The Importance of Effective Communication in Business

Internal Communication

External Communication
1. 2.

Business has grown in size Business activity has become extremely complex Effective communication promotes a spirit of understanding and cooperation
2.

1.

Government agency and Departments Distributers ,retailers, Individual, Customers Etc

3.

Internal Communication
Internal

communication is communication within the organization It is important because : (a) Business has grown in size (b) it promote understanding and cooperation among members

External Communication External Communication is communication with external agencies both government and private it is an essential feature of all modern business

 Communicatio

n Skill a Job requirement

Important factor for promotion

Possessing communication skills an important qualification at the time of both appointment and promotion

Objectives of Communication

Information
1.
a. b. c. d. e. f.

External Information

Information about its products Information about the availability of credit Information about the government rules and regulation Information about the availability of raw materials Information about the advertising media Information about the latest development in the fields of science and technology

Internal Information

1. Information of job assignments and procedures governing them 2. Information on status and decision making power 3. General information on the polices and activities of the organization

Information for planning

Sources of information

1. Old Files 2. Observation 3. Mass Media Communication 4. Library research 5. Chambers of commerce 6. Meeting Seminars and conferences 7. Personal Interviews 8. Questionnaires 9. Trait fair and exhibitions 10.Current electronic communication media in particular internet computer network

 Executives need information to

plan and organise; employee need it to execute their job satisfactorily Information can be collected from a variety of sources Information must be from a reliable source accurate, complete, recent.

The kind of Information that should be accepted

Executives need information to plan and organise; employees need it to execute their job satisfactorily. Information can be collected from a variety of sources. Information must be from a reliable source, accurate, complete, recent.

Advice

Importance

of advise

Advise flows horizontally downwards How to make advise Effective

 Effective advice is both man-oriented and workoriented, does not make the worker feel inferior, is given in the workers interest, promotes understanding, can become a two-way channel of communication

 Counselling is impersonal and professional, is often sought eagerly, Often means psychological handling.

Order

Types of order

Written and oral orders Generals and specific orders Procedure and operational orders Mandatory and discretionary orders

Characterstics of effective orders

It must be clear and complete Its execution should be possible It should be given in a friendly way

Steps in the order giving operation

Planning

Preparing the order receiver Presenting the order Verification of reception action Follow up appraisal

 Order is a directive to a subordinate to do something in a particular way. Order move downwards Order may be Written or oral, general or specific, procedural or operational, mandatory or discretionary. Order should be clear and complete, capable of being executed, given in a friendly tone Instruction is order with guidance

Suggestion
Suggestion are welcome, for it is not obligatory to accept them Suggestion can be voluntary and anonymous; submitted through suggestion boxes Employees should be encouraged to give suggestions

1.

2.

3.

 Suggestion are welcome, for it is not obligatory to accept them, Suggestions can be voluntary and anonymous; submitted through suggestion boxes. Employee should be encouraged to give suggestions.

Persuation
The art of Persuasion
1. 2. 3.

You can persuade others if You do not impose, You are not rigid , are prepared to meet half way You can look at the situation from the other persons angle also.

4.

 You can persuade other if you car yourself convinced, you do not impose, you are not rigid, are prepared to meet half-way, you can look at the situation from the other persons angle also.

The art of persuasion consist of four important steps:

1. 2. 3. 4.

Analysing the situation Preparing the receiver Delivering the message Prompting action

Education

1. 2. 3.

Education for the management Education for the employees Education for the outside public

Warning
Warning

can be general or specific

Specific warning should be administered in private and after thorough investigation The aim of warning should be the organization's betterment

Motivation

Motivation 1. 2.

can be achieved through:

Monetary incentives Making the workers participate in the decision making Making achievement goals very specific Giving security and a congenial work environment

3. 4.

Media Of Communication
1. 2. 3. 4. 5.

Written Communication Oral Communication Visual Communication Audio- Visual Communication Computer-Based Communication

Written Communication
Merits
1. 2. 3. 4. 5. 6. 7. 8.

It is accurate and precise It can be repeatedly referred to It is a permanent record It is a legal document It facilitates the assignation of responsibilities It has a wide access It can reach large number of people simultaneously It helps to fix the responsibility

Written Communication
Limitations
1. 2.

It is time consuming It is Expensive not in terms of postage but of the time of so many people Quick clarification not possible

3.

Oral Communication
Merits
1. 2.

It saves time In most of the cases it saves money (e.g.; when it is within the organization) Speech is a more powerful means of persuasion and control More effective with groups Can be informal Convey shades of meaning Immediate feedback Immediate clarification

3.

4. 5. 6. 7. 8.

Oral Communication
Limitations 1. Not possible for distant people in the absence of mechanical devices 2. Unsuitable for lengthy message 3. Messages cannot be retained for long time 4. No legal validity 5. Greater chances of misunderstanding 6. Not easy to fix responsibility in case of misunderstanding

Essentials of Oral Communication

Clear pronunciation Brevity Conviction Precision Logical sequence Appropriate word choice Avoiding hackneyed phrases and cliches Natural Voice finding the right register

A person engaged in oral communication must remember seven cs.

Candid

Clear Complete Concise Concrete Correct Courteous

Face-to-Face Communication
Merits
1.

Facial expressions and gestures help to communicate better Very suitable for discussion

2.

Face-to-Face Communication
Limitations 1.Difficult to practice in large sized organizations 2.Not effective in large gatherings 3.Ineffective if the listener is not attentive It become more effective if accompanied with appropriate body language

Visual Communication
Suitable only to communicate elementary and simple ideas ; can be effective if used in combination with other media

Audio- Visual Communication

Computer-Based Communication
Advantage of Computer technology
1. 2. 3. 4.

The quickest means of communication Space no longer a barrier to communication Video conferencing can replace personal meetings Better means of keeping permanent record of valuable and bulky data World wide web as a publishing platform

5.

Limitations of Computer technology

Uncertain legal validity Fear of undesirable leakage The virus malady

Fax, voice mail, E-mail, cellular phones, telephone-answering machines, videoconferencing, etc., come under computer-based communication Advantages - the quickest means of communication, - the barrier of space conquered; - video-conferencing can replace personal meeting - storage and retrieval of permanent record has become easier; - world- wide web better customer service; better dissemination of information.

Limitations - uncertain legal validity; - fear of undesirable leakage; - the virus malady

Silence
Silence can convey very effectively such responses as disapproval, anger and indifference

Types of Communication

Downward Communication
Downward communication flows from superior to subordinate staff Its objectives are;
(a) (b) (c) (d)

To give directives about some job To explain policies and procedures To convey assessment of performance To explain the rationale of job

Its Limitation are

Under communication or over communication in case of long line of communication there may be - delay, - loss of information, - distortion, - resentment by subordinate staff

To make it effective;
Manager should be adequately informed Managers should be clear about how much to communicate Some authority should be delegated to lower level to shorten the line of communication Information should be passed on to the correct person

Upward Communication
Upward Communication moves from the subordinate staff to the superiors Its importance is:

Provides feedback to the superiors Releases the pent-up emotions of the subordinate staff Provides the superiors with useful suggestions Makes the introduction of new schemes easier Promotes harmony

Its channels are:

Superior keep an open door Complaints and suggestion boxes Social gathering Correspondence Reports Counseling

Its limitations are

Employees are reluctant to express themselves Employees fear that their criticism may be interpreted as a sign of their personal weakness Great possibility of distortion Bypassed superiors feel insulted

2.

3. 4.

To make it effective
1.

Superiors should take initiative to get close to the subordinate staff Keeping the line of communication short Prompt redressal of legitimate grievances

2.

3.

Horizontal Communication

Horizontal communication flows between people at the same level It is important for promoting understanding and coordination among various people or departments It is carried on through: face to face discussion, telephonic talk, periodic talk & memos

Grapevine

Grapevine is an informal channel of communication Primarily a channel of horizontal communication it can flow even vertical and diagonally

Importance
Emotional

relief

Harmony and cohesivenessin the organization Supplement to other channels A fast channels Provides feedbacks

It is of four types - Single strand; flows like a chain - gossip; one person tells everybody else - probability (random); information may move from anybody to anybody - cluster ; moves through selected groups

Demerits
Distortion May

of information

transmit incomplete information

Travels with destructive swiftness To use effectively the manager should

(a)Key an eye on rumour mongers (b)use it primarily for feedback (c)contradict rumors promptly (d)involve the workers in the decision making process

Consensus
Consensus is the process of arriving at agreement through consultation Consensus is not unanimity, but dissent is not expressed in the largest interest

Advantages Consensus decision easy to accept Promotes harmony check conflicts and splits Disadvantages Dissent is often stifled in the name of consensus Degenerate into a process of mutual accommodation May project a false image of management