COMMUNICATION

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Q.1) What do you understand by Communication? Explain important features of

Communication. [10 marks}

Answer:
Communication is an indispensable activity in all organizations. No organization can think of
its existence without effective communication. Communication is a managerial skill that is
essential for effectively leading and motivating people at work. The term ‘communication’ is
derived from the Latin word ‘communis’ which means common. Therefore, communication
is defined as an exchange of facts, ideas, opinions, or emotions to create mutual
understanding. According to Koontz and O’Donnell, “Communication is an intercourse by
words, letters, symbols or message, and is a way that one organization member shares
meaning and understanding with another”.
A manager who is in a position to communicate well will be able to get the cooperation of
subordinates towards the objective of the organization. The success of the manager then
depends on how clear she is in her mind about her basic functions and how effectively she
can transfer this clarity of thought to others. Hence, effective communication is the
foundation of sound management.

Below are the important features of effective communication-

1. At least two persons: Communication requires at least two persons- one who sends the
message and the second who receives the message.
2. Mutual understanding: The basic purpose of communication is to create an
understanding in the mind of the receiver of a message. Understanding is an essential part
of communication but it does not imply agreement.
3. Continuous Process: Communication is an ongoing process. Just as regular circulation of
blood is essential for human life, the same way regular flow of information and ideas is
essential for an organization.
4. Two-way Traffic: The process of communication is not completed until the message has
been understood by the receiver. To ensure that the receiver has understood the
message, there should be some sort of feedback.
5. Communication may take several forms, e.g., order, instruction, report, suggestion,
grievance, observation, etc. The message may be conveyed through words spoken or
written, or through gestures.
6. Social Process: Communication is a social process as it enables everyone in the society to
satisfy his/her basic needs and desires through the exchange of written, spoken, or non-
verbal messages. It is through communication that two or more persons interact and
influence each other and consequently bridge the gap in their understanding.
Therefore, good communication is the foundation of sound management.
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Q.2) What do you mean by Formal Communication? Also, highlight the important points of
distinction between Formal and Informal Communication. [10 marks]

Answer:
Formal communication follows the routes formally laid down in the organizational structure
of the enterprise. It is a path of communication that is officially determined by the
management. It is associated with the status or position of the communicator and the
receiver. The officially prescribed path of communication is orderly. It can easily be
maintained because it derives support from authority relationships. It allows the flow of
essential information. It helps in exercising control over subordinates and in fixation of
responsibility. It enforces a relationship between different positions. It derives its support
from the scalar chain of an organization.

There are three forms of formal communication as it flows in three directions downward,
upward and horizontal. Downward and upward are two types of vertical communication.

1. Downward Communication: Downward communication refers to the flow of

communication from a superior to a subordinate. It is used to issue orders and instructions
to employees. An important part of downward communication is information about the
objectives, policies, and programs of the enterprise. Regular provision of such information
to employees helps to create a sense of belonging, a feeling of loyalty to the organization,
and an active interest in the work.
2. Upward communication: Upward communication refers to the flow of communication
from lower levels to higher levels of authority. Such communication enables the
management to know what is happening throughout the organization. An executive can
know the outcome of his/her decisions and instructions from reliable information from
the employees. Such feedback has become more necessary due to the growing tendency
towards delegation and decentralization.
3. Horizontal communication: It implies the exchange of ideas and information among
people working at the same level of authority. Such communication helps coordinate the
activities of different departments or divisions of the enterprise. Communication among
people of the same status or rank tends to be faster and flexible as there are no status
barriers. It enables executives to exchange information and understanding.
Horizontal communication takes place mostly through meetings, conferences,
telephones, letters, memos, manuals, etc. A lot of information flows horizontally in an
organization.

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Formal Communication Networks

There are several types of formal communication networks depending upon the nature
of channels and the number of persons involved in the communication network-
1. Circle Network: Communication moves in a circle. Each person can communicate
with his/her adjoining two persons.
2. Chain Network: Communication flows from each superior to his/her subordinate
through a single chain.
3. Wheel Network: All subordinates under one superior communicate through him/her
only. They are not allowed to talk among themselves.
4. Free Flow Network: Each person can communicate with others freely. It provides
higher satisfaction. The flow of communication is fast.
5. Inverted V Network: A subordinate can communicate with his/her immediate
superior as well as his/her superior.

Formal Vs Informal Communication

Formal Informal
Basis
Communication Communication
It refers to the It refers to the
communication which flows communication which
Meaning through official channels in takes place without
the organization chart. following the formal lines
of communication.
It flows upwards from a It spreads throughout the
subordinate to a superior or organization. There is no
downwards from a superior fixed line of
Direction of Flow
to subordinate or communication. So, it is
horizontally between two generally referred to as
departments or divisions. ‘grapevine’
It may be oral or written, but It is generally oral.
Form generally recorded and filed
in the office.
Slow- time consuming Fast- spreads information
Speed
rapidly
Authentic Information Not authentic- generate
Authenticity
rumors
To achieve organizational To meet the personal or
Aim/Purpose objectives social needs of
employees.
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Q.3) What do you mean by Informal Communication? Why the informal channel is called
the Grapevine? Discuss various types of Grapevine Networks? [10 marks]

Answer:
When the employees are unable to communicate the required information to higher
authorities because of communication barriers, they may resort to informal channels of
communication. Informal communication arises from the social interactions of people. It is
outside the official network of an organization. Members of an informal group pass on
information and opinions to each other as well as to other informal groups. Its speed is fast
as compared to formal communication as the same person has social relationships with
several other persons in the organization. Therefore, information spreads swiftly in the
organization. It is structured less and information passes it in all directions.

Informal communication has the following characteristics:

1. It arises from social interactions among people.
2. It is a natural and normal activity due to the desire of people to talk to one another.
3. It operates at a fast speed because it functions through word of mouth or observation.
4. It generally operates as a cluster as every person tells in turn to many others persons.
An Informal system of communication that takes place without following the formal lines of
communication is referred to as “Grapevine” because it spreads throughout the organization
in all directions disregarding the level of authority. The term grapevine arose during the days
of the U.S Civil War. At that time, intelligence telephone lines were strung loosely from tree
to tree in the manner of a grapevine, and the message thereon was often distorted; hence,
any rumor was said to be the form of grapevine. Today, the term applies to all informal
communication.
If grapevine does not exist in the organization, the ability of a manager to build teamwork,
motivate people, and create identification with the organization would be severely
restricted.

Grapevine Networks
Grapevine follows different types of networks. Usually, there are four types of patterns
through which the grapevine travels. Communication among different individuals is different.
1. Single Strand Network: A person communicates with the other in sequence. e,g., X
communicates with Y through intervening persons in a strand. It is generally a long chain.
The longer the chain the greater is the possibility of distortion of the information.

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2. Gossip Network: A person communicates with all on a non-selectivity basis. A circle or

wheel-like figure is formed in this communication. Gossip chain is generally used when
information to be communicated is non-job oriented in nature.
3. Probability Network: The individual communicates randomly with others according to the
law of probability. So, in this type of communication, some people of the organization will
be informed and some others will remain outside the arena of the communication. This
chain is used when information is interesting but less important.
4. Cluster Network: The individual communicates with only those individuals whom he/she
trusts. Out of these informal networks, the cluster is the most popular.

Thus, Informal communication is an indispensable part of an entire communication system.

Informal communication has already proven its utility in performing organizational activities.
In the modern age, an organization can not fully depend on the type of communication
system provided formally by the organization. To fully complete any organization, informal
communication provides a huge boost to organizational employees.

Q.4) How can the grapevine be put to effective use? [10 marks]

Answer:
The informal system of communication that takes place without following the formal lines of
communication is referred to as ‘Grapevine’ because it spreads throughout the organization
in all directions disregarding the levels of authority.
Usually, there is a perception that the grapevine is inaccurate. This happens because the
grapevine tends to be associated with rumour, another form of informal communication,
which more often tends to be inaccurate. Sometimes, a major portion of the grapevine may
be true but an inaccurate part may make the whole grapevine meaningless.
Grapevine is not completely authentic. The message may get distorted because of different
interpretations by different persons. It may lead to the leakage of confidential information.
Also, the grapevine has no definite origin, therefore nobody can be held responsible for it.
A manager needs to understand that when false and unverified information is being spread
through the grapevine, people’s reputations, careers, and lives can be harmed very rapidly.
Therefore, he/she should learn to use it for the benefit of the organization. Since the origin
and direction of the flow of information are hard to pinpoint, it is difficult to assign the
responsibility for false information or morale-lowering rumors.
The manager cannot eliminate the grapevine. What a manager can do is that she can
minimize the negative consequences of grapevine by limiting their range and impact. From
the grapevine, she can find out what her subordinates are thinking. She can counteract
rumors or half-truths by presenting correct facts. Below are some suggestions to put
grapevine into effective use-

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1. Always keep your employees informed: The best way to prevent or reduce grapevine
communication is to always provide credible and easily accessible sources of important
information. Yet, many organizations, especially large enterprises, struggle to achieve it.
As a result, employees often feel confused, left out, and they are less productive while
wasting their time looking for the information they need.
A beverage industry professional cited an example of how his CEO lost his job because of
the grapevine, as he did not communicate an update in time. His company had sold a
bottling plant to another company and workers went on strike thinking they would lose
their jobs, which was not the case.

2. Better job design: Better job design and better quality of work-life can easily bring the
grapevine under the control of the management. It also prevents boredom, idleness, and
suspicion among the employees.

3. Keep an open culture: The grapevine is always about people and travels faster than any
other mode of communication. People at the receiving end of gossip may even take the
drastic step of quitting. An open culture with the freedom to approach the management
is important to tackle the grapevine, says Meghana Kulkarni, manager, HR, at the Pune-
based Designtech Systems.

4. Trust-relationship with employees: Trust in the workforce has a big impact on employees’
motivation, engagement, and consequently, their productivity and success. Therefore,
leaders should build trust to be more credible and considered trustworthy by their
employees, and effective leadership and manager communications are the only ways to
achieve that.

As I mentioned earlier, Grapevine is always present in every organization. No manager can

eliminate it completely. However, what the manager can do is put it to effective use by
following the above suggestions. Anything which exists in this universe has some pros and
cons, so for the grapevine. Here manager should be capable of using the grapevine for the
benefit of the employees and organization.

Q.5) What is Rumour? How can it be managed? [10 marks]

Answer-
Rumour is the most undesirable feature of the grapevine and it has given the grapevine a bad
reputation. That is why, to some people, grapevine means rumour. But it is not always so in
practice. A rumour is grapevine information that is communicated without authentic
standards of evidence being present. It is thus an untrue part of the grapevine. It originates

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for several reasons. One cause is plain maliciousness. A more frequent cause is employees’
anxiety and insecurity because of poor communication in the organization.
Rumour largely depends on the interest and ambiguity perceived by each person; it tends to
change as it passes from person to person. The rumor gets twisted, distorted when it passes
from one mouth to another. Generally, each person chooses details in the rumor to fit his/her
particular focus of reality. Thus, the details given at the beginning of a rumor are lost after a
few transmissions. A major outbreak of rumor can be very dangerous for the organization.
Therefore, management must deal with rumors effectively. the most important problem
before the management is how to deal with rumors.

Dealing with Rumour

Since rumor is generally incorrect, a major outbreak of it can be devastating for an
organization. Therefore, rumors should be dealt with firmly and consistently. However, it is
not wise to strike at the whole grapevine because it happens to be the agent that carries
rumour. Moreover, certain rumors are harmless and die out as time passes. Dealing with such
rumors may not be worthwhile. Problems come with those rumors which tend to be harmful.
To deal with such rumors, the organization can adopt the following practices:
1. Reduction of Causes: The best way to control rumors is to get their causes rather than
trying to stop them after they have already started. The causes of rumors should be
ascertained and should be addressed properly. This is a preventive approach to handling
rumors. The possibility of spreading rumors is reduced when people feel reasonably
secure, understand the things that matter to them, and feel part of the team. In such
situations, ambiguity is reduced and the need for communication through the informal
channel is reduced.
2. Listening to Rumors: Regardless of the importance of rumors, they should be listened to
carefully. Even though they may not be true, they carry the message about the employees’
feelings on the subject- matter of the rumor. In this way, the management can know
where the ambiguity prevails and what actions can be taken to clear the ambiguity.
3. Providing Facts: When there is a rumor which may prove harmful to the organization, the
management should provide proper facts and figures relating to the issue of rumors. In
such a case, the ambiguity is reduced and the truth tends to prevail.
4. Use of reliable sources: The rumors are sometimes so strong that workers may not believe
what the management wants to say. In such situations, those channels should be used
which the workers consider reliable. There may be certain employees who are relied upon
by others, such persons should be briefed about the facts of the cases or issues. When
reliable sources provide correct information to the employees then rumors may stop.
5. Use of Trade Union: Often, rumors arise in the minds of employees about the
management practices concerning the employees in particular and the organization in
general. Such rumors may be quite harmful if management-employee relation is not good.
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In such situations, the management can take the help of employee leaders to refute
rumors as the employees tend to put more trust in their leaders as compared to
management so far as communication is concerned.

Q.6) What do you understand by written communication? Illustrate its advantages and
disadvantages. [10 marks]

Answer:
Written communication is the most common form of business communication. It is believed
to be the core business skill as it enables clear communication in an organization. A ‘Written
Communication’ means the sending of messages, orders, or instructions in writing through
letters, circulars, manuals, reports, telegrams, office memos, bulletins, etc. It is a formal
method of communication and is less flexible.

Characteristics
Written communication is characterized by the following features:
a) Written communication requires a lot of information and effort. It is a creative activity.
For example, the writer of a report has to collect the necessary information, arrange it in
a logical order and then write the report logically.
b) Written communication takes much more time than oral communication. The sender has
to plan out his/her message and write (encode) it carefully. The message is sent and the
receiver decodes it. Then he/she plans, writes, and sends back his/her reaction.
c) Written communication has multiple cycles. An oral message gets an immediate response,
which often leads to further exchange of words. This is not possible in written
communication, which is often a one-cycle event.
Advantages
Written communication serves as a permanent reference for the future. It is formal and
carries more weight. It is not possible to change the contents of a written message by the
receivers. Written messages are more clear and specific as they are carefully drafted. Below
are some more important points for written communication-
1. Wide Access: Written communication is the most economical and probably the only
means of communication when the sender and receiver of the message are separated by
long distances. Written messages have the widest possible coverage.
2. Precision and Accuracy: Written messages are prepared with due thought and care. The
communicator tends to be accurate and factual because the authenticity of the written
message can be challenged and verified. The writer tries to organize his/her ideas logically
before writing. As a result, written communication tends to be more accurate, precise,
and reliable.
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3. Permanent record: Written communication provides a permanent record for future

reference. Such written records of policy decisions and performance in the past serve as
a good guide for decision-making and planning in the future.
4. Fixed responsibility: when orders, instructions, and decisions are recorded and conveyed
in writing, responsibility for errors and untruths can be easily fixed on the communicator.
Nobody can shift or avoid his/her responsibility.
5. Convenience: The personal presence of neither the sender nor the receiver of a message
at a certain place at the time is necessary. The writer can write or dictate at a time that
suits him/her. The reader too can read or re-read at his/her own convenience.

Disadvantages
Written communication is slow as compared to oral communication. It may also become a
source of dispute as once a written message is sent, it is very difficult to withdraw it. Written
messages may give rise to queries for clarification and elaboration which lead to loss of time.
Below are some detailed points regarding it-
1. Time-Consuming: In addition to the time involved in sending messages, the time has to
be spent in putting the message in writing. As much time is wasted, it is not suitable when
the message is to be sent immediately.
2. Costly: Written communication is more expensive than oral communication. Paper and
ink or typing costs are involved in addition to postage, etc. If the message is poorly drafted,
written communication becomes ineffective. It costs a lot of money to store written
records.
3. Rigidity: Written communication lacks flexibility. On-the-spot clarification and
adjustments cannot be made. The receiver has to write back in case of doubts or queries.
4. Impersonal: Written messages tend to be formal and there is a lack of personal touch.
Therefore, the receiver is less receptive.
5. Delayed Feedback: Immediate feedback is not possible in the case of written
communication. The sender of the message has no opportunity to judge the reaction from
the facial expressions of the receiver. Gestures and facial expressions cannot be used to
reinforce written words.
Thus, various merits and demerits of written communication suggest that it cannot be
followed in all situations. Where the information is to be maintained for future reference,
written communication is the only possibility. Similarly, where the message requires
authenticity and formalization, it should be communicated in writing.

Q.7) Discuss the barriers to effective communication. How can these barriers be overcome?
[10 marks]

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Answer:
Good communication is the foundation of sound management. It is the element that sets the
enterprise in motion and provides life to the dead structure. Communication is essential not
only in business but in all types of organizations. It is how behavior is modified, change is
affected and goals are achieved. A manager who is in a position to communicate well will be
able to get the cooperation of subordinates towards the objectives of the organization.
However, it is not as smooth as it seems because of barriers or obstacles to communication.
Barriers or obstacles to communication cause breakdowns, distortions, and inaccurate
information. They plague the daily life of the managers who must depend upon the accurate
transmission of the orders and information for efficient operations.
In large communication, there are a number of obstacles that make the transmission of
messages more difficult. It should be noted that although there is no such thing as perfect
communication, yet a considerable degree of perfection can be achieved in communication
if the communication barriers are overcome. The main communication barriers are discussed
below:
a) Organizational barrier: The organization structure has an important influence on the
ability of the members of the organization to communicate effectively. These days the
organizational structure of most big enterprises is complex involving several layers of
supervision and long communication lines. Organizational structure creates problems
because communication may break down at any level of supervision due to faulty
transmission.
b) Status barrier: The placing of people in superior/subordinate capacity in the formal
organization structure also blocks the flow of communication and more particularly in an
upward direction. The greater the difference between hierarchical positions in terms of
their status, the greater would be the possibility of communication breakdown.
c) Semantic barrier: Words and symbols used to communicate facts and feelings may mean
different things to different persons. For example, ‘Profit’ may mean to management as
efficiency and growth, whereas to employees, it may suggest excess funds piled up
through paying inadequate wages and benefits. People interpret the same message in
different ways depending upon their social and cultural backgrounds, education, and
experience.
d) Perceptual Errors: A person’s perception is determined by his/her needs, social
environments, level of education, cultural factor, etc. Every person tries to interpret the
information he/she receives from his/her own angle or point of view. This may create
complexities in the process of communication. Effective communication requires the
willingness to see things through the eyes of others.
e) Personal barriers: Personal barriers relate to the factors that are personal to the sender
and receiver and act as a hindrance in the communication process. These factors include

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life experiences, emotions, attitudes, behavior that hinders the ability of a person to
communicate.

Overcoming barrier to Communication

An effective system ensures a smooth flow of information in the organization and overcomes
barriers to communication. The following guidelines/measures can help overcome the
communication barriers and improve communication effectiveness.
a) Clarity of message: Clarity of thoughts is essential for good communication. The message
must be perfectly clean and free from all ambiguity. The language used should be simple
and precise which the receiver can understand easily. Different components of the
message must be logical and well-knit. Technical jargon and high-sounding words should
be avoided.
b) Free flow of information: The system of communication should be so designed that it has
short lines of information flows. There should be free movement of information both
vertically and horizontally. The rigid organizational structure should not be allowed to
come in the way of a smooth and speedy flow of information.
c) Open Mind: The parties to the communication must have open minds. They should not
try to withhold information just to serve their interests. They should be able to interpret
the information without any prejudice. They should be receptive to new ideas that may
come across. They should not react before receiving and understanding the full message.
d) Effective Listening: The sender must listen to the receiver’s words attentively so that the
receiver may also listen to the sender at the same time. It is also necessary for every
employee to update his/her knowledge by reading company notices, bulletins, reports,
etc.
e) Flexibility: A good system should be flexible enough to adjust to the changing
environment. It should be able to carry extra loads of information without much strain. It
should absorb new techniques of communication with little resistance. Use of a wide
range of media such as oral and written messages face to face contacts, telephonic calls,
group meetings, etc should be encouraged without any hesitation.
In addition to the above principles, there are special aids for promoting free and frank
communication. An open-door policy and participation in social functions are structured or
informal aids. Suggestions scheme and personal counseling are structured or formal aids for
communication. Communication is an art and it can be improved through continuous
practice. Communication is not a substitute for good management but good management is
required to operate the communication system effectively and efficiently.

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Q.8) ABC Pvt. Ltd Company is incurring continuous losses and its MD is going to propose
the retrenchment of some employees. MD’s private secretary who was asked to write a
letter to branch offices in this regard has spread the news of proposed retrenchment.
Middle and lower-level staff has further spread the rumor. Trade Union leaders called for
a meeting of employees. By the time any decision of the proposed retrenchment could be
taken the employees proposed to go on a strike.
You are required to study the case and answer the following questions:
a) Is it a case of ‘grapevine’?
b) Will you recognize and allow informal organization?
c) What suggestions would you extend to manage the above problem?

Answer:
a) Yes, it is a case of grapevine because the news of the proposed retrenchment was not
communicated to employees by the management through official channels. The news was
spread by MD’s private secretary through informal communication.
b) Informal organizations are spontaneous and inevitable. Wherever several people work
together informal groups emerge. An informal organization grows within a formal
organization. Management neither creates informal organization nor can prevent or
eliminate it. Therefore, it is advisable to recognize and allow informal organization. Every
manager should learn to live with informal organizations and make constructive use of
such organizations.
c) The management of the company should call a meeting with trade union leaders. In the
meeting, the reasons for retrenchment should be explained. It is necessary to tell the
trade union leaders that retrenchment is unavoidable otherwise the company might have
to be liquidated one day. In that case, everybody will lose their job. Some employees
should be retrenched so that the jobs of the remaining employees might be saved.
Management should also explain the measures proposed to turn around the company
back to health. An assurance might be given that as soon as the company is back to health,
the retrenched employees will be taken back.

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