Business

Communication
 Introduction to Communication
• The word Communication is derived from the Latin
‘Communis’ which means –
Common
• “Communication in the simplest form is conveying of
information from one
person to another
• In words of Allen, “Communication is the sum of all the 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”.
• In a nutshell – Communication is an interchange of thoughts,
information, facts, ideas and viewpoints which brings about
commonness of interest, purpose & efforts
 Features of Communication
• Two – way Process
• Information Sharing and
Understanding
• Verbal and Non-verbal
• Circular Flow
• Goal – Oriented
• Continuous Process
• Pervasive Activity
• Dynamic
• Involves Feedback
 Purpose of Communication
• Exchange of information
• Issue of Orders &
Instructions
• Education
• Advice & Counselling
• Persuasion
• Suggestions
• Motivation
• Raising Morale
• Warning
 Importance / Role of Communication
• Facilitates Planning
• Basis for Decision Making
• Achieves Effective Co-
ordination
• Facilitates Better
Administration
• Creation of Mutual Trust &
Confidence
• Motivation of Employees
• Building Employee Morale
• Binding Force or Commitment
 Need for Business Communication

• Giant Organizations
• Global Business
Environment
• Technological
Advancement
• Timely Information
• Better Human Relations
• Better Public Relations
Communication Process
 Elements of
Communication
• Sender or
Communicator
• Encoding of
Message
• Communication
Channel
• Receiver
• Decoding
• Feedback
• Noise
 FEEDBACK
• According to Berher, “Feedback is a message that indicates the understanding
or agreement between two or more communicators in response to an original message”
• Feedback may be direct or indirect
• Even Silence is a kind of feedback as a certain message does not get conveyed in the
process
Functions of Feedback

Helps in Evaluation of To know whether

what is write and what is audience is interested in Helps in reinforcing,
wrong in a particular the subject – matter or giving rewards or
communication not punishments
 Characteristics / Types of Feedback
Characteristics Types

Person Self
al Observatio Feedback
Elemen n
t Listener’s
Detailed Feedback
& Tone
Specific Positive
Feedback

Approach Negative
Feedback
 Purpose of Feedback

Purpose Results
• Provide information about the • Improves or
work ‘Accuracy understanding’
• Facilitate understanding • Creating an image of self in the eyes
of organizational goals by the lower of the sender of the original message
levels
• It affects Performance
• Inform subordinates about
their • Affects the attitude of
performance the
communicator
• Give specific directives to
the subordinates
• Give information about organizational
procedures & practices
 Importance of Feedback
Confirmation of  Overall Coordination
Transmission  Higher Productivity
Seeking Solutions to Development of
Problem Employees
Identification of Change  Psychological
Required Satisfaction
 Better Understanding
 Better Planning
Principles of Effective Communication

Clarity Creation Two –

Speed of
of
way
Impressi
Messag on Traffic
e
Complet
Credibility Content Capability
e
ness

Accuracy Economy Secrecy Safety

 Forms / Channels of
Communication

Types of
Communication

Channel /
Direction Method
Network

Downw Horizon
Formal Informal Upward Vertical Oral Written Non-
ard tal Verbal
 Channels of
Communication
• It is the path through which information is transmitted
throughout the organization.
• It represents various contacts or linking points which exist
between different individuals or departments in the
organization

Channel
/
Networ
k
 Formal
Communication
• Formal Communication refers to the official
communication which takes place following the chain of
command in the organization
• The organization structure reflecting superior subordinate
relationship determines the flow of formal communication
• The scalar chain of authority established by the organization
provides the channels for official communication between the
members of the organization and the parties outside the
organization like government, suppliers, customers & so on
• Examples – Memos, Letters, reports, statements
 Formal
Communication
Advantages Disadvantag
• Orderly Flow of es
Information.
• Time Consuming
• Identified Source.
• Lack of Personal
• Authentic Information.
Touch
• Expensive • Distortion
• Answerability for
Actions
• Control
 Informal
Communication
• Communication between individuals and
groups which are not officially
recognised is known as informal communication
• It consists of exchange of ideas & information resulting
from social interaction among the members of an
organization
• The necessity of information arises among people to
satisfy their social needs, which is not possible through
formal communication
• Informal Communication is also known as “Grapevine”
 Informal
Communication
Advantages Disadvantages
• Social relations • Incomplete
• Need Satisfaction Information
• Speed • Distortion
• Avenue of Expression • Unreliability
• Feedback • Leakage
• Supporting the formal • Lack of Authenticity
channel • Problem in Fixing
• Better Human Relations responsibility
 Difference: Formal Vs.
Informal
Formal Informal Communication
• Follows officially established chain
• Independent of the authority relations in the
of command & lines of
Communication organization
• Slow – moving process • Carries message at fast speed
• Easy to pinpoint the responsibility • Not possible to fix responsibility
• It is task oriented • It is people oriented
• Consists of work-related matters • Consists of work related as well as social
messages
• Orderly & systematic as regards to
direction of flow • Unsystematic & erratic as regards to
direction of flow
• Serves organizational needs
• Serves not only organizational needs but also
• Flows in vertical, horizontal, and
social needs
diagonal
of the people
directions
• Flows in every possible direction
• Can be oral or written
 GRAPEVI
NE
• The network or the pathway of informal
communication is known as ‘Grapevine’
• In the organizational context, the informal
communication is called Grapevine because the origin
& direction of the flow of informally conveyed
messages cannot be easily traced
• Grapevine cut across formal channels of
communication i.e. neither do they follow the same
pattern not do they necessarily coincide with the
formal channels of authority & communications
 GRAPEVINE:
Features
• It transmits information in every direction throughout the
organization
i.e. laterally / diagonally.
• Unrestricted by formal policies & procedures thus information
spreads rapidly.
• Grapevine is selective with regard to the person who receives the
information.
• It extends beyond the formal hierarchy system.
• It generally occurs orally.
• Grapevine is based on people rather than task.
• It does not follow a fixed pattern of communication.
 Types of
Grapevine
• Single Strand
Chain

• Gossip Chain

• Probability
Chain

• Cluster Chain
 RUMO
UR
• Rumour is a grapevine information which is
communicated without authentic standards of
evidence being present
• It is untrue part of grapevine
• Rumour also serves as a means of wish fulfilment or
applying
pressure upon the management
• It gets twisted and distorted when it passes from one
mouth to another
• The details given at the beginning of a rumour are lost after
few transmissions because people reduce it to a
rememberable number of a details about items of interest
 COMMUNICATION
NETWORK
• There is a social dimension when communication occurs in the organization; this
is called
“Social Communication” through a particular system or networks
• “A network of communication represents the pattern of contacts among
the members of an organization”
• It mainly depends on the nature of channels of
communication and the number of persons involved in the
communication process
• There are five types of network Communication:
 Single Strand
 Wheel network
 Circular Network
 Free Flow Network
 DIRECTION / FLOW OF
COMMUNICATION
• Downward Communication
• Upward Communication
• Horizontal or Sideward
Communication
• Diagonal or Vertical
Communication
 DOWNWARD
COMMUNICATION
• It represents the flow of communication from top level of the
organization to the bottom levels
• A major part of the formalcommunication takes the
form of Downward Communication
• It can take placethrough verbal or written
orders, instructions, circulars,
letters, memos, posters, publications, group meetings & so on
• The objective of downward communication are:
 To give instructions about what to do & how to do
 To explain organizational policies, programmes & procedures
 To effectively how effectively a person is performing his job
 To motivate employees
 To train subordinates
 MODES of DOWNWARD
COMMUNICATION
• Handbooks &
Pamphlets
• Posters and Bulletins
• House Journals
• Pay Interests & Direct
Mails
• Annual Reports
• Special Meetings
 MERITS / DEMERITS:
DOWNWARD
COMMUNICATION
Merits DEMERITS
• Missions & • Distortion
Goals • Incomplete
• Plans & Information
Policies • Time Consuming
• Duty and • Filteration of
Authority Information
• Job Satisfaction
 UPWARD
COMMUNICATION
• It signifies the flow of communication from the lower
levels to the higher levels of the organization
• The purpose of upward communication are :
 To keep the superiors informed about the progress of
the work& difficulties faced in executing orders &
suggest measures for improvement
 To communicate grievances
 To create a feeling of belongingness through
participation
• Examples: Activity reports, suggestions,
 MODES of UPWARD
COMMUNICATION
• Suggestion
System
• Grievance
Procedure
• Open door Policy
• Questionnaires
 MERITS /
DEMERITS: UPWARD
COMMUNICATION
MERITS DEMERITS
• Feedback • Fears &
• Creative Ideas Apprehensions
• Better Relations • Filtrations
• Overcomes • Time Consuming
Resistance to • Inattention by
Change superiors
• Increased • Low morale
Motivation
 Difference
Downward vs. Upward Communication
Basis Downward Upward Communication
Communication
Flow of Message Top to lower levels Lower to top levels

Purpose To communicate policies, To keep the superiors

procedures, orders & informed about the progress
instructions to subordinates of the work and difficulties
faced in the execution of
orders
Use To get the things done To give reports & convey
through the subordinates reactions of subordinates to
the management
Form of Message Written and oral – It takes form of activity
instructions, letters, reports
memos, company , suggestions,
 HORIZONTAL
COMMUNICATION
• It refers to the transmission of information among persons of
the same level. It generally
tales places among departmental heads, who are responsible for different functional
areas of the business
• It objectives are:
 To coordinate among various individuals or departments
 To solve problems which involve the efforts of various specialists
 To resolve conflicts among various employees
 To exchange information among employees of various departments
 To promote social relations among employees
• Horizontal communication can take place between
 Members of a particular work group
 Members of different work group
 Members of different departments operating at the same level
 MERITS / DEMERITS:
HORIZONTAL
COMMUNICATION
MERI DEMERITS
• TS
Speeds the flow • Personal likes / Dislikes
up in may obstruct free flow
• organizati
Facilitates of communication
on
problem amongst solving • Difference in
• members
Reviewing Activities perceptions & attitudes
assigned to people at • Lack of specialised
identical levels
knowledge may hamper
• Mutual Trust & Confidence communication process
• Reduces top level burden
 DIAGONAL / VERTICAL
COMMUNICATION
• It Cuts across different functions and levels in the
organization
• Diagonal communication helps in increasing the
efficiency of organizational activities
• Facilitates cross cordial relationships among
employees of
different departments
• Problem: Departs from normal chain of command
 ORAL
COMMUNICATION
• It involves exchange of message with the help of spoken words.
It takes place:
 Face to face contacts
 Through Mechanical devices
• Examples: Oral Orders, personal interviews, lectures, group
discussions, social gatherings & so on
 MERITS /
DEMERITS

Merits Demerits
• Less Expensive • Not possible when parties
• More Effective are at distant places
• Quick Response • May not be reliable
• Can be supported • Cannot serve as an
with Gestures authentic piece of record
• Faster • May give rise to conflicts
• Message may be ignored
 Barriers to
Communication
Physical Langua Socio -
/Mechanical ge psychological
• Noise • Unclear Message • Difference
• Distance • Words or Symbols in
• Time with Multiple Perception
• Meanings • Difference
Information
Overload • Technical Words in Attitude
• or Jargons • Emotions
Physical Barrier
• Faulty • Inattention
• Use of words
with Different Translations • Closed
Meaning • Body Language Minds
and • Premature
Gestures Evaluations
 Barriers to
Communication
Barriers in
Organizational Personal Subordination
• Status • Attitude of Superiors • Dislike to show
• Lack of Confidence in interest
relationships Subordinates
• One-way Flow • Insistence of Channel
• People
• Complex • Ignoring Generally
Organizati Communication resist new
ons • Filtrating of ideas
Structures Information • Unwillingness to
• Rigid Rules • Shortage of Time communicate
• Message Overload upward
and • Barriers in
Regulations • Lack of incentives
Subordination
• Distance &
• Miscellaneous Barriers
Barriers encouragement
 Measures to Overcome Barriers /
Gateways to Effective
Communication
• Two – Way Channel
• Mutual Trust
• Clarity of Message
• Timely Message
• Consistency of
Message
• Good Relations
• Feedback
• Empathetic
Listening
 Presentations: Group &
Individuals
• Presentation means speaking on a topic before a selected
audience
• It is a form of oral communication with an audience on some
formal occasion

Features:
• Made formally before a selected audience
• Clear structure with an introduction, explanation and conclusion
• Well defined format
• Uses audio visual aids to represent facts & figures (Tables,
 Elements of a
Presentation
• Presenter
• Audience
• Specific Information (Content) to achieve a purpose

Key Points
• The whole burden of communication falls on the presenter
to keep the audience informed & interested
• The presenter has to fill the gap of silence-grasp-breaks-
to answer questions
• Making presentations is difficult for the one who has a
 Occasions of
Presentation

• Launching a new product / service

• Presenting a new Business Plan
• Making a Sales Proposal
• Launching a training course
• Holding a conference / Seminar
• Negotiating a business deal
• Creating awareness among the members of
the audience
 Planning A
Presentation
Attributes of the Audience
– number, gender, age,
Wh To inform, To persuade,
To Influence, To
education, personality,
status, knowledge & so on
o Educate, To
Empathise or To
Entertain
M.M.
What Monipall Wh
y
Refers to the
content / Scope & explaine
y
Need or the
Subject Matter of d the
the presentation concept
Time and
of 5 W’s
Context of
the
presentatio Whe Wher
 Designing a
Presentation
• Introduction
• Main Body or text of the presentation
• Conclusion
• Question & Answers Session

• INTRODUCTION
 Captures listener’s attention
 Give your audience a reason to listen
 Establish your competence
 Introduce your topic & preview of your
presentation
 Set proper tone for the topic & setting
 Designing a
Presentation
• Main Body of the Presentation
 Consists of the key ideas, facts, figures, and any supporting material
 Should be right sequence & Logical order
 Acceptability & authenticity should be kept in view
 Points should be organised in order of importance followed by subsidiary
points
• Conclusion
 Provides last chance to sell the idea
 Should be well panned & well delivered
 Several ways of concluding presentation – main key points should be
summarised,
technical aspects should be taken care of
 Designing a
Presentation
• Question & Answer Session
 Encourage the audience to ask questions
 Listen to the questions carefully
 Persons who ask questions should be appreciated &
complimented
 Those who ask questions for the sake of asking only should be
handled
carefully
 Do not let few members to dominate the Q&A session;
encourage others to participate
 Essentials of A Good
Presentation
• Right Contents
• Suitable
Language
• Preparation &
Mastery
• Brevity
• Logical Sequence
• Lively Delivery
• Right Humour