Chaptex 7

COMMUNICATION
The term communication is derlved from the Latin word 'communls' meanng
common' Thus commnteatlon means sharlng of tdeas In common. Literally
communicationn mearns to inform, to tell or to show öf to spread Informatlon. It 1s the

act of inparting a common ldea or understanding to another person and covers any
behaviour that atlects an exchange of meaning. It plays more signiflcant role in the

present day organizattons, whlch are eomplex, dynamle and socially orlentea
Ellective comunicatlon keeps the organtzatlon vibrant, vital and smooth sallng
Thus the term communleatlon is the transfer of message from one individual to
another. Effective communication requires understandabllity of the messiage by
the receiver. It is a two way process.
Definition
According to Keith Davis, "Communieation is the process of passing information
and understanding from one person to another".
Newnan & Summer defines, "Communicatlon means an exchange of facts, ideas,
opinion, information or emotions by two or more persons".
Prom the organizational behaviour point of view, communication is the process
through which two or more persons come to exchange tdeas and understanding
among themselves.
Nature and Characteristics oi Communication
The above defînitions reveal the following characteristics.
1. It involves at least two persons.
2. Message is a must and a communication must convey some message.
3. Communication may be written, oral or gesture.

4. It is a two way process. It involves both information and understanding.

5. Communication is only complete when the recetver understood the message
properly and the sender knows his reaction or response.
6. It's primary purpose is to motlvate a response or influence human behavlour.
7. It Nows up and down, and also from side to slde. Communicatlon flows
downwárd from a superlor to subordinate and vice versa.
8. Communicatlon may be formal or informal.
9.It is an Integral part of the process of exchange.
156.. . Business Management...
10. It is a basis for action and co-operation.
Objectives of Communication
1. Conveying the
right message: The main purpose of communication is to
convey the right message to others, which may be weli understood by them so
that they may carry on their work
effectively.
2. Co-ordination: The entire activities to run a business is co-ordinated with the
tool of communication.
3.Development of managertal skil1: The manager is able to understand others
through communicating facts, ideas, messages etc upward and downward. It
enriches the knowledge of executives.
4.Good industrial relation: It is able to maintain
goods labour management
relations in the organization through communication between management and
labourers.
5.Effectiveness of policies: The policies, programmes and procedures are
communicated to those who are required to execute it. It can be understood
properly. through an effective communication.
6. Ensure free exchange of information: To ensure free exchange of information
and ideas well as assisting all the employees in
as

the reasonableness of the status and

understanding and accepting
authority of everyone in the organization.
Importance of Communication
Communication essential for the success of organization. It is an
is
indispensable
part of management. A manager spends much of his time for communication pupose.
The communication offers the following
advantages.
1. Acts basis for decision-making: Communication is a n essential
as a

requirement for decision making and planning. The quality of managerial decision
depends on the quality of communication. Plans, messages etc must be
communicated by supervisor to subordinates. Apart from this, a communication
system is a must to implement the decisions effectively.
2. Basis for co-ordination: Due to specialization and division of labour, an
organization consists of large number of persons. The activities and human
resources are co-ordinated
effectively to achieve the objectives of the organization.
Co-ordination requires mutual understanding about organizational goals, the
mode of their achievement and the inter
relationship between the work being
performed by various individuals. All this can be achieved through proper
communication.
3. Pronotes co-operatlon and human relation:
Communication is a two-way
traffic. The communication helps to
promote co-operation and mutual
understandings between the employees and management. Good human relation
is the basis of co-operation. Industrial peace can be achieved by creating a good
 Communication. 157

working condition and work environment. An efficient and effective

communication system builds human relations
4Increases managerial efmciency: Management conveys ideas, directins,
goals. targets. and instructions to subordinates. In the same way. the
management allocates jobs and responsibilities. Ali these are prssitie only wth
the help of effective communicauon So for successful management, the executive
should possess qualitative communication skill.
5. Employees motivation and morale: An efficient communication system
enable management to change their attutude to motivate and satisty sutordinates
Communication is the means by which employees can bring their
suzzestions
diieulties and grievances to the notice of the management Proper and timely
communication between the management and employees reduces the points
friction and minimizes those that inevitably arise. Good communication helps
the employees in their adjus1ments with the physical and social aspect wrk.
. Bmphasis on effectire leadership: Effective leadership requires an effcient
system of communication in the organization. A good leader can direct his
subordinates with the help of a good communication system. t brings both the
leader and the subordinates in close contact to each other and it rermoves
misunderstanding
7. Smooth functioning
of a n organzation: All organizational interactions depend
upon communication. It is the funetion of the management to co-ordinate human
and physical resources of the organization to achieve objectives. It is ony possible
through the process of communication. An efective cormmunication system helps
smooth function of an organization.
Contect 7ith outside parties: Communication helps to build contact with
outside parties like customers. association. other manufacturers. advertisers.
suppliers etc. It increases reputation of the firm. Communication is a
indispensable means of developing a farourable public opinion about the
organisation. So a cordial relationship can be created through a proper
communication system in between organization and public.
Types of Communication
According to organization structure:
Formal communication
FoTTmal communication is associated aith the formel orzanization structure. It
ravels through the formal channels ofcirly recogrized positions in the organization
chart The formal channel is the deliberately created offcialy prescrbed path lor
Dow of communication between the various positions in the organization. It is a
deliberate attempt so as to make it orderiy and there by to ensure that information
Dows snoothly. acrurately and timely to the points to which it is required.) Further
it is also intended to preseribe Sor fltering of the information to variouspoints to
158. . Business Management...
ensure that information docs not flow
unnecessarily thercby causing (he proble
of overload. The formal channel is also
called channel of command.
Advantages of Formal Communication
1./t helps to maintain the
aythority of line executives: Line executives who
control the subordinates are answerable to their boss for thelr work and
on the work.
conduct
They can easily fx up the responslbility for the activities carried
out by the subordinates.
2.It helps to understand the attitude and behaviour of boss and
An immediate subordinates:
superior has direct contact with his subordinates, so that a better
understanding can be developed and communication is made more effective.
3.It helps to have better solutions and relatlons: The
executives know better
about the organization and his subordinate's
problems. A better solution of
problems can be found easily and good relations between the leader and his
subordinates can be developed.
Limitations
1. Increases the workload of the
superior: All communications are transmitted
through superiors. It will increase the workload of superiors. They will not get
enough time to perform other organizational functions.
2. Reduces accuracy of message: There is a greater
of
possibility of transmission
errors. Itwill definitely reduce the accuracy of
message.
3. Chances of red
tapism and delay tactlcs: Formal communication implies
delay tactics and red tapism because executives overlook the interests of their
subordinates.
4. Distance among rank and fles: In big organization, the contact between
lower level and higher levels are far remote.
They are not able to recognize each
other. This will adversely affect the relations of the
executives and subordinates.
Informal Communication or Grape wine
There is no formal channel for communication. It is free
from all formalities because
they are based on the informal relationship between the parties such as
friendshlp.
membership in the same club or association. The informal channel of communication
is alsoknown as 'Grape wine'. Under
grape wine system, organizational and personal
matters are discussed and information
may be conveyed by a simple glance,
nod, smile or mere silence. It is not the result of gesture,
any official action but of the
operation of persornal, social and group relations of the people. It thus, exists outside
the official network, though
continuously interacting with it. Usually there is a
perception that grape wine is inaccurate. This happens because grape wine tends
to be associated with romour, which is
another form of informal communication.
Managers in any organization also favour for the growth and
network of communication. This process in fact, serves a
development of informal
very useful purpose in
disseminating certain information, which in the general interest of the
organization,
 .. 159
. Communtcatlon..
cannot be transmitted
through the offlctal channels. Apart from that, t also
the high and higher ups a clearer inslght Into what subordinates think and on ferl.
Another marked feature of grape wlne In that it operates ike a cluster chain.
instance, 'A' tells three or four (C, H, Z) selected others. Only one or two of
receivers will then pass the informnation and again they will tell more than
thev
on
person. In this way the information or messape spreads among
emnployees.
Advantages
1. Communication is transferred at a
greater speed.
2. It is more flexible
3. It is aa natural and normal activity.
4. It is dynamic. Immediate response can be arised through informal
communication.
5. It is more influential than formal communication.
6. It provides a great number of benefits to management. Management is able to
collect certain important information, which cannot be collected
through
formal communication.
7. It meets the social needs of people, which are not met by formal communication
8. Informal communication can act as supplement to formal comnunication.

Disadvantages
1. There is the possibility of spreading misleading or half-truth information among
employees. It will create problems.
2. Responsbility of.erratic information cannot be flxed and therefore any action
taken on the basis of such information leads the organization in difficulty.
According to direction:
1. Downward communication: Communication, which flows from the superior to
subordinates, is referred as downward communication. This kind of
communication is found especially in organization with an authoritarian
atmosphere. Downward communication is needed.
a. to get things done

b. to prepare for changes

C. to discourage misinformation and susplicion
d. to let the people feel the price of being relatively well informed.
In downward communication., there is a face to face as well as wrjtten memos,
orders, job descriptions etc.
2. Upward communlcatton: It is Just reverse of the downward communication.
Upward communication flows from a subordinate postion to a superior position.
he examples of upward communication are
160. ...Business Management....

a. subordinates work performance report

b. activity reports like consumption of raw material, production, distribution,
man-hour etc.
c.
opinion, ideas and suggestions
d. complaints and grievances
e.
performance appraisal of subordinates
f. clarification of orders
g. criticisms.
Generally this type of communication is ignored by the superior but in modern
times; it is regarded as the main source of motivation in employees.
3. Horlzontal communication:- Lateral communication) It is the communication
between two or more persons operating at the same level of authority. It is more
of an informal nature. If a departmental head needs some information from
another departmental head, he may get this by ringing directly. Such
communication is very helpful in creating co-operation and co-ordination among
different departments or divisions of
organization
According to way of expression
1. Oral communication: Transmission with the help of spoken words is oral
communication. In oral communication both parties of the process exchange
ideas through oral words either in face-to-face communication, or through a
mechanical device such as telephone, Internet etc. This type of communication
saves time and money. The communicator is able to know the reaction of
communicate directly.
2. Written communication: When communication is reduced into black and white,
it is called written communication. This includes written words. graphs. charts
etc. It is used by larger organizations for communicating their policies and
decisions to their employees. This may take the form of letters, memorandum,
and instructions to workers, house bulletins. suggestion box scheme and
feedback. The main advantage of written communication is that it may be stored
as record for future references
Communication Process
Communication is the process of conveying information between two or more people.
The communication process is the steps we take in order to achieve a successful
communication. Communication is a process of exchanging verbal and non verbal
messages. It is a continuous process. Pre-requisite of communication is a message.
This message must be conveyed through some medium to the recipient. It is essential
that this message must be understood by the recipient in same terms as intended
by the sender. He must respond within a time frame. Thus, communication is a two
way process and is incomplete without a feedback from the recipient to the sender
 . Communication... .161

o nh o w w e l l
vell the message 1s understood by him. The communication process consists
It consists of
o
of
s e v e r a l components.
A sender
encodes information
1.
aThe sender selectsa channel of communication by which to send the message

T h e receiver receives the message

A The receiver decodes the message

5.
The receiver may provide feedback to the sender.
1.Sender / oder -
Encod Sender / Encoder is a person who sends the message. A

Sender makes use oi symbols (words or graphic or visual aids) to convey the
message and produce the required response. For instance a training manager
for batch of employees. Sender may be
conducting training new an individual or

a group or an organization. The views, background. approach. skills.

competencies, and knowledge of the sender have a great impact on the message.
The verbal and non verbal symbols chosen are essential in ascertaining
interpretation of the message by the recipient in the same terms as intended by
the sender.

2,Message - Message is a key idea that the sender wants to communicate. It is a

sign that draw out the response of cipient. Communication process begins
with deciding about the message to be conveyed. It must be ensured that the
main objective of the message is clear.
3.Medium- Medium is a means used to exchange / transmit the message. The
sender must choose an appropriate medium for transmitting the message.
Otherwise the message might not be conveyed to the desired recipients. The
choice of appropriate medium of communication is essential for making the
message effective and correctly interpreted by the recipient. A channel or medium
of communication must also be selected, which is the manner in which the
message is sent. Channels of communication include speaking. writing. video
transmission, audio transmission, electronic transmission through emails, text
messages and faxes and even nonverbal communication., such as body language
This choice of communication medium varies depending upon the features of
communication. For instance Written medium is chosen when a message has
to be conveyed to a small group of people, while an oral medium is chosen when
spontaneous feedback is required from the recipient as mísunderstandings are
cleared then and there.
4.Rectplent/ Decoder Reciplent / Decoder is a person for whom the message
is intended/ aimed / targeted . The recetver must be able to decode the message,
the message into understanding. If you can't
which means mentally processing
decode, the message fails. For example, sending a message in a foreign language
that is not understood by the receiver probably will result in decoding failure..
The
The degree to which the decoder understands the message is dependent upon
162.. .Bustness Management...
various factors such as knowledge of reclplent, their responsiveness to th
the
message, and the rellance of encdder on decoder.
5. Feedback Fecdback is the main component of communication process as
permits the sender to analyze the efMcacy of the message. It helps the scnder in
confirming the correct interpretaton of message by the decoder, Feedback may
be verbal (through words) or non-verbal (in form of smiles, slghs, etc.). It may
ay
take written form also in form of memos, reports, etc.
Barriers of Communication
Communication skills are critical for managers. There is a lot of communlcation
barriers faced these days by all. These barrlers can negattvely impact the
communication effectiveness. The message intended by the sender 1s not understood
by the receiver in the same terms and sense and thus communicatdon breakdown
occurs. It is essential to deal and cope up with these communication barriers so as
to ensure smooth and effective corhmunication. Understanding these barriers and
taking steps to minimize or overcome them can help to ensure that managers are
effective in their communications- with employees and others.
1.Physical barriers: Physical barriers are due to the nature of environment. For
example, the natural barrier which exists, if staff are located in different building
or on different sites.
2. Informatlon Overload: Managers are surrounded with a pool of information.
Unchecked inflow of information very often becomes another barrier to
communication. It is essential to control this information flow because the
information Is likely to be mistnterpreted or forgotten or overlooked. As a result
communication is less effective. There may also delay processing or responding
to information /message at least for some time. The delay may become a habit.
causing serious communication problems. People may also become selective in
thetr responise, and selectivity fs iot communication-friendly.
3. Semantic Problems: Semantics or code nolse occurs when the meaning of a
message to the sender differs from its meaning to the recipient. .Semantics is
the systematic study of meaning. That is
why the problems arising from expression
or transmission of
meaning in communication are called semantic
problems.
Oral or written communication is based on words. The of the message
in the mind of the sender is same as in that of the
meaning
receiver. But it is not always
necessary for the meaning in the mind of the sender to be the same as in the
mind of recefver. Much, therefore, depends on how the sender encodes his
message. The sender has to take care that the recelver does not misinterpret his
message, and gets the intended meantng. Quite often it does not happen in this
way. It can be ensured only if we aim at clarlty, simplicity and brevity so that the
receiver gets the intended meaning.
4. Poor Lstening: Pbor listening may lead to serious communication
problems.
 .... Commnunication.... ..163

Too many people are interested in talking, and mostly talking about themselves.
They are so much involved, with themselves that they do not have patience to listen.
The result is that they are not interested in the speaker whose words go waste.
Everybody knows about the importance of listening, but very few actually practice
patient, active and empathic listening, That is why so many communication problems
crop up. Poor listening accounts for incomplete information and also poor retention.
One may simply not get the desired result if this keeps on happening.
5. Filtering: Filtcring means that the sender of a message manipulates intormation
in such a way that it will be seen more favourable by the receiver. A manager, for
example, lHkes to tell his boss what he feels or what his boss wants to hear. In this
process, he is filtering information. The net result is that the man at the top never
gets objective information. In the same way, the people at the lower levels compress
and create information to
get maximum benefits for themselves. They hold
so as

back or ignore some important part of information. The more vertical levels in the
organisation, the more chances are for filtering. This is a very frequently occurringg
communication problem.
6. Cultural Barriers: Cultural differences often come up as communication
barriers. We have to be especially careful in this
regard as now we have to operate
in international environment. The same of words,
category phrases, symbols,
actions, colours mean different things to people of different countries or different
cultural backgrounds. The linguistic differences also lead to communication
breakdown. Same word may
mean different to different individuals. For example:
consider a word "value". i. What is the value of this computer? ii. What is the value
our relation? Communication breakdown if there is wrong perception
occurs
by
the receiver.
7. Socio-psychological Barriers: The attitudes and opinions. place in society
and status-consciousness arising from one's posttion in the hierarchical structure
of the organisation, one's relations with peers, seniors, and juniors family
background-all these deeply affect one's ability to communicate both as a sender
and receiver..Status consciousness is widely known to be a serious communication
barrier in organisations. It leads to psychological hostility which further leads to
breakdown óf communicatlon on miscommunlecation. Often it is seen that a man
high up in an organisation builds up a wall around himself. This restricts
participation of the less powerful in declsion-making. In the same way one's family
background formulates one's attitude and communication sklls.
8. Emottons: Emotions play a very important role in our life. Both encoding and
decoding of messages are infuenced by our emotions. A message received when
we are emotionally worked up will have a different meaning for us than when we
are calm and composed. Anger is the worst emotion and enemy of communication.
 164. .. Business Management. ... *** '
****..
*..

9. Complexity 1n Orgaizational Structure: Greater the hicrarchy in an

organization (1.e. more the number of managerial levels). more is the chances t
communication getting destroyed. Only the people at the top evel can sce the
overall pietre while the people at low level just have knowledge about their
area and a lttle knowledge about other arcas.
10. Poor retention: Human memory cannot function beyond a limit. One cann
always retain what is being told specially if he is not interested or not attentive
This leads to communication breakdown
I1 Loss by Transmlssion: Communication often suffers or gets diluted when
messages pass on from person to person in a serles of transmisslorns. They get
dihuted on the way. Special care has to be taken that the intended message
reaches the person concerned
12. Time Pressurcs: Often in organization the targets have to be achieved within
a specified time period. the failure of which has adverse consequences. In a
haste to meet deadlines, the formal channels of communicatton are shortened
or messages are partially given, i.e., not completely transferred. Thus suficient
ime should be given for effective communication.
Steps to overcome the barriers of communication
The following steps are to be taken to overcome the barriers of communication.
1.Eliminating differences in perception: The organization should make sure
that right individuals are recruited on the job. It's the responsibility of every
manager to ensure that the employees have command over the writen and
spoken anguage. There should be proper Induction program so that the policies
of the company are clear to all the employees. There should be proper irainings
conducted for required employees.
2.Use of Simple Language: In communication use of simple and clear words
should be emphasized. Use of ambiguous words and jargons should be avoided.
3.Reduction and elimination of noise levels: Noise is the main communication
barrier which must be overcome on priority basis. It is essential to identify the
source of noise and then eliminate that source.
4.Active Listening: Attenti-c and careful listening is essential. There is a
difference between "listening" and "hearing". Active listening means hearing with
proper undersfanding of the messnge Ihat is being heard. By asking questions
the speaker can ensure whether his/her message is understood or not by the
receivér in the same terms as intended by the speaker.
5.Emotional State: During communication one should make effective use of bocdy
langage. He/she should not show their emotions while communication as the
recciver might misunderstand the message being delivered. For example. if the
ronveyer of the message is in a bad mood Ihen the receiver might think that the
information being delivered is not good.
 . .. 165
Communicatlon......
Organizational Structure:
6.Simple O r g a n i z
le The organizational s t r u c t u r e should not
be complex. The number of hierarchical levels
should be optimum. There should
be an 1dealspan ot control within the organization. Simpler the organizational
be

efructure, more ellective will be

the communication.
Avold Information Overload: The managers should know how to
7.Avo prioritize
their work. They should not overload themselves with the work.
They should
spend quality time with their subordinates and should listen to their
spe
and feedbacks actively.
probiens
A.Give Constructive Feedback: Avoid giving negative
feedback. The contents ol
the feedback might be negative, but it
should be delivered constructively.
Constructive feedback will lead to effective communication between the superio
and subordinate.

9. Proper Media Selection: The

managers should properly select the medíum oi
communication. Simple messages should be
interaction or meetings. Use of written conveyed orally, like: face to face
means of
encouraged for delivering complex communication should be
can be given by using writtenmessages. For significant messages, reminders
means of
etc. communication such as: Memos, Notices
10. Flexibility 1n meeting the targets: For
organization the managers should ensure that effective communication in a n
targets timely without the individuals are
should not be much skipping the formal meeting their
channels of communication.
pressure on employees to meet their There
Review Quontin targets.