BUSINESS COMMUNICATION FOR MANAGERS

MODULE 1
 DEFINE COMMUNICATION

Communication is simply the act of transferring information from one

place, person or group to another.

Every communication involves (at least) one sender, a message and a recipient.
This may sound simple, but communication is actually a very complex subject.

The transmission of the message from sender to recipient can be affected by a

huge range of things. These include our emotions, the cultural situation, the
medium used to communicate, and even our location. The complexity is why
good communication skills are considered so desirable by employers around the
world: accurate, effective and unambiguous communication is actually
extremely hard.

communication, n. The imparting or exchanging of information by speaking,

writing, or using some other medium. …The successful conveying or sharing of
ideas and feelings.

As this definition makes clear, communication is more than simply the

transmission of information. The term requires an element of success in
transmitting or imparting a message, whether information, ideas, or emotions.

A communication therefore has three parts: the sender, the message, and
the recipient.
 The sender ‘encodes’ the message, usually in a mixture of words and non-verbal
communication. It is transmitted in some way (for example, in speech or
writing), and the recipient ‘decodes’ it.

Of course, there may be more than one recipient, and the complexity of
communication means that each one may receive a slightly different message.
Two people may read very different things into the choice of words and/or body
language. It is also possible that neither of them will have quite the same
understanding as the sender.

In face-to-face communication, the roles of the sender and recipient are not
distinct. The two roles will pass back and forwards between two people talking.
Both parties communicate with each other, even if in very subtle ways such as
through eye-contact (or lack of) and general body language. In written
communication, however, the sender and recipient are more distinct.

Categories of Communication

There are a wide range of ways in which we communicate and more than
one may be occurring at any given time.

The different categories of communication include:

 Spoken or Verbal Communication, which includes face-to-face, telephone,

radio or television and other media.

 Non-Verbal Communication, covering body language, gestures, how we dress

or act, where we stand, and even our scent. There are many subtle ways that we
communicate (perhaps even unintentionally) with others. For example, the tone
of voice can give clues to mood or emotional state, whilst hand signals or
gestures can add to a spoken message.
 Written Communication: which includes letters, e-mails, social media, books,
magazines, the Internet and other media. Until recent times, a relatively small
number of writers and publishers were very powerful when it came to
communicating the written word. Today, we can all write and publish our ideas
online, which has led to an explosion of information and communication
possibilities.

 Visualizations: graphs and charts, maps, logos and other visualizations can all
communicate messages.

 An effective communicator understands their audience, chooses an

appropriate communication channel, hones their message for this
particular channel and encodes the message effectively to reduce
misunderstanding by the recipient(s).
 They will also seek out feedback from the recipient(s) to ensure that the
message is understood and attempt to correct any misunderstanding or
confusion as soon as possible.
 Receivers can use techniques such as Clarification and Reflection as
effective ways to ensure that the message sent has been understood
correctly.
 Importance of Communication
 1. The Basis of Co-ordination
 The manager explains to the employees the organizational goals, modes of
their achievement and also the interpersonal relationships amongst them.
This provides coordination between various employees and also
departments. Thus, communications act as a basis for coordination in
the organization.
 2. Fluent Working
 A manager coordinates the human and physical elements of an organization
to run it smoothly and efficiently. This coordination is not possible without
proper communication.
 3. The Basis of Decision Making
 Proper communication provides information to the manager that is useful
for decision making. No decisions could be taken in the absence of
information. Thus, communication is the basis for taking the right
decisions.
 Learn more about Barriers of Communication here in detail.
 4. Increases Managerial Efficiency
 The manager conveys the targets and issues instructions and allocates jobs
to the subordinates. All of these aspects involve communication. Thus,
communication is essential for the quick and effective performance of the
managers and the entire organization.
 5. Increases Cooperation and Organizational Peace
 The two-way communication process promotes co-operation and mutual
understanding amongst the workers and also between them and
the management. This leads to less friction and thus leads to industrial
peace in the factory and efficient operations.
 6. Boosts Morale of the Employees
 Good communication helps the workers to adjust to the physical and social
aspect of work. It also improves good human relations in the industry. An
efficient system of communication enables the management to motivate,
influence and satisfy the subordinates which in turn boosts their morale and
keeps them motivated.


 PROCESS OF COMMUNICATION
Communication Process

Definition: The Communication is a two-way process wherein the message in

the form of ideas, thoughts, feelings, opinions is transmitted between two or
more persons with the intent of creating a shared understanding.

Simply, an act of conveying intended information and understanding from one

person to another is called as communication. The term communication is
derived from the Latin word “Communis” which means to share. Effective
communication is when the message conveyed by the sender is understood by
the receiver in exactly the same way as it was intended.

Communication Process

The communication is a dynamic process that begins with the conceptualizing

of ideas by the sender who then transmits the message through a channel to the
receiver, who in turn gives the feedback in the form of some message or signal
within the given time frame. Thus, there are Seven major elements of
communication process:
1. Sender: The sender or the communicator is the person who initiates the
conversation and has conceptualized the idea that he intends to convey it to
others.
2. Encoding: The sender begins with the encoding process wherein he uses certain
words or non-verbal methods such as symbols, signs, body gestures, etc. to
translate the information into a message. The sender’s knowledge, skills,
perception, background, competencies, etc. has a great impact on the success of
the message.
3. Message: Once the encoding is finished, the sender gets the message that he
intends to convey. The message can be written, oral, symbolic or non-verbal
such as body gestures, silence, sighs, sounds, etc. or any other signal that
triggers the response of a receiver.
4. Communication Channel: The Sender chooses the medium through which he
wants to convey his message to the recipient. It must be selected carefully in
order to make the message effective and correctly interpreted by the recipient.
 The choice of medium depends on the interpersonal relationships between the
sender and the receiver and also on the urgency of the message being sent. Oral,
virtual, written, sound, gesture, etc. are some of the commonly used
communication mediums.
5. Receiver: The receiver is the person for whom the message is intended or
targeted. He tries to comprehend it in the best possible manner such that the
communication objective is attained. The degree to which the receiver decodes
the message depends on his knowledge of the subject matter, experience, trust
and relationship with the sender.
6. Decoding: Here, the receiver interprets the sender’s message and tries to
understand it in the best possible manner. An effective communication occurs
only if the receiver understands the message in exactly the same way as it was
intended by the sender.
7. Feedback: The Feedback is the final step of the process that ensures the
receiver has received the message and interpreted it correctly as it was intended
by the sender. It increases the effectiveness of the communication as it permits
the sender to know the efficacy of his message. The response of the receiver can
be verbal or non-verbal.

Note: The Noise shows the barriers in communications. There are chances
when the message sent by the sender is not received by the recipient.

MODELS OF COMMUNICATION

 Aristotle model of communication

Aristotle was the first to take an initiative and design the communication model.

Let us first go through a simple situation.

In a political meeting, the prospective leader delivers speech to the audience
urging for more votes from the constituency. He tries to convince the crowd in
the best possible way he can so that he emerges as a winner. What is he
actually doing ?

He is delivering his speech in a manner that the listeners would get convinced
and cast their votes only in his favour, or in other words respond in the same
manner the speaker wanted to. Here the leader or the speaker or the sender is the
centre of attraction and the crowd simply the passive listeners.

The example actually explains the Aristotle model of communication.

According to this model, the speaker plays a key role in communication. He

is the one who takes complete charge of the communication. The sender first
prepares a content which he does by carefully putting his thoughts in words
with an objective of influencing the listeners or the recipients, who would then
respond in the sender’s desired way. No points in guessing that the content has
to be very very impressive in this model for the audience or the receivers to get
convinced. The model says that the speaker communicates in such a way that
the listeners get influenced and respond accordingly.

The speaker must be very careful about his selection of words and content in
this model of communication. He should understand his target audience and
then prepare his speech. Making eye contact with the second party is again a
must to create an impact among the listeners. Let us again go through the first
example. The politician must understand the needs of the people in his
constituency like the need of a shopping mall, better transport system, safety of
girls etc and then design his speech. His speech should address all the above
issues and focus on providing the solutions to their problems to expect
maximum votes from them. His tone and pitch should also be loud and clear
enough for the people to hear and understand the speech properly. Stammering,
getting nervous in between of a conversation must be avoided. Voice
modulations also play a very important role in creating the desired effect. Blank
expressions, confused looks and similar pitch all through the speech make it
monotonous and nullify its effect. The speaker should know where to lay more
stress on, highlight which words to influence the listeners.

One will definitely purchase the mobile handset from that store where the sales
man gives an impressive demo of the mobile. It depends on the sales man what
to speak and how to speak in a manner to influence the listeners so that they
respond to him in a way he actually wants i.e. purchase the handset and increase
his billing.

The Aristotle model of communication is the widely accepted and the most
common model of communication where the sender sends the information or a
message to the receivers to influence them and make them respond and act
accordingly. Aristotle model of communication is the golden rule to excel in
public speaking, seminars, lectures where the sender makes his point clear by
designing an impressive content, passing on the message to the second part and
they simply respond accordingly. Here the sender is the active member and the
receiver is passive one.

2 Aristotle(384-322 B.C) was a Greek philosopher and writer born in Stagira,

Northern Greece. He was also the teacher of Alexander the Great. He studied
physics, logic, mathematics, etc.
While exploring the human nature scientifically, Aristotle developed a linear
model of communication for oral communication known as Aristotle’s Model of
Communication. This is considered as the first model of communication and
was proposed before 300 B.C. It is also the is most widely accepted among all
communication models.
Aristotle Model is mainly focused on speaker and speech. It can be broadly
divided into 5 primary elements: Speaker, Speech, Occasion,
Audience and Effect.
The Aristotle’s communication model is a speaker centered model as the
speaker has the most important role in it and is the only one active. It is the
speaker’s role to deliver a speech to the audience. The role of the audience is
passive, influenced by the speech. This makes the communication process one
way, from speaker to receiver.
The speaker must organize the speech beforehand, according to the target
audience and situation (occasion). The speech must be prepared so that the
audience be persuaded or influenced from the speech.

He believed “Rhetoric” is the study of communication and persuasion and

different message or speech should be made for different audiences at different
situations to get desired effects or to establish a propaganda. This model was
highly used to develop public speaking skills and create a propaganda at that
time so, it is less focused on intrapersonal or interpersonal communication.
Even if the model is speaker oriented and focuses on audience interaction in
communication, there is no concept of feedbacks.

For instance, a politician (speaker) gives a speech to get votes from the civilians
(audience) at the time of election (occasion). The civilians only vote if they are
influenced by the things the politician says in his speech so the content must be
very impressive to influence the mass and the speaker must design the message
very carefully.

The speech must be clear as well as the speaker must have a very good non-
verbal communication with the audience like eye contact. This example is a
classic case of Aristotle Model of Communication depicting all the elements in
the model.

Critical Elements of a Good Communicator

Aristotle has given 3 elements that must be present in a good communicator or

public speaker. These elements are related to each other and they reinforce the
other elements.

Ethos

Ethos is the characteristic which makes you credible in front of the audience. If
there is no credibility, the audience will not believe in you and will not be
persuaded by you. Expertise and positions also give credibility to a person.

For instance, the mass will not listen to the promises of a corrupt politician, but
if a politician is known for his good deeds, there’s a high change his speech will
be heard.
Pathos

If what you say matters to them and they can connect with it, then they will be
more interested and they will think you are more credible. Emotional bonds will
make the audience captivated and they feel the speaker is one of their own
people.

For instance, if people of a village needs water and the politician tells them that
he will help in building roads, the people will not get influenced but might be
more influenced if he says he’ll build a dam for drinking water and irrigation.

Logos

Logos is logic. People believe in you only if they understand what you are
trying to say. People find logic in everything. If there is no logic behind the
speaker’s work or time, they do not want to get involved. Everybody has a sense
of reason. You must present facts to the audience for them to believe in you.

For example, a presenter using factual data in an awareness program will attract
the audience’s attention and will make them believe in the need of awareness in
the particular matter.

Criticisms of Aristotle’s Model of Communication

There are few criticisms around this model. Some of them are

 There is no concept of feedback, it is one way from speaker to audience.

 There is no concept of communication failure like noise and barriers.
 This model can only be used in public speaking.
Shannon Weaver model Shannon Weaver model

 Shannon Weaver model

Shannon Weaver model of communication was created in 1948 when Claude

Elwood Shannon wrote an article “A Mathematical Theory of Communication”
in Bell System Technical Journal with Warren Weaver.
Shannon was an American mathematician whereas Weaver was a scientist. The
Mathematical theory later came to be known as Shannon Weaver model of
communication or “mother of all models.” This model is more technological
than other linear models.

Concepts in Shannon Weaver Model

Sender (Information source) – Sender is the person who makes the message,
chooses the channel and sends the message.
Encoder (Transmitter) –Encoder is the sender who uses machine, which
converts message into signals or binary data. It might also directly refer to the
machine.
Channel –Channel is the medium used to send message.
Decoder (Receiver) – Decoder is the machine used to convert signals or binary
data into message or the receiver who translates the message from signals.

Receiver (Destination) –Receiver is the person who gets the message or the
place where the message must reach. The receiver provides feedback according
to the message.
Noise –Noise is the physical disturbances like environment, people, etc. which
does not let the message get to the receiver as what is sent.

Explanation of Shannon Weaver Model

The sender encodes the message and sends it to the receiver through a
technological channel like telephone and telegraph. The sender converts the
message into codes understandable to the machine. The message is sent in codes
through a medium.
The receiver has to decode the message before understanding it and interpreting
it. The receptor machine can also act as a decoder in some cases. The channel
can have noise and the receiver might not have the capacity to decode which
might cause problems in communication process.

Here, for instance, brain might be the sender, mouth might be the encoder which
encodes to a particular language, air might be the channel, another person’s ear
might be the receptor and his brain might be the decoder and receiver.
Similarly, air is the channel here, the noise present in his environment that
disturbs them is the noise whereas his response is the feedback. There were only
5 components when the model was made. Noise was added later.
As Shannon was an engineer, this model was first made to improve technical
communication, mainly for telephonic communication. It was made to to
maximize telephone capacity with minimum noise.

Later, Weaver applied it for all kind of communications to develop effective

communication and the model became famous as Shannon Weaver model. In
engineering, Shannon’s model is also called information theory and is used
academically to calculate transmission through machines and also has a
formula.

Example of Shannon Weaver Model

A businessman sends a message via phone text to his worker about a meeting
happening about their brand promotion. The worker does not receive the full
message because of noise. It goes like this:
Businessman: We have a meeting at the office (“at 8 am” goes missing due to
phone network disruption or noise)

Worker (feedback) : At what time?

Here,

Sender: Businessman
Encoder: Telephone network company
Channel: Mobile network
Noise: Missing text due to disruption
Decoder: Mobile phone
Receiver: Worker
The transmission error is the noise in this case. The feedback lets the
businessman know that the message reached incomplete. The receiver gets the
chance to get the full message only after his feedback.

Levels of Communication Problems

There are three levels of problems of communication according to Shannon

Weaver. They are:

1. Technical problem –How a channel causes a problem

2. Semantic problem –Is the meaning of message sent and received very
different
3. Effectiveness problem –How effectively does the message cause reaction
Advantages of Shannon Weaver Model

 Concept of noise helps in making the communication effective by

removing the noise or problem causing noise.
 This model takes communication as a two way process. It makes the
model applicable in general communication.
 Communication is taken as quantifiable in Shannon Weaver model.

Criticisms of Shannon Weaver Model

 It can be applied more for interpersonal communication than group

communication and mass communication.
 Receiver plays the passive part in the communication process as sender
plays the primary role that sends messages.
 Feedback is taken as less important in comparison to the messages sent by
the sender.
 The model is taken by some critics as a “misleading misrepresentation of
the nature of human communication” as human communication is not
mathematical in nature.
Principles of Communication

Principles refer to the proven guidelines that are followed in performing jobs so
as to attain predetermined objectives. Success of organizations largely depends
on effective communication. For the purpose of effective communication, some
principles or guidelines should be followed. The followings are the guiding
principles in ensuring effective communication:

1. Clarity: Clarity of message is an important principle of communication. In

order to make the message clear to the receivers, the message should be
 organized by using simple language. The sender must convey the message
clearly and confidently so that the receiver can easily understand the
message clearly and confidently so that the receiver can easily understand
the meaning of the message.
2. Objective oriented: The language of communication should reflect the
intention of the sender. Integration between the sender’s intention and the
language used in communication certainly improves the quality of the
communication. Any controversy between them may distort the whole
communication process.
3. Brevity: The message should be as brief as possible. Here brevity means
compiling the message with limited words and sentences. If this principle
is followed, both sender and receiver can save time and cost.

4. Completeness: In presenting information, principle of completeness

should be followed. Communication becomes incomplete if partial
information is presented. Therefore, the sender should give sufficient
information so that the message is complete.
5. Consistency: Every communication must be purposeful and should be
related to a particular subject. Therefore, the message must be consistent
 and pertinent to the purpose of communication. Any message conflicting
to the purpose will affect negative the communication process.
6. Explanation of message: Necessary explanation of the message should be
given to make it clear and easy. It helps the readers to understand the inner
meaning of the message.
7. Cleanliness and correctness: In written communication, the message
should be written clearly and correctly. Clear handwriting, correct
grammar and punctuation are essential requirements of effective written
communication. In oral communication, message should also be delivered
clearly.
8. Use of simple language: Special attention should be given in using
language in communication. Good communication always uses simple,
direct and appropriate languages. So for better communication ambiguous
and complex words, misleading non-verbal cues, technical words and
jargon, poetic words should avoided.
9. Adequate preparation: Adequate preparation should be taken while
communicating through letter, report, memo and speech. Preparation will
enhance the quality of the message.
10.Attention: Another important principle of communication is to pay
attention to the message by both sender and receiver. This increases the
accuracy of delivery by the sender and reception by the receiver.
11.Use of informal channels: communication only through normal channels
may reduce its effectiveness. Hence, informal channels should be used
along with the formal ones.
12.Mutual feeling: The parties involved in communication must have felling
for each other. This enhances their interest and attention toward the
communication message.
 13.Self-confidence: The communicator should have self-confidence to the
communication message. Otherwise, he will not be successful in
communication.
14.Reason-ability: Communication should be based on logic and reason
rather than assumption and intuition.
15.Following feedback process: Communication should have the provision
of feedback. In the absence of feedback, communication will be one-way
and might be incomplete.

7 C’s of Effective Communication

We communicate all day long; at home, at work, with our next-door neighbour
and at the sports club. We communicate verbally, non-verbally and in writing.
Unfortunately, the message does not always come across as intended. NOISE!
This can lead to miscommunication and (small) misunderstanding or the wrong
impression.

The 7 C’s of effective communication, also known as the seven principles of

communication are a useful way to ensure good and business communication.
The 7 C’s of Effective Communication provide a useful check list as a result of
which both written and verbal communication pass off in a clear, plain, target
group-oriented and well-structured manner.
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Completeness

The message must be complete and geared to the receiver’s perception of the
world. The message must be based on facts and a complex message needs
additional information and/ or explanation. A good subdivision of subjects will
clarify the message as a result of which there will be a complete overview of
what is said.

Concreteness

Concrete business communication is also about a clear message. This is often

supported by factual material such as research data and figures. The words used
as well as the sentence structure can be interpreted uni-vocally. Nothing is left
to the imagination.

Courtesy

In addition to considering the feelings and points of view of the target group, it
is also important to approach the audience in a friendly and courteous manner.
Use of terms that show respect for the receiver contribute towards effective
communication. The same goes for the manner in which you address someone.
Not everyone will be charmed if you use a familiar form of address and use of a
formal address could come across as too distant. By using the word ‘they’ a
larger audience is immediately addressed.

Correctness

A correct use of language has the preference. In written business

communication, grammatical errors must be avoided and stylistic lapses or a
wrong use of verbs are not sufficient either in verbal communication. A correct
use of language increases trustworthiness and the receiver will feel that they are
taken seriously.

Clarity
Clear or plain language is characterized by explicitness, short sentences and
concrete words. Fuzzy language is absolutely forbidden, as are formal language
and cliché expressions. By avoiding parentheses and keeping to the point, the
receiver will get a clear picture of the content of the message. Briefly-worded
information emphasizes the essence of the message.

Consideration

Communicating with the target group (Consideration). In order to communicate

well, it is important to relate to the target group and be involved. By taking the
audience into account, the message can be geared towards them. Factors that
play a role in this are for example: professional knowledge, level of education,
age and interests.

Conciseness

A message is clear when the storyline is consistent and when this does not
contain any inconsistencies. When facts are mentioned, it is important that there
is consistent, supporting information. Systematically implementing a certain
statement or notation also contributes to clear business communication. When
statements are varied, they will confuse the receiver.

The 7 C’s of Effective Communication have two more variations that are often
overlooked, namely Creativity and Credibility.

Creativity

A text will only be lively when the words and sentence structures are used
creatively and when short sentences are alternated with longer sentences.
Creativity is especially important in texts in which search words are used, it is
essential that the search words are constantly used in a different setting.
Credibility

By creating an atmosphere of trust in a conversation or text, you add credibility

to the message. This can be achieved by a clear and striking ‘tone’, which
indicates that the information you are discussing contains the right information.

MODULE 2

TYPES OF COMMUNICATION

Formal Communication

Definition: The Formal Communication is the exchange of official

information that flows along the different levels of the organizational hierarchy
and conforms to the prescribed professional rules, policy, standards, processes
and regulations of the organization.

The formal communication follows a proper predefined channel of

communication and is deliberately controlled. It is governed by the chain of
command and complies with all the organizational conventional rules. In the
organizational set up the formal communication can observe any of the
following forms:
1. Downward Communication: The downward communication is when the
information passes from the management level to the subordinate level. This is
the most common form of formal communication wherein communication
flows downwards, i.e. from the people occupying top positions in the
organization to the people at lower levels.

It mainly includes orders and instructions and can either be written or oral
depending on the importance of the message and also the status of individuals
involved in the communication process. Reports, emails, letters, manuals, etc.
are the commonly used communication tools.

2. Upward Communication: The upward communication is when the message

passes from the subordinate level to the management level. Here, the
communication flows upwards i.e. from the subordinates to the managers in the
form of request, reports, suggestions, complaints, and instructions.
3. Horizontal or Lateral Communication: Horizontal communication means
when the Co-workers with different areas of responsibilities, but at the same
level in the organization communicate with each other. The communication
between the managers of a different department, such as marketing, finance,
production, HR, is the best example of horizontal communication.
4. Diagonal or Crosswise Communication: When the employees of different
departments at different levels communicate with each other irrespective of the
chain of command, then the communication is said to be a diagonal or a cross-
wise communication. The communication between the floor manager and the
sales team is the example of diagonal communication.

The way in which the formal communication can be facilitated is called as the
formal communication network. There are several forms of Formal
Communication Network that individuals use to get their message transmitted
to others.

INFORMAL COMMUNICATION

Informal Communication

Definition: The Informal Communication is the casual and unofficial form of

communication wherein the information is exchanged spontaneously between
two or more persons without conforming the prescribed official rules, processes,
system, formalities and chain of command.

The informal communications are based on the personal or informal relations

such as friends, peers, family, club members, etc. and thus is free from the
organizational conventional rules and other formalities. In the business context,
the informal communication is called as a “grapevine” as it is difficult to
define the beginning and end of the communication.

The informal communication is characterized by an indefinite channel of

communication, which means there is no definite chain of command through
which the information flows. Hence, the information can flow from anywhere.
Often such communication arises out of the social relations that an individual
creates with other persons on the basis of common interest, likings or dislikings.

There are four types of Informal Communication (Grapevine) network that

show how the communication is facilitated. These are:
1. Single Strand Chain
2. Gossip Chain
3. Probability Chain
4. Cluster Chain

Examples of Informal or Grapevine Communication:

1. The manager calls an employee to his chamber and talks with him for
sometimes relating to official work. Rumor is spread that the employee will be
promoted to higher position ignoring the promotion of other employees.

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2. The employees of a company have come to know the profit figure for the
year from the accounts department. Somebody among the employees within the
company puts some imagination to it and tells others that the company is going
to offer bonus to the employees on the basis of profit earned.

3. Due to delay in supply and shortage of raw materials the work in a factory
has been stopped for a few days. The workers made it a rumor that the
management authority is going to retrench a large number of employees soon.

The informal communication is a part and parcel of the organisational process.

Proper analysis and suitable clarification of informal communication will be
helpful in making its use towards organisational efficiency.

Purpose of Informal or Grapevine Communication:

The purpose of informal communication includes sharing of information,
establishing personal contacts, making friendship, influencing and motivating
others, resolving conflicts, supplementing official channels, getting relaxation,
searching escape from monotony of work, etc.
Channels Used in Informal or Grapevine Communication:
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Informal Communication is conveyed through verbal and gestural means

in all directions with the help of the following media:
i. Personal conversation and gossip;

ii. Unofficial discussion;

iii. Spontaneous advice and suggestion;

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iv. Facial expression;

v. Body movement;

vi. Silence, etc.

Types of Grapevine Communication:

Since grapevine works through informal channels, it does not follow any
scheduled path or operate by specific rules. Like a grapevine it spreads fast in
any direction.

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Specialists in the field have classified grapevine communication into four

types:
1. Single Strand Chain.

2. Gossip Chain,

3. Probability Chain,
4. Cluster Chain.

1. Single Strand Chain:

In this type of grapevine communication the information passes through a
number of persons like a chain. A tells something to B, who tells it to C, who
tells it to D and so on.

It is generally a long chain. The longer the chain the greater is the possibility of
distortion of the information.

2. Gossip Chain:
In Gossip Chain one person actively conveys information to other persons
around him. A circle or wheel-like figure is formed in this communication.

Here, in this picture. A is at the centre and transmits messages to ‘B’, ‘C\ ‘D\
‘E\ ‘F, ‘G’, and ‘H’ around him/her.

Gossip Chain is generally used when information to be communicated is non-

job oriented in nature.

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3. Probability Chain:
It is a random process in which information may move from one person to any
other person or persons according to law of probability. Naturally, in this type
of communication, some people of the organisation will be informed and some
others will remain outside the arena of the communication.

Here, in the illustration, E, F, G and K are outside the communication chain.

This chain is used when information is interesting but less important.

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4. Cluster Chain:
Cluster chain is mostly used and the dominant pattern of grapevine
communication. In this type one person tells something to some selected trust
worthy persons. Some of these persons may inform a few selected other
individuals. Here in the picture, A tells some selected and trustworthy persons,
B, C and D. C again relays it to his selected persons, G, H and I. D tells J, a
person of his choice. E and F remain outside The cluster.
Importance of Informal or Grapevine Communication:
Informal or Grapevine communication is an indispensable part of entire
communication system. Formal communication is compared to arteries of a
living being, whereas, grapevine or informal communication are like veins. The
later is a supplement to the former. Where formal communication fails to
operate, grapevine or informal communication is used.

Sometimes, grapevine communication is more effective than the formal

communication. In fact, it carries more information than formal communication.
Not only is a large volume of information, important and vital information also
conveyed through it.

In an organisation small groups of people work together. It is quite natural that

they will become interested about each other and want to know various
information regarding each other’s service condition, salary, facilities available,
appointment, retirement, transfer, punishment, etc.

They will also be interested to know any private, secret and confidential
information which includes any romantic affair, family disputes, marriage, birth
of a child, examination results of their children, special treatment or favour by
boss to any member and so on.
The employees generally exchange their views with their peers openly during
lunch break or at an interval and get emotional relief from monotony and stress.
Thus, the informal or grapevine communication promotes social relationship
among the participants. It helps to build up unity, integrity and solidarity among
them and boosts up their morale.

Grapevine or informal communication is faster than the formal communication.

Being oral in nature, it has little or no cost and can reach maximum number of
people irrespective of their positions within a very short time.

Since there is no official procedure and formalities it is not binding and

compelling, rather it is flexible and spontaneous. The managers can get
feedback from their subordinates quickly on the plan and policies through
grapevine. New ideas, suggestions, opinions may come out as people can
express their feelings without fear.

Characteristics of Informal Communication:

The informal communication has the following characteristics:
i. It is based on informal relationship;

ii. It grows spontaneously;

iii. It takes the form of gossip;

iv. It is conveyed through conversation, facial expression, body movement,

silence, etc.;

v. It does not follow any structured route or channel;

vi. Small groups are formed with like-minded people in such communication:

vii. It is direct and fast;

viii. It is flexible and dynamic in nature.

Advantages of Informal or Grapevine Communication

The advantages of informal communication are pointed out below:
i. Informal communication, being unofficial and personal, promotes a social
relationship among the participants;

ii. Flow of information is fast and is suitable for emergencies;

iii. New ideas, suggestions, opinions may come out through such
communication as people can express their feelings without fear;

iv. It can create an atmosphere congenial for work as the relationship between
the managers and the employees improves;

v. The managers can collect information regarding reaction of the workers,

attitude of the employees of other departments, intention of peer officers
through such communication. It is not possible in the case of formal
communication. Thus, informal communication supplements the formal
communication to fulfill the objective of the organisation;

vi. Sharing of information in a free atmosphere makes the picture clear, bringing
out the hidden dimension of the management, if any. It puts an end to
misunderstanding and suspicion;

vii. It is an outlet of expression of complaints, dis-likings, grievances, etc.

Disadvantages/Limitations of Informal or Grapevine Communication:

Informal Communication has the following disadvantages or limitations:
i. Inaccurate, incomplete and half true information’s are spread through
informal communication as everybody interprets it in his/her own way;
ii. In most cases it is emotional and full of sentiments which can change its
meaning;

iii. No one can be held responsible as it is not possible to find out the supplier of
wrong information in the case on an enquiry;

iv. It is not reliable. The managers cannot depend upon such information as it
does not follow any norm and is too loose a system. No decision can be taken
depending upon such communication;

v. It spreads rumors and endangers consolidation and unity of the organisation;

vi. It creates conflicts between groups by spreading rumors against them and
reducing their mental strength.

Effective Use of Informal or Grapevine Communication:

Since grapevine communication is an integral part of communication system it
works side by side with the formal communication. The nature of grapevine
communication can be guessed from its name. Like a grapevine plant it grows
fast, spreads to any direction and goes a long way in creating informal
relationship.

Here, information spreads very quickly in geometric progression from one to a

few and from a few to many persons irrespective of their formal positions.
Spread of half true information or rumor is not congenial to the organisational
health.

It breeds conflict, weakens consolidation and unity, diminishes morale of the

workers and creates a chaotic situation within the organisation. It becomes more
harmful for an organisation when the managers take decisions depending upon
such unreliable, inaccurate and incomplete information.
BARRIER OF COMMUNICATION

Barriers of Communication: This far we have seen what we mean by the process
of communication. But, at times even after taking care of every other detail some
misunderstandings arise. So, to eliminate these misunderstandings, we have to
understand the most common barriers to effective communication.

Barriers To Effective Communication

The process of communication has multiple barriers. The intended communique

will often be disturbed and distorted leading to a condition of misunderstanding
and failure of communication. The Barriers to effective communication could be
of many types like linguistic, psychological, emotional, physical, and cultural etc.
We will see all of these types in detail below.

Linguistic Barriers

The language barrier is one of the main barriers that limit effective
communication. Language is the most commonly employed tool of
communication. The fact that each major region has its own language is one of
the Barriers to effective communication. Sometimes even a thick dialect may
render the communication ineffective.

As per some estimates, the dialects of every two regions changes within a few
kilometers. Even in the same workplace, different employees will have different
linguistic skills. As a result, the communication channels that span across
the organization would be affected by this.

Thus keeping this barrier in mind, different considerations have to be made for
different employees. Some of them are very proficient in a certain language and
others will be ok with these languages.
Learn more about the Characteristics of Effective Communication here in detail.

Psychological Barriers

There are various mental and psychological issues that may be barriers to effective
communication. Some people have stage fear, speech disorders, phobia,
depression etc. All of these conditions are very difficult to manage sometimes and
will most certainly limit the ease of communication.

Emotional Barriers

The emotional IQ of a person determines the ease and comfort with which they
can communicate. A person who is emotionally mature will be able to
communicate effectively. On the other hand, people who let their emotions take
over will face certain difficulties.

A perfect mixture of emotions and facts is necessary for effective communication.

Emotions like anger, frustration, humour, can blur the decision-making capacities
of a person and thus limit the effectiveness of their communication.

Physical Barriers to Communication

They are the most obvious barriers to effective communication. These barriers are
mostly easily removable in principle at least. They include barriers like noise,
closed doors, faulty equipment used for communication, closed cabins, etc.
Sometimes, in a large office, the physical separation between various employees
combined with faulty equipment may result in severe barriers to effective
communication.

Learn more about Interpersonal Skills and Emotional Intelligence here in detail.

Cultural Barriers of Communication

As the world is getting more and more globalized, any large office may have
people from several parts of the world. Different cultures have a different meaning
for several basic values of society. Dressing, Religions or lack of them, food,
drinks, pets, and the general behaviour will change drastically from one culture to
another.

Hence it is a must that we must take these different cultures into account while
communication. This is what we call being culturally appropriate. In many
multinational companies, special courses are offered at the orientation stages that
let people know about other cultures and how to be courteous and tolerant of
others.

Organisational Structure Barriers

As we saw there are many methods of communication at an organizational level.

Each of these methods has its own problems and constraints that may become
barriers to effective communication. Most of these barriers arise because of
misinformation or lack of appropriate transparency available to the employees.
Attitude Barriers

Certain people like to be left alone. They are the introverts or just people who are
not very social. Others like to be social or sometimes extra clingy! Both these
cases could become a barrier to communication. Some people have attitude issues,
like huge ego and inconsiderate behaviours.

These employees can cause severe strains in the communication channels that
they are present in. Certain personality traits like shyness, anger, social anxiety
may be removable through courses and proper training. However, problems like
egocentric behaviour and selfishness may not be correctable.

Perception Barriers

Different people perceive the same things differently. This is a fact which we must
consider during the communication process. Knowledge of the perception levels
of the audience is crucial to effective communication. All the messages or
communique must be easy and clear. There shouldn’t be any room for a
diversified interpretational set.

Physiological Barriers

Certain disorders or diseases or other limitations could also prevent effective

communication between the various channels of an organization. The shrillness of
voice, dyslexia, etc are some examples of physiological barriers to effective
communication. However, these are not crucial because they can easily be
compensated and removed.

Technological Barriers & Socio-religious Barriers

Other barriers include the technological barriers. The technology is developing
fast and as a result, it becomes difficult to keep up with the newest developments.
Hence sometimes the technological advance may become a barrier. In addition to
this, the cost of technology is sometimes very high.

Most of the organizations will not be able to afford a decent tech for the purpose
of communication. Hence, this becomes a very crucial barrier. Other barriers are
socio-religious barriers. In a patriarchal society, a woman or a transgender may
face many difficulties and barriers while communicating.

MODULE 3

The importance of communication in management

Effective Communication is significant for managers in the organizations so as

to perform the basic functions of management, i.e., Planning, Organizing,
Leading and Controlling.

Communication helps managers to perform their jobs and responsibilities.

Communication serves as a foundation for planning. All the essential
information must be communicated to the managers who in-turn must
communicate the plans so as to implement them. Organizing also requires
effective communication with others about their job task. Similarly leaders as
managers must communicate effectively with their subordinates so as to achieve
the team goals. Controlling is not possible without written and oral
communication.

Managers devote a great part of their time in communication. They generally

devote approximately 6 hours per day in communicating. They spend great time
on face to face or telephonic communication with their superiors, subordinates,
colleagues, customers or suppliers. Managers also use Written Communication
in form of letters, reports or memos wherever oral communication is not
feasible.

Thus, we can say that “effective communication is a building block of

successful organizations”. In other words, communication acts as
organizational blood.

the thirteen major importance’s of communication in management, i.e, (1)

Basis of Decision-Making and Planning, (2) Smooth and Efficient Working
of an Organisation, (3) Facilitates Co-Ordination, (4) Increases Managerial
Efficiency, (5) Promotes Co-operation and Industrial Peace, (6) Helps in
Establishing Effective Leadership, and Others.
1. Basis of Decision-Making and Planning:
Communication is essential for decision-making and planning. It enables the
management to secure information without which it may not be possible to take
any decision. The quality of managerial decisions depends upon the quality of
communication. Further, the decisions and plans of the management need to be
communicated to the subordinates. Without effective communication, it may
not be possible to issue instructions to others. Effective communication helps in
proper implementation of plans and policies of the management.

2. Smooth and Efficient Working of an Organisation:

In the words of George R. Terry, “It serves as the lubricant, fostering for the
smooth operations of management process.” Communication makes possible
the smooth and efficient working of an enterprise. It is only through
communication that the management changes and regulates the actions of the
subordinates in the desired direction.
3. Facilitates Co-Ordination:
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Management is the art of getting things done through others and this objective
of management cannot be achieved unless there is unity of purpose and
harmony of effort. Communication through exchange of ideas and information
helps to bring about unity of action in the pursuit of common purpose. It binds
the people together and facilitates co-ordination.

4. Increases Managerial Efficiency:

Effective communication increases managerial efficiency. It is rightly said that
nothing happens in management until communication takes place. The
efficiency of manager depends upon his ability to communicate effectively with
the members of his organisation. It is only through communication that
management conveys its goals and desires, issues instructions and orders,
allocates jobs and responsibility and evaluates performance of subordinates.

5. Promotes Co-operation and Industrial Peace:

Effective communication creates mutual understanding and trust among the
members of the organisation. It promotes co-operation between the employer
and the employees. Without communication, there cannot be sound industrial
relations and industrial peace. It is only through communication that workers
can put in their grievances, problems and suggestions to the management.

6. Helps in Establishing Effective Leadership:

Communication is the basis of effective leadership. There cannot be any
leadership action without the effective communication between the leader and
the led. Communication is absolutely necessary for maintaining man to man
relationship in leadership. It brings the manager (leader) and the subordinates
(led) in close contact with each other and helps in establishing effective
leadership.

7. Motivation and Morale:

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Communication is the means by which the behaviour of the subordinates is

modified and change is effected in their actions. Through communication
workers are motivated to achieve the goals of the enterprise and their morale is
boosted. Although motivation comes from within yet the manager can also
motivate people by effective communication, e.g., proper drafting of message,
proper timing of communication and the way of communication, etc.

8. Increases Managerial Capacity:

Effective communication increases managerial capacity too. A manager is a
human being and has limitations as to time and energy that he can devote to his
activities. He has to assign duties and responsibilities to his subordinates.
Through communication, a manager can effectively delegate his authority and
responsibility to others and thus, increases his managerial capacity.

9. Effective Control:
Managerial function of control implies the measurement of actual performance,
comparing it with standards set by plans and taking corrective actions of
deviations, if any, to ensure attainment of enterprise objectives according to
preconceived and planned acts. Communication acts as a tool of effective
control. The plans have to be communicated to the subordinates, the actual
performance has to be measured and communicated to the top management and
a corrective action has to be taken or communicated so as to achieve the desired
goals. All this may not be possible without an efficient system of
communication.
10. Job Satisfaction:
Effective communication creates job satisfaction among employees as it
increases mutual trust and confidence between management and the employees.
The gap between management and the employees is reduced through the
efficient means of communication and a sense of belongingness is created
among employees. They work with zeal and enthusiasm.

11. Democratic Management:

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Communication is also essential for democratic management. It helps to achieve

workers participation in management by involving workers in the process of
decision-making. In the absence of an efficient system of communication, there
cannot be any delegation and decentralization of authority.

12. Increases Productivity and Reduces Cost:

Effective communication saves time and effort. It increases productivity and
reduces cost. Large- scale production involves a large number of people in the
organisation. Without communication, it may not be possible to work together
in a group and achieve the benefits of large-scale production.

13. Public Relations:

In the present business world, every business enterprise has to create and
maintain a good corporate image in the society. It is only through
communication that management can present a good corporate image to the
outside world. Effective communication helps management in maintaining good
relations with workers, customers, suppliers, shareholders, government and
community at large.