UNIT EIGHT: PROJECT TEAM COMMUNICATIONS

Introduction: Communication in Project Management

The importance of communication in the success of a project is immense. Careful

communication planning and setting the right expectations with all the project stakeholders is
extremely important. Face to face initial communication within the project team to establish the
team dynamics and learning the customer’s expectations are the keys to success when starting a
project. as a project manager, the success of a project is a matter of effective communication has
been continuously reinforced.

As listed by Kerzner: Typical literary definitions of effective communications include:

 An exchange of information.
 An act or instance of transmitting information.
 A verbal or written message.
 A technique for expressing ideas effectively.
 A process by which meanings are exchanged between individuals through a common
system of symbols.

Effective communication involves both sending and receiving the message. With this in mind, a
good definition of project communication management can be “Project Communications
Management includes the process required to ensure timely and appropriate generation,
collection, dissemination, storage, and ultimate disposition of project information” (Project
management institute standards committee, 1996, p103).

Basically, communication is the way information is exchanged between entities. There are
various components of the communication process. They include the message, source, encoding,
channel, decoding, receiver, feedback, noise, context and shared meaning. One of the primary
points of effective communication is that it is interactive.

Communication during projects can be of many different types such as oral, written and non-
verbal.
 Oral communication is mainly utilized in face-to-face meetings or over the telephone as well
as in group meetings and affords a lot more flexibility to the speaker, such as the ability to
communicate not only with voice but body language, attitude and nuance. The subtle nuances
that can be communicated during verbal communication are not present during written
communication.
 Written communication, on the other hand, is usually more precise. It can be sent through
correspondence such as memos, letters or notices. It can also be sent via Email or the project
management information system. The key to making written communication more effective
is to first grab people’s attention, then give them a reason to want to read the rest of the
communication.
 Another type of communication that plays a big role during projects is the non-verbal kind.
The way people dress, the tone of their voice, their stance while talking all convey something
significant. Being aware of a person’s body language can greatly enhance your own level of
understanding. A sudden intake of breath may indicate that a person wants to speak, or a
furrowed brow could be an indicator that either the other person does not understand you or
does not agree with your point.

During a project, communication can occur in various directions depending on who is

communicating. There is upward communication to management from your own organization
and the customer’s organization. Lateral communication takes place with customers and within
project teams.

Keeping in mind the complexity of communication itis easy to understand how difficulties in
communication may arise. As noted above, effective communication is extremely critical to the
success of the project. Many factors can cause barriers to effective communication. A main
reason for communication gaps is simply that people have different preferences for effective
communication. Some people are oriented toward details, while others want only the big picture.
It’s easy to overburden a manager with the detailed reasons for decisions you’ve made, when all
they may really care about at the moment is the overall status of the project. This type of
miscommunication is very likely to happen when two people with different communication
styles work together on a project. Some other common reasons for communication problems
during projects can be information overload, hidden agendas, power games, bias towards certain
people, etc.

A project manager should exercise overall teambuilding for the project team members and other
stakeholders, in order to facilitate better communication. A project manager can provide
communication skills training to the team members, as well as set some important ground rules
during the initiation phase of the project and at significant times such as the start of a meeting.
When attempting to form a new cohesive team with a group of individuals, some kind of “ice-
breaking” activity can be helpful. Ongoing successful communication requires some basic rules
that all team members can keep in mind such as not jumping to conclusions, resisting the urge to
interrupt and listening to others. Other important factors that can be commonly practiced for
successful communication are to seek to know more and to make listening a conscious activity.
Different types of communication are appropriate to meet the different communication needs that
arise during a project.

The cultural considerations in project communications are becoming increasingly important due
to the globalization of the work environment. There are some points to keep in mind in order to
facilitate better cross-cultural communication, first, be careful of your usage of certain terms and
phrases. What may be common terms to the American culture may not be as easily understood
by other cultures. Such as using the term “over the top” may not convey the intended meaning
to someone not from America. Secondly, consider cultural nuances. In some cultures when a
person is nodding their head while you are giving instructions, it might simply be because in that
culture it is considered rude to interrupt, whereas in other cultures it might signify complete
understanding. Thirdly, it’s very important to have personal face-to-face interaction. Another
important point is to be aware of the holidays etc. so that you can appropriately structure your
project schedule.
8.1 Internal and External Communications

Communication, being an integral part of every business organization, enables the exchange of
information between two or more individuals, departments and organizations. Internal
communication refers to the communication that occurs between members or departments within
the same organization. On the other hand, external communication takes place when members or
departments of an organization communicate with an outside party. Successful organizations
concentrate on the effectiveness of both internal and external communication in order to
maintain healthy relations with various internal and external stakeholders.

Internal communication

In internal communication, information, messages and facts related to the business are
exchanged between those who are part of the organization or between the different
organizational units.

It is important to plan internal communications as it has an impact on the knowledge, behavior

and attitudes of the members of the organization. Internal communication helps in establishing a
relationship between the project company and its employees at different levels. It
encourages efficiency, innovation, dedication and faith in the company and makes employees
understand the part they play in the success of the project organization. This ensures that
employees accomplish their jobs in the most efficient manner.

Internal communication usually takes place through different media, for example emails,
memorandums, letters, video conferencing, internal web portals, circulars and conference calls.
The main objective of internal communication is to ensure the normal operations of an
organization, including its day-to-day operations as well as its long-term functions.

Internal communication mainly involves information that is transferred between managers and

employees. It is usually carried out to inform employees about the organizational objectives,
formulate plans to achieve these objectives and organize resources in the most optimal manner. It
plays a part in the training, selection and appraisal of employees.
Internal communication can be formal or informal in nature. Formal communication refers to the
communication that occurs through the official channels within the organization. On the other
hand, informal communication does not pass through the specific organizational channels.
Rather, it takes place through unofficial channels and is more personal in nature.

External communication

External communication refers to exchange of information between the organization and an

entity or individual from outside the organization, for example the customers, clients, investors,
suppliers, government bodies, society, and the general public. External communication is mostly
formal and documented. In addition, it determines the way organizations relate to or disseminate
information among the parties that are external to the organization.

External communication may consist of information regarding new products or initiatives

undertaken by the company. External messages are normally circulated to acquire customers,
establish the brand or have an impact on the way the public perceives the company. The aim of
external communication is to establish a relationship with external parties so as to create a
favorable reputation and public image. It is also used to establish a connection with the suppliers,
vendors, investors and other parties to whom the products/services may be offered. External
communication with stakeholders is also very important because their perspective about the
company is mainly determined by it.

Different mediums are used by organizations for external communication, based on the type of
information and its objective. They may use emails, print media, and television and radio
advertisements to make the public aware of a new product or service and press releases to
announce changes in management or other professional events.  Companies also provide
information to the external public through their websites and social media handling.
Internal Communication Vs External Communication – Tabular Comparison

Internal Communication Vs External Communication

Meaning

Communication between the members of the Communication between organizational

organization members and external parties
Nature
Formal or informal Mostly formal
Objective
Transfer of information between Providing information to external parties to
organizational members to ensure smooth develop relationships and establish good
functioning reputation
Medium used
Emails, internal website, video conferencing, Advertisements, social media posts, company
circulars, etc. website, etc.
Flow of information
Within the organization In the external business environment

Internal and external communications are both very important for organizations to ensure their
effective and smooth operations. Internal communication is used to inform, direct and motivate
employees in an organization to exhibit good performance. When employees are unaware of
organizational objectives and aims, they will not be able to work effectively.

External communication is important for developing a favorable image of the company in

the market. In addition, customers are informed about a new product launch through external
communication. If organizations do not communicate externally in an effective way, people will
remain unaware of its products and services.

Hence, organizations should adopt the correct communication tools to make sure that there
continues to be a flow of information internally as well as externally.
8.2 Formal and Informal Communication

Irrespective of the field or type of business, communication plays a pivotal part in the successful
functioning of every project organization. The way in which ideas and information are
disseminated within project organization determines the kind of specific communication patterns
being used in that organization. Although information and data can be communicated either
verbally or in writing, but based on its type, every organization has two segregated
communication channels – formal and informal. Herein below we will try to look into the
meanings of formal and informal communication and explains how the two communication
channels differ from each other.

Formal communication:

Formal communication refers to the flow of official information through proper, predefined
channels and routes. The flow of information is controlled and needs deliberate effort to be
properly communicated. Formal communication follows a hierarchical structure and chain of
command. The structure is typically top down, from leaders in various departments and senior
staff in the project organization, which funnel down to lower-level employees. Employees are
bound to follow formal communication channels while performing their duties.

Formal communication is considered effective as it is a timely and systematic flow of

communication.

Types of formal communication

Below we provide a comprehensive list pertaining to the types of formal communication:

 Memos
 Intranet
 Meetings
 Conferences
 Formal One-on-Ones
 Bulletin Boards
 Handouts
  Letters
 Presentations
 Speeches
 Notice Boards
 Organizational blogs
 Emails from managers and leaders

Informal communication:

In comparison, informal communication refers to communication which is multi-dimensional.

Informal communication moves freely within the organization and is not bound by pre-defined
channels and communication routes. Informal communication is particularly quick. Informal
communication is far more relational than formal communication and is by nature, a very natural
form of communication as people interact with each other freely and can talk about a diverse
range of topics, often extending outside of their work duties. Due to the inherent nature of
informal communication, it moves a lot faster and does not have a paper trail.

Informal communication in the workplace is often called the ‘grapevine’ and generally begins
with employees through social relations. In many cases informal communications can turn to
formal communication if they are added in to the formal communication information flow of a
company.

Informal communication is considered effective as employees can discuss work-related issues

which saves the organization time and money. It also helps to build more productive and healthy
relationships in the workforce.

Types of informal communication

Below we provide a comprehensive list pertaining to the types of informal communication:

 Gossip
 Single Strand – a form of informal communication wherein each person communicates
with the next in a single sequence.
 Cluster - a very common form of informal communication, in cluster networks a person
will receive information and choose to pass it on to their cluster network or keep the
information to themselves. Each individual will pass on the information to the next
cluster network
  Probability Chain – each individual randomly tells another individual the same piece of
information.

Formal Vs Informal Communication – Tabular Comparison

FORMAL COMMUNICATION VS INFORMAL COMMUNICATION

Basic Idea

Formal communication channels are orderly Informal communication channels are

and well-structured. disorderly and may flow in any direction.

Operational Activities

These are directly related to the operational These are not directly related to operational
activities of a business. activities of a business however employees
may use it to perform their day-to-day duties.

Decision Making

Formal communication channels directly The management do not make use of informal
impact the decision-making process of a communication channels while making
company’s management. strategic business decisions.

Reliability

Formal communication is more reliable than Informal communication is not reliable and
informal communication. may consist of rumors and workplace gossip.

Time Consuming

It is time-consuming and regular in nature. It spreads fast and is irregular in nature.

8.3 Project Communication Effectiveness

Effective communication involves minimizing misunderstandings. To be effective in

communicating with people, everyone must be mindful. Communicating effectively and
appropriately are important aspects of being perceived as a skilled communicator (Gudykunst
and Kim, 1992). Communication is only effective if the following two conditions are met
(Rogers, 1976 cited in JPIM, p. 364). Firstly, the source must be willing to share the information.
However, such willingness may be absent at times because the source may not be able to
transmit the information, is reluctant to transmit the information or thinks that the information is
irrelevant. Secondly, the information transmitted is only effective if it has an effect on the
receiver. The effect maybe either change in knowledge, change in attitude or a change in
behavior.

Ineffective communication can occur for a variety of reasons when individuals communicate.
They may not encode the message in a way that it can be understood by others, people may
misinterpret what they say or both can occur simultaneously. Effective communicators are those
who are motivated; knowledgeable and possess certain communication skills (Samovar and
Porter, 2004, pg. 303). Project managers should be motivated; should have a positive attitude
towards communication event and they should put every effort to bring about constructive
results. They should have the knowledge of what topics, words or meanings are required in a
situation. They should know how to assemble, plan and perform content knowledge in a
particular situation. Their communication skills should be high enough to accomplish their goals
(Samovar and Porter, 2004, pg. 303).

For effective communication in project management, it is essential that communication should

be focused. If used effectively, can reduce non-productive effort, avoid duplication and help
eliminate mistakes (Clarke, 1998). Communicating effectively helps in identification of
problems, helps in generating ideas leading to better solutions and helps in dealing with
uncertainty. Moreover, it encourages team-work, motivates the team and ensures that every
member of the team is involved (Gannon, 1994). Not only effective communication is essential
for project implementation and control, it is a powerful weapon against stakeholder’s conflict.
Communication usually fails for the following reasons; not having a clear goal in mind; not
establishing relationship; being impatient; not hearing what others have to say; overabundance of
ego; assuming that others have the same information on the subject that you have; mistaking
interpretations for facts; failure to analyze and handle resistance (Ritz, 1990).

Effective communication is important during various phases of the project life cycle. During the
initiation/planning phase, communication planning involves determining the information and
communication needs of the stakeholders: who wants what information, when will they need it,
and how will it be given to them (PMI, 2008). Some other things to be given consideration are
the methods of communication to be utilized during the project. These are the technologies or
methods used to transfer information back and forth among project entities. Different forms of
communication will need to be utilized for communicating with different types of stakeholders
and different occasions. Different assumptions and constraints that will affect the project also
need to be carefully thought out. Once these factors are kept in mind, develop and document a
communication plan that can be shared with the entire set of stakeholders, including team
members, management customers and vendors. This type of methodical planning can lead to a
carefully constructed project communication plan (Mehta, 2008). The plan should detail out what
type of communication will take place during the project, who will receive what type of
information, where the information will be stored, the schedule of communication such as status
reports and project team meetings. Communication with stakeholders from start to the finish of a
project is essential to all project management (Verma, 1996).

Once the initial communication guidelines and expectations of the project have been established,
the communication plan can be executed. During the execution phase of the project, the three
main communication functions are information distribution, performance reporting and project
control. “Information distribution involves making needed information available to project
stakeholders in a timely manner. It includes implementing communication management plan and
responding to unexpected requests for information” (PMI, 1998, p. 106). Some of the essential
tools and technologies for information distribution are communication skills and information
distribution system. Many of the project deliverables and records result from this function such
as meeting minutes and decision documents.

Various tools and techniques can be used for performance reporting such as performance
reviews, variance analysis, traffic light reports, earned value analysis and trend analysis (Scott
and billing, 1998). The output that results from performance reporting are performance reports
and project change requests that is generated due to corrective action that needs to be taken to
address a variance from the original plans or additional customer needs. All of these functions
are useful for project control. Keeping the project on track according to the project plan, budget
and estimates that have been laid out is of prime importance. If the project needs to vary from
any of these established plans, the project information distribution system should be utilized. The
project stakeholders need to be informed and new expectations need to be set. Following a set of
established project management processes can be helpful in identifying events that are not
planned for. When unexpected events occur, assessing the impact and quickly communicating
them to the affected people according to your established communication plan can be efficiently
addressed them. Some simple things that a project manager needs to keep in mind regarding how
to communicate, are thinking about what is to be accomplished via the communication,
determining how to communicate, appealing to those being affected and giving and getting
feedback.

During the completion and closeout phase of the project there are various communication
functions. First administrative closeout needs to be done. Different companies may have
different set of expectations of this. It may involve financial and contractual closeout. The
project success should be documented and communicated. For longer projects, administrative
closure may be done after every major phase. To be properly closed out the project deliverables
need to be accepted and signed off by the customers according to pre-established criteria.
“Lessons Learned” sessions should be scheduled to obtain feedback regarding the project from
both customers and the project team. A third impartial group such as the quality assurance group
or the PMO may facilitate a typical Lessons Learned session. The points captured from a
Lessons Learned session can be used to improve future projects and avoid the same pitfalls in the
future. Another important task during closeout phase is customer satisfaction surveys. Positive
feedback from these can be used as a marketing tool. Any negative feedback can be used to make
improvements. This also gives a voice to the customer.

It is clear that project success depends greatly on effective project communication. I have
personally found that 90% of my project management time is spent in some form of
communication. It may be within the project team or with the customers. Effective
communication is the project manager’s sword as he or she guides the project team through the
jungle overcoming the various issues and roadblocks with an eye on the finish line.