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Communication
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Communications is fundamental to the existence and survival of
humans as well as to an organization. It is a process of creating
and sharing ideas, information, views, facts, feelings, etc.
among the people to reach a common understanding.
Communication is the key to the Directing function of the
management.

A manager may be highly qualified and skilled but if he does

not possess good communication skills, all his ability becomes
irrelevant. A manager must communicate his directions
effectively to the subordinates to get the work done from them
properly.

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Communications Process
Communications is a continuous process which mainly involves
three elements viz. sender, message, and receiver. The elements
involved in the communication process are explained below in
detail:

1. Sender

The sender or the communicator generates the message and

conveys it to the receiver. He is the source and the one who
starts the communication

2. Message

It is the idea, information, view, fact, feeling, etc. that is

generated by the sender and is then intended to be
communicated further.

3. Encoding

The message generated by the sender is encoded symbolically

such as in the form of words, pictures, gestures, etc. before it is
being conveyed.

4. Media

It is the manner in which the encoded message is transmitted.

The message may be transmitted orally or in writing. The
medium of communication includes telephone, internet, post,
fax, e-mail, etc. The choice of medium is decided by the sender.

5. Decoding

It is the process of converting the symbols encoded by the

sender. After decoding the message is received by the receiver.

6. Receiver

He is the person who is last in the chain and for whom the
message was sent by the sender. Once the receiver receives the
message and understands it in proper perspective and acts
according to the message, only then the purpose of
communication is successful.

7. Feedback

Once the receiver confirms to the sender that he has received

the message and understood it, the process of communication is
complete.

8. Noise

It refers to any obstruction that is caused by the sender, message

or receiver during the process of communication. For example,
bad telephone connection, faulty encoding, faulty decoding,
inattentive receiver, poor understanding of message due to
prejudice or inappropriate gestures, etc.
 (Source: businessjargons)

Importance of Communication
1. The Basis of Co-ordination

The manager explains to the employees the organizational

goals, modes of their achievement and also the interpersonal
relationships amongst them. This provides coordination
between various employees and also departments. Thus,
communications act as a basis for coordination in the
organization.

2. Fluent Working

A manager coordinates the human and physical elements of an

organization to run it smoothly and efficiently. This
coordination is not possible without proper communication.

3. The Basis of Decision Making

Proper communication provides the information to the manager
that is useful for the decision making. No decisions could be
taken in the absence of information. Thus, communication is the
basis of taking right decisions.

4. Increases Managerial Efficiency

The manager conveys the targets and issues instructions and

allocates jobs to the subordinates. All these aspects involve
communication. Thus, communication is essential for the quick
and effective performance of the managers and the entire
organization.

5. Increases Cooperation and Organizational Peace

The two-way communication process promotes co-operation

and mutual understanding amongst the workers and also
between them and the management. This leads to less friction
and thus leads to industrial peace in the factory and efficient
operations.

6. Boosts Morale of the Employees

Good communication helps the workers to adjust to the physical

and social aspect of work. It also improves good human
relations in the industry. An efficient system of communication
enables the management to motivate, influence and satisfy the
subordinates which in turn boosts their morale and keeps them
motivated.

Types of Communication
1. Formal Communication

Formal communications is the one which flows through the

official channels designed in the organizational chart. It may
take place between a superior and a subordinate, a subordinate
and a superior or among the same cadre employees or
managers. These communications can be oral or in writing and
are generally recorded and filed in the office.

Formal communication may be further classified as the Vertical

communication and Horizontal communication.

Vertical Communication

Vertical Communications as the name suggests flows vertically

upwards or downwards through formal channels. Upward
communication refers to the flow of communication from a
subordinate to a superior whereas downward communication
flows from a superior to a subordinate.

Application for grant of leave, submission of a progress report,

request for loans etc. are some of the examples of upward
communication. Sending notice to employees to attend a
meeting, delegating work to the subordinates, informing them
about the company policies, etc. are some examples of
downward communication.

Horizontal Communication

Horizontal or lateral communication takes place between one

division and another. For example, a production manager may
contact finance manager to discuss the delivery of raw material
or its purchase.

Types of communication networks in the formal communication:

 Single chain: In this type of network communications flows

from every superior to his subordinate through a single chain.
 Wheel: In this network, all subordinates under one superior
communicate through him only. They are not allowed to talk
among themselves.
 Circular: In this type of network, the communication moves
in a circle. Each person is able to communicate with his
adjoining two persons only.
 Free flow: In this network, each person can communicate
with any other person freely. There is no restriction.
 Inverted V: In this type of network, a subordinate is allowed
to communicate with his immediate superior as well as his
superior’s superior also. However, in latter case, only
ordained communication takes place.
2. Informal Communication

Any communication that takes place without following the

formal channels of communication is said to be informal
communication. The Informal communication is often referred
to as the ‘grapevine’ as it spreads throughout the organization
and in all directions without any regard to the levels of
authority.
The informal communication spreads rapidly, often gets
distorted and it is very difficult to detect the source of such
communication. It also leads to rumors which are not true.
People’s behavior is often affected by the rumors and informal
discussions which sometimes may hamper work environment.

However, sometimes these channels may be helpful as they

carry information rapidly and, therefore, may be useful to the
manager at times. Informal channels are also used by the
managers to transmit information in order to know the reactions
of his/her subordinates.

Types of Grapevine network:

 Single strand: In this network, each person communicates

with the other in a sequence.
 Gossip network: In this type of network, each person
communicates with all other persons on the non-selective
basis.
 Probability network: In this network, the individual
communicates randomly with other individuals.
 Cluster Network: In this network, the individual
communicates with only those people whom he trusts. Out of
these four types of networks, Cluster network is the most
popular in organizations.

Barriers to Communication
The communication barriers may prevent a communication or
carry incorrect meaning due to which misunderstandings may
be created. Therefore, it is essential for a manager to identify
such barriers and take appropriate measures to overcome them.
The barriers to communication in the organizations can be
broadly grouped as follows:

1. Semantic Barriers

These are concerned with the problems and obstructions in the

process of encoding and decoding of a message into words or
impressions. Normally, such barriers result due to use of wrong
words, faulty translations, different interpretations etc.

For example, a manager has to communicate with workers who

have no knowledge of English language and on the other side,
he is not well conversant with the Hindi language. Here,
language is a barrier to communication as the manager may not
be able to communicate properly with the workers.

2. Psychological Barriers

Emotional or psychological factors also act as barriers to

communication. The state of mind of both sender and receiver
of communication reflects in the effective communication. A
worried person cannot communicate properly and an angry
recipient cannot understand the message properly.

Thus, at the time of communication, both the sender and the

receiver need to be psychologically sound. Also, they should
trust each other. If they do not believe each other, they cannot
understand each other’s message in its original sense.

3. Organizational Barriers

The factors related to organizational structure, rules and

regulations authority relationships, etc. may sometimes act as
barriers to effective communication. In an organization with the
highly centralized pattern, people may not be encouraged to
have free communication. Also, rigid rules and regulations and
cumbersome procedures may also become a hurdle to
communication.

4. Personal Barriers

The personal factors of both sender and receiver may act as a

barrier to effective communication. If a superior thinks that a
particular communication may adversely affect his authority, he
may suppress such communication.

Also, if the superiors do not have confidence in the competency

of their subordinates, they may not ask for their advice. The
subordinates may not be willing to offer useful suggestions in
the absence of any reward or appreciation for a good
suggestion.

Solved Question for You

Q: List the measures to improve communication effectiveness?
Answer: Measures to improve communication effectiveness are
as follows

1. Communication of Clarification of the idea.

2. Communication should be according to the needs of the
receiver.
3. Consulting others before communication.
4. Awareness about the language, tone and body postures and
gestures.
5. Convey information useful to the receiver.
6. Ensure proper feedback.
7. Follow up communications.
8. Be a good listener.