1.

1 CONCEPT AND NATURE OF COMMUNICATION

1.1.1 Meaning of Communication
According to Hudson, "Communication in its simplest form is conveying of
informationfrom one person to another." In the words of Alen, "Communicationis
the sum
of all the thingS, One person does when he wants to create understanding in the
mind of another. It is a
bridge of meaning. It involves a systematic and continuOus
process of telling, lístening and understanding. Thus, communication may be
defined as an interchange of thought or information to bring about mutual
understanding and confidence. It is the exchange of facts, ideas and viewpoints
which brings about commonness of interest, purpose and efforts. Common
of communication include speaking,
forms
writing, signalling and gesturing.
DEFINITIONS OF COMMUNICATION
"Simply stated, communication is a two-way process of exchanging ideas or
information".

-Murphy etal
"Communication is the process of passing information and understanding from
one person to another. It is the process of imparting ideas and making oneself
understood by others."
Theo Haimann
Communication is the sum of all things one person does when he wants to
create understanding in the mind of another. It is a bridge of meaning. It involves a
systematic and continuous process of telling, listening and understanding"
-Louis A. Allen

1.1.2 Features of Communication

The characteristics of communication follows are as
JTwo-way Process: Communication is possible only when there ayé at
least two persons, one sender and the other receiver. This
means that one pérson
alone cannot communicate.
Antormation Sharing and Understanding: Communication involves both
transfer of information as well as understanding between two or more
This means that persons.
communication does not take place simply because information
has been transferred or
conveyed to the person concerned. What is equally
important is that the receiver of communication should understand the
information transferred to him as it was intended to be.
3. Verbal and Non-Verbal: Communication is not restricted to
transfer of
information and understanding through words_ alone. A manager can
communicate through symbols, gestures and actions which are non-verbal in
nature.
4. Circular Flow: The flow of communication is
circular, that is, the process
of communication starts when the sender
transmits a message
to the receiver
and1s completed when the receiver sends the feedback to the sender as shown in
 of
Oriented: Communication is goal oriented. The end result
560al sender and the receiver
munication is understanding between the
o fi n f o r m a t i o n .

is
persons
Process: Exchange of ideas and opinions among
6. Continuous Communication
business and non-business organisations!
ongoing process in human body.
organisation as flow of blood in the
an d
in the
as important
is as
Communication is a pervasive.aetiuity.
It takes place
Pervasive Activity: tinance,
in all functionalareas (production,
at all levels
(top, and
middle, low) business
at.
marketing, perssonnel, etc.) of a enterprise.
12 COMMUNICATION PROCESSICYCLE
a
a sender of message and
Communication is process which involves
a

Communication is complete only when the receiver

is able to interpret
oceiver. Communication is
rece
responds to it.
sender and
he message desired by theIt includes sending of a message and the response
as
process.
regardedas a two-way with the point of view
of the
The receiver may or may not agree receiver
to that
message. be complete, the
the message. However, for communication to
sender of as intended by
the sender.
understand the message in the same sense
must when one person
in 1.1, the process of communication begins
As shown Fig. information to someone
or other
wants to transmit a fact, idea, opinion
(the sender) information has meaning to
the sender.
receiver). Fhis fact, idea or other is to
else (the concrete or complex and
abstract. The next step
and
Whether it be simple the idea. That is,
convert the message into a language which reflects
translate or content of
is influenced by
must be encoded. The encoding process situational factors.
the message
the familiarity of sender and receiver and other
the message,
NOISE

Encoding of Channels of Receiver

Sender Communication
Message

Decoding of
NOISE Message
Feedback

Fig.1.1. Communication Process or Cycle.

it transmitted through an appropriate
After the message has been encoded, is
include meetings, memos,
channel or medium. Common channels in organisation is
calls. After the message is received, it
letters, reports, e-mail and telephone
the message into terms meaningful to
decoded, that is, the receiver translates
him.
1.2.1 Elements of Communication
elements:
The process of communication involves the following
1. Sender or Communicator: The person who feels the need to express

certain ideas or thoughts is known as communicator

or sender. By initiating the
 message, the communicator attempts to achieve understanding and change in
the behaviour of the receiver.
of Message: Message is the subject-matter of any
4 Encoding
communication. It may involve any fact, idea or information. It must exist in the

mind of the communicator if communication is to take place.

is the which the sender translates
his thoughts/ideas into
Encoding process by
the sender and the
"PPTOprate message, using the medium that is shared between
receiver. Encoding is guided by the sender's own communication skills as also
of comprehension.
s estimate of the receivers communication skills
Own

Encoding is, in a way, a method of providing a structured nmessage using shared

COdes of communication (medium) that may be verbal or non-verbal.

The sender of information organises his idea or thought into a series of

symbols (words, signs, etc.) which he feels will communicate to the intended
receiver or receivers. Communication may also take place through physical
gestures.
3. Communication Channel: The communicator has to choose the channel
for
sending the information.Communication channel isthemedia through which
the message passesIt is the link that connects the sender and the receive) Air,
sight and sound are the important communication channelsThe receiver must
considered while selecting a channel. Some people respond better to formal
letters or communications which are officially recognised by the organisation
and are known as formal channels.
4. Receiver: The person who receives the messageis called receiver. The
communication process is incomplete without the existence of the receiver of the
message. It is the receiver who receives and tries to understand the message.
5. Decoding: Once the message reaches the receiver, it can serve its
purpose
only if, it is understood. Decoding is the process of
and sense of the message so that it
comprehending the meaning
registers in the mind of the receiver as an
understandable idea. Decoding depends on the skills of the receiver as also on
the quality of encoding of the sender.
6. Feedback: A
communication often leads to other
message sent is followed by a reaction or
communications. A
response from the receiver, which
requires another message to be communicated by the sender, and so on. The
reaction or
response of the receiver is known as
communication then becomes a circular
feedback. The process of
process as shown in Fig. 1.1.
Feedback is the receiver's to the message sent
response by the sender. Feedback
confirms the receipt of
message by the receiver. The feedback
may be as simple as
a
phone call from the prospective client
proposal or as complex as a written brief on expressing interest in the business
an
attorney to a judge. An employee can
a
complicated point of law sent from
a verbal or
written response respond to the manager's directions by
the message. Feedback could
indicating that he or she does or does not
also be non-verbal. understand
1.2.2 Communication as a Two-way Process
Two-way communication takes place when the receiver provides feedback
to the sender. For instance, giving an instruction to a subordinate and receiving
its acceptance, is an example of two-way communication. On the other hand, in
case of one-way communication, feedback is totally absent. Here, the sender
communicates without expecting or getting feedback from the receiver. A policy
statement from the chiet executive is an example of one-way communication.
communication.
One-way communication takes less time than two-way
Autocratic leaders use one-way communication to get work from the subordinates.
communication is to one-way communication as
Two-way superior
discussed below:
communication.
(1 Two-way communication is more effective than one-way
The feedback allows the sender to refine his communication so that it
becomes more precise and accurate.
of communication
(i) Receiver's self-confidence is higher in case two-way
clarifications from the sender.
as he can ask questions and seek
the sender may feel
However, in case of two-way communication,
attention to sender's mistakes and
embarrassed when the receiver draws his
ambiguities.
1.3 ORGANISATIONAL COMMUNICATION

divided into two types:

Organisational communication may be
() Internal, and (i?) External.
1.3.1 Internal Communication
each other, it is
When people within the organisation communicate with
team and realise the common
internal communication. They do so to, work as a
It could be official or unofficial. It could be individual to
individual,
goals. to department etc.
individual to group, group to individuals, department
Much of internal communication
informal. may be in the oral form and the tone may be

reople also communicate within the organisation at a personal level.

is called
informal communication. A Ihis
present good example is that of
grapevlne,
the
in some
measure encourages
everywhere. If the atmosphere is secretive, it encourages
spread of rumors and half-truths. Intelligent managers use this human
wedkness to their advantage by sharing favourable information witn tne
employees.
Modes of internal communication include face-to-face and written
COmmunication. Some of the common modes of written communication are Memos,
eports, Ofice Orders, Circulars, Staff Newsletters, E-mails, Fax, Notices,
Agenda, Notes on Agenda, Minutes of Meetings, Manuals, etc. Internet with
muitimedia, video conferencing and presentations either electronic or using visual
alds are the likely modes of audio-visual communication that could be used in
internal communication.
Various modes of non-verbal communication may also be used in internal
communication.
1.3.2 External Communication
When people in the organisation, communicate with anyone outside the
organisation, it is called external communication. The outsiders may be clients
omers, dealers or distributors, media, government, general public,
regulatory bodies, authorities, etc. Letters and circulars, price-lists, manuals,
purchase orders, customised reports, brochures and service calls, tender
documents andadvertisements, cutomer's feedback materíal-all are classified
as external communication. Modern business houses spend considerable time,
money and efort on improving their public image since they realise that they are
dependent on external support. External communication has been mainly formal
and largely documented, but there is an increasing trend to make it informal.
Some of the modes of formal communication that may be used are Circulars,
Graphs/Charts, E-mail, Fax, Forms/Questionnaire Letters, Advertisements,
Customer Newsletters, Press Releases, Invitations, Leaflets/ Brochures/
Handbills, Manuals, Telegrams, etc.
1.4 OBJECTIVES OF cOMMUNICATION
People need to communicate as they move from situation to situation,
in family, organisation and other social groups for
and for
getting their work done
relationships. The main objectives of communication are as
discussed
below:
1. Exchange of Information
The most important
purpose of communication is the exchange of
information with others. For example, in a business
uses communication to
organisation, the management
keep the employees informed about the goals, policies
and rules. When the
employees are well informed about various aspects of the
iob,they would perform better. Meetings, telephones, notices,
and bulletins are used to convey necessary information employee handbook
to the employees.
similarly, an organisation communicates with outsiders
(investors, customers,
suppliers, government, public etc.) to provide them information about products,
nolicies, contribution to social responsibilities, etc.
po

2.1s5ueof Orders and Instructions

Another purpose of communication is to issue orders and instructions to
the employees. An order is a direction to do something and an instruction
indicates how to carry out the order. Orders and instructions are based on the
superior'sauthority and the subordinates are expected to obey them, An order or
instruction is enforceable because the superior has got power to use sanctions
against a subordinate who refuses to carry out an order or do so in an appropriate
agar
manner.

In order to be etfective, an order should possess the following features :

()The order should be stated in unambiguous and clear-cut words to be
easily understood by the subordinate.
(i) The order could be accomplished within the authority given to the
subordinate. The order should be reasonable and the subordinate should
have the capability to execute it.
(ii) The order should be in written form, particularly if it is of a non-routine
nature. Generally, the orders and instructions are issued to the
subordinates orally. But, sometimes, it becomes essential to issue written
orders. Whether an order should be oral or written will depend upon
factors tike the relationship between them, the need for avoid ing
overlapping instructions and the need for issuing a non-routine order in
clear-cut terms.
3. Education
Business firms frequently use effective methods of communications to
educate workers and consumers. They train and direct their employees for greater
productivity and educate consumers about the quality and uses of products.
Good communication helps in moulding employees' behaviour favourably.t
will lead to better industrial relations and go a long way towards achieving
greater acceptance of new ideas. It will also reduce worker's resistance to change.
Communication is also used for the purpose of education of consumers a
general public. Consumers are made aware of the availability of products, their
price range, quality, uses, etc. by inserting advertisements in newspapers,
magazines, etc. Even the government also educates the general public about its
programmes and achievements.
4. Advice and Counselling
The managers often give advice to their colleagues and subordinates
on both personal and officiaf matters. Advice involves
personal opinion
of the advisor and so may be subjective (biased) whereas information in
factual and objective (i.e., without any bias). The purpose of offering advice is to
 face-to-tace
nuence the behaviour of the other party. It is generally,
offered in a
contact.
also provide them
advice to subordinates, the managers
des giving are under
stress. For
example, an
counselling when the latters are in difficulty or his job properly.
not able to do
is having some family problems and is the
mployee can help a lot in modirying
counselling
n such a situation, psychologicalstress and in overcoming his problems.
V1ur of the under
employee
5. Persuasion favourable response.
others for a
nication is aimed at persuading the behaviour and
o change or influence
efforts to
rersuasion means making communication
in a work-space
is persuasive.
A deal of the organisation are
auae others. great the people in
of
finance,
organisational goals.
or
from marketing
ake any example one another
in the context of
when goods
aiways engaged in persuading
to be convinced of the need
for greater efforts,
from an
When employees have competition, when dues have to be
collected

have to be sold despite efforts. Skill and

these situations call for persuasive
all to have the desired
unwilling customer
-

and written, are essential

spoken
ability to use words, both
influence on others.
6. Suggestions communication.
subtle form of
to be a very mild or
Suggestion supposed
is Downward suggestion enjoys
downward and upward.
both like advice or order.
-

It may m o v e ways
over other m e a n s
of c o m m u n i c a t i o n
one great advantage In either case,
from an expert; order c o m e s from a higher authority.
Advice c o m e s
conscious of his inferiority
and may resent it. Accepting
the recipient is slightly is usually welcome.
his discretion, so a suggestion
a suggestion is at
are also
management (i.e., upward)
Suggestions from employees to
Under an organised suggestion system,
encouraged in modern organisations. office or the factory.
some convenient place in the
suggestion boxes are placed at in to these boxes. Sometimes
Workers are encouraged to drop their suggestions
thesesuggestions havetobewritten on specially prepared
cards. If an employee
allowed to do that. The suggestion boxes
does not want to reveal his name, he is and the
the suggestions received are scrutinised
are opened at regular intervals,
are awarded prizes.
employees offering the best suggestions
7. Motivation
Motivation is the process of inducing people to work hard for achieving
effective means of motivation of
organisational goals. Communication is a very
their talents and achievements and sharing ideas with
people by recognising
them. The contents, tone and timing of communication exercise a significance
influence on motivation. Employees need to be kept well informed about the
organisation and its progress. Face-to-face talks and company magazines are
used to create a sense of mutual understanding. Suggestion schemes, joint
consultation, praise for outstanding efforts, etc. also help to improve motivation.
8. Raising Morale
Morale reflects the attitudes of employees towards organisational policies
and management. Good communication is intended to mould the attitudes of
 an atmosphere
of openness dt
employees and raise their morale by creating of
the
trust. Communication about the policies and programmes
mutual Notices, bulletins and
organisation helps to improve the morale of employees.
fears among employees.
are used to prevent rumours and remove
meetings usea
and grievances is also
Upward communication in the form ofcommunication
suggestions
helps to release pent-up
to raise
morale. In fact, free flow of
the staff.
emotions and provide a feeling of reassurance to
9. Warning
unfavourable
about the unpleasant and
Warning involves informing
course of action
of action is not changed. Such
consequences, if certain
course
with
material and machinery, misbehaving
may be negligence, mishandling the rules
is to ask the employee to abide by
others, etc. The purpose of warning can be general
with dedication and discipline. Warning
and regulations and work person or
General warnings are not directed to any particular
or particular. 'No admission without
Warnings like "No smoking', 'Outsiders are not allowed',
group. are issued against
are general warnings. Particular warnings
permission regulations.
to make them follow the rules and
particular persons
COMMUNICATION
1.5 NEED FOR
in modern
of communication
The reasons for the growing importance
discussed below
organisations are in size and
Modern organisations have grown
(i) Giant Organisations: have complicated
to achieve their objectives. They
a large number of people
employ coordination can be
several layers of management. Effective
structures with communication.
of an effective system of
achieved only with the help
Business Environment: Many organisations operate at the
(ii) Global
transnational level. This requires dealing people of different languages
with
communication is to be given greater
attention for success
and cultures. Naturally,
in international business.
characterised by rapid
Advancement: The modern era is
(iii) Technological
A big undertakingcannot afford to ignore the latest
changes in technology. of new technology
survive in the long-run. But application
technology, if it is to
of the resistance offered
by Only
the work-force. an
is not an easy task because
can help the management
to overcome
effective system of communication
can keep
resistance to change on part of the work-force. Management
the
latest developments and can educate them
workforce fully informed ábout the
the uses of new developments.
need adequate and timely
(iv) Timely Information: Modern organisations
information for better decision-making. To keep pace with the changing
environment effective management of information is important.

(v) Better Human Relations: The nature of employment relationship has

The
changed from master-servant relationship to partnership relationship.
No management can
employees are the shares of the prosperity of the enterprise.
understand the need, perceptions and feelings
manage effectively, if it does not
 have better understanding
The desire of the modern managers to c o m m u n i c a t i o n in an
of the employees. of
significance
increased the
of the human behaviour has

enterprise.
(D1) Better Public Relations: An industrial enterprise works in the society
<ers,
and so it has got certain social obligations towards the customers,
has to keep
worker
these

has to keep
enterprise
8Overnment, suppliers and thegeneral public. Every pertormance
of its
taken by it
in the
informed about the efforts
Stakenolders
obligations towards them.
MANAGEMENT
COMMUNICATION
IN
1.6 ROLEAND IMPORTANCE OF roles
three major
managers perform
ACCOrding to Henry Mintzberg, nelps managers
decisional. Communication roles, managers
informational and
nerpersonal, In interpersonal
each of these roles effectively. informational roles they
Perrorming subordinates; in
and
the organisation and
interact with theirinformation
superior, peer
to people
inside and outside
communicatejthem to
ecelve and give decisions and
in the decisional roles, they take important
organisational members for
their effective implementation.
that most of the managers spend
about
three
studies have revealed communication,
Several others. Through
in communicating with
fourths of their timethe about what they have to do and how
the work
the manger informs employees can be better
of internal communication
has to be done. The importance
mentioned below:
understood from the points
number of
facilitates planning in a
1. Facilitates Planning: Communication
for getting the
of executives in planning is a pre-condition
ways. Participation
task done. This can be secured only through interaction
and communication.
Such
Further, to be realistic, planning should be based on accurate information.
information can be available only when there is systematic communication in

enterprise. The entire plan will fail if the information regarding latest market
developments is not available to the planners.
2. Basis for Decision-making: Communication helps management in
arriving at vital decisions. If the right type of information is not available at the
proper time due to lack of communication, it may not be possible for management
to pros and cons before a decision. Moveover, it is
consider all the taking
communication that management comes closer to the subordinates and is ableto
through
identify real problems and take appropriate decisions. Thus, communication is
essential for decision-making.
3. Achieves Effective Co-ordination: Communication helps in
synchronizing activities of differernt individuals and groups to bring about
unity
of action. Liaison men who are employed to co-ordinate work of different
individuals in the organisation need to evolve
communication between different
part of the organisation. Group meetings means of coordination must
as a
necessarily involve exchange of ideas and knowledge and transfer of information
and understanding
4. Facilitates Better Administration:
Communication is
performance of all managerial functions. Planning which is oneimportant
of the
in the
primary
 functions of management requires detailed communication among the
managerial and other personnel. Moveover, eflective communication is important
in executing the plans and then controlling the activities with the help of feedback
information. Information about subordinate's performance is necessary to
determine whether the planned objectives are being realised or not.
Communication is an imporlant aid in directing and motivating the employees
in the organisation. Thus, communication is an indispensable part of the
management process.
5. Creation of Mutual Trust and Confidence: An effective communication
system helps the manager to convey his ideas, views, decisions, suggestions and
feelings to the employees. On the other hand, the employees also get opportunities
to express their feelings and communicate their ideas and reactions. Thus,
effective communication builds an atmosphere of mutual trust and confidence
in the enterprise.
of Employees: Motivation of
Motivation
6. employees largely depend upon
the effectiveness of communication. Sharing of information with employees helps
management to secure their willing cooperation. Discussion on matters of
common concerns between managers and employees is a source of satisfaction
for the employees as it signifies recognition of their importance. Information
sharing and consultation act as strong motivating factors.

Proper Basis for Better

Decision
Planning Coordination
Making

IMPORTANCE Better
Binding OF Administration
Force
COMMUNICATION Effective
Control

Building Motivation Mutual Trust|

Morale and
Confidence

Fig.1.2. Importanceof Communication.

7. Building Employee Morale: Communication in industries is the basis
for morale building. Under an effective system of communication, it is
quiet
convenient for the employees to bring their grievances to the notice of the
management and get a proper adjustment. It creates mutual trust and faith, and
ultimately ensures job satisfaction amongst the employees, creates confidence in
the ability of managers and promotes their loyalty towards the enterprise. It
satisfies theirpersonal and social needs and stimulates their job interest and
enthusiasm. Grievances suppressed for lack of communication
may lead to
serious conflicts.
 the
communication nauces
Commitment: Effective
8.
Binding Force o r spirit of cooperatl1on and
develop a binds them
resources in the organisation to communication
tdn wav.effective
POuces the will to dowork.In this
among
em
commitment aspect of
together and creates the spirit of is a n important
Controlling
Control: p e r f o r m a n c e of
a c i l i t a t e s Effective and e v a l u a t e the
measure
It helps the m a n a g e r s to t h e i r perrormance.
5g: them
feedback o n a b o u t the
subordinates, and provide information
transmitting
helps in control by information
received by
Omunication If the
tes the manager.
up to the
Perrormance of the subordina
to not
subordinates is
performance of the
reveals that the
anager immediately.
mark, he can take corrective action role in an organisation
same
comnmunication system plays the of organisation
Sum
up, the m e m b e r s
hunman body. It keeps
n e r v o u s system in the r e l e v a n t to their task and
4s the internal and
external happenings
c o - o r d i n a t e d efforts of
Ormed about the organisation depends
upon
Since the s u c c e s s of goal, effective
erest. different levels to
achieve a common

people working at
to think together and to act
to enable them
communication becomes a must

together.