Business CommunicationThe Basics

Mukesh Dev MBA 2011-13

Organisational Communication
Internal Communication
When people within the organization communicate with each other. They do so to work as a team and realise the common goals. It could be official or unofficial. Could be individual to individual ,individual to group, department to department etc. Much of this may be in the oral form and the tone may be informal.

Organisational Communication
External Communication
Transmission of information to people outside the organisation (Eg: Customers, Investors, suppliers etc.). Mainly formal and largely documented, but there is an increasing trend to make it informal. Importance of external communication: 1.Touch with the External Environment. 2.Handling Competition 3.Building PR and more

Organisational Communication
People also communicate within the organization at a personal level. This is called informal communication. Modes of internal communication include face-to-face and written communication(Memos, Emails, Notices etc)

The Communication Process Basic Model

The Communication Process Basic Model

1. Sender has idea

The Communication Process Basic Model

1. Sender has idea

The Communication Process Basic Model

1. Sender has idea

2. Sender encodes idea in message

The Communication Process Basic Model

1. Sender has idea

2. Sender encodes idea in message

The Communication Process Basic Model

1. Sender has idea

2. Sender encodes idea in message

3. Message travels over channel

The Communication Process Basic Model

1. Sender has idea

2. Sender encodes idea in message

3. Message travels over channel

The Communication Process Basic Model

1. Sender has idea

2. Sender encodes idea in message

3. Message travels over channel

4. Receiver decodes message

The Communication Process Basic Model

1. Sender has idea

2. Sender encodes idea in message

3. Message travels over channel

4. Receiver decodes message

The Communication Process Basic Model

5. Feedback travels to sender 1. Sender has idea 2. Sender encodes idea in message 3. Message travels over channel 4. Receiver decodes message

The Communication Process Basic Model

5. Feedback travels to sender 1. Sender has idea 2. Sender encodes idea in message 3. Message travels over channel 4. Receiver decodes message

The Communication Process Basic Model

5. Feedback travels to sender 1. Sender has idea 2. Sender encodes idea in message 3. Message travels over channel 4. Receiver decodes message

The Communication Process Basic Model

5. Feedback travels to sender 1. Sender has idea 2. Sender encodes idea in message 3. Message travels over channel 4. Receiver decodes message

6. Possible additional feedback to receiver

The Communication Process Basic Model

5. Feedback travels to sender 1. Sender has idea 2. Sender encodes idea in message 3. Message travels over channel 4. Receiver decodes message

6. Possible additional feedback to receiver

The Communication Process Basic Model

The Communication Process

Phase 1: Sender Has an Idea

Channel And Medium

Phase 6: Receiver Sends Feedback

Phase 2: Sender Encodes Idea

Phase 5: Receiver Decodes Message

Phase 3: Sender Transmits Message

Six-Phase Process
Situation

Phase 4: Receiver Gets Message

Elements of Communication
1.Sender-The person who conveys the message is known as communicator or sender. 2.Encoding of Message-Message is the subjectmatter of any communication. It may involve any fact ,idea, or information. 3.Communication Channel The communicator has to choose the channel for sending the information. It is the link that connects the sender and the receiver.

Elements of Communication
4.ReceiverThe person who receives the message is called receiver .It is the receiver who receives and tries to understand the message. 5.DecodingThe receiver translates the message into words for the purpose of understanding. Decoding helps the receiver to derive meaning from the message.

Elements of Communication
6.Feedback Communication often leads to further communication. Feedback is the receivers response to the message sent by the sender.

Functions of Communication

Functions of Communication
1. Information Sharing :-The main purpose of
communication is to transmit information to individual or groups. These could be in the form of policies and rules; changes and development in the organisation. 2. Feedback :- There is need to provide feedback to employees on their achievements ,to the department on their performance, and top the higher management on the fulfillment of goals.

Functions of Communication
3. Influence :- Information is power and a significant purpose of communication is to influence people. The manager communicates to create a conducive environment, right attitudes and congenial working relationship. 4. Problem solving :- In many cases communication helps in solving problems. Communication between the management and unions helps in finding solutions and consensus on issues. 5. Facilitating Change :- The effectiveness of a change introduced in an organization depends to a large extent on the clarity and spontaneity of the communication.

Functions of Communication
6. Assists in decision making :- The most important function of every manager is to take critical decisions. In order to make accurate and appropriate decisions , he needs to obtain information that is available in various channels of communication. 7. Group Building :- Communication helps in building relationships. If communication breaks down , the group may disintegrate. 8. Gate keeping :- Communication helps to build linkages of the organization with the outside world. The organization can use its environment to increase its effectiveness.

Functions of Communication
9. Conveying the right message : The main objective of communication is to convey the right message to the right person. It should carry the same meaning which has been conveyed, so that it may be translated into action effectively. 10. Helps in co-ordinating efforts Communication is an effective tool for coordinating activities of different persons engaged in running a business. 11. Good industrial relations: Communication develops good industrial relations as it conveys feelings, ideas, opinions and viewpoints of different parties. The two parties namely the management and the subordinates come closer through communication.

Functions of Communication
12. Developmental of managerial skills:- Communication helps managers to understand human behaviour at work. Facts, ideas, opinions, information and feelings add value to the knowledge of managers about happenings, within the organization and the behaviour of people. 13. Ensuring effectiveness of policies:- An organisation formulates policies and programmes to guide the work force. Effectiveness of policies can be judged from the success which depends upon an effective communication system. 14. Motivating people:- Various communication devices are used by managers to declare rewards and incentives to motivate people.

Functions of Communication
15. Performance feedback:- People working in an organization need to know how well they are performing and what needs to be done to achieve and exceed standards set by the management? 16. Job instruction:- Managers need to communicate to their subordinates job instructions from time to time. Failure on this may lead to confusion, wastage and inefficiency, affecting productivity and bottom lines. 17. Growth of businesses:- Increasing number of offices and branches for an organisation requires an efficient and effective communication network for an healthy growth.

Functions of Communication
18. Controlling people:- Every organisation has its own rules, regulations and procedures framed by the management in order to perform various activities to regulate the behaviour of its people. 19. Emotive function:- Communication facilitates the expression of feelings and satisfaction . The grievance resolution machinery along with managers and supervisors are often trained to handle employees emotional problems and complaints. 20. Improves Public Relations

Types of Communication

Types of Communication
Communication in organization can be studied under: A. Channel or Network
(1)Formal (2) Informal.

B. Direction of Message
(1) Downward (2) Upward (3) Horizontal (4)Diagonal

C. Method of Expression
(1)Oral (2)Written (3)Gestural

Channels of Communication
Formal Communication Refers to the official communication which takes place following the chain of command in the organization. Advantages of Formal Communication:
1)Orderly Flow of Information 2)Identified Source 3)Control 4)Answerability for Actions 5)Justification of authority

Channels of Communication
Disadvantages
1)Time consuming 2)Lack of Personal Touch 3)Distortion

Channels of Communication
Informal Communication
Communication between individuals and groups which are not officially recognised. Also called grapevine.

Channels of Communication
Grapevine has the following features:
1.It transmits in every direction 2.Grapevine is selective with regard to the person who receives the information. 3.Grapevine is based on people rather than task. 4.Grapevine does not follow a fixed pattern.

Channels of Communication
Advantages of Informal Communication:
1)Social Relations 2)Need satisfaction 3)Speed 4)Feedback 5)Better Human Relations

Channels of Communication
Disadvantages of Informal Communication: 1.Incomplete Information 2.Distortion 3.Unrealiability 4.Lack of Authenticity 5.Problem in Fixing Responsibility

Direction or Flow of Communication

Downward Upward Horizontal Diagonal

Downward Communication
Merits 1)Mission and Goals 2)Plans and Policies 3)Duty and authority 4)Job satisfaction
Limitations 1.Distortion 2.Incomplete Information 3.Time Consuming 4.Filteration of Information.

Upward Communication
Media of Upward communication 1.Suggestion System. 2.Grievance Procedure . 3.Open-door Policy. 4.Questionnaries 5.Ombudsperson

Upward Communication
Limitations 1. Fear and Apprehensions 2. Filteration 3. Time Consuming 4. Inattention by Superiors 5. Low Morale.

Horizontal or Lateral Communication

It refers to the transmission of information among persons of the same level. Objectives of Lateral Communication 1.To coordinate among various individuals or departments. 2.To solve problems which involve the efforts of various specialists.

Horizontal or Lateral Communication

3) To resolve conflicts among various employees of the department. 4)To exchange information among various employees of the department. 5)To promote social relations among employees in the organization

Horizontal or Lateral Communication

Merits of Horizontal communication 1. It speeds up the flow of work in the organization 2. It facilitates problem-solving among members at the same level and brings about co-ordination. 3. It helps in reviewing activities assigned to people working at identical positions. 4. It develops mutual trust and confidence. 5. It relieves top managers burden of solving problems of lower levels.

Horizontal or Lateral Communication

Limitations of Horizontal Communication 1.Managers lack knowledge of other functional areas. 2.Personal likes and dislikes among different work group can obstruct free flow of information. 3. Differences in perception and attitudes of functional heads can be counter productive in horizontal communication.

Diagonal Communication or Crosswise communication

Diagonal communication cuts across different functions and level in an organization. Safeguards to be taken in Crosswise communication Crosswise communication builds up appropriate crosswise relationships. Subordinates refrain from making commitments beyond their authority. Subordinates keep superiors informed of important interdepartmental activities.

Diagonal Communication or Crosswise communication

Oral Informal meetings Formal conferences Project organization meetings Lunch hour meetings Written Company news paper/magazines Bulletin boards In-house journals

Parting Note
Your ability to communicate is the most important skill you can develop to get on to the fast track in your career Brian Tracy