Managerial Communication

UNIT 1
SYLLABUS
Unit 1: (8 Hours) Introduction: Meaning & Definition, Role, Classification – Purpose of
communication – Communication Process – Characteristics of successful communication –
Importance of communication in management – Communication structure in organization –
Communication in conflict resolution – Communication in crisis. Communication and
negotiation –Communication in a cross-cultural setting

MEANING

✓ Communication stands for natural activity of all human beings to convey opinion, feelings,
information and ideas to others through words, body language or sign etc.
✓ Communication can be defined as purposive interchange, resulting in workable
understanding and agreement between the sender and receiver of message.
✓ Communication is inter- change of thoughts, opinion or information by speech, writing or
signs.
✓ Communication is a process of exchanging information

Definition of Managerial Communication:

Managerial communication is ‘the downward, horizontal, or upward exchange of information
and transmission of meaning through informal or formal channels that enables managers to
achieve their goals’ (Bell and Martin, 2008: 130). Within this framework the role of managers is
to facilitate the communication in the organisation and use it to pursue the organisational goals.

CLASSIFICATION OF COMMUNICATION

✓ Intrapersonal communication: in which individual tries to create an understanding to

oneself, this process is also known as decoding.

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✓ Interpersonal communication: Interpersonal communication is the process of sending and
receiving information between two or more people. E.g. Public speaking, small-group
communication
✓ Group communication: refers to interaction or sharing of information between small or
large groups, like an organization, club, or classroom, in which all the individuals retain their
individual identity.
✓ Mass communication: occurs when message is sent to large group of people. In mass
communication exchange of information does not happen on individual basis, target
information is shared with people in mass. E.g. Newspaper, radio etc.
✓ Verbal communication: refers to communicating words through written or spoken
language. Verbal communication consists of speaking, listening, writing, reading, and
thinking.
✓ Non-verbal communication: it includes using of pictures, signs, gestures and facial
expression for exchanging information between persons. It is done through sign language,
action language or object language.
✓ Meta communication: Meta-communication, is a secondary communication about how a
piece of information is meant to be interpreted. In this speaker’s choice of words
communicates something more than what the actual words state. E.g. your presentation was
outstanding today. Which may also mean prior presentation of individual were not up to the
mark. it is the hidden meanings behind our words. E.g. you are looking good today, which
means you were not looking good yesterday.

NATURE OF COMMUNICATION

✓ It is process: communication is process in which there are some identifiable, interrelated

events which are initiated by sender to create understanding in mind of receiver.
✓ It is inevitable: individual is social being, who is required to interact with people around to
create understanding in mind of others, so it is part and partial of person’s life.
✓ Meaning based: communication is meaning based as, we must be able to link words
together so as to create meaningful sentences and languages.
✓ Communication is systematic: The one who sends the message, as well as receives are
interrelated to each other and transmission of data takes place through proper medium.
✓ Two-way traffic: communication involves two parties the sender, who transmits the data
and person, intended to receive the same. Communication is incomplete process until
message creates understanding in mind of receiver.
✓ Communication social process: human beings cannot live isolated life. Communication is
process, which helps individual to interact and socialize thus making it social process.
✓ A dynamic process: communication is dynamic in nature as, it adopts itself to changing and
demanding conditions at workplace. Change in communication channel at workplace from
letters to E-mail.
✓ Continuous process: communication is a continuous process. It is ongoing process, in
which one interaction is followed by other.
✓ Contextual: communication happens with reference to context. Same words would mean
different things if they are said in different context.

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ROLE OF COMMUNICATION

✓ Interpersonal role: it is important to maintain proper relationship within and outside the
organization to ensure smooth working of a company. This can be achieved only through
accurate and timely transmission of information through communication.
✓ Figurehead – Every manager has to perform some duties of a ceremonial nature,
such as attending the wedding of an employee, taking an important customer to lunch
and so on.
✓ Leader – As a leader, every manager must motivate and encourage his employees.
✓ Liaison – Every manager must cultivate contacts outside his vertical chain of
command to collect information useful for his organization.
✓ Informational role: internal information system is important tool, which ensures effective
operation in an organization such as maintenance of stock control, personnel, financial,
quality control networks etc. Through effective, interactive and informational communication
and strong feedback system high morale of employees can be secured at workplace.
✓ Monitor – The manager has to perpetually scan his environment for information,
interrogate his liaison contacts and his subordinates, and receive unsolicited
information, much of it as a result of the network of personal contacts he has
developed.
✓ Disseminator – The manager passes some of his privileged information directly to
his key subordinates who would otherwise have no access to it.
✓ Spokesman - A manager is also required to spend a part of his time in representing
his organization before various outside groups which have some stake in the
organization. These stake holders can be government officials, labor unions, financial
institutions, suppliers, customers etc.
✓ Decisional role: decision making is based on receiving and interpreting all relevant and
necessary information. Managers need to posses the skill of receiving accurate information,
which helps in effective utilization of resources and efficient management in organization.
✓ Entrepreneur – The manager proactively looks out for innovation to improve his
organization. Innovation means creating new ideas, which may either result in the
development of new products or services, or finding new uses for the old ones.

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 ✓ Disturbance Handler – The manager has to work reactively like a fire fighter. He
must seek solutions of various unanticipated problems-a strike may loom large, a
major customer may go bankrupt and so on.
✓ Resource Allocator – The manager must divide work and delegate authority among
his subordinates.
✓ Negotiator – The president of a company may negotiate with the union leaders on a
new strike issue, the foreman may negotiate with the workers a grievance problem
and so on.

PURPOSE OF COMMUNICATION

✓ To inform: is primary objective of communication. Information or data is transferred

through communication inside or outside organization to ensure effective working of
company.
✓ To persuade: it is important to persuade employees to work efficiently, to persuade
customers to buy company product and persuade government to run their business. So
therefore one of important objective of communication is to persuade.
✓ To educate: to disseminate knowledge, develop skills and attitude among people working in
an organization is important objective of communication.
✓ To train: employees in organization have to be trained to achieve effectiveness in area of
work. Instruction, demonstration, practice and discussion are important part of training which
require communication for the same.
✓ To motivate: high level of morale and motivation are necessary for effective productivity at
workplace. Employees are motivated in company through process of communication in form
of reward. E.g. Letter of appreciation.
✓ To integrate: large business organizations have different business units, departments, and
divisions which have varied goals and objectives. Communication provides the means for
integrated approach in pursuing organizational goals.
✓ To relate: good business relation is one of the core dimensions for success of any company.
Communication provides means for building and nurturing mutually beneficial relationship.
✓ To entertain: ceremony, functions, program, and celebrations through communication.
Communication facilitates social bonding through means of various channels of
communication. E.g. mass media.

FUNCTIONS OF COMMUNICATION

✓ Information sharing: the main purpose of communication is to transmit information to

individuals and groups in organization. The information may be in form of policies, rule, and
changes to be implemented in organization.
✓ Feedback: employees are to be provided feedback on their performance, required
improvement to be implemented, which is done through the means of communication in
companies.
✓ Influence: information is source of power to direct people, thus managers communicate
goals to be achieved and strategies through which effective accomplishment of objectives can
take place through communication.

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✓ Problem solving: communication helps in solving various company related issues between
management and trade union such as, hike in salary through negotiation which is possible
only through communication.
✓ Assist in decision making: most important role of manager is to take appropriate decision,
which requires accurate information and suggestion from people working in organization,
which takes place through effective communication.
✓ Facilitating change: implementing change in organization requires clarity as to why change
is being implemented and its benefit to management and organization, which is possible
through communication.
✓ Group building: communication helps in building better relation in organization by timely
transmission of information at workplace and avoiding problem of misunderstanding in
company.
✓ Gate keeping: communication helps to build linkages of organization with the outside
world. The organization can use its environment to increase its effectiveness.

ONE WAY COMMUNICATION PROCESS

✓ Sender: according to his ideas, behaviour pattern and intentions, selects message to
communicate it to receiver.
✓ Sender encodes the message in form (report, letter, codes, signs, symbols etc)
✓ After encoding the message, sender transmits it to the receiver through medium (verbal or
non-verbal) channel ( Email, telephone conversation, letters etc )
✓ Receiver receives the message, he decodes the message
✓ Examples: Reading books, newspaper and Watching TV, Listening Radio.

DEMERITS/ DISADVANTAGES/ PROBLEMS IN ONE WAY COMMUNICATION

✓ Receiver may not understand actual meaning of message.

✓ Action of receiver may not be as per expectation of sender of message.

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 ✓ It gives scope for misunderstanding.
✓ It may lead to distortion of message.

TWO WAY COMMUNICATION PROCESS

✓ Sender: Information source: communication process begins with source of information.

Sender has some set of raw data, which he intends to communicate in form of message to
receiver.
✓ Encoding: once the sender is clear about the content of message, he puts message in
form of words ( verbal symbols, signal, etc ) which is known as encoding.
✓ Channel/Medium: sender has to choose medium/ways through which message is to be
transferred to receiver (oral, written, electronic, code language) is known as channel of
communication in the process.
✓ Decoding: the receiver gets the message through decoding, by receiving, understanding
and interpreting the message. Decoding process depends on intelligence, experience,
feelings of receiver of message.
✓ Noise: is known as distortion or problem or hindrance which prevents proper
transmission of message from sender to receiver of message.
✓ Filters: depend on receiver’s mind set. Receivers positive or negative experience,
attitude, ability to understand and think logically on part of receiver. Bad experience of
Mr A with Mr B in past due to personal conflict may reduce interest level or
concentration on message communicated by MR B to A.

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 Shannon-Weaver Communication Model - mother of all models

✓ In 1948, Shannon was an American mathematician, Electronic engineer and Weaver was an
American scientist both of them join together to define a model called as “Shannon-Weaver
model of communication”.
✓ This model is specially designed to develop the effective communication between sender and
receiver. Also they find factors which affecting the communication process called “Noise”.
At first the model was developed to improve the Technical communication. Later it’s widely
applied in the field of Communication.
✓ The model deals with various concepts like Information source, transmitter, Noise, channel,
message, receiver, channel, information destination, encode and decode.

COMPONENTS or ELEMENTS OF COMMUNICATION

✓ Message: refers to information or data which is to be sent by one person to another to create
proper understanding. Here individuals stand for two persons the sender and receiver of
message.
✓ Sender: refers to person, who has data in form of information who intends to create
understanding in mind of sender, encodes the message and communicates the same through
channel of communication.
✓ Encoding: data available with sender is to be transformed into message, which receiver can
understand and react to the same. Converting data into meaningful information through
words, gestures, signs, symbol etc is known as encoding.
✓ Channel: the way the message is transmitted. It is medium through which the sender
conveys message to receiver. The medium of communication can be written, oral, audio –
visual etc. It is to be noted that channel of communication should be in accordance with
nature of message and accessibility of receiver.
✓ Receiver: is targeted person to whom the message is sent to. Receiver after getting the
message tries to create understanding about message.
✓ Decoding: interpretation of message by receiver, depending on his knowledge, skill and
ability is called as decoding.

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✓ Acting: after getting information receiver interprets the same and acts according to his
understanding of message. Receiver completes the chain of communication by responding to
message.
✓ Feedback: this is step through which sender of the message gets an idea, whether receiver
has understood message or not. It gives scope both to the sender and receiver of message to
clarify their doubts relating to content.
✓ Noise: kind of external disturbance in the process of communication, which prevents proper
transmission of message from sender to receiver. E.g: TV Volume, improper connectivity
✓ Filter: the process of modifying the formation of the message, psychology of a person
includes Biasness, our preference and interests, negative emotions, feelings, attitude etc.

CHARACTERISTICS OF SUCCESSFUL COMMUNICATION (SEVEN CS OF

COMMUNICATION)

✓ Candidness: refers to speaker or person should be clear about what he wants to

communicate and Honesty and bold enough to communicate the necessary information to the
other party. His talk should not be influenced by others opinion. There should be
transparency, loyalty, sincerity in his talk. Speaker should be unbiased and should have
fairness as guiding principle in their talk.
✓ Clarity: words used by the speaker should be clear and simple which should create proper
understanding in mind of receiver. In face to face conversation the speaker should have
positive facial expression towards the audience.
✓ Completeness: clarity is also ensured by completeness. In conversation if the speaker skips
few important words or topic, it may not create any sense in mind of audience. So the
communicator should have clarity of thought and be clear about content to be communicated.
✓ Conciseness: message will be effective only when it is short and sweet. Elaborative message
may make reader or listener to lose their patience, due to which they may not have clarity of
message and receive negative response from audience.
✓ Concreteness: refers to being specific, definite while communicating information may be
through oral or written communication. Information communicated to the audience should
not be vague, as it has to clearly specify the meaning and objective of communicating data.
✓ Correctness: it refers to avoiding grammatical mistake in spoke and written language. E.g.
mistake in using tense while communicating information or addressing person.
✓ Courtesy: refers to using polite and humble words while having conversation or addressing
people, avoid usage of harsh words. It also requires speaker to be patience listener, where he
should not interrupt when audience are expressing their opinion.

IMPORTANCE OF COMMUNICATION IN MANAGEMENT

✓ Forecasting and planning: requires appropriate collection of data required to predict

the future challenges. Training provided to employees for working in challenging
situation is done through means of communication.
✓ Organizing: as a management function, determines the formal and informal relationship
within and outside the organization. These relationships are developed and maintained
through interpersonal communication.
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 ✓ Instructing: function of instruction depends upon interpersonal exchange of information
regarding, products, process and targets for success.
✓ Coordinating: as tasks performed by managers is core aspect of all functions.
Communication is means through which managers get the desired work done by the
employees and direct them towards effective accomplishment of goals.
✓ Controlling: ability of management is determined by power of information, which refers
to fraction of time within which managers receives and communicates information to
employees.
✓ Sense of unity of purpose and commitment to a single organizational goal can be
developed only through the inspiring and persuasive power of communication.
✓ Training and development programmes can be conducted through effective
communication.
✓ In order to appraise employees, performance standards must be properly and clearly
communicated.
✓ In order to increase employee’s job performance and effectiveness by updating their
knowledge.
✓ To promote employees’ sense of belongingness and commitment.

COMMUNICATION STRUCTURE IN ORGANIZATION

✓ Effectiveness of communication system depends upon the extent to which necessary

information reaches concerned person at right time.

✓ Network of information supports overall functioning of management by integrating and

coordinating the workforce for achieving organizational objectives.

✓ Organization creates a network for information to pass through different levels of

authority and functional heads in company.

✓ Vertical communication: this is communication that flows in upward and downward

directions. It usually moves along the formal reporting lines in the company.

✓ Downward communication is process through which information flows from top

management to lower level management in the company. Main purpose of this
type of communication is to instruct and guide employees in their job
performance. It is directive in nature and demand action by superiors. Face to face
conversation, use of public address system, company newspapers are channels of
downward communication. Lectures, conferences, instructions are E.g. of
downward communication.

✓ Upward communication flows from subordinate to superior in company. This

communication usually takes place to handle employee queries and performance
in company. Reports, ideas, suggestions are E.g. for upward communication.

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✓ Lateral communication/Horizontal takes place between people on the same level of
hierarchy. This channel promotes horizontal flow of messages, enabling the departments
to work with each other without having rigid level for flow of messages. It promotes
coordination and team work at workplace. It helps in understanding and solving
organizational problems at broader perspective.

✓ Diagonal communication: takes place between people who are neither of same
department nor in the same level of hierarchy. Diagonal communication facilitates speedy
transmission of messages, but cuts down across organizational structure. This form of
communication in company is implemented following two rules: i ) obtain permission
from one direct supervisor before undertaking communication ii ) inform the direct
supervisor of any significant results of cross communication.

✓ External communication: Communication that takes place between a manager and

external groups such as - suppliers, vendors, banks, financial institutes etc. For instance -
To raise capital the Managing director would interact with the Bank Manager.

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FORMAL COMMUNICATION

Definition: The process of sharing official information with others who need to know it,
according to the prescribed patterns depicted in an organization chart

A formal channel of communication can be defined as a means of communication that is

formally controlled by managers or people occupying positions in an organization.
Communication flows through formal channel; it is officially recognized positions along the
line in the organization.

This ensures that the information flows orderly, in a timely and accurate manner, any
information, decision, memo or reminder etc. will also follow this path.

Advantages of Formal communication:

✓ It helps in maintaining the authority structure of the organization and become easier
to fix responsibility of subordinates
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 ✓ Better understanding between supervisor and subordinates and communication is
made more effective
✓ Better cooperation and coordination among employees are achieved in case of formal
communication
✓ Overlapping of communication does not take place
✓ Information passed through formal channel is more trustworthy and easily relied upon
✓ Formal communication helps maintain and respect the protocol of the organizational
structure
✓ Memos, circulars, instruction, guidelines, clarification, reports etc. form a part of the
formal communication
✓ Follow up actions and compliance becomes easier
✓ There is no chance of bias to creep in, as the information has to be passed on
according to the organization’s structure
✓ Minimal chance of leak or low of gossip in case of formal communication

Disadvantages of formal communication:

✓ Formal communication is time consuming, even a small piece of information has to

pass through long formal channels
✓ Formal communication does not allow social and emotional bonds
✓ The formal channels of communication can actually reduce free flow of information

INFORMAL OR GRAPEVINE COMMUNICATION

✓ Informal communication is also known as grapevine communication; Rumour Mill it is not

a planned or deliberately created channel of communication. It is free from all the
formalities. Formal structure of organization is not followed for transmission of message at
workplace.

TYPES OF GRAPEVINE CHAINS:

✓ Single stand chain: In this type of chain, ‘A’ tells something to ‘B’ who tells it to ‘C’ and so
on. This chain is least accurate in passing on information
✓ Gossip chain: here, one person seeks out and tells everyone the information he or she has
obtained. This chain is often used when information or message of an interesting, non-job
related is being conveyed

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✓ Probability chain: here, individuals are same, they tell at random, and those people in turn
tell others in random
✓ Cluster chain: here, ‘A’ tells something to a few selected individuals, and then some of
these individuals inform a few other selected individuals.

FACTORS RESPONSIBLE FOR INFORMAL COMMUNICATION

✓ Critical situation in organization such as strike or lockout, which creates unstable atmosphere
at workplace leading to informal communication.
✓ When employees feel lack of security, they tend to opt for informal channel of
communication to attain desired goals.

MERITS/ ADVANTAGES/ BENEFITS OF INFORMAL COMMUNICATION

✓ Uniting force: grapevine communication develops comfort level among employees as they
do not interact with each other as per company rules and regulations which facilitates in
bringing together workforce in matters in terms of common interest.
✓ Speed: informal channels pass on the messages speedily as they do not follow the confined
hierarchy of organization.
✓ Creation of idea: informal communication through sharing of ideas and views or by
spreading unofficial grapevine generates ideas and expectations that prove to be of value to
organization.
✓ Good personal relation: as informal communication gives scope to employees to have
interaction without any boundaries, which helps in developing good employee relation at
workplace with least effort of organization.
✓ Supplement to other channels: all the information cannot be transmitted to employees
through the official channels. Some useful information which cannot be conveyed through
formal channel can be communicated through informal channel of communication.
✓ Feedback: employees in organization may hesitate to express their problems to management,
in such situation informal channel of communication is proved to be more effective.

DEMERITS/ DISADVANTAGES / OF INFORMAL COMMUNICATION

✓ Rumours: negative information transmitted through informal channel of communication can

prove to be provocative and disastrous for relationship between employees and management
in company.
✓ Inadequacy: informal communication can manage only certain kind of organizational
information, which relates to non functional issues and matters.
✓ Changing interpretations: when information is communicated through informal channel it
may not be generalized in nature, employees in organization may perceive it according to
their wish, positive or negative in nature.
✓ Incomplete information: grapevine information is usually incomplete. So there are chances
of messages being distorted in company.
✓ Not Reliable: informal communication spreads by word of mouth. It may not be supported
by tangible facts.

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✓ Problem in fixing responsibility: origin of information flow cannot be ascertained through
informal channel of communication.

COMMUNICATION IN CONFLICT RESOLUTION

✓ Conflict may be understood as collision or disagreement. The conflict may be within an

individual when there is incompatibility between his or her own goals and events,
between two individuals when one person disagrees with others opinion.

✓ Conflict is struggle between two or more parties who have incompatible goals, scare
resources, interference from other party in achieving goals.

LEVELS OF CONFLICT

✓ Intra Individual Conflict: refers to conflict within an individual. Intra individual conflict
arises from frustration, numerous roles which demand equal attention but the individual is
not able to accomplish effectively.
✓ Inter Individual Conflict: occurs between two individuals in organization. It arises because
of difference in perception, personalities, value systems, socio cultural factors etc.
✓ Intra Group Conflict: refers to disputes among some or all group members, which affect
the group performance.
✓ Inter Group Conflict: are also known as organizational conflict, refers to conflict between
the groups, departments or sections in an organization.

CONFLICT MANAGEMENT STYLE

The Thomas-Kilmann model was designed by two psychologists, Kenneth Thomas and Ralph
Kilmann, to illustrate the options we have when handling conflict. There are two dimensions in

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the model. The first dimension, the vertical axis, is concerned with conflict responses based on
our attempt to get what we want. Thomas and Kilmann call these the Assertiveness options
(Care about self). The other dimension, the horizontal axis, is concerned with responses based
on helping others get what they want. Thomas and Kilmann call these the Cooperativeness
options (Care about others). This creates 5 basic types of response.

✓ Accommodation: LOSE-WIN is a style where one party believes in facilitating the benefit
to other party during the process of conflict taking future benefit into consideration. The
accommodating style is one of sacrifice, selflessness and low assertiveness. You are willing
to give up just about everything in order to preserve the relationship with the other party.
✓ Collaboration: WIN-WIN is one form of win - win approach where neither of the party
tend to compromise and both are satisfied by conflict negotiation process. Let's find a
solution that works for all of us.
✓ Compromise: You LOSE Some– You WIN Some in this process one party agrees to
conditions of other without taking ones benefit to consideration, this situation arises when
one party is stronger than other/value the relationship.
✓ Avoidance: LOSE-LOSE - in this situation when one party finds no advantage in
negotiating with the other, they tend to avoid the conversation process which is known as
avoidance. "I'll think about that tomorrow.
✓ Competition: WIN –LOSE - in this situation where both the parties are stronger and do not
believe in compromising but focus on competing with each other to win in persisting
situation.

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ADVANTAGES OF COMMUNICATION IN CONFLICT RESOLUTION

✓ Stronger relationship: communication helps in creating better understanding in the minds

of each other through timely exchange of information to avoid misunderstandings.
✓ Problem solving communication helps individuals to come together, express their opinion,
which brings into picture many alternatives thus helping in effective way to solve the
problem.
✓ Reduced tension: sharing of information helps in gathering data required, which increases
level of comfort and ensures effective solving of problem.
✓ Increased understanding: communication through transfer of information by proper
channel of communication helps in reducing misunderstandings by presenting clear picture
of situation.
✓ Communication ensures effective utilization of resources, as it provides clarity in terms of
roles and responsibility to be accomplished, which helps in reducing conflict among the line
and staff in company.
✓ Improves motivation and morale: communication improves morale and motivation by
keeping people informed. Good communication helps people to deliver good performance at
workplace. Communication brings about meeting minds in company.
✓ Means of coordination: communication is the foundation of all group activity.
Organization operations are divided into different department, units who have varied goals
and objective. Company’s objectives can be achieved only when efforts of all departments
are directed towards accomplishment of single task. Communication helps various
departments to exchange information have understanding about interrelatedness of various
task.

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COMMUNICATION IN CRISIS

✓ A crisis is any event that is, or expected to lead to, an unstable and dangerous situation
affecting an individual, group, community or whole society. Crises are deemed to be
negative changes in the security, economic, political, societal or environmental affairs,
especially when they occur abruptly, with little or no warning.

✓ The effort taken by a company to communicate with the public and stockholders when an
unexpected event occurs

✓ Crisis communication can be defined broadly as the collection, processing, and

dissemination of information required to address a crisis.

✓ It is the “dialog between the organization and its public(s) before, during, and after the
negative occurrence in order to reduce the damages to the image of the organization.

RESPONDING TO CRISIS
✓ The special communication plan should be used immediately at the onset of the crisis.
✓ The information process goes into operation – informing employees, relevant authorities,
concerned public and obtaining help and assistance to fight the crisis.
✓ Media action plan would be critical factor as the media and the organization become
interdependent during and after crisis. It is dangerous and sometimes suicidal to pull the wool
over the eyes of media.
✓ Determine the steps to contain any rumours which might gain momentum at the onset of
the crisis.

CRISIS-MAGGI- 2min Noodle

• Maggi is one of Nestle most popular Product
• The UP-Food Safety and Drug Administration carried a systematic raid on retail outlet
• Tested in Govt. lab in UP and Kolkata revealed that,

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 • 7times the permissible amount of Monosodium glutamate (Ajinomoto) – taste
enhancer
• Elemental lead also been detected.
• Official seized more than 2 lakh packets and sample were sent for testing
• Suresh Narayanan, chairman and managing director of Nestle India, was brought in to
manage the crisis.
• Issued a press statement – reassuring the consumers that Nestle is committed for Quality
• Created a page: Meri Maggi
• Prior and Post Mother’s Day – “Mom’s Maggi”
• Increased the ad spots – prime slots – 9.PM-11PM
• Maggi had lost the trust of many customers & rebuilding that trust was a challenge for
Nestle.
• Nestle had to recall 38,000 tons of Maggi noodles from millions of retail shelves,
destroyed them
• Rebuilt Maggi - 18 months after the Maggi ban – according to legal procedure –
Maggi went for 3 levels of testing.
• Nestle enjoys 57 per cent market share in the instant noodles market in India as against
75 per cent before the crisis had hit the company.

COMMUNICATION IN CROSS CULTURAL SETTING

✓ Culture provides patterns of acceptable behavior & beliefs based on Nationality, Race,
Religion, and Historical Roots.
✓ Interaction, communication, and other process which involve people or entities from two or
more different cultures.
✓ Communication between members of different ethnic groups. – Cross Cultural
Communication
✓ No matter where you work, chances are you are surrounded by examples of cultural
differences. These differences may be due to ethnic and racial background, age, geography,
religion, and even the kind of school people attended.
✓ Culture is the way, you think, act and interact with people in the society.

CULTURAL VALUES/DIMENSIONS:
Hofstede's cultural dimensions’ theory is a framework for cross-cultural communication,
developed by Geert Hofstede.

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✓ Power Distance: The extent to which a society accepts that power in Institutions and
Organizations is distributed unequally.
✓ High Power distance: India, China
✓ Low Power Distance: Japan, US
✓ Individualism: The degree to which people prefer to act as individuals rather than a member
of groups. E.G: Japan, US
✓ Collectivism: A tight social framework in which people expect others in groups of which
they are a part to look after them and protect them. E.G: India, China
✓ Masculinity (Achievement): The extent to which societal values are characterized by
assertiveness, materialism and competition. E.G: China, Japan
✓ Femininity (Nurturing): The extent to which societal values emphasize relationships and
concern for others. E.G: Bhutan, Taiwan
✓ Uncertainty Avoidance: The extent to which a society feels threatened by uncertain and
ambiguous situations and tries to avoid them. E.G: Japan is one of the most uncertainty
avoiding countries and US – Uncertainty acceptance
✓ Long-term Orientation: A national culture attribute that emphasizes the future, saving, and
persistence. E.G: USA, Canada, Russia
✓ Short-term Orientation: A national culture attribute that emphasizes the past and present,
respect for tradition, and fulfilling social obligations. E.G: Hong Kong, Pacific Rim countries
✓ Formality: culture that attach considerable importance to tradition, ceremony, social rules
etc. Least importance: United states and Canada

BARRIERS TO CROSS CULTURAL COMMUNICATION

✓ Cultural barriers: is one of the major hurdles in cross cultural communication, as
words, body gestures, vary from country to country which may create problem of
misperception in company.

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 ✓ Socio psychological barriers refers to practices followed in society, which differs in
various countries. E.g. In countries like US and UK ladies are permitted to work in night
shifts, whereas same practice may not be encouraged in Islamic countries.
✓ Semantic Errors: Semantic (words with different meaning) refers to difference between
what the sender intends to communicate and actual transmitted message. It happens as
meaning of words varies according to language used in various countries.
✓ The new product launch went like a Bomb – UK
✓ The Product launch bombed – US
✓ Linguistic Barrier:
✓ Language – gives different meaning
✓ Pepsi: “Come alive with Pepsi”
✓ -Chinese language- “Pepsi brings your ancestor back from the grave”
✓ Mistrust: misunderstanding may occur due to negative perception about people of some
countries due to bad experience in past because of which they may not rely on
information provided by people from specific countries.
✓ Channel Barrier: Cultural changes lead choosing of inappropriate channel of
communication due to lack of understanding about cultural practices followed by
receiver of the message. If the length of communication is long. Lack of interest to
communicate.

STRATEGIES FOR EFFECTIVE CROSS-CULTURAL COMMUNICATION

✓ Maintain formality refers to using formal verbal and body language during process of
communication, being diplomatic while communicating to others with different cultural
background.
✓ Show respect: respect to the culture and understand importance of different culture. And it
refers to having sense of empathy, being patient listener, welcome individuals with friendly
gesture.
✓ Communicate clearly: information should be communicated to individual in specific and
data should be illustrated with examples.
✓ Value diversity: diversity should be viewed as an asset in organization, which can bring a
wide range of benefits to company in terms of expansion of business.
✓ Listen, understand, and interact: Before communicating the information, it is important to
listen, understand the expectation of receiver’s message.

COMMUNICATION AND NEGOTIATION

✓ “Business negotiation is the process of bargaining in which two or more parties, each of
whom have something that the other wants, try to reach an agreement, mutually accepted
terms.”
✓ “The process of trying to reach an agreement through discussion”
✓ “The discussion and bargaining that goes on between parties before a contract is settles or a
deal is definitely agreed upon”
✓ In simple words, Negotiation is to bargain for mutually agreed exchange by using persuasion
and discussion.

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✓ As Bill Scott says, “Negotiation is a form of meeting between parties: our party and the other
party.
✓ E.G: Sales manager trying to negotiate with wholesales or dealers

Communication between two negotiators tends to be even more difficult and complex when it
involves individuals from diverse cultures than when it includes people with similar
backgrounds. For example, negotiators from traditional cultures often attach more importance to
the way in which a proposal is made than to what is being said. In such discussions, what is not
said may be just as important as what was said.
Negotiators discussing in a language other than their mother tongue should rely to a great extent
on visual aids, printed materials, samples, and references to facts and figures. The old saying “A
picture is worth a thousand words” is most appropriate in this context.

These negotiators should use simple, clear language with frequent questioning to ensure that the
other person is following the discussions. Idioms, colloquialisms, and words with multiple
meanings should be avoided.

Negotiating is first and foremost about communications. It is a dialogue in which each person
explains his or her position and listens to what the other person is saying. During this exchange
of views, proposals are made, and concessions are explored. The result is intended to create
added value for both parties.

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