COMMUNICATION

Communication means sharing of ideas in common.

The term communication is the transfer of message from one individual to another.

Effective communication requires understandability of the message by the receiver. It is a two-

way process.

According to Keith Davis, "Communication is the process of passing information and

understanding from one person to another".

Newman & Summer defines, "Communication means an exchange of facts, ideas, opinion,
information or emotions by two or more persons".

Communication is the process through which two or more persons come to exchange ideas and
understanding among themselves.

Importance of Communication

1. Acts as a basis for decision-making: 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: 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. Promotes co-operation 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 working condition and work environment. An efficient and
effective communication system builds human relations.

4. Increases managerial efficiency: Management conveys ideas, directions, goals, targets, and
instructions to subordinates. In the same way, the management allocates jobs and responsibilities.
All these are possible only with the help of effective communication. So for successful
management, the executive should possess qualitative communication skill.

5. Employees motivation and morale: An efficient communication system will enable

management to change their attitude to motivate and satisfy subordinates. Communication is the
means by which employees can bring their suggestions, difficulties and grievances to the notice
of the management. Good communication helps the employees in their adjustments with the
physical and social aspect of work.

6. Emphasis on effective leadership: Effective leadership requires an efficient system of

communication in the organization. A good leader can direct his subordinates with the help of a
good communication system. It brings both the leader and the subordinates in close contact to
each other and it removes misunderstanding.

7. Smooth functioning of an organization: All organizational interactions depend upon

communication. It is the function of the management to co-ordinate human and physical
resources of the organization to achieve objectives. It is only possible through the process of
communication. An effective communication system helps smooth function of an organization.

8. Contact with 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 an indispensable means of developing a favourable public opinion
about the organisation.

Types of Communication

✓ According to organization structure:

Formal Communication

Associated with formal organization structure

Communication through official channels of organization structure

Deliberately created by officially prescribed path

Deliberately attempt to make communication in order, smooth flow, accurate and timely as
required

Also called channel of command

Informal Communication

No formal channels

Also known as Grape wine

Organizational and personal matters are discussed

Information may be conveyed by a simple glance, gesture, nod, smile or mere silence

Useful to share information which cannot be shared through official channels

 ✓ According to Direction

Downward Communication

Communication flows from superior to subordinates

Found commonly in authoritarian atmosphere

Includes – face to face as well as written memos, orders, job descriptions, etc.

Upward communication

Reverse of downward communication

Flows from subordinate position to a superior position

Horizontal Communication (Lateral Communication)

Communication between parties at the same level

Communication between departmental heads

Helps in creating cooperation and coordination between different departments or divisions

✓ According to way of expression

Oral Communication

Transmission with the help of words

Both parties exchange ideas through oral words either in face-to-face communication or through
telephone, internet etc.

Saves money and time

Can understand the reaction of the communicatee directly

Written communication

Includes written words, graphs, charts, etc.

Used by large organizations

Letters, memorandum and instructions, house bulletins, suggestion box scheme and feedback

Can be stored as record for future reference

Communication Process

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 feedback from the recipient to
the sender on how well the message is understood by him.

1.Sender / Encoder - Sender / Encoder is a person who sends the message. A sender makes use
of symbols (words or graphic or visual aids) to convey the message and produce the required
response. Sender may be 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.

2. Message - Message is a key idea that the sender wants to communicate. It is a sign that draw
out the response of recipient. 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.

4.Recipient / Decoder - Recipient / Decoder is a person for whom the message Is

intended/aimed / targeted. The receiver must be able to decode the message, which means
mentally processing the message into understanding. If you can't decode, the message fails. The
degree to which the decoder understands the message is dependent upon various factors such as
knowledge of recipient, their responsiveness to the message, and the reliance of encoder on
decoder.

5. Feedback - Feedback is the main component of communication process as it permits the

sender to analyze the efficacy of the message. It helps the sender in confirming the correct
interpretation of message by the decoder. Feedback may be verbal (through words) or non-verbal
(in form of smiles, sighs, etc.). It may take written form also in form of memos, reports, etc.
Barriers of Communication

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. Information 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 misinterpreted 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 their response,
and selectivity is not communication-friendly.

3. Semantic Problems: Semantics or code noise 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 meaning of
the message in the mind of the sender is same as in that of the 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 receiver.
Much, therefore, depends on how the sender encodes his message. The sender has to take care
that the receiver does not misinterpret his message, and gets the intended meaning.

4. Poor Listening: Poor listening may lead to serious communication problems. 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: Filtering means that the sender of a message manipulates information in such a way
that it will be seen more favourable by the receiver. 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 so as to get maximum benefits for themselves. They hold 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 occurring 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 category of words, 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.
7. Socio-psychological Barriers: The attitudes and opinions, place in society and status-
consciousness arising from one's position in the hierarchical structure of the organisation, one's
relations with peers, seniors, juniors and 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 of communication or miscommunication. 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 decision-making. In the same way one's family background formulates one's attitude
and communication skills.

8. Emotions: Emotions play a very important role in our life. Both encoding and decoding of
messages are influenced 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.

9. Complexity in Organizational Structure: Greater the hierarchy in an organization (I.e. more

the number of managerial levels), more is the chances of communication getting destroyed. Only
the people at the top level can see the overall picture while the people at low level just have
knowledge about their own area and a little knowledge about other areas.

10. Poor retention: Human memory cannot function beyond a limit. One cannot always retain
what is being told specially if he is not interested or not attentive. This leads to communication
breakdown.

11. Loss by Transmission: Communication often suffers or gets diluted when messages pass on
from person to person in a series of transmissions. They get diluted on the way. Special care has
to be taken that the intended message reaches the person concerned

12. Time Pressures: 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 communication are shortened, or messages are partially given, i.e., not
completely transferred. Thus, sufficient time should be given for effective communication.

Steps 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 written and spoken language. There should be proper
Induction program so that the policies of the company are clear to all the employees. There
should be proper trainings 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: Attentive and careful listening is essential. There is a difference between
"listening" and "hearing". Active listening means hearing with proper understanding of the
message that is being heard. By asking questions the speaker can ensure whether his/her message
is understood or not by the receiver in the same terms as intended by the speaker.

5. Emotional State: During communication one should make effective use of body language.
He/she should not show their emotions while communication as the receiver might
misunderstand the message being delivered.

6.Simple Organizational Structure: The organizational structure should not be complex. The
number of hierarchical levels should be optimum. There should be an ideal span of control
within the organization. Simpler the organizational structure, more effective will be the
communication.

7. Avoid Information Overload: The managers should know how to prioritize their work. They
should not overload themselves with the work. They should spend quality time with their
subordinates and should listen to their problems and feedbacks actively.

8. Give Constructive Feedback: Avoid giving negative feedback. The contents of the feedback
might be negative, but it should be delivered constructively. Constructive feedback will lead to
effective communication between the superior. and subordinate.

9. Proper Media Selection: The managers should properly select the medium of
communication. Simple messages should be conveyed orally, like: face to face interaction or
meetings. Use of written means of communication should be encouraged for delivering complex
messages. For significant messages, reminders can be given by using written means of
communication such as: Memos, Notices etc.

10. Flexibility in meeting the targets: For effective communication in an organization the
managers should ensure that the individuals are meeting their targets timely without skipping the
formal channels of communication. There should not be much pressure on employees to meet
their targets.
 CONTROL

George. R.Terry has defined control as follows. "Controlling is determining what is being
accomplished, that is evaluating the performance, and if necessary, applying corrected measures
so that the performance takes place according to plan".

In the words of Koontz and O' Dennel Managerial function of controlling is the measurement
and correction of performance in order to make sure that enterprise objectives and plans devised
to attain them are accomplished. Controlling is thus the function of every manager from
president to supervisor.

According to Henry Fayol "Control consists in verifying whether everything occurs In

conformity with the plan adopted, the instructions issued and the principles established".

Control is a basic managerial function. It is a continuous process of evaluating actual

performance with pre-determined one. Variations are detected. Corrective actions are taken to
prevent them in future.

Importance of Control

1) Effective execution: An organisation has different objectives to achieve its goals. Plans are
prepared and implemented to achieve the goals. The actual is compared with plan, and deviations
are corrected.

2) Helps delegation of authority: To become control effective, proper delegation of authority

should be done. So, delegation of authority at lower level is possible.

3) Facilitates decentralization: Under decentralization, authority is dispersed at all levels. Control

of all levels is a necessity for the success of decentralization.

4) Facilitates Co-ordination: Control helps to integrate the activities of various departments of

the enterprise.

5) Basis for future action: Control helps to correct mistakes. So it reduces the chances of
committing mistakes in future.

6) Regulates the operations: Control regulates the operation to ensure the achievement of
objectives.

7) Points out weakness of management: There will be number of problems which cannot be
traced out through planning, organizing and staffing. It can be traced out through the control
process.

8) Efficiency evaluation: The performance of each individual is to be evaluated on the basis of

targets fixed for him. So, his performance and efficiency can be measured and evaluated.
9) Pressure for better performance: The performance of individual is assessed and evaluated. A
person is likely to perform better if he knows that his performance is evaluated. So, control puts
a psychological pressure on individuals for better performance.

Steps in Control or Process of Control

1) Establishing standards

2) Measurement of performance

3) Appraisal of performance

4) Determining the reasons for deviation

5) Feed back

Control Techniques

It can be classified into two. Traditional methods and modern methods.

Traditional methods - budgetary control, cost control, cost accounting, financial ratios etc.
Modern methods - PERT. CPM, quality control, and Information control

Budgetary Control

It is a widely used control technique. It involves setting target for production, sale and other
activities of business, comparing actual performance with the budget figures and taking
corrective actions in case of deviations.

The system of budgetary control involves the use of budgets and budgetary reports throughout
the period to coordinate, evaluate and control day to day operations in accordance with the goals
specified in the budget.

George R Terry has described the budget as, an estimate of future needs, arranged according to
an orderly basis, covering some or all the activities of an enterprise for a definite period of time.'

He defines budgetary control as 'a process of finding out what is being done and comparing
actual results with the corresponding budget data in order to accomplishments or to remedy
differences by either adjusting budget data or correcting the cause of differences."

Budgeting is an aid to planning and control. It is a means of coordination and a guide to action
while budgetary control is a device of affecting managerial and accounting control.

Budgetary control aims at controlling the procedure adopted for attaining the standards and goal
set by the budget.
Cost control

Cost control is a process of limiting the expenditure either on production or distribution so that
the goods may be made available to the ultimate consumer at a cheaper rate. So it is an effective
instrument to reduce the cost at all phases of operations.

The technique of cost control involves the determination of standards in respect of each item of
cost, ascertainment of actual costs, and detection of variations of actual with standards, analysis
of the variances, and taking necessary action to ensure that the actual costs conform to standard
cost in future.

As suitable cost control system helps in maintaining expected return on capital employed,
increasing productivity of machine, men and other resources, fixing a reasonable price, and
increasing prosperity and stability in the organisation.

Cost Accounting

Cost accounting is the formal mechanism by means of which costs of products or services are
ascertained and controlled. So, it is used as control technique. It refers to those methods of
accounting by the use of which the actual cost of particular job, section, process of service and
the details of how much cost has been arrived at are furnished accurately and promptly to the
management.

Break even analysis

It is also known as cost volume profit analysis and it is used as a one of the techniques of cost
control. It establishes the relationship of costs, volume and profits. These factors are
interconnected and are depended on one another. It reveals the break-even point. It is the point at
which the firms have no profit or loss.

Standard costing

Standard cost is a predetermined cost. Standard costing is the preparation of the standard costs
and applying them to measure the variations from standard costs and analyzing the causes of
variations with a view to maintain maximum efficiency in production. Standard costs serve as a
yardstick against which actual costs are compared to know the reasons of inefficiencies.
Measures can be taken to correct the deviations.

Financial controls

The management wants to take decisions related to source and utilization of finance. They want
to take decision related to raising funds. That is whether it is raised by issuing shares and
debentures or from the financial Institutions. A number of control techniques are used for
controlling financial activities. Some of them are given below.
1. Comparative financial statements

2. Financial ratios

Comparative financial statements

The overall financial control can be exercised by making use of comparative financial statements
such as comparative balance sheet and comparative profit and loss account. Comparative
financial statements enable to compare the financial position of two consecutive years. It can be
used to compare the relationship between items which results in an in-depth study of financial
position and operative results. In other words, it helps to judge the profitability and financial
soundness of the concern.

The comparative balance sheet indicates whether there is increase or decrease in various assets
and liabilities and shareholders’ equity or capital of the concern. With the help of the
comparative figures management is enabling to find out which items are contributing for
enhancing or decreasing financial stability.

The comparative income statement indicates a comparison between sales, expenditure, and
revenue of the concern. It enables the management to identify the problems and take necessary
steps to rectify it.

Financial ratio analysis

Ratio analysis helps the financial authorities to evaluate the financial position and performance
of the business.

Financial ratios indicate the relationships which are expressed mathematically. The primary
objective of ratio analysis is to regulate and control sales and costs.

The financial ratios are useful for financial control because they provide a measurement of
financial condition of an organisation.

It helps management to compare the performance and efficiency of the same over the years and
can also compare the performance and efficiency of different firms.

MODERN METHODS

Management Audit

Management audit has important significance for evaluating the overall performance of the
organisation. The assessment is done by means of comprehensive examination of the
organisation structure, its plan and policies, methods of operation and control and its use of
physical facilities and human resource. It consists of having a close watch on all functions of the
enterprise.
It is used as a measure of control for improving performance, eliminating inefficiencies and
increasing profits. It is expected to assist the management for the efficient discharge of their
responsibilities by suggesting creative course of actions. It facilitates a comparative study of
actual performance with pre-determined targets. It is an excellent tool for controlling and
ascertaining the efficiency of the management.

Programme Evaluation and Review Technique (PERT)

PERT is a systematic technique with which the manager can represent the components
graphically in order to give him a total view of the situation from the start to finish. It is a
graphical representation of the composite activities of an operation. It is primarily designed for
use in complex projects in which it is difficult to keep track of progress in all areas, and it
provides timely information so that immediate evaluation and review of the progress made so far
is possible which results in corrective action.

Critical Path Method (CPM)

This technique was developed by Du Pont to reduce time for periodic maintenance. Critical path
method indicates the minimum time in which a project can be completed. assuming that the
activities take their estimated durations. CPM involves a graphical portrayal of the
interrelationship among the elements of a project and an arithmetic procedure which identified
the relative importance of each element in the overall schedule.

Information control

Information control is required to ensure the flow of right information to right persons. Managers
get information from various sources. They take decisions from the gathered information. The
information passes from organisation to customers and others. In the same way information
passes from outsider to management, passes from lower to top and vice versa. Big organisation
installs computers and other transmission equipments for receiving quick information and
processing and analyzing them. It is known as management information system which
information is available to managers at their finger point to take quick decisions.

Quality Control Techniques

It is an industrial management technique or group technique by means of which product of

uniform quality are manufactured. Quality control is an integral and permanent part of
management control. The quality control techniques involves:

1. Inspection: it involves the checking of the products to see that the products are standardized
one.

2. Statistical quality control: It is the procedure for the control of the quality of the products by
the application of the theory of probability to the results of examination of samples.
 DIRECTION and COORDINATION

Direction is concerned with directing the human efforts towards the achievement of
organisational goals.

It begins after the functions of planning, organising and staffing function.

In simple words directing mean issuing directives, orders, instructions and commands. It also
means guiding and overseeing. In management directing is the process of guiding the
subordinates towards achieving the enterprise goals.

SUPERVISION

Supervision means control and direction of the subordinates' activities. It is an important part of
direction. Supervision is the function of observing the subordinates at work to see that they are
working according to plans and policies of the organization and keeping the time schedule and to
help them in solving their work problems.

According to RC Davis, "it is the function of assuring that the works being done in accordance
with the plan and instruction".

So, the effective supervision comprises giving intelligent and precise direction. providing advice
and counsel in improving their know how and skill, motivating the subordinates to reach
company goals, coaching and training them.

CO-ORDINATION

Henry Fayol considers co-ordination is a function of management. Modern authors' view that co-
ordination is the essence of management.

According to Koontz O' Donnel "co-ordination is the essence of management for the
achievement of harmony of individual efforts toward the accomplishment of group goals,"

Mooney and Ralley define "Co-ordination is the achievement of orderly group efforts and unity
of action in the pursuit of a common purpose".

IMPORTANCE OF COORDINATION

1. Unity of action: An organisation has various resources, techniques, activities etc. All these
must be coordinated to bring unity through unity in action.

2. Increase in efficiency and economy: Coordination brings efficiency because it is an effort of

all organizational members. It also helps to maintain good relation among all levels of
management.
3. Development of personnel: Coordination helps to obtain information about job, qualities of a
job holder which helps to analyze about the potentialities of the job holder and improve
coordination system

4. Specialization: If coordination is absent in an organization then the activities can't be moved in

specialized areas. Therefore, it helps in specialization.

5. Survival of the organization: Coordination helps to harmonize the work resources and physical
facilities. When these activities are not harmonized the organization cannot achieve the goal and
it can't survive in the society

6. Accomplishment of objectives: Coordination of the employees, their task and available

resources will enhance their production and it helps to accomplish the objectives of the
organization.

7. Basis of managerial function: All managerial functions such as planning. organizing, directing,
controlling etc. can't be conducted effectively without coordination.

8. Differential perception: Different people have different perceptions. If all people are
coordinated effectively then their effort and power can be concentrated to achieve organizational
goals.

TECHNIQUES OF COORDINATION

1. Sound Planning: Coordination facilitates sound planning in the organization. The plan,
policies, and comprehensive programs prefer coordination of activities and individuals. Standard
procedures and rules create uniformity in repetitive operations. Thus, coordination is regarded as
an essential element for sound planning

2. Well defined goals: - The first means or techniques of coordination are well defined goals.
The goals of the organization should be clear and well defined. Each individual in the
organization should understand the overall objectives of the organisation. If the goals are not
well defined the coordination may not be effective.

3. Sound organization structure: - Coordination is the soul of management. Coordination is not

possible without a sound organization structure. The authority and responsibility for each and
every position and employees should be clearly defined.

4. Effective communication: -Coordination helps in creating proper understanding among

persons. Without effective communication, proper coordination may not be successful. The
ideas, opinions should be interchanged freely. It is only through effective communication that
even individual understand his/her limitations, positions and responsibility in the organization.
Effective communication helps coordination. Therefore, it is also an important means of
coordination.
5. Proper leadership: - Proper leadership leads the subordinates efficiently and capably. A good
managerial leader uses the motivational tools to coordinate the employees with effective
communication system. In short, coordination is made possible through proper leadership.

6. Proper supervision:- Supervisors coordinate the subordinates and their activities. Top level
management cannot coordinate all employees. In short, proper supervision helps effective
coordination.

7. Better plans and policies: Coordination is made according to plans and policies of the
organization. When the plans and policies are not better, coordination is not effective in the
organization.

8. Cooperation: Without cooperation, coordination may not succeed because coordination is

related to employees and their activities. When they are not cooperative, coordination may not be
made easy. So, cooperation is essential in the organization.

9. Staff Meetings or Conferences: The Meeting and conference provided to the staffs is a
platform for discussion and solution of various problems faced by the departments. Staff
meetings and conferences may be highly effective in the promotion of coordination. It helps to
learn new things. It provides the subordinates an opportunity to bring up the problems.

10. Group decision: - The group decision is a decision in which all members of the organization
are participated to make decisions. The ideas and feelings are mixed into the decision and
coordination may succeed.

11. Formation of Committees: A committee is a group of persons entrusted with functions

collectively as a group. The decisions of committee are easy to be implemented as all who are
represented are bound to follow committee decisions. It promotes coordination through better
and free interchange of ideas, feelings. and opinions.

12. Incentives: Incentives refer to something that encourage someone to do something. In the
coordination, incentives may be used to rebate the interest and to reduce conflicts. For instance,
profit helps in promoting team spirit and cooperation between employers and workers.