THE INSTITUTE OF FINANCE MANAGEMENT

The communication process involves the exchange of information between a sender and a
receiver. It can be a complex and dynamic process, but it generally follows a set of basic steps.
Here are the key components of the communication process along with examples and a newly
sketched diagram:
1. **Sender:** The sender is the person or entity initiating the communication. This could be an
individual, a group, or an organization.

- **Example:** Imagine a manager sending an email to their team to announce a new project.

2. **Message:* The message is the information or idea that the sender wants to convey. It can
be verbal, non-verbal, written, or symbolic.
 - **Example:** In the email mentioned earlier, the message is the detailed explanation of the
new project, its goals, and expectations.

3. **Encoding:** Encoding is the process of converting the message into a format that can be
transmitted, such as words, symbols, or visual elements.

- **Example:** The manager encodes the message by choosing the right words and
structuring the email effectively to convey the project details clearly.

4. **Channel:** The channel is the medium through which the encoded message is transmitted.
It can be face-to-face, written, electronic, or through various other communication tools.

- **Example:** In the digital age, the email is the channel used by the manager to
communicate the project information to the team.

5. **Transmission:** This step involves the actual sending or transmitting of the message
through the chosen channel.

- **Example:** The manager sends the email to all team members.

6. **Receiver:** The receiver is the individual or group for whom the message is intended. They
decode the message to understand its meaning.

- **Example:** The team members receive the email from the manager.

7. **Decoding:** Decoding is the process by which the receiver interprets and makes sense of
the transmitted message.
 - **Example:** Team members read the email, understand the project details, and interpret
the expectations.

8. **Feedback:** Feedback is the response or reaction of the receiver to the sender's message.
It helps ensure that the message was understood as intended.

- **Example:** Team members may respond to the email with questions or acknowledgment,
providing feedback to the manager.

9. **Noise:** Noise refers to any interference or distortion in the communication process that
may hinder the accurate transmission or reception of the message.

- **Example:** If there are technical issues with the email server, some team members may
not receive the message, creating noise in the communication process.

**Diagram:**

[![Communication Process
Diagram](https://i.imgur.com/VFmcFvZ.png)](https://i.imgur.com/VFmcFvZ.png)

In the diagram, each step is represented with arrows indicating the flow of the communication
process. The sender encodes the message, which is then transmitted through a chosen channel
to the receiver. The receiver decodes the message and provides feedback, while noise can
disrupt the process at various stages. This visual representation helps illustrate the sequential
nature of the communication process.