COMMUNICATION

UNIT – 1: COMMUNICATION IN
ORGANIZATION
Nature of communication.
Process, Purpose and levels of
organizational communication.
Verbal and non-verbal communication,
Computer mediated communication,
formal and informal communication.
Individual differences in communication.
Improving communication.
 Meaning of Communication:
Communication can broadly be defined as exchange
of ideas, messages and information between two or
more persons, through a medium, in a manner that
the sender and the receiver understand the
message in the common sense, that is, they
develop common understanding of the message.
The word communication is derived from the Latin
word ‘communicare’, which means to share, impart,
participate, exchange, transmit or to make
common. It emphasises on sharing common
information, ideas and messages. It is not merely
issuing orders and instructions.
• “Communication is the transfer of information from
a sender to a receiver, with the information being
understood by the receiver”. — Koontz and Weihrich
• “Communication is the art of developing and
attaining understanding between people. It is the
process of exchanging information and feelings
between two or more people and it is essential to
effective management.” — Terry and Franklin
• “Communication is the sum of all things one person
does when he wants to create understanding in the
mind of another. It is a bridge of meaning. It involves
a systematic and continuous process of telling,
listening and understanding.” — Allen Louis
 NATURE OF COMMUNICATION:
• Communication has the following features:
•
1. Two-way process:
• Communication is a two-way process of understanding
between two or more persons – sender and receiver. A person
cannot communicate with himself.

• 2. Continuous process

Exchange of ideas and opinion amongst people is an ongoing

process in business and non-business organisations.
Continuous interaction promotes understanding and exchange
of information relevant for decision-making.
 3. Dynamic process
• Communication between sender and receiver takes
different forms and medium depending upon their moods
and behaviour. It is, thus, a dynamic process that keeps
changing in different situations.
4. Pervasive
• Communication is a pervasive activity. It takes place at all
levels (top, middle, low) in all functional areas (production,
finance, personnel, sales) of a business organisation.
5. Two people:
• A minimum of two persons — sender and receiver — must
be present for communication to take place. It may be
between superiors, subordinates and peer group, intra or
inter se.
 6. Exchange
• Communication involves exchange of ideas and
opinions. People interact and develop
understanding for each other.
7. Means of unifying organisational activities:
• Communication unifies internal organisational
environment with its external environment. It
also integrates the human and physical resources
and converts them into organisational output.
 8. Verbal and non-verbal:
• Though words are active carriers of information,
gestures can sometimes be more powerful than
words. Facial expressions, sounds, signs and symbols
are the non-verbal forms of communication.
9. Mutual understanding:
• Communication is effective when sender and receiver
develop mutual understanding of the subject.
Messages conveyed should be understood by the
receiver in the desired sense.
 10. Goal-oriented:
• Communication is goal-oriented. Unless the receiver
and sender know the purpose they intend to achieve
through communication, it has little practical utility.
• 11. Foundation of management:
• Though communication is a directing function, it is
important for other managerial functions also.
Designing plans and organisation structures,
motivating people to accomplish goals and controlling
organisational activities; all require communication
amongst managers at various levels.
 12. A means, not an end:
• Communication is not an end. Effective communication
is a means towards achieving the end, that is, goal
accomplishment. It smoothens managerial operations
by facilitating planning, organising, staffing, directing
and controlling functions.
13. Human activity:
• Since communication makes accomplishment of
organisational goals possible, it is essential that people
understand and like each other. If people do not
understand each others’ viewpoint, there cannot be
effective communication.
 14. Inter-disciplinary:
• Communication is the art of how
communicators use knowledge of different
fields of study like anthropology, psychology
and sociology. Making best use of these
disciplines makes communication effective. It
is, thus, an inter-disciplinary area of
management.
 ROLE OF COMMUNICATION:

• In the business world, managers perform their

tasks and responsibilities through
communication. Communication provides the
basis for effective implementation of plans,
assigning jobs to people, carrying out
directions and activities and facilitates control.
• Management functions can be performed
successfully when managers communicate face-
to-face, telephonically or electronically with
their superiors, peers, subordinates, customers,
suppliers, competitors etc.
• Even when they are not talking, they are busy
reading or writing reports, memos and letters
which are different forms of communication.
• Communication has reduced geographical
distances into storable and confidential forms
and has facilitated a large number of people to
interact with each other.
• It is important that communication should be
effective.
• Effective communication is transfer of information
along with transfer of understanding.
• It means transfer of messages, ideas and
information in a manner that the sender and
receiver understand the subject in the same sense.
• “It is the process of sending a message in such a
way that the message received is as close in
meaning as possible to the message intended.”
Effective communication, thus, takes place when
receiver understands the message in the same
sense as the sender wants to convey.
• Communication is the foundation for human
interaction that develops common
understanding amongst two or more persons.
This promotes common objectives through
coordinated efforts amongst people belonging
to different functional departments.
 Importance of Communication:

1. Basis for planning

2. Motivation to work
3. Job satisfaction
4. Commitment to organisational objectives
5. Coordination
6. Adaptability to external environment
7. Internal functioning of an enterprise
8. Healthy industrial relations
9. Helps in performing managerial roles
• 9. Helps in performing managerial roles:
• According to Henry Mintzberg, managers perform three
major roles – interpersonal, informational and
decisional. Communication helps managers in
performing these roles effectively. In interpersonal
roles, managers interact with superiors, peers and
subordinates; in informational roles they receive and
give information to people inside and outside the
organization and in decisional roles, they take important
decisions and communicate them to organisational
members for their effective implementation.
• 10. Facilitates leadership:
• Effective leaders interact with followers, guide and inspire
them to perform the individual and organisational goals.
Effective communication process facilitates leaders to carry
out the leadership functions.
• 11. Facilitates control:
• Planning is effective if accompanied by an effective control
system. Control is possible when managers assess
subordinates’ performance, correct and prevent deviations
and provide them regular feedback of performance. Control
function largely depends upon communication system of the
organisation. How effectively managers control
organisational activities depends upon how effective is the
communication system.
12. Training and development:
• Imparting training and development facilities to
employees depends upon how well their superiors
communicate with them. Trainers with good
communication skills are better than those who have
poor communication skills.
• 13. Substance to organisational existence:
• Obtaining information to make plans, making members
aware of authority-responsibility structure, position in
the organisational hierarchy, coordinating their activities
is the essence of organisational survival and growth.
This is possible through effective communication.
PROCESS OF COMMUNICATION:
 ELEMENTS IN THE PROCESS…
• 1. Sender:
• Sender is the person who initiates, generates and
sends the message. He represents the source of
message. The communication process begins when
the sender develops an idea or message he wants to
transmit. He must arrange the ideas in a manner
that can be understood by the receiver. A lecturer
delivering a lecture in the classroom is the sender of
the message or a manager addressing his team in a
meeting is sender of the message.
• 2. Message:
• Message is the idea or information that the
sender wants to convey. He may convey it
verbally (by writing or speaking) or non-verbally
(through gestures or body language). Whatever
the form, the message should be clearly formed
so that desired objective is accomplished.
• 3. Encoding:
• Once the sender is clear of what message to transmit, he decides
the code through which the message shall be transmitted. The
message is abstract and intangible and, therefore, has to be
converted into some form (words, gestures, pictures etc.) to make
it meaningful. Encoding means converting the message into
symbols.
• Encoding gives meaning to the message or converts ideas into
codes which can be understood by the receiver. Encoding means
translating the message into words (written or spoken), symbols
or gestures. It may be a combination of the three. The code
should be appropriate to the situation, that is, interpreted by the
receiver in the manner intended.
• 4. Transmission:
• Transmission involves selecting the medium or channel of communication. Once
decided that the message has to be sent in writing, the sender may select the
electronic channel and the medium of e-mail or fax. Short messages can be
transmitted through telephone but lengthy messages can be sent through letters
or circulars.
• Choice of channel depends upon the message to be conveyed, personal biases of
the sender and nature of information. Short messages are generally sent through
telephone. Where drawings, charts and illustrations form part of the message, it
should be sent in writing. Personal biases include sender’s preference for a
particular channel.
• Some senders prefer to communicate in writing, howsoever short the message
may be and, therefore, prefer the written channel of transmission. Nature of
information refers to immediacy and confidentiality of information. Confidential
information where immediate feedback is required is generally transmitted orally.
• 5. Receiver:
• Receiver is the person or a group of persons to whom the
message is conveyed. In case of telephonic conversation, the
sender can send message to one receiver but in case of group
discussions, seminars and conferences, receivers can be more
than one. The message must be designed, encoded and
transmitted in a manner that receiver can understand it
easily. Use of technical words, jargons and complicated
symbols should be avoided. Depending on the channel
selected, receiver may be a listener, viewer or a reader.
• 6. Decoding:
• Decoding means giving meaningful interpretation to the message. On
receiving the message, the receiver translates the symbols into meaningful
information to the best of his ability. Communication is effective if receiver
understands the message in the same way as intended by the sender. The
receiver must, therefore, be familiar with the codes and symbols used by the
sender.
• 7. Noise:
• It represents the disturbing factor in the process of communication. It
interferes with effective communication and reduces clarity of the message.
The message may be interpreted differently than intended by the sender.
Conversing near a machine making sounds, disturbance in telephone line,
physical ailment or mental distress of sender or receiver, psychological
barriers (degree of trust, fear, perception etc.) are the common forms of noise
that obstruct the quality of message transmitted from sender to the receiver.
• 8. Feedback:
• Feedback is receiver’s response to sender’s message. The
receiver communicates his reaction to the sender through
words, symbols or gestures. It is the reversal of communication
process where receiver becomes the sender and sender
becomes the receiver. Unless the receiver responds to the
message, communication process is incomplete.
• Feedback helps the sender to transform his message, if
needed. It also allows the receiver to clear doubts on the
message, ask questions to build his confidence and enables the
sender to know efficiency of the message. Feedback makes the
communication process complete.
• Feedback increases efficiency and applicability of
communication.
• Feedback plays important role in two-way
communication. In one-way communication, sender
communicates with the receiver without getting any
feedback but in two-way communication, receiver
provides feedback to the sender. Though one-way
communication takes less time and is more orderly
(it avoids noise and chaos), feedback in two-way
communication makes it more accurate and precise.
• Feedback offers the following benefits:
• 1. It allows senders to improve communication with the receiver.
• 2. It allows receiver to clarify doubts on the message and,
therefore, perform better.
• 3. Allowing receivers to ask questions builds confidence and they
are more confident of their performance.
• 4. It enables the sender to know efficiency of his message; whether
or not the receiver has understood the message in its right
meaning. Feedback makes the communication process complete.
• 5. In response to receiver’s understanding and suggestions on the
message, sender can adjust the subsequent messages.
 Channels of Communication:

• Communication channel is the path through

which information flows from sender to
receiver.
• Two main communication channels are:
• I. Formal communication channel and
• II. Informal communication channel.
• I. Formal Communication Channel:
• It is the official channel of communication controlled by
managers in their official capacity. Official information and
decisions follow this channel of communication. This channel is
officially recognised by the organisation structure, follows the
formal chain of command for passing information, suggestions,
orders etc. and defines authority-responsibility relationships
amongst members of the organisation.
• It is a deliberately created path of communication. Information
flows vertically, horizontally and diagonally along this path of
communication ‘through proper channel’, that is, through
various levels in the organisational hierarchy.
 VERTICAL COMMUNICATION
• Vertical communication represents flow of information from
one level to the other in the organsational hierarchy. It can
be downward and upward. In downward vertical
communication, information flows from top to middle-level
managers, lower-level managers, supervisors and workers.
• The information is related to goals, policies, directions,
instructions etc. In upward vertical communication,
information flows from lower-levels to higher levels. It
relates to reports about subordinates’ work, achievements
and progress, work-related problems, suggestions to
improve the style of working etc.
 HORIZONTAL COMMUNICATION
• Horizontal communication flows amongst people
at the same level. It does not follow the official
chain of command. When manager of marketing
department discusses issues related to production
and sale of goods, with the manager of production
department, it is said to be horizontal
communication. Diagonal communication is similar
to horizontal communication that takes place
amongst people of different departments at
different levels rather than the same level.
 Merits of formal communication
• Formal communication channel has the following merits:
• 1. Authentic information:
• It is an officially recognised path of communication and,
therefore, whatever information flows in whatever
direction (vertical, horizontal or lateral), it is presumed to
be authentic.
• 2. Large geographical area:
• Large organisations have branches spread over wide
geographical areas. Formal communication channels
spread information over wide geographical areas.
• 3. Justify organisational hierarchy:
• Who is to receive information from whom, where, when and to what
extent is clearly specified in the formal channels.
• 4. Coordination:
• Formal channels coordinate the work of other functional areas and
facilitate smooth functioning of the organisation.
• 5. Control:
• It helps in receiving right information at the right time and facilitates
control of organisational activities.
• 6. Filtering of information:
• Only important information which top managers must know flows to
them. They do not have to, therefore, scan every information, relevant
and irrelevant. This saves time which can be spent on strategic issues.
 Limitations of formal communication:
• Formal communication channel suffers from the
following limitations:
• 1. Information distortion:
• When information passes through a number of levels,
some of the information is lost in transit and gets filled by
some unintended information. There may be, thus,
information distortion. In some cases, information up to
eighty per cent gets lost on the way.
• 2. Time-consuming:
• As information passes through a number of levels, it is a
time-consuming channel of communication.
• 3. Expensive:
• It is an expensive channel of communication as it requires
lot of paper and administrative work.
• 4. Lack of personal touch:
• People at the top and bottom communicate with each
other through formal channels only. They do not get to talk
to each other personally. Lack of personal touch restricts
free flow of information in the organisation. Formal
communication channel cannot be avoided. Efforts should
be made to reduce its limitations and make it an effective
channel of communication.
Informal Communication Channel:
• It is an unofficial channel of communication that
arises out of socio-psychological needs of people
to interact with each other. It is an important and
spontaneous outgrowth of formal channels of
communication. It emphasises more on the person
than position. It arises when people of common
nationality, caste or religion interact with each
other or when they share a car pool or meet each
other regularly in canteens, libraries, bus stands
etc.
• Grapevine communication:
• It is an informal communication network where information flows
freely throughout the organisation. Grapevine is the most common
form of informal communication. It connects people in the
organisation and transmits information in every direction: vertical,
horizontal and diagonal.
• It cuts across formal positions and facilitates social, personal and
psychological interaction amongst people. Though it travels faster
than formal communication channel, it also carries gossips and
rumours with it. Grapevine communication normally occurs when
some change is introduced in organisational policies (change in
office, automation etc.) and people are located close to each other
(as individuals or groups) in order to discuss matters.
Features of grapevine communication:
• Grapevine communication has the following features:
• 1. It connects almost everybody in the organisation.
• 2. It flows in every direction – vertical, horizontal and diagonal.
• 3. It does not follow the official chain of command.
• 4. It is a fast channel of communication.
• 5. It generally occurs at the work site, though it may occur outside
the organisation also.
• 6. It arises out of social and personal interaction amongst people in
the organisation.
• 7. It is based on people than task.
• 8. It generally occurs orally.
• 9. It occurs in various forms known as communication chains.
 Informal or grapevine communication
channel has the following merits:
• 1. Speed:
• 2. Supports formal communication channel:
• 3. Nature of information:
• 4. Feedback:
• 5. Human relations:
• 6. Socio-psychological needs:
Limitations of grapevine communication:

• 1. Information distortion:
• 2. Lack of authenticity:
• 3. Fixing responsibility:
• 4. Incomplete information:
• 5. Lack of evidence:
 Components of Communication

Verbal Communication

Vocal communication

Non-verbal communication
2. NONVERBAL COMMUNICATION
• Your body language, eye contact, hand gestures, and
tone all color the message you are trying to convey. A
relaxed, open stance and a friendly tone will make you
appear approachable, and will encourage others to
speak openly with you.
• Eye contact is also important; you want to look the
person in the eye to demonstrate that you are focused
on the person and the conversation (however, be sure
not to stare at the person, which can make him or her
uncomfortable).
• Also pay attention to other people's nonverbal signals
while you are talking.
INDIVIDUAL DIFFERENCES