Business Communication (BMB – 107)

Unit – 1 (Notes):

Introduction:

“Communication is an art / expression.”

Communication is a part and parcel of everyday life. The word communication originates from
the Latin word “communis”, which means “common” and the word “business” stands for any
economic activity which is undertaken with a view to earn profit and the communication
undertaken in the process of this activity is termed as business communication.

Defining and Classifying Communication:

Definitions:

Communication is a process of passing information and understanding from one person to

another. - Keith Devis

Communication is generally defined as the activity of conveying information. Communication

has been derived from the Latin word "communis", meaning to share. - Wikipedia

Communication is something people do. To understand human communication process, one

must understand how people relate to each other. - Wilbur Schramm

Meaning:

Communication is defined as “The flow of material information perception, understanding and

imagination among various parties”. Business includes those organizations, which are engaged
in the production and distribution of goods and services to earn profit. Therefore, Business
communication means, “Flow of information, perception etc. either within a business
organization or outside the organization among different parties”.

“Business Communication is a process of transmitting messages and/or information to persons

which are associated with business.” – C.G. Brown
Objectives / Purpose / Functions of Communication: -

The main objectives or functions or purpose of business communication are interrelated and
given below.

This can be divided into “Internal” & “External” -

[Link] Objectives:

a. Information to Management

b. Information to employees

c. Co-ordination

d. Communication helps in improving the morale of the employees, because they are made
aware of their role in business firm.

e. Means to achieve business goals through informing, connecting, educating, stimulating,

persuading, reassuring and integrating.

f. Helps to accomplish results

g. To provide needed decision support

2. External Objectives: - Business communication helps in linking the business firm with
outsiders. Some of the important external functions are: -

a. Sale of good and services

b. Relation with suppliers

c. Information to other parties

d. To enable organization to become dynamic

e. To face emerging challenges

f. To provide advice

g. To educate and train customer

Nature of Communication:

“It is communication which gets the world going.”

The transmission of any meaningful message is communication. It is as natural a phenomenon

as existence itself. Whether we recognize it or not, we have no option but to communicate.
Then we here stand for all things living. A baby cries to convey its hunger. A dog barks to warn
his master of an intruder. Corporate organizations which, after all, consist of the human
element, use information- based systems like Management Information System (MIS),
Decision Support System (DSS) and Strategic Information System (SIS) to run businesses
successfully.

This is what communication is all about. Communication is an integral part of human existence.

Communication contributes enormously to the success or failure of every human activity.

Communication is essentially the ability of one person to make contact with another and to
make himself understood.

Since man is a social animal, it is vital that he express his feelings and emotions, receive and
exchange information. It is here that communication comes into play.

In case of organizations, it becomes even more important as people working in different

departments have to achieve common objectives. The working of inter-personal relationships
is possible only through communication.

Apart from binding its various components internally, communication is what links an
organisation with the external world. Thus, communication is regarded as the foundation of a
successful organisation. No group can exist without communication.

Communication has a significant impact on the ultimate potency of an organisation. It is only

through communication that ideas, information, attitudes or emotions get conveyed from one
person to another. At the individual level also, effective communication skills are responsible
for success. According to a survey of America’s most successful managers by a leading
American magazine, Fortune, excellent communication skill was one of the prime determinants
of success.

A business Organization is a group of people associated to earn profit. Various kinds of

activities have to be performed by the people of an organization so as to earn profit. Business
Communication is known as backbone of any organization thus various activities in business
need an effective and systematic communication.

Without efficient communication, one cannot even imagine to do work and hence will be
unable to earn profit. Since the aim of business organization is to earn profit, the organization
will die without profit and this death is a result of the absence of communication. This is why
communication is called life blood of a business organization. We can prove this statement
more clearly through following points.

Gain clarity over - WHO? WHERE? WHAT? HOW MUCH? FORM, CHANNEL, PERIOD
and WHAT WAS IT?

Communication involves plurality of persons

Existence of message is essential which may be the orders, instructions or information about
the managerial plans, policies, programmes

It’s a two way and continuous process

Its primary purpose is to motivate a response

Communication may be formal controllable or informal uncontrollable

It can be in vertical, horizontal or diagonal

Role of Communication in Modern Business Organisations:

1. Foundation of Organisational Success:

Communication acts as the lifeline of business organisations. It ensures that information, ideas,
and decisions flow smoothly across different levels and departments, aligning employees with
organisational goals.

2. Facilitates Coordination and Collaboration:

Modern organisations function in teams, often spread across geographies. Effective

communication—through emails, video conferencing, project management tools and instant
messaging—enables smooth collaboration.

3. Enhances Decision-Making:
Managers rely on accurate and timely communication for informed decision-making.
Transparent communication channels provide access to data, feedback and expert opinions,
reducing the risks of errors and delays.

4. Strengthens Leadership and Motivation:

Leaders inspire, guide and motivate teams through their communication style. Clear,
empathetic and persuasive communication builds trust, boosts morale and fosters a positive
work culture.

5. Improves Customer Relations:

Customer service and brand image are shaped by how effectively an organisation
communicates with its clients. In the digital era, multi-channel communication (emails, social
media, chatbots, call centres) ensures responsiveness and customer satisfaction.

6. Drives Change Management:

Business environments are dynamic. Clear communication is critical during restructuring,

adopting new technology or implementing policy changes. It reduces resistance, builds
acceptance and ensures smooth transitions.

7. Enhances Employee Engagement:

Open and two-way communication encourages employees to share ideas, voice concerns and
contribute proactively. This improves job satisfaction, retention and innovation.

8. Builds Organisational Image and Reputation:

Public relations, corporate communication and branding efforts rely on strategic

communication. Consistent and transparent messages help build credibility and trust with
stakeholders.

9. Facilitates Knowledge Sharing and Innovation:

Modern businesses thrive on creativity. Knowledge-sharing platforms, brainstorming sessions

and digital communication tools enable cross-functional learning and innovative problem-
solving.

10. Supports Globalisation:

With businesses operating globally, intercultural communication skills have become essential.
Effective communication bridges cultural, linguistic and time-zone barriers in international
business.

In modern business organisations, communication is no longer limited to conveying

instructions—it is a strategic tool that drives efficiency, builds relationships, fosters innovation
and ensures adaptability in a rapidly changing world. Without effective communication, even
the most advanced business models cannot sustain success.

Significance of Communication:

Communication is neither the transmission of a message nor the message itself. It is the mutual
exchange of understanding, originating with the receiver. Communication needs to be effective
in business. Communication is the essence of management. The basic functions of management
(Planning, Organizing, Staffing, Directing and Controlling) cannot be performed well without
effective communication.

Business communication involves constant flow of information. Feedback is integral part of

business communication. Organizations these days are very large and involve large number of
people. There are various levels of hierarchy in an organization. Greater the number of levels,
the more difficult is the job of managing the organization.

Communication here plays a very important role in process of directing and controlling the
people in the organization. Immediate feedback can be obtained and misunderstandings if any
can be avoided. There should be effective communication between superiors and subordinated
in an organization, between organization and society at large (for example between
management and trade unions). It is essential for success and growth of an organization.
Communication gaps should not occur in any organization.

Business Communication is goal oriented. The rules, regulations and policies of a company
have to be communicated to people within and outside the organization.

Business Communication is regulated by certain rules and norms. In early times, business
communication was limited to paper-work, telephone calls etc. But now with advent of
technology, we have cell phones, video conferencing, emails, satellite communication to
support business communication. Effective business communication helps in building goodwill
of an organization.
“Effective Communication is as crucial to business organisation as soul to the body.”

Forms or Channels or Types of Communication:

The basic forms of communication may be described as under:

(a) On the ground of Media: Verbal and Nonverbal Communication

(b) On the ground of Direction: Vertical, Horizontal and Diagonal
(c) On the ground of Relationship: Formal and Informal Communication

On the ground of Media: Verbal and Nonverbal Communication

Verbal Communication: Oral / Spoken and Written

Oral Communication:

An oral communication can be formal or informal. Generally, business communication is a

formal means of communication, like: meetings, interviews, group discussion, speeches etc.
An example of Informal business communication would be – Grapevine.

Advantages of Oral Communication:

1. There is high level of understanding and transparency in oral communication as it is

interpersonal.

2. There is no element of rigidity in oral communication. There is flexibility for allowing

changes in the decisions previously taken.

3. The feedback is spontaneous in case of oral communication. Thus, decisions can be made
quickly without any delay.

4. Oral communication is not only time saving, but it also saves upon money and efforts.

5. Oral communication is best in case of problem resolution. The conflicts, disputes and many
issues / differences can be put to an end by talking them over.

6. Oral communication is an essential for teamwork and group energy.

7. Oral communication promotes a receptive and encouraging morale among organizational

employees.

8. Oral communication can be best used to transfer private and confidential information/matter.
Disadvantages / Limitations of Oral Communication:

1. Relying only on oral communication may not be sufficient as business communication is

formal and very organized.

2. Oral communication is less authentic than written communication as they are informal and
not as organized as written communication.

3. Oral communication is time-saving as far as daily interactions are concerned, but in case of
meetings, long speeches consume lot of time and are unproductive at times.

4. Oral communications are not easy to maintain and thus they are unsteady.

5. There may be misunderstandings as the information is not complete and may lack essentials.

6. It requires attentiveness and great receptivity on part of the receivers/audience.

7. Oral communication (such as speeches) is not frequently used as legal records except in
investigation work.

Written Communication:

“Reading make the full man, writing an exact man, conference a ready man”.

Business communication is both written as well as oral. But written communication is very
important aspect of business communication. When exchange of opinion is in written form,
rather than by spoken words it is written communication. It is important to fix accountability
and responsibility of people in organization. This requires much of paper work as it becomes
the permanent means of communication. It helps in building goodwill of an organization.

Written business communication includes-letter, memoranda, agenda, manual reports etc.

The decisions of the management concerned with objectives policies, programs, procedures,
budgets etc. are normally expressed in writing.

Written communication is recommended when evidence of events and proceedings are

requiring to be kept for future references & when many persons are to be contacted at the same
time.

Every place of written communication requires use of human memory, imaginative power.
Ability to observe and think & mastery over language.
 When writing message, it would be wise to adopt the K.I.S.S. principle which means “kept
it short and simple.” To make the earning clear so that it accomplishes the desired purpose.

To imagine life without water or social life without oral communication is impossible.
Similarly, to think of a business or an organization without written communication is
impossible.

Advantages of Written Communication: -

1. It helps to provide ready records, reference etc.

2. It helps to build legal defences.

3. Promotes uniformity in policy and procedure.

4. Gives access to a large audience through mass mailings.

5. Written communication is accurate and unambiguous.

6. Communication when done in writing provides a sense of security for the lower staff
specially.

7. It gives sufficient time to think over and reply on a concerned subject.

8. Helps in clear guidelines which are easily followed.

9. Permanent & well-maintained records & reference can lead to growth.

10. Evidence of proof against anything.

Disadvantages of Written Communication: -

1. It becomes difficult to maintain piles of records and can be easily destroyed if not properly
handed.

2. It proves to be ineffective in the hands of those people who are poor in expressions but
otherwise good in their job.

3. Immediate feedback is not obtained in the written communication as in the case of face-to-
face Communication

4. It is a costly process. It involves large amount of stationery and people.

5. Immediate clarification, interjection is not possible in written communication.

6. It brings unnecessary forma tone in relations because there is no personal touch.

7. There is no secrecy.

8. Loss of man-hours in dictation, records maintaining, dispatching etc.

Types of Written Communication: -

Reports, Magazines, Circulars, Manuals, Memoranda, Newspapers, Agreements, pictures,

diagrams, graph, order, rules and Regulations Book, Manuals, Notice Boards, Telegram etc.

Importance of Written Business Communication:

1. Important for any organization or individual for giving or seeking information.

2. The success or failure an organization depends to a large extent on its correspondence.

3. It helps to achieve clarity in the policies & procedures to be followed in an organization.

4. Information’s are clearly transmitted to the receiver, thus making communication effective.

5. It helps in the proper functioning as the instruction’s messages are clear.

6. It helps the customers to form a strong impression about the company if the letters are
efficiently drafted.

7. It is a strong linking device between the organization and its customers.

8. A steady progress is surely based on effective written business communication.

Thus, we can sum up by saying that written business communication plays an essential &
effective role in the growth & progress of an organization.

Written means of business communication includes – agenda, reports, manuals etc.

Non - Verbal Communication:

It is communication of feelings, emotions, attitudes and thoughts through body movements /

gestures / eye contact etc. The components of Non-Verbal Communication are:

Kinesics: The science of Body Language is known as Kinesics. It is the study of facial
expressions, postures & gestures.

Oculesics: It is the study of the role of eye contact in non-verbal communication.

Haptics: It is the study of touching.

Proxemics: It is the study of measurable distance between people as they interact.

Chronemics: It is the study of use of time in non-verbal communication.

Paralinguistics: It is the study of variations in pitch, speed, volume and pauses to convey
meaning. Interestingly, when the speaker is making a presentation and is looking for a response,
he will pause. However, when no response is desired, he will talk faster with minimal pause.

Physical Appearance: Your physical appearance always contributes towards how people
perceive you. Neatly combed hair, ironed clothes and a lively smile will always carry more
weight than words. Remember, “what we say” is less important than “how we say it” as words
are only 7% of our communication.

On the ground of Direction: Vertical, Horizontal and Diagonal

1. Vertical Communication: It may be classified into two types:

(a) Downward
(b) Upward

Downward Communication:

Communication that flows from a higher level in an organization to a lower level is a downward
communication. In other words, communication from superiors to subordinates in a chain of
command is a downward communication. This communication flow is used by the managers
to transmit work-related information to the employees at lower levels.

Upward Communication:

Communication that flows to a higher level in an organization is called upward communication.

It provides feedback on how well the organization is functioning. The subordinates use upward
communication to convey their problems and performances to their superiors.

Horizontal / Lateral Communication:

Communication that takes place at same levels of hierarchy in an organization is called lateral
communication, i.e., communication between peers, between managers at same levels or
between any horizontally equivalent organizational member.

Diagonal / Crosswire Communication: Communication that takes place between a manager

and employees of other workgroups is called diagonal communication. It generally does not
appear on organizational chart. For instance – To design a training module a training manager
interacts with Operations personnel to enquire about the way they perform their task.

On the ground of Relationship: Formal and Informal Communication

Formal Communication:

This communication is usually between functioning managers or other officers in the same
organisation. It includes official decisions, memorandums, circulars etc.

Informal Communication:

When a person comes on his work in an organisation he talks to his friends about his household,
family matters, films and matters related to other colleagues in the organisation. These are all
personal talks. Thus, most of the communications are informal communications, which do not
follow any established path or planned system. These are free of all formalities. This is also
called rumours or grapevine.

Grapevine:

Though grapevine provides innumerable utilities to the organization, still it is not free from
defects. Therefore, managers should try to use grapevine in a way so that the organization can
take the highest benefits from it.

Grapevine is a form of informal communication, operates both in internal and external informal
channels which can contribute to and benefit the organization. Therefore, it is found in all
organizations. It does not follow any prescribed or predetermined rule and spreads any
information quickly. Through the grapevine, information flows in different directions linking
almost every one of an organization. It is governed by social and personal relationships rather
than officially recognized rules and formalities. Grapevine operates both in internal and
external informal channels. It passes opinions, suspicions and rumours that generally do not
move through formal channels. By nature, the grapevine is a channel of horizontal
communication. However, in fact, it does not follow any set pattern. It effectively operates
horizontally, vertically and even diagonally. Grapevine is a natural outgrowth person-to-person
informal communication channel through which information flows horizontally, vertically or
diagonally without following any set rule or regulation among the people within or outside the
organization.
5 Ways to make Grapevine Beneficiary to Organization:

Grapevine in Business Communication -

• Providing real news to the grapevine initiators

• Considering grapevine as a pulse feeling tool
• Contradicting the false rumour
• Allowing workers in the decision-making process
• Developing a good organizational climate

Providing real news to the grapevine initiators -

Managers should identify the people who take an active part in grapevine channels and provide
them with real news so that they can transmit real facts to the grapevine channels. This will
eventually, resist transmission of rumour, untrue and distorted messages.

Considering grapevine as a pulse feeling tool -

Since grapevine is an important source of receiving feedback, managers should use it as a tool
for feeling the pulse of the employees.

Contradicting the false rumour -

If any false rumour occurs in the organization, management should immediately contradict and
protest the rumour through formal channels. As a result, the feeding of false rumours will
decrease.

Allowing workers in the decision-making process –

If the workers are allowed to take part in the decision-making process, they will be well
informed of the facts. In such a situation, there will be nothing to suspect and to create a false
rumour.

Developing good organizational climate -

Good organizational climate impels the employees to develop a sense of belongingness, to

maintain status, chain of command and self-respect and to enhance satisfaction. All these will
facilitate the occurrence of grapevine in the most desired and effective way.
At last, we can say that though the organization cannot hire and fire the grapevine, it can ensure
an environment, where people can practice grapevine in the most desired and effective way.

4 Patterns or Types of Grapevines:

The grapevine communication is usually horizontal in nature. But it can be horizontal, vertical
and diagonal. Prof. Keith Davis has classified grapevine into 4 types:

1. Single Strand Chain

2. Gossip Chain
3. Probability Chain
4. Cluster Chain
Comparison Chart: Formal vs Informal Communication
Media of Communication:
There are certain important factors which should be considered while choosing the means of
communication. Communication is possible through a vast variety of media. The media
available can be broadly classified into five groups:

1. Written Communication
2. Oral Communication
3. Visual Communication
4. Audio-Visual Communication
5. Computer based Communication

Written Communication includes letters, circulars, memos, telegrams, reports, forms,

questionnaires etc. Everything that has to be written and transmitted in the written form falls
in the area of written communication.

Oral Communication includes face to face conversation, conversation over the telephone,
radio broadcasts, interviews, GD, meetings, conferences, seminars etc.

Visual Communication encompasses gestures and facial expressions, tables and charts,
graphs, diagrams, posters, slides etc.

Audio-Visual Communication encompasses television and cinema films that combine the
visual impact with narration.

Computer based communication includes E-mail, voice mail, cellular phones, fax etc.

Process of Communication:

Communication is a two-way traffic or process wherein the message in the form of ideas,
thoughts, feelings, opinions is transmitted between two or more persons with the intent of
creating a shared understanding.

Simply, an act of conveying intended information and understanding from one person to
another is called as communication. The term communication is derived from the Latin word
“Communis” which means to share. Effective communication is when the message conveyed
by the sender is understood by the receiver in exactly the same way as it was intended.
 Diagram – Communication Process

The communication is a dynamic process that begins with the conceptualizing of ideas by the
sender who then transmits the message through a channel to the receiver, who in turn gives the
feedback in the form of some message or signal within the given time frame. Thus, there are
seven major elements of communication process which are:

1. Sender: The sender or the communicator is the person who initiates the conversation and
has conceptualized the idea that he intends to convey it to others.

2. Encoding: The sender begins with the encoding process wherein he uses certain words or
non-verbal methods such as symbols, signs, body gestures, etc. to translate the information into
a message. The sender’s knowledge, skills, perception, background, competencies, etc. has a
great impact on the success of the message.

3. Message: Once the encoding is finished, the sender gets the message that he intends to
convey. The message can be written, oral, symbolic or nonverbal such as body gestures, silence,
sounds etc. or any other signal that triggers the response of a receiver.

4. Communication Channel: The Sender chooses the medium through which he wants to
convey his message to the recipient. It must be selected carefully in order to make the message
effective and correctly interpreted by the recipient. The choice of medium depends on the
interpersonal relationships between the sender and the receiver and also on the urgency of the
message being sent. Oral, virtual, written, sound, gesture, etc. are some of the commonly used
communication mediums.

5. Receiver: The receiver is the person for whom the message is intended or targeted. He tries
to comprehend it in the best possible manner such that the communication objective is attained.
The degree to which the receiver decodes the message depends on his knowledge of the subject
matter, experience, trust and relationship with the sender.

6. Decoding: Here, the receiver interprets the sender’s message and tries to understand it in the
best possible manner. An effective communication occurs only if the receiver understands the
message in exactly the same way as it was intended by the sender.

7. Feedback: The Feedback is the final step of the process that ensures the receiver has received
the message and interpreted it correctly as it was intended by the sender. It increases the
effectiveness of the communication as it permits the sender to know the efficacy of his message.
The response of the receiver can be verbal or non-verbal.

Note: The Noise shows the barriers in communications. There are chances when the

message sent by the sender is not received by the recipient.

Characteristics of successful Communication / 7C’s of Communication:

Francis j. Bergin advocates that there are seven Cs to remember in verbal communication. They
are:

• Candid
• Clarity
• Concise
• Concrete
• Correct
• Complete
• Courtesy

Candidness:
In all business transactions, our view of a matter should be honest and sincere. We should speak
and listen without bias. Our guiding principle should be fairness to self and to others involved
in the situation.

Clarity:

The primary character of any spoken or written form of transmission of information should be
to state the message clearly. There are several ways to do it. For example, the sentences should
be short and simple. We should prefer the active voice over the passive voice. If we have to
convey several messages then it is convenient to state it in separate bulleted points. We should
use accurate and familiar words. Thoughts should be clear and well organised. It is a clear mind
that can talk clearly and effectively.

Conciseness:

Time is an essential parameter in communications. The normal attention span is just a few
minutes long. If you present your message in a clear and beautiful manner which is very long,
the crux of the report or the message may be lost altogether. Long and lengthy communique is
boring and avoided by most. So, to summarize this point, effective communication has to be
concise. We should avoid being repetitive.

Concreteness:

It means being specific, definite in describing events and things. It also means the vivid
description of an event or state.

Correctness:

In the spoken form of communication, grammatical errors are not uncommon. The speaker
tends to forget the number and person of the subject of the verb if the sentence is too long.

Completeness:

In conversation or oral presentations, one can miss some parts of the communication. It is,
therefore, essential that oral presentations, discussions or dialogues should be as far as possible,
planned and structured.

Courtesy:

We know that all business communications should have some degree of formal flavour and
proper decorum. The presenter should try his best to be honest, respectful, considerate, open
and polite with the receiver of the information. The message when supplemented with proper
care and kindness will definitely find an audience. A rude presenter will have no audience even
if the message he delivers is perfectly effective and important. Offensive words can put off
certain factions of people. You should take ample care to not be racist or misogynist or any
other bad influence on the audience. Even while using humour, you should be very careful that
you are not being inconsiderate or cruel to anyone.

Importance of Communication in Management:

“Communication is the lifeblood of any organisation,”

1. 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.

2. Smooth and Efficient Working of an Organisation:

In the words of George R. Terry, “It serves as the lubricant, fostering for the smooth operations
of management process.” 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.

3. 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.

4. 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 and responsibility and evaluates performance of subordinates.

5. 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.

6. 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 toman relationship in leadership. It brings the
manager (leader) and the subordinates (led) in close contact with each other and helps in
establishing effective leadership.

7. Motivation and Morale:

Communication is the means by which the behaviour of the subordinates is modified and
change is affected 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.

8. 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.

9. Effective Control:

Communication acts as a tool of effective control. The plans have to be communicated to the
subordinates; the actual performance has to be measured and communicated to the top
management and a corrective action has to be taken or communicated so as to achieve the
desired goals. All this may not be possible without an efficient system of communication.

10. 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

11. 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.

Barriers to Communication:

No matter how good the communication system in an organization is, unfortunately barriers
can and do often occur. The process of communication has multiple barriers. The intended
communique will often be disturbed and distorted leading to a condition of misunderstanding
and failure of communication. The Barriers to effective communication could be of many types
like linguistic, psychological, emotional, physical, cultural etc. We will see all of these types
in detail below:

Linguistic Barriers:

The language barrier is one of the main barriers that limit effective communication. Language
is the most commonly employed tool of communication. The fact that each major region has
its own language is one of the Barriers to effective communication. Sometimes even a thick
dialect may render the communication ineffective.

As per some estimates, the dialects of every two regions change within a few kilometres. Even
in the same workplace, different employees will have different linguistic skills. As a result, the
communication channels that span across the organization would be affected by this.

Thus, keeping this barrier in mind, different considerations have to be made for different
employees. Some of them are very proficient in a certain language and others will be ok with
these languages.
Psychological Barriers:

There are various mental and psychological issues that may be barriers to effective
communication. Some people have stage fear, speech disorders, phobia, depression etc. All of
these conditions are very difficult to manage sometimes and will most certainly limit the ease
of communication.

Emotional Barriers:

The emotional IQ of a person determines the ease and comfort with which they can
communicate. A person who is emotionally mature will be able to communicate effectively. On
the other hand, people who let their emotions take over will face certain difficulties.

A perfect mixture of emotions and facts is necessary for effective communication. Emotions
like anger, frustration, humour, can blur the decision-making capacities of a person and thus
limit the effectiveness of their communication.

Physical Barriers:

They are the most obvious barriers to effective communication. These barriers are mostly easily
removable in principle at least. They include barriers like noise, closed doors, faulty equipment
used for communication, closed cabins, etc. Sometimes, in a large office, the physical
separation between various employees combined with faulty equipment may result in severe
barriers to effective communication.

Cultural Barriers:

As the world is getting more and more globalized, any large office may have people from
several parts of the world. Different cultures have a different meaning for several basic values
of society. Dressing, Religions or lack of them, food, drinks, pets and the general behaviour
will change drastically from one culture to another. Hence it is a must that we must take these
different cultures into account while communication. This is what we call being culturally
appropriate. In many multinational companies, special courses are offered at the orientation
stages that let people know about other cultures and how to be courteous and tolerant of others.
Organisational Structure Barriers:

As we saw there are many methods of communication at an organizational level. Each of these
methods has its own problems and constraints that may become barriers to effective
communication. Most of these barriers arise because of misinformation or lack of appropriate
transparency available to the employees.

Attitude Barriers:

Certain people like to be left alone. They are the introverts or just people who are not very
social. Others like to be social or sometimes extra clingy! Both these cases could become a
barrier to communication. Some people have attitude issues, like huge ego and inconsiderate
behaviours.

Perceptual Barriers:

Different people perceive the same things differently. This is a fact which we must consider
during the communication process. Knowledge of the perception levels of the audience is
crucial to effective communication. All the messages or communique must be easy and clear.
There shouldn’t be any room for a diversified interpretational set.

Physiological Barriers:

Certain disorders or diseases or other limitations could also prevent effective communication
between the various channels of an organization. The shrillness of voice, dyslexia, etc are some
examples of physiological barriers to effective communication. However, these are not crucial
because they can easily be compensated and removed.

Technological Barriers:

Other barriers include the technological barriers. The technology is developing fast and as a
result, it becomes difficult to keep up with the newest developments. Hence sometimes the
technological advance may become a barrier. In addition to this, the cost of technology is
sometimes very high. Most of the organizations will not be able to afford a decent tech for the
purpose of communication. Hence, this becomes a very crucial barrier.

How to overcome communication barriers –

Shortening the line of communication

Use of simple and meaningful language

Developing patience to listen & understand others

 Keeping it short

Giving due importance to gesture & tone

Utilizing the feedback

Developing mutual trust

Co-ordination

By communicating so as to express & not to impress

By having a personal touch in communication etc.

Communication in Crisis:

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

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

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

Need for Crisis Communication:

Crisis can have a negative effect on brand image. Crisis Communication experts
are employed to save an organization’s reputation against various threats and unwanted
challenges. Brand identity is one of the most valuable assets of an organization. The main
purpose of Crisis Communication team is to protect the brand identity and maintain the
organization’s firm standing within the industry. Crisis Communication specialists strive hard
to overcome tough situations and help the organization come out of difficult situations in the
best possible and quickest way.
Crisis Communication Process:

Employees should not ignore any of the external parties and important clients. Come out, meet
them and discuss the problem with them. There is nothing to be ashamed of. If needed,
seek their help. Media must not be ignored. Answer their questions.

Don’t criticize individuals. Show a feeling of care and concern for them. Share their feelings
and encourage them not to lose hope. Encourage them to deliver their level best. Put yourself
in their place. Respect them and avoid playing blame games.

Effective communication must be encouraged at the workplace during emergency situations.

Employees should have an easy access to superior’s cabins to discuss critical issues
with them and reach to a mutually acceptable solution.

Information must flow across all departments in its desired form. One should not rely on
mere guess works or assumptions during crisis. Make sure the information you have is
accurate.

Crisis communication specialists must learn to take quick decisions. Remember one
needs to respond quickly and effectively during unstable situations. Think out of the
box and devise alternate plans for the smooth functioning of organization.

Make sure information is kept confidential. Serious action must be taken against
employees sharing information and data with external parties. Such things are considered
highly unprofessional and unethical and spoil the reputation of the organization.

The superiors must evaluate performance of employees on a regular basis. Ask for feedbacks
and reports to know what they are up to. Conduct surprise audits to track performance of
employees.

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

maintain their reputation and position in the market.
Communication Structure in Organisation:

Communication network refers to a combination of sender and receiver in their role

of transmission of message. Communication networks make the communication interesting,
quicken the flow of information and increases the effectiveness of communication. Depending
upon the nature of message, urgency, organizational culture and size of the organization,
different communication networks can be used. Basically, there are five types of
communication network as follows:

Wheel Network:

It is a pattern of communication network in which a single person as pivotal, supplies message

to other members. It is centralized communication network. Here, the group idea
is probably the main source of communication.
In the above diagram, 1 (manager) is the main source of information and he passes the
information to the other group members, 2, 3, 4 and 5. In this type of network, only the
manager communicates to subordinates but subordinates are not allowed to communicate
with others i.e. member 2 cannot communicate with 3 and others.

Y Network:

It is the pattern of communication network in which top leaders or managers communicate to

the person closed to them. Then the message is communicated in downward direction
in hierarchy.

Chain Network:

It is a pattern of communication network, in which a person can communicate with immediate

superior and subordinate in hierarchy. In the diagram, 1 can communicate with 2, 2 with 3 and
3 with 4 in downward communication where information can flow from bottom to top and top
to bottom. It is more suitable when authority and responsibility are clearly defined among the
group or team members.

Circle Network:

It is a pattern of communication network in which message is communicated in circle, i.e., each

person can pass the information to his / her adjoining two persons right or left. For example, in
above diagram, 2 can communicate information to 3 and 1 and similarly 3 can pass to 2 and 4
but cannot pass the information to 3 or 4.

All Channel Network:

It is one of the most decentralized types of communication network, in which all the members
of group or team share their ideas, views and suggestion to all the members without any
restriction. Here, each of the member has right to communicate with any other person in the
group without any restriction and boundaries.