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Communication can be defined as the process of transmitting information and

common understanding from one person to another (Keyton, 2011). The word
communication is derived from the Latin word, communis, which means
common. The definition underscores the fact that unless a common understanding
results from the exchange of information, there is no communication.

Communication is defined as “The flow of material information perception,

understanding and imagination among various parties”.

Peter Little: “Communication is a process by which information is transmitted

individuals and / or organizations so that an understanding response results”.

In the words of Newman, Summer & Warren, “communication is an exchange

of facts, ideas, and opinions by two or more persons.”

According to Keith Davis, “Communication is the process of passing

information and understanding from one person to another.”

Communication should not be interpreted as merely sending or receiving

messages. It involves a systematic and continuous process of telling, listening and
understanding. It is a two way process and is complete only when there is some
response from the receiver of information.


 Involves At Least Two Persons

 Two Way Process
 The basic purpose is to create an understanding
 May be formal or informal
 Dynamic Process:
 Pervades all human relationship
 Involves ideas and emotions.
 Goal Oriented Process
 Conversational
 Interdisciplinary Science
Objectives of Business Communication

 To Exchange Information
 To Achieve Goal:
 To Maintain Co-ordination and Co-operation
 To Plan
 To Facilitate Direction and Motivation
 To provide information regarding past and present
 To Create Consciousness
 To Improve Employer-Employee Relationship

The importance of communication in an organization can be summarized as


1. Communication promotes motivation by informing and clarifying the

employees about the task to be done, the manner they are performing the
task, and how to improve their performance if it is not up to the mark.
2. Communication is a source of information to the organizational members
for decision-making process as it helps identifying and assessing
alternative course of actions.
3. Communication also plays a crucial role in altering individual’s attitudes
4. Communication also helps in socializing. In todays life the only presence
of another individual fosters communication. It is also said that one cannot
survive without communication.
5. communication also assists in controlling process. It helps controlling
organizational member’s behaviour in various ways.. They must comply
with organizational policies, perform their job role efficiently and
communicate any work problem and grievance to their superiors. Thus,
communication helps in controlling function of management.
6. It acts as the basis for co-ordination
7. Ensure smooth functioning of an organization

Types of communication

communication based on the communication channels

 Verbal Communication
Verbal communication refers to the form of communication in which message is
transmitted verbally; communication is done by word of mouth and a piece of
writing. Verbal Communication is further divided into:
 Oral Communication
 Written Communication

In oral communication, spoken words are used. It includes face-to-face

conversations, speech, telephonic conversation, video, radio, television, voice
over internet
In written communication, written signs or symbols are used to communicate.
A written message may be printed or hand written. In written communication
message can be transmitted via email, letter, report, memo etc.

 Nonverbal Communication

Nonverbal communication is the sending or receiving of wordless messages. We

can say that communication other than oral and written, such as gesture, body
language, posture, tone of voice or facial expressions, is called nonverbal
communication. Nonverbal communication is all about the body language of

Communication Based on Purpose and Style

1. Formal Communication
2. Informal Communication

In Formal communication, certain rules, conventions and principles are

followed while communicating message. Formal communication occurs in
formal and official style.

Informal communication is done using channels that are in contrast with formal
communication channels. It’s just a casual talk. It is established for societal
affiliations of members in an organization and face-to-face discussions. It
happens among friends and family. The informal channel of communication is
also known as Grape wine.

Communication Based on Direction of flow

 Upward communication-Which flows from Subordinate to superior. e.g.-

opinions ideas complaints etc.
 Downward communication- Which flows from Superior to subordinate.
E.g.- from boss to employees and from managers to operating staff
 Lateral or horizontal communication: - This type of communication
can be seen taking place between persons operating at the same level or
working under the same executive.
 Diagonal or crosswise communication:-Diagonal or crosswise
communication takes place when people working at the same level
interact with those working at a higher or lower-level of organisational
hierarchy and across the boundaries of their reporting relationships

Process of Communication
Barriers of communication

 Process Barriers: -Every step in the communication process is necessary

for effective and good communication. Blocked steps become barriers.
 Physical barriers: - number of physical distractions can interfere with
the effectiveness of communication, including a telephone call, drop-in
visitors, distances between people, walls, and static on the radio, noise
 Semantic Barriers: -The words we choose, how we use them, and the
meaning we attach to them cause many communication barriers. The
problem is semantic, or the meaning of the words we use. The same word
may mean different things to different people.
 Psychological Barriers: - The psychological barrier of communication is
the influence of psychological state of the communicators (sender and
receiver) which creates an obstacle for effective communication.
Communication is highly influenced by the mental condition that the
communicators are in and is disturbed by mental disturbance.
 Cross-cultural barriers: Cultural diversity within a country, and cultural
differences between people from different countries, are a major cause of
barriers. This is because people are conditioned by their cultures,
 Perceptual Barriers: The most common problem faced these days is that
of the difference in opinion between two people. The varied perceptions of
every individual give rise to a need for effective communication.

Some other Barriers are;

o Information overload
o Poor listening
o Filtering-Manipulating original message into a favorable format to the
o Emotions
o Complexity of orgnisational structure
o Poor Retention (Limited memory)
o Loss by transmission
o Time pressure

Remedial measures to the barriers of communication

 Eliminating Differences in Perception

 Use of simple language
 Reduction and elimination of Noise levels
 Active listening
 Feedback at regular intervals
 Prioritise information to be passed
 Proper Media Selection
 Simple organisationl structure
 Flexibility in meeting the targets.
 Use of effective body language to conquer emotion.


The Control function is closely related with all other functions of management.
The management control is the process of ensuring that the actual plan
implementation matches with the original plan. It is an ongoing and dynamic
function and linked with other function of the management in a circular
According to Koonts O‘Donnel, ―Controlling is the measurement of
accomplishment against the standards and the correction of deviation to assure
attainment of objectives according to plan.

Steps in Control Process

The control process involves four basic steps as mentioned below: -

1. Establishing standards: - Standard represents criteria of performance. This

implies the statement of goals and objective envisaged under the planning
process are stated in clear and measurable terms along with specific milestones.
The standard should have some characteristics to produce effective
Examples of Quantitative Standards:
(a) Revenue to be earned.
(b) Units to be produced and sold.
(c) Cost to be incurred.
Examples of Qualitative Standards:
(a) Improving motivation level of employees.
(b) Improving labour relations.
(c) Improving quality of products.
(d) Improving goodwill etc.
2. Measurement of performance against standards: The measurement of
performance is an ongoing process. Several techniques are used by the
management to measure the performance.
3. Comparing the actual performances with standards (Performance
Appraisal): The measured results are compared with the project and standards.
In case the performance meets the standards, then it would mean that the
performance or activity is progressing in the desired direction.
4. Analysing Deviations: Some deviations are possible in all the activities.
However, the deviation in the important areas of business needs to be corrected
more urgently as compared to deviation in insignificant areas.
5. Taking corrective action and feed back: In the situations when
performance does not confirm to the specified criteria of the standards, then it is
necessary to take corrective measures to deal with the observed deviations in the
Tools and Techniques of Effective Control

1. Direct Supervision and Observation

'Direct Supervision and Observation' is the oldest technique of controlling. The
supervisor himself observes the employees and their work. This brings him in
direct contact with the workers. So, many problems are solved during

2. Financial Statements
All business organisations prepare Profit and Loss Account. It gives a summary
of the income and expenses for a specified period. They also prepare Balance
Sheet, which shows the financial position of the organisation at the end of the
specified period. Financial statements are used to control the organisation. The
figures of the current year can be compared with the previous year's figures.

3. Budgetary Control
A budget is a planning and controlling device. Budgetary control is a technique
of managerial control through budgets. It is the essence of financial control.
Budgetary control is done for all aspects of a business such as income,
expenditure, production, capital and revenue. Budgetary control is done by the
budget committee.

4. Break Even Analysis

Break Even Analysis or Break Even Point is the point of no profit, no loss. The
Break-even analysis acts as a control device. It helps to find out the company's
performance. So the company can take collective action to improve its
performance in the future. Break-even analysis is a simple control tool.

5. Return on Investment (ROI)

Investment consists of fixed assets and working capital used in business. Profit
on the investment is a reward for risk taking. If the ROI is high then the financial
performance of a business is good and vice-versa.

6. Management by Objectives (MBO)

MBO facilitates planning and control. It must fulfill following requirements: -
1. Objectives for individuals are jointly fixed by the superior and the
2. Periodic evaluation and regular feedback to evaluate individual
3. Achievement of objectives brings rewards to individuals.

7. Management Audit
Management Audit is an evaluation of the management as a whole. It critically
examines the full management process, i.e. planning, organising, directing, and

8. Management Information System (MIS)

MIS collects data, processes it and provides it to the managers. MIS may be
manual or computerised. With MIS, managers can delegate authority to
subordinates without losing control.

9. PERT and CPM Techniques

Programme Evaluation and Review Technique (PERT) and Critical Path Method
(CPM) techniques were developed in USA in the late 50's. Any programme
consists of various activities and sub-activities. Successful completion of any
activity depends upon doing the work in a given sequence and in a given time.
CPM / PERT can be used to minimise the total time or the total cost required to
perform the total operations.
Importance is given to identifying the critical activities. Critical activities are
those which have to be completed on time otherwise the full project will be
So, in these techniques, the job is divided into various activities / sub-activities.
From these activities, the critical activities are identified. More importance is
given to completion of these critical activities. So, by controlling the time of the
critical activities, the total time and cost of the job are minimised.

It is a process of integrating the interdepartmental activities as unified action
towards the fulfillment of the predetermined common goals of the organization.

Koontz & O’Donnell, has defined coordination in these simple words as,
“Coordination is the essence of management for the achievement of harmony of
individual efforts towards the accomplishment of group goals”.

1. It is not a separate function of management.
2. I t is necessary to all levels of management.
3. It is a continuous and dynamic process.
4. Group efforts are more relevant than individual efforts.
5. Unity of action is the heart of co-ordination.
6. It is a system concept.

Types of Co-ordination
The following are the important types of co-ordination.
1. Vertical co-ordination: - It refers to co-ordination between activities of a
manager and his subordinates
2. Horizontal co-ordination:- It refers to co-ordination among peers – ie
employees working at the same levels in organizational hierarchy and among
various departments.
3. Diagonal co-ordination: It is co-ordination among the users and between
users and service personnel, which is achieved through understanding,
negotiation and voluntary effort.

Principles of Co-ordination:
In order to ensure effective co-ordination, the co-ordination should be based on
certain principles:
1. Personal contact: Effective co-ordination can be achieved through
personal contact. Personal contact avoids controversy and
2. Reciprocal relationship: This principle says that all factors in a situation
are reciprocally related. Each factor influences other factor.
3. Dynamism: Co-ordination is modified according to the external and
internal actions and decisions ie co-ordination should be a dynamic one.
4. Continuity: It says that co-ordination is a continuous process.
5. Self-co-ordination: According to this principle, the function of one
department affects other departments and in turn, is affected by the
function of other departments.
6. Clear cut objectives: As per this principle, the departments heads should
know clearly the objectives of the organization.
7. Effective communication: Effective communication is very necessary for
the proper co-ordination.
8. Early stage of starting: The co-ordination should be started even from the
planning function of management.

Techniques of Coordination

1. Sound Planning
Coordination facilitates sound planning in the organization. The plan, policies,
and comprehen-sive programs prefer coordination of activities and individuals.
2. Sound Organizational Structure
A sound organizational structure contributes to effective coordination. It clearly
defines the authority relationship which provides an effective means of
integrating the activities of different departments.

3. Clearly defined Objectives

The goal of the organization must be clearly defined. The individual in the
organization should understand the overall objectives.

4. Maintaining Co-operation
Co-operation is the result of maintaining good relationship among the people in
the organization. It depends on sound policies and procedures. Informal contacts
should be encouraged to supplement formal communication. The coordination is
more effective and long lasting when the organization achieves the voluntary co-
operation of employees.

5. Formation of Committees
A committee is a group of a person entrusted with functions collectively as a
group. The decisions of committee are easy to be implemented as all who are
represented are bound to follow committee decisions. It promotes coordination
through better and free interchange of ideas, feelings, and opinions.

6. Comprehensive Policies and Programs

Coordination becomes very easy if there are well-defined and comprehensive
policies and programs. This brings uniformity in action because everyone
understands the policies and programs in the same sense. These are also good
tools for coordination as they provide the timetable, schedules etc.

7. Voluntary Cooperation
Coordination is more effective and long lasting when it is achieved through the
voluntary cooperation of employees.

8. Effective Communication
A good communication system contributes to effective coordination by
promoting mutual understanding and cooperation among various individuals.

9. Simplified Organization
A simple and sound organization is an important means of coordination. The
organization structure of a line of authority and respon-sibility from top to the
bottom should be clearly defined.
10. Effective Leadership and Supervision
Effective leadership facilitates coordination efforts in the planning and the
execution stage. The activities of the subordinates can be continuously guided by
a good leader in the right direction. It can inspire to pull them together for the
accomplishment of the common objectives.

11. Staff Meetings or Conferences

The Meeting and conference provided to the staffs is a platform for discussion
and solution of various problems faced by the departments. Staff meetings and
conferences may be highly effective in the promotion of coordination. It helps to
learn new things. It provides the subordinates an opportunity to bring up the

12.Chain of Command
The Chain of command is one of the most important methods of coordination.
The supreme coordinating power in an organization is the authority. The exercise
of authority through the chain of command or hierarchy is the traditional means
of coordination.

13. Indoctrination
Indoctrination refers to the religious idea. Indoctrinating the organizational
mem-bers with the goals and mission is also the essential techniques of the
organization. It can transform a neutral body into a committed body.

14. Incentives
Incentives refer to something that encourages someone to do something. In the
coordination, incentives may be used to rebate the interest and to reduce conflicts.
For instance, profit helps in promoting team spirit and cooperation between
employers and workers.

15. Liaison Departments

It is necessary to contact between different organizational units, for this the
liaison officers may be employed. A liaison department ensures the meeting of
production department, delivery of dates, and specifications by the sales
department. Special coordinators may be appointed in the certain asset.