Business Communication Roles

Business Communication Roles

Business Communicatio

n Roles
UNIT-1

Introduction
Communication is an essential element in the success of any business. The process of
transferring information from one person to another, within and outside the business
environment, is termed as ‘Business Communication.’ The term ‘Business Communication’ is
derived from general communication which is associated with business activities. In other terms,
communication between business parties or people for business-related tasks is considered
as ‘Business Communication.’ 
Definitions
Different scholars have given different definitions of Business Communication. Few of them are
mentioned below:

According to Ricks and Gow defined Business Communication as a system that is responsible

to affect change throughout the whole organization.
According to W.H. Business Communication is exchanging business-related different views,
ideas, and news within the related parties.
Prof. J. Haste stated that when the communication occurs between either two or more than two
business people for the purpose of effective organization and administration of business then it is
considered as Business Communication.

Effective business communication is the way employees and management communicate to

achieve organizational goals.

The objective is to improve organizational efficiency by reducing mistakes. Business

Communication includes different aspects like marketing, public relations, customer relations,
corporate and interpersonal communication, etc.

PURPOSE OF COMMUNICATION

1. For instruction: The instructive function unvarying and importantly deals with the
commanding nature. It is more or less of directive nature. Under this, the communicator
transmits with necessary directives and guidance to the next level, so as to enable them to
accomplish his particular tasks. In this, instructions basically flow from top to the lower
level.
2. For integration: It is consolidated function under which integration of activities is
endeavoured. The integration function of communication mainly involves to bring about
inter-relationship among the various functions of the business organization. It helps in the
unification of different management functions.
3. For information: The purposes or function of communication in an organization is to
inform the individual or group about the particular task or company policies and procedures
etc. Top management informs policies to the lower level through the middle level. In turn,
the lower level informs the top level the reaction through the middle level. Information can
flow vertically, horizontally and diagonally across the organization. Becoming informed or
inform others is the main purpose of communication.
4. For evaluation: Examination of activities to form an idea or judgement of the worth of
task is achieved through communication. Communication is a tool to appraise the individual
or team, their contribution to the organization. Evaluating one’s own inputs or other’s
outputs or some ideological scheme demands an adequate and effective communication
process.
5. For direction: Communication is necessary to issue directions by the top management or
manager to the lower level. Employee can perform better when he is directed by his senior.
Directing others may be communicated either orally or in writing. An order may be
common order, request order or implied order.
6. For teaching: The importance of personal safety on the job has been greatly recognized. A
complete communication process is required to teach and educate workers about personal
safety on the jobs. This communication helps the workers to avert accidents, risk etc. and
avoid cost, procedures etc.
7. For influencing: A complete communication process is necessary in influencing others or
being influenced. The individual having potential to influence others can easily persuade
others. It implies the provision of feedback which tells the effect of communication.
8. For image building: A business enterprise cannot isolate from the rest of the society. There
is interrelationship and interdependence between the society and an enterprise operating in
the society. Goodwill and confidence are necessarily created among the public.

Types of Business Communication along with Examples

There are 4 main types of business communication in any organization or business i.e.

1. Internal Business Communication

Internal Business Communication means communication that occurs within the members of the
organization. This communication includes both formal and informal communication. Also,
different departments that transmit communication by different means to employees come under
internal communication. Internal communication should be effective as it is a vital source of
viewing and representing organizational issues. Effective internal business communication may
increase job satisfaction level, productivity, the efficiency of employees by decreasing their
turnover and grievances and helps in increasing profits.

It is further categorized as internal (upward) communication and internal (downward)

communication.
a. Internal (Upward) Communication: This type of internal communication involves the
bottom to the top management approach. Here, the information flows from subordinates to
managers or any person that is on the upper in the hierarchy level.

For example, employees of the HR department of an organization prepare an attrition report and

communicate the same to the HR Manager. The attrition report consists of information on the
monthly or annual employee turnover of an organization and reasons for the same. This helps the
HR Manager to understand the cause of attrition and to take corrective measures on time to
reduce employee turnover.

The characteristics of upward internal business communication include:

 It includes bottom to top approach i.e. subordinates to superiors.
 Its nature is participative.
 The main purpose is to provide timely feedback, suggestions, making requests, escalating
any issues or concerns, etc. to superiors.
 The flow of the information is from the lower level to the upper level.
b. Internal (Downward) Communication: In downward communication, the information flows
from the top-level management to the employees in an organization. This information is related
to passing on instructions to subordinates or employees to do their respective tasks. Downward
communication is being used by managers to communicate different goals, procedures and
policies, guidelines, decisions, instructions, etc. to their subordinates.
The process of downward communication in business includes passing on messages from the top
level to the lower level through the chain of hierarchy. This type of communication can be in oral
or written form. The written form includes different notices, manuals, news display in
electronic form, etc. whereas, the oral form of downward communication includes different
face-to-face conversations, telephonic communication, meetings, etc.

For example, the top-level management may instruct managers of different departments on

certain new rules and regulations in the work area that need to be carried out in routine activities
of different departments. Like there may be a change in the office working hours or office
timings by the management and the same is communicated to employees by circular or notice or
through the e-mail system.
The characteristics of downward internal business communication include:
 It includes top to bottom approach i.e. superiors to subordinates.
 Its nature is directive.
1. Main purpose is to communicate organizational objective, plans and procedures,
instructions, etc. to subordinates.
 The flow of the information is from the upper level to the lower level.
2. Horizontal/Lateral Business Communication
Lateral or horizontal communication is related to communication among co-workers i.e.
either verbal communication or written communication. This may include inter-departmental
communication or communication between cross-departments and can be between people of the
same or similar rank in a company. This is a crucial communication to achieve the desired
results. So, this communication happens among employees having an equal hierarchy level. To
achieve the functional effectiveness of different organizational units, horizontal or lateral
communication is required for seeking mutual cooperation and mutual help
For example, the Marketing head of an organization is supposed to communicate about market
trends, customer needs and expectations, product demand scenario, etc. to a production head for
production of products accordingly.
Similarly, the HR manager of an organization works with different department heads for
different functioning like hiring, training needs of employees, performance appraisals, welfare
activities, etc.

3. External Business Communication

Communication with people who are external to the organization is known as external business
communication. These people can be customers or shareholders or suppliers or partners or
regulatory bodies, etc.

For example, the purchase department supervisor may communicate with vendors for purchase
quotations of raw-material and similarly, the sales department communicates with customers for
sales of goods or services.
External communication facilitates increasing sales volume, effective operations, an increase in
profits of organization, etc. This ultimately results in increasing corporate image, goodwill and
overall performance of the organization by achieving its goals and customer satisfaction.

Importance of Business Communication

1. Helps in increasing productivity: Effective business communication increases the
productivity of staff by boosting up teamwork. It creates a trustworthy and understanding
environment among employers and employees. Effective communication is related to
cooperating with employees and understanding their needs and desires. By doing so, employees
are able to accomplish their tasks more effectively and efficiently. Also, the scope of doing
mistakes or errors during their work minimizes due to effective communication.
2. Helps in increasing customers: Customers are an important part of any business and
effective business communication can facilitate in attracting new customers and retain the
current customers. A well-defined marketing strategy and public relations campaign run by an
organization generates the interest of customers in its goods or services and helps in building the
corporate image in customers.
3. Enhances business partnerships: Business Communication also improves partnerships in
business. It plays a significant role in dealing with external business clients or vendors. Vendors
may be required to communicate on products regularly for improvements. Also, an effective and
harmonious relationship with other businesses determines the further success of an organization.
A business unit that has developed its image as an entity for easy partnership through its
effective communication can attract other business units for forming business relationships with
them.
4. Facilitates innovations in business: Effective business communication helps in business
innovations as well as it facilitates employees to convey their ideas and suggestions openly.
Similarly, at the time of launching any new product in the market, effective communication
ensures the performance of the sales team, market acceptance of the product, fast delivery of
products in the market, etc.
5. Information exchange: Business communication is required by an organization for
exchanging information with internal and external stakeholders. This helps in achieving its goals
effectively.
6. Preparation of plans and policies: Through effective business communication, organizations
can make their plans and policies properly. Relevant information is required for preparing these
plans and policies. Through communication, different managers source information through
reliable channels.
7. Execution or implementation of plans and policies: To implement or execute the prepared
policies and plans in a timely manner, managers are supposed to communicate these throughout
the organization. Through effective communication, they are able to disseminate plans and
policies to the internal and external stakeholders.
8. Boost the efficiency of employees: Effective business communication plays a key role in
increasing the efficiency of staff. Through communication, different plans and policies, critical
issues, goals of an organization, etc. are described to employees that enhance their knowledge
and make them efficient to do their tasks effectively.
9. Goals achievement: Through effective business communication employees become attentive
and productive in doing their jobs that result in the timely accomplishment of their tasks and easy
goals attainment.
10. Helps in solving problems or issues: Through different communication channels, managers
get information about different routine and non-routine issues and based upon that they can take
required actions to sort out those issues.
11. Facilitates decision-making: Effective decisions require up-to-date information. Using
effective communication, managers can acquire information from different sources and can
utilize it for making correct decisions.
12. Improves worker-management industrial relations: In the workplace, workers and
management have an industrial relation. The success of any business depends upon the healthy
industrial relation. Business communication plays a significant role in maintaining harmony in
this.
13. Helps in brand and product/service promotions: In today’s competitive business
environment, lots of companies offer similar kinds of products or services. To sell their products
in a good manner, businesses need better communication to promote products and services in an
effective way.
14. Reduces chances of conflicts: Through effective communication different business parties
can exchange information in a smooth way. This results in fewer conflicts, controversies,
arguments between them.
15. Increases employee satisfaction level:
Effective communication which is fair and smooth creates better mutual bonding and the
understanding between employees and management. This helps in increasing the satisfaction
level among employees who put their maximum efforts to achieve the goals.

16. Increases employee loyalty: Through effective business communication, employees are well
informed about their performance from time to time. Also, employees get appreciation, rewards
in both monetary and non-monetary terms for their better performance. This enhances their
loyalty towards the organization.
17. Enhances efficiency of managers and leads to effective leadership: Effective business
communication leads to an increase in the operational efficiency of managers. With the help of
fair communication, managers can perform different managerial functions like planning,
directing, organizing, controlling, etc. smoothly. Moreover, if communication is effective then
only effective leadership can be taken place. For qualitative leadership activities, a proper and
smooth system of communication in business is essential.
18. Proper functioning of different departments: If information is shared smoothly and
effectively in inter-departments and intra-departments then different departments of any business
like accounts, finance, purchase, operations, HR, IT, and production, etc. can do their tasks more
accurately and timely.

Business Communication Methods

1-In-person (Face-to-Face) Business Communication: In-person communication is the

most common and preferred method of business communication. As it is generally in the
form of meetings or conferences which is face to face communication format. This
requires refined in-person skills. This method also includes non-verbal communication
i.e. body language. While having a conversation between two or more people in business,
body language like gestures, facial expression, etc. also play a vital role in
communicating a person’s attitude towards others.

2. Good listening skills are also an element in better in-person communication. Most of the
business communication includes listening skills to understand fast discussions.

2. Communication by email system: An e-mail has become the most widely used
communication system in any business. Due to its feature of sending and receiving mass or
multiple messages at a time, email is considered as one of the preferred methods in business
communication. It also increases efficiency as emails can be sent and responded in fast mode.
The conversation through email can be among two or more than two people and is the best
substitute for formal face to face meetings as discussions can be done in an email system.
3. Web conferencing: In the web conferencing method of business communication, the internet
is being used for communication in meetings, conferences, presentations, seminars, and
imparting training. It includes features like sharing of files, screens, real-time chatting, recording,
etc. This can be considered as the most effective way of interacting with people sitting at
different locations. Web conferencing is done by using the phone (teleconferencing) or video
equipment (videoconferencing).
Workplaces also opt for the teleconferencing method of business communication. If it’s not
feasible for people of an organization or business to attend a physical meeting or conference then
communicating through telephone conferencing is an effective method. This also saves travel
expenses as people who often require extensive traveling for business purposes so they can
communicate through teleconference by sitting in their office.

Videoconferencing is also similar to teleconferencing except in videoconferencing one can see

the people whom to communicate with. This requires video conferencing equipment that is
arranged by the IT department of a business.
4. Written communication: Written business communication is a formal and detailed form of
communication than other methods. Different written communication tools include formal
letters, brochures, posters, etc.

5. Other methods: There are other business communication methods like an instant messaging
system. This technology is easy to use as one can easily connect with people while working
offsite and have conversations without waiting so long.

BUSINESS COMMUNICATION ROLES

Business communication occurs between two or more parties to exchange business-related
information. The success of a business depends on the efficacy of business communications. For
this, communication is regarded as the lifeblood of business. The role or importance of
communication is discussed below:

 Exchanging information: Communication is mainly the exchange of information

between two or more parties. Through communication, organizations exchange
information with internal and external parties and they’re referred to as “internal
communication” and “external communication” respectively. Communication also brings
dynamism in organizational activities and helps in attaining goals.
 Preparing plans and policies: Communication helps in preparing organizational plans
and policies. Realistic plans and policies require adequate and relevant information. The
managers collect required information from reliable sources through effective business
communication.
 Execution of plans and places: For timely implementation of plans, policies and
organizational goals, managers must disseminate those in the whole organization. In order
to disseminate the plans and policies to the internal and external parties, managers rely on
varying forms of communication including digital communication, technical
communication, business communication for accuracy.
 Increasing employee’s efficiency: Communication also helps in increasing the
efficiency of employees. With the help of “one-to-many” communication; organizational
objectives, plans, policies, rules, directives and other complex matters explained to the
employees can broaden their knowledge and thus help improve efficiency of employees.
 Achieving goals: Effective communication helps the employees at all levels to be
conscious and attentive. It ensures timely accomplishment of jobs and easy achievement of
common goals.
 Solving problems: Through various communication channels, business people can be
informed of various routine and non-time problems of the organization and accordingly
they take the necessary actions or steps to solve the problems. Problem solving abilities
does not always require critical thinking, by paying close attention to the target market and
being aware of market trends, businesses can access actionable feedback that can make a
company successful.
  Making decisions: Making timely decisions requires updated information. Through
effective business communication, managers can collect information from different
corners and can make the right decisions whilst aiming to achieve business goals.

Business Communication Functions

1. Communicating job functions to employees: Informing about assigned job roles is a crucial
key function of business communication. Team members having clarity on expected job tasks
and how they can contribute to achieving objectives of the organization by fulfilling their job
functions, they can contribute more to the completion of their assigned tasks. In the absence of
clarity of their roles, employees might not be able to complete their work as expected.
2. Providing adequate feedback: Providing timely and accurate feedback to employees and
customers is also an important function of business communication. The performance of
employees can be enhanced by providing regular feedback to them regarding their work
performance and competencies. This helps them to understand their current skill set, strengths
and also they can fill any gap in case of any shortage of required skills. Regular feedback from
customers and other stakeholders on products and services of business facilitates the
improvement in the production process and quality.
Different informative communication lies in an organization like job descriptions, assigned
targets to achieve, performance management, etc.

3. Convincing clients: Business communication is also often used to convince prospective

customers, clients and business partners in order to finish a business deal or transaction. This
type of communication can be in both oral and written form like a Sales Officer may convince a
client on phone call or in written form i.e. providing a mass advertisement in magazine or
newspaper for a new product launch or exciting offers on existing products. Both credibility and
emotions are an important element of this function of communication. Moreover, this type of
communication can be utilized in PR (public relations) activities and to build the organization’s
brand image.
4. Employee motivation for better decision-making: Communication in businesses is used in a
strategic form to enhance the decision-making capability of employees related to their daily
activities and for their long-term objectives related to the business. Like if performance-based
bonuses or incentives are communicated among employees effectively then it motivates
employees to contribute to the organization’s growth more efficiently and they can achieve their
work expectations in a timely manner.
5. Building social bonds: Communication has a critical role in supporting employees to build a
social circle or bond. Some organizations have an open culture or work environment in which
employees from all levels can communicate with each other and their superiors freely. Other
organizations prefer to follow a hierarchy or chain of command in communication.
When employees have a social bond with people whom they work with like their colleagues,
supervisors, clients, etc., then their job efficiency improves as the team spirit increases.

THE COMMUNICATION PROCESS/CYCLE

The transmission of sender’s ideas to the receiver and the receiver’s feedback or reaction to the
sender constitute the communication cycle. The process of communication begins when one
person (the sender) wants to transmit a fact, idea, opinion or other information to someone else
(the receiver).
This facts, idea or opinion has meaning to the sender. The next step is translating or converting
the message into a language which reflects the idea. That is the message must be encoded. The
encoding process is influenced by content of the message, the familiarity of sender and receiver
and other situation of factors.
After the message has been encoded, it is transmitted through the appropriate channel or
medium.Common channel in organization includes meetings, reports, memorandums, letters, e-
mail, fax and telephone calls. When the message is received, it is decoded, by the receiver and
gives feedback to the sender as the conformation about the particular message has been carefully
understand or not.

ELEMENTS OF COMMUNICATION
The process of communication involves the following elements:
1. Sender or transmitter: The person who desires to convey the message is known as sender.
Sender initiates the message and changes the behaviour of the receiver.
2. Message: It is a subject matter of any communication. It may involve any fact, idea, opinion
or information. It must exist in the mind of the sender if communication is to take place.
3. Encoding: The communicator of the information organises his idea into series of symbols
(words, signs, etc.) which, he feels will communicate to the intended receiver or receivers.
4. Communication channel: The sender has to select the channel for sending the
information. Communication channel is the media through which the message passes. It is
the link that connects the sender and the receiver.
5. Receiver: The person who receives the message is called receiver or receiver is the person
to whom the particular message is sent by the transmitter. The communication process is
incomplete without the existence of receiver of the message. It is a receiver who receives
and tries to understand the message.

6. Decoding: Decoding is the process of interpretation of an encoded message into the

understandable meaning. Decoding helps the receiver to drive meaning from the message.
7. Feedback: Communication is an exchange process. For the exchange to be complete the
information must go back to whom from where it started (or sender), so that he can know
the reaction of the receiver. The reaction or response of the receiver is known as feedback.
8. Brain drain: On whole process there is a possibility of misunderstandings at any level and
is called brain drain. It may arise on sender side if they do not choose the adequate medium
for delivery of message, by using default channel and it may also arise when receiver does
not properly decode the message. In other words, we can say that it is breakdown of cycle at
any level.

BARRIERS OF COMMUNICATION
1. Wrong Choice of Medium
Each communication must be transmitted through an appropriate medium. An unsuitable
medium
is one of the biggest barriers to communication.
Examples: When communication takes place in big organisation and departments or division are
far from each other. If any manager wants to communicate with others for confidential matter
than
they opt written communication as compared to other medium of communication. So, it is
required
that medium should be accurate and if wrong or unsuitable medium is selected than it leads to
the
biggest barrier to communication.
2. Physical Barriers
• Noise—In factory, oral communication is rendered difficult by the loud noise of machines.
• Electronic noise interferes in communication by telephone or loud speaker system.
• The word noise is also used to refer to all kind of physical interference like illegible hand
writing, bad photo-copies etc.
• Time and distance.
— Congestion in telephone and network facilities.
— People working in different shifts.
— Faulty seating arrangement in a hall.
3. Semantic Barriers
• Interpretation of words
A person interprets same word in a different meaning and this will cause barrier between
the communications. Murphy and Peck in their book ‘Effective Business Communication’
mentioned, the little word ‘run’ has
71 meanings as a verb
35 as noun
4 more as an adjective.

Bypassed instructions
Bypassing is said to have occurred if the sender and the receiver of the message attribute
different meanings to the same word or use different words for the same meaning.
“Take it to be our stockroom and burn it”
In official language burn it means to make more copies of the same document.
• Denotation & Connotations
Words have two types of meanings denotative and connotative.
Denotative—The literal meaning of a word is called its denotative meaning.
It must inform and names objects without indicating any positive or negative.
Connotative—It allows qualitative judgments and personal reactions.
Like—Honest, cheap, sincere etc.
Ex:—“He gave us cheap material”.
“At this shop, they sell things cheap”.
First one is favourable connotation and second is unfavourable.
To avoid this problem (By passed instruction and connotative meaning of words) the
followings can be used:
❖ Prefer words which are familiar to the receiver.
❖ If words are unfamiliar to the receiver, we should make meanings clear the very first time
we use it.
❖ We should choose words with positive rather than negative connotation.
4. Socio-Psychological Barriers
• Attitude and opinions
The information which agrees with opinion and attribute of the individual is favourable for
that particular individual.
• Emotions
It plays an important role in the act of communication.
If the sender is perplexed, worried, excited, afraid, nervous then he will not be able to
organize his message properly.
• Closed Mind
A person with a closed mind is very difficult to communicate with. We hold our opinion so
rigidly that we just refuse to listen.
• Status-consciousness
We are over-conscious of our lower or higher rank and do not express ourselves candidly.
• The source of information.
We react according to the trust we repose in the source from which the communication
originates.
• Faulty transmission
Most of part in the message is lost in transmission.
(In oral communication, something in the order of 30% of the information is lost in each
transmission.)

 Poor retention
Oral message in particular are lost due to poor human retention ability.

(Employees retain only about 50%)

Crisis Communication - Meaning, Need and its Process

Crisis refers to sequence of unwanted events at the workplace which lead to disturbances and
major unrest amongst the individuals. Crisis generally arises on a short notice and triggers a
feeling of threat and fear in the employees. In simpler words crisis leads to uncertainty and
causes major harm to the organization and its employees.

It is essential for the employees to sense the early signs of crisis and warn the employees against
the negative consequences of the same. Crisis not only affects the smooth functioning of the
organization but also pose a threat to its brand name.

What is Crisis Communication ?

Crisis Communication refers to a special wing which deals with the reputation of the individuals
as well as the organization. Crisis communication is an initiative which aims at protecting
the reputation of the organization and maintaining its public image. Various factors such as
criminal attacks, government investigations, media enquiry can tarnish the image of an
organization.

Crisis Communication specialists fight against several challenges which tend to harm the
reputation and image of the organization.

Need for Crisis Communication

Crisis can have a negative effect on brand image. Crisis Communication experts are employed to
save an organization’s reputation against various threats and unwanted challenges.

Brand identity is one of the most valuable assets of an organization. The main purpose of Crisis
Communication team is to protect the brand identity and maintain the organization’s firm
standing within the industry.

Crisis Communication specialists strive hard to overcome tough situations and help the
organization come out of difficult situations in the best possible and quickest way.

Crisis Communication Process

 Employees should not ignore any of the external parties and important clients Come
out, meet them and discuss the problem with them. There is nothing to be ashamed of.
If needed, seek their help. Media must not be ignored. Answer their questions. Avoiding
media makes situation all the more worse.
 Don’t criticize individuals. Show a feeling of care and concern for them. Share their
feelings and encourage them not to lose hope. Encourage them to deliver their level best.
Put yourself in their place. Respect them and avoid playing blame games.
 Effective communication must be encouraged at the workplace during emergency
situations. Employees should have an easy access to superior’s cabins to discuss critical
issues with them and reach to a mutually acceptable solution.
 Information must flow across all departments in its desired form. One should not rely
on mere guess works or assumptions during crisis. Make sure the information you have is
accurate.
 Crisis communication specialists must learn to take quick decisions. Remember one
needs to respond quickly and effectively during unstable situations. Think out of the box
and devise alternate plans for the smooth functioning of organization.
  Make sure information is kept confidential. Serious action must be taken against
employees sharing information and data with external parties. Such things are considered
highly unprofessional and unethical and spoil the reputation of the organization.
 The superiors must evaluate performance of employees on a regular basis. Ask for
feedbacks and reports to know what they are up to. Conduct surprise audits to track
performance of employees.

Organizations hire crisis communication specialists to overcome tough times as well as to

maintain their reputation and position in the market.

Communication in Organisation

A.Internal Communication

There is a large volume of communication within the organization. The flow of communication
within an organization forms a complicated pattern. The volume & the direction are usually
determined by the pattern of the hierarchy the level of authority & also by the requirements of
tasks.
1.Formal Channels-

Formal channels are those which carry the official messages in the organization. The efficiency
of an organization depends on the regular flow of messages. The flow of messages needs to be
organized into a well- ordered network to ensure that communication flows easily & reaches the
persons who need the information. If communication bypasses the channels someone who needs
the information may not get it. These can leads to gaps in information & it may fail to take the
required action.

 The information has to go through proper channels for eg Clerks  from one department are not
supposed to exchange official papers directly with clerks from another department, the papers
must move through the supervisors  or section heads

Formal communication is again subdivided into two types

 Vertical communication:-

This includes all the messages that move between subordinates & their supervisors. Messages
sent from superiors to subordinates are downward communication .messages sent
from subordinates to superiors is upward communication. Vertical communication is
classified into two types

a ) Downward Communication:-

Messages going from the higher authority levels to the lower level may be written, oral. Written
messages are notes, circulars, notices, emails. Oral messages may be face-to-face or by telecom
or telephone .announcement over the public address system

The common purpose of downward communication is as follows

1. Instruction about a specific task

2. Information about the practices& Procedures followed by an organization

3. The information which creates an understanding of the task in relation to other tasks

of the organization

4. Feedback about subordinates performance

5. Information about the ideology & the goals of the organization which would help

them to develop a sense of belonging to the organization

  Downward communication must be simple & carefully explained persons at the lower level of
the hierarchy may not have sufficient knowledge or understanding of the organization’s work
hence they need explanation. Long circulars, written in an official & legal style are not easy to
follow. Instruction sheets & employee manuals should be written in a simple style.
A great deal of information is lost as messages move downward. When a message is passed from
a senior to a subordinate down the line of command in a chain, It passes through many levels of
authority. There is a delay in the movement of the message also the message gets changed and
modified & there is a distortion of the message it& simplifies it for the understanding  & needs
of the understanding & needs of the person who is to receive it. If the chain of communication is
very long there may be much change &distortion in the message.

Messages which go from subordinates to supervisors & to higher levels of authority are

upward communication. These may be written or oral. Written messages are in the form
of reports, letters, presentations, notes & email messages. Oral messages may be face to face
or by intercom or telephone

The  common purposes of upward communication are

1.  Give information to the management

2.  Enable the management to learn & understand the concerns of the subordinates

3. To enable all the employees to contribute ideas & make suggestions

 Open & free upward communication also helps to maintain good staff relations. Employees
work better when managers listen to their ideas. Persons at any level in an organization may have
good ideas & suggestions for the improvement of the organization. These ideas are encouraged
when the organization has good upward communication channels.

 Horizontal or Lateral Channel

Messages that flow between persons of equal status or the same level of authority in the
organization is called horizontal or lateral communication. A large amount of communication
flows laterally in an organization.

Horizontal communication can be oral or written. Written communication may be in form of

letters, memoranda, notes, reports. copies of the document, oral communication may be in
the form of face-to-face talk, intercom, meetings, committee work or conferences

Horizontal communication is needed for several purposes in an organization. It includes

both information & persuasion & even for discussion, plans, solving problems, resolving
conflicts, negotiation &  coordination of work .it serves an important function of providing
emotional & social support to one another

B)Informal Channels /Grapevine Communication

In addition to the imposed organizational arrangement, members of groups that work together
construct their own communication networks. These informal networks have two basic purposes
 1. They compensate for inadequacies in the formal network by establishing new links that
bypass obstacles that come up in the formal structure. In many groups, there is someone
who can expedite the matter at hand often the expeditor is not the person holding official
responsibility for locating the right person.

2. They serve the needs of individuals involved these needs may or may not be the same as
the goals of the organization. These informal networks link persons with similar interests
& experiences & those who simply like one other

The informal network serves a valuable organizational function they protect the individual from
becoming isolated from professional colleagues by stimulating him/her to more creative thinking
& by supplying a psychological support group. Quite often an informal work relationship
completely obscures the formal organizational structure.

Following are types of informal communication

1 Single Strand Chain: The single strand chain involves the passing of information through a
line of persons to the recipient. In the For Eg, the person A tells B, who tells C, who tells D, and
so on, till the information has reached most of the persons involved or concerned.

2 Gossip Chain:
In the gossip chain, one person receives and tells the information to others. In the following
figure, A is at the center and passes the information to others staying on the rim of the wheel.

3. Probability Chain: The probability chain is a random process in which someone

transmits the information to others and then these to others in a similar way. This chain
 may also be called a random process.

4 .Cluster Chain: In the cluster chain, a person tells the information to the
selected persons who may in turn relay (pass) the information to other
selected persons. Most of the information communication follows this
chain.

B. External Communication

In the organization, there will be a continuous flow of communication.  There

will be continuous communication with the surrounding outside the
organization i.e with Customers, Suppliers, Bankers, etc. An organization
has office procedure & system for handling external communication, both
the incoming & the outgoing messages are recorded & filled. External
communication is divided into the following two types

1. Outward

Messages are sent out of organization customers, suppliers, banks,

insurance companies, government departments, the mass media &
general public they may be in the form of letters, faxes, telephone calls
telegrams, reports advertisement, press handouts speeches visit & so on.
The style format & tone of companies outgoing communication affect the
goodwill & public relations. Therefore most organizations have a policy about
the style & appearance of the companies messages that go out. Copies of
outgaining written documents are filed for reference.

2 .Inward

 An organization receives letters, telegrams, fax, telex messages, reports,

brochure circulars, journal magazines, telephonic calls, personal
visits these may be formed customers, suppliers, other organization
government departments & so on. These inward communication messages
are filed for a record for reference. A written note or summary of visits
meeting, telephonic talks may also be filled.