Items Description of Module

Subject Name Management

Paper Name Business Communication
Module Title Channels and Tools of Communication
Module Id Module no.-4
Pre- Requisites Basic knowledge of what communication is and its type
Objectives To understand the channel and tools of communication
Keywords Communication flow, Horizontal communication, Informal communication

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1. Learning Outcome:
After completing this module the students will be able to:
 Understand 1. Module 4: Channels and Tools of Communication the concepts related
tochannels 2. Learning Outcomes of communication.
 Learn about 3. Introduction the different typesof
4. Meaning of CommunicationChannel communication
channels. 5. Types of Communication Channel
 Explain the 6. Communication Tools various tools of
effective 7. Types of communication Tools communication.
8. Summary

2. Introduction

A business organization is a little society. Communication is the bond holding that society
together, enabling it to function. Through the process of communication, the members of the
business organization exchange messages using a common system of symbols, which results at
least to some degree, in sharing the meaning of the message among them. Thus, communication
has two important functions in a business organization; first one is to enable people to exchange
necessary information, and second to some extent setting members of organization apart from
non- members.

Most organizations depend heavily on communication to accomplish their objectives. The

approach to communication varies from one organization to another depending upon their
different requirements and characteristics. In a small business with only five or six employees,
much information can be exchanged casually and directly. However in a large organization with
hundreds and thousands of employees scattered around the world, transmitting the right
information to right people at right time is a real challenge. It requires a proper channel of
communication.

3. Meaning of Communication Channels

Different levels and stages through which communication passes in an organization is called
communication channel. This channel is formed as per the rules of the organization. The golden
formula of communication can be expressed by the clause “Through proper channel”.

So we can say communication channels means the path through which the information move
within the organization.The communication can move upward, downwards and horizontal in the
organization. Such movement of information is called communication channel.

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In organization, a manager becomes a source of message or information. The message may be
decisions or instructions which can move upward, downwards and horizontal in the
communication process. For example, the expectations of top level manager will move
downward to lower level manager. This downward movement of information can be through
email, interdepartmental memos and face to face conversation.

4. Types of Communication Channels

There arevarious types of communication channels available in the organization for

communicating the information.In the large organization, message cannot be communicated only
through face to face communication. One of the biggest challenge for the manager to determine
which channel of communication should be used to communicate the information effectively in
the organization. The communication channel can be explained in the following way:-

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 Channels of
business
communication

Formal Informal
communication communication

Horizontal
Downward Upward communication
communication communication

4.1. Formal Communication network

Formal communication is that communication which flows along a prescribed network. The
member of an organization desirous of communicating with one another follow the formal
communication network. Formal communication flows through a predetermined hierarchical
network of positions and status. For example- a shop floor worker cannot speak directly to
managing director. He will speak to his supervisor, who in turn will talk to the manager and
manager will communicate to managing director. The level in hierarchical system increase or
decrease on the basis of nature and size of organization. A large organization will have more
number of hierarchical levels while a small organization will have less number of hierarchical
levels.

In every organization there is formal communication channel based on clearly defined rights,
duties and responsibilities.

The following graphics show a formal communication channel with a pre determined path. That
is the communication will flow from President to Managing Director , from MD to Manager,
from Manager to Supervisor, from Supervisor to Worker. It can also flow the other way round
through the whole channel fro worker to President but no level will be by passed in normal
circumstances.

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 President

Managing Director

Manager

Supervisor

worker

In formal communication the communication can flow in the following three ways:

4.1.1. Downward communication

In Downward communication the flow of information is from top to bottom. For example- when
a manager transmits information to a subordinate, communication is flowing downward. The
message might take the form of face to face conversation, office order, verbal instructions or a
formal interview between supervisor and individual employee, or it might be discussed with the
group through a meeting, workshop, or video type. On other occasions, the message might be a
written memo, a training manual, newsletter or bulletin board.

4.1.2. Upward communication

Upward communication is a network of communication where the flow of information is from

bottom to top. In this communication network, information is sought by the top management
from lower levels of management. From the organization‟s standpoint, upward communication
is just as vital as downward communication. To solve problems and make rational decisions,
management must learn what is going on in the organization. Because they cannot be
everywhere at once, executives depend on lower level employees to furnish them with an
accurate and timely report. Upward communication can take the form of suggestions to senior
people, grievances or complaints, oral or written requests, various reports etc.

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4.1.3. Horizontal Communication

In addition to transmitting messages up and down in the organization, the formal communication
network also carries messages horizontally from one department to another. For example-the
R&D manager may write a request to marketing manager for the feedback received on the new
product launched in the market recently orthe marketing director might write a memo to the
production director, outlining sales forecasts for the coming period. If the structures and /or
functions of the department are such that there is lot of interdependence between the departments
then the horizontal communication will be more in the organization. But if each department
operates independently, official horizontal communication is minimal.

In the picture we can see the purple lines are depicting downward communication- from
president to Marketing manager, from Marketing manager to advertising supervisor, from
Supervisor to Note takers.

The yellow lines are depicting upward communication- from sales staff to sales supervisor, from
supervisor to operations manager.

The red lines are depicting horizontal communications- from Accounting manager to Marketing
manager, from Note tekers Supervisor to Copier Supervisor, from Sales staff to Copiers.

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4.2. Informal Communication Channel

Along with the formal communication, there is one another communication channel which is
used in organization for communication purpose, which is informal communication network.
Informal communication does not follow a predetermined set pattern but is can constantly
change and become highly complex moving in all possible directions simultaneously, linking all
the members of the organization. That is why it is also called as Grapevine. As people go about
their work they have casual conversations with their friends in the office. They joke and discuss
many things: their houses, their families, electricity problem, their kids ,world cup cricket
tournament, movies, other people in organization,etc. Although many of these conversations deal
with personal matter, business is often discussed as well. In fact, most of the information that
travels along the informal communication network as it is not a planned or deliberately created
channel of communication. Informal communication does not follow a formal organizational
chart. It is completely based on the informal relations of the sender and the receiver of the
communication.

5. Communication Tools

Communication tools mean the medium or device through which the information is transmitted
to the receiver in the organization. The proper selection of the communication tool is most

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important for effective business communication because if the wrong tool is selected then the
information will lose its importance. The selection of tool depends upon the quality and quantity
of audience.Quality of audience means the knowledge and intellectual power of receiver/s and
quantity means the number of receiver/s of communication. There are number of communication
tools available in the organization which depend upon type of communication whether it is oral
or written.

The explanations of these are as follow:

6. Types of Communication Tools

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 Broadcast Media
Face to Face oral presentation 3.Voice Mes
Oral Communication 5.Video Conferencing

Communication Tools
Memo
Letter 3.Electronic Tools 4.E-mail
Fax
Written Report
Communica
tion Miscellaneous

6.1. Oral Communication

Oral communication is that form of communication in which message is transmitted in spoken

form. The term „oral‟ means anything pertaining to the mouth. There are two components of oral
communication which are words and the manner in which words are pronounced. In oral
communication, the sender and the receiver exchange their ideas and thoughts through
presentation either in face to face or through some mechanical and electronic device. The oral
communication may have two levels. The first and highest level of oral communication is
speaking face to face. This form of communication rates highest because besides immediately
exchange words, we can see all signs of body language. The second level of oral communication
includes voice mail and telephoning. However, these are not always as completely effective as
face to face communication because of absence to body language. But they do provide vocal hint
and opportunity of immediate feedback. The sender can modify the message immediately if the
receiver does not interpret the message properly. In spite of all these, the oral communication is
effective only when the receivers have the listening skill. If the receiver does not have listening
skill then its does not matter how properly the message is encoded and how effectively the
message is delivered to the receiver. The oral communication become ineffective if the receiver
does not have listening skill.Majority of all the communication problems in organization arise
due to poor listening.

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Following tools are used for oral communication:-

6.1.1. Broadcast Media

Broadcast communication tools involve power point, radio, Television and loud speakers. Such
kind of communication tools should be used when the message is communicated to large number
of audience. For example- if the board of director of company decides to extend the business on
international level, the CEO of the company may do announcement for the same on international
channel of media. For a message to be delivered effectively to a large number of people, it
should be delivered using audio visual broadcast media.

6.1.2. Face-to-Face Oral Presentation

In business organization, Face-to-face oral presentation is one of the important tools of business
communication. The personality, body language, speaking skill and facial expressions play a
crucial role in exchange of business communication effectively. If the information is complex
and emotionally charged, face to face oral presentation is the best tool because ambiguity in
effective exchange of information between the speaker and receiver can be clarifies easily. The
sender can evaluate the communication while delivering the message by immediate feedback and
modify it accordingly as per the understanding of receiver to make it more effective. For more
effectiveness of the message writing boards or power point presentations using computer and
screen can be utilized.

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6.1.3. Mobile Phone

The mobile phone can be used as a communication tool for delivering private and/or urgent
information in the organization. Mobile phones can also be used for communicating with more
than one person at the same time though teleconferencing. Communication of information
through the telephone or mobile is called telephonic communication. With mobile that fit in palm
of the hand, business people can now be reached for important calls as well as to conduct
business from otherwise inaccessible places. It enables business people to make more productive
use of their time. The mobile is used as a communication tool when the information is
communicated to an individual or small group. It is the most effective tool of business
communication because of interactive exchange and helps the receiver in interpreting the
message through the sender tone while delivering the message. Sometimes mobile
communication may be usedin place of face to face communication to save on the time and effort
that would take in handling a face-to-face meeting.

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6.1.4 Voice Message System

It is an electronic system to leave short messages for someone who is not immediately available.
It is an ingenious combination of modern telephone equipment and computerized call
management system. In this technique, a caller can leave messages and select from other services
by listening and responding via touch phone. Sometimes when the person you are calling is not
available, you will be able to leave a voice message in an electronic voice mailbox. Not only this
saves you the time involved in calling back the person you are trying to reach, but it also allows
you to leave more detailed message than you might leave with a secretary. However, you need to
be prepared for this to be sure that your message is both complete and concise.

6.1.5. Video Conferencing

A technology that combines oral and video communication effectively is video conferencing.
Video conferencing is the best technique for meetings between groups who benefit by verbal and
visual interaction. This technique uses computer controlled digital video cameras which provide
real sound and video images, so meetings can be held remotely without spending the time and
expense of travel. In this technique not only messages are transmitted, but two people can engage
themselves in live conversation also. As a result, one can see the gesticulation, facial expression,
emotions of the other.

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6.2. Written Communication

In modern organization, written communication is considered as more crucial form of business

communication. Written communication is that communication in which information is
exchanged in the written and printed form. It is most formal form of all type of business
communication. The scope of written communication has widened with the advancement of
technology. It covers electronic means like Email and Fax. The written form of business
communication facilitates a business organization to keep a record of communication.

As the oral communication require the listening skill, written communication require effective
reading skill for achieving the goal of business communication. In today modern world, business
organization have become more technologically advanced which require effective reading skill
for making the written communication effective. Such communication should be used when the
information does not require direct interaction to the receiver. Written communication is more
difficult than oral communication because of the absence of immediate feedback and facial
expression. The sender cannot modify the message if it is not understood by receiver. So that, in
written communication, the information should be drafted as per the understanding level of the
receiver. In other words, such language and words should be used which can be easily
understood by receiver. The following tools may be used to deliver the written communication:-

6.2.1.Memo

Memois primarily a written message exchanged by employees in conduct of their work. Thus,
Memos are those business documents that areaddress other people in the same organization.
Memo is a short form of Memorandum. The term “memorandum” in English is derived from
term “Memorale” of Latin language which means“to tell”. Memo is a small note which is sent by
a superior officer or manager to his subordinate or staff to convey information of some subject.

6.2.2. Letters

Lettersare those business documents which are addressed to people outside a business
organization.Italso can be sent by computer via commercial electronic mail networks to the
target audience which is called an email. The appearance of a letter plays a significant role in
communicating the message. Attractive presentation of the message receives more attention from
receiver. The appearance of latter is influenced by quality of paper used, printing of latter head,
typing etc.

6.2.3. Report

Report can be described as a statement prepared to present facts relating to planning,

coordinating, performance and general state of work in an organization. The term report is used
in various ways. Some define reports to include almost any presentation of information; others
consider reports to be comprisingonly the most formal presentation. Basically, it is an orderly
and objective transmission of factual information for business purpose. It is thus a summary of

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managerial performance.Examples of common business reports include policies and procedures,
status reports, minutes of meetings,financial reports, personnel evaluations, press releases etc.

6.2.4. Electronic Tools

Electronic communication tools include email, social media platforms, Internet and intranet.
Such tools can be used for personal communication as well as group communication. When the
communication is done through electronic tools, the message must be crafted carefully with
clarity to make it more effective. It is one of the most important tools of business communication
because every kind of important information in business organization is delivering through email
and theinternet.

6.2.5 E-mail

E-mail refers to message sent over computer and includes everything from casual notes to friends
to multimedia presentations sent across the world. Through email message can be sent to a
person without making direct contact or knowing where that person is located. Subscribers to
electronic mail services are called users, and as a user, that person can access messages on
theirsystem from their home, office, hotel etc.

The picture symbolizes how the letter in the form of the email is being sent from one computer to
another which may be received across the world in different locations.

6.2.6 Fax

Fax is a simple electronic communication technology to send scanned messages to distances near
and far.. It uses telephone lines to send a copy of the document. It scans a printed page, convert it
to signal and transmits the signal over a telephone line to a receiving fax machineFaxing is much

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like photocopying or printing, but the copy is delivered elsewhere by knowing the telephone
number of the receiving fax in order to send the message and someone on the receiving end
needs to check the fax and deliver the message. It is a quick and less expensive system whereby
a photocopy of the document can be sent to the desired person quickly.

The figure explains how the fax machine works. The first machine scans the documents and
transmits its contents through telephone line to the second machine which may be kept in the
same building or to a far away location. The exact copy of the document, the contents of which
were transmitted comes out of the second fax machine.

6.2.7.Miscellaneous

Other examples of written communication include contracts, salesliterature, newsletters, and

bulletin - board notices etc

7. Summary

Communication is the most important function of every organization because every work is
initiated only through communication. Without communication no work can be completed in
organizationRight information must be sent to right person so that work can be done with in
time which is possible only through effective communication. For this right channel of

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communication must be selected for communicating.Channels of communication can be formal
or informal.Formal communication can be upward, downward or horizontal.Informal
communication generally take the form of grapevine.Tools for both oral and written
communication are different and varied . In organizations, communication will be effective only
when information moves through proper channel and appropriate tool is selected for transmitting
the information.

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