisation wants and how it can
be performed. The upward communication helps the workers in putting their
grievances, suggestions and reactions before the management. Thus it promotes
the industrial peace and good relations.
6. Basis of Decision-making:-
In order to make prompt decision, fact and information should be
collected. Thus communication is primary requirement of decision
to implement the decision effectively, it becomes essential to convey the
decisions to the subordinates concerned through an effective system of

7. Morale Building and Motivation:-

Communication system enables management to change the attitude to
motivate influence and satisfy the subordinates.
Proper and timely communication between the interested parties reduces
the points of friction and minimise these that inevitably arise.
Good communication improves good industrial relations and ensures
participative and democratic pattern of management.

8. Smooth Working of Enterprise-

Communication makes the working of the enterprise smooth. All
organisational interaction depends upon the communication. It is the
process of communication which makes cooperative action and
coordination possible. When communication stops organised activity
ceases to exist.
9. Job satisfaction:-
Good communication removes the possibility of misunderstandings among
the parties concerned. Workers know what they have to do and how. It
creates a sense of cooperation among them. It will increase the morale of the
worker and each worker will be fully satisfied in his work.
Thus, we see that communication is very vital for the very existence of an

Reasons facilitating need for corporate communication:-

Size of an organization
New developments in IT
The concept of human capital
Need to learn corporate etiquette - how to greet, shake hands, dress for
success, and listen converse with seniors, clients, ladies etc
Hence the need for man power equipped with these skills are necessary.

Corporate Communications strategy

A corporate communication strategy improves the quality of decisions, which
significantly contributes to your organizations success. Approaching this
strategy and process with intent allows you to brainstorm on the best strategy to
involve all stakeholders, including using the best communication and
collaboration software available. Consider these five ways your
communications strategy can impact your company:
Leadership Isolation

In many organizations, CEOs and other executive leaders have a team of

gatekeepers to help them manage their time better and prioritize organizational
goals. Top leaders also enjoy huge benefits, which gives them a false sense of
security and seniority. Often, employees respond by being yes men, shielding
the leaders from reality. This affects decision-making at a fundamental level,
and compromises your organizations success. Through effective and open
corporate communications, leaders can create an open platform for feedback,
even allowing employees to raise their concerns anonymously. Gradually,
leaders can ask for input from the entire team when assessing progress and
making important decisions on the way forward.

Encourage Truth Telling

Over 75 percent of company initiatives fail because most employees would

rather agree with the boss and make a good impression than object with the
truth. While organizational leaders often have the best intentions, they dont
have the ultimate solution. A solid communication strategy allows for honest
contribution from all job levels and departments in the organization, allowing
people on the front lines to give their insight into the decision making process.
With the truth, and an inclusive corporate communications strategy, companies
can respond to market trends appropriately.

Improve Employee Satisfaction

Working with employees to improve their productivity and satisfaction through

engagement helps founders and leaders build effective and sustainable
organizations. When looking for a more inclusive strategy, your organization
must use an approach that engages fully with diverse cultures and
demographics. For example, employee engagement expectations for millennials
are quite different from older employees. Using software such as POPin allows
you to engage with employees, and customize the work environment to cater to
diverse needs. You can also get real-time feedback on the effectiveness of
different strategies, and adjust accordingly.

Improves Performance

Improving corporate communication improves employee engagement, creating

room for more inclusive and successful strategies. At the end of a task, every
team member can take pride in being part of the process, which boosts morale.
It also eliminates hierarchal management without these barriers, employees
can honestly engage with their managers, increasing individual and
departmental productivity. Leaders can also re-introduce organizational goals
and help employees align their personal goals to drive the corporate agenda.
Implementing these strategies can improve performance by up to 22%, which
positively affects the bottom line.

Internal Feedback

An inclusive communication strategy through software such as POPin creates

an avenue for continuous feedback on projects, and organizational progress.
Leaders can continually gauge strategy success and evaluate employee
performance on a regular basis. Employees can also help in assessing corporate
success, and advising leaders on the best way to move forward. Once corporates
understand the benefits of corporate communications, they can strategize for
better success. Ultimately, an all-inclusive strategy improves the bottom line
and helps corporates retain and develop talent for long-term success.

Communication skills are very important for all managers

and leaders
Good communication skills allow managers to perform their role more
Their role requires that they communicate. They must communicate many
things to many people: they must communicate effectively to the team, to their
suppliers, to their customers and financiers.
So it is important that leaders and managers are good communicators.
Communication skills for managers and leaders are different from
communication skills for the average person in the street.

Communication skills for managers consist, mainly, of six subset skills..

1. The ability to set out the goal or the target to be hit.

2. The ability to communicate the plan of action that, it is hoped will describe
successful action, capable of achieving the goal.
3. The ability to communicate delegated actions: who is going to do which
4. The ability to give corrective critical feedback to the people who are not
performing in the proper manner and, in addition, to be able to get them to
correct their performance and get "back on track".
5. The ability to give praise and appreciation to those who are doing a good
6. The ability to communicate the need for constant change, adaptation,
refinement and flexibility to the conditions, whilst still remaining faithful to
the overall goal and plan.

Types of communications
Formal communication informal communication
Formal communication is of two types:
(1) Vertical Communication:

(i) Downward Communication (ii) Upward Communication

(2) Horizontal Communication. All these types have been clarified in the
following diagram:

(Downward Communication) (Upward Communication)

(Horizontal Communication)

(1) Vertical Communication

Vertical communication is of the following two types:
(i) Downward Communication:
The communication by top hierarchy with their subordinates is called
downward communication. This communication includes orders, rules,
information, policies, instructions, etc. The chief advantage of the downward
communication is that the subordinates get useful timely information which
helps them in their work performance,

(ii) Upward Communication:

This is quite the reverse of the downward communication. This flows from the
subordinates to the superiors. The subject-matter of this communication
includes suggestions, reactions, reports, complaints, etc. This sort of
communication helps the superiors in taking decisions.

(2) Horizontal Communication

Horizontal communication takes place when two individuals of the same level
exchange information. Horizontal communication is used by the same level
officers to solve the problems of similar nature and profit by the experience of
other people. The subject-matter of horizontal communication includes
information, requests, suggestions, mutual problems and coordination-related

The exchange of informal messages usually takes place on the occasion of
community meals, social occasions, parties, etc. On such occasions, the
superiors gather such information from their subordinates as may be difficult to
get through formal communication. Such communication includes comments,
suggestions, etc.
This communication is based on informal relations (like friendship, membership
of the same club, the same place of birth, etc.) and, therefore, is free from all the
organisational formalities.
The exchange of informal messages usually takes place on the occasion of
community meals, social occasions, parties, etc. On such occasions, the
superiors gather such information from their subordinates as may be difficult to
get through formal communication. Such communication includes comments,
suggestions, etc.

For example a superior wants to complain against his subordinate to his higher
officer and at the same time he is afraid of giving it in writing. This can be
conveyed to the higher officer through informal communication, say during the
course of a conversation.

Informal communication is also called grapevine communication because there

is no definite channel of communication. Under it some information passes
through many individuals and covers a long distance making its origin obscure.
This is exactly like a grapevine where it is difficult to find the beginning and the