BUSINESS

COMMUNICATION
 COMMUNICATION
■Two-way process of reaching mutual understanding,
in which participants not only exchange (encode-
decode) information, news, ideas and feelings but
also create and share meaning.

■“Simply stated,communication is a two-way process

of exchanging ideas or information.”
-Murphy et al
Importance of Communication in
Management

■ The major importance’s of communication in management,

i.e,
■ (1) Basis of Decision-Making and Planning,
■ (2) Smooth and Efficient Working of an Organisation,
■ (3) Facilitates Co-Ordination,
■ (4) Increases Managerial Efficiency,
■ (5) Promotes Co-operation and Industrial Peace,
■ (6) Helps in Establishing Effective Leadership, and others.
Basis of Decision-Making and
Planning

■ Communication is essential for decision-making and

planning. It enables the management to secure
information without which it may not be possible to
take any decision.
■ The quality of managerial decisions depends upon the
quality of communication.
■ Further, the decisions and plans of the management
need to be communicated to the subordinates.
■ Without effective communication, it may not be
possible to issue instructions to others.
■ Effective communication helps in proper
implementation of plans and policies of the
management.
 Smooth and Efficient Working of an
Organisation

■ Communication makes possible the smooth

and efficient working of an enterprise.
■ It is only through communication that the
management changes and regulates the
actions of the subordinates in the desired
direction.
 Facilitates Co-Ordination

■ Management is the art of getting things done

through others and this objective of management
cannot be achieved unless there is unity of
purpose and harmony of effort.
■ Communication through exchange of ideas and
information helps to bring about unity of action in
the pursuit of common purpose.
■ It binds the people together and facilitates co-
ordination.
Increases Managerial
Efficiency
■ Effective communication increases managerial
efficiency.
■ It is rightly said that nothing happens in
management until communication takes
place.
■ The efficiency of manager depends upon his
ability to communicate effectively with the
members of his organisation.
■ It is only through communication that
management conveys its goals and desires,
issues instructions and orders, allocates jobs
Promotes Co-operation and Industrial
Peace
■ Effective communication creates mutual
understanding and trust among the members
of the organisation.
■ It promotes co-operation between the
employer and the employees.
■ Without communication, there cannot be
sound industrial relations and industrial
peace.
■ It is only through communication that workers
can put in their grievances, problems and
suggestions to the management.
Motivation and Morale

■ Communication is the means by which the

behaviour of the subordinates is modified and
change is effected in their actions.
■ Through communication workers are
motivated to achieve the goals of the
enterprise and their morale is boosted.
■ Although motivation comes from within yet
the manager can also motivate people by
effective communication, e.g., proper drafting
of message, proper timing of communication
and the way of communication, etc.
Helps in Establishing Effective Leadership

■ Communication is the basis of effective

leadership.
■ There cannot be any leadership action
without the effective communication between
the leader and the led.
■ Communication is absolutely necessary for
maintaining man to man relationship in
leadership.
■ It brings the manager (leader) and the
subordinates (led) in close contact with each
other and helps in establishing effective
leadership
Increases Managerial Capacity
■ Effective communication increases managerial
capacity too.
■ A manager is a human being and has
limitations as to time and energy that he can
devote to his activities.
■ He has to assign duties and responsibilities to
his subordinates.
■ Through communication, a manager can
effectively delegate his authority and
responsibility to others and thus, increases his
managerial capacity.
Job Satisfaction
■ Effective communication creates job
satisfaction among employees as it increases
mutual trust and confidence between
management and the employees.
■ The gap between management and the
employees is reduced through the efficient
means of communication and a sense of
belongingness is created among employees.
■ They work with zeal and enthusiasm.
Increases Productivity and Reduces Cost

■ Effective communication saves time and

effort. It increases productivity and reduces
cost. Large- scale production involves a large
number of people in the organisation. Without
communication, it may not be possible to
work together in a group and achieve the
benefits of large-scale production.
COMPONENTS OF
COMMUNICATION PROCESS
■ Sender/Encoder
■ Message
■ Encoding
■ Channel
■ Decoding
■ Reciever
Sender/Encoder

■ a person who sends the message. A sender makes use

of symbols (words or graphic or visual aids) to convey
the message and produce the required response.
■ For instance - a training manager conducting training
for new batch of employees. Sender may be an
individual or a group or an organization. The views,
background, approach, skills, competencies, and
knowledge of the sender have a great impact on the
message.
 Message
■ Message is a key idea that the sender wants to
communicate.
■ It is a sign that elicits the response of recipient.
Communication process begins with deciding
about the message to be conveyed. It must be
ensured that the main objective of the message is
clear.
Encoding

■ Encoding is the process where the information you

would like to communicate gets transferred into a
form to be sent and decoded by the receiver.
Channel
■ Channels are the way you convey your message.
These channels include verbal such as telephone,
and face-to-face conversations as well as non-
verbal such as e-mail and text messaging. Each
individual channel has its strengths and
weaknesses in terms of communicating.
■ For instance - Written medium is chosen when a
message has to be conveyed to a small group of
people, while an oral medium is chosen when
spontaneous feedback is required from the
recipient as misunderstandings are cleared then
and there.
Decoding

■ Decoding is on the receiving end of

communication. This stage is just as important as
encoding.
■ Communication can go downhill at this stage if
the receiver is not practicing active listening skills
or if they do not possess enough information to
accurately decode the message
Reciever

■  Receiver is a person for whom the message is

intended or aimed.
■ The degree to which the decoder understands the
message is dependent upon various factors such
as knowledge of recipient, their responsiveness to
the message, and the reliance of encoder on
decoder.
Feedback

■ Feedback is the main component of communication

process as it permits the sender to analyze the efficancy of
the message.
■ It helps the sender in confirming the correct interpretation
of message by the decoder.
■ Feedback may be verbal (through words) or non-verbal (in
form of smiles, sighs, etc.).
■ It may take written form also in form of memos, reports,
etc.
Types of Communication

■ On the basis of location of the receiver

■ On the basis of media of presentation
■ On the Basis of Information flow
On the basis of location of
the receiver
■ Depending on the location of the receiver there
are two types of communication:
1. Internal Communication,
2. External Communication 
(1.) Internal Communication :
■ Communication among the members of an
organization is know as internal communication. That
is when executives and employee of an organization
communicate each other within the organization then
it will be labeled as internal communication

(2) External Communication:
■ When executives and employees of an organization
communicates or exchanges information with
outsiders of the organization then it is called external
communication.
■ Formal and Informal Communication :
Both internal and external communication can be
subdivided into two types:
i. Formal Communication
ii. Informal Communication 

i. Formal Communication : 
When information exchanged through formal
organization channels by following fixed rules then it
is knows as formal communication.

ii. Informal Communication:

Fixed rules and system can not prevent people from
talking with each other. Thus the communication that
takes place with in and outside of an organization
through unofficial lines can labeled as informal
On the basis of media of
presentation
■ From this point of view communication can be of
three (3) types :
(1) Written communication 
(2) Oral / Verbal Communication
(3) Non-Verbal Communication
■ (1) Written Communication:
When information, ideas, or feelings exchange in written form,
that is know as written communication. Written communication
has it’s own importance and for some particular purposes it has
no other alternatives.

(2) Oral / Verbal Communication :

It is a process of communication through words. Verbal
communication consists of words arranged in meaningful
patterns. Oral communication normally takes place in a face to
face situation. It may be formal or informal.

(3) Non-Verbal Communication : 

Communication without using words or writings known as non-
verbal communication. In other words, non-verbal
communication means communication through physical
movements and facial expressions. Gestures, posture, eye
On the Basis of Information
flow
■ Depending on the flow of information there are
different types of communication.

(1) Vertical Communication

(2) Horizontal Communication
(3) Cross / Diagonal Communication
■ (1) Vertical Communication :
When communication takes place between superior and
subordinates than it is known as vertical communication.
Here flow of information can be of two types:
(i) Downward
(ii) Upward 

(i) Downward : 
it is the flow of information from higher authority to lower
authority.

(ii) Upward :
Here the flow of information goes to higher authority from
subordinates.
■ (2) Horizontal Communication :
This type of communication flows between employees of
equal level.

(3) Cross / Diagonal Communication :

Communication across the formal chain of command is
known as cross or diagonal communication. In this
case executives and employees of different departments
and of different levels communicates each other without
maintaining the officialchannels.
Organised and presented by 

■ Manish (team leader) 

■ Mohini 
■ Giftedson 
■ Fiza 
■ Shadab 

special thanks to :

Ruchi Dhody
Keep smiling