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... -
MANAGERIAL
COMMUNICATION
Urmila Rai
Former Principal
Narsee Monjee College,
Vile Parle, Mumbai
and
Former Director
Pillais'lnstitute of Management Studies,
NewPanvel,
Mumbai.
S.M. Rai
Former Principal
Hinduja College of Commerce and Economics,
Mumbai.
~
GJIimalaya GJlublishingGJIouse
MUMBAI • NEW DELHI • NAGPUR • BANGALORE • HYDERABAD • CHENNAI • PUNE • LUCKNOW • AHMEDABAD • ERNAKULAM
© Authors
Stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical,
photocopying, recording and/or otherwise without the prior written permission of the publisher.
ISBN : 978-81-84881-46-2
New Delhi "Pooja Apartments", 4-B, Murari Lal Street, Ansari Road, Darya Ganj,
New Delhi • 110 002. Phones: 23270392, 23278631, 30180302103/04/05/06,
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Nagpur· 440 018. Phones: 2738731, 3296733 Telefax: 0712-2721215
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Race Course Road, Bangalore - 560 001.
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Chennai • 600 017. Phones: 044-28144004/28144005
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Navrang Pura, Ahmedabad - 380009. Phone: 079-26560126
Mobiles: 09327324149, 0931467413
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DTP by Editorial Office, Bhandup (Kalpana)
Printed by Geetanjali Press Pvt. Ltd.,
Kundanlal Chandak Industrial Estate,
Ghat Road, Nagpur - 440 018.
1. Management Communication 1 -11
2. Objectives of Communication 12-22
3. Forms of Communication 23-30
4. Barriers and Gateways to Effective Communication 31-45
5. Non - verbal Communication 46-57
6. Cross Cultural Communication 58-64
7. Listening 65-75
8. Speaking Skills 76-90
9. Business and Social Etiquette 91 -103
10. Making Presentations and Speeches 104-116
11. Interview Techniques 117-133
12. Meetings 134-147
13. Essentials of Effective Managerial Writing 148-162
14. Structure and Format of Business Letters 163-175
15. Letter Writing Techniques 176-191
16. Enquiries and Replies
•
192-208
17. Orders and Replies 209-225
18. Complaints, Claims and Adjustments 226-243
19. Collection Letters 244-253
20. Sales Letters 254-270
21. Banking Correspondence 271-285
22. Agency Letters 286-293
23. Job Application and Interview Letters 294-311
24. Memos, Circulars, Notices 312-327
25. Reports - Types and Structure 328-339
IIMPORTANCE OF COMMUNICATIO~
Society consists of organisations, and organisations depend on communication to hold them
together. The more complex the society, the more complex its activities and the greater is the need for
skilful communication.
If ideas are not communicated to others, they are of no use. Unless information and
recommendations are conveyed-to others, unless we can make others value our recommendation, we
cannot achieve our goals. Hence, communication skill is needed by everyone in the modern world;
managers, whose function is largely to plan and get others to work in co-ordination, succeed mainly by
skilful communication.
Communication is central to all human activity and is an integral part of our daily life.
We have to-
• adapt our communication to a variety of settings and persons based on the role we are _
assuming in the interaction
• make daily decisions about the appropriateness of the messages we are sending
• be aware that the manner and methods we choose to communicate our messages have an
impact on the effectiveness of those messages
- - - - - - - - - - - - - - - - - - - - - - - . Managerial Communication
• interpret and evaluate messages we receive everyday and decide what action to take on the
basis of the message
• interact with people in groups, at home and outside home and at work.
Skill in communication involves two aspects: in the first place, it needs skills to deal with oneself,
mastering one's emotions, honing one's ability to handle the language, and developing skills of writing
and speaking. Secondly, it needs understanding of the audience's needs and the ability to shape
one's message to suit the audience. Complexities arise when we consider that media develop rapidly
and have their own attributes, making it necessary to choose a medium carefully.
Communication as it is required in business and official work needs attention to various details.
Success depends on structuring the message with a clear goal and expressing it in persuasive language,
an understanding of the needs and the situation of the target audience, choice of the most appropriate
medium, and giving due attention to the context of the message. Each of these has complexi~ies and
each is variable.
Managers have to communicate in all forms, written, oral and non-verbal. Management
communication has some of the most difficult content to convey. While Business Communication is
concerned with skills needed by everyone in the world of work, Management Communication is concerned
with skills needed to deal with some of the toughest situations an organisation might face. While a
competent subordinate can deal with ordinary complaints of customers, managerial skills are needed
when it comes to dealing with a difficult situation arising out of legitimate client dissatisfaction or a
crisis created by mistakes or accidents in the organisation. Negotiations, which depend almost solely
on communication skills, have to be conducted by senior management.
MakIng a presentation to a hostile audience, writing complex reports from information gathered
by a team, going before the public in a crisis situafion, and communicating bad news, are skills
essential for managers. -
A manager has to contribute to the public image of the organisation, motivate all those he or she
works with, and facilitate the tasks and the working of the organisation. Skilful, persuasive communication
is the tool for accomplishing all these tasks.
An organisation, as a whole, also has communication needs. If healthy and clear communication
policies are established, the organisation functions smoothly and it is easier to deal with troublesome
situations. .
1. To inform, to provide information for use in decision making, but not necessarily advocating
any course of action
3. To persuade, to reinforce or change the audience's belief about something and, possibly,
act on the belief
To achieve these goals, the organisation must have well maintained communication facilities and
a good communication policy. Individual skills need the support of organisational policies and facilities
for communication.
An organisation is constantly in need of information. Its systems and channels of information flow
are its life line. Communication gaps and failures and even delays can be very costly in these days of
global business. Good decisions depend on timely information:
Besides the channels and systems, the organisation needs a sound, open communication policy
and climate. This not only helps to keep information flowing but also motivates members to communicate
rather than hoard or hide information. People speak up and communicate more easily, work with
greater motivation if they feel confident that their information is valued and that the management will
give them the information they need.
Organisations need to be able to negotiate with suppliers, customers and associates and
government departments. The managers must deal with people of diverse backgrounds and interests.
International organisations have to adjust to a wide spectrum of cultures and life styles to be able to
deal with customers, suppliers, employees and managers from different cultures. Managers need
skills to overcome barriers and create gateways to communication, and the flexibility to adapt themselves
to various cultural styles.
No enterprise can be run by a solitary person. The managers have to recruit people, motivate
them and coordinate their efforts. Besides there are customers, government departments, other
organisations and utilities, and the social environment whose co-operation is essential for any enterprise
to be conducted. Building up and maintaining good relationships is the essence of image and reputation
building. The organisation's relations with the public and with its customers depend heavily on
communication. An organisation which pays attention to its corporate communication and lays down
policies and procedures is better able to encounter any crisis. Indeed, crisis management is an
exercise in successful communication under stressful conditions, by several members, with a variety
of audiences.
Managers have to develop skills to analyse the audience, to understand the environment, to use
the various media effectively. They also need to develop receiver skills of reading, listening and feedback,
understanding of non-verbal communication besides developing one's own skills in framing messages.
ICHARACTERISTICS OF COMMUNICATIO~
Understanding the characteristics of communication is useful in improving competence and skills
in communication.
.r-----------------------... Managerial Communication
Communication is Unintentional as well as Intentional
We do not always succeed in conveying exactly what we want to; the target audience may
receive less or more, or even something other than what we intended to convey. In fact, communication
does not happen exactly as the sender wishes. It often fails.
Communication takes place even when we do not plan it and when we are not conscious of it; we
may communicate something that we had not intended to communicate. Our non-verbal behaviour,
which is always present, conveys something about our attitudes and feelings which is not expressed
in words. Audiences may create meanings which the source had not intended.
Besides, there are secondary and hidden audiences that the source may not take into account
but nevertheless receive a message, interpret it, form impressions and, sometimes, influence the
target audience's response.
Communication is Systemic
Every component of the process is affected by every other component. The source, the environment,
the goal, the medium, the nature of the message, the receiver, the feedback, all affect one another. The
nature of the audience shapes the message. If a wrong medium is chosen, the message may fail to
have the intended effect; if the sender's goal is not clear, the message will be confused. Disturbance at
any stage in the communication process affects the entire process. Modification of any of the elements
can change the communication and its effectiveness.
The two participants, the source and the audience, exch~l1ge ideas and information and influence
each other during the process of communication. They also come to a shared and common meaning
as a result of the communication. They share as well as exchange thoughts and meanings.
EROCESS OF COMMUNICATIO~
Some Definitions
There are many definitions of Communication given by many theorists; some of these definitions
are quoted here. .
)
A wider and more comprehensive definition is given by National Joint Committee for the
Communicative Needs of Persons with Severe Disabilities:
• Any act by which one person gives to or receives from another person, information about that
person's needs, desires, perceptions, knowledge, or affective states. Communication may be
intentional or unintentional, may involve conventional or unconventional Signals, may take
linguistic or non-linguistic forms, and may occur through spoken or other modes. - Julia
Scherba de Valenzuela, Ph.D.
These definitions show that communication involves exchange of thoughts between two parties.
Communication is the transmission of information and meaning from one individual or group to another.
The crucial element is meaning.
Communication is successful only when the receiver understands an idea as the sender intended
it. Both parties must agree not only on the information transmitted but also on the meaning of that
information.
In order to transfer an idea, we must use symbols (words, signs, pictures, sounds) which stand
for the idea. The symbols must be understood by the person or persons with whom we intend to
communicate. Both must assign the same meaning to the symbols used; otherwise, there is
miscommunication. Unless there is a common understanding of the symbols, it is not possible to
communicate.
Components of Communication
In order to analyse the activity of communication, we must know the process and the elements
involved in the process of communication.
There are seven components or elements which make up the process of communication:
3. Goal /Purpose is the sender's reason for communicating, the desired result of the communication
4. Context IEnvironment is the background of the situation in which the communication takes
place
. - - - - - - - - - - - - - - - - - - - - - -... Managerial Communication
The Process
The process of communication involves decisions and activities by the two persons involved, the
sender and the receiver.
The sender begins the process of communication. The sender has to be clear about the purpose
(or goal or objective) of the communication and about the target audience (or receiver) of the
communication; that is, the sender decides why and to whom to send a message. Conscious or
intended communication has a purpose. We communicate because we want to make someone do
something or think or feel in a certain way, that is, to influence the person.
The source has to decide what information to convey, and create the message (or content) to be
conveyed by using words or other symbols which can be understood by the intended receiver. The
process of putting the idea into symbols is called encoding; in order to encode, the sender has to
select suitable symbols which can represent the idea, and can be understood by the receiver.
The sender also chooses a suitable channel or medium (mail, e-mail, telephone, face-to-face
talk) by which to send the message. The choice of the medium depends on several factors such as
urgency of the message, availability and effectiveness of a medium, and the relationship between the two
communicants. Note that the choice of the medium/channel also influences the shape of the message.
Finally, the sender tries to note the effect of the message on the receiver; he checks whether the
receiver lias got the message, how the receiver has responded to the message and whether he has
taken the required action; this information about the receiver's response is called feedback.
Sender's functions make up half the process of communication. The functions of the sender are:
1. Being clear about the goal/purpose of the communication
2. Finding out about the understanding and needs of t~le target audience
3. Encoding the required information and ideas with symbols to create the message to suit the
receiver/ audience
4. Selecting the medium to send the message
5. Making efforts to get feedback.
The receiver becomes aware that a message has arrived when he perceives it with his senses
(he may see, hear, feel, etc). The receiver attends to the message and interprets it. The process of
translating the symbols into ideas and interpreting the message is called decoding. Interpreting is a
complex activity; it involves using knowledge of the symbols and drawing upon previous knowledge of
Management Communication .....- - - - - - - - - - - - - - - - - - - - - -
the subject matter. The receiver's ability to understand, level of intelligence, values and attitudes, and
relation with the sender influence all influence his creation of meaning.
If the sender and the receiver have a common field of experience, the receiver's understanding of
the message will be closer to what the sender intended.
The receiver also feels a reaction to the message; this reaction may be conscious or unconscious;
it may cause some change in the receiver's facial expression. The message definitely leads the
receiver to think. The receiver may take some action, if required. He may also reply to the message.
The reaction, the response and the reply together form the feedback.
Receiver's functions complete one cycle of the process of communication. The functions of the
receiver are:
Both, the sender and the receiver have important functions in the communication process; it can
be successful only if both are efficient and attentive.
Context and Environment: Context is the set of circumstances that surround an event and
influence its significance. It is the background of events which lead to the message being sent. A message
may acquire a different meaning in a changed context. If both have the same amount of background
information about the situation and the issue, it is easier to communicate on the topic. The context
influences the sender's encoding and the receiver's decoding, and also each one's interpretation.
The meaning of a sentence depends strongly on the circumstances in which it is said. For
example, "How much have you had to drink?" asked of a patient by a nurse could mean "Do you have
enough liquids?" The question would have a completely different meaning if asked by a policeman of
a driver who had got on to the footpath.
The circumstances of each communicant, each one's position in the organisation, the usual
work that each one does, and the present state of mind of each one, can all influence the communication
process. The present relationship between the two is a part of the context; the receiver tends to
interpret messages in the context of the relationship.
Communication takes place in an environment. Environment includes several things. The most
obvious is the place in which the communication takes place; if it is pleasant and comfortable, the
communication is better. Noise or disturbance in the environment usually hinders the flow of
. - - - - - - - - - - - - - - - - - - - - - - -•• Managerial Communication
communication. The word 'noise' is used to describe any kind of disturbance or barrier that may
prevent the communication from being successful.
The political, cultural, legal, technological environment influences communication as these factors
may affect each one's situation and attitude to the content of a message.
(i) The time of the communication (first thing in the morning, just before or just after lunch, when
it is almost closing time) affects the communication.
(ii) The length of time taken by a communication event (how long the presentation or the meeting
or the conversation goes on) influences the quality of the communication. Too long can be
tiring and boring; too short may be inadequate and one of them may feel that insufficient
attention was given by the other.
(iii) There is a right time for giving some information ..If it is given too late, it may be useless; if it
is too early, receivers may not be ready for it and may not understand it.
The first model to represent the communication process was developed by Shannon an engineer
at Bell Telephone Company. His concern was fidelity in transmission and controlling of the noise that
disturbed the transmission.
The following figure shows the steps in the one-way process of communication in a linear form .
....
_I_de_a_;------II Message
Encoding. .
~-------II :::~::: ~------II·
Medium· . Decoding .
Idea
Tx Ax
(T ransmitter) (Receiver)
There have been several developments of the model as understanding of the process of human
communication increased. From Shannon's one-way linear model to the current multiple-cycle circular
models, many theorists from several disciplines have contributed new dimensions to the model and
the description of the communication process.
Understanding of the importance of feedback soon led to the adding of a feedback loop to the
model. As theorists began to study communication as a human activity, the concept of the relationship
between the sender and the audience developed. Other theorists took into account the fact that
human communication is an interaction and progresses in many cycles during which both influence
each other. The processes of encoding and decoding are strongly affected by the personal qualities of
each participant and the creation of meaning is a complex mental process influenced by several
factors such as the personal background,· mental qualities and the circumstances of the individual.
The concept of noise, which was only mechanical in the case of Shannon's model, has now
expanded to include everything that prevents communication from being successful - external
Management Communication ••. . - - - - - - - - - - - - - - - - - - - - - - - - - .
disturbances, shortcomings of the system of symbols used, socio-psychological barriers that exist
within the participants, and problems created by differences of cultural background.
Feedback Feedback
I 1
Received
Idea Message r Idea
Encoding Medium Message Decoding
Tx Ax
(Transmitter) (Receiver)
Problems and pitfalls exist between every two stages of the process. In addition, there are
environmental barriers as will be described in a later chapter.
Communication can be considered successful only if the message is received well by the target
audience. The source aims to influence the attitudes, and actions of the audience, in addition to
conveying ideas and information. The audience must understand the content in the way it was intended;
it must result in common understanding between the source and the audience. The audience must
also react and respond favourably to the message. If the audience's emotions are disturbed, if there is
resentment, fear, anger or contempt, the response will be unfavourable. And unless the audience's
interest and enthusiasm is aroused, the response will be lukewarm.
To be easily understood, the message should be clear, concise and to the point. To provoke a
favourable response, the message must be credible, considerate, courteous and enthusiastic. These
characteristics are discussed in detail in a later chapter.
[QUESTIONS]
Identify and briefly describe the seven elements of communication in the following situations.
1. A supervisor in a factory questioned his night staff because there had been several hours of
down time the night before. ''Who's responsible for this mistake?" he asked angrily and looked at the
faces of the staff. They remained silent. "Okay, we're going to sit here till someone tells me the truth.
This will never do. It's not what I had expected." As the supervisor stood over his work crew eye-balling
them, they shifted uncomfortably, looked at their watches and fidgeted. No one spoke. A great deal
of time was wasted and relationships were under strain. The staff felt that they had handled the crisis
as well as they could have.
Management Communication ••~---------------------.
Finally, the meeting was adjourned. The night staff went away with no idea what they should do
in future if a similar problem arose.
2. The dispatch section supervisor, Arvind, about fifty years old, rather garrulous, and thinking
well of himself, just got off the phone, shrugged and pulled a face. He had been trying to get in a word
with a customer who was obviously monopolising the conversation. He stomped into the next room
where Dinesh, his assistant was checking the day's schedule of dispatches. Dinesh is about twenty-
seven, attentive to his work and speaks very little. Here is what Arvind said to Dinesh.
"You know Dinesh, we've had this Parekh account since 2005. He's always been a problem
customer - placing orders at the last minute and expecting us to get him his goods in record time.
He gives me a headache; I just got off the phone with him. It took me half an hour just to get in a word
edge-ways. I feel like taking early retirement and getting into one of those multilevel marketing businesses.
It seems a lot easier than all this. I hope you'll do something about this Parekh. I'll check back with
you tomorrow.
Next Day:
Arvind: Dinesh, how did it work out? Did you straighten out the matter with Parekh?
Arvind (exploding): You mean after all that I told you yesterday, you didn't do anything? You're
getting as difficult as Parekh! Stop playing games and just get it done!
And Dinesh went off to the dispatch room to see how he could expedite Parekh's order.
.-'
An objective is something that we want to get done by our efforts; it is the purpose with which we
undertake an activity. When we communicate, we have a reason for doing it. When we speak or write
to our friends, our purpose is to keep in touch and to be friendly. But in a business or official situation,
when we communicate with customers, or to our subordinates or our superiors at work, we have a
specific objective or purpose; we want to accomplish something, that is, succeed in getting something
done.
In business, we have many reasons or purposes for communicating. We may want to give
information, we may want to make a request, give instructions, or make a complaint. We may also
want to ask for iilformation or learn. Many times, we want to persuade someone to agree with what we
say. There are also some more difficult purposes to achieve when we communicate.
A person who is a leader or manager, or supervisor who has to keep together a team of many
persons, has the purpose of motivating them. Sometimes, a leader has to show appreciation and
praise the members of the team. Sometimes, the leader has to scold and warn them to do their work
properly. ...
Our communication is clearer and more effective when we know the objective of a particular
message which we are going to send. It is also better when we make t~e objective clear to the receiver.
We should be fully clear what we are trying to achieve when we speak to a customer or to a supplier.
All communication has the two broad objectives of information and of persuasion. Other objectiv~s
are aspects of these two broad objectives. Whatever we might be communicating, there is some
information in what we say. There is also an element of persuasion, because we want the other person
to believe us and agree with us and accept what we say.
Persuasion needs a basis of information; we cannot persuade customers to buy unless we give
them information about the goods and services we offer. Information does not include emotion; persuasion
is achieved by skilful appeal to emotions. The style and tone of informative communication is different
from the style and tone of persuasive communication.
Objectives of Communication ••1-----------------------.
The objectives of downward communication from seniors to subordinates are different from the
objectives of upward communication from subordinates to seniors. Also, the objectives of lateral
communication between persons of equal status are different.
Information
Information consists of facts and figures and data which can be arranged in different patterns as
required for different purposes. Messages which give information contain data on which the conduct of
business is based. Information does not include emotion.
For example, a list of customers' names, addresses and telephone numbers forms a customer
data base. It becomes useful information for accounts and collections department when we prepare
from it a list of customers who have not paid their dues. It becomes useful for the sales department
when we prepare from it a list of customers who have not placed orders for a long time. Both lists are
made from the company's data base of customers.
Other examples of information are: the syllabus for a course, a stock market report, a user
manual, a signboard and a news report.
We need information to carry on our work. If we are in a new job, we need information about it in
order to know what we have to do. If we are in a new situation, we need information to make sense of
it and to know what to expect.
Information may be given orally or in writing. It may be given in a meeting, at airports and railway
stations information is given over public address system. A large amount of information is available and
moves about in an organisation and in the world. We need to develop the ability to take what we need.
Companies give employees information about the company's goals, plans, progress and prospects,
and also about working and service conditions, training and promotion opportunities, and the benefits
available to them. For this purpose, there are organized channels; the notice board is used for fresh
information; manuals and instruction sheets are used for information about procedures and regulations;
house organs, bulletins, pamphlets, are used for periodical and general information.
Many companies give information to the public about their progress, products, and policies through
the mass media like newspapers and television. This type of information forms the basis of persuasion
and motivation which is the other important objective of communication.
Persuasion
Persuasion means making efforts to change or influence the attitudes and behaviour of others. It
is achieved by skilful appeal to emotions. The style and tone of persuasive communication is different
from the style and tone of informative communication.
Persuasion is the skill of using the best arguments to win over and convince others. It requires
the ability to use the symbols of communication in an effective manner; the persuader should be able
to use words, both spoken and written, as well as non-verbal methods in such a way as to have the
most influential effect on the target audience.
1IIf----------------------... Managerial Communication
Persuasion needs a basis of information; we cannot persuade customers to buy unless we give
them information about our goods and services.
(i) The personal character and reputation of the persuader must be respected and accepted by
others; people believe what is said or written by a respected and reputable person or
organisation. This is known as source credibility.
(ii) The emotional appeal made by the persuader must be suitable and effective. All persons
have three types of needs: physical needs, social needs and ego needs. Social and ego
needs are the emotional needs; social needs are the need to belong to a group, to have
friends, to meet others and have social interaction; ego needs are the need to win, to be
successful, to do well, to be appreciated and recognised and to feel good about oneself. If the
persuader offers satisfaction of these emotional needs, people respond favourably.
(iii) The logic of the presentation made by the persuader must be reasonable. People must be
shown how they will benefit by accepting the proposed ideas, views, or actions.
The persuader needs knowledge of the background and the present attitudes/views of the people
in order to use the right appeals and reasons.
Instructions
Instruction is information about how to carry out a process or procedure. Supervisors instruct
their staff on tasks that are to be performed from time to time. In most cases, this can be done orally,
individually or in groups.
Oral instruction may be supplemented with written material and visual material. Actually showing
how to do something is called demonstration; it is a method of instructing in procedures and in
Objectives of Communication ••- - - - - - - - - - - - - - - - - - - - - . . . , .
operating machines. Films can also be used for demonstration. User manuals which are given to
customers with mechanical articles, have diagrams and pictures. This type of instruction is educational.
Orders
An order is formal assignment of a task. It is often in written form, and generally means that the
matter mentioned in it is final. Simple orders to carry out certain tasks may be given orally. Subordinates
who question or disobey orders are considered guilty of misconduct or insubordination.
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function usefully unless they are given clear and full instructions on their tasks. All communication
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Education is the development of the abilities of the mind. Training is practical education or practice
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in the form of lectures and discussions is most commonly used for this purpose. Written notes and
handouts are used for training. Demonstration, films, and actual work experience are used for training
in technical work and skills.
Training is also used for changing attitudes and developing a commitment among employees. It
is meant to create an emotional commitment to service and high quality of performance.
Customer education is an important objective of the marketing department. Customers who buy
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