Business

Communication
BSP 150
Learning Outcomes
At the end of this lesson learners should be able to :
 Define effective communication in an organisation and its
function
 Understand the communication process and the key elements in
the communication process
 Differentiate between internal and external communication
 The direction flow of communication and the barriers to
communication
COMMUNICATION

 Communication is an exchange of facts, ideas, opinions or emotions by

two or more persons.
 It is a two way process that starts with sending a message by the sender
to the receiver and is completed with receiving feedback from the
receiver of the message. Communication is more than just exchanging
information.
 Effective communication occurs when all the parties (sender and
receiver) in the communication, assign similar meanings to the message
and listen carefully to what all has been said and make the sender feel
heard and understood.
 In an organisation communication is said to be effective if contributes
the achievement of goals.
Functions of communication

 Decision making
 To express emotions
 To activate motivation
 To inform
 Maintain internal and external relationships
 To provide feedback on performance
Communication Process
Key elements in the
communication process
 A sender – the initiator of the message (person, group or organisation that
has a message to share with another person or group of persons)
 Encoding – translating the message into a language, code, sign or gesture
that the intended receiver of the message is likely to understand.
 Message- what is communicated
 The channel- the medium the message travels through ( it is a means of
carrying an encoded message from the source to the receiver) – when
selecting the channel of communication, the sender should consider the
following factors:
 The intended purpose of the message
 The number of receivers
 The characteristics of receivers
Key elements in the
communication process
 Possible media include, telephone calls, memos, letters, computers,
bulletin boards, photographs, meetings, publications, advertising on
television, and radio etc.
 Two types of channels i.e.
 Formal channels –are established by the organisation and transmit
messages related to the professional activities of the organisation
 Informal channels are used to transmit personal or social messages in
the organisation
Key elements in the
communication process
 Decoding- the receivers action in making sense of the message, is the
process by which the receiver interprets the symbols (coded message)
sent by the source by converting them into concepts an ideas
 The receiver- the person who gets the message
 Noise- thing that interfere with the message
Key elements in the
communication process
 Feedback- is the receiver’s response to the sender’s message. During
feedback, the Receiver becomes the source of a message that is
directed back to the original source, who then becomes a receiver.
Without feedback, senders have no way of knowing whether their ideas
have been accurately understood.
Channels of Communicating

 Oral - People communicate with each other most often by talking or oral
communication
 The advantages of oral communications are quick transmission and
quick feedback.
 The major disadvantages is potential for distortion especially when a lot
of people are involved
 Written- written communication include memos, letters, organizational
periodicals, bulletin boards or words symbols.
 The advantage of written communications is that it is permanent,
tangible and verifiable. Typically, both the sender and receiver have a
record of the communications. The message can be stored for an
indefinite of time.
Channels of Communicating

 Disadvantages
 They are time consuming and sometimes feedback is either delayed or
not received.
Channels of Communicating

 Nonverbal-These are nonverbal communications neither spoken nor

written) e.g. loud siren or red light at an intersection tells you
something without using words. Other forms include body language
(gestures, facial expressions and other movements of the body)
 Expressions and other gestures can communicate emotions or
temperatures such as aggression, fear, shyness, arrogance, job and
anger.
 Electronic Media- (telephone, email , television)
Internal and External
Communication
 Internal communication is information exchange within the organization.
Messages can be exchanged via personal contact, telephone, e-mail,
signals etc. The direction flow of Internal communication can be
vertical, horizontal and diagonal.
 Internal communication helps employees in performing their work,
developing a clear sense of organization mission and identifying and
promptly dealing with potential problems.
 Internal and External
Communication
 External communication is the transmission of information between two
organizations. It also occurs between a business and another person in the exterior to
the company.
 These persons can be clients, dealers, customers, government officials or authorities
etc. A customer’s feedback is also external communication. An organization invests a
lot of time and money to improve their image through external communication.
 Information can be transmitted externally via letters, direct mails, advertisements,
websites etc.
 Importance of External Communication
 It presents a favorable image of an organization.
 It provides information about products and services to customers.
 Advertise the organization.
Direction flow of Communication

 Information can flow in four directions in an organization: downward, upward,

horizontally, and diagonally. The size, nature, and structure of the organization dictate
which direction most of the information flows
Downward communication (Vertical Communication)
 Is any communication that flows from a manager down the authority hierarchy. It can
be written as well as oral.
 It occurs when company leaders and managers share information with lower-level
employees. Unless requested as part of the message, the senders don’t usually
expect (or particularly want) to get a response
 Downward communication is used to communicate organisational changes, new goals
, directions about a job, coordinate work activities , evaluate and give feedback to
subordinates. When managers assign goals and tasks to subordinates they are using
downward communication. They also use it when they provide subordinates with job
descriptions, inform them of organisational policies and procedures, etc.
Direction flow of Communication

 Upward communication (Vertical)

 Is the communication that flows from subordinates to higher-level
managers and also serves the primary function of providing information
about what occurs at lower levels.
 For example, upward communication occurs when workers report to a
supervisor or when team leaders report to a department manager. Items
typically communicated upward include progress reports, proposals for
projects, budget estimates, grievances and complaints, suggestions for
improvements, and schedule concerns.
 This type of information provides management with knowledge about
potential problems as well as suggestions for improvement. Upward
communication keeps manager aware of how employees feel about their
jobs, their co-workers and the organisation in general.
 Direction flow of Communication

 Lateral or Horizontal communication

 Horizontal communication involves the exchange of information across departments at the
same level in an organization (i.e., peer-to-peer communication). E.g. the production
manager and the finance manager working together to cut down production costs or
communications between two employees who report to the same manager.
 The purpose of most horizontal communication is to request support or coordinate
activities.
 It is one of the most frequently used channels of communication. It is very important for
the smooth functioning of every organisation as it promotes understanding and
coordination between various departments.
 Since an organisation is a system of interrelated parts, management must ensure that the
specialised parts are working together, pulling the organisation in a desired direction. For
example the finance department, marketing and production department must interact with
each other for production of a new product to be a success.
Direction Flow of Communication

Diagonal communication
 This is cross-functional communication between employees at different
levels of the organization who may not have direct reporting relationships.
 For instance the finance manager requesting for information on daily sales
estimates from a sales representative, then diagonal communication has
occurred.
 Whenever communication goes from one department to another
department, the sender’s manager should be made part of the loop. A
manager may be put in an embarrassing position and appear incompetent if
he isn’t aware of everything happening in his department.
 It is used to speed up the flow of information.
Formal and Informal
communication

 Information in the organisation can be transmitted formally or

informally(grapevine)
 Formal communication refers to communication that follows the official
chain of command. it takes place within an organisations prescribed
work arrangements. Formal communications is required for employees
to do their jobs
Formal and Informal
communication
 Informal communication- this kind of communication is defined by the
organisational structural hierarchy. It occurs when employees share
personal or social messages.
 Informal communication permits employees to satisfy their need for
social interaction and it may improve organisational performance by
creating an alternative, frequent faster channels of communication.
 An example of an informal type of communication is called grapevine
communication
Formal and Informal
communication
 When the formal channels fail or do not work properly and some over-
smart people spread rumors, false and irresponsible statement or half-
truths in all the directions. It is called grapevine communication
 Grapevine communication is a complex network of informal
communication that does not follow official channels. It has the ability to
spread information very rapidly especially rumours and gossip that
affect morale and create conflict.
 To prevent grapevine communication, management must ensure that
communication is open and timely.
Barriers to Communication

 A number of barriers can retard or distort effective communication. The

most important ones are highlighted below.
 Filtering refers to a sender’s purposely manipulating information so the
receiver will see it more favorably.
 A manager who tells his boss what he feels the boss wants to hear is
filtering information. This barrier is more common in upward type of
communication. The more vertical levels in the organization’s hierarchy,
the more opportunities there are for filtering.
 Factors such as fear of conveying bad news and the desire to please the
boss often lead employees to tell their superiors what they think they
want to hear, thus distorting upward communications.
Barriers to Communication

 Selective Perception; Different people perceive the same things differently.

This barrier occurs when the receivers in the communication process
selectively see and hear based on their needs, motivations, experience,
background, and other personal characteristics.
 Information Overload
 Individuals have a finite capacity for processing data. When the information
we have to work with exceeds our processing capacity, the result is
information overload.
 When individuals have more information than they can sort and use; they
tend to select, ignore, pass over, or forget. Or they may put off further
processing until the overload situation ends.
 In any case, lost information and less effective communication results, making
it all the more important to deal well with overload.
Barriers to Communication

 Emotions
 You may interpret the same message differently when you’re angry or
distraught than when you’re happy.
 For example, individuals in positive moods are more confident about
their opinions after reading a persuasive message, so well-crafted
arguments have stronger impacts on their opinions.
 People in negative moods are more likely to scrutinize messages in
greater detail, whereas those in positive moods tend to accept
communications at face value. Extreme emotions such as jubilation or
depression are most likely to hinder effective communication
Barriers to Communication

 Language
 Effective communication demands mutual understanding of words and
symbols used in the process.
 Even when we’re communicating in the same language, words mean
different things to different people. People speaking the same language
can have difficulty understanding each other if they are from different
generations or from different regions of the same country.
 Using slang or jargon can frustrate communication and negotiation
efforts.
 Age and context are two of the biggest factors that influence such
differences.
Barriers to Communication

 Other barriers include;

 Conflicting or inconsistent signals
 Credibility about the subject Status
 Reluctance to communicate
 Poor listening skills Noise
 Predispositions about the subject
Improving Communication in
Organisations
 Reduce Noise - Noise is a primary barrier to effective organizational
communication. A common form of noise is the rumor grapevine, an
informal system of communication that coexists with the formal system.
 The grapevine usually transmits information faster than official
channels do. Because the accuracy of this information often is quite low,
however, the grapevine can distort organizational communication.
 Management can reduce the effects of the distortion by using the
grapevine as an additional channel for disseminating information and by
constantly monitoring it for accuracy.
Improving Communication in
Organisations
 Clarify your ideas before communicating - analyse the problem to clarify it in
your mind before sending a message. Communication often is ineffective
because the message is inadequately planned. Part of good message
planning is considering the goals and attitudes of those who will receive the
message.
 Examine the true purpose of the communication - before you send a
message, ask yourself what you really want to accomplish with it. Decide
whether you want to obtain information, convey a decision, or persuade
someone to take action.
 Maintain a two way communication
 Consider the setting in which the communication will take place – you convey
meaning and intent by more than words alone. Trying to communicate with a
person in another location is more difficult than doing so face-to-face.
Improving Communication in
Organisations
 Be mindful of the nonverbal messages you send – tone of voice, facial
expression, eye contact, personal appearance, and physical
surroundings all influence the communication process. The receiver
considers both the words and the nonverbal cues that make up your
message.
 Follow up the communication - your best efforts at communication can
be wasted unless you succeed in getting your message from the
listener’s point of view.
 Be sure your actions support your communication - the most effective
communication is not in what you say but in what you do. Actions speak
louder than words.
END