Theory of Business Communication

Chapter 1 Business Communication: Meaning & Basic Forms

Communication is an important Process in any business enterprise. It is an important need of any enterprise. One cannot visualize the existence of an organization without communication. The need of communication is felt in every field whether it is to promote sales; financial dealings or hearing a dialogue with colleagues or employees of a business concern. When an entrepreneur is explaining about his products to his customers or praising about the efficiency of his employees, pointing his financial requirements to his banker and bringing to the notice of his colleagues all the management problems; all these activities need communication. Business is a group of different individuals and it is formed to achieve certain objectives; which are difficult to realize in the absence of efficient communication. Therefore, it becomes necessary to know the meaning communication as well as business communication.

Meaning of Communication Communication: Meaning and Definitions

The word communication is derived from the Latin word Communis or Communicare which means to make common. In other words, it implies to know or understand. Thus, communication means to understand information, facts or opinions of someone. At the same time, it means to let others know our ideas. Therefore, communication is sharing of information and ideas to create better opinion to others and understand their ideas. So when expression of ones ideas leads to better exchange of opinions, it becomes communication. Communication can be oral or in written form and sends signals accordingly.

Definitions:
The word communication has been defined differently by different thinkers and experts in management. These are given below: 1. Koontz and Donells definition is: Communication is the transfer of information from one person to other whether or not it elicits confidence. 2. According to Louis A. Allen, Communication is the sum of all things which a person does when he wants to create an understanding in the mind of another. It involves a systematic and continuous process of telling, listening and understanding. 3. According to George R. Terry, Communication is an exchange of facts, ideas, opinions or emotions by two or more persons.

4. Bellon and Gilons definition is: Communication is an intercourse by words, letters, symbols or message and is a way through which one organization members share meaning and understanding with other. 5. According to C.G.Brown, Communication has been defined as transfer of information from one person to another, whether or not it elicits confidence or becomes an exchange or interchange but the information transferred must be understandable to the receiver. 6. According to Redfield, Communication is the broad field of human interchange of facts and opinions. 7. Schacters definition is, Communication is the means by which the power is exerted. This describes the important role played by communication in empowering people in accomplishing higher performance. 8. UNESCO (Many Voices one Word) Communication maintains and animates life. It creates a common pool of ideas, strengthens the feeling of togetherness through exchange of messages and translates thought into action.

Nature of Communication:
From the definitions given above, the following features can be deducted that describes its nature: 1. Communication is an exchange of facts and opinions. Therefore, it is a two side process. In other words, in Communication we have sender i.e. one who conveys messages and other person is receiver i.e. one who receives. 2. There cannot be any communication without message. 3. Communication is a continuous process i.e. it does not finish after one message. 4. Message conveyed has its reaction too. The reaction of the receiver of any message is also a part of message and meaning of message is complete when reaction of message materializes. That is why message has got short lived process. 5. The main objective of communication is to create understanding. Therefore, Davis was of the view that Communication is what receiver understands and not what is communicated to him. 6. It is a universal process. It is equally useful and necessary in politics, religion and economy, apart from Business activities. 7. Communication can be in any form i.e. non-verbal, oral or written. 8. Communication is something more than mere information, because it includes practical exchange apart from sending information. 9. It is an important part of direction.

MEANING OF BUSINESS COMMUNICATION

Business Communication is a part of communication. Every enterprise works towards earning profits. Every small or large scale enterprise (whether sole proprietorship, partnership or a company) owner has to remain in contact with customers and at the same time has to communicate continuously with customers and employees of the establishment. This process of communication is known as

business communication. Different factors of production such as raw materials, machines, laborers etc. are collected by the owner so as to produce goods and services and then sale them to earn profit. All the business activities like purchase & sale, exchange of services involve different groups of people like traders, employees etc. The owner has to communicate with them during this business process. Facts, information and ideas are exchanged. This continuous process of communication is termed as Business Communication. Business communication is necessary in order to realize business objectives. Proper operation seems difficult in the absence of business communication.

Definition of Business Communication According to C.G. Brown, Business Communication is a process of messages and persons which are associated with business. It consists of channels of communication. It may be concluded that the business communication is that part of communication which is related to the business activities and which helps to make the business dynamic. Thus, it is clear that the business communication is that form of communication where the exchange of ideas, information or facts between two or more persons takes place in a business environment. In day to day use, Communication and Business Communication terms have been used for the transfer of ideas, facts and information for fulfillment of business objectives.

Objectives or Functions of Business Communication The main objectives or functions of Business Communication are interrelated and are given below. These can be divided into internal and external functions: 1. Internal Objectives or Functions: The main objective of Business Communication is to make available commercial facts, information and messages to those working inside the business form. Some of these functions are: a) Information to Management The function of Business Communication is to convey to the management various important facts and information pertaining to business so that they are in a better position to take appropriate and timely business decisions; which ensure the progress of enterprise. b) Information to Employees Communication creates harmonious business environment. It is helpful in developing better relations between management and staff. Communication is instrumental in conveying the feelings, sentiments and attitudes of one party towards other party. This helps in removing wrong feelings about each other.

c) Co-ordination

Communication helps in ensuring co-ordination among different groups of people operating within the business. Individuals and groups come to know, what others are expecting from them with the help of communication. Thus, communication creates mutual trust among different groups in a business firm. d) Improvement in Morale Policies and programs are determined in an organization. The information regarding these policies and programs is conveyed to employees through communication. Employees are made to realize their responsibility by communication. Communication helps in improving the morale of the employees, because they are made aware of their role in business firm. This also awakens a sense of security and provides work satisfaction to employees. Therefore, Business Communication helps in enhancing efficiency of workers and lower rate of absenteeism. e) Means to achieve Ends Communication assists in achieving business goals through informing, connecting, educating, stimulating, persuading, reassuring and integrating. By enabling above activities organizational goals may be accomplished through a team effort and with togetherness spirit. f) Helps to accomplish Results

A business organization is an economic entity. It is different from social, religious and charitable organizations and is influenced by profit motive. This reveals that the organization would like to ensure that it should accomplish objectives through efficient and optimum utilization of its resources like efforts, money, materials, machine, time etc. Without communication no organization can make and use of resources as through communication efforts and resources are integrated in such a fashion so as to accomplish desired results. g) To provide for Decision making Supports Organizations achieve desired results through rightful and timely decisions at various levels and in all the functional areas. Managers make good use of opportunities through novel decisions. However, for all kinds of decisions availability of adequate and timely inputs in terms of data, figures, facts, reports, discussions, clarification, consensus building and analysis is a must. Oral and written communication provides needed support for decision making.

2. External Objectives or Functions: Business Communication helps in linking the business firm with outsiders. Some of the important functions in such a linkage are: a) Sale of goods or services Profit is earned by any business firm by purchase and sale of goods and services. This is possible through business communication. The owner is in a better position to communicate to the customer the quality of the products. Advertisement, correspondence or encouraging customers at personal level are all the parts of business communication. b) Relations with Suppliers When goods are produced in the firm or sale is affected the firm needs raw material or manufactured goods in any case. Communication helps in conveying to the suppliers the requisite information about the kind of raw materials, time of supply, condition is supply and payment and other facts.

c) Information to other parties An important function of Business Communication is to provide information to other parties. Business firm has to establish rapport with banks, government authorities, telephone staff, researchers and other business establishments during the course of its business. Al this is possible with the help of business communication. A business firm must know government rules so as to implement them correctly for better and smoother running of business. Thus, in establishing better co-ordination with government offices, business communication comes to the help of business firm. If business is being run as a company, then all functions pertaining to shareholders and debenture holders come under the purview of business communication. d) Enables Organization to become Dynamic In todays business environment organizations must develop ability to cope with change. Within turbulence nothing remains static. Business organizations work through mergers, acquisitions, pools, combinations. Customer loyalty is ever changing, employees turnover is increasing and capital is moving fast. Business process outsourcing, corporate governance and larger social concerns are to be handled with positive spirit. All these changes can be addressed only through effective business communication.

e) To Face Emerging Challenges Organizations facing new situations require new approach to communication. Due to emerging knowledge, creativity, innovation and learning new situations and opportunities are developing. Hence, there should be matching communication processes so as to get advantage of new developments.

BASIC FORMS/METHODS OF COMMUNICATION

Communication implies exchange of information. Communication process helps in understanding the ways in which a person can convey his message to others. In other words, communication tells about the path, through which the message passes from one person to the other. Below are the different forms of communication:

I. Non-verbal Communication
This is a part of communication in which a person uses his expressions by way of signals in order to communicate his message. This does not require the use of words because a person can express his feelings by his body language. Under non-verbal communication, when one wants to show ones happiness, one smiles or gestures with ones hands or putting mild strokes on someones forehead. A person can communicate his feelings to others quickly and economically by using non-verbal form of communication. The other person (receiver) can easily visualize as to what a person is trying to say or what actually he is thinking. Functions of Non-verbal Communication When a person resorts to Non-verbal form of communication, he does not need words to speak or to write. He can use body language i.e. gestures like facial expressions etc. to communicate his message. Non-verbal communication has many functions which are explained below: 1. To provide information A person provides information to others by different body expressions without using words. 2. Easy to work A person teaches the other person how to perform a work efficiently by gestures. Other person understands these signals and does his work easily.

3. To express feelings A person expresses his feelings to others by the process of non-verbal communication in a very efficient manner. 4. To control flow of message When a person uses non-verbal form of communication, he can control the flow of message with expressions of body language and message goes quickly to the other end with the right effect. 5. To complete verbal message Sometimes a message is not complete in the right spirit. In that situation, using non-verbal form of communication helps in expanding verbal message. Advantages of Non-verbal Communication 1. Reliability Non-verbal Communication is known for its reliability. The body language or gestures clearly show as to what a person is thinking. One can easily understand speakers emotions by his facial expressions. 2. Quickness Messages are conveyed quickly to others by using non-verbal form of communication. Quickness is required and useful from both the senders and the receivers point of view. 3. Economy in communication Low expenditure is involved in conveying messages in this form of communication. Due to economy all the business units are benefitted which use non verbal communication. 4. Accurate understanding Managers of a business firm can easily and accurately make customers and employees understand their message and also can receive others messages in the same way. This paves for better understanding between two sides. Limitations or disadvantages of Non-verbal communication 1. Lack of Secrecy In this form of communication, ones expressions or gestures are seen by other persons too apart from the person to whom the message was conveyed. Therefore, this form lacks secrecy. 2. Mis-representation Sometimes receivers of the message do not understand the message. In such a situation, gestures are mis-understood and thus the whole effort proves waste. The receiver of the message may be confused in various situations. 3. Physical presence This form of communications becomes successful when both the parties are present facing each other. If it is not so, non-verbal form of communication can not work properly. 4. Useful only in brief messages Non-verbal form of communication works correctly when small messages are to be conveyed. But when messages are long and detailed ones, this form of communication can not succeed. 5. Difficult to follow

The message conveyed in this form of communication is difficult to follow. One can understand the message correctly only when one knows the meaning of gestures. Therefore, it is more difficult to study this form of communication. The meaning of gestures generally changes according to place and situation.
6. No written proof

This form of communication depends on expressions, feelings, gestures etc. Hence, written proof is not there in case of any dispute in future. However, the gestures or expressions can be recorded through videographer but it would be more expensive and also this system is used on special occasions only. Written proof cannot be collected in routine where the non-verbal communication takes place. 7. Difficult in collecting information Messages conveyed by this form of communication are in forms of gestures or any body language. But messages pertaining to past events cannot be conveyed. Therefore right amount of information is hard to collect for the future record and there is lack of record of information given in the past in this type of communication.

II. Verbal (Oral) Communication

In this process of communication, conveying a message in spoken form is called verbal or oral communication. Exchange of opinions is done with the help of spoken words. The receivers as well as the sender of the message are facing each other in this mode of communication. Oral communication takes place in different ways such as personal talks, interviews, speeches and talking on telephone etc. The receiver of message in this process of communication comes to know the body language of the sender. Receiver gets the message in right perspective because if something is not understood properly, the receiver can ask the same to the sender and thus can remove his doubts. According to Viley, In the process of communication, verbal communication is best one, because along with words, body language is also used with the result that receiver can easily know the feelings of sender. This channel of communication is important in todays business dealings because managers have to decide on many crucial matters and his decisions are to be communicated to the subordinates. Similarly the suggestions of juniors can be sent to higher authorities. Characteristics of Verbal communication Oral/verbal communication has many characteristics which are described as follows: 1. Exchange of opinions between receiver and sender takes place by direct verbal talks. 2. This is a two-way communication system because sender of the message can visualize whether receiver has understood the message conveyed or not. 3. This communication has got two types- Direct and indirect. In direct communication, persons are exchanging their ideas through speech facing each other or when there is group discussion. The examples of indirect communication are: telephone talk; public communication system etc. Channels of Verbal Communication 1. 2. 3. 4. 5. Radio Television Interviews Mobile/ telephone Training

6. Discussions 7. Speeches 8. Meetings

Importance or Significance of Oral Communication Various research studies have proved the fact that 75 percent of the time (spent in communication) is devoted to oral communication by top managers. Therefore, it is clear that oral communication has an important place amongst the various forms of communication. Its important is clear with the under mentioned points: 1. Leadership: The top management has to bestow leadership on different groups of people to perform duties in an enterprise. Leadership quality emerges due to personal traits, managerial behaviors and attitudes towards growth. A manager with his distinct leadership qualities encourages and inspires his subordinates. Oral communication is useful in providing good leadership. 2. Participation: In present time participative management plays crucial role in the field of corporate management. All the concerned persons are invited by management to take decision on some important issues. Discussions are held to find out viable solutions in order to achieve companys objectives. Oral communication helps in this matter to great extent. 3. Recognition: This is an indicative of human touch element in managers. Now-a-days every person wants to be recognized for the works being done by him. This expectation is fulfilled when top managers praise and respect their subordinates for their performances. In such a situation, oral communication does the needful at fast speed. 4. Counseling: Higher authorities in a business unit feel it appropriate to have counseling with their subordinates and other employees for efficient running of business. This is for achieving firms objectives and for evaluation purpose. 5. To develop good climate: The success of an organization depends upon its overall environment. The work goes on smoothly and quickly when environment is conducive. Creation of good environment is possible only through communication. Confusions, rumors and misunderstandings take place which pollute the business environment and slows down the progress of the business in the absence of communication. 6. Team Spirit: Team spirit is necessary to be inculcated among groups of workers to realize the objectives of the organization. Effective oral communication helps the authorities in the respect. 7. Conservation: Now-a-days, managers conserve the concerned persons of different departments to reach at certain decisions. The experience, ideas and knowledge of persons help a lot. This sort of conservative management gets a boost with the help of oral communication.

8. Delegation of Authority: For smooth running of business, it is necessary to delegate authority to subordinates along with entrusting them with responsibilities. Authorities delegates rights to juniors so that they may do work independently. Rights are delegated in both written and oral form. Oral form of communication is widely used in this respect. Oral communication becomes significant because orders and directions are communicated verbally and at the same time informations are collected from subordinates pertaining to the works being completed by them. Advantages of Oral Communication The advantages of oral communication are describes here below:

1. Saves time: In oral communication, messages are not sent in written form. This saves the time and messages reach the employees quickly. 2. Economy: Oral communication is an economic source of communication because no paper, ink or pen is involved in this matter. 3. Clarity of the message: The message is quite clear in oral communication, because in case of any confusion, the clarification is sought immediately from the sender without losing any time. The process of communication is successful when message is received in the same spirit as is being delivered. 4. More effective: Oral communication is more effective in its nature. A message can be communicated effectively by body language i.e. different gestures such as nodding, shaking the head or neck, raising eye brows etc. It can be made even more effective at different times by the feeling of happiness, anger, respect etc. 5. Co-operation: Managers and subordinates come into direct contact with each other in oral communication. This paves the way for better co-operation among employees of the organization. 6. Knowledge of Reaction: One can easily understand the reaction on the part of receiver of the message through his feelings. If the effect of the message is not as intended, then message can again be conveyed in a better way to be more effective.

Disadvantages of Oral Communication Although the oral communication brings quickness in the activities of the organization, but there are occasions and times when oral communication is proved less effective. The disadvantages of verbal communication are as follows:1. Presence of both parties: This requires the presence of receiver and sender of the message. If the receiver is not available at the time of communication then the utility oral communication is lost. 2. Lack of proof: This is main drawback of oral communication. There is no written proof of message conveyed or sent in oral communication. Difficulty arises when receiver of the message takes a reverse turn later on. This is why higher authorities consider it correct to send their orders/directions in written form. 3. Expensive in nature: Oral communication is not appropriate in case of long messages as it is not possible to remember lengthy messages by the receiver. Some messages are important and are to be kept as reference material to be consulted in future like Presidents speech for Annual Report of a Company etc. 4. Non-availability of reference: Oral communication is useful for information which is short lived. But the information which is needed for reference purposes in future, do not come under the purview of oral communication. The decisions taken by top management, rules and regulations and other decisions are helpful for smooth conduct of functioning of the organization cannot be communicated in oral form. 5. Quick response necessary: When there is a little time with the sender of the message, something wrong can be uttered. Bitterness starts creeping in the organization and it finishes the importance of message communicated. At the same time, receiver of the message does not get sufficient time for answer which he wants to offer to the sender.

3. Written Communication When exchange of opinions is in a written form rather than by spoken words known as written communication. Written communication includes newspapers, magazines, reports, letters, circulars etc. Care should be taken in written communication that the meaning of the message should not alter. Therefore, in the process of this form of communication, simple words are used for conveying the message. Every message should be straight forward in its approach rather than cris-crossed. If there is a need, charts are also used to make the message more effective. The words like You & He should be used to call different persons in written communication. Messages being in written form can be kept as proof for future dealings. The choice of words should be done carefully in written communication and the words should be such so as to convey a specific meaning. As far as possible, message should be in short sentences so that receiver has no difficulty in finding the true meaning of message. Characteristics of Written Communication Written communication has following characteristics: 1. Exchange of information and messages is in written form. 2. This communication is formal in nature and cannot be overlooked. 3. This can be of two types: Group written communication and individual written communication. The mediums of this communication are letters, memorandums, circular bulletins, magazines, handbook, diaries, policy guidelines etc. Advantages of Written Communication 1. Written Proof Written communication is in the context of future reference. If some dispute arises, the matter can be solved by going through the contents of past written materials. 2. Correct message Written messages are prepared with perfect care. Moreover, these are checked with great attention before presenting them in meetings. Therefore, mistakes are not likely to occur in them. 3. No need for personal contact Like oral communication, it is not necessary for both parties to be present before each other. It is because, under this form of communication, authorities send the written message to the concerned person.

4. Completeness Written messages are prepared with perfect knowledge of the things concerning the matter. That is why; there is completeness in the message. 5. Economical If the receiver of the message is stationed at a far of place, then this method is economical in the sense that postal charges are quite nominal for sending the message to the receiver by post. 6. Information to all at one time

Written communication is the best channel of communication for conveying information to persons living at different places. Although in oral communication too, many persons get information in meetings or conferences, but it is not necessary for the receivers of the information to be present at such gatherings. Therefore, this medium is more appropriate than oral communication. Disadvantages of Written Communication Though there are many benefits of written communication, yet it is not free from drawbacks. The main defects of written communication are: 1. Wastage of time As compared to oral communication, this system of communication is sheer wastage of time because much time is wasted in drafting the message. Even signatures of higher authorities are necessary on these drafts. They take long time to sign the documents. So delay is caused in sending a message. 2. More Costlier This system involves more cost as compared to oral communication. Expenditure is incurred on paper, ink, type-writing and remuneration for the person, preparing the message. The firm incurs expenditure on preserving the copies of he written messages. 3. No secrecy There is lack of secrecy in this system of communication. Written communication passes through the hands of many employees and therefore even if management tries to maintain secrecy, it fails in its objectives to do so. 4. Not suitable in Emergency When there is some emergency, this system becomes inappropriate in the sense that it will take much time to send written message.

Comparative Study of Verbal and Written Communication S.No. Basis of Difference Verbal Communication Written Communication 1) Oral/written This is in oral form. This is in written form. 2) Expenditure Saves money because no Expenditure is involved on paper, need of paper, ink etc. Ink etc. 3) Time Time is not wasted in writing Time is wasted in writing the a message. message. 4) Effect More effective, because gestures There is nothing of that sort like make the message interesting. gestures/using body language. 5) Feedback Immediate feedback from the Delayed feedback. receiver of the message. 6) Productivity Communication is prompt, therefore Productivity known at a later productivity is more. stage. 7) Co-operation Personal contact paves the way for Lack of personal contacts results co-operation between the parties. in less co-operation. 8) Presence of parties It is a must. Not necessary. 9) Secrecy Message remains secret. Message does not remain secret. 10) Proof No proof remains. Proof remains for future references.

Which method is the best for communication purpose out of these two? It is very difficult to answer because both the methods have their own advantages as well as disadvantages. The need of the hour is that a business unit must try to establish proper co-ordination between these two forms of communication. According to Brown, if a manager chooses only one method, then he will have to face serious failure. Therefore, it can be ascertained that both the methods should be employed in a business

as per the needs of the firm. In other words, where verbal communication can work, it must be used and where written communication is essential, it should be resorted to for the benefit of organization. 4. Audio-Visual Communication Importance of Audio-Visual means of communication is increasing very fast in the present times. Today, films, video cassettes, movie cameras, tape recorders and computers are being used at a large scale in various industrial activities like meetings, conferences, sales campaigns, training programmes, surveys and advertisements. The importance of Audio-Visual communication has been felt in areas of production, sales, advertisement, training etc.

Chapter-2 Different Models and Processes of Communication

Communication system is considered to be quite complex because changes do occur at its different stages. Dispatcher transmits information to receiver by adopting different mediums of communication. He chooses any one of different ways, keeping in mind that the medium selected should not destroy the effects and authenticity of information sent. Therefore, the ways selected by the sender for sending information are known as communication models. Information is being sent from one place to another by communication process. In this way, the receiver becomes in a position to understand the meaning of message received by him. Different mediums of communication are collectively considered as communication models.

COMMUNICATION PROCESS
Communication process comprises of various steps. It involves stimuls and response. Stimuls is communicator specific whereas the communicate responds. In communication mere sending and receiving of message is not enough. What is more needed is common understanding between the sender and the receiver. Whether you speak, write or listen, communication involves more than one act. Rather, it has a chain of events that can be explained as under: 1. Sources- In the communication process, a person, who sends or dispatches the information or message, is a source of information for the receiver. The sender is a person who initiates to communicate. The sender must have a visualization of the receivers mental state before communication. When the sender has to convey both bad and good news, it is always advisable to convey good news first. In case, the sender is required to address both simple and difficult to understand message, it is often better to start with the message which is easy to understand. This order increases effectiveness of communication. When the message is to be communicated verbally, the sender should try to get meaning of the clues which are visible and may give additional information. In case of a business entity a marketing manager explaining about new product launch to the sales personnel, a computer software maker explaining it to the user, human resources manager giving advice to his superior are the examples of sender in communication. Therefore the sender of the message should be well acquainted with the message to be sent.

2.

Encoding- Message or information is usually invisible or in abstract form. Therefore, encoding is necessary to give it a clear shape when ideas are converted into symbols or language. When a person expresses so many concepts enshrined in his mind, language becomes an important communicating system. Body language is used while encoding any message. Body language or gestures can have different forms such as facial expressions, nodding, winking, raising hands etc. In business, many messages are encoded in computer language now-a-days. While encoding a message, the sender needs to know what subjectmatter to include, how the receiver will draw meaning out of it and how it may influence the relationship with others. In practice three commonly used practices are: speaking, writing and body language. Many factors influence the coder like communication skill, knowledge, experience, environmental, social and cultural elements etc.

3.

Receiver- In the communication process, he is a person who receives the information from the communicator. The message should be drafted with keeping in view the receivers view point. The technical knowledge holders when communicate to non-technical people must use laymens language. If the message not reaches a receiver in its spirit, it is treated that communication is not complete. The extent to which this person comprehend the message will depend on a variety of factors, such as (a) how much the receiver knows about the subject, (b) his receptivity to the message, (c) the recipients knowledge and perception about the message being communicated, (d) the trustworthy relationship between the sender and the receiver of the message. Psychologists believe that perception reveals an individuals sense of reality. It is an outcome of varied factors, such as, attitude of receiver towards sender and the message, his intelligence, previous learning and communication skills. However, an individuals perceptions cannot be measured accurately all the time. Perception is highly subjective and varies across the people. Usually superiors have a perception that employees at lower level are not enough mature so as to share with them theirs managers policy matters. On the other hand, workers at lower level believe that their managers hide important information from them. Communication process is complete when receiver gets the message from the sender in right way.

4.

Channels- This hints at the way, or medium by which message is transmitted to the sender. Such channels may be in oral or written form e.g. personal meeting, telephone, radio, speech, conference, correspondence, bulletin or notice board etc. for communicating effectively and efficiently, the suitability of channel to message is a prerequisite. For example a telephone call may be inappropriate to communicate complex figures or graphs, this needs quick mails service to transmit print material.

5.

Interpretation- The receiver of the message decodes the message and tries to know the meaning of the message received. He makes the message clear with the help of words, symbols, charts etc. Sometime, help is sought of other person to translate the message

which is in typical or secret terminology. Yet the specific and personal meaning of the message is decoded by the receiver ultimately.

6.

Re-action- It implies the effect of message upon receiver. The purpose of communication is not only to transmit the message, but acting in required way is also important. It depends upon the reaction of receiver to the message as to how he works with the message received. In reality the best communication is based upon mutual confidence and understanding between sender and receiver. The message will have adverse effect on the receiver if he realizes that there is a paradox of language and behavior on the part of sender of the message.

Some of the models of communication are:1. Shammon-Weaver Model- This is universally accepted model in the communication process. This model was formulated by the famous scientists Clandi Shammon and Waren Weaver in 1947. According to this model, communication is a process of sending information. The symbols of message remain changing in this model, causing secrecy in the message. Taxonomy of this model is given below: Information Source: information source is an important element in any process of communication because only after collecting information, we are able to send the information to others. Transmitter: The person sending the information to others is called the transmitter. Noise Source: In the communication process, all the obstacles distorting the message process are termed here as noises. Message: All the information sent by the sender to the receiver in the communication process is known as message. Receiver: A person receiving the information is known as the receiver. He usually decodes the message to have a better understanding of the message. Re-action: The sender usually gets the feedback from the receiver which signifies the reaction on the part of receiver of the message. 2. Berlos Dynamic process Model- This model is also important in the process of communication. The model was propounded by David Berlo. According to Berlo events do not occur in a certain determined order, but order of their occurrence remains changing. He was of the opinion that all elements have interconnections in communication process. The main factors in this model are as follows: (i) Source ideas, thoughts, information (ii) Message encoding, symbolic form (iii) Channel The way, medium (iv) Communicator Sender, Communication Art (v) Reciever Decoding the message received (vi) Re-action Acknowledging the message received

3.

Aristotles Model- Aristotles Model explains three elements in communication process. Communication process get completed with co-ordination of these three elements, which are: Speaker <-----------> Message <------------> Receiver Losswell Model- This is popularly known as verbal model which was popularized by American Scientist Losswell. According to him, there are many elements which are interconnected with each other in the process of communication. This is clear from the diagram given below: Sender Feedback Message Medium Receiver Analysis Re-action

4.

5.

Osgood and Schramms Model- This model came into existence in 1955. According to this model, communication process is continuous and includes sender, message and receiver in an interconnecting fashion.

6.

Dances Model- This was formulated by a scientist Dance in 1967. He was of the opinion that communication process revolves in the form of a circle having no beginning or end points.

7.

Murphys Model- The writer H. A. Murphy formulated this model with the active cooperation of his colleagues- Hiedebrand and Thomas. According to this model, the different organs of communication process march forward of each other. Communication process goes on from context to feedback. The other components of this model are given as follows: Context--- Sender--- Message--- Medium--- Receiver --- Feedback Therefore Murphy model explains the sorts of events in communication process. Feedback is generally in verbal or non-verbal form.

8.

Josephs Model- This model seems to be influenced by Shammon-Weaver model. Joseph chose the under mentioned areas (sources) to explain this model. a. Source- In this model, the first task is to find out the different sources of information from where it is collected. b. Guideline- Guidelines are prepared as to how the information is to be sent as well as choice of words is considered in this connection. c. Medium- After preparing the guidelines, the best medium is chosen so that message could be sent efficiently and quickly. d. Utility- It is also considered as to how the message is of any use to receiver and whether information is to be treated as secret for the receiver. e. Receipt and Analysis- Along with the information received, it is being analyzed so as to know the real meaning and significance of the message.

f.

Re-action- The receiver sends his feedback to the sender and tells as to how the information is beneficial for him.

9.

Mass Communication Model- This model was formulated in 1980 by different scientists which also explains the inter connection of different components such as source, sender, message, receiver and re-action. These components are linked with each other during the process of communication. Thill and Bover Model- This model occupies an important place amongst different models of communication process. According to this model, communication process starts from the idea and move up to reaching the reaction level. When an idea emerges in the mind of any body, it changes into message. Then it is sent to the receiver, who after analyzing it sends it along with his reaction to sender in the form of feedback. This model resembles with that of Murphys model and is practical in nature.

10.

11.

Inter-personal Model- The model believes that at least two individuals are involved in communication process and both have different opinions. However, they have similarity of views on certain subjects which is visible. Cilber Model- According to this model, the message cannot become effective, unless and until, the right meaning of the message is not found out. The message is effective when sender or receiver reaches to the same conclusion about the meaning of message. The findings of this model were used by Vastle and Macleen in their researches later on.

12.

13.

Transper Model- This model is based on internal and external elements. Both these elements are mixed with each other in communication process. Their effect is clearly seen when these are separated from each other. The external element is usually relatively independent over which a communicator is having low degree of control. Vastle and Macleen Model- This model was propounded in 1957, which makes it clear that any one factor in communication process goes on revolving continuously. When a person wants to send his message, he presents his side of the story. The receiver, after analyzing the message presents his re-action before the sender.

14.

15.

Leagans Model- The model was presented by Leagan in 1961 which includes the following components: Sender Message Channel Receiver Feedback

16.

17.

Gerbner Model- This model was presented by an American Scientist George Gerbner in 1956 when he wrote an article Towards a General Model. In this model, it is made clear that a person first thinks about any idea and after analyzing, he has to find out the medium in which message is to be transmitted. Then he sends the message to the person who is linked with that message in one way or the other. Lesiker Model- In Lesiker model too, communication process starts with sending of message, but it does not finish with feedback but, it goes on with a new frequency. For example, when a person sends a message, the receiver sends his reaction to the sender. Afterwards, if the receiver sends any message to the sender, then the sender (first person) will dispatch his feedback to the second person.

Transactional Process Model of Organizational Communication: The model was presented by John Benberg and Milliam Willmont. In this model all the persons involved in communication process go on sending and receiving information simultaneously. Therefore, there is a simultaneous process of sending and receiving of messages. That is why organizational communication process is also known as mutual process because this communication process needs mutual co-operation of sender and receiver for its success.

Indian Models in Communication In India, communication system has a long history of its existence. In the old times, kings used to send their message to public at large and also used to carefully listen their complaints and suggestions as these were the parts of communication system. The main component of Indian communication system has been one world i.e. kings used to treat the whole world as a family. The different mediums of communications were used by kings to transmit their message. Kings ministers used to choose different mediums of communications as per the situation. It was also kept in the mind that the meaning of message should not alter in any case i.e. message should not be understood in wrong perceptive. King ---------- Ministers -------- Public -------To send the message from king to the public at large.

Public -------- Ministers -------- King -----------

Complaints or suggestions from Public.

Indian Models before Freedom Indian thinkers propounded different communication models prior to freedom because messages were to be flashed to different parts with the sole purpose of getting freedom. There were many revolutionaries who were having alliance with different political parties, and they were using different channels of communication for sending the message. Liberal parties believed in mutual talks and exchange of opinions while strong milled parties resorted to other methods like: Information ------ Taking Action ------ Realization of Objectives However, liberal parties modus operandi included discussion also: Information ---- Discussion ---- Decision Taking --- Decision is communicated for action

Chapter 3 Effective Communication

Definition: According to Haneyager and Heckmann, Communication is the process of transmitting and receiving information. It is also fundamental to the practice of management that without it an organization could not exist. The reason is very apparent. If we could not communicate with employees, we could not inform the work we want it to be done, when to do it and so on. Communication depends not only on transmitting the information, but it is also necessary to see their effect on the receiver. Every transmitted message contains some objective. If that objective is fulfilled with communication, it will be called effective communication. Otherwise it will be a sheer wastage of labor, time and wealth. Many a factors are to be considered for effective communication. One of the important requirements of an effective communication is that communicator should have the knowledge of communication chain. Every officer should have approach to communication system and communication chain. Chain of communication should be direct and short and should be used in its entirely. All the persons handling communication centers should be competent enough to work effectively. Communication chain should not be interrupted when the work is in progress. Every communication should be authorized one. Orders must be such, which are adhered to efficiently and quickly. The orders must be crystal-like clear so that the persons, for whom they are transmitted, should become clear about its meaning. Significance or Importance of Effective Communication

The significance of communication cannot be described in few words. According to a Former President of American Management Association, Communication is most critical problem of management in present times. It is a well-accepted fact that effective communication is necessary to make an industrial organization effective. Co-ordination is needed for effective functioning of an organization; which is not possible in the absence of effective communication.

The utility of communication in management is clear from the facts mentioned below: 1. Communication is essential for Management- Communication is an important function of management. With the help of communication, a manager is able to give practical shape to many of his plans and projects like giving information to others regarding firms objectives, planning, co-ordination etc. According to Koontz and ODonnel, Effective planning exists where every responsible person possesses requisite information pertaining to his own field and as far as possible, these informations should be specific and detailed ones. Redfield wrote, Communication can make or mark an organization. Similarly Merry Cooshing Niles stated that, Effective communication is necessary ingredient for perfect co-ordination because policies can be transmitted vertically and horizontally which leads to creating high morale and mutual understanding amongst different groups of an organization. 2. Basis of Planning- Primary function of management is planning and its sure success depends upon effective communication. Koontz and ODonnel opined that planning is effective where every concerned person collects information having bearings on the area f planning. This information should be specific and detailed ones. Besides, communication is the only medium to express and transmit all the orders, guidelines, suggestions and sentiments. Effective communication is needed to successfully implement the planned programmes. 3. Basis of decision making- Communication helps the top-management in taking quick decisions. Authorities will not reach to any worthwhile decision in the absence of communication. Crucial decisions are to be taken at every step in business organization and at different levels of management. Solutions are to be formal. Business activities are life-less without communication in the same fashion as human body is a mere corpse in the absence of soul. In short, it can be said that managerial decisions are put into practice with the effective communication. Successful communication is the basis of direction and leadership. An organization remains active with help of effective communication. Managers allocate works and responsibilities as per pre-determined objectives through communication and ensure their successful implementation.

4. Successful operation of business- A well developed communication system is necessary for successful and smooth working of an organization. Communication plays a very useful role in any business enterprise; be it large or small; or be it in public sector or in private sector. 5. Quick decisions and its implementation- Effective communication help the managers to take prompt decisions. Different types of information, facts, data, suggestions and complaints etc. are first collected through communication and then disseminated among different groups of personnel in the organization with the help of communication mediums.

6. Increase in employee morale- Objectives of the organization are easily transmitted to employees through effective communication. The system explains to every worker his area of operation, his responsibility and way to do the work efficiently. Thus, organizational charts acquaints every worker what work he has to do, as well as when and how it is to be performed, what are his rights towards whom, and to whom he is accountable. Thus, workers are motivated automatically to have proper interests in theirs jobs. Employees get greatly attached to the enterprise when there is continuous exchange of ideas and informations between managers and employees. This also raises their morale and they strive hard for the implementation of programmes with vigor and zeal. 7. Promotion of Industrial Peace- Peace is necessary in the organization so as to achieve more production. Long strikes and lock-outs bring the firms at the verge of insolvency. The employees should get proper information about organization at regular interval to avoid mis-understandings. Effective communication helps in managing information between employees to top management. 8. Basis for leadership- Effective communication is the basis of leadership. Leaders role is passive in the absence of communication, because leader will not be able to communicate his ideas, sentiments, suggestions and decisions to his subordinates. Therefore, with the aid of effective communication leader and hid followers can create mutual understanding, trust and harmony. 9. Cost Reduction- Present competitive world requires an organization to be cost effective for ensuring its success. Effective communication reduces chances of strikes, lock-outs and industrial unrest. Mutual dialogue between the labour and management ensures better work relations. This leads to better utilization of resources and reduction in cost.

10. Incentive for democratic feelings- All the major decisions are taken by the topmanagement, but are implemented by employees at lower levels. Sometimes, suggestions from employees can do wonders and meritorious employees are awarded accordingly. This creates a feeling among workers that work is being done on the basis of democratic principles in an organization. This feeling maintains good and harmonious relations between labour and management. According to Hobs and Johnson,The main function of communication is to simplify social relations. It prepares the employees to accept the changes taking place or going to take place in the organization in the wake of new techniques of production or in the light of using new machines and instruments. Thus, effective communication is a life-giving element which activates an organization in right direction. This is needed more in under developed and developing countries like ours because Indian labourers are still illiterate, and conservative in their attitudes. They migrate to cities from villages to work in factories. They come from different areas having different dress codes and languages. It is necessary, that communication system should be such that every concerned should be able to understand or communicated to them in the same organization. They should also be in a position to express their own ideas to the management with perfect ease. After ensuring this business enterprises will be in a better position to have maximum production of better quality at lowest cost of production. According to Harold Yasvin, In our operation of business, communication system is playing an important and growing role. We have to inform more persons, we have to listen from a wide section so as to understand their grievances well. We have to seek their co-operation in removing the problems so as to create an atmosphere of mutual understanding and trust in the organization.

Chapter 4 Principles of Effective Communication

Definitions: According to Keith Devis: To think of a successful business without proper communication in todays world is like day dreaming. Because of the lack of communication in business the workers and managers cannot work in harmony and the business will fail to attain the set targets. Prof. Hicks has said, The root cause of all the worlds problems is the human beings inability to communicate and his misconception that he is communicating. Prof. Theo Haemann has also said, The success of all managerial work depends upon communication. In communication managers and subordinates exchange ideas so as to attain the set targets of business. It helps in understanding the problems faced by the subordinates in working and the solution thereof. This results in understanding how the subordinates can be encouraged to do their work. It also encourages the workers to work harder. And all this depends only and only on effective communication. Necessary conditions for effective communication There are some necessary conditions for effective communication. They are(i) (ii) (iii) (iv) Understanding correctly: It is important that sender is understood correctly by the receiver. The receiver should get the same message as intended. If the receiver gets the different message then the communication fails. Clarity: The communication should be clear. Such language which has two meanings should not be used. Trust: For the communication to succeed it is necessary that the receiver of the message trusts the sender. Trust is the basis of communication. Controllable: With the help of control the manager tries to find whether the progress of work is going on as per plan or not; so that the problems can be found and removed.

(v)

Friendliness: The sender maintains friendly relations with the receiver. It encourages the feeling of faith, accountability and mutual co-operation in the workers towards the business.

(vi)

(vii)

Organization: Without proper communication nothing can be said about organization, because through communication we distribute work, authority and accountability and then it is seen whether the business should be expanded or contracted so as to grow the business which can help in attaining its objectives. Best way of running the institution: Communication has an important role in running the institution in best way, because it is important, in running various business techniques, production processes and economic processes. It is through communication that we direct the working of these processes and encourage the managers.

Principles of Effective Communication The following principles are used to make communication effective. They are called the seven Cs. (i) COMPLETENESS (ii) CONCISENESS (iii) CONSIDERATION (iv) CONCRETENESS (v) CLARITY (vi) CORRECTNESS (vii) COURTESY It is necessary to incorporate these seven Cs in the communication process. Their description is as follows: (i) Completeness: Various writers have put a lot of emphasis on completeness to make communication effective. It is the first principle of effective communication. It means that the business message should be complete. It should include all the facts and opinions. For a message to be complete it should have the following componenets. a) Should give all the necessary informations: In communication, it is important to have all the information that is necessary. It is important from the point of view of the receiver. For the message to be complete it is necessary that the receiver gets the answer to the 5 Ws which are (Who, When, Where, What, Why).

b) The message should answer all the questions: The message should be such that it answers all the questions. Only then it can be called complete. While answering the questions, it should give all the simple and important information. Nothing should be hidden or left. c) Provision of other necessary information: The message may contain the information other than the questions answer. The other persons may not ask all the questions. But we can still remove this discrepancy while answering. Thus, the message (i) Should answer the 5 Ws. (ii) Answer all the questions asked. (iii) Give extra information. About completeness, writers have said, Communication should include all those things that are asked and those things that are important in clarifying ones message. Completeness in communication is beneficial to the business. It has the following benefits: (i) (ii) (iii) (iv) It gives favorable results. It increases goodwill. Customers become interested in the business. The business moves towards becoming a long term establishment.

(ii) Consciousness: Consciousness means sending the message to the receiver with the same meaning as intended by the sender. The choice of the right words is to be made so that the given message can be understood in its true meaning. It also means to avoid the use of unnecessary words so that the receiver can receive the message without any loss to its main content. Such language should be used in the message which can deciphered by the receiver. A message usually contains thoughts and information. When the message receiver tries to explain the message then he should have full knowledge of the hints, pictures and words used in the message otherwise he may translate it incorrectly. For the success of communication it is necessary to communicate in person as long as possible. (iii) Consideration: In communication it should be seen that the sender keeps the receiver in mind while sending the message. In the message good, soft and courteous language should be used. Using We instead of I makes the message more effective. To express consideration a positive attitude should be adopted.

(iv) Concreteness: Concreteness means that while communicating clear, fixed and concrete information should be used. Information that is not fixed should not be used, because decisions taken on the basis of such information may prove to be wrong. If we have certain facts we can compare them with earlier information and deduce the correct results. To make communication concrete the following things are necessary: a. Communication should include special facts. b. Communication should include statistics that already exist. c. The information available should be compared. Communication should be clear. It can be sent to another person only when it put in concrete language.

(v) Clarity: In the modern world, clarity is extremely important for effective communication in business. Clarity means that a message should be understood with a little effort. In communication clarity is used in the following way: a) Use of short and easy words- For good communication it is important that simple and easy language is used. By the use of short words we mean that useless words should not be used. Use of frivolous words makes it difficult to communicate effectively. Because of this the subordinates sometimes get the wrong meaning which makes it harmful for the business. Use of simple words means that difficult words should not be used as subordinates find them difficult to understand sometimes. In communication technical and difficult words should not be used. The vocabulary should be easy to understand. b) Use of effective words and paragraphs- According to managers, in communication the use of effective words and paragraphs is necessary. While using words one should make sure that words are uniform and not out of place. Sentences should be small and clear. Different things should be written in different paragraphs. Uniformity in sentences is necessary. Sentences should be joined. If a religious message is to be given then it should be kept away from economic and social topics.

(vi) Correctness: For effective communication the virtue of correctness is very important. Correct language should be used to bring correctness in communication. Language is both formal and informal. Right language should be used at the right time. Language should be practical. Language should be correct. Communication should be based on correct facts. The figures should be correct. They should be reliable and checked before quoting. (vii) Courtesy: Courtesy in behavior leaves a god impression on others. In communication it is a very important principle. Through courtesy we give respect to others. Today, its practical nature is different. Only Please and Thank you do not make the communication courteous. For courteous communication the following points can be suggested: a. You deserve respect. b. I respect you. c. Your fame is worth nothing. Similarly, if something written or said cannot be understood then it is discourteous to say, I dont understand what you mean. Instead one should say, I could understand it because of my limited knowledge. Kindly explain it to me again. I will be thankful to you. One can use fun and humor in language but one should be careful not to use objectionable language. Everybody should be respected equally. Caste or sex should not make any difference.

The above description reveals that the use of all the seven Cs is important and necessary for effective communication. Some writers suggest that the use of the seven Cs is incomplete and one should add four other basic principles to them as well. These are conciseness, simplicity, strength and sincerity. If we look deep, the seven Cs are related to these four principles. The seven Cs are an improved and clear form of these. Their use is important for making communication effective.

Chapter 5 Theories of Communication

Introduction: A message in the communication system links a person with another. It is not possible to tie communication in some limit. Messages are communicated on the basis of some set outlines. The atmosphere, limitations and assumptions under which message is dispatched are known as theories of communication. These have been propounded in different forms.

Classification of theories of communication- Theories of communication are divided into two categories: 1. Theories propounded to create socio-cultural backgrounds/ environments. 2. Theories based on the ideas of different scholars. 1. Theories propounded to create socio-cultural environment This includes communications which aim at creating and saving ideal values for universal community within certain limits. Those theories are: a) Communist Theory of Communication This theory is based on principles of communism. After success of revolutionary process in 1917, in the erstwhile USSR, this theory was put to use. This theory is based on the under mentioned principles of communism: i. The voice of laborers will be heard prominently, who were raising the voice against injustice and crimes against them. ii. Voices will be raised against the exploitation of man by man. iii. Role of public will be supreme in the construction of a strong nation. iv. Interest of the nation will remain supreme. The effect of this theory was widely felt. Lenins principles were followed not only in Soviet land, but in China and other countries as well. This was sufficiently strong theory. However, this theory could not achieve popularity because of narrow and impractical ideas of communism. Division of Soviet Union was one of the reasons due to which this theory could not become popular universally.

b) Chinese Theory of Communication Communism prevails in China too, but its philosophy is quite different. Therefore, its communication policy is also different, and is known as Chinese Communication Policy. In this policy, instead of revolution, peace is the main theme of the whole communication policy. The ideas hidden in this theory are respect, dedication and faithfulness towards the nation. Communication policy of China is based on Indias principles of Panchsheel. c) Christian Theory of Communication In this communication theory, emphasis is placed on free thinking, personal freedom and dedication towards almighty God. This theory is based on human sensitivity and service quality in a man. The theory serves as the foundation of communication system in the European countries. The theory is popular among masses because it does not believe in obstacles. Moreover any new thing conducive to human welfare is communicated to the people. England ruled over many countries and so this travelled to those countries too, wherever England has its rule. India too had adopted this theory. But due to peculiar socio-cultural background in India the theory could not flourished. d) Islamic Theory of Communication This theory is based on Muslim conservative principles. Its main basis is Muslim religious book. This theory follows rigid, fanatic lames as well as preaching of Mohammad Sahib. The theory is practiced mostly in Muslim Countries. e) Conservative Theory of Communication The name conservative is attached to this theory because one way communication is resorted to on the pretext of religion and caste and restrictions are imposed on public. People cannot breathe freely as was the case in Afghanistan quite recently under Laden sponsored Government. Restriction is imposed on peoples movements, their education and their ways of living. When this theory fails, Liberal Theory sets in better informed countries like Nepal and Thailand. f) Liberal Theory of Communication

This is considered to be the best theory. Under this theory, full freedom is given to communicate messages and ideas against government and society. There exists no check, control or regulation on messages being communicated.

g) Vedic Theory of Communication This theory is in practice since Vedic era and that is why it is known to be the oldest theory. This communication system is based on Guru Disciple form of education system. There was verbal communication system in our country in early times. The theory considers Indian cultures and traditions as the base of traditional values. These traditional values were crushed mercilessly under British rule in India. 2. Theories based on the ideas of different scholars The ideas of different scholars on communication process have been put forward in the form of communication theories, some of which are explained below: a) Aristotles Theory of Communication This theory was propounded by Aristotle. According to him if persuasive techniques are used, the thinking process of the receiver can be changed. Under this theory there are three components of communication. Sender, message and receiver. But of the three, sender is the most important. He can change the thinking of the receiver. In other words, communication is one sided if persuasive techniques are employed by the sender. b) Lasswells Theory of Communication This theory was presented by Lasswell and is considered as one sided theory. Alike Aristotle, sender is important in this theory too. Lasswell laid emphasis on the channel of communication. According to this theory, the sender will bring a change in the thinking of the receiver by using appropriate channel of communication. c) Shammon and Weavers Theory of Communication Shammon and Weaver presented a different theory of communication which brings into a wide form over above mentioned two theories. According to them, after receiving the message it must be encoded and then transmitted so that the receiver is in a position to understand the message, and can transmit his feedback well in time. The idea behind encoding the message was to avoid the effect of noise. Thus a message is transmitted in full and pure form.

d) Schramm Theory of Communication Schramm presented a wide and reformed form of the theory as was given by Shammon and Weaver. Schramm presented three models of this theory. i. Model 1: First model was more or less same as was presented by Shammon and Weaver. The difference with that theory was that message does not contain the element of noise and the message too is not wrong and is not disorted. ii. Model 2: In this model, Schramm suggested that sender should select a channel to transmit the message in a way that receiver understands the message. Thus, he laid emphasis on receiver in this model too. iii. Model 3:

In this model, Schramm considered the reaction of receiver, as an important aspect. Thus according to him, the components of communication are: 1. Sender 2. Encoding process 3. Decoding process 4. Destination 5. Response e) Katz-Lazarsfeld Theory of Communication The theory was mainly propounded for mass communication and therefore one can call it Mass Communication Theory also. In the theory, after encoding the message, sender transmits the message by some appropriate channel to an opinion leader. This leader finally relays it to the public. The theory has three components: Message, sender and the group leader. f) Berlos Theory of Communication This theory lays stress on perception. This theory says that sender encodes the message (employing his skills and knowledge) and transmits the same using some suitable channel. How the receiver receives the message, it depends upon his knowledge and perception of receiver.

g) Modern Theory of Communication Communication process is being presented in the form of a circle in modern theory of communication. According to this communication cycle, message is dispatched to receiver. The receiver expresses his response after receiving the message which is in real sense is the feedback. The different stages of this process are: i. Input: It means those ideas and information which the sender wants to dispatch. ii. Message: The actual message which is transmitted. iii. Channel: This means medium i.e. letter, report, telephone, fax, conference, e-mails etc. iv. Output: the message which the receiver gets. v. Feedback: Receivers response after receiving the messages which may be positive or negative. vi. Communication Loss: The message which was to be sent or already sent and received by the receiver may be wrong in some way or the other. This is called communication loss. The obstacles in communication process cause communication loss. These obstacles create problems in understanding the message.

Chapter 6 Corporate Communication

Introduction: Communication process plays an important role in the success of a business organization. There is exchange of information in the organization through communication system. For example, messages are transmitted from one person to another or from one place to another. The success of an institution or an organization depends to a large extent on the system of communication. Communication system is based on the size of institution. When it is small, informal channel of communication prevails. However, in a large organization, where no. of persons employed is large communication system is formal. Channel of communication in any institutions may be of two types: 1. Formal Communication 2. Informal Communication Types of Communication Channels Communication channels may be classified on the following basis in any business concern: A. On the basis of Relations B. On the basis of Information C. On the basis of Nature or Approach D. On the basis of Scope E. On the basis of Mediums A. Types of Communication Channels on the basis of RelationsOn the basis of relations the communication process may be classified into following two parts: 1. Formal Communication 2. Informal Communication 1) Formal Communication This communication is amongst different employees of an organization due to pre-determined relationships in an organization. This communication takes place among employees while carrying out their duties and responsibilities. The pattern of this communication is determined as per the determined processes in the structure of organization. Formal communication takes place when every employee is on a pre-defined position or status. This communication is between two positions and not between persons. Officio-legal relations between officers and subordinates give birth to formal communication. Here, position of a person in organization, his rights and duties are all pre-determined. For example, if the manager of any firm communicates the message to his subordinate or assistant manager regarding the work to be done, then this relationship will be treated as formal. In other words, a subordinate is bound to accept orders from his immediate boss. If he does not do so, disciplinary action can be initiated against him. In the authoritarian management system, it is one way process, while it is two way traffic in Democratic management system. Officers pass on formal messages to their subordinates in form of orders/directions, rules, policies etc. On the other hand, subordinates send reports and complaints etc. to their bosses in formal way. All these communications pass from one person to another according to set norms. Thus, when relations between sender and receiver are formal in nature, then the exchange of information between them is called formal communication. Usually formal communication is in written form. These are communicated through annual reports and bulletins of an organization. Characteristics of Formal Communication Important characteristics of formal communication are as follows: 1. Formal message is mostly in written form.

2. Only prescribed and pre-determined informations are exchanged in this communication. 3. Organizational hierarchy system is followed i.e. upward to downward or from down to up. 4. The subject matter, chain of command and authority etc. are all pre-determined in this communication. Advantages of Formal Communication Formal communication has under mentioned advantages: 1. Unity of Command The line executives are responsible for getting work done by their subordinates. Thus, it is necessary that he must be in full knowledge of all the orders/directions given to his subordinates. The status of person remains intact and he has full command on his subordinates. 2. Sound and proper communication Utility of message is maintained in this system of communication and there is co-ordination between the orders. The language of message and its explanation can be moulded as per the understanding of employee in this communication. 3. Definite and deliberate communication Formal communication follows a prescribed path and achieves its goal definitely. Its reaction can be presumed well in advance with clarity of purpose. 4. Controllable Communication Managers have full control on the direction, nature and speed of the communication in this form of communication. These messages were taken in all seriousness because one cannot refuse their authenticity. Disadvantages of Formal Communication The following are the disadvantages of formal communication1. Distortion of Information The information passes through many hands causing distortion of communication. It is due to two reasons: a. At every level of organizational hierarchy, the informations to be sent go on increasing with the result that these are to be cut short by managers so as to summarize them. b. Normally, every manager passes only that information further which he deems proper and appropriate at different times. 2. Delay and filtering of Information In formal communication, informations have to traverse through many hands. It consumes a lot of time to send a message to the concerned person. Moreover, original information gets affected by perception of sender thus causing filtering of information. 3. Formal Action Message moves forward or backward as per the structure of the organization. Therefore, normalcy does not prevail in the communication system. Concerned persons do not evince the right interest causing delay and red-tapism in the system. 4. Increase in the work load of higher managers The work load of officers mounts up because, along with their normal duties of work, they have to exchange that information to with which they are not related directly. 2) Informal Communication When there is informal relationship between sender and receiver, then the communication between them is called informal communication. It is not necessary that such a communication should be in written form. The source of informal communication is neither the responsibility of the organization, nor it is the limitation of organization. Informal communication is quite reverse in nature to formal communication. The creation of informal communication takes place on many factors like social and personal relations, sentiments, religion, area, language, caste, customs, preferences etc. These relations are not tied to any norm, law or policy. Neither are they based on some formal organizational structure. Informal relations cannot be demonstrated even by charts. Therefore, such informal relationships emerge

itself which break or grow due to degree of personal or social contacts. Thus, when sender and receiver are related to each other in informal way, then the exchange of messages, information, feelings, jokes, rumors, clarification and forecasting among them is called informal communication. Body language is also used in informal communication like to show anger, to smile, to remain silent, to move head etc.

Characteristics of Informal Communication Informal communication has following characteristics: 1. This system of communication is normally the exchange of verbal talks in which sender and receiver face each other personally. 2. This communication consists of rumors and misconceptions. If a manager has expressed some personal opinion, it will be deemed as would be order in the times to come. 3. Informal communication spreads among people like wild fire. It creates sensation because every person narrates the information as per his own understanding. 4. This communication follows no set pattern; rather the news passes through different ways, because it depends on nearness of contacts and not on status of persons in the organization. Advantages of Informal Communication 1. Fast and Flexible CommunicationIt is most flexible channel of communication because there is no formal line communication. Moreover communication travels quickly in this form of communication from one person to another. 2. Fast FeedbackInformal communication acquaints the managers regarding the personal opinions of different workers on some issue. Consequently, they evaluate their own policies themselves and find out the morale of the workers. They are in a position to frame policies for future by collecting informations in this way. 3. Mutual Co-operationInformal communication helps in fostering mutual cooperation between sender and receiver. Messages are understood in right spirit and action which is desired, are taken at right time. Disadvantages of Informal Communication 1. Spreads misunderstandingsThe news and information spread in informal communication is not based on facts and thus it is far from truth. There may be many reasons behind it like sense of security, the need to create specific opinion, carelessness etc. Therefore, exact and full information does not reach the concerned person in this communication. Often misunderstanding emerges in the organization. Such a situation is exploited by outside elements. 2. Unorganized CommunicationIf informal communication is resorted to, through public information system, then there is lurking fear regarding the message reaching the right person in right form or not. Moreover, there is apprehension in this communication that concerned manager does not know about the reaction of some order which come to his departments employees not through him, but by grapevine i.e. informal system of communication. In other words, this is brought out by some employees from top managers on account of their personal contacts with higher authorities. 3. Difficult to ControlThis form of communication is difficult to control because it has no beginning or end. Its flow and direction cannot be checked. B. Types of communication on the basis of flow of communication Communication process may be classified into following three parts on the basis of flow of information1. Vertical Communication

Communication system is very important in any business because managers issue policyguidelines from time to time; which are to be obeyed by the employees. Even the employee resort to communication channels to send their reports and complaints to higher authorities. When managers issue policy-guidelines to their subordinates, then it is called DOWNWARD communication and when employees send their complaints and suggestions to their bosses, then this way of communication is given the name UPWARD communication. a. Downward Communication When message is forwarded from higher authorities to subordinates and lower class of employees, it is called downward communication. This communication can be verbal or in written form. Orders, guidelines, posters, job-sheets, bulletin, manuals are its main examples. The following messages are included in this type of communication: i. Order, guidelines and responsibilities pertaining to some job. ii. Confirmation regarding performance of some work. iii. Questions about work related feedback from subordinates. iv. Information concerning policies, rules, work systems, goals. v. General information regarding future programmes and progress of organization. This communication can be verbal, symbolic or in written form. The messages are sent through different ways like personal meeting, conference, speech, letter, memorandum, order, annual report, magazine, notice board etc. This communication is of great importance for those working at lower level because these are concerned with performance of work entrusted upon them Managers should lay more emphasis on certain matters such as appropriate planning, measures to win the confidence of subordinates and creating positive environment, because these are essential to make communication effective in the organization.

b. Upward Communication When flow of information is from bottom to top or to say when messages are sent by subordinates to higher authorities, then this system of communication is known as upward communication. For the freedom of this communication, it is necessary to have open door policy, suggestion system, survey system, management-workers meeting, joint management committee, participative attitude etc. in the business. Management comes to know the problems and sentiments of its workers and invites suggestions from them to brief reforms in work system. This increases the morale and productivity of workers. Messages can be of following types in this communication: i. Work schedules for the workers. ii. Personal problems of the workers. iii. Reactions, doubts, questions of the subordinates. iv. Difficulties concerning performing some jobs and suggestions to remove them. v. Criticisms regarding policies of management. vi. Work problems of subordinates.

2. Horizontal or Lateral Communication When exchange of messages takes place amongst employees, officers and departmental heads, this sort of communication is called Horizontal or Lateral Communication. The nature of this communication is co-ordinated type and is needed because of specialization of works. It may be both formal and informal depending upon the sort of communication. The objective inherent in this communication is to establish co-ordination within the organization so that activities and decisions are ensured in a quick and efficient fashion. Horizontal or Lateral Communication can be shown in the following way: Manager Finance -- Manager Production -- Manager marketing Supervisor Finance --- Supervisor Production -- Supervisor Marketing 3. Diagonal Communication

This is also known as line and staff communication. Sometimes experts are appointed to provide their best advisor to line authorities. These staff personnel work in advisory capacity. It depends upon the line authorities whether to accept or return their reports after going through the contents of submitted by staff personnel. Time involved in sending the message in this communication process is less. Meaning of the message does not change so the efficiency of employees is not disturbed. Relations are strengthened. It is more effective in nature too.

C. Types of communication on the basis of nature or approach Communication process may be classified into following three parts on the basis of nature or approach1. Informational Communication 2. Interpersonal Communication 3. Intrapersonal Communication 4. Organizational Communication 1. Informational CommunicationThe main elements of informational communication are sender, receiver of message and the medium of message. This communication is connected with the transmission aspects. The only purpose of informational communication is to provide information to other party. This is totally based on statistical, mathematical and scientific approach. Basically informational communication is based on information theory and cybernetics. 2. Interpersonal CommunicationInterpersonal communication emphasizes on behavior change. It includes psychological process like understanding, motivation and notice etc. together with language. It is individual. This communication emphasizes on listening and non-verbal factors. Feedback has its special significance in this communication. 3. Intrapersonal CommunicationIntra term represents to inside or within. Interpersonal communication reveals communication with others, whereas, intrapersonal communication is a situation of communication with his or her own or with the self. This involves the process of thinking and feeling. Intrapersonal communication is a method of communication that assists every individual to communicate with him or her own. It clarifies self-concept. It is an exercise to look within. This communication may also be inferred as self-talk. However it is verbal thinking in nature. There are positive aspects of self-talk. This is a form of inner speech or self dialogue, that is, what you say and how you direct yourself during working hours. This is a mode of self analysis and brings self-awakening. This also helps in overcoming negative feeling and helps in over coming emotional distress.

4. Organizational CommunicationOrganizational communication shows linear flow of information in organizational structure. For example, orders, targets, policies, programmes, memorandum letters, reports, programme statements, annual reports, enquiries, requests, employees grievances, programme charts and policy booklets etc. Thus, the approach of organizational communication is structural. D. Types of communication on the basis of Scope On the basis of scope, the communication process may be classified into following two parts: 1. Internal Communication 2. External Communication

1. Internal CommunicationUpward, downward and horizontal communication between top officials and their subordinates and between employees and units at various organizational levels is called Internal Communication. Information, rules, orders, directions, procedures, work reports, organizational charts, suggestions from subordinates, complaints, views, doubts, requests and grievances etc. are included in this type of communication. Internal communication plays an important role in the operation of the business. 2. External CommunicationThere are so many groups in the external environment of the business like- consumers, suppliers, government, pressure groups, society, investors and research scholars etc. Communication between business and all these groups is called external communication. This communication is regular and continuous. Various types of messages and activities are included in external communication likeinvestment trends, market researches, receiving the orders, sending the orders for goods and other materials, correspondence with financial institutions, obeying govt. laws, import-export, capital control, profit distribution, hearing the grievances of local public and discussions with the trade union leaders, government, competitive business concerns etc. E. Types of communication on the basis of Medium On the basis of medium, communication can be classified into four parts1. Verbal Communication 2. Written Communication 3. Non-verbal Communication 4. Audio-Visual Communication Note- Types of communication on the basis of medium have been described in detail in Chapter1. F. Types of Communication on the basis of Contact On the basis of contact, communication may be classified into following parts: 1. Individual communication 2. Group Communication 1. Individual CommunicationIn day to day life, one has to deal with number of individuals for different purposes. In employment situation or in business one has to interact with people within the organization : these may be your peers or counter parts or co-workers, superiors or subordinates who may work with you in your own unit, branch, division or in other part of the business. An individual may also have to interact with people across and outside the organization, such as, customers, vendors, service providers, professionals, visitors, government officials, business representatives and members of the community. Out of these people, some of them may well wishers, acquaintances or stranger- people of same age, older, younger that you- having similar or higher or lower status- with similar educational and skill background or otherwise. Your relationship with others determines the communication pattern and your language. The relation also determines your body language and what you say. For example the language of communication with peers, superiors and subordinates will be different. Your body language, sign, gestures, postures also tell people a lot in individual communication. 2. Group CommunicationA group is a collection of more than one individual who share with each other and work to achieve common goals. Each group has its own unique identity and has a distinct personality of its own. These groups may be formal or informal on the basis of relationship. They are very useful in contemporary life.

Communication facilitates interaction among the members of a group. Group discussion is often used way in which a group interacts. Members of a group interact, in such a way that each can influence and be influenced by the others. The interaction process occurs through communication which may takes place often in face to face manner. However other channels of communication such as internet, intranet are also being widely used. The substance that creates a group and the glue that hold it together is the verbal and non-verbal communication that occurs among members. Even group member who communicate by e-mail often convey non-verbal signals by using punctuation, such as exclamations for emphasis or question mark for queries. In a group, members continuously send and receive signals from each other. This constant sending and receiving is spontaneous rather than pre cooked. The group activity may be performed at ease by the use of group communication. GRAPEVINE Informal communication is also known as Grapevine, having no beginning or end. This is basically a channel of horizontal communication in which people working at the same level of hierarchy communicate with each other with perfect ease. Grapevine includes rumors, gossips, apprehensions, baseless news, distorted facts, propaganda and tangled facts. It is called rumors mill. Authenticity of news is doubtful. Information flows with remarkable speed in grapevine. It is just like fog in which truth and reality are lost. It may or may not be true, because sometimes news being spread about the person or organization contains elements of truth. Grapevine, if not based on truth and facts produce damaging effects. Therefore, efforts should be made to stop such talks from spreading in the organization. Definition According to Louis A. Allen, Grapevine is a horizontal communication channel which is related to those persons who are associated with informal communication systems. Thus, grapevine is actually informal communication and the process adopted in this communication is never same. Types of Grapevine Channels 1. Single Stand chain 2. Gossip chain 3. Probability chain 4. Cluster chain 1. Single Stand ChainIn this type a person communicates the message in a chain i.e. communication flows in a straight line. The person getting the message passes it further. 2. Gossip ChainIn this type of Grapevine, message can be given to any person on a non-selective basis. The source of the message becomes hard to determine in this type of grapevine. 3. Probability ChainThe information is passed from one person to other persons randomly. Sender is particularly interested in any person (receiver) in this type of grapevine. 4. Cluster ChainIn this type of Grapevine, information is communicated to those on whom sender has got faith, i.e. information is passed only to selected persons. They too pass it further to their selected ones. Importance and Evaluation of Grapevine In any organization, grapevine is important form management and workers point of view. This communication spreads like wild fire. Every person tries to pass on the message received by him from any source and so the message spread swiftly. This confirms the policies, decisions and other matters initiated at the level of management. People feel psychological satisfied with grapevine and shows the cohesion in the organization.

This type of communication has its drawbacks too, the message conveyed in this type of communication are unorganized and not trust worthy. These create confusion and secrecy of the organizational functioning is harmed. This channel of communication can be effective, when organization is working on the open door policy. Managers should organize meetings with workers to put a stop on rumors. Thus, this channel of communication can be useful for the business if it is used with care and proper checks.