Sistech Sukkur Study notes for MBA (1st semester) Managerial Communication

The history of communication The history of communication dates back to prehistory, with significant changes in communication technologies (media and appropriate inscription tools) evolving in tandem with shifts in political and economic systems, and by extension, systems of power. Communication can range from very subtle processes of exchange, to full conversations and mass communication. Human communication was revolutionized with speech approximately 200,000 years ago. Symbols were developed about 30,000 years ago,[2] and writing about 7,000. Definition of Communication American Management Association defines, Communication is any behavior that results in an exchange of meaning. The exchange of thoughts, messages, or the like, as by speech, signals or writing. To express oneself in such a way that one is readily and clearly understood. Exchange of Facts & Ideas Opinions & Emotions Get information & Motivate Praise & Get feedback Sell & Greet Etc. Details Communication is derived from the Latin word Communico which means to share. Hence the word communication means: the process of sharing information, Which could be facts, ideas, thoughts, and feelings This sharing takes place from one person to another so that it is understood. This process involves systematic and continuous process of speaking, listening, and understanding. Therefore Communication is a process, which involves sharing of information between people through a continuous activity of speaking, listening, and understanding. Communication is important and that we spend a lot of time doing it. But we are pretty good at communicating. After all we talk to people, write notes, read books, get along with other people, and make myself understood already. Objectives of Communication 1. Information &Order (Instructions) 2. Persuasion &Suggestions 3. Issue of Orders. &Advice & Counseling. 4. Education.& Motivation. 5. Warnings. ETC The basic objective of human communication is trying to elicit a reaction from the person we are trying to communicate with. From a business or commercial angle, if we observe any small or large business around us we will be able to notice that the amount of success the business has achieved mainly relies on its power of communication. Communication defines the level of success that the company has attained. Following are a

few of the main objectives of business communication. Information- The main objective of a business is to pass on information and making people more informed, E.g.- all the advertisement activity that we see around as are an attempt to inform and pass the information on to others, and in case of business houses this information is mostly about the product or services that they have to offer. But the mode of communication may be verbal, written, visual or any other. All business houses flourish on information relevant to their business activity. They must have good knowledge about the market, their competition, the government rules, the kind of credit that they can benefit from; the current economic position etc. Relevant information is the key to successful business. Motivation- communication in business is also necessary to increase the motivation in the workers. So if the communication is done properly and is successful in motivating the workers and workers are motivated enough the work gets done easily, efficiently and they will work independently and without supervision. Communication should be used to create a right working environment. So that there is a healthy competitive environment among the workers and also that they can be recognized and rewarded for their achievements. Raising Morale - Another very important objective of business communication (internal) is to keep the moral of the workers high so that they work with vigor and confidence as a team. This is a major factor that can have very serious impact on the success of a business house. But as morale is a psychological factor the state of high morale is not a permanent factor. An organization may have a high morale among the workers for a quarter but may find that the employees have lost their morale in the next quarter. So to keep the moral of employees high an organization has to put continuous effort in that direction. It can be done by maintaining an open door policy, keeping an eye on the grapevine and not allowing harmful rumors to spread. Order and instructions An order is an oral or written command directing the start, end or modifying an activity. This form of communication is internal and is carried out within a business house. Order may be written or verbal. Written orders are given when the nature of work is very important or the person who would perform the task is far away. We should always be careful while handing out written orders and should always keep a copy of the order so that follow up action can be taken. Oral orders are given when work is of urgent nature and the person is nearby. But in both the cases it is very essential to follow up.

Education and training- Now communication can also be used in business to increase the circle of knowledge. The objective of education is achieved by business communication on three levels (a) Management (b) employees (c) general public (a) Education for future managers- Here junior personals in the organization is trained to handle important assignments involving responsibility, so that they can succeed their superiors in the future. (b) Education for newbies- When new personals join an organization they are inducted by educating them about the culture of the company, code of discipline, work ethos etc. This is usually done through a training mode to acquaint the new recruits with the functioning of the organization. (c) Educating the public- Now this is done by advertising, informative talks, newspapers, journals. And this is done to inform the public about the product, the functioning of the company, and various schemes offered by the company. Importance of Communication Impotence Increase employees performance& Morale. Promote sense of belonging Motivate & Inform about decisions Understand roles & Carrier growth Empower employees Facilitates Planning. Brings Co-ordination &Effective Control. Facilitates Better Administration. Creation of Mutual Trust & Confidence.

It is an established fact that the present era is often called the Age of Communication and Information. The importance of communication has been greatly emphasized by all management experts. Communication, like birth, death, growth and decay, is a part of individual life as well as organizational existence. Its importance is self-explanatory and is a common experience of all as well. In recent times, communication has turned into business; rarely would you find Managers, subordinates, salesmen, technicians, foremen, lawyers, auditors, consultants, teachers, doctors or anyone else who is not concerned with the difficulties associated with communication. Managerial Skill Development It has been rightly observed that the number one management problem today is miscommunication. Group activities in context with common goals cannot be accomplished without communication. The entire organization control, coordination and motivation Cannot be accomplished in case of lapses in communication. A common practice among many organizations is moving messages vertically, horizontally and diagonally between Various officially designated positions. The modern industrial scenario relies heavily on

Communication for its augmentation and survival. George R. Terry states: "Communication serves as the lubricant, posturing for the smooth operations of the management process". The reasons for the growing significance of communication can be judged from the following paragraphs: Coordination: Modern complex organizations are large, consisting of numerous employees working towards accomplishing common goals. The organizational structure illustrates many levels of organization hierarchy- both horizontally and vertically. More often than not, this leads to issues related to coordination. Effectual systems of communication encourage better coordination. Coordination is viewed as a necessity among groups; channels are vital for efficient functioning of the organization as a whole. Communication encourages better coordination. Smooth Working: Smooth and uninterrupted working of an enterprise, largely depends on good communication network. Communication takes on a greater role in this direction. Accurate decision-making and efficiency of the organization is anchored in information supply. If messages have obstacles in the course of their flow, it is impossible to bring about a smooth functioning and uninterrupted working of the organization. According to Herbert G. Micks, Communication is basic to an organizations existence from the birth of the organization through its continuing life. Effective Decision-Making: It is essential to have a record of past and present data for immediate and effective decision-making. Communication is the primary base by means of which information is supplied to further help in making decisions. Problem-defining, alternative courses of action, selecting the best option available, can be possible with the provision of relevant and adequate information conveyed to the decision-maker. In event of inadequate or no information, it would be relatively impossible even for the top management to take important decisions. Conversely, it is unlikely to achieve goals and objectives unless the top management has a smooth interaction with all levels of the organization. Co-operation: Co-operation among workers is possible only when there is an exchange of information between individuals and groups and between the management and the employees. This not only promotes the industrial peace but also maximizes production. The two-way communication network enhances co-operation between people. The flow of communication can be smooth and receptive with co-operation, confidence and message flow vertically, horizontally and across the organization. In short, communication promotes cooperation and understanding among employees. Effective Leadership: Leadership implies the presence of a leader and followers. There is always a continuous process of communication between them. Communication is the basis for direction, motivation as well as establishment of effective leadership. The followers have to follow the leader and through conveying of ideas, opinions, feelings and be in constant communication with them. Thus, transmission and reception ensures a two-way traffic, the sine qua non for effective leadership. A manager with good communication skills can become a successful leader of his subordinates Job Satisfaction: Communication is essential for achieving job satisfaction. Management conveys messages, which promote mutual understanding. Reception and recognition provide job satisfaction to employees. Two-way communication creates confidence, which leads to job satisfaction among employees. Openness, straightforward expression of opinions is necessary in this direction.

 Increase Productivity: Communication helps the management in achieving maximum productivity with minimum cost and eliminating waste. These are the main objectives of the management. It is remarked that an archenemy of communication is the very illusion of it. This illusion can be avoided only with an effective system of communication. It is through communication that the workers can be well informed about the process of production, new methods of production and the activities of the workers in a similar organization. Thus, a good system of communication helps the management to achieve Maximum productivity with minimum cost, elimination of waste, reduction of cost etc. Morale Building: Morale and good relations in the organization are essential for achieving goals of the organization and promoting its benevolence goodwill in the public. An effective system, of communication builds good morale and improves human relations. ROLE OF COMMUNICATION IN BUSINESS Communication plays a very important role in an organization. In fact, it is said to be the lifeline of the organization. Everything in the universe, human or otherwise, communicates; though the means of communication may be very different. Communication is very crucial and unavoidable, as we have certain views and opinions, which we want to convey to another person, group or even to the outside world. The basic functions and roles of the management cannot be conducted without communication. Planning organizing, coordinating, budgeting, monitoring, controlling, staffing, delegation; including marketing, production, financing, staffing (human resource managing), research and development, purchasing, selling, etc .Communication is the backbone for organizations success. Types of communication Internal Communication A vital Means of attending to company concern is through effective internal communication it help increase job satisfaction, safety productivity and profit and decrease absenteeism grievances and turnover. External Communication Effective communication to people outside the organization can help create a good reputation & have a positive impact on its ultimate success. Organization cannot function without open and effective communication Above all , your ability to communicate helps you in understanding human relationships. Being an effective communicator you can interact effectively and positively with others. This situation results in an open climate of communication within organization as well as outside it. So communication is of paramount importance for a businessman to be successful in his business. Communication Advantages (company view) 1. Increase productivity. 2. Reduce stress. 3. Better understand what others are saying. 4. Better understand how to get your message across. 5. Enhance relationships & Save time and money

Features of Communication Dynamic Process & Continuous Process Unavoidable & Systematic and Universal Information sharing & understanding. Goal oriented. The various types of communication? (1) Formal Communication: Downward Upward Horizontal Downward Communication: Downward communication flows from a superior to the subordinate staff. Its objectives are: To give directions about some job. To explain policies and procedures. To convey assessment of performance. To explain the rationale of the job. Its limitations are: Under communication or over communication. Delay. Loss of information. Distortion. Resentment by subordinate staff. Upward Communication: Upward communication moves from the subordinate staff to the superiors. Its importance is: Provides feedback to the superiors. Releases the pent up emotions of the subordinate staff. Provides the superiors with useful suggestions. Promote harmony. Its limitations are: Employees are reluctant to express themselves. Employees fear that their criticism may be interpreted as a sign of their personal weakness. Great possibility of distortion. Horizontal Communication: It flows between people at the same level. It is important for promoting understanding and coordination among various people or departments. It is carried on through face to face discussion, telephonic talk, periodical meetings & memos. The various media of communication? Written Communication: It includes letters, circulars, memos, telegrams, reports, minutes, forms and questionnaires, manuals etc. Therefore, everything in written form falls in the area of written communication. Merits: Accurate & Precise Permanent Record & Legal Document Can reach a large number of people simultaneously. Helps to fix responsibility

Limitations: Time Consuming Expensive not in terms of postage but of the time of so many people. Quick clarification is not possible. Oral Communication: Includes face to face conversation, conversation over the telephone, interview, and group discussion. Merits: 1. Saves time 2. Saves money 3. Immediate feedback 4. Can be informal 5. Immediate clarification Limitations: Not possible for distant people in the absence of mechanical devices. Unsuitable for lengthy messages. Message cannot be retained for long No legal validity Greater chances of misunderstanding Not easy to fix responsibility Face to Face Communication: Merits: Expression and gestures makes communication very effective. Very suitable for discussions. Limitations Unsuitable for large organizations. Unsuitable for large gatherings. neffective if the listener is not attentive. Visual Communication: It encompasses gestures and facial expressions, tables, charts, graphs, diagrams, posters, slides, film strips etc. It is suitable only to communicate elementary and simple ideas, can be effective if used in combination with other media. Audio-Visual Communication: It encompasses television and cinema films that combine the visual impact with narration. Computer based Communication: It includes e-mails, voice mails, cellular phones, fax etc. Advantage: The quickest means of communication. The barrier of space is conquered. Video-conferencing can replace personal meetings. Storage and retrieval of permanent record had become easier. Limitations: Uncertain legal validity. The virus malady. Fear of undesirable leakage.

Why do we communicate? The purpose of any given communication may be: a) to initiate some action; b) to impart information, ideas, attitudes, beliefs or feelings; and /or c) to establish, acknowledge or maintain links or relations with other people. Initiating Action It means to carry out the desired course of action in other words, giving them a reason (other than ones own want or need) to perform that action. Persuasion of this kind is likely to be a major element in marketing and sales: a sales reply cannot simply ask a customer to buy the product because she, the sale rep, needs a success. Imparting Information Imparting information, ideas, attitudes, beliefs and feelings may have any number of specific purposes. Creating awareness Creating understanding Persuading others Influencing others Information gathering is a constant activity of human beings. We receive a great deal of data and information in our daily lives, only some of which we seek or consciously absorb. Think about it: news bulletins, books, bank statements, business information, gossip, thing people tell you, things you ask them. This list is endless. Remember that other people may be seeking information in the messages you send (and in the tone of your voice and other indications of what is between the lines). This information may or may not be something you wish to communicate: Advantages of Communication in Career Your success in your career is based on your ability to do well in written and oral communication. This ability to communicate effectively is a valuable asset for you. If your career requires mainly mental rather than manual labor, your progress will depend on how effectively you communicate your ideas to others who need or should receive them. Strong communication skills are found in every job description listed by companies advertising positions. Communication is a primary responsibility in many careers, such as customer relations, labor relations, marketing personnel, public relations, sales, and teaching. Communication is also required in government and nonprofit organizations. Their skills play a major role at every level. Even if your work is mainly with figures, as in the accounting profession, the ability to communicate to those who read your financial reports is necessary.

Cultural Diversity at work Todays workplace is increasingly divers in age, gender, and national origin. Diversity has brought problems to organizations, but it has also brought strengths. Changing demographics have contributed to change in management styles, making effective communication central to success in carrying out the organizations business. Changes Affecting the Workplace The world of work is changing dramatically. The kind of work you'll do, the tools you'll use, the form of management you'll work under, the environment in which you'll work, the people with whom you'll interactall are undergoing a pronounced transformation. Many of the changes in this dynamic workplace revolve around processing and communicating information. As a result, the most successful players in this new world of work will be those with highly developed communication skills. The following business trends illustrate the importance of excellent communication skills. Flattened management hierarchies. To better compete and to reduce expenses, businesses have for years been trimming layers of management. This means that as a frontline employee, you will have fewer managers. You will be making decisions and communicating them to customers, to fellow employees, and to executives. Increased emphasis on self-directed work and project teams. Businesses today are often run by cross-functional teams of peers. You can expect to work with a team in gathering information, finding and sharing solutions, implementing decisions, and managing conflict. Good communication skills are extremely important in working together successfully in a team environment. Heightened global competition. Because companies are moving beyond local markets, you may be interacting with people from many different cultures. As a successful business communicator, you will want to learn about other cultures. You'll also need to develop multicultural-skills including sensitivity, flexibility, patience, and tolerance. Innovative communication technologies. E-mail, fax, the Web, mobile technologies, audio and video conferencingall these technologies that you will be communicating more often and more rapidly than ever before. THEORIES OF COMMUNICATION Communication does not occur haphazardly. Nor does it happen all at once. It is more than a single act. It is a dynamic, transactional (two way) process that can be broken into different phases. To have a better understanding of the process of communication Electronic Theory One very influential theory is called the mathematical or electronic theory of communication. This idea emphasized the technical problems of transmitting a message from a sender to a receiver It is based on, and uses the language of, electronics. The message begins with an information source, the mind of the sender (writer or speaker), who encodes a message into words and sentences. The message is transmitted as a signal (marks on paper or sound waves) through a channel, where it may be distorted by noise (such as smudged typing or acoustical problems). As a last step, the receiver (listener or reader) decodes the message. Look at the following illustration of this theory.

The electronic theory is helpful because it introduces the ideas of senders and receivers and of possible interference. It emphasizes one important aspect of communication: accuracy. Its usefulness is limited, people are not machines. It may be possible to design perfectly . Social Environment Theory Social environment theory is of the social and behavioral scientists. It says that we must consider the situation, the social context in which we will work. When we work and communicate together, we all participate in a social situation Within that situation, each agrees to assume certain roles such as compromiser, initiator, or encourager based on our part in the activity. We each have a certain status prescribed officially, such as our job title. We need to understand the rules, or the culture, of the environment in order to communicate: both the official rules such as company policies and practices and those unwritten rules regarding to whom, how, and when, and for how long it is appropriate for us to communicate within a certain organization. Look at the following illustration of this theory. Within a certain environment Social environment is helpful because it adds the important dimension of the specific social situation. Too often, inexperienced business people neglect to take into account role status and rules when they communicate. A nicely tailored message may still fail to achieve its objective if you write to the wrong person at the wrong time. Rhetorical Theory Third set of theorists add more dimensions to our understanding of the communication process: communication is not linear, but circular; not just sending a message to be received, but producing a response; not static, but dynamic. Rhetorical theorists provide an important addition to a communication model for business communicators Many people in business get so much absorbed in the accuracy of their message and appropriateness of the situation that they forget the third crucial variable, producing the desired response from their audience. This model is circular, not linear. In fact, perhaps the most important difference between business communication and other forms of communication is this circular quality: your business communication effectiveness depends on the result you achieve. How can you achieve desired response? Thats what the rest of this course will be about. You will learn not only how to be more correct and accurate, and how to be more sensitive to the situation, but also how to identify your audiences needs in order to become a better communicator. Components of communication or The Communication Process or Cycle Studying the communication process is important because you coach, coordinate, counsel, evaluate, and supervise through this process. It is the chain of understanding that integrates the members of an organization Context Idea: Information exists in the mind of the sender (who is the source). This can be a concept, idea, information, or feelings Every message, whether oral or written, begins with context. Context is a broad field that includes country, culture, organization, and external and internal

stimuli. Another aspect of context is the external stimuli Internal stimuli have effect on how you translate ideas into a message. Your attitudes, opinions, emotions, past experiences, likes and dislikes, education, job status and confidence in your communication skills, all influences the way you communicate your ideas ,especially important in your ability to analyze your receivers cultural, viewpoint ,needs ,skills ,status, metal ability, experience and expectation. You must consider all these aspects of context in order to communicate a message effectively. Sender / Encoder The source initiates a message by encoding the idea (or a thought) in words or symbols and sends it to a receiver. The message is the actual physical product from the source encoding. When we speak, the speech is the message. When we write, the writing is the message. When we gesture, the movements of our arms and the expressions of our faces are the message While sending a message, you are the encoder, the writer or speaker, depending on whether your message is written or oral you choose symbolswords, graphic, picturesthat express your message so that the receiver(s) will understand and react as you desire Message The message is the main idea that you wish to communicate; it is of both verbal (written or spoken) symbols and nonverbal (unspoken) symbols. First decide exactly what your message is. Also consider the receiver of your message. You must also consider your context and your receivers as well. How your receiver will interpret your message and how it may affect your relationship. Medium/Channel The channel in the communication process is the medium that the sender uses to transmit the message to the receiver. Care needs to be exercised in selecting the most effective channel for each message. Even though both an oral and a written medium may be appropriate to transmit a particular message, one medium may be more effective than the other. To illustrate , lets assume that an individual desires an immediate reply to a question. Although the message could be in either an oral or a written form, the oral medium most likely will be more effective because of the immediacy, if required In selecting an appropriate channel, the sender must assess the following factors, as the situation demands: -need for immediate transmission of message, (Fax instead of letter) -need for immediate feedback, (Phone instead of fax) -need for permanent record of the message, (Written rather than oral) -degree of negotiation and persuasion required, (Personal meeting face-to face) -the nature of the content of the message. (Has to be a contract written) Communication rarely takes place over only one channel; two or three even four channels are normally used simultaneously Example: in face-to-face interactions, we speak and listen but we also gesture and receive these signals visually.

Oral Communication The oral communication brings back immediate feedback It has a conversational nature with shorter words and sentences It stresses on interpersonal relations This medium needs less technical details Its sentence structures are simple Written Communication This medium is more formal with focus on contents It can convey any amount of technical information It is best for permanent record This medium uses longer words and longer sentences. It brings delayed feedback Internal communication consists of sending messages inside your organization. External communication consists of sending messages outside your organization. For internal communication, written media may be: memos, reports, bulletins, job descriptions, posters, notes, employee manuals, electronic bulletin boards, even internal faxes. Oral communication may take the form of staff meeting reports, face to face discussions, presentations, audio tapes, telephone chats, teleconferences, or videotapes Receiver / Decoder The receiver / decoder of your message is your reader or listener. He may be influenced by the context and by the external and internal stimuli. The receiver like sender receives messages through the eyes and ears but is also influenced by nonverbal factors such as physical environment, physical appearance, body movements, voice quality, touch, taste, and smell. All factors of a message are filtered through the receivers view and experience in the work. Therefore, miscommunication can occur when personal biases and individual values cause the receiver to misinterpret the senders internal message. Feedback Feedback can be oral or written; it can also be an action, such as receiving in the mail or an item you ordered. Sometimes silence is used as feedback, though it is not very useful. Senders need feedback in order to determine the success or failure of the communication There are five main categories of feedback. 1. Evaluation: Making a judgment about the worth, goodness, or appropriateness of the sender's statement. 2. Interpretation: Paraphrasing - attempting to explain what the sender's statement means. 3. Support: Attempting to assist or support the sender. 4. Probing: Attempting to gain additional information, continue the discussion, or clarify a point. 5. Understanding: Attempting to discover completely what the sender means by his/her statement.

Noise: The presence of noise can result in fairly significant problems in the communication process. Unfortunately, communication is effected by noise, which is anything whether in the sender, the transmission, on the receiver For example: A noisy environment may hinder the development of a clear thought. Encoding may be faulty because of the use of ambiguous symbols. Transmission may be interrupted by noise in the channel, such as a poor telephone connection, misprinted text, or maybe a typographical mistake