Business Communiction

Business Communication

Unit 1

Unit 1

Basic Principles of Communication

Structure: 1.1 Introduction Objectives 1.2 Understanding Communication 1.3 The Communication Process 1.4 Barriers to Communication 1.5 The Importance of Communication in the Workplace 1.6 Summary 1.7 Terminal Questions 1.8 Answers

1.1 IntroductionCommunication is a non-stop process and is a vital ingredient for success, both within and outside the workplace. It is a part of soft skills, as opposed to domain or technical knowledge, which is a part of hard skills. A formal study of business communication is important, since the average business executive today spends a good part of his time on the job communicating in some form or the other. In this unit, we will see how communication involves certain key elements, no matter in what context it takes place. We will also examine some of the general problems that come in the way of smooth communication and ways of overcoming these problems. Objectives After studying this unit, you will be able to: Explain the general purpose of communication Describe the key elements in the communication process Identify the barriers to communication and suggest ways to overcome these barriers Recognize how good communication contributes to managerial success

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1.2 Understanding CommunicationCommunication in simple terms is a transfer of information between people, resulting in common understanding between them. Communication has been defined differently by different writers and behavioral theorists. Some popular definitions are According to Newman and summer, Communication is an exchange of facts, ideas, opinions or emotions by two or more persons. According to Allen Louis, It is the sum of all the things one person does when he wants to create an understanding in the mind of another. Bellows, Gilson and Odirone define communication as A communion by words, letters, symbols or messages, and as a way that one organization member shares meaning with the other. Hoben defines communication as The verbal interchange of thoughts or ideas. In the words of Anderson, Communication is the process by which we understand others and in turn endeavor to be understood by them. It is dynamic, constantly changing and shifting in response to the total situation. According to Berelson and Steiner, communication is the transmission of information, ideas, emotions, skills, etc., by the use of symbols, words, pictures, figures, graphs, etc. It is the act or process of transmission that is usually called communication. In the words of Fotheringham, Communication is a process involving the selection, production and transmission of signs in such a way as to help a receiver perceive a meaning similar to that in the mind of the communicator.

From the above definitions, it is clear that communication has the following characteristics It is Unavoidable It is impossible to not communicate, since we communicate unintentionally all the time, even without the use ofSikkim Manipal University Page No. 2


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words. Our body language, the way we dress, the importance we give to arriving on time, our behavior and the physical environment in which we work, all convey certain messages to others. It is a Two-way Exchange of Information Communication is sharing of information between two or more persons, with continuous feedback. It is a Process Each message is part of a process and does not occur in isolation. This means that the meaning attached to a message depends on what has happened before and on the present context. For example, your bosss response to your request for a promotion will depend on your past relationship with him, as well as his mood at that particular moment. It involves a Sender and a Receiver of Information Any communication starts with a sender of a message and requires a receiver to attach some meaning to that message. It could be Verbal or Non-verbal Communication could be through the use of words in spoken or written form, or through the use of body language such as gestures and facial expressions. It is successful when the Receiver Interprets the Meaning in the Same Way as that intended by the Sender The receiver does not always attach the same meaning to a message as the sender. When the message is wrongly interpreted, the communication is a failure. This may be due to several reasons, which we will examine later in this unit.

Self Assessment Question Fill in the blanks 1. For communication to take place, there must be a _________________ and a ________________ . 2. Our dress code is an example of __________________ communication. 3. Communication is accurate when the _____________ that is sent is the same as the ________________ that is attached to it. 4. Communication can take place using ____________, _____________ or ________________ . 5. Communication may best be described as a _____________ .Sikkim Manipal University Page No. 3


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Let us now look at communication as a process and discuss its key elements.

1.3 The Communication ProcessIrrespective of the setting in which communication takes place or the number of people that are involved, all communication consists of certain key elements. The Communication Model shown below illustrates each of these elements. Model of CommunicationNOISE

SENDER/ ENCODER Channel(s)

MESSAGES Channel(s)

RECEIVER/

DECODER

(SENDS & RECEIVES)NOISE

(RECEIVES & SENDS)

Sender or Encoder This is the person who transmits a message. For example, a manager is writing a letter of apology to a customer regarding a defective product, or a sales manager making a presentation to his sales team. Receiver or Decoder The person who notices and decodes, or attaches some meaning to a message. Decoding may not always be accurate and a wrong meaning may be attached to a message. For example, a friendly joke might be taken as an offense, or feedback given to a subordinate by a superior might be taken in the wrong sense. Message This is any signal that triggers the response of a receiver. Messages may be intentional (as in the example of the sales presentation given above) or unintentional (non-verbal signals such as yawns that convey the message of boredom).Sikkim Manipal University Page No. 4


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Channel This refers to the medium or the method used to deliver the message. As a business executive, you will often have a choice of channels. For example, you could communicate with a customer through a letter, through email or telephone. Feedback Most communication is two-way. Receivers generally respond to messages for example, students may ask questions during a lecture session and an employer may tell an employee that he has to think about his proposal. This response to a senders message is called feedback. This kind of feedback is oral. Sometimes feedback could also be written, as when you respond to a customers letter of complaint, for example. At other times, feedback could be non-verbal, as in smiles and nods of appreciation during a talk or presentation. Even failure to respond could be considered as feedback, since it may indicate a lack of interest or indifference to the senders message. Due to the element of feedback, people are simultaneously senders and receivers of information in face-to-face communication. Noise Communication fails when the message received is not identical to the message that is sent. Several factors could interfere with the exchange of messages. Noise refers to all these factors that disrupt the communication and could be classified under the following typesPhysical Noise Distracting sounds, poor acoustics, or just information overload could interfere with the listening process. Physiological Noise Hearing or other disabilities, fatigue, or physical illness could come in the way of both speaking and listening. Psychological Noise Sometimes emotions within the sender or receiver such as preoccupations, hostility, fear or lack of interest could interfere with the speaking or listening process. Context This refers to the setting in which the communication takes place and could sometimes determine the success or failure of the communication. Context could be classified as followsPhysical context refers to the physical surroundings for example a work or social environment, in which the communication takes place. Asking your boss for a promotion might be received differently, depending onSikkim Manipal University Page No. 5


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whether the communication takes place in your office, your bosss office, at a company party or over lunch at a restaurant. Social context refers to the relationship between the sender and the receiver. Taking the same example, asking for a promotion is likely to be received differently, depending on how well you get along with your boss and whether you are personal friends or not. Chronological context refers to time related factors that could influence the communication. For example, is your request made first thing in the morning or at the fag end of the day? Is it made during or after work hours? Is it made at a time when the company is going through problems such as a strike in the factory, or major losses? Cultural context refers to the similarity of backgrounds between the sender and the receiver, such as age, language, nationality, religion and gender. These factors could influence the communication favorably or unfavorably. Each of the elements discussed above contributes to the success of the communication. In other words, communication can go wrong if any of the following elements go wrong 1. The wrong person sends the message. For example, a junior accountant in a company writing a letter to a bank, asking for a loan for a project worth several crores, is not likely to get the banks approval. 2. The message is unclear or badly worded. Or there are too many messages, leading to confusion and information overload. 3. The wrong channel of communication is chosen. Placing an ad for a liquor product in a religious magazine for example, is not likely to be received favorably! 4. The message is wrongly interpreted, i.e., the receiver attaches the wrong meaning to the message. 5. The feedback is not adequate to ensure understanding. 6. Physical, physiological or psychological noise distorts the message. 7. The communication takes place in the wrong physical, social, chronological or cultural context. This brings us to the next topic, namely the barriers or obstacles to effective communication.Sikkim Manipal University Page No. 6


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Activity Select any situation at your home, workplace or school/college in which you were involved. Prepare a brief summary of the communication process, using the various elements of communication discussed in this sub unit.

Self Assessment Question Are the following statements true or false? 6. Communication is mostly through words. 7. The communication message is the same as the meaning of the message. 8. Communication is a dynamic process. 9. One reason for failure of communication is wrong interpretation of the message. 10. The success of communication depends only on the sender of the message. 11. Immediate feedback is possible in the case of face-to-face communication. 12. You feel that your professor does not have anything new to say and do not listen to him. This is an example of physiological noise leading to communication failure. 13. Your boss gives you a good performance review at a time when the company is making profits. This is an example of chronological context influencing the communication.

1.4 Barriers to CommunicationIn the earlier section on the communication process, noise was mentioned as one of the elements of communication. Noise is essentially a barrier to communication and we distinguished between physical noise, physiological noise and psychological noise. There are many other barriers to communication, an understanding and analysis of which are needed before coming up with ways to eliminate or minimize them. These barriers may be classified as follows


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1. Environmental Barriers This is the same as physical noise, which could be in the form of distracting sounds, an overcrowded room, poor facilities and acoustics, all of which may hinder the ability to listen to and understand the message. 2. Individual Barriers A major barrier to interpersonal communication is a tendency to judge, evaluate, approve or disapprove of the views of another person. This happens particularly in situations where we have strong feelings about something. In such cases, we tend to block out the communication and form our own viewpoints. 3. Organizational Barriers In organizations that are too hierarchical, that is, where there are multiple layers, messages may have to pass through many levels before they finally reach the receiver. Each level may add to, modify or completely change the message, so much so that it becomes distorted by the time it reaches the intended receiver. In other words, there is likely to be loss of meaning and the message may not reach the receiver in the same way as it was intended by the sender. The following example illustrates an organizational barrier to communication. By the time the message is passed down from the Chief to the lower level Executives, it is distorted completely, so much so that the original message is interpreted differently by each level in the organization The Chief of the Space Center gets to know about the possibility of seeing Halleys Comet and decides that the entire organization should witness this spectacle. He sends a memo to the Director Tomorrow evening, at 20:00 hours, we will be able to see Halleys Comet in the sky through the naked eye. Since this is not an everyday event, everyone at the Center should assemble outside in their best clothes to watch it. If it rains, we will not be able to see it very well, in which case everyone should assemble in the Canteen. To Director By order of the Chief


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The Director then sends the following memo to various Executive DirectorsFormatted: Font color: Black

By order of the Chief, we will be able to see Halleys Comet at 20:00 hrs, tomorrow evening. If it is raining, we shall not be able to see it very well on site, in our best clothes. In that case, the disappearance of the Comet will be followed through in the Canteen. This is something which we cannot see happening every day. Director To Executive Directors

Formatted: Font color: Black

The Executive Departments

Director

sends

out

memos

to

the

Heads

ofFormatted: Font color: Black Formatted: Font color: Black Formatted: Font color: Black

By order of the Chief, we shall follow through, in our best clothes, the disappearance of the Comet in the Canteen at 20:00 hrs, tomorrow evening. The Chief will tell us whether it is going to rain. This is something which we cannot see happening everyday. Executive Director To Heads of Departments

The Heads of Departments send this message to their ManagersIf it is raining in the Canteen tomorrow evening, which is something we cannot see happening everyday, our Chief in his best clothes will disappear at 20:00 hrs. Head of Department To All Managers

Finally, each Manager sends the following notice to their Executives Formatted: Font color: Black

Tomorrow evening, at 20: 00 hrs. Our Chief will disappear. It is a pity that we cannot see this happening every day.

Formatted: Font color: Black Formatted: Font color: Black

Another type of organizational barrier is a departmental barrier. This means that each department in an organization functions in isolation and there is no co-ordination or communication between them.Sikkim Manipal University Page No. 9


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4. Channel Barriers In the earlier section, it was pointed out that communication can fail due to any of the different elements going wrong. Wrong choice of channel is one of the main barriers to communication. Using a wrong medium of advertising, or conveying a message orally when a written letter would be more appropriate, are examples. The written channel is more appropriate when the communication is more formal or for keeping things on record, while emotional messages such as feelings about co-workers are better conveyed orally. 5. Linguistic and Cultural Barriers When the sender of the message uses a language that the receiver does not understand, the communication will not succeed. Either the sender may be using a different or foreign language, or the language used may be too highly technical for the receiver to understand. Linguistic barriers may also occur in cross-cultural advertising and distort the communication, when translating campaigns or slogans literally from one language to another. For example, Pepsis slogan Come Alive with Pepsi, when translated into Chinese, read Pepsi brings your ancestors back from the grave! Cultural differences refer to differences in values and perceptions, which may affect the interpretation of the message by the receiver. For example, a joke about women may be taken in the wrong sense if the receiver belongs to a culture where women are highly respected. 6. Semantic Barriers The word semantics refers to the meaning of words and the way in which they are used. For example, different words may have different meanings in different cultures. Failure to take this into consideration could lead to serious blunders. Example : Saying The new product launch went like a bomb in British English would mean that the new product launch was a success. On the other hand, saying The product launch bombed in American English would mean that the new product was a disaster. 7. Non-verbal Barriers This refers to the non-verbal communication that goes with a particular message. Non-verbal communication includes tone of voice, body language such as gestures and facial expressions, etc. We will be discussing this in great length in a later unit. If the tone of voice andSikkim Manipal University Page No. 10


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body language are negative, the communication will fail, however positive the spoken and written message. For example, if you happen to meet a long lost friend and say I am delighted to meet you, but in a sad tone of voice, the exact opposite message will be conveyed! Therefore, it is important to avoid giving conflicting signals, through the use of non-verbal communication. 1.4.1 Overcoming the Barriers to Communication Certain steps can be taken, both at the organizational level, as well as at the individual level, to effectively deal with the barriers to communication, in order to try to minimize them, if not eliminate them entirely Organizational Action 1. Encourage Feedback Organizations should try to improve the communication system by getting feedback from the messages already sent. Feedback can tell the managers whether the message has reached the receiver in the intended way or not. 2. Create a Climate of Openness A climate of trust and openness can go a long way in removing organizational barriers to communication. All subordinates or junior employees should be allowed to air their opinions and differences without fear of being penalized. 3. Use Multiple Channels of Communication Organizations should encourage the use of multiple channels of communication, in order to make sure that messages reach the intended receivers without fail. This means using a combination of both oral and written channels, as well as formal (official) and informal (unofficial) channels of communication. The types of channels will be discussed in detail later, in a separate unit. Individual Action 1. Active Listening This means listening to the meaning of the speakers words, rather than listening without hearing, or passive listening. Passive listening is a barrier to communication, whereas real communication takes place when we listen actively, with understanding. Listening is a skill which can be developed through proper training.


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2. Careful wording of messages Messages should be worded clearly and without ambiguity, to make sure that the message that is received is the same as the message that is sent. 3. Selection of Appropriate Channels Individuals should be competent enough to choose the right communication channel, depending on the situation. Channels of communication and the criteria for selection of channels will be discussed in detail in a later chapter. Self Assessment Question 14. Match the following i. Environmental barrier ii. Individual barrier iii. Understanding customers problems iv. Suppressing the views of junior employees v. Speaking with a foreign accent a. b. c. d. Psychological noise Physical noise Organizational barrier Active listening

e. Written communication channel vi. Messages with multiple meanings f. Eye movements vii. Non-verbal communication g. Cultural barrier viii. Letter addressing customer complaints h. Semantic barrier

1.5 The Importance of Communication in the WorkplaceCommunication is the nerve center of business today. As you go up the corporate ladder, you will find that communication skills are required, more than technical skills. Communication research has revealed that among the factors most important for managerial success, communication skills rank above technical skills. Several surveys conducted among people who have been successful in their professions have indicated that communication skills are more vital to job success than subjects taken in college. Communication has assumed even greater importance today, since the new model of business is based on teamwork, rather than on individual action. Teamwork requires greater coordination and communication. Communication is also required all the more in this age of information and technology. Without communication and human skills, technology willSikkim Manipal University Page No. 12


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overwhelm an organization. Communication helps to make sense of technology and to manage all this information. For example, communication is required to explain a new computer program or software. While computers can perform routine tasks, jobs like responding to customers needs require a high degree of communication skills. Effective communication serves the following specific purposes in an organization Greater Awareness of Organizational Goals and Teamwork When there is open communication between superiors, co-workers and subordinates, there is smooth flow of information regarding the goals of the organization. Coordination between the different departments in particular, leads to greater motivation to work together towards achieving a common organizational goal, rather than working in isolation. Better Employer-employee Relationships By listening to employees, showing empathy and giving them the freedom to express their opinions without fear of being repressed, a manager can create a climate of openness that leads to better work relationships. Employees will then feel more comfortable in approaching their superiors and discussing any matter with them. Problem-solving Effective communication can help resolve conflicts between co-workers, work related and performance related problems. Faceto-face communication is especially suited for achieving this task, since it is one to one and highly personalized in nature. Improved Performance Effective communication by managers at the time of appraising the performance of their employees can point out areas for improvement. A constructive review of performance, through which a manager gives positive feedback and counsels the employee, instead of criticizing him for poor performance, can motivate the employee to perform better. Stronger Link between Managers and the External Environment Apart from internal communication within the organization, effective communication by managers with external audiences such as customers, government, bankers, media and suppliers leads to a better rapport with them.A manager will be able to understand thePage No. 13



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needs of his customers, be aware of the presence of quality suppliers of material, of government regulations and of the expectations of the community at large, only through proper communication. Self Assessment Question Are the following questions true or false? 15. Listening is not a part of communication skills. 16. Communication is needed only between superiors and subordinates. 17. External communication is as important as internal communication. 18. Team skills do not require the ability to communicate effectively. 19. A destructive review of performance can lower employee morale.

1.6 SummaryIn this unit, we have looked more at communication in general, its nature and principles. Although there is no single and correct definition of communication, most communication theorists and writers on the subject agree that communication has certain characteristics It is a non-stop process like breathing, since we communicate all the time in some form or another. Communication is not only through the spoken and written word. A large part of it is also non verbal. Body language is a part of non-verbal communication. For communication to take place, there must be a sender and receiver of a message. Communication usually involves a two-way exchange of information, where the receiver provides some feedback in some form or the other. Communication may be said to be accurate when the intended message is understood in the same way by the receiver. This unit also described the communication process in detail. Irrespective of the number of people involved, communication always includes some key elements a sender who transmits a message, a receiver who decodes or attaches meaning to a message, a channel or medium through which the message is sent, feedback given by the receiver to the sender, noise that can disrupt the communication at any time and the context in which the communication takes place.Sikkim Manipal University Page No. 14


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Communication is not always successful and can go wrong if any of the above elements go wrong. There are a number of barriers or obstacles to smooth communication. These may be categorized as follows External or physical barriers, such as distracting sounds Individual barriers, such as ego problems Organizational barriers, such as lack of coordination between departments Linguistic or cultural barriers, such as use of a foreign language Semantic barriers, such as multiple meanings of words Channel barriers, such as use of a wrong medium Non-verbal barriers, such as conflicting signals This unit also dealt briefly with organizational communication and how effective communication can enhance performance in the workplace. As one goes up the corporate ladder, communication skills are more important for success than technical skills. Communication contributes to success in the workplace, in the following ways It leads to better information flow and teamwork It creates a climate of openness and trust It strengthens employer-employee relationships It helps to resolve conflicts It improves morale and enhances performance It links managers with the external environment of the organization

1.7 Terminal Questions1. Describe a situation you experienced where the communication was a failure. Analyze the problem by identifying the element of the communication process that contributed to the failure e.g. wrong sender, wrong channel, etc. 2. List out some barriers that stand in the way of your own communication. What are some ways in which you could overcome these barriers? 3. In your opinion, what is the most important way in which effective communication contributes to managerial success?


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1.8 AnswersAnswers to Self Assessment Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. Sender; receiver Non-verbal Message; meaning Words; symbols; pictures Process False False True True False True False True i) b ii) a iii) d iv) c v) g vi) h vii) f viii) e False False True False True

Answers to Terminal Questions 1. Refer 1.3 2. Refer 1.4 3. Refer 1.5


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Unit 2

Unit 2Structure: 2.1 2.2 2.3 2.4 2.5 2.6

Types and Channels of Communication

Introduction Objectives Types of Communication Classification of Communication Channels Summary Terminal Questions Answers

2.1 IntroductionIn the introductory unit, we looked at the communication process in detail and examined each of the elements of communication. The channel or medium of communication was mentioned as one of the key elements. It was pointed out that selection of a wrong channel can lead to communication failure. In fact there is a saying that the medium is the message. This means that the choice of a channel itself can speak volumes, without a written or spoken message. For example, advertising a product in an exclusive magazine conveys the message that the product is of high quality. Given their importance, this unit will focus entirely on channels of communication. The relative advantages and disadvantages of the different types of channels will be explained and guidelines will be offered on how to choose the right channel in a particular business situation. Objectives After studying this unit, you will be able to : Distinguish clearly between the different types of communication List the advantages and limitations of each type of communication Categorize the different channels of communication Select which channel to use in different situations, as a business communicator


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2.2 Types of CommunicationBroadly, communication may be divided into two areas verbal and nonverbal communication. Verbal communication, or communication through words, provides the opportunity for personal contact and two-way flow of information. A large part of our communication, whether at work or outside, is verbal in nature. Verbal communication in turn, may be divided into two areas oral and written communication. Oral communication may be defined as a process whereby a speaker interacts verbally with one or more listeners, in order to influence the latters behavior in some way or the other. Example In a business context, a manager doing a performance appraisal with an employee, or a sales manager making a sales plan presentation to his sales team. In the first example, the manager may point out areas for improvement and in the second case, the sales manager may be explaining how to achieve new sales targets. Oral communication in a business context can take the form of meetings, presentations, one-to-one meetings, performance reviews and so on. Written communication is a process whereby a writer interacts verbally with a receiver, in order to influence the latters behavior. Example A manager writing a letter of apology in response to a customers complaint regarding poor service. Written communication at the workplace can take several forms such as letters, memos, circulars, notices, reports and email. We will examine some of these in more detail in later chapters. Non-verbal communication, on the other hand may be defined as communication without words. It refers to any way of conveying meanings without the use of verbal language. The game of dumb charades is a perfect example. Non-verbal communication is generally unintentional, unlike verbal communication. All of us tend to communicate silently and unknowingly send signals and messages by what we do, apart from what we say. Gestures, facial expressions, posture and the way we dress, are all part of non-verbal communication.Sikkim Manipal University Page No. 18


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Non-verbal communication can have a greater impact than verbal communication, since how you say something is sometimes more important than what you say. Although non-verbal communication can affect both our personal and business relationships, it is particularly important in the workplace. Consider the following example Your boss has asked you to make a presentation on your suggestions for improving the organization. You take him at his word and come prepared with an elaborate presentation and a list of ideas. However, as you make your presentation, he yawns repeatedly, sits back casually, looks out of the window, clenches his jaw muscles and begins to frown. At the end of your presentation, he rises abruptly from his chair, says thank you for your ideas in an angry voice and gives you a curt handshake In the above example, the boss, through his non-verbal behavior, conveys a message beyond the spoken word which he does not really want to hear your suggestions. Therefore, while the spoken or written words may be perfect, the non-verbal aspects could convey the exact opposite meaning. We will discuss the different aspects of non-verbal communication in more detail, later in this unit. 2.2.1 Verbal Communication We communicate most of our ideas to others through verbal messages, i.e., through spoken or written messages. However, verbal messages have some drawbacks the message may not be properly worded, or the message may be misunderstood, or interpreted differently from its intended meaning. For example, even a simple statement like lets discuss this matter tomorrow might be interpreted by one person as lets meet tomorrow and by another as lets discuss this over the phone. Miscommunication through verbal messages could be avoided by following a few simple guidelines Avoid Words with Multiple Meanings: Words sometimes tend to have different meanings in different cultures. Therefore, when communicatingPage No. 19



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in a cross-cultural context, it is particularly important to avoid literal translation of words, since they might have a negative meaning in another culture. Example: The advertising campaign for Electrolux vacuum cleaners with the slogan Nothing sucks like an Electrolux, was introduced without any changes in the American market. However, the product failed since the word sucks which is American slang, has a negative connotation which means bad. Even simple words used in the same cultural context could have multiple meanings and be interpreted differently. Example: If I ask you What kind of shape are you in?, you might understand it to mean what kind of financial position you are in, whereas the intended meaning might have been What kind of mental or physical shape are you in?. Therefore, when communicating verbally, it is important to use words that are precise, unambiguous and have a single accepted meaning. Ensure Clarity through Highly Specific Statements: Instead of describing an object or idea in general terms or in abstract language, use highly specific language to avoid a variety of interpretations. Example If you are calling the IT support staff in your organization to fix a problem with your computer, instead of saying My computer doesnt work, it is better to state in more precise terms that I get a message saying that my computer is not responding. Avoid overuse of Jargon: Jargon refers to technical terms or specialized vocabulary. Every profession has its own jargon which only experts in that field can understand. For example, IT experts use terms like computer architecture which the layperson may not understand. The use of jargon depends on the audience with whom you are communicating. A certain amount of jargon may be permissible when writing a technical report for example, but should be avoided when communicating with a general audience, since the terms may not be understood. Above all, never use jargon just to impress your audience. Avoid Biased Language and Offensive Words : Language has the power to arouse negative feelings, if it is not used with care. This canPage No. 20



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happen when the words used seem to be objective, but actually contain an intentional or unintentional bias. For example, referring to a co-worker as wishy washy if he is not quick in making a decision, could lead to misunderstanding and conflict. Similarly, certain words may have a sexist connotation and be taken in an offensive way for example, referring to a lady receptionist as that female. Self Assessment Question Are the following statements true or false? 1. Two broad areas of communication are oral and written communication. 2. What you say is more important than how you say it. 3. Verbal communication is more likely to go wrong in a cross-cultural context. 4. Jargon refers to words with multiple meanings

2.2.2 Non-verbal Communication We have defined non-verbal communication earlier in this unit. Let us now take a look at some of its characteristics, which distinguish it from verbal communication. * Non-verbal Communication Cannot Be Avoided While one can avoid verbal communication by refusing to speak or write, it is not possible to do the same with non-verbal communication. That is because non-verbal communication is not always intentional, unlike verbal messages, as pointed out earlier. Sometimes, silence itself may convey a lot of meaning. Example A speaker making a presentation may find that the audience is not very interactive. Instead he notices people yawning during his presentation. At the end of the session, when he asks for some feedback, there is total silence. The message conveyed in the above example is that the audience is bored with the session. The silence indicates that they have not listened to the session and that the feedback is negative. * Non-verbal Communication is Powerful Non-verbal communication helps us to form first impressions and make judgments of others. First impressions generally tend to be lasting impressions.Sikkim Manipal University Page No. 21


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Let us say you go for a job interview fifteen minutes late and dressed in informal attire. When asked some questions, you avoid eye contact. This immediately reflects on your attitude and the impression formed of you is that of a person who takes things casually, is insecure and lacks knowledge. * Non-verbal Communication is Ambiguous While precise words can be used in verbal communication to ensure that that the message is clearly understood, non-verbal communication is not always clear and easy to understand. For example, sitting back in a relaxed posture may be a signal of boredom or fatigue. Similarly, avoiding eye contact with your audience could mean that either you are nervous or guilty of something! Therefore it is not possible to accurately understand the messages conveyed by non-verbal behavior. * Non-verbal Communication Cannot Express All Messages Nonverbal behavior can only express a persons feelings, attitudes, level of interest, liking or dislike for something. Certain messages about ideas or concepts can only be expressed through the spoken or written word. Consider the following exampleA sales manager wanting to report that sales for the current year has exceeded targets, can only do so through a written report or oral presentation. If he is making an oral presentation, his non-verbal behavior can only indicate how pleased he is about the increase in sales. *Non-verbal Communication Varies Across Cultures While certain types of non-verbal behavior are universal, others may be different in different cultures. Examples There are different rules regarding the appropriateness of the handshake in oriental and western cultures. Generally, in oriental cultures like India, any form of physical contact is not common and is interpreted as being intimate, while it is an accepted thing in western countries. Similarly, a nod of the head means yes in some cultures and no in other cultures. In this age of business communication across cultures, it is important for you to understand these differences, especially when doing business overseas. Failure to do this could lead to costly blunders.Sikkim Manipal University Page No. 22


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Classification of Non-verbal Communication We have seen how non-verbal communication plays an important role in business communication. Given its importance, an understanding of the different types of non-verbal communication is essential. There is a common misconception that non-verbal communication is synonymous with body language and includes only body language. The fact is that it is a vast area which has been widely researched and includes several aspects. The table below lists the different types of non-verbal communication, with the corresponding communication terminologyTypes of Non-verbal Communication Description Body Language Personal Space and Distance Meaning Attached to Time Tone of Voice Physical Environment Communication Terminology Kinesics Proxemics Time Language Paralanguage Physical Context

Let us now look at each of the above aspects of non-verbal communication in detail1. Kinesics This is the most often studied and important area of nonverbal communication and refers to body movements of any kind. Different body movements can express inner states of emotion. Facial Expressions can convey feelings of surprise, happiness, anger and sadness. If you meet a long lost friend and say Im very happy to meet you again, but with a sad facial expression, it conveys the exact opposite meaning. Eye Movements, such as wide open pupils express feelings of surprise, excitement or even fear. The importance of eye contact with ones audience was pointed out earlier. Direct eye contact is an indication of intensity and interest, while lack of it can convey feelings of nervousness and guilt. Gestures, such as movement of the hands while giving a lecture or presentation indicates a high level of involvement in what you are saying. On the other hand, shuffling of the feet is a sign of nervousness and speaking with ones hands in ones pockets is considered to be casual or even rude.Sikkim Manipal University Page No. 23


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Head Movements like nodding the head can convey interest, appreciation, agreement or understanding. Body Shape and Posture Body shape is not within ones control but can be stereotyped to convey certain meanings. For example, someone who is strong and muscular is generally thought to be athletic, as opposed to a person who is short and fat! Posture on the other hand is within our control. In formal settings such as job interviews or classroom settings, it is essential that you maintain an erect posture to convey that you are attentive, since slouching or a relaxed posture conveys a casual attitude. Physical Appearance Our outward appearance, including the way we dress and the jewelry and make-up that we wear can convey an impression of formality or informality. Going to a job interview dressed in blue jeans or not sticking to a stipulated dress code at the workplace can convey that you are a rebel, non-conformist or a very casual person. Therefore, it is important to take care of your appearance, so that you convey the right meaning to others. 2. Proxemics Proxemics is derived from the word proximity or closeness and is the communication term for personal space and distance. The space and distance which we choose to keep from people is also part of non-verbal communication. Each of us has our own inner and outer circles, which differ for different people. Our inner most circle is an intimate space, into which we generally admit only select people such as family and close friends. Next comes a personal space which might include other friends and colleagues or coworkers. These two spaces involve communication of an informal nature. Most of us also have a social and public space, which includes official or workplace relationships, where the communication is of a more formal nature. In a business context, it is more relevant to understand the concept of fixed space and semi-fixed space. Fixed space means that the physical features of the work environment such as furniture, room size and seating arrangement are permanent.Sikkim Manipal University Page No. 24


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This conveys an impression of formality. On the other hand, semi-fixed space means that certain elements of the environment can be changed for example, the seating arrangement could be changed and this conveys an impression of informality. Sometimes, use of space at the workplace can determine leadership positions. For example, seating at the head of the table conveys leadership or authority. A round table meeting, however, conveys the idea of equality, since no one can be seated at the head of the table! All points of a circle are the same. That is why when heads of state meet (as in UN Security Council meetings), it is always a round table discussion, since all heads are equal. Space should therefore be used carefully in a work environment, so as to convey the right impressions. 3. Time Language This refers to the meaning or importance attached to time and varies between different people. One person may value time more than another. Similarly, time language also varies across cultures. In most western cultures for example, punctuality is considered to be important. Arriving late for a business meeting is inexcusable. In other cultures, it is more relaxed and time is not given that much importance. We convey messages to others through the time we spend on a work related activity or by the importance that we give to time. Arriving early at work or for a job interview shows interest, involvement and seriousness. Spending time with an employee and giving him suggestions on how to improve his performance shows interest and involvement in his career growth. 4. Paralanguage Para means like or similar to, therefore paralanguage means like language. Of all the forms of non-verbal communication, paralanguage is closest to verbal communication. It refers to the tone of voice with which something is said. In other words, it is how something is said, and not what is said. The tone of voice includes the pitch (high or low pitch), the pace (slow or fast) the emphasis on words and the volume (soft or loud) and can convey different moods and emotions, as mentioned earlier in this unit. Example: The statement I practice good business communication can be understood in different ways, depending on the emphasis on certain words.Sikkim Manipal University Page No. 25


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Saying I practice good business communication means that I alone practice it above anyone else. On the other hand, saying I practice good business communication could be interpreted to mean that you communicate particularly well in a business context, rather than in a general context. The important point to keep in mind regarding tone of voice is to avoid mixed signals that is, making sure that what you say is consistent with how you say it. 5. Physical Context This refers to the physical environment or surroundings within which we communicate and includes two aspects 1) color and layout and 2) design. Colors are known for their symbolic meaning and have associations with different feelings. For example, colors like black and grey are associated with death, mourning and negative feelings. Yellow and green are associated with more positive feelings. Of course, these can also vary across cultures. The point to remember is that you can make the right impressions with use of the right colors. Layout in a work environment refers to the size of an office, or the arrangement of furniture. Design refers to the type of chairs, desks or carpeting. All these can convey status, formality or informality. We have seen how the types of non-verbal communication outnumber the types of verbal communication. Non-verbal communication is an important supplement to verbal communication and can enhance verbal communication, if used in a positive way. The sender should use the right non-verbal cues to convey a positive message, while the receiver should learn to look for unintended messages conveyed by non-verbal communication. Activity Observe a person with whom you work or interact regularly and note down the messages (both positive and negative) that he/she conveys through his/her nonverbal behavior in terms of a) Tone of voice b) Dress c) Body language and d) Use of personal space and distance.


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Self Assessment Question 5. Match the following i. Nodding the head ii. Time language iii. A boss visiting an employees office for discussion iv. An executive chair and a carpeted room v. Speaking loudly a. Paralanguage b. Kinesics c. Arriving late for a meeting d. Personal space and distance e. Physical context

2.3 Classification of Communication ChannelsSo far we have been discussing the two broad areas of communication verbal and non-verbal, in detail. We will now go into the specifics of the choice of channels for different business situations. As a business communicator, within oral and written communication, you will have a choice of a variety of channels through which to deliver your message. As mentioned earlier, oral communication could take place through a face-to-face meeting, telephone or teleconferencing. Written communication could take the form of letters, reports, memos or email. A basic understanding of the nature of the different channels is required, so as to be able to choose the right channel in a given situation. Communication channels could be classified based on three criteria 1) whether the communication is oral, written or non-verbal, 2) the level of feedback and 3) the personal nature of the communication. 1. Two-way, face-to-face channels Here the communication is oral and non-verbal, immediate feedback is possible and the communication is of a highly personalized nature. This type of channel could take the form of one-to-one meetings (a superior doing a performance appraisal with an employee), meetings involving small groups of people (board meetings) or large gatherings (a speaker making a presentation to a large audience). The advantage of using this channel is that non-verbal communication such as gestures, facial expressions and tone of voice can be used to make the communication more effective. A second advantage is that immediate feedback is possible in the form of questions, clarifications orSikkim Manipal University Page No. 27


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suggestions. Yet another advantage is the personal quality of the communication. This is especially true of one-to-one meetings, where problems and conflicts can be easily resolved. The disadvantage of this type of channel is the difficulty in getting people together and arranging face-to-face meetings. Personal meetings are also expensive and time-consuming, especially when people are separated by distances. 2. Two way, but not face-to-face channels With the advent of new technologies, communication can now be two way, without being face to face, when distance makes such meetings impractical. Teleconferencing, telephone and email communication are all examples of this type of channel. In this case, the communication is purely oral, since non-verbal cues cannot be used to enhance the communication, in the absence of face-to-face contact. Immediate feedback is however, possible, as with the face-to-face channel, since the receiver can react immediately to the senders telephone or email message. This type of communication is of an impersonal nature, due to lack of face-to-face contact. Teleconferencing is almost as good as face-to-face communication, since it enables two parties in different locations to see ( if there is videoconferencing facility) and speak to each other. Today, many large Indian organizations make use of this technology. While teleconferencing has the advantage of saving time and costs involved in travel, it cannot replace face-to-face meetings completely. Some types of interaction such as brainstorming, negotiation, persuasion and problem solving can be conducted better through face-to-face meetings. Telephone communication has the advantage of being able to contact people who would be impossible to reach in person. It is also relatively inexpensive, compared to face-to-face communication. The disadvantage is that it is hard to hold the listeners attention for too long. Email is another two-way, but not face-to-face channel that allows senders and receivers to send and respond to one anothers messages almost instantaneously. Within an office, email is used as an alternative to telephone communication and personal meetings and is called the intranet. Email has the advantage of low cost, speed and the ability toSikkim Manipal University Page No. 28


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send messages to several people anywhere in the world. The disadvantages are its impersonal nature and the lack of confidentiality, since the messages can be stored or passed on to others. 3. One-way, not face-to-face channels All forms of written communication mentioned earlier letters, reports, memos, notices, etc. may be classified under this type of channel. Written communication is largely one-way communication, since there is usually no instantaneous feedback between the sender and the receiver. It is also purely verbal, since non-verbal communication is not possible, in the absence of face-to-face contact. It lacks the personal quality of face-toface communication, although it could be personalized to an extent in some forms such as letters. For example, a sales letter addressed to a customer could be made highly personal, by addressing the customer by name and customizing a product to his needs. 2.3.1 Selecting the Appropriate Channel Let us now discuss the appropriateness of each of these channels for different business situations. Although there is no hard and fast rule, the following guidelines would be useful when selecting a channel for a particular situation When trying to solve problems or improve relationships, oral face-to-face communication is generally the most effective form of communication. This is because of the personal nature of face-to-face communication, which makes it more suitable than the other channels of communication. When there is a need for visual support in explaining an idea, oral faceto-face communication is the most appropriate channel. For example, highlighting the unique features of a product may require actual product demonstration through face-to-face contact. Explaining a concept may require showing photographs or diagrams through a slide presentation, which is best done face to face. For making immediate contact, oral face-to-face communication is required. For example, if you want to have the funds in an account released now, you would have to meet a bank manager personally. Putting your request in a letter or through a telephone call may not be of much help.Page No. 29



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When you want to command a high degree of control over the receiver, oral face-to-face communication works best. This is because, as a speaker, you will have greater command over a listeners attention than if you write a letter or a report, which may not be read at all. When there is need for immediate feedback, oral communication, either face-to-face, or non face-to-face, such as telephone, teleconferencing or email, may be equally appropriate. On the other hand, the following criteria would justify the need for a oneway, non face-to-face, i.e., written channel When you want the tone of the communication to be formal, written communication is more appropriate than oral communication. For example, communication with the government regarding compliance with tax matters, or with the bank regarding funds for expansion should always be of a highly formal nature, through written letters or reports. When you want to explain complicated ideas that require a lot of study and thought by the receiver, written communication is best. For example, explaining the features of a machine is best done through a technical report giving details and technical specifications. When you want to convey a large amount of information, written communication is most suitable. It would be difficult to convey this through a lengthy oral presentation, since the speaker would be unable to command a captive audience for too long. The same is true of telephone communication, which should be kept brief. On the other hand, it is possible to include a number of details in a written report that the receiver can read and re-read, at leisure. The written channel is also more appropriate when you wish to keep a permanent record of happenings. For example, the minutes of a business meeting should always be recorded in writing; written appointment letters should be given to new employees at the time of joining an organization.

2.3.2 Comparison of Oral and Written Channels It is evident that oral and written channels both have their relative advantagesSikkim Manipal University Page No. 30


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and disadvantages. This is summed up in the table below, which rates each of these channels as high or low on different dimensions Characteristic/Dimension Oral Communication Written Communication

Interactivity Level of Feedback Formal Nature Personal Nature Permanent Nature Cost Control over Receiver Effectiveness for Complex Messages Effectiveness for Detailed Messages

High High Low High Low High High Low Low

Low Low High Low High Low Low High High

Communication channels should be selected with care, keeping in mind the requirement of the situation at hand, as well the inherent advantages and disadvantages of each channel. In some cases, it may be necessary to use a combination of channels, in order to make sure that the message reaches the sender. For example, providing a written research report along with a presentation on findings of a study, or making a follow-up phone call after sending an email message is bound to have more impact and to ensure that the message is well understood. Self Assessment Question Fill in the blanks 6. A job interview between an employer and a prospective employee is an example of a ___________ _____________ communication channel. 7. In a one-way non face-to-face channel, the communication is ________ and __________________ in nature. 8. When you want the receiver to pay attention to your message, ________ communication is better than ___________ communication. 9. When using a lot of jargon, ____________________ communication is more suitable than ___________________ communication.Sikkim Manipal University Page No. 31


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2.4 SummaryCommunication can be divided into two broad areas verbal and non-verbal communication. Verbal communication comprises oral and written communication, which in turn can take many forms in a business context. Oral communication could take place through presentations, meetings or one-to-one meetings, while written communication could be in the form of letters, reports, memos, notices, circulars or email. Verbal communication has the disadvantage of being inaccurate or misunderstood, unless the message is carefully worded. Therefore, certain guidelines should be followed when communicating through the oral or written word. It is important to avoid words that may have multiple meanings, avoid jargon and use language that is highly specific, unbiased and inoffensive. Non-verbal communication refers to communication without words and plays an important role in business communication. It is unintentional and if used with care, can convey positive messages and thus enhance verbal communication. It is a vast area that includes more than just body language or kinesics. Proxemics or personal space and distance, time language, paralanguage or tone of voice and physical context are some of the other aspects of non-verbal communication. Within the two broad types of communication, there are a variety of communication channels open to a business communicator. A proper understanding of these channels is essential, so that the appropriate one may be used in a given situation. Channels may be classified into three types two way face-to-face, two way non face-to-face and one way non face-to-face, depending on whether the communication is oral, written or non-verbal, whether immediate feedback is possible and whether it is personal or impersonal in nature. Some of the criteria for selection of a channel include The aim of resolving conflicts or improving work relationships The need for visual support while communicating The urgency of the situation The need for quick feedback The complexity and volume of information The formal or informal nature of the communicationSikkim Manipal University Page No. 32


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The permanent nature of the communication The requirement for keeping things on record

Oral and written channels have their inherent advantages and disadvantages in any given situation. However, some situations may demand the use of both types of channels for maximum effect.

2.5 Terminal Questions1. What are some of the advantages of verbal over non-verbal communication? 2. Describe a situation that you experienced where communication went wrong because the non-verbal behavior sent conflicting signals. Which aspect of non-verbal communication was responsible for the communication failure? How would you rectify this? 3. Which channel of communication would be appropriate in the following situations? Justify your answer. a) Notifying employees of a fire in the building b) Announcing to employees that Independence Day is a paid holiday c) Criticizing an employee for poor performance

2.6 AnswersAnswers to Self Assessment Questions 1. 2. 3. 4. 5. 6. 7. 8. 9. F F T F i) b, ii) c, iii) d, iv) e, v) a Two-way; face-to-face Verbal/written; impersonal Oral; written Written; oral


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Answers to Terminal Questions 1. Refer 2.2, 2.2.1 and 2.2.2 2. Refer 2.2.2 3. Refer 2.3.1


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Unit 3

The Nature of Business Communication

Structure: 3.1 Introduction Objectives 3.2 Types of Business Communication 3.3 Communication Network in Organizations 3.4 Summary 3.5 Terminal Questions 3.6 Answers

3.1 IntroductionOur discussion so far has been focused more on the general nature of communication. In this unit we will go into the specifics of business communication and what it involves. We will see how a manager has to maintain communication linkages with different entities, both within and outside the work environment. In continuation with what we discussed in the last unit, some of the appropriate channels for communication with different audiences will be explained. Finally, we will examine how communication flows within an organization, both through official and unofficial channels. Objectives After studying this unit, you will be able to: List the different stakeholders of an organization, or the publics with whom a manager has to communicate. Explain the primary reasons for communication with each stakeholder Select the most effective channel for communication with each stakeholder Describe how information flows within an organization Discuss the advantages and limitations of formal and informal communication networks

3.2 Types of Business CommunicationBusiness communication is diverse and involves both internal stakeholders within the organization, as well as external stakeholders outside theSikkim Manipal University Page No. 35


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organization. A manager has to constantly communicate with and maintain good relations with each of these stakeholders or publics, so as to achieve the overall goals of the organization and to project a favorable image. The figure below illustrates the wheel of business communication-

The Wheel of Business CommunicationBankers Media Superiors Peers Society Subordinates Management Government

Intermediaries Customers Suppliers Unions

Shareholders Employees/

The wheel of business communication reinforces what we discussed in the very first unit communication is like breathing, it never stops and is a constant process. A manager has to stay in continuous touch with his internal stakeholders on the one hand superiors, peers, subordinates, shareholders, employees and their unions; at the same time, he has to communicate with external stakeholders such as customers, intermediaries (distributors and retailers), suppliers of materials and components, government, bankers, society at large and the media. Effective business communication therefore involves both internal as well as external communication. We will now look at some of the reasons for communication with internal and external stakeholders, as well as the appropriate channels to be used in each case. 3.2.1 Internal Business Communication As illustrated in the diagram, this involves interaction with the following Superiors Every organization has a formal reporting system. Superiors are the higher ups in the organization to whom you report. The frequency of interaction with them will vary, depending on your position andSikkim Manipal University Page No. 36


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responsibilities, as well as their need for information. As a salesperson, you may have to submit daily or weekly reports of sales progress. As a marketing manager, you may be required to make periodic presentations on marketing strategy for new product launches to the Vice President, Marketing. Occasionally, you may also approach your superiors to communicate your feelings about your job, unsolved problems with coworkers and your suggestions for improvement of the organization. Communication with superiors could be through written channels, such as reports, or through oral face-to-face channels, such as presentations and one-to-one meetings. When trying to solve problems or improve relationships, oral face-to-face channels are most effective, as explained in the previous unit. Peers Peers are your co-workers, or people at the same level within an organization. For example, a marketing manager and an HR manager are peers, since they work at the same level within different departments. Communication between peers is essential for functional coordination. An Advertising Manager for example, will need to communicate with the Finance Manager regarding approval of the advertising budget for a new product launch. Information sharing is another reason for communication between peers. The Advertising Manager and the Sales Manager in the Marketing department may need to communicate regarding the special features of a product to be highlighted in an advertising campaign. Regular communication between co-workers in different departments is also essential to ensure that they work together as a team to achieve the common goals of the organization. The most appropriate channel of communication between peers is the oral face-to-face channel, since it helps to build good rapport and improves work relationships. Subordinates These are people in the organization who work below you or report directly to you. For example, as the Marketing Manager, you may have Assistant Managers reporting to you, who in turn may have Marketing Executives reporting to them. The most common reasons for communication with subordinates are on disciplinary matters, such asSikkim Manipal University Page No. 37


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organizational procedures and policies. Other reasons include performance appraisal and feedback, reward and recognition aspects, subject to good performance. Appropriate channels of communication with subordinates may be both oral and written, depending on the situation. Communicating about organizational procedures is best done through written communication; on the other hand, performance appraisal and feedback should be done through an oral one-to-one meeting and discussion. Employees/Unions Employees unions can be quite powerful, therefore communication with them is essential. The reasons for communication include welfare aspects, disciplinary aspects and terms of employment. All these should be clearly spelt out and kept on record. Hence written channels such as written contracts are the most appropriate channels. Shareholders Shareholders are very important internal stakeholders, since they are the owners of the company. Therefore, it is essential to be completely transparent with shareholders and to keep them informed of both positive and negative developments regarding the company. The reasons for communication with shareholders include keeping them informed about the Companys progress on different fronts, development programs and new projects undertaken by the company and new capital issues. At the same time, any major problems faced by the company and the steps being taken to tackle these problems should also be communicated. This is part of public relations, through which the company projects a positive image of itself in the eyes of shareholders. The appropriate channels of communication with shareholders include oral and written channels shareholder meetings and conferences, letters, brochures and advertisements. Before we move on to external business communication, let us sum up our discussion on internal communication. The table given below highlights the appropriate channel(s) to be used and the primary objective of communication with each of the internal publics.


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Stakeholder Superiors

Channel Written Reports Presentations Meetings Face-to-face meetings Written Communication Face-to-face meetings

Overall Objective Awareness of progress Suggestions & feedback Problem solving Coordination Teamwork Information sharing Compliance with instructions & policiesReview of work progress Feedback Employee satisfaction & welfare Building trust and confidence

Peers

Subordinates

Employees/Unions Shareholders

Written Communication Meetings Advertisements Brochures

Self Assessment Questions Are the following questions true or false? 1. Peers are co-workers who work only in different departments of an organization. 2. Criticizing an employee may be done in public. 3. A policy of openness is essential for good public relations. 4. Suggestions should only be given by superiors to subordinates. 3.2.2 External Business Communication Before we discuss the reasons for communication with external stakeholders, it is important that you understand the overall importance of external business communication. External business communication is essential for the following reasons For Successful Marketing Organizations need to inform and create awareness among consumers about their existing and new products. This is largely done through advertising, which is a form of mass communication. This is very much a part of external business communication. To build a Favorable Corporate Image Today, organizations need to focus on projecting themselves as responsible corporate and socialPage No. 39



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citizens. This is known as corporate social responsibility. For example, they need to communicate the fact that they are involved in social development or in environmental protection. This involves being in touch with various external stakeholders, especially consumers, media and the society at large. To Increase Shareholder Value If customers have a positive image of the company, the companys share price will go up and shareholders wealth increases, thereby enhancing shareholder value. Shareholder confidence in the company also drives shareholder value. When shareholder value increases, they will participate in the companys expansion and growth. To Overcome a Crisis Sometimes when a company is facing a crisis, a public relations campaign may be needed to manage the situation, put things in a proper perspective and restore the image of the company in the eyes of consumers, the media and society at large. Public relations require effective communication with various external stakeholders.

Examples A few years ago, Reliance was prosecuted by the government for irregularities in the stock market. Shareholders lost confidence in the company. Reliance then mounted a counter campaign against the government, where they told the truth, gave the facts and figures and denied the allegations made against them. This helped them to regain lost confidence and salvage their image. Similarly, when Coke and Pepsi were accused of pesticides in their soft drinks, they had to undertake a massive public relations exercise to set right their image in the eyes of the public. * To Enhance Credit Rating An organizations credit rating will also go up if it maintains good external communication. This way its borrowing ability will increase and more money can be raised for expansion and growth. Having emphasized the importance of external business communication, let us now go into the reasons for communicating with external stakeholders and the channels used to communicate with them, just as we did with internal communication.


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The wheel of business communication illustrates that external business communication involves interaction with the following stakeholders Consumers Organizations need to communicate with consumers to provide information about their products and services, special promotional offers and new product developments. They also need to redress consumer complaints, so as to maintain consumer preference and confidence in their brands. The written channel is the most appropriate medium for communicating with consumers. This could take the form of letters, or mass media advertising. Intermediaries This refers to the trade distributors, wholesalers, retailers, franchisees, etc. It is necessary to communicate with them to provide information about product availability, special offers, incentives and allowances, contractual aspects, order processing, delivery aspects and merchandising, or the visual display of products. Keeping intermediaries aware and informed and motivating them to meet targets through competitions, prizes and incentives is extremely important for the success of any product. The appropriate channels of communication with intermediaries could be both oral and written channels. Written contracts, advertisements announcing special offers and incentives and dealer newsletters inviting dealers to share their experiences, are examples of written channels. Periodic review meetings and continuous communication through sales staff are examples of oral channels. Suppliers These are suppliers of raw material, components, power, water or other utilities. Communication with suppliers is essential to give technical specifications, ensure quality and timely delivery. Today, due to outsourcing or relying on outside sources for raw materials and components, there is need for more sophisticated and direct communication and a more continuous, on-going relationship with suppliers. The internet now plays an important role in communication with suppliers, through Business to Business (B2B) communication. Many organizations today enter into a partnership with their suppliers, whereby there is total involvement on both sides. For example, a company engineer might train the shop floor technical staff of a supplier of automotiveSikkim Manipal University Page No. 41


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components, in order to improve the quality of the components. The supplier on his side, may suggest a change in the companys specification process. Direct, one-to-one communication is required with suppliers to ensure transparency and clarity, with respect to specifications. The oral face-to-face channel is most appropriate, although the online channel is being increasingly used in supplier communication. Government Communicating with the government is particularly important in the Indian context and is a part of public relations. Many Indian companies even appoint a PR officer for maintaining good relations with the government. The reasons for communicating with the government include compliance with tax matters and legal aspects, seeking clearances for new activities such as joint ventures, borrowing from overseas banks, foreign exchange requirements and so on. Communication with the government could take place through both oral and written channels. Periodic meetings may be held with regard to statutory compliances such as licensing. However, most of the time, written communication through formal letters is more appropriate. This is because clearances for various activities have to be sought in writing. Society As pointed out earlier, organizations need to communicate with the community at large to project themselves as responsible corporate citizens. Corporate social responsibility as it is called, is top priority with many organizations today. Supporting womens education, building hospitals for the disabled, schools for children, family planning and nonpollution of the environment are some of the ways in which companies are participating in social development and then communicating this to society. The channels of communication with society could be oral and direct for example, talking to elders in a village or locality, about family planning or schools for children. Mass media advertising in the form of public service advertising could also be used to spread these social service messages Example United Breweries ran a public service campaign with the caption Drinking and driving dont mix, to spread the message of avoiding drunken driving. There is a large element of public relations in communication with society.Sikkim Manipal University Page No. 42


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Bankers Like shareholders, organizations need to communicate with bankers both in good times and bad times. The reasons for communicating with bankers are the same as those for shareholders. In addition, advance notice needs to be given to bankers regarding any dislocation in repayment schedules and justification has to be provided for any additional fund needs. The overall purpose is to build rapport with the bank, so as to increase borrowing ability. Communication with bankers could take place through oral channels for example, periodic meetings with the Finance Manager of the company to keep them informed of stock build up trends, or future trends that could affect working capital needs. Special meetings may also be held to keep them posted about expansion, contraction and diversification plans, lockouts, strikes and anything else that may affect cash flow. In addition to oral channels, periodic written reports need to be submitted to the bank on overall business conditions. Transparency is needed in dealings with the bank and failure to keep them informed could lead to the companys collapse. Example The Enron Company did not communicate with their shareholders and bankers about the difficult times that they were going through. This ultimately led to the companys ruin. Media Today, the media are becoming more powerful and investigative and are intruding into peoples personal lives. If wrongly informed, the media can destroy an institution. Therefore, the primary reason for an organization to communicate with the media is to maintain good relations. If the company projects a favorable image to the media, the media in turn will carry a positive story about the company for free. This is known as publicity and is part of public relations. For example, a press release in a newspaper may highlight some of the achievements or awards won by the company. This type of publicity is highly credible and can have a powerful influence on public opinion. Communication with the media takes place through both oral channels such as press conferences, as well as written channels such as letters and news releases.


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As we did with internal business communication, let us sum up our discussion on external business communication in the form of the matrix given belowStakeholder Consumers Channel Advertisements Letters Written Contracts Newsletters Advertisements Review Meetings Direct Oral Communication Online Communication Periodic Meetings Formal Letters Direct Oral Communication Advertisements Periodic & Special Meetings Written Reports News conferences News Releases Overall Objective Awareness Information Persuasion Awareness Information Motivation On-going Relationship Partnership Government Cooperation Corporate Social Responsibility Good Rapport More borrowing ability Good Relations

Intermediaries

Suppliers

Government Society

Bankers

Media

Activity Describe the nature of your current job or a job that you would like to take up in future. List out the primary stakeholders that you have to communicate with and the reasons for communication with each stakeholder.


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Self Assessment Questions 5. Match the following i) Mass communication ii) Corporate Social Responsibility iii) Crisis PR iv) Distributors v) Internet vi) Statutory compliance vii) Transparency viii) Credit rating ix) Publicity x) Persuasion a. b. c. d. e. f. g. h. i. j. Government Advertising Suppliers Social development Bankers Borrowing ability Media Consumers Motivation Restoring company image

3.3 Communication Network in OrganizationsA communication network refers to how information flows within the organization. Information within an organization generally flows through a system, rather than being a free flow. In the words of Adler, Communication networks are regular patterns of person-to-person relationships through which information flows in an organization. This means that the flow of information is managed, regulated. and structured. Communication networks may be formal or informal. We will deal with each of these in some detail. 3.3.1 Formal Communication Network A formal communication network is one which is created by management and described with the help of an organizational chart. An organizational chart specifies the hierarchy and the reporting system in the organization. Therefore, in a formal network, information is passed on only through official channels such as memos, bulletins and intranet (email within the organization). The organizational chart implies that information can flow in any of three directions vertically, i.e., upward or downward, and horizontally. 1. Upward Communication This may be defined as information that flows from subordinates to superiors. Some of the reasons for upward communication include discussing work related problems, givingSikkim Manipal University Page No. 45


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suggestions for improvement and sharing feelings about the job and coworkers. This type of communication has both benefits and disadvantages. One of the biggest benefits is problem-solving. Once a subordinate has brought a problem to his superiors notice, chances are that the problem will not recur, since the subordinate learns from his superior how to tackle it the next time. Thus, his ability to solve new problems and therefore his managerial ability, improves. Another benefit that could arise from upward communication is that valuable ideas and suggestions may sometimes come from lower level employees. Therefore organizations should encourage this kind of communication. A third benefit is that employees learn to accept the decisions of management and thereby work as a team. The biggest problem associated with this type of communication is that it may lead to handing down of decisions by superiors. When subordinates frequently seek the superiors guidance, the latter may adopt an authoritarian approach and merely give instructions, disregarding the subordinates opinion completely. 2. Downward Communication This may be defined as information that flows from superiors to subordinates. The most common reasons for downward communication are for giving job instructions, explaining company rules, policies and procedures and giving feedback regarding job performance. A number of studies have indicated that regular downward communication in the form of feedback given to employees is the most important factor affecting job satisfaction. Therefore organizations today are trying to encourage more of this type of communication. There are both benefits and disadvantages associated with this type of communication. Downward communication that provides regular feedback will be beneficial if the feedback or review of performance is constructive. A constructive review is one where a manager counsels an employee, or advises him on how to improve his performance. On the other hand, a destructive review can destroy employee morale and confidence. Regular downward communication also creates a climate ofSikkim Manipal University Page No. 46


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transparency or openness, where information is passed on through official channels, rather than through rumors. Thirdly, downward communication boosts employee morale, since it indicates that management is involved in their progress. The problems with this type of communication are the danger of doing destructive reviews, as mentioned, and that of message overload. This means that superiors many sometimes burden their subordinates with too many instructions, leading to confusion. 3. Horizontal Communication This type of communication is also known as lateral communication. It may be defined as communication that takes place between co-workers in the same department, or in different departments, with different areas of responsibility. For example, Sales Managers and Advertising Managers in the Marketing department, or Marketing Managers and Finance Managers. The reasons for this type of communication are for coordination of tasks, sharing of information regarding goals of the organization, resolving interpersonal or work related problems and building rapport. The biggest potential benefit of horizontal communication is the sense of teamwork that is created. Regular communication of this type ensures that all co-workers work together towards achieving a common goal in the overall interest of the organization. The biggest potential problem is that conflicts such as ego clashes are bound to arise, when co-workers at the same level communicate on a regular basis. In spite of these problems, horizontal or lateral communication has become more important in todays business scenario than upward or downward communication. This is because the organizational pyramid indicating the different hierarchies or levels in an organization has flattened. This is illustrated by the diagrams given below.


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Multi-layer Organizational Pyramid

General Manager

Manager

Manager

Asst Manager

Asst Manager

Asst Manager

Asst Manager

Executive

Executive

Executive

Executive

Executive

Executive

Executive

Executive

Compressed Organizational Pyramid

General Manager

Manager

Manager

Manager

Manager

Manager

Manager

The first diagram illustrates the previous organizational pyramid which was a multi-layer pyramid. In this type of pyramid, vertical, i.e., upward and downward communication still plays an important role. This is still the case in many traditionally run organizations today. However, this has been replaced by a compressed or

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