theory of business comm

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Theory

of

Business

Communication


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Chapter 1

Business Communication: Meaning & Basic Forms

Communication is an important Process in any business enterprise. It is animportant need of any enterprise. One cannot visualize the existence of an organization withoutcommunication. The need of communication is felt in every field whether it is to promote sales; financialdealings or hearing a dialogue with colleagues or employees of a business concern. When anentrepreneur is explaining about his products to his customers or praising about the efficiency of hisemployees, pointing his financial requirements to his banker and bringing to the notice of his colleaguesall the management problems; all these activities need communication. Business is a group of differentindividuals and it is formed to achieve certain objectives; which are difficult to realize in the absence ofefficient communication. Therefore, it becomes necessary to know the meaning communication as wellas business communication.

Meaning of Communication

Communication: Meaning and Definitions

The word communication is derived from the Latin word Communis orCommunicare which means to make common. In other words, it implies to know or understand. Thus,communication means to understand information, facts or opinions of someone. At the same time, itmeans to let others know our ideas. Therefore, communication is sharing of information and ideas tocreate better opinion to others and understand their ideas. So when expression of ones ideas leads tobetter exchange of opinions, it becomes communication. Communication can be oral or in written formand sends signals accordingly.

Definitions:

The word communication has been defined differently by different thinkers and

experts in management. These are given below:

1. Koontz and Donells definition is:Communication is the transfer of information from one person to other whether or not it elicitsconfidence.

2. According to Louis A. Allen, Communication is the sum of all things which a person does whenhe wants to create an understanding in the mind of another. It involves a systematic andcontinuous process of telling, listening and understanding.

3. According to George R. Terry, Communication is an exchange of facts, ideas, opinions oremotions by two or more persons.


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4. Bellon and Gilons definition is:Communication is an intercourse by words, letters, symbols or message and is a way throughwhich one organization members share meaning and understanding with other.

5. According to C.G.Brown, Communication has been defined as transfer of information from oneperson to another, whether or not it elicits confidence or becomes an exchange or interchangebut the information transferred must be understandable to the receiver.

6. According to Redfield, Communication is the broad field of human interchange of facts andopinions.

7. Schacters definition is, Communication is the means by which the power is exerted.This describes the important role played by communication in empowering people inaccomplishing higher performance.

8. UNESCO (Many Voices one Word) Communication maintains and animates life. It creates acommon pool of ideas, strengthens the feeling of togetherness through exchange of messagesand translates thought into action.

Nature of Communication:

From the definitions given above, the following features can be deducted that describes itsnature:

1. Communication is an exchange of facts and opinions. Therefore, it is a two side process. In otherwords, in Communication we have sender i.e. one who conveys messages and other person isreceiver i.e. one who receives.

2. There cannot be any communication without message.3. Communication is a continuous process i.e. it does not finish after one message.4. Message conveyed has its reaction too. The reaction of the receiver of any message is also a

part of message and meaning of message is complete when reaction of message materializes.That is why message has got short lived process.

5. The main objective of communication is to create understanding. Therefore, Davis was of theview that Communication is what receiver understands and not what is communicated to him.

6. It is a universal process. It is equally useful and necessary in politics, religion and economy, apartfrom Business activities.

7. Communication can be in any form i.e. non-verbal, oral or written.8. Communication is something more than mere information, because it includes practical exchange

apart from sending information.

9. It is an important part of direction.

MEANING OF BUSINESS COMMUNICATION

Business Communication is a part of communication. Every enterprise works towards earningprofits. Every small or large scale enterprise (whether sole proprietorship, partnership or a company)owner has to remain in contact with customers and at the same time has to communicate continuouslywith customers and employees of the establishment. This process of communication is known as


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business communication. Different factors of production such as raw materials, machines, laborers etc.are collected by the owner so as to produce goods and services and then sale them to earn profit. All thebusiness activities like purchase & sale, exchange of services involve different groups of people liketraders, employees etc. The owner has to communicate with them during this business process. Facts,information and ideas are exchanged. This continuous process of communication is termed as BusinessCommunication. Business communication is necessary in order to realize business objectives. Properoperation seems difficult in the absence of business communication.

Definition of Business Communication

According to C.G. Brown, Business Communication is a process of messages and personswhich are associated with business. It consists of channels of communication.

It may be concluded that the business communication is that part of communication which isrelated to the business activities and which helps to make the business dynamic.

Thus, it is clear that the business communication is that form of communication where theexchange of ideas, information or facts between two or more persons takes place in a business

environment. In day to day use, Communication and Business Communication terms have been usedfor the transfer of ideas, facts and information for fulfillment of business objectives.

Objectives or Functions of Business Communication

The main objectives or functions of Business Communication are interrelated and are givenbelow. These can be divided into internal and external functions:

1. Internal Objectives or Functions:

The main objective of Business Communication is to make available commercial facts,information and messages to those working inside the business form. Some of these functions are:

a) Information to Management

The function of Business Communication is to convey to the management various important factsand information pertaining to business so that they are in a better position to take appropriate and timelybusiness decisions; which ensure the progress of enterprise.

b) Information to Employees

Communication creates harmonious business environment. It is helpful in developing betterrelations between management and staff. Communication is instrumental in conveying the feelings,sentiments and attitudes of one party towards other party. This helps in removing wrong feelings abouteach other.

c) Co-ordination


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Communication helps in ensuring co-ordination among different groups of people operating withinthe business. Individuals and groups come to know, what others are expecting from them with the help ofcommunication. Thus, communication creates mutual trust among different groups in a business firm.

d) Improvement in Morale

Policies and programs are determined in an organization. The information regarding these

policies and programs is conveyed to employees through communication. Employees are made to realizetheir responsibility by communication. Communication helps in improving the morale of the employees,because they are made aware of their role in business firm. This also awakens a sense of security andprovides work satisfaction to employees. Therefore, Business Communication helps in enhancingefficiency of workers and lower rate of absenteeism.

e) Means to achieve Ends

Communication assists in achieving business goals through informing, connecting, educating,stimulating, persuading, reassuring and integrating. By enabling above activities organizational goals maybe accomplished through a team effort and with togetherness spirit.

f) Helps to accomplish Results

A business organization is an economic entity. It is different from social, religious and charitableorganizations and is influenced by profit motive. This reveals that the organization would like to ensurethat it should accomplish objectives through efficient and optimum utilization of its resources like efforts,money, materials, machine, time etc. Without communication no organization can make and use ofresources as through communication efforts and resources are integrated in such a fashion so as toaccomplish desired results.

g) To provide forDecision making Supports

Organizations achieve desired results through rightful and timely decisions at various levels andin all the functional areas. Managers make good use of opportunities through novel decisions. However,for all kinds of decisions availability of adequate and timely inputs in terms of data, figures, facts, reports,discussions, clarification, consensus building and analysis is a must. Oral and written communication

provides needed support for decision making.

2. External Objectives or Functions:

Business Communication helps in linking the business firm with outsiders. Some of the importantfunctions in such a linkage are:

a) Sale of goods or services

Profit is earned by any business firm by purchase and sale of goods and services. This is

possible through business communication. The owner is in a better position to communicate to thecustomer the quality of the products. Advertisement, correspondence or encouraging customers atpersonal level are all the parts of business communication.

b) Relations with Suppliers

When goods are produced in the firm or sale is affected the firm needs raw material ormanufactured goods in any case. Communication helps in conveying to the suppliers the requisiteinformation about the kind of raw materials, time of supply, condition is supply and payment and otherfacts.


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c) Information to other parties

An important function of Business Communication is to provide information to other parties.Business firm has to establish rapport with banks, government authorities, telephone staff, researchersand other business establishments during the course of its business. Al this is possible with the help ofbusiness communication. A business firm must know government rules so as to implement them correctlyfor better and smoother running of business. Thus, in establishing better co-ordination with governmentoffices, business communication comes to the help of business firm. If business is being run as acompany, then all functions pertaining to shareholders and debenture holders come under the purview ofbusiness communication.

d) Enables Organization to becomeDynamic

In todays business environment organizations must develop ability to cope with change. Withinturbulence nothing remains static. Business organizations work through mergers, acquisitions, pools,combinations. Customer loyalty is ever changing, employees turnover is increasing and capital is movingfast. Business process outsourcing, corporate governance and larger social concerns are to be handledwith positive spirit. All these changes can be addressed only through effective business communication.

e) To Face Emerging Challenges

Organizations facing new situations require new approach to communication. Due to emergingknowledge, creativity, innovation and learning new situations and opportunities are developing. Hence,there should be matching communication processes so as to get advantage of new developments.

BASIC FORMS/METHODS OF COMMUNICATION

Communication implies exchange of information. Communication process helps in understanding

the ways in which a person can convey his message to others. In other words, communication tells aboutthe path, through which the message passes from one person to the other. Below are the different formsof communication:

I. Non-verbal CommunicationThis is a part of communication in which a person uses his expressions by way of signals in order tocommunicate his message. This does not require the use of words because a person can express hisfeelings by his body language. Under non-verbal communication, when one wants to show oneshappiness, one smiles or gestures with ones hands or putting mild strokes on someones forehead. Aperson can communicate his feelings to others quickly and economically by using non-verbal form ofcommunication. The other person (receiver) can easily visualize as to what a person is trying to sayor what actually he is thinking.

Functions of Non-verbal CommunicationWhen a person resorts to Non-verbal form of communication, he does not need words to speak or towrite. He can use body language i.e. gestures like facial expressions etc. to communicate his message.Non-verbal communication has many functions which are explained below:

1. To provide informationA person provides information to others by different body expressions without using words.

2. Easy to workA person teaches the other person how to perform a work efficiently by gestures. Other personunderstands these signals and does his work easily.


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3. To express feelingsA person expresses his feelings to others by the process of non-verbal communication in a veryefficient manner.

4. To control flow of messageWhen a person uses non-verbal form of communication, he can control the flow of message withexpressions of body language and message goes quickly to the other end with the right effect.

5. To complete verbal messageSometimes a message is not complete in the right spirit. In that situation, using non-verbal form ofcommunication helps in expanding verbal message.

Advantages of Non-verbal Communication

1. ReliabilityNon-verbal Communication is known for its reliability. The body language or gestures clearlyshow as to what a person is thinking. One can easily understand speakers emotions by his facialexpressions.

2. QuicknessMessages are conveyed quickly to others by using non-verbal form of communication. Quicknessis required and useful from both the senders and the receivers point of view.

3. Economy in communicationLow expenditure is involved in conveying messages in this form of communication. Due toeconomy all the business units are benefitted which use non verbal communication.

4. Accurate understandingManagers of a business firm can easily and accurately make customers and employeesunderstand their message and also can receive others messages in the same way. This pavesfor better understanding between two sides.

Limitations or disadvantages of Non-verbal communication

1. Lack of SecrecyIn this form of communication, ones expressions or gestures are seen by other persons too apartfrom the person to whom the message was conveyed. Therefore, this form lacks secrecy.

2. Mis-representationSometimes receivers of the message do not understand the message. In such a situation,gestures are mis-understood and thus the whole effort proves waste. The receiver of themessage may be confused in various situations.

3. Physical presenceThis form of communications becomes successful when both the parties are present facing eachother. If it is not so, non-verbal form of communication can not work properly.

4. Useful only in brief messagesNon-verbal form of communication works correctly when small messages are to be conveyed. But

when messages are long and detailed ones, this form of communication can not succeed.

5. Difficult to follow

The message conveyed in this form of communication is difficult to follow. One can understand

the message correctly only when one knows the meaning of gestures. Therefore, it is more

difficult to study this form of communication. The meaning of gestures generally changes

according to place and situation.

6. No written proof


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This form of communication depends on expressions, feelings, gestures etc. Hence, written proofis not there in case of any dispute in future. However, the gestures or expressions can berecorded through videographer but it would be more expensive and also this system is used onspecial occasions only. Written proof cannot be collected in routine where the non-verbalcommunication takes place.

7. Difficult in collecting informationMessages conveyed by this form of communication are in forms of gestures or any bodylanguage. But messages pertaining to past events cannot be conveyed. Therefore right amountof information is hard to collect for the future record and there is lack of record of informationgiven in the past in this type of communication.

II. Verbal (Oral) CommunicationIn this process of communication, conveying a message in spoken form is called verbal or oral

communication. Exchange of opinions is done with the help of spoken words. The receivers as wellas the sender of the message are facing each other in this mode of communication. Oralcommunication takes place in different ways such as personal talks, interviews, speeches and talkingon telephone etc. The receiver of message in this process of communication comes to know the bodylanguage of the sender. Receiver gets the message in right perspective because if something is notunderstood properly, the receiver can ask the same to the sender and thus can remove his doubts.

According to Viley, In the process of communication, verbal communication is best one, because

along with words, body language is also used with the result that receiver can easily know thefeelings of sender.

This channel of communication is important in todays business dealings because managers haveto decide on many crucial matters and his decisions are to be communicated to the subordinates.Similarly the suggestions of juniors can be sent to higher authorities.

Characteristics of Verbal communicationOral/verbal communication has many characteristics which are described as follows:

1. Exchange of opinions between receiver and sender takes place by direct verbal talks.2. This is a two-way communication system because sender of the message can visualize whether

receiver has understood the message conveyed or not.3. This communication has got two types- Direct and indirect. In direct communication, persons are

exchanging their ideas through speech facing each other or when there is group discussion. Theexamples of indirect communication are: telephone talk; public communication system etc.

Channels of Verbal Communication

1. Radio2. Television3. Interviews4. Mobile/ telephone5. Training


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6. Discussions7. Speeches8. Meetings

Importance or Significance of Oral Communication

Various research studies have proved the fact that 75 percent of the time (spent in communication) isdevoted to oral communication by top managers. Therefore, it is clear that oral communication has animportant place amongst the various forms of communication. Its important is clear with the undermentioned points:

1. Leadership: The top management has to bestow leadership on different groups of people toperform duties in an enterprise. Leadership quality emerges due to personal traits, managerialbehaviors and attitudes towards growth. A manager with his distinct leadership qualitiesencourages and inspires his subordinates. Oral communication is useful in providing goodleadership.

2. Participation: In present time participative management plays crucial role in the field of corporatemanagement. All the concerned persons are invited by management to take decision on some

important issues. Discussions are held to find out viable solutions in order to achieve companysobjectives. Oral communication helps in this matter to great extent.3. Recognition: This is an indicative of human touch element in managers. Now-a-days every

person wants to be recognized for the works being done by him. This expectation is fulfilled whentop managers praise and respect their subordinates for their performances. In such a situation,oral communication does the needful at fast speed.

4. Counseling: Higher authorities in a business unit feel it appropriate to have counseling with theirsubordinates and other employees for efficient running of business. This is for achieving firmsobjectives and for evaluation purpose.

5. To develop good climate: The success of an organization depends upon its overall environment.The work goes on smoothly and quickly when environment is conducive. Creation of goodenvironment is possible only through communication. Confusions, rumors and misunderstandingstake place which pollute the business environment and slows down the progress of the businessin the absence of communication.

6. Team Spirit: Team spirit is necessary to be inculcated among groups of workers to realize theobjectives of the organization. Effective oral communication helps the authorities in the respect.

7. Conservation: Now-a-days, managers conserve the concerned persons of different departmentsto reach at certain decisions. The experience, ideas and knowledge of persons help a lot. Thissort of conservative management gets a boost with the help of oral communication.

8. Delegation of Authority: For smooth running of business, it is necessary to delegate authority to

subordinates along with entrusting them with responsibilities. Authorities delegates rights to juniors so that they may do work independently. Rights are delegated in both written and oralform. Oral form of communication is widely used in this respect.

Oral communication becomes significant because orders and directions are communicated verballyand at the same time informations are collected from subordinates pertaining to the works beingcompleted by them.

Advantages of Oral CommunicationThe advantages of oral communication are describes here below:


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1. Saves time: In oral communication, messages are not sent in written form. This saves the timeand messages reach the employees quickly.

2. Economy: Oral communication is an economic source of communication because no paper, inkor pen is involved in this matter.

3. Clarity of the message: The message is quite clear in oral communication, because in case ofany confusion, the clarification is sought immediately from the sender without losing any time.The process of communication is successful when message is received in the same spirit as isbeing delivered.

4. More effective: Oral communication is more effective in its nature. A message can becommunicated effectively by body language i.e. different gestures such as nodding, shaking thehead or neck, raising eye brows etc. It can be made even more effective at different times by thefeeling of happiness, anger, respect etc.

5. Co-operation: Managers and subordinates come into direct contact with each other in oralcommunication. This paves the way for better co-operation among employees of the organization.

6. Knowledge of Reaction: One can easily understand the reaction on the part of receiver of themessage through his feelings. If the effect of the message is not as intended, then message canagain be conveyed in a better way to be more effective.

Disadvantages of Oral Communication

Although the oral communication brings quickness in the activities of the organization, but there areoccasions and times when oral communication is proved less effective. The disadvantages of verbalcommunication are as follows:-

1. Presence of both parties: This requires the presence of receiver and sender of the message. Ifthe receiver is not available at the time of communication then the utility oral communication islost.

2. Lack of proof: This is main drawback of oral communication. There is no written proof of messageconveyed or sent in oral communication. Difficulty arises when receiver of the message takes areverse turn later on. This is why higher authorities consider it correct to send theirorders/directions in written form.

3. Expensive in nature: Oral communication is not appropriate in case of long messages as it is notpossible to remember lengthy messages by the receiver. Some messages are important and areto be kept as reference material to be consulted in future like Presidents speech for AnnualReport of a Company etc.

4. Non-availability of reference: Oral communication is useful for information which is short lived. Butthe information which is needed for reference purposes in future, do not come under the purview

of oral communication. The decisions taken by top management, rules and regulations and otherdecisions are helpful for smooth conduct of functioning of the organization cannot becommunicated in oral form.

5. Quick response necessary: When there is a little time with the sender of the message, somethingwrong can be uttered. Bitterness starts creeping in the organization and it finishes the importanceof message communicated. At the same time, receiver of the message does not get sufficienttime for answer which he wants to offer to the sender.


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3. Written CommunicationWhen exchange of opinions is in a written form rather than by spoken words known as written

communication. Written communication includes newspapers, magazines, reports, letters, circularsetc. Care should be taken in written communication that the meaning of the message should not alter.Therefore, in the process of this form of communication, simple words are used for conveying themessage. Every message should be straight forward in its approach rather than cris-crossed. If thereis a need, charts are also used to make the message more effective. The words like You & Heshould be used to call different persons in written communication. Messages being in written form can

be kept as proof for future dealings. The choice of words should be done carefully in writtencommunication and the words should be such so as to convey a specific meaning. As far as possible,message should be in short sentences so that receiver has no difficulty in finding the true meaning ofmessage.

Characteristics of Written CommunicationWritten communication has following characteristics:1. Exchange of information and messages is in written form.2. This communication is formal in nature and cannot be overlooked.3. This can be of two types:

Group written communication and individual written communication. The mediums of thiscommunication are letters, memorandums, circular bulletins, magazines, handbook, diaries,policy guidelines etc.

Advantages of Written Communication1. Written Proof

Written communication is in the context of future reference. If some dispute arises, the matter canbe solved by going through the contents of past written materials.

2. Correct messageWritten messages are prepared with perfect care. Moreover, these are checked with greatattention before presenting them in meetings. Therefore, mistakes are not likely to occur in them.

3. No need for personal contactLike oral communication, it is not necessary for both parties to be present before each other. It isbecause, under this form of communication, authorities send the written message to theconcerned person.

4. CompletenessWritten messages are prepared with perfect knowledge of the things concerning the matter. Thatis why; there is completeness in the message.

5. EconomicalIf the receiver of the message is stationed at a far of place, then this method is economical in thesense that postal charges are quite nominal for sending the message to the receiver by post.

6. Information to all at one time


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Written communication is the best channel of communication for conveying information topersons living at different places. Although in oral communication too, many persons getinformation in meetings or conferences, but it is not necessary for the receivers of the informationto be present at such gatherings. Therefore, this medium is more appropriate than oralcommunication.

Disadvantages of Written CommunicationThough there are many benefits of written communication, yet it is not f ree from drawbacks. The main

defects of written communication are:1. Wastage of time

As compared to oral communication, this system of communication is sheer wastage of timebecause much time is wasted in drafting the message. Even signatures of higher authorities arenecessary on these drafts. They take long time to sign the documents. So delay is caused insending a message.

2. More CostlierThis system involves more cost as compared to oral communication. Expenditure is incurred onpaper, ink, type-writing and remuneration for the person, preparing the message. The firm incursexpenditure on preserving the copies of he written messages.

3. No secrecyThere is lack of secrecy in this system of communication. Written communication passes through

the hands of many employees and therefore even if management tries to maintain secrecy, it failsin its objectives to do so.

4. Not suitable in EmergencyWhen there is some emergency, this system becomes inappropriate in the sense that it will takemuch time to send written message.

Comparative Study of Verbal and Written Communication

S.No. Basis ofDifference Verbal Communication Written Communication

1) Oral/written This is in oral form. This is in written form.

2) Expenditure Saves money because no Expenditure is involved on paper,need of paper, ink etc. Ink etc.

3) Time Time is not wasted in writing Time is wasted in writing thea message. message.

4) Effect More effective, because gestures There is nothing of that sort likemake the message interesting. gestures/using body language.

5) Feedback Immediate feedback from the Delayed feedback.receiver of the message.

6) Productivity Communication is prompt, therefore Productivity known at a laterproductivity is more. stage.

7) Co-operation Personal contact paves the way for Lack of personal contacts resultsco-operation between the parties. in less co-operation.

8) Presence of parties It is a must. Not necessary.

9) Secrecy Message remains secret. Message does not remain secret.10) Proof No proof remains. Proof remains for future references.

Which method is the best for communication purpose out of these two? It is very difficult to answerbecause both the methods have their own advantages as well as disadvantages. The need of the hour isthat a business unit must try to establish proper co-ordination between these two forms ofcommunication. According to Brown, if a manager chooses only one method, then he will have to faceserious failure. Therefore, it can be ascertained that both the methods should be employed in a business


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as per the needs of the firm. In other words, where verbal communication can work, it must be used andwhere written communication is essential, it should be resorted to for the benefit of organization.

4. Audio-Visual CommunicationImportance of Audio-Visual means of communication is increasing very fast in the present times.

Today, films, video cassettes, movie cameras, tape recorders and computers are being used at alarge scale in various industrial activities like meetings, conferences, sales campaigns, trainingprogrammes, surveys and advertisements. The importance of Audio-Visual communication has beenfelt in areas of production, sales, advertisement, training etc.

Chapter-2

Different Models and Processes of Communication

Communication system is considered to be quite complex because changes dooccur at its different stages. Dispatcher transmits information to receiver by adopting different mediums of

communication. He chooses any one of different ways, keeping in mind that the medium selected should

not destroy the effects and authenticity of information sent. Therefore, the ways selected by the sender

for sending information are known as communication models.

Information is being sent from one place to another by communication process.

In this way, the receiver becomes in a position to understand the meaning of message received by him.

Different mediums of communication are collectively considered as communication models.

COMMUNICATION PROCESS

Communication process comprises of various steps. It involves stimuls and response. Stimuls iscommunicator specific whereas the communicate responds. In communication mere sending and

receiving of message is not enough. What is more needed is common understanding between the sender

and the receiver. Whether you speak, write or listen, communication involves more than one act. Rather,

it has a chain of events that can be explained as under:

1. Sources- In the communication process, a person, who sends or dispatches the

information or message, is a source of information for the receiver. The sender is a person

who initiates to communicate. The sender must have a visualization of the receivers

mental state before communication. When the sender has to convey both bad and good

news, it is always advisable to convey good news first. In case, the sender is required to

address both simple and difficult to understand message, it is often better to start with the

message which is easy to understand. This order increases effectiveness ofcommunication. When the message is to be communicated verbally, the sender should try

to get meaning of the clues which are visible and may give additional information. In case

of a business entity a marketing manager explaining about new product launch to the sales

personnel, a computer software maker explaining it to the user, human resources manager

giving advice to his superior are the examples of sender in communication. Therefore the

sender of the message should be well acquainted with the message to be sent.


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2. Encoding- Message or information is usually invisible or in abstract form. Therefore,

encoding is necessary to give it a clear shape when ideas are converted into symbols or

language. When a person expresses so many concepts enshrined in his mind, language

becomes an important communicating system. Body language is used while encoding any

message. Body language or gestures can have different forms such as facial expressions,nodding, winking, raising hands etc. In business, many messages are encoded in computer

language now-a-days. While encoding a message, the sender needs to know what subject-

matter to include, how the receiver will draw meaning out of it and how it may influence the

relationship with others. In practice three commonly used practices are: speaking, writing

and body language. Many factors influence the coder like communication skill, knowledge,

experience, environmental, social and cultural elements etc.

3. Receiver- In the communication process, he is a person who receives the information from

the communicator. The message should be drafted with keeping in view the receivers viewpoint. The technical knowledge holders when communicate to non-technical people must

use laymens language. If the message not reaches a receiver in its spirit, it is treated that

communication is not complete. The extent to which this person comprehend the message

will depend on a variety of factors, such as (a) how much the receiver knows about the

subject, (b) his receptivity to the message, (c) the recipients knowledge and perception

about the message being communicated, (d) the trustworthy relationship between the

sender and the receiver of the message.

Psychologists believe that perception reveals an individuals sense of reality. It is an

outcome of varied factors, such as, attitude of receiver towards sender and the message,

his intelligence, previous learning and communication skills. However, an individuals

perceptions cannot be measured accurately all the time. Perception is highly subjective and

varies across the people. Usually superiors have a perception that employees at lower level

are not enough mature so as to share with them theirs managers policy matters. On the

other hand, workers at lower level believe that their managers hide important information

from them. Communication process is complete when receiver gets the message from the

sender in right way.

4. Channels- This hints at the way, or medium by which message is transmitted to the

sender. Such channels may be in oral or written form e.g. personal meeting, telephone,

radio, speech, conference, correspondence, bulletin or notice board etc. for communicating

effectively and efficiently, the suitability of channel to message is a prerequisite. For

example a telephone call may be inappropriate to communicate complex figures or graphs,this needs quick mails service to transmit print material.

5. Interpretation- The receiver of the message decodes the message and tries to know the

meaning of the message received. He makes the message clear with the help of words,

symbols, charts etc. Sometime, help is sought of other person to translate the message


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which is in typical or secret terminology. Yet the specific and personal meaning of the

message is decoded by the receiver ultimately.

6. Re-action- It implies the effect of message upon receiver. The purpose of communicationis not only to transmit the message, but acting in required way is also important. It depends

upon the reaction of receiver to the message as to how he works with the message

received. In reality the best communication is based upon mutual confidence and

understanding between sender and receiver. The message will have adverse effect on the

receiver if he realizes that there is a paradox of language and behavior on the part of

sender of the message.

Some of the models of communication are:-

1. Shammon-Weaver Model- This is universally accepted model in the communication

process. This model was formulated by the famous scientists Clandi Shammon and Waren

Weaver in 1947. According to this model, communication is a process of sending

information. The symbols of message remain changing in this model, causing secrecy in

the message. Taxonomy of this model is given below:

Information Source: information source is an important element in any process of

communication because only after collecting information, we are able to send the

information to others.

Transmitter: The person sending the information to others is called the transmitter.

Noise Source: In the communication process, all the obstacles distorting the message

process are termed here as noises.

Message: All the information sent by the sender to the receiver in the communicationprocess is known as message.

Receiver:A person receiving the information is known as the receiver. He usually decodes

the message to have a better understanding of the message.

Re-action: The sender usually gets the feedback from the receiver which signifies the

reaction on the part of receiver of the message.

2. Berlos Dynamic process Model- This model is also important in the process of

communication. The model was propounded by David Berlo. According to Berlo events do

not occur in a certain determined order, but order of their occurrence remains changing. He

was of the opinion that all elements have interconnections in communication process.

The main factors in this model are as follows:

(i) Source ideas, thoughts, information

(ii) Message encoding, symbolic form

(iii) Channel The way, medium

(iv) Communicator Sender, Communication Art

(v) Reciever Decoding the message received

(vi) Re-action Acknowledging the message received


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3. Aristotles Model- Aristotles Model explains three elements in communication process.

Communication process get completed with co-ordination of these three elements, which

are:

Speaker Message Receiver

4. Losswell Model- This is popularly known as verbal model which was popularized by

American Scientist Losswell. According to him, there are many elements which are

interconnected with each other in the process of communication. This is clear from the

diagram given below:

Sender Feedback

Message Re-action

Medium

Receiver Analysis

5. Osgood and Schramms Model- This model came into existence in 1955. According to

this model, communication process is continuous and includes sender, message andreceiver in an interconnecting fashion.

6. Dances Model- This was formulated by a scientist Dance in 1967. He was of the opinion

that communication process revolves in the form of a circle having no beginning or end

points.

7. Murphys Model- The writer H. A. Murphy formulated this model with the active co-

operation of his colleagues- Hiedebrand and Thomas. According to this model, the different

organs of communication process march forward of each other. Communication processgoes on from context to feedback. The other components of this model are given as

follows:

Context--- Sender--- Message--- Medium--- Receiver --- Feedback

Therefore Murphy model explains the sorts of events in communication process. Feedback

is generally in verbal or non-verbal form.

8. Josephs Model- This model seems to be influenced by Shammon-Weaver model. Joseph

chose the under mentioned areas (sources) to explain this model.

a. Source- In this model, the first task is to find out the different sources of information

from where it is collected.

b. Guideline- Guidelines are prepared as to how the information is to be sent as well as

choice of words is considered in this connection.

c. Medium- After preparing the guidelines, the best medium is chosen so that message

could be sent efficiently and quickly.

d. Utility- It is also considered as to how the message is of any use to receiver and

whether information is to be treated as secret for the receiver.

e. Receipt and Analysis- Along with the information received, it is being analyzed so as to

know the real meaning and significance of the message.


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f. Re-action- The receiver sends his feedback to the sender and tells as to how the

information is beneficial for him.

9. Mass Communication Model- This model was formulated in 1980 by different scientists

which also explains the inter connection of different components such as source, sender,

message, receiver and re-action. These components are linked with each other during the

process of communication.

10. Thill and Bover Model- This model occupies an important place amongst different models

of communication process. According to this model, communication process starts from the

idea and move up to reaching the reaction level. When an idea emerges in the mind of any

body, it changes into message. Then it is sent to the receiver, who after analyzing it sends

it along with his reaction to sender in the form of feedback. This model resembles with that

of Murphys model and is practical in nature.

11. Inter-personal Model- The model believes that at least two individuals are involved in

communication process and both have different opinions. However, they have similarity ofviews on certain subjects which is visible.

12. Cilber Model- According to this model, the message cannot become effective, unless and

until, the right meaning of the message is not found out. The message is effective when

sender or receiver reaches to the same conclusion about the meaning of message. The

findings of this model were used by Vastle and Macleen in their researches later on.

13. Transper Model- This model is based on internal and external elements. Both these

elements are mixed with each other in communication process. Their effect is clearly seen

when these are separated from each other. The external element is usually relatively

independent over which a communicator is having low degree of control.

14. Vastle and Macleen Model- This model was propounded in 1957, which makes it clear

that any one factor in communication process goes on revolving continuously. When a

person wants to send his message, he presents his side of the story. The receiver, after

analyzing the message presents his re-action before the sender.

15. Leagans Model- The model was presented by Leagan in 1961 which includes the

following components:

Sender

MessageChannel

Receiver

Feedback


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16. Gerbner Model- This model was presented by an American Scientist George Gerbner in

1956 when he wrote an article Towards a General Model. In this model, it is made clear

that a person first thinks about any idea and after analyzing, he has to find out the medium

in which message is to be transmitted. Then he sends the message to the person who is

linked with that message in one way or the other.

17. Lesiker Model- In Lesiker model too, communication process starts with sending of

message, but it does not finish with feedback but, it goes on with a new frequency. For

example, when a person sends a message, the receiver sends his reaction to the sender.

Afterwards, if the receiver sends any message to the sender, then the sender (first person)

will dispatch his feedback to the second person.

Transactional Process Model of Organizational Communication:

The model was presented by John Benberg and Milliam Willmont. In this model all the persons

involved in communication process go on sending and receiving information simultaneously. Therefore,

there is a simultaneous process of sending and receiving of messages. That is why organizational

communication process is also known as mutual process because this communication process needsmutual co-operation of sender and receiver for its success.

Indian Models in Communication

In India, communication system has a long history of its existence. In the old times, kings used to

send their message to public at large and also used to carefully listen their complaints and suggestions asthese were the parts of communication system. The main component of Indian communication system

has been one world i.e. kings used to treat the whole world as a family. The different mediums of

communications were used by kings to transmit their message. Kings ministers used to choose different

mediums of communications as per the situation. It was also kept in the mind that the meaning of

message should not alter in any case i.e. message should not be understood in wrong perceptive.

King ---------- Ministers -------- Public -------- To send the message from king to the public at large.


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Public -------- Ministers -------- King ----------- Complaints or suggestions from Public.

Indian Models before Freedom

Indian thinkers propounded different communication models prior to freedom because messageswere to be flashed to different parts with the sole purpose of getting freedom. There were many

revolutionaries who were having alliance with different political parties, and they were using different

channels of communication for sending the message. Liberal parties believed in mutual talks and

exchange of opinions while strong milled parties resorted to other methods like:

Information ------ Taking Action ------ Realization of Objectives

However, liberal parties modus operandi included discussion also:

Information ----Discussion ----Decision Taking ---Decision is communicated for action

Chapter3

Effective Communication

Definition:

According to Haneyager and Heckmann, Communication is the process of transmitting and

receiving information. It is also fundamental to the practice of management that without it an organization

could not exist. The reason is very apparent. If we could not communicate with employees, we could not

inform the work we want it to be done, when to do it and so on.

Communication depends not only on transmitting the information, but it is also necessary to see

their effect on the receiver. Every transmitted message contains some objective. If that objective is

fulfilled with communication, it will be called effective communication. Otherwise it will be a sheer wastage

of labor, time and wealth. Many a factors are to be considered for effective communication.

One of the important requirements of an effective communication is that communicator should

have the knowledge of communication chain. Every officer should have approach to communication

system and communication chain. Chain of communication should be direct and short and should beused in its entirely. All the persons handling communication centers should be competent enough to work

effectively. Communication chain should not be interrupted when the work is in progress. Every

communication should be authorized one. Orders must be such, which are adhered to efficiently and

quickly. The orders must be crystal-like clear so that the persons, for whom they are transmitted, should

become clear about its meaning.

Significance or Importance of Effective Communication


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The significance of communication cannot be described in few words. According to a Former

President of American Management Association, Communication is most critical problem of

management in present times. It is a well-accepted fact that effective communication is necessary to

make an industrial organization effective. Co-ordination is needed for effective functioning of an

organization; which is not possible in the absence of effective communication.

The utility of communication in management is clear from the facts mentioned below:

1. Communication is essential for Management- Communication is an important function

of management. With the help of communication, a manager is able to give practical shape to many of his

plans and projects like giving information to others regarding firms objectives, planning, co-ordination etc.

According to Koontz and ODonnel, Effective planning exists where every responsible person possesses

requisite information pertaining to his own field and as far as possible, these informations should be

specific and detailed ones.

Redfield wrote, Communication can make or mark an organization. Similarly MerryCooshing Niles stated that, Effective communication is necessary ingredient for perfect co-ordination

because policies can be transmitted vertically and horizontally which leads to creating high morale and

mutual understanding amongst different groups of an organization.

2. Basis of Planning- Primary function of management is planning and its sure success

depends upon effective communication. Koontz and ODonnel opined that planning is effective where

every concerned person collects information having bearings on the area f planning. This information

should be specific and detailed ones. Besides, communication is the only medium to express and

transmit all the orders, guidelines, suggestions and sentiments. Effective communication is needed to

successfully implement the planned programmes.

3. Basis of decision making- Communication helps the top-management in taking quick

decisions. Authorities will not reach to any worthwhile decision in the absence of communication. Crucial

decisions are to be taken at every step in business organization and at different levels of management.

Solutions are to be formal. Business activities are life-less without communication in the same fashion as

human body is a mere corpse in the absence of soul. In short, it can be said that managerial decisions

are put into practice with the effective communication. Successful communication is the basis of direction

and leadership. An organization remains active with help of effective communication. Managers allocate

works and responsibilities as per pre-determined objectives through communication and ensure their

successful implementation.

4. Successful operation of business-A well developed communication system is necessary

for successful and smooth working of an organization. Communication plays a very useful role in any

business enterprise; be it large or small; or be it in public sector or in private sector.

5. Quick decisions and its implementation- Effective communication help the managers to

take prompt decisions. Different types of information, facts, data, suggestions and complaints etc. are first

collected through communication and then disseminated among different groups of personnel in the

organization with the help of communication mediums.


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6. Increase in employee morale- Objectives of the organization are easily transmitted to

employees through effective communication. The system explains to every worker his area of operation,

his responsibility and way to do the work efficiently. Thus, organizational charts acquaints every worker

what work he has to do, as well as when and how it is to be performed, what are his rights towards whom,

and to whom he is accountable. Thus, workers are motivated automatically to have proper interests in

theirs jobs. Employees get greatly attached to the enterprise when there is continuous exchange of ideas

and informations between managers and employees. This also raises their morale and they strive hard

for the implementation of programmes with vigor and zeal.

7. Promotion of Industrial Peace- Peace is necessary in the organization so as to achieve

more production. Long strikes and lock-outs bring the firms at the verge of insolvency. The employees

should get proper information about organization at regular interval to avoid mis-understandings. Effective

communication helps in managing information between employees to top management.

8. Basis for leadership- Effective communication is the basis of leadership. Leaders role is

passive in the absence of communication, because leader will not be able to communicate his ideas,

sentiments, suggestions and decisions to his subordinates. Therefore, with the aid of effective

communication leader and hid followers can create mutual understanding, trust and harmony.

9. Cost Reduction- Present competitive world requires an organization to be cost effective

for ensuring its success. Effective communication reduces chances of strikes, lock-outs and industrialunrest. Mutual dialogue between the labour and management ensures better work relations. This leads to

better utilization of resources and reduction in cost.

10. Incentive for democratic feelings- All the major decisions are taken by the top-

management, but are implemented by employees at lower levels. Sometimes, suggestions from

employees can do wonders and meritorious employees are awarded accordingly. This creates a feeling

among workers that work is being done on the basis of democratic principles in an organization. This

feeling maintains good and harmonious relations between labour and management.

According to Hobs and Johnson,The main function of communication is to simplify social

relations. It prepares the employees to accept the changes taking place or going to take place in the

organization in the wake of new techniques of production or in the light of using new machines and

instruments.

Thus, effective communication is a life-giving element which activates an organization in right

direction. This is needed more in under developed and developing countries like ours because Indian

labourers are still illiterate, and conservative in their attitudes. They migrate to cities from villages to work

in factories. They come from different areas having different dress codes and languages. It is necessary,

that communication system should be such that every concerned should be able to understand or

communicated to them in the same organization. They should also be in a position to express their ownideas to the management with perfect ease. After ensuring this business enterprises will be in a better

position to have maximum production of better quality at lowest cost of production.

According to Harold Yasvin, In our operation of business, communication system is playing an

important and growing role. We have to inform more persons, we have to listen from a wide section so as

to understand their grievances well. We have to seek their co-operation in removing the problems so as

to create an atmosphere of mutual understanding and trust in the organization.


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Chapter 4

Principles of Effective Communication

Definitions:

According to Keith Devis:

To think of a successful business without proper communication in todays world is like daydreaming.

Because of the lack of communication in business the workers and managers cannot work inharmony and the business will fail to attain the set targets.

Prof. Hicks has said, The root cause of all the worlds problems is the human beings inability tocommunicate and his misconception that he is communicating.

Prof. Theo Haemann has also said, The success of all managerial work depends uponcommunication.

In communication managers and subordinates exchange ideas so as to attain the set targets ofbusiness. It helps in understanding the problems faced by the subordinates in working and the solutionthereof. This results in understanding how the subordinates can be encouraged to do their work. It alsoencourages the workers to work harder. And all this depends only and only on effective communication.

Necessary conditions for effective communication

There are some necessary conditions for effective communication. They are-

(i) Understanding correctly: It is important that sender is understood correctly by the receiver.The receiver should get the same message as intended. If the receiver gets the differentmessage then the communication fails.

(ii) Clarity: The communication should be clear. Such language which has two meaningsshould not be used.

(iii) Trust: For the communication to succeed it is necessary that the receiver of the message

trusts the sender. Trust is the basis of communication.(iv) Controllable: With the help of control the manager tries to find whether the progress of workis going on as per plan or not; so that the problems can be found and removed.

(v) Friendliness: The sender maintains friendly relations with the receiver. It encourages thefeeling of faith, accountability and mutual co-operation in the workers towards the business.


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(vi) Organization: Without proper communication nothing can be said about organization,because through communication we distribute work, authority and accountability and then itis seen whether the business should be expanded or contracted so as to grow the businesswhich can help in attaining its objectives.

(vii) Best way of running the institution: Communication has an important role in running theinstitution in best way, because it is important, in running various business techniques,production processes and economic processes. It is through communication that we directthe working of these processes and encourage the managers.

Principles of Effective Communication

The following principles are used to make communication effective. They are called the sevenCs.

(i) COMPLETENESS(ii) CONCISENESS(iii) CONSIDERATION(iv) CONCRETENESS(v) CLARITY(vi) CORRECTNESS

(vii) COURTESY

It is necessary to incorporate these seven Cs in the communication process. Their description isas follows:

(i) Completeness: Various writers have put a lot of emphasis on completeness to makecommunication effective. It is the first principle of effective communication. It means that the businessmessage should be complete. It should include all the facts and opinions. For a message to be completeit should have the following componenets.

a) Should give all the necessary informations: In communication, it is important to have all theinformation that is necessary. It is important from the point of view of the receiver. For themessage to be complete it is necessary that the receiver gets the answer to the 5 Ws whichare (Who, When, Where, What, Why).

b) The message should answer all the questions: The message should be such that it answersall the questions. Only then it can be called complete. While answering the questions, itshould give all the simple and important information. Nothing should be hidden or left.

c) Provision of other necessary information: The message may contain the information otherthan the questions answer. The other persons may not ask all the questions. But we can stillremove this discrepancy while answering. Thus, the message(i) Should answer the 5 Ws.(ii) Answer all the questions asked.(iii) Give extra information.

About completeness, writers have said, Communication should include all those things thatare asked and those things that are important in clarifying ones message.

Completeness in communication is beneficial to the business. It has the following benefits:

(i) It gives favorable results.(ii) It increases goodwill.(iii) Customers become interested in the business.(iv) The business moves towards becoming a long term establishment.


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(ii) Consciousness: Consciousness means sending the message to the receiver with the same

meaning as intended by the sender. The choice of the right words is to be made so that the givenmessage can be understood in its true meaning. It also means to avoid the use of unnecessary words sothat the receiver can receive the message without any loss to its main content. Such language should beused in the message which can deciphered by the receiver. A message usually contains thoughts andinformation. When the message receiver tries to explain the message then he should have full knowledgeof the hints, pictures and words used in the message otherwise he may translate it incorrectly. For thesuccess of communication it is necessary to communicate in person as long as possible.

(iii) Consideration: In communication it should be seen that the sender keeps the receiver inmind while sending the message. In the message good, soft and courteous language should be used.Using We instead of I makes the message more effective. To express consideration a positive attitudeshould be adopted.

(iv) Concreteness: Concreteness means that while communicating clear, fixed and concrete

information should be used. Information that is not fixed should not be used, because decisions taken onthe basis of such information may prove to be wrong. If we have certain facts we can compare them withearlier information and deduce the correct results. To make communication concrete the following thingsare necessary:

a. Communication should include special facts.b. Communication should include statistics that already exist.c. The information available should be compared.

Communication should be clear. It can be sent to another person only when it put in concretelanguage.

(v) Clarity: In the modern world, clarity is extremely important for effective communication inbusiness. Clarity means that a message should be understood with a little effort. In communication clarityis used in the following way:

a) Use of short and easy words- For good communication it is important that simple and easylanguage is used. By the use of short words we mean that useless words should not be used.Use of frivolous words makes it difficult to communicate effectively. Because of this thesubordinates sometimes get the wrong meaning which makes it harmful for the business.Use of simple words means that difficult words should not be used as subordinates find themdifficult to understand sometimes. In communication technical and difficult words should notbe used. The vocabulary should be easy to understand.

b) Use of effective words and paragraphs- According to managers, in communication the use ofeffective words and paragraphs is necessary. While using words one should make sure thatwords are uniform and not out of place. Sentences should be small and clear. Different things

should be written in different paragraphs. Uniformity in sentences is necessary. Sentencesshould be joined. If a religious message is to be given then it should be kept away fromeconomic and social topics.


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(vi) Correctness: For effective communication the virtue of correctness is very important. Correctlanguage should be used to bring correctness in communication. Language is both formal and informal.Right language should be used at the right time. Language should be practical. Language should becorrect. Communication should be based on correct facts. The figures should be correct. They should bereliable and checked before quoting.

(vii) Courtesy: Courtesy in behavior leaves a god impression on others. In communication it is avery important principle. Through courtesy we give respect to others. Today, its practical nature isdifferent. Only Please and Thank you do not make the communication courteous.

For courteous communication the following points can be suggested:

a. You deserve respect.b. I respect you.c. Your fame is worth nothing.

Similarly, if something written or said cannot be understood then it is discourteous to say, I dontunderstand what you mean. Instead one should say, I could understand it because of my limited

knowledge. Kindly explain it to me again. I will be thankful to you.

One can use fun and humor in language but one should be careful not to use objectionablelanguage. Everybody should be respected equally. Caste or sex should not make any difference.

The above description reveals that the use of all the seven Cs is important and necessary foreffective communication. Some writers suggest that the use of the seven Cs is incomplete and oneshould add four other basic principles to them as well. These are conciseness, simplicity, strength andsincerity. If we look deep, the seven Cs are related to these four principles. The seven Cs are animproved and clear form of these. Their use is important for making communication effective.

Chapter 5

Theories of Communication

Introduction:

A message in the communication system links a person with another. It is not possible to tiecommunication in some limit. Messages are communicated on the basis of some set outlines. Theatmosphere, limitations and assumptions under which message is dispatched are known as theories ofcommunication. These have been propounded in different forms.


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Classification of theories of communication- Theories of communication are divided into twocategories:

1. Theories propounded to create socio-cultural backgrounds/ environments.2. Theories based on the ideas of different scholars.

1. Theories propounded to create socio-cultural environment

This includes communications which aim at creating and saving ideal values for universalcommunity within certain limits. Those theories are:

a) Communist Theory of CommunicationThis theory is based on principles of communism. After success of revolutionary process in 1917,

in the erstwhile USSR, this theory was put to use. This theory is based on the under mentioned principlesof communism:

i. The voice of laborers will be heard prominently, who were raising the voice against injusticeand crimes against them.

ii. Voices will be raised against the exploitation of man by man.iii. Role of public will be supreme in the construction of a strong nation.iv. Interest of the nation will remain supreme.The effect of this theory was widely felt. Lenins principles were followed not only in Soviet land,but in China and other countries as well. This was sufficiently strong theory. However, this

theory could not achieve popularity because of narrow and impractical ideas of communism.Division of Soviet Union was one of the reasons due to which this theory could not becomepopular universally.

b) Chinese Theory of CommunicationCommunism prevails in China too, but its philosophy is quite different. Therefore, its

communication policy is also different, and is known as Chinese Communication Policy. In this policy,instead of revolution, peace is the main theme of the whole communication policy. The ideas hidden inthis theory are respect, dedication and faithfulness towards the nation. Communication policy of China isbased on Indias principles of Panchsheel.

c) Christian Theory of CommunicationIn this communication theory, emphasis is placed on free thinking, personal freedom and

dedication towards almighty God. This theory is based on human sensitivity and service quality in a man.The theory serves as the foundation of communication system in the European countries. The theory ispopular among masses because it does not believe in obstacles. Moreover any new thing conducive tohuman welfare is communicated to the people. England ruled over many countries and so this travelled tothose countries too, wherever England has its rule. India too had adopted this theory. But due to peculiarsocio-cultural background in India the theory could not flourished.

d) Islamic Theory of CommunicationThis theory is based on Muslim conservative principles. Its main basis is Muslim religious book.

This theory follows rigid, fanatic lames as well as preaching of Mohammad Sahib. The theory is practicedmostly in Muslim Countries.

e) Conservative Theory of CommunicationThe name conservative is attached to this theory because one way communication is resorted

to on the pretext of religion and caste and restrictions are imposed on public. People cannot breathefreely as was the case in Afghanistan quite recently under Laden sponsored Government. Restriction isimposed on peoples movements, their education and their ways of living. When this theory fails, LiberalTheory sets in better informed countries like Nepal and Thailand.

f) Liberal Theory of Communication


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This is considered to be the best theory. Under this theory, full freedom is given to communicatemessages and ideas against government and society. There exists no check, control or regulation onmessages being communicated.

g) Vedic Theory of CommunicationThis theory is in practice since Vedic era and that is why it is known to be the oldest theory. This

communication system is based on Guru Disciple form of education system. There was verbalcommunication system in our country in early times. The theory considers Indian cultures and traditionsas the base of traditional values. These traditional values were crushed mercilessly under British rule inIndia.

2. Theories based on the ideas of different scholarsThe ideas of different scholars on communication process have been put forward in the form of

communication theories, some of which are explained below:a) Aristotles Theory of CommunicationThis theory was propounded by Aristotle. According to him if persuasive techniques are used, the

thinking process of the receiver can be changed. Under this theory there are three components of

communication. Sender, message and receiver. But of the three, sender is the most important. He canchange the thinking of the receiver. In other words, communication is one sided if persuasive techniquesare employed by the sender.

b) Lasswells Theory of CommunicationThis theory was presented by Lasswell and is considered as one sided theory. Alike Aristotle,

sender is important in this theory too. Lasswell laid emphasis on the channel of communication.According to this theory, the sender will bring a change in the thinking of the receiver by using appropriatechannel of communication.

c) Shammon and Weavers Theory of CommunicationShammon and Weaver presented a different theory of communication which brings into a wide

form over above mentioned two theories. According to them, after receiving the message it must be

encoded and then transmitted so that the receiver is in a position to understand the message, and cantransmit his feedback well in time. The idea behind encoding the message was to avoid the effect ofnoise. Thus a message is transmitted in full and pure form.

d) Schramm Theory of CommunicationSchramm presented a wide and reformed form of the theory as was given by Shammon and

Weaver. Schramm presented three models of this theory.i. Model 1:First model was more or less same as was presented by Shammon and Weaver. The difference

with that theory was that message does not contain the element of noise and the message too is notwrong and is not disorted.

ii. Model 2:In this model, Schramm suggested that sender should select a channel to transmit the message

in a way that receiver understands the message. Thus, he laid emphasis on receiver in this model too.iii. Model 3:


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In this model, Schramm considered the reaction of receiver, as an important aspect. Thusaccording to him, the components of communication are:

1. Sender2. Encoding process3. Decoding process4. Destination5. Response

e) Katz-Lazarsfeld Theory of CommunicationThe theory was mainly propounded for mass communication and therefore one can call it Mass

Communication Theory also. In the theory, after encoding the message, sender transmits the message bysome appropriate channel to an opinion leader. This leader finally relays it to the public. The theory hasthree components: Message, sender and the group leader.

f) Berlos Theory of CommunicationThis theory lays stress on perception. This theory says that sender encodes the message

(employing his skills and knowledge) and transmits the same using some suitable channel. How thereceiver receives the message, it depends upon his knowledge and perception of receiver.

g) Modern Theory of CommunicationCommunication process is being presented in the form of a circle in modern theory of

communication. According to this communication cycle, message is dispatched to receiver. The receiverexpresses his response after receiving the message which is in real sense is the feedback.

The different stages of this process are:i. Input: It means those ideas and information which the sender wants to dispatch.

ii. Message: The actual message which is transmitted.iii. Channel: This means medium i.e. letter, report, telephone, fax, conference, e-mails etc.iv. Output: the message which the receiver gets.v. Feedback: Receivers response after receiving the messages which may be positive or

negative.vi. Communication Loss: The message which was to be sent or already sent and received by

the receiver may be wrong in some way or the other. This is called communication loss. The obstacles incommunication process cause communication loss. These obstacles create problems in understandingthe message.


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Chapter6Corporate Communication

Introduction:Communication process plays an important role in the success of a business organization. There

is exchange of information in the organization through communication system. For example, messagesare transmitted from one person to another or from one place to another. The success of an institution oran organization depends to a large extent on the system of communication. Communication system isbased on the size of institution. When it is small, informal channel of communication prevails. However, ina large organization, where no. of persons employed is large communication system is formal. Channel ofcommunication in any institutions may be of two types:

1. Formal Communication

2. Informal CommunicationTypes of Communication Channels

Communication channels may be classified on the following basis in any business concern:A. On the basis of RelationsB. On the basis of InformationC. On the basis of Nature or ApproachD. On the basis of ScopeE. On the basis of Mediums

A. Types of Communication Channels on the basis of Relations-On the basis of relations the communication process may be classified into following two parts:1. Formal Communication2. Informal Communication

1) Formal CommunicationThis communication is amongst different employees of an organization due to pre-determined

relationships in an organization. This communication takes place among employees while carrying outtheir duties and responsibilities. The pattern of this communication is determined as per the determinedprocesses in the structure of organization. Formal communication takes place when every employee is ona pre-defined position or status. This communication is between two positions and not between persons.Officio-legal relations between officers and subordinates give birth to formal communication. Here,position of a person in organization, his rights and duties are all pre-determined. For example, if themanager of any firm communicates the message to his subordinate or assistant manager regarding thework to be done, then this relationship will be treated as formal. In other words, a subordinate is bound toaccept orders from his immediate boss. If he does not do so, disciplinary action can be initiated againsthim. In the authoritarian management system, it is one way process, while it is two way traffic inDemocratic management system. Officers pass on formal messages to their subordinates in form of

orders/directions, rules, policies etc. On the other hand, subordinates send reports and complaints etc. totheir bosses in formal way. All these communications pass from one person to another according to setnorms. Thus, when relations between sender and receiver are formal in nature, then the exchange ofinformation between them is called formal communication. Usually formal communication is in writtenform. These are communicated through annual reports and bulletins of an organization.

Characteristics of Formal CommunicationImportant characteristics of formal communication are as follows:1. Formal message is mostly in written form.


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2. Only prescribed and pre-determined informations are exchanged in this communication.3. Organizational hierarchy system is followed i.e. upward to downward or from down to up.4. The subject matter, chain of command and authority etc. are all pre-determined in this

communication.

Advantages of Formal Communication

Formal communication has under mentioned advantages:

1. Unity of CommandThe line executives are responsible for getting work done by their subordinates. Thus, it isnecessary that he must be in full knowledge of all the orders/directions given to hissubordinates. The status of person remains intact and he has full command on hissubordinates.

2. Sound and proper communicationUtility of message is maintained in this system of communication and there is co-ordinationbetween the orders. The language of message and its explanation can be moulded as perthe understanding of employee in this communication.

3. Definite and deliberate communicationFormal communication follows a prescribed path and achieves its goal definitely. Its reaction

can be presumed well in advance with clarity of purpose.4. Controllable Communication

Managers have full control on the direction, nature and speed of the communication in thisform of communication. These messages were taken in all seriousness because one cannotrefuse their authenticity.

Disadvantages of Formal CommunicationThe following are the disadvantages of formal communication-1. Distortion of Information

The information passes through many hands causing distortion of communication. It is due totwo reasons:

a. At every level of organizational hierarchy, the informations to be sent go on increasing withthe result that these are to be cut short by managers so as to summarize them.

b. Normally, every manager passes only that information further which he deems proper andappropriate at different times.

2. Delay and filtering of InformationIn formal communication, informations have to traverse through many hands. It consumes alot of time to send a message to the concerned person. Moreover, original information getsaffected by perception of sender thus causing filtering of information.

3. Formal ActionMessage moves forward or backward as per the structure of the organization. Therefore,normalcy does not prevail in the communication system. Concerned persons do not evincethe right interest causing delay and red-tapism in the system.

4. Increase in the work load of higher managersThe work load of officers mounts up because, along with their normal duties of work, theyhave to exchange that information to with which they are not related directly.

2) Informal CommunicationWhen there is informal relationship between sender and receiver, then the communication

between them is called informal communication. It is not necessary that such a communication should bein written form. The source of informal communication is neither the responsibility of the organization, norit is the limitation of organization. Informal communication is quite reverse in nature to formalcommunication. The creation of informal communication takes place on many factors like social andpersonal relations, sentiments, religion, area, language, caste, customs, preferences etc. These relationsare not tied to any norm, law or policy. Neither are they based on some formal organizational structure.Informal relations cannot be demonstrated even by charts. Therefore, such informal relationships emerge


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itself which break or grow due to degree of personal or social contacts. Thus, when sender and receiverare related to each other in informal way, then the exchange of messages, information, feelings, jokes,rumors, clarification and forecasting among them is called informal communication. Body language is alsoused in informal communication like to show anger, to smile, to remain silent, to move head etc.

Characteristics of Informal CommunicationInformal communication has following characteristics:1. This system of communication is normally the exchange of verbal talks in which sender and

receiver face each other personally.2. This communication consists of rumors and misconceptions. If a manager has expressed

some personal opinion, it will be deemed as would be order in the times to come.3. Informal communication spreads among people like wild fire. It creates sensation because

every person narrates the information as per his own understanding.4. This communication follows no set pattern; rather the news passes through different ways,

because it depends on nearness of contacts and not on status of persons in the organization.

Advantages of Informal Communication1. Fast and Flexible Communication-

It is most flexible channel of communication because there is no formal line communication.Moreover communication travels quickly in this form of communication from one person toanother.

2. Fast Feedback-Informal communication acquaints the managers regarding the personal opinions of differentworkers on some issue. Consequently, they evaluate their own policies themselves and findout the morale of the workers. They are in a position to frame policies for future by collectinginformations in this way.

3. Mutual Co-operation-Informal communication helps in fostering mutual cooperation between sender and receiver.Messages are understood in right spirit and action which is desired, are taken at right time.

Disadvantages of Informal Communication

1. Spreads misunderstandings-The news and information spread in informal communication is not based on facts and thus itis far from truth. There may be many reasons behind it like sense of security, the need tocreate specific opinion, carelessness etc. Therefore, exact and full information does not reachthe concerned person in this communication. Often misunderstanding emerges in theorganization. Such a situation is exploited by outside elements.

2. Unorganized Communication-If informal communication is resorted to, through public information system, then there islurking fear regarding the message reaching the right person in right form or not. Moreover,there is apprehension in this communication that concerned manager does not know aboutthe reaction of some order which come to his departments employees not through him, butby grapevine i.e. informal system of communication. In other words, this is brought out bysome employees from top managers on account of their personal contacts with higher

authorities.3. Difficult to Control-This form of communication is difficult to control because it has no beginning or end. Its flowand direction cannot be checked.

B. Types of communication on the basis of flow of communicationCommunication process may be classified into following three parts on the basis of flow of

information-1. Vertical Communication


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Communication system is very important in any business because managers issue policy-guidelines from time to time; which are to be obeyed by the employees. Even the employee resort tocommunication channels to send their reports and complaints to higher authorities. When managers issuepolicy-guidelines to their subordinates, then it is called DOWNWARD communication and whenemployees send their complaints and suggestions to their bosses, then this way of communication isgiven the name UPWARD communication.

a. Downward CommunicationWhen message is forward

theory of business comm

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