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Be the change you want to see inthe world Mahatma Gandhi

And to make the change you need

communication Yours truly !!!

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WELCOME TO BUSINESS COMMUNICATION

10 MBA 17 Where the process of

making you employablebegins

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Recommended Books Business Communication : Cocepts, Cases and Applications P D Chaturvedi,

Pearson Education, 1 e, 2004 (M,1,2,4,5,7) Business Communication, Process & Product

Mary Ellen Guffey- Thomson, 3 e, 2002, (M,3) Basic Bus. Commun - Lesikar, Flatley,TMH,10 e,

2005, (M,1,2,4,5,7) Advanced Bus Commun Penrose, Rasberry,

Myers, Thomson,4 e, 2002, (M,6,8) Bus Commun MK Sehgal, V Khetrapal, Excel

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MODULE 1

Business Communication - INTRODUCTION

Business stands for any

economic activity which isundertaken with a view to earn Profit ; and sometimes

not for profit as in social serviceorganizations like Red Cross, CRYetc.,

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Communication undertaken in theprocess of this activity istermed

BusinessCommunication

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Business Communication includes Oral ;

Written ; Formal ; Informal ; Upward ; Downward ; Lateral ; Diagonal ;

Inward ; Outward ; and Non-verbal communication

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Formal Communication Network inan Organization

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An organization is a group of persons constituted to achieve

certain objectives The achievement of these

objectives largely depends onproper coordinationand integration of human effort.

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Co-ordination and integration of varioushuman activities is possible only if there isan effective system of communicationwithin the organization, which provides for exchange of information and sharing of ideas.

The more effective the system of communication, the better is therelationship between workers and

management

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Hence,Communication is

the most vitalingredient of anorganization.It is the life bloodof the organization

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For communication to be effective therehas to be both

Information and Meaning in its content And conveying this meaning requires

communication- Peter F Drucker

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ROLE OF COMMUNICATION

1. Promote Human Relations - through mutualunderstanding.

eg. Team work2. Empathy putting oneself in other

persons shoe and feelingeg. In mentoring / counselling

3. Persuasion It is a process of

stimulating, convincing and motivatingothers to take necessary action ; thinkin new wayseg. TQM in a firm, ad messages

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4. Dialogue It is a process of conversation with a purpose toexchange ideas, influence behaviour

or discuss to get the others viewpoint.eg Industrial Relations5. Information collection, storage and

supply of organised data at the righttime for effective managementdecision making eg. MIS reports

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6. Influence to achieve the desired goals ; tocultivate the right attitude.eg. Employee motivation

7. Understand to bridge the communicationgap in a firm.eg. Between prodn & marketing

8. Discourage Mis-information such as

rumours, gossip that promote ill feelingeg. Misunderstanding of a VRS initiative inan organization as lay off exercise

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Nature & Characteristics of Communication 1. It is a process a flow of identifiable

inter-related events2. It is inevitable an essential physical,

social, and psychological process of a society3. It is meaning based linking words

to create meaningful sentences for better understanding

4. It could be intentional & unintentional conveying information with body language

5. It is systematic - inter-related components6. It is two-way - involving sender & receiver 7. It is dynamic ever changing

8. It is a continuous process - repeated to achieve desired results9. It involves interaction & transaction exchange and influencing10. It has 4 specific skills reading, writing, speaking and listening

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Meaning of Communication

Communication is derived from the wordcommunis (Latin) which means

common = common ground of understanding. It is a process of exchange of facts, ideas,

and opinions with one another -i.e., transmission and interaction of facts,ideas, opinions, feelings or attitudes.

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- It is the interchange of thought or information

to bring about mutual understanding ,confidence and good human relations.

It involves a systematic and continuous

process of telling, listening andunderstanding. Communication is the process of passing

information and a process of understandingand being understood

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Defining Communication -1

It is the process of passing informationand understanding from one person toanother. It builds bridges of meaningbetween people, enabling them to safelycross the rivers of misunderstanding

- Keith Davis

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Defining Communication - 2

Effective communication is a purposiveinterchange, resulting in workable understandingand agreement between the sender and receiver of a message

- George Vardman Communication is the sum of all the things one

person does when he wants to createunderstanding in the mind of another ;

it involves a systematic and continuous processof telling, listening and understanding- Allen Louis

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Classification of Communication

1. Based on no of persons ( receivers ) to whom message isintendedA . Intrapersonal communicationB. Interpersonal communication

C. Group CommunicationD. Mass Communication

2. Classification based on medium / method employed

1. Verbal Communication / Oral communication

2. Non-verbal communication3. Meta Communication

3. Classification based onTypes of Business communication

Internal , External, and Personal

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Classification of Communication

1. Based on no of persons ( receivers ) towhom message is intended

A . Intrapersonal communication

a) It is talking to oneself in ones own mindeg. soliloquies in drama

b) It is the sound of thinking within oneself

during thought process

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B. Interpersonal communication It is the exchange of messages between two persons eg. a) A conversation, dialogue or an interview in which

two persons interact in which two persons interact(others also may be present as audience)

b) An author communicates interpersonally with hisreader as a silent audience in the authors mind whilehe writes.

c) In a letter, the writer and the recipient communicate.

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C. Group Communication Small or large groups like anorganization, club or classroom, in

which all individuals retain theirindividual identity.

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D. Mass Communication It occurs when the message is sent to large

groups of people.

eg. News paper, Radio, TV In this process each person becomes a faceless

individual with almost no opportunity for immediate feedback.

But in modern times, many TV and radiostations have phone-in programmes for simultaneous listener participation.

2 Cl ifi ti b d

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2. Classification based onmedium/method employed 1. Verbal Communication/ Oral communication

It means communicating with words, written or spoken.eg. Speaking, listening, writing, reading and thinking. 2. Non-verbal communication

It includes use of pictures, signs, body language,

gestures and facial expressions for exchanginginformation between persons. - gesture (sign), movements (action language) - object language (pictures, clothes etc.,) - personal space (Proximics, body language, and

kinesics, movement ) - eyes (Oculesics), sense of smell (olfactics) - Time (chronemics)

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3. Meta Communication

Here the speakers choice of words unintentionallycommunicate something more than what actualwords state / meaneg.1 I have never seen you so smartly dresses could also mean the regular attire of the listenerneeded improvement.eg.2 Oh! So you are on time today could alsomean the person is habitually late but punctualtoday

3 Cl ifi i b d

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3. Classification based onTypes of Business communication

1. Internal/operational communication

It is the communication within the business enterprisetowards

- manufacturing of products- providing service- selling of goods and services

2. External operational communication

3. Personal communication- Non business related exchanges

- Business communication withpublics, suppliers, servicecompanies, customers, generalpublics etc.,

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Other Purposes / Functions / Objectives of Communication in an Organization

To educate disseminate knowledge re. jobrequirements to improve efficiency, teaching personalsafety to prevent accidents

To integrate unifying various depts / divisions for better inter relationships to reach organization goals

To evaluate - examining individuals to form a judgement To direct giving orders to subordinates to do a task or

modify it. To motivate influencing to keep employee morale high

To relate nurturing mutually beneficial relationships To project corporate image creating public goodwill &meeting CSR obligations

To build harmony both internal and external To interview process of selecting qualified and worthy

people

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Other Purposes of Communication (cont) To coordinate various depts, divisions through

delegation, and decentralization of authority To aid decision making Obtaining information from

various channels to make decisions To encourage feedback about performance of various

depts for overall improvement in performance To control through rules, regulations, procedures,

policies framed by management acting asguidelines / limits of authority

To understand grapevine informal communicationnetwork in an organisation that helps assess reaction of employees to changes = +ve side and rumours, gossipcausing misunderstandings = -ve side

To entertain social bonding & lighter moments to

relieve tension

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1. Communication to Inform

Also called expository communication

Information may be given orally or in writing It is directed by the desire to expose, developand explain the

subject for better clarity and understandingeg. Flies are our deadly enemies because they

feed on dirt and rubbish. When they crawl overour food with their dirty legs, they leave all kindsof germs behind that poisons our food

Above passage provides a logical presentation of associated facts as information and convincesabout the danger of flies.

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1. Communication to Inform (cont)

Information consists of facts, figures and data

Information does not usually include emotion Modern management believes in keeping their

employees well informed about all company affairs,plan, progress etc., through bulletins, house magazines,circulars etc.

Employee progress and achievements are informationfirms use for rewards, promotions and incentives

Companies use mass media to keep the publicinformed, about their products, dividends & CSR projects

progress, labor and other policies through pressreleases, advertisements and announcements.Eg. Annual Reports of ITC, HLL, TELCO, BEML etc.

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COMMUNICATION TO PERSUADE The communicator seeks to primarily persuade the reader.

In such a form of communication the focus is on the receiver and notthe message.

eg. Home Loan advertisement by HSBC in print media: Now your dream home is just a step away from being a reality.Simply get an HSBC home loan and choose from a range of

highly flexible repayment options, based on your convenience

Above ad message is reader centric.- Purpose is not just information but also persuasion a

deliberate and intentional act.

- A persuasive communication wants the reader to understand themessage and also be influenced.- Aims at changing attitude and behaviour of consumers with

best arguments to win them over.eg. Press advertisements of Pepsi and Coke trying toconvince the public that their soft drinks are pesticidesafe by factual presentation of their case.

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THE PROCESS OF HUMAN COMMUNICATION Business organization consist of people and communication in the

organisation occurs among people.

So, Communication is the transmission of information and meaning from oneindividual / group to another.

The process of communication requires a full cycle of events from sender

to receiver and back to sender

Communication has as its central objective the transmission of meaning .

The process of communication is successful only when the receiver

understands an idea as the sender intended it.

Both parties must agree not only on the information transmitted but also on

the meaning of the information.

The communication process has five steps or components:

1. Stimulus Idea Formation 2 Message encoding 3 Messagetransmission 4. Message decoding and 5 Feedback.

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SCHEMATIC REPRESENTATION OF THECOMMUNICATION PROCESS / CYCLE

5 4Feed back MessageDecoding

1 2 3

Idea Formation Message MessageEncoding Transmission

6

Possible Additional

Feedback to receiver

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1. Stimulus Idea Formation :

The process of communication begins when thesender / transmitter (an individual, a group or anorganisation) receives a STIMULUS

STIMULUS is an event that creates within anindividual the need to communicate

It is a piece of information or subject matter of communication. Eg.any fact, idea, opinion, figureetc., that is perceived through your sensoryorgans eyes, ears, nose, skin etc, calledexternal stimulus or an idea that is already in your mind called internal stimulus

A stimulus for communicating in business might bean e-mail message, a presentation you heard, adiscussion you had with CEO etc., It exists in themind of the communicator & converted to message

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So you respond to the stimulus byformulating a message : a verbal message(written or spoken words), a non verbal

massage (signal or sign) or a combination of both. The form of the idea will be influenced by

complex factors surrounding the sender:mood, frame/terms of reference, context,background, culture etc.,

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The above variables or factors act as a filter in shaping everyones unique impressions of reality. Eg. An exam TT and preparation may

gain importance in a student than interviewdates for placements with companies. Thismay act as a filter in his response to interviewcalls.

The brain begins to interpret the stimulus toderive meaning from it to suitably respond or not respond - Idea Formation Eg.1 The way you greet people on a campus,professors, friends etc is a simple form of

communication . Habitual greeting could betrained reflex action ; to a professor Goodmorning Sir, Friends Hi ;Eg.2 A more complex process could be areply to letter or a response to demand fromthe trade union

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Ability to how a message needs to be suitablyadapted to its receiver is largely based on thesenders experience and is a key ingredient for

successful communicationEg. 1) A manager sending a message to employeesassumes they will be receptive, through pastexperience & organizational hierarchy

2) Advertisers assume that their receivers will giveonly a quick glance to their ad message and try toincorporate ideas that can create interest and givemaximum impact by high ad recall %3) Communicating to children requires special skillswith stories, cartoons etc conveying the meaning of the message4) Lessons need to be presented to students in amanner to easily grasp the concepts

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2. Message Encoding ( by sender )

Encoding means converting the idea into words orgestures or facial expressions or pictures thatconverts raw information into a message that willconvey meaning which can be understood by receiver

Verbal messages can be misunderstood due to missedmeaning due to bypassing , frame of reference, language skill and distractions (See Module 2Barriers to Communication)

Hence Skilled/communicators choose familiar wordswith concrete meanings on which both senders andreceivers agree. eg. ATC communication with a pilot

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Encoding process translates ideas, facts, etc intosymbols, signs, words, actions, pictures, audio visualsetc

Sender selects a medium he feels proper tocommunicate effectively to the intended listener or receiver.

Eg.Suppose a company wants seek publicity for getting ISO 9002, it has to identify and useappropriate messages, channels, symbols and skillswhich will enable the receiver to understand themessage in the same sense and spirit

So using appropriate words, gestures, facialexpressions, symbols are important components inorganising a message. Eg. Newspaper & TV adsindicating ONE Finger conveying that ONE Saridontablet is sufficient to cure headache.

3 M T i i / C i i Ch l

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3. Message Transmission. / Communication Channel Once the sender has encoded the message, the nextstep is to transmit the message to the receiver Message travels over channel, the medium over which the

message is physically transmittedCommunication Channels are the media computer,telephone, letter, fax, picture, staff meeting, pressconference etc., that transmit / deliver message.The sender must choose the medium to send messageBecause communication channels deliver both verbal andnon verbal messages, sender must choose the proper channel and shape the message carefully.

Eg. AGM of a firm followed by press conference (verbal)with suitable body language (non-verbal) Anything that interrupts the transmission of a message inthe communication channel is called noise . Eg. disruptionin a tel. msg, typing error in a letter, inappropriate channeletc.,

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Eg. of communication channels Verbal Message / Verbal Media = letters,

reports, manuals, circulars A companys annual report is a channel for

verbal messages in written form & Chairmansspeech to stock holders thru AGM in oral form

Oral = telephone, radio, conference ; Visual = slides, neon hoardings Non verbal message may be conveyed by the

reports appearance - colour, glossy, showy or bland, layout, tone (meeting, formalrequirements) etc.,

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4. Message Decoding at Destination The transmitted message then enters the

sensory environment of the receiver, at whichpoint the control passes from sender toreceiver. The individual for whom themessage is intended or meant is calledreceiver. A communication process is NOT

complete without receiver Translating message from its symbol form intoordinary understandable meaningful form iscalled decoding

It is the process of understanding themeaning intended by the sender andinterpreting it ie., successful decoding of message completes the effectivecommunication process

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Such success is difficult to achieve owing to differinglife experiences that act as filters (eg. receivers lackof attention owing to bias against sender as in doctor vs nurse or manager vs supervisor) andcommunication barriers eg. Loud sounds, illegible

words Decoding can be sidetracked by semantic obstacles.

Eg. Misunderstood words or emotional reactions tocertain words A memo referring to women as girls

vis--vis ladies may disturb receivers, who may fail tocomprehend the total message owing to hurt causedby insult

Failed communication becomes the source or stimulus for the next new communication process

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5. Feedback / Acting

The receiver implements the message according to

his understanding The verbal non verbal responses of the receiver

creates feedback or reaction to message

It is the last element & a vital part of communicationprocess.

Feedback or sending back of the knowledge aboutmessage to the transmitter helps the sender knowthat the message was received and understood.

S d f db k b ki

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Senders can encourage feedback by askingquestions such as

a) Am I making myself clear? b) Is there any thingelse you dont understood? Etc.,

Senders can improve feedback by a) timingthe delivery appropriately b) providing just enoughinformation

Feedback enables communicator to carryout

corrections / changes for message to be effective6. Additional feedback

Additional relevant information supporting earlier feedback

Periodic information Eg. 1.Status of relief operations,weather updates etc., in case of a natural calamityafter feedback on relief suppliesEg.2 Stock market position updates

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Two Way or Transactional Communication Process The two-way concept is more modern vis--vis earlier

linear model A group of people are involved to complete the cycle Here both sender and receiver play reciprocal and

reversible roles. Eg telemarketing, call centre services It makes no sharp distinction between the roles of the

sender and receiver because same person plays bothroles

However, the receiver always plays a more importantrole as an active agent in the construction of themeaning of the message

Two-way concept ensures that the receiver perceivesthe message as intended by the sender throughfeedback

It is a continuous process, wherein the next transactionbegins simultaneously, thus improving the efficiency of the model

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Example: Two-Way Communication Process Ideation - An organisations policy to be circulated

among all employeesthrough news bulletin

Encoder - The editor / person who writes the policy Message - The content (policy details) and the

words/ pictures used to conveythe policy to the employees

Channel - The new bulletin Receiver The audience of the message, for whom

the policy is intended andwho read the bulletin

Feedback Employees reaction to the policy

communicated

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Elements of Communication Message it is raw information organized,

structured or shaped for delivery in the mind of the sender in verbal or non-verbal form. Sender The person who transmits, spreads or

communicates a message or operates an

electronic device. He conceives and initiates themessage with the purpose of informing /persuading / influencing / changing the attitude,opinion, or behavior of the receiver. He decidesthe communication symbols, the channel, the

time, for sending the message after consideringthe total situation in which communication takesplace

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Encoding changing the message in mentalform (ideas, facts, feelings, opinions) intosymbols ( words / gestures / pictures / audio-visuals ) keeping in mind the receivers ability tounderstand and interpret them correctly.

Channel It is the medium of communication, inwritten, oral or audio-visual form in which themessage is delivered.

Receiver The targeted audience of themessage who tries to understand and interpretthe total meaning of the message as transmittedby the sender

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Decoding Act of translating symbols of communication

into their ordinary meanings involving reading the words,tone of delivery, attitude of the sender as reflected by thestructure of the message and choice of language used bythe sender

Acting The receivers response action shows whether he has understood the message

Feedback It is the loop that connects the receiver withthe sender (who acts as a feedback receiver) who gets toknow what his communication has accomplished. This is

important to take corrective action. Also to know thecorrectness and impact of the action taken.

The Shannon-Weaver Model conceives communication process as linear

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The Shannon Weaver Model conceives communication process as linear act and feedback as a separate act with correction to noise. This is shownin dotted line. Feedback corrects the distortions caused by noise barrier

which could be filters in the mind or disturbance in the environment.

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Major Difficulties in Communication

Ensuring that the received meaning affectsreceivers behavior in the desired way

Achieving accuracy in communication themessage

Ensuring that the message conveys thedesired meaning

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Successful Communication

Communication is successful when :- The message is properly understood

The purpose of the sender isfulfilled

The sender and the receiver of themessage remain linked throughfeedback

CHARACTERISTICS OF SUCCESSFUL / EFFECTIVE COMMUNICATION

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CHARACTERISTICS OF SUCCESSFUL / EFFECTIVE COMMUNICATION

Successful communication messages have a number of common

Characteristics Seven Cs of Communication

1. Candidness:

Straight forward, frank, honest, fair

No prejudice, bias in speaking, listening & actions

Should reflect confidence, credibility & sincerity.2. Clarity (to understand )

Clarity of expression and well organized thought process

Use of accurate, simple and familiar words

Use of short sentences

One main idea in a sentence.

Use tables, charts, photos, diagrams to clarify.

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3. Completeness :

Planned & structured in full, no gaps in presentation

Should give all the information that listeners need.

Gains belief & trust of receiver

Consistent with receivers value system

Provides practical information

Internal & external functions are served> Internal = orders, instructions, directions, suggestions> External = customers, shareholders, dealers, govt depts,

publics It is Result oriented

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4. Conciseness Conveying the message in the fewest

positive words without sacrificing clarity andcompleteness

Use of single words for lengthy phrases.a) Are in need of - needb) In due course of time Soon

c) As regards to the fact that Considering Convey the intended meaning with lesser words.

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5. Concreteness Being definite, specific, not vague

Vivid description of an event or state Specific facts & figures rather than impressions

Use active voice instead of passive voice

eg: I request you to .

6. Correctness

Check grammatical errors

Sequence of tense may be worngCorrect spelling

Correct statistics

Right level of language.

7 Courteous:

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7. Courteous:

Proper decorum of message.

Politeness and manners Saying things with force and assertiveness withoutbeing rude.

Speakers tone should reflect respect to listener /audience

Always thank for generosity and favour.

Request with please

Be tactful to generate light, not heat

General Question - The best ideas in the world are useless if theycannot be communicated clearly and concisely. Discuss (10 marks )

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GROWING IMPORTANCE OF COMMUNICATION IN MANGEMENT.

The work place is undergoing profound changes A business communicator is likely to be affected by these

changes Major changes are taking place in the following areas of

management that has many communication implications1. Large size of organizations

>Modern forms of business organizations are large in sizelarge = large installed capacity & large no of work force, growth,

diversification, mergers & acquisitions, many geographic locations> Purpose of becoming large = attaining economies of scale> So a large work force operates within & outside the organization

> Managing people in such a situation = coping with differentlevels of hierarchy, direction, coordination & motivation requiresexcellent communication skills

eg. ITC, HLL, TATA , Wipro, Infosys etc rely on efficientcommunication system for smooth functioning

2 Hi h d f di i i f k

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2. High degree of division of work> Every function has become more

sophisticated and requires new skill setseg.1. Finance dept can have a separate units

handling expansion activities such asM & A, diversification etc., withtraditional accounting

eg.2. Marketing dept can have separate unitconcentrating on New Product Development,coordinating Mktng Res etc., with traditional

distbn & sales functions> These require mutual co-operation andunderstanding among different departmentswhich can only be achieved thru good

communication

3 Fl tt d g t hi hi

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3. Flattened management hierarchiesIn response to intense global competition & other environmentpressures businesses are required to cut costs = reduce fat & buildlean organizations . This means :-

Fewer layers of managers separate decision makers from lineworkers( vis a- vis traditional PSUs with many layers)

So Lines of communications are shorter, for decision makers toreact more quickly to market changes

But flatter organizations also bring greater challenges In the past, traditional hiearchical management structures did not

require every employee to be a skilled communicator Messages were simply past to next level of management Today, frontline managers & subordinates participate in decision

making = inputs & commitments become necessary for their firmsto survive in global markets

Nearly all key employees have computers & are required to writetheir own messages

Hence, very employee has to be a skilled communicator Eg. Most globalized businesses Pepsi, IBM, GM etc practice flat

organization structure

4. Advanced Technology

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gy Rapid changes in communication technology =

communication revolution- Modern business organizations should adjust to latest

technology in production for success in competitiveworld- Installation new technologies ensure speed,

accuracy, message load etc & build efficientcommunication net work

- They help mgmnt overcome communication barriers So regular training of staff is required to update

knowledge and skills to increase job performance Good communications skills assure competent work

force & market leadership for companyEg. Teleconferencing, computer aided design &

manufacturing, voice mail etc require goodcommunication skills for orgn to stay on top

5. Cut throat competition

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p

Liberalization, globalizations causes competition locally, nationally,globally. Eg. Pepsi fights Coke in India as in USA

Successful communication in new markets requires new skills, culturalknowledge, sensitivity, patience etc

Hence special communication training in inter cultural businesstransactions is required

6. Trade Unionism

Union publications are the collective voice of the work force Executives have to interact with unions & exchange views to transmit open

& frank information to create confidence and trust to effect changessmoothly

Regular information exchanges between managers and union officials

helps maintain healthy labour relations & harmony in a rapidly changingbusiness environment and resolves disputes amicably

7. Expanded team based management

Adoptation of quality circles ( in a prodn batch ) is a new concept inTQM. All members of the team are required to analyze problems andnegotiate solutions. Good communication skills builds team spirit.

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8. Human relations .

Good human relations makes employees feel they are co-partners inbusiness and motivates them to identify with organization goals and

growth opportunities and also build their careers with the organization To develop better understanding, mutual trust and confidencebetween management and employees is a chief function of management communication

Effective communication develops a sense of belonging and loyalty

and improves productivity & competitiveness in an organisation9.9. Increasingly diverse work force .

With globalization workforce from different cultures is becoming thenorm.

Managers require good communication skills to be effective.10. Public relations

Companies need to communicate with publics, Government,Suppliers, investors, consumers etc., about their operation andcontribution to society

PR related communication helps improve image of company in

11 Promotion of products and services

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11. Promotion of products and services

Requires better communication to sustain and succeed in themarkets.

12. Personal

Managers have to prepare reports, deliver speeches, conductinterviews etc,

Good communications skills develop personality and ensuresupward mobility in career.

13. To reap benefits of effective communication- quicker problem solving

- stronger decision making

- increased productivity

- steadier work flow

- stronger business relationships

- clearer promotion materials

- enhanced professional image

- improved shareholder response

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The Benefits of Effective ( business) Communication

1.Quicker problem solving

- A better understanding of co-worker & customer behaviour - Active accurate listening habits - flexibility to understand co-workers from different cultures - better industrial relations & cooperation 2.Stronger decision making good leadership - attracts best of talent ; supply of reliable accurate information 3. Increased productivity - even under adverse conditions - improved team spirit & coordination

- inter personal motivation ; managerial efficiency ; jobsatisfaction

- promotes employees sense of belonging and commitment

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4. Steadier workflow & smoother working - organizational climate of support & trust

& morale building 5. Stronger business relationships arising

out of good public image 6. Clearer promotional materials through

better communication skills 7. Enhanced professional image - confidence in presenting press briefings 8. Improved stake holder response - to speak effectively before people, inside

& outside - face people with confidence

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1. Internal/operational

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pcommunication

All the communication that occurs in conducting

work within a business or organization isclassified as internal operational communication This is the communication among the business /

organization workers that is done to implementthe businesss operational plan manufacturingproducts, providing service, or selling goods

It includes orders, instructions, verbal exchangeamong workers, reports that managers preparere sales, production, inventories, finance,maintenanace, e-mail exchanges etc.,

It helps reach orgn goals & be proactive

2 External operational

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2. External operationalcommunication

The work related communication that abusiness does with people and groupsoutside the business is extenal opeartionalcommunication ; i.e., with its publics suppliers, service companies, customers,and the general public

Includes, efforts at direct selling, mailing

brochures, telephone callbacks etc Advertising radio / TV / print media/website messages, POP display , PR

Every business is dependent on outside

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Every business is dependent on outsidepeople and groups for its success. Sobusiness messages to outside people

takes the place of human contact The clarity warmth and understanding

they display also send a message. Thepositiveness of this message is referred toas good BUSINESS ETIQUETTE whichcontributes to companys good image

In todays complex business society,external communication helps in mutuallyprofitable existence

External communication can be bothformal and informal

3 Personal communication

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3. Personal communication Communication in organizations that are non

operational and informal in nature andcommunication that takes place with strangers inpublic are called personal communication (PC)

It is the exchange of information and feelings weengage in as social animals

Personal communication can have a significanteffect on the success of a business plan.

The nature of conversation in a work situation

has a bearing on employee attitudes and their productivity Heated exchanges or idle talk can affect

productivity ; PC somewhere within these

extremes can nurture ideal productive attitude.

COMMUNICATION STRUCTURE IN AN ORGANISATION

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In business organizations, the effectiveness of acommunication system is decided by :-

-to what extent the necessary information requiredfor decision making reaches the concerned person(who needs that information)

-at the right time (when the information is needed)This network of information supports the overallfunctioning of management by integrating andco-ordinating the workforce for achievingorganizational objectives.

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Hence every organization creates a network (channel)for information to pass through its different levels of authority and functional heads and units.

The flow of communication follows the structure of theorganisation

The information passes through the organisationalpyramid

Board of Directors----> MD ---> Senior Management-----> Middle Level Mgmnt-----> Senior Supervisors----> First

Line Supervisors---->Shopfloor Employees

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Internal Communication System in Organisation

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Organisational Pyramid

Board of Directors

MD

Middle Level Mgmnt

Senior Supervisors

First-line supervisors

Employees/ Shop-floor Employees

FLOW OF FORMAL COMMUNICATION IN ANORGANIZATION

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ORGANIZATION( Internal Communication )

1. Vertical Communication

a) Downward Communication

b) Upward Communication

2. Horizontal Communication

a) Geographical Organisations / Geographical location

of divisions

b) Functional Organisation / Functional basis of

division

c) Cross Channel Communication

1 Vertical Communication

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1. Vertical Communication

At the board room level, policy decisions are taken

From these, downward information and instructions are sent to

senior managers. They ensure that policy decisions are easily understood,

implemented, sustained, monitored, received and reported asfeedback.

Any information on feedback (performance data, employeesexperience/suggestions) is , in turn sent upwards.

The key links are managers and supervisors.

They pass information upwards and downwards.

They carry out line operations

HRM personnel circulate information

Too many hierarchies in management slows & delaysCommunication

Peter Drucker suggested flat system of management to improveCommunication. Modern organisations adopt the flat system

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2. Horizontal Communicationsion is the flow of information between persons of same status or within the same work unit mainly for Exchangeinformation, requests, suggestions & advice done

informally ; Co-ordination of activities; Discussion of ideas. It helps coordinate work assignments, shareinformation of activities, develop inter personnelsupport & create a cohesive work force eg.Committee meetings. Lack of trust, concern for jobsecurity etc can sometimes create barriers to the freeflow.

V i l C i i

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Vertical Communication

1 a. Down Ward Communication In most organisations the large no. of

vertical communication moves downward from someone of higher authority to someone

of lower authority, through written and oralchannels such as memos, telecon, meetings,co. newsletter, policy manuals, prodn.,manuals, video tapes etc., covering :-

Instructions & orders ; Education & training ;Policies & procedures ; Day to day operations ; Jobperformance; Warning; Appreciation ; other orgl.,information etc.,

One of the problems with written downward

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communication is that mgmnt may assume that whatis sent downward is received and understood,Unfortunately, that is not the case

Usually, downward communication from boss mayreceive more attention, faster responses and moreapproval than messages coming from peers or superiors

The fact that those in subordinate positions tend toseek your goodwill does not necessarily mean thatyour ideas are of higher quality or that they arecommunicated more effectively

Vertical Communication

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1 b. Upward Communication

It is the flow of commn., from lower level employees to upper

level employees. eg. Reports on production, sales etc., tradeunion publications, employee surveys etc.,

Upward commn., is important because it provides higher mgmnt.with the information needed for decision making . Eg., drop or increase in sales, rejects, quality problems, customer complaints,market intelligence, employee absenteeism

It also cultivates employee loyalty by giving employees anopportunity to be heard, to tell their grievances and to offer suggestions, ideas, solutions etc.,

It provides the feedback necessary to let supervisors knowwhether subordinates recd., & understood messages that weresent downward.

The free flow of communication upward helps preventmanagement isolation from reality

2. Horizontal Communication (HC)

It i th fl f i f ti g ithi th di i i Al

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It is the flow of information among peers within the same division. Alsocalled peer communication, Eg. Admin Dept holds weekly staff meetings atwhich prodn., mktng., & HR exchange information about current state of affairs.

HC is important to help coordinate work assignments, share informationon plans and activities, negotiate differences, and develop inter-departmental support, thereby creating a more cohesive work unit

When the organizational goals and objectives require frequent interactionamong departments within an organization, the more intense will be thehorizontal communication. Eg. committee meetings on TQM as a sharedvalue

Intense competition for scarce resources, lack of trust among co-workers,or concerns about job security or promotions can sometimes createbarriers to the free flow of HC.

Needed when there is

Geographical location of divisions.

Functional basis of division.

Cross-Channel Communication

Geographical Organizations

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Done in large setups for organizational efficiency andlocational advantage. Eg. HULs Lakme has establishedregional offices in major metros controlling its own andfranchisee arrangements

Sometimes the regional operations are so large thatdifferent division of the same company are located in thesame premises.

Eg: TISCO (Jamshedpur), different division of the samecompany are located in the same premises like its variousfurnace divisions, R&D division, Total Quality Controldivision etc.,

Seminars, presentations and executive meetings helpsdivisions maintain close contact

Communication is essential here, to sustain a sense of unity as part of a single organization.

Functional Organizations

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Normally business organizations form divisions on the basis of differentfunctions, like production, marketing, finance, HR, R&D, admin., etc.,

All such divisions function independently and yet remain linked with eachother through peer-group communication and work-flow information

With growth of business, size of organizations, better technologies, therange of goods & services that the organization is involved in needs to becoordinated through horizontal channels of communication

Eg. Based on market information, production schedules needs to beworked out, purchase of raw materials needs to be indented, workingcapital made available, inventories of finished goods & distributionorganized, HR resources recruited & trained etc.,

Any failure in the operations adversely affects profitabilityThe chain of workflow in an industry can be steadily managed only

through horizontal communication between the sections that areinterlinked through horizontal communication between sections

Cross Channel communicationi h h f i f i l i

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It is the exchange of information among employees indifferent work units who are neither subordinate nor superior to one another.Eg. Payroll clerk in accounts sends out messages to all

company employees requesting savings details tocompute TDS

Staff specialists use cross channel communication

frequently because their responsibilities typically involvemany departments within the organization Because they lack line authority to direct those with whom

they communicate, they often rely on persuasive skills. Eg. Implementing ISO standards. The ISO committee

comprising members of various departments, educate &train employees and persuade them to adopt ISOstandards and assess its implementation

COMMUNICATION AND THE LINE AND STAFF MANAGEMENT (LSM)

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LSM is a system of mgmnt in large organisations comprising line managers

and staff managers.

1. Line Managers : Main activityeg: Manufacturing, marketing, sales, Human resources, finance.

2. Staff Managers : Support activity.

Eg: Accounting, HR,

A network is created between line mgmnt (functional) andstaff mgmnt(support) by means of an effective internal communication

system without which an organisation cannot function properly or thrive

in the business world

FORMAL COMMUNICATION in an organisation comprises of

1. Line Relationships

2. Functional Relationship

3. Staff Relationship.

Internal Communication System in Organisation

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FORMAL COMMUNICATION in an organization comprises of :l h l l h ff l h

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1. Line Relationships 2. Functional Relationship 3. Staff Relationship.

1.Line Relationship Depicts the l ine of authority

Part of Communication, for upward and downward flow (vertical Commn)1) All official Communications, orders and instructions move downward from

seniors to subordinates.

2) Similarly all follow-up action, compliance and execution information etc.,move upward from subordinates to boss.

3) Usually, all organizations insist on respecting the normal chain of authorityfrom one position to the next for smooth functioning

2. Functional Relationship

Communication that occurs when departments inform work and relatedorganizational matters to each other Horizontal Communication

3. Staff RelationshipCommunication that supports line management, marketing, production etc.,It does not carry the executive authority of line relationship within.

Eg: Communication relating to personnel, public relations, administration,finance that is intra departmental and mostly horizontal in nature

Informal Comm nication

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Informal Communication

By nature man will not always communicate throughformal channels alone

Side by side to a formal channel, every organization alsohas an equally effective informal channel

It is nor officially sanctioned, and quite often, evendiscouraged or looked down upon But it is very much in existence and called grapevine

because it runs in vertical, horizontaland diagonaldirections.

It flows in wherever people gather, lunch room,recreation center, wherever people can chat

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Man is essentially sociable in nature and as wego down the pyramid of an organization, themore manifest this sociability becomes

The important socio-psychological reason for this is the intense, irrepressible desire tocommunicate, share ones feeling, gossip or indulge in small talk

This gossip could carry some importantinformation true or hearsay that can get therumor mills working

INFORMAL COMMUNICATION in real life

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INFORMAL COMMUNICATION in real life

Could be an innocent Chat

Communication between peer-group managers fromdifferent departments or within the same department.

Could be Gossip/ hearsay / fact thru TheGrapevine (GV)

In real life, sometimes employees feel inadequatelyinformed in a formal system. They feel the systemconceals more and reveals less.

Hence, an informal Communication system, known asthe Grapevine comes into existence.

The GV is all pervasive. It exists at all levels of theorganization from corporate boardroom to assembly

line

Grapevine is always attributed to a reliable source, to make newsd h

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sound authentic

Unofficial version of news is more easily believed by people than officialversions ; news through grapevine spreads like wild fire, quickly anduncontrollably - usually distorted and exaggerated version of information.

Grapevine shows that the management has missed the opportunity of sharing some good/bad information that is of interest to the employees

Hence, gaps in the formal communication is filled up by informal gossipon the basis of equal friendship and not official status relationship. It isbelieved that about 80% of the information passed along grapevine couldbe business related

There is a possibility that there could be some truth in the GVinformation . It is important that management tries to follow up thegrapevine message with official written messages and statements thatwill help verify accuracy of data in the grapevine. This helps in building amutual trust based on open communication followed throughout theorganization.

The GV is a normal, often vital part of everyorganization

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organization. Rather than trying to eliminate the GV, which is a futile

effort, competent managers accept its existence and pay

attention to it. They act promptly to counteract false rumors with formalcommunication network, like meetings, newsletters &bulletin boards, to ensure that all news, both +ve & -vegets out to employees ASAP

Such free of flow of information within the orgn., not onlystops rumors, but simply makes good business sense The GV is most active when change is taking place

and the need to know or level of fear is highest,especially during plant layoffs or closings, M&A etc.,

In the present dynamic situation of business, managersmust learn to handle GV in a professional manner asthey would a crisis

Eg. A VRS proposal could spread as layoff exercise tocutback costs

Factors responsible for Grapevine

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Factors responsible for Grapevine

Feeling of uncertainty in difficult times Feeling of inadequacy among some

groups Formation of favored groups giving others

insecurity or isolation Some unusual happenings in the

organization Personal problems with some employees

Types of GV Chains

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Types of GV Chains

Single-strand chain A B C .. Gossip Chain One to many Probability Chain - Indifferent & random

in passing info Cluster chain A selected people

who in turn pass to othersof their choice

Merits / Advantages of Informal

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Communication Uniting Force brings together work force in matters of common interest Feedback value re. policy decisions reach management

faster . It gauges the Pulse better wrt informationabout attitudes, relationships, employee needs,

interpretations of policies, values & norms of organization etc., Speedy transmission pass on messages very fast

like wildfire Creation of ideas / true expectations that are of value

to decision makers Good personal relations is promoted through informalcommunication and is important for success of humanrelations in an organization

Limitations / Disadvantages of

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Informal Communication Rumors can be provocative and disastrous for goodrelationship between employees and management Inadequacy it could be information without solid

evidence or it may not give the receiver the completeinformation; usually restricted to iiry issues of HR

Changing Interpretations - likely to be distorted, dilutedor exaggerated owing to different hearing perceptions Counter productive damaging reputation of the

organization by exciting false hopes or fears amongemployees ; consequently mgmnt can face a wave of

prejudice, emotions, half-truths, ambiguity etc., Cannot be taken seriously could be contradicting &undependable and there is hardly any accountability inspreading it

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Information to be communicated at workplace.

Statutory Information eg. safety regulations

Regular work situation information- eg. timing of shifts Major policy or operational change information-

eg. quality teams Information bulletin eg. re. incentives, bonus

etc

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COMMUNICATIONIN CRISIS

In a crisis situation the PR Department of amanagement should plan for and respond to crisis. The crisis situation may arise due to.

- Environmental accidents.- Sabotage.

- Strikes.

- Massive Power Failure.- Major Litigation

- Abrupt Change in Management

- Terrorist Attacks

If a crisis situation is not handled properly it may lead to:

- Destroying companys reputation

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Destroying company s reputation

- Drain its financial strength.

- Erode morale- Invite protracted investigations.

-Heavy fines.

- Negative publicity. To minimize the impact of above experts suggest the following

-Crisis management should be planned in advance in anyorganization;

- Selecting a communication team and a knowledgeable

spokes person to handle the requests for information duringcrisis;

- The individual selected should be able to speak fluently inthe local language and English and remain calm when acrisis hits;

-Experts recommend that Managers, especially top management,be visible in the hours immediately following the initial crisis todemonstrate that the company will do whatever possible

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- To control the situation.

- To find the cause.

- To prevent a future occurrence. Also, experts recommend that managers minimize the impact of any crisis an employees y communicating honestly and openlyand often using caution when sharing personal opinions.

Periodic crisis drills can be conducted by management to check the alertness of the communication team. periodic check of all equipment that will be used in a crisissituation to be inspected for their working condition

Eg., fire extinguishers, pressure hosepipes, water tanks,

fire escapes, electrical wiring, use-worthiness of building, etc., Anticipation or prevention should be the motto of thecommunication team.

WHAT TO DO IN A CRISIS

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To be prepared for trouble;

-Identity potential problems;-Appoint or train a response team

-Prepare and test a crisis

management plan do get top management involvedas soon as the crisis hits. Do set up a news centre forcompany representatives & themedia, equipped with phones,

computers and other electronictools for preparing news releases.

- issue at least two news updates aday and have trained personal oncall to respond to questions roundthe clock.

Dont blame anyone for anything

Dont pass the buck.

Dont speculate in public

Dont refuse to answer questions

Dont release information that will violate anyones right to privacy.

DOs Donts

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- Provide complete information packets to the media ASAP

- To prevent conflicting statementsand to provide continuity, appointa single person trained in advanceto speak for the company

-Tell receptionists to direct all callsto the news centre Do tell the whole story

- openly, completely and honestly

- if at fault, apologize. Do demonstrate the companysconcern by your statements and

your actions. Do spell out relief measuresbeing taken

Dont use the crisis to pitch products or services

Dont play favorites with mediarepresentatives.

DOs Donts

Interdisciplinary Approach in Communication

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p y pp

Communication is concerned with behavioral aspects human relaionships Human rel.ships have multi dimensions like social, psychological, linguistic etc Human rel.ships profusely employs communication A man is studied from various angles social,economical, political, psycholl Communication is interdisciplinary because it is concerned with many

aspects of human relations and social sciences It is also interactive and integrative. Hence there is a need to draw from

various disciplines of different viewpoints. Important ones are :-> Psychlology examines a persons potential for interaction, perception

cognitive process & memory = imp. Ingredients of communication> Linguistics - science of language that contributes to commucn prcess.

> Accounting communicates results of business operations> Marketing - communicates products & services to consumers

> HR communicates importance of human assets to employers> Auditing detailed examination of business & communicates SWOT> Science brings systematic approach, logical reasoning to commucn