Communication is the process of exchanging information, ideas, feelings and

understanding between sender and receiver. It is the process of conveying meanings

between two persons. It is a systematic process of conveying, listening and understanding
something between two or more persons through words, figures, symbols pictures, body
language, colors and sounds.
Characteristics:
-process of interaction/ inter-active process between persons
-two-way process between the sender and the receiver (exchange of ideas)
-is a social process
-adapted to the changing needs of the business environment
-involves at least two persons (sender and receiver)
-should be properly planned (to reach the target audience)
-should be performed by all superiors and subordinates in all levels of the
organizational hierarchy
-aims to extract desired response/data from the receiver
-expressed through words, data, symbols, body language, pictures, figures and
sounds
-may be oral, written or gestural
-may be directed downward, upward, horizontally, or on the same level
-end result = attain harmony, understanding and cooperation in the organization
Objectives and Goals
-to keep employees well-informed
-provide employees with proper orders/instructions
-gather information (from employees) that will help in decision making
processes
-make employees interested in their job & enjoy working in the company in
general
-express managements interest & satisfaction in its personnel
-reduce fast turn-over of personnel
-motivate the employees
-instill in employees personal pride and joy being a part of the company
Importance
-facilitates efficient functioning of the enterprise
-ensures proper planning
-facilitates sound decision making
-is at the heart of the process of organizing
-ensures effective staffing
-essential for leading people
-enhances motivation and morale
-facilitates good coordination

-required for effective control

-promotes democratic management
-promotes goodwill, understanding, and the good image of the organization
-avoids illusion and ignorance
-facilitates organizational change
Process
Develop An Idea develop an idea or thought that the sender wishes to convey.
Unless there is a worthwhile message to transmit, all other steps will become
useless
Encode put into suitable words, charts or other symbols for transmission
Transmit transmission by the method chosen (channel of communication)
Receive the message is transferred to the receiver
Decode the message is decoded so that it can be understood
Use the receiver uses the communication (ignoring it, performing the task
called for, storing the information or doing otherwise as directed)
Four Types of Communication Networks
Chain Network vertical line from top to bottom and bottom to top of the
organizational hierarchy
Circular Network moves in a circular way; individuals can communicate
with their immediate left or right, but not with any other person in the
organization/group
Wheel or Star Network the members of the organization usually do not
communicate directly with each other; members communicate through one
superior/manager; the manager acts as the central point; autocratic network
Free-flow/ Decentralized/ All Channel Network lines are not structured;
communication can be done freely and frankly with all other members; informal
network
Categories:
Classifications:
On the basis of organizational structure
Formal Communication communication which travels through the
formally established channels; establishes single path communication
channels; established by the management; -may be directed downward,
upward, horizontally, or on the same level
Informal Communication - Informal communication takes place on the
basis
of informal relations between the members of the group. It is on the basis of
Personal Communication in nature and not a formal communication. It does not
flow through the official lines of the chain of command and channels of

communication. Informal communication is sometimes referred to as grapevine.

It transmits information about what people are doing. It often
leads to rumors about the organization.
Four Networks in Transmitting Information
1. Single Strand One and one person communication
2. Gossip Chain Every member of the informal group talks with
everyone and it is usually about personal matters
3. Probability Chain Communication of information is done randomly
4. Chester Chain Grapevine communication generally operates like a
Chester chain
On the basis of direction
Downward Communication - Downward Communication is one that
flows from top to bottom or from superior to subordinates down the lines of
the organizational structure.
Upward Communication - Upward communication is one that flows from
bottom to top management or from subordinates to superiors along with the
chain of command in the organizational hierarchy. The communication may be
in the form of progress reports, problems, suggestions or recommendations,
opinions, ideas, grievances, complaints, appeals and requests, and explanations.
Horizontal Communication - The Horizontal or Lateral communication refers
to the communication between personnel of the same level or position. The
objective of horizontal communication is to promote good coordination and
integration among the different departments or offices.
Diagonal Communication - The Diagonal communication refers to the
communication between people who are neither in the same department nor on
the same level of organizational hierarchy. For example, the cost accountant,
who is interested in conducting a promotion cost analysis, may request
marketing representatives to report directly to him. When marketing
representatives forward reports directly to the cost accountant, then, it is said to
be a diagonal communication. They need not forward their reports first the
marketing executive who shall, in turn, forward their reports to the cost
accountant. It helps to save time and to speed up decision-making.
On the basis of mode of expression
Written Communication - Written communication is expressed through
written words. It may be expressed through groups, charts' diagrams or pictures
with or without words. It may be in the form of letters, circulars, notes,
memoranda, reports, pamphlets, brochures, handbooks, manuals and others.
Oral or Verbal Communication - Two Shades (Oral or Verbal)
Communication is expressed through words-of-mouth or spoken words. It may
be in the form of face-to-face conversation or through any electronic mode such
as telephone, cellular phone, intercom and other means. Oral communication
may also be in the form of one-to-one conversations such as meetings, group
discussions, joint consultations, announcements, group meetings, speeches,
lectures, radio and T.V. broadcasts.

Gestural or Non-Verbal Communication - The Gestural (Non-verbal)

communication is a mode of communication through postures or gestures of the
different parts of the body, such as movement of the lips, wink of an eye, the
wave of hands, movement of heads, facial expressions, tone of voice, and any
other movement of body or body parts which may be used to transmit the
message.
Non-verbal mode is considered as one of the effective modes of
communication. The feelings, emotions and attitudes of the person can be
easily conveyed. lt can also easily convey the reactions and responses of the
listener of the message or information

Commandments of Good Communication

-Seek to clarify your ideas before communicating
-Examine the purpose of each communication
-consider the total physical setting
-consult with others in planning the communication
- be mindful while you communicate of the overtones as well as the basic
content of your message
-take the opportunity to convey something of help or value to the receiver
-follow-up your communication
-communicate for tomorrow as well as for today
-be sure that your actions support your communications
-seek not only to be understood but to understand
Barriers
-Poorly Expressed Message
-Complex Organizational Structure
-Status Barriers
-Filtering Information
-Semantic Barriers
-Language Barriers
-Different Backgrounds
-Emotional Attitude
-Undisclosed Assumptions
-Inadequate Attention or Half-Listening
-Barriers Due to Lack of Mutual Trust
-Resistance to Change
-Mechanical Barriers
Strategies to Effective Communication
-Clarity and Completeness
-Proper Language
-Proper Channel or Medium

-Sound Organizational Structure

-Training and Development of Employees
-Effective Listening
-Consultation and Participation
-Motivation, Mutual Trust, and Confidence
-Integrity Factor
- Use of Formal Communication
-Effective Feedback Mechanism
-Proper Gestures and Tones
Effective Listening
-enable the receiver/s to take exactly the idea the sender wishes to convey
*Stop Talking
*Put the talker at ease
*Show the talker you want to listen
*Remove Distractions
*Empathize with talkers
*Be patient
*Hold your Temper
*Go easy on argument and criticism
*Ask questions
*Stop Talking

Motives expressions of personal needs and are internal in nature

Incentives external stimuli to persons; things perceived in the environment that are
deemed to be helpful in attaining personal goals
Tensions created by needs which are turned by ones culture into wants
Basic Psychological Needs/ Primary Needs indispensible for survival
Social and Psychological Needs/ Secondary Needs bring about a number of motives
in each individual
Motivation the way in which urges, drives, desires, inspirations, or needs direct and
explain the behaviour of human beings
Abraham Maslows Hierarchy of Needs as one becomes more self-actualized and
self-transcendent, one develops wisdom and automatically knows what to do in a wide
variety of situations
1) Physiological Needs
2) Safety/Security
3) Belongingness and Love

4)
5)
6)
7)
8)

Esteem
Cognitive
Aesthetic
Self-actualization
Self-transcendence

Need Priorities at Work needs are highly influenced by ones environment; The
importance of a need to an employee depends in part on the degree of importance that
said need has to his social and cultural environments
Employees Wants wants are derived from needs; wants are motivating factors
conditioned by the environment; an incentive is more motivating than compensation; the
simple incentive as leading toward satisfactory goals
Perception mans reaction to incentives are contingent on how he perceives the whole
situation; a man evaluates what he perceives and decides to act on the basis of his
decision which may be either rational or emotional; a person tends to perceive what he is
previously led to believe he will perceive
Maintenance Factors/ Satisfiers necessary in the job to maintain a reasonable level of
satisfaction in the employees; operate to dissatisfy employees when the needed
conditions are absent but their presence does not motivate employees in a strong way
Motivational Factors/ Motivators a set of job conditions operate primarily to build a
strong motivation and high job satisfaction, but their absence is rarely strongly
dissatisfying
Herzberg Two Factor Theory
-Motivators related to job content and are in many instances job-centered
Six Motivational Factors:
1) Achievements
2) Recognition
3) Advancement
4) Work Itself
5) Possibility of growth
6) Responsibility
-Maintenance Factors relate to job context and are mostly environment-centered
Ten Maintenance Factors
1) Company Policy and Administration
2) Technical Supervision
3) Interpersonal relations with Supervisor
4) Interpersonal Relations with Peers
5) Interpersonal Relations with Subordinates

6) Salary
7) Job Security
8) Job Security
9) Personal Working File
10) Working Conditions and Status
Intrinsic Motivators direct motivation to perform the work because the act of
performance is in itself rewarding
Extrinsic Motivators motivation which take place after work or away from work, and
which provides no direct satisfaction at the time the work is done
Job Enrichment providing improvements in terms of motivators; intends to keep the
maintenance factor steady or higher while increasing motivational factors
Job Enlargement the former seeks to bring more motivators to the job by offering the
employee with more responsibility, more intrinsically satisfying work functions and more
power over his environment; the job is made more complex and wider in scope in order
to make full use of each employees intellect and skills
H Vrooms Motivational Model a persons motivation toward an action at a particular
time is determined by the anticipated values of a positive and negative outcomes
Motivation = Valence x Expectancy
Motivation the product of the anticipated values from an action and the perceived
probability that these values will be achieved by the action; the strength of a drive
towards an action
Valence anticipated value and is defined as the strength of a persons preference for
one outcome in relation to others
Expectancy perceived probability; the strength of the belief that a particular act will be
followed by a particular outcome
Acquired Needs Theory/ Three-Need Theory/ Learned Need Theory an individuals
specific needs are acquired overtime and are shaped by ones life experiences
*Achiever Seekers seek to excel and appreciate frequent recognition of how well they
are doing
*Affiliation Seekers look for harmonious relationships with other people; seek
approval rather than recognition

*Power Seekers want power either to control other people(for their own goals) or to
achieve higher goals (for the greater good)
Morale the attitude of individuals and groups toward their work environment and
toward voluntary cooperation to the full extent of their ability in the best interests of the
organization
Morale Surveys:
1) Objective Surveys present both a question and a choice of answers in such a
way that the respondent merely has to mark the answer which is most closely
reflective of his response
2) Descriptive Surveys present the questions and allow the respondent employee
to answer in his own words
3) Projective Surveys present abstract situations unrelated to the job or the firm
and ask the worker to analyze and comment upon them; interpret attitudes
Existing Morale Indicators:
1) Labor Turnover
2) Productivity
3) Waste and Scrap
4) Quality Records
5) Absenteeism and Tardiness
6) Reports of counselling, insurance and similar services
7) Grievances
8) Exit Interviews
9) Accident Reports
10) Medical Records
11) Suggestions
12) Training Record
Appraising and Rewarding Performance:
-Performance appraisal has to do with comparing an individuals assignment. If
performance is rated high, the individual is by and large rewarded one way or another.
Factors of Judging Performance:
1) The requirements, duties and responsibilities and the standards of satisfactory
performance
2) The nature of the man and the extent or quality of his performance
Objectives of Performance Appraisal:
1) Provide feedback on employee performance
2) Serve as a basis of personnel action
3) Serve as managements guide in employee counselling and discipline

4) Improve better relations

5) Improve supervision by making the superior more conscious on his duties in
supervising subordinate
6) Develop supervisors
7) Serve as a basis for changes
8) Identify training needs and areas of management development
The Need to Evaluate Performance of Employees:
Employees, by and large, will know:
1) How they are performing
2) What is expected of them
3) How well they are meeting those expectations
4) How they can improve
5) How their superiors gauge their performance

Management
1) Planning and Budgeting establishing
detailed steps and timetables for
achieving needed results, and then
allocating the resources necessary to
make that happen
2) Organizing and Staffing establishing
some structure for accomplishing plan
requirements, staffing that structure
with individuals, delegating
responsibility and authority for carrying
out the plan, providing policies and
procedures to help guide people and
creating methods or symptoms to
monitor implementation
3) Controlling and Problem Solving
monitoring results versus plan in detail,
identifying deviations, and organizing
people to solve these identified
deviations or problems
4) Produces a Degree of Predictability and
Order and has the potential of
consistently producing key results
expected by various parties

Leadership
1) Establishing Direction
developing a vision of the future,
often the distant future and
strategies for producing the
changes needed to achieve that
vision
2) Aligning People communicating
the direction by words and deeds to
all those staff whose cooperation
may be needed as to influence the
creation of teams and coalitions
that understand the vision and
strategies, and accept their validity
3) Motivating and Inspiring
energizing people to overcome
major political bureaucratic and
resource barriers to change by
satisfying very basic, but then often
unfulfilled, human needs.
4) Produce Change, often to a
dramatic degree and has the
potential of producing extremely
useful change

Comparison: Leadership and Management Skills

Leader
1) Gain power through their actions and
personal relations
2) Are found throughout an organization
3) Have followers who desires to be in the
team
4) Depend on people for success
5) Provide vision in the terms of the real
benefit to you
6) Have self-conceived goals to better the
organization
7) Strive to change the organization to best
meet needs as they perceive them
8) Often view rules and procedures as
bureaucratic red tape
9) Work for results
10) Work through their people

Manager
1) Have positional power on which to rely
2) Are found in the organizations higher
echelons
3) Have subordinates who have been
assigned to them
4) Depend on the system for success
5) Use the this is your job.. approach
6) Attempt to meet the goals provided by
the organization
7) Work to maintain the organizations
status quo
8) View rules and procedures as necessary
to provide order
9) Follow directives
10) Work with charts and computer
printouts

Leader
1)
2)
3)
4)
5)
6)
7)
8)
9)
10)

Visionary
Passionate
Creative
Flexible
Inspiring
Innovative
Courageous
Imaginative
Experimental
Independent

Proactive Leadership
Taking charge in a conscious,
deliberate, active manner
Looking ahead and anticipating the
desired future
Planning for what will be accomplished
Strategizing to prevent potential
problems so as to spend less time on
fire-fighting and more time on fireprevention
1) Takes responsibility for actions
2) Has a can do attitude
3) Feels in control of the environment
4) Focuses on solutions or results wanted
5) Thinks in terms of new possibilities
6) Seeks options and focuses on

1)
2)
3)
4)
5)
6)
7)
8)
9)
10)

Manager
Rational
Consulting
Persistent
Problem-Solving
Tough-minded
Analytical
Structural
Deliberative
Authoritative
Stabilizing

Reactive Leadership
Living in an after-the-fact mode
Spending most of the time reacting to
events after they have occurred
Waiting passively for things to happen
and resolving problems to arise
Fire-fighting that keeps leaders so
occupied that sometimes they dont
have time to think about what caused
the fires
1) Avoids blame or responsibility
2) Sees reasons why things cannot be
done
3) Feels in no control of the environment
4) Focuses on problems, obstacles or
what to avoid

opportunities in situations
7) Is opportunity-oriented concentrates
on finding strengths and resources
8) Makes choices easily
9) Is driven to excel by challenges and
risks
10) Is open to change
11) Is present and future-oriented
12) Enjoys an inner calmness
13) Learns and grows from mistakes
14) Energized by vitality
15) Has a positive self-image and high
self-esteem

5) Is limited by what worked in the past

6) Is blinded by the problems and
obstacles in a situation
7) Is problem-oriented concentrates on
finding weaknesses and problems to
fix
8) Finds it difficult to choose and decide
9) Is afraid of taking risks and facing
challenges
10) Is resistant to change
11) Cannot let go of the past
12) Suffers excessive inner stress
13) Is devastated by failure
14) Runs out of energy quickly
15) Has a negative self-image and low self
esteem

Functions of Proactive Leadership:

1) Provides a vision for the organization
2) Communicates the organizational vision
3) Assumes responsibility and exercises initiative
4) Highly goal-oriented
5) Sets an example for others, personifies the ideal for the group and expresses the
core values of the organization

-Gives meaning and purpose to their lives and work and provides a motivating
environment for excellence
-Creates a challenging, empowering organization rather than a stifling, dehumanizing one
Shared Vision (Essential to):
-Communicate and stress open communications
-be accessible and visible
-involve people to help plan for change
-build a climate of trust
Different Leadership Styles
1)
2)
3)
4)

Autocratic authoritarian Style

Participative or democratic style
Free-rein or laissez-faire style
Paternalistic style

Leadership is loyalty to God, country and people

Enthusiasm, effort to help and secure others

Vision Driven Leadership

-Vision: an ideal and unique future state crystallized as an image or brief declaration
*operates as your dynamic force energized by voltage and vitality
*provides, lift, stretch, clarity and focus
*guides you to see beyond the immediate
*makes you future-oriented, concentrating on results rather than on activity
*shows you where you are going and why you are going there
*helps you spot opportunities that others have not seen
*gives you the driving power to see you through tough times
*makes the unreachable reachable and worthwhile future

Advocacy, action and accomplishment

Dedication, discipline, dignity, decency, devotion to duty and

decisiveness for the general welfare

Excellence and exemplary work for others to emulate

Reliability, responsibility, respect for the law and the rights of others, and
reconciliations for peace and unity

Sincerity, service, self-sacrifice, social justice to make life better for mankind

*Involvement, interaction and mobilization are keys to making dreams and visions to
reality; leaders encourage collaboration and work in ways that maximize the
commitment of people.

Humility, honesty, honor, helpfulness, and

hard work for accomplishment and fulfilment

Integrity, interest, initiative, and idealism

Shared Vision:
-Attracts people to it and aligns them in the same directions
-Keeps people focused, energized and on target

Patience, perseverance, beyond partisanship, religion or creed;

it works for peace, progress, and prosperity to mankind

Concepts of Decision-Making:
1) Information only the needed information must be obtained; the more
information, the better is not true, too much information can reduce the quality
of a decision
2) Alternatives probabilities one has to select from; searching for pre-existing
alternatives will result in less effective decision-making; alternatives can be
identified or developed
3) Criteria- the alternatives are evaluated on how well they possess each criterion
(advantages and disadvantages)
4) Goals a component of goal identification should be determined in every
instance of decision analysis: what is it you want to accomplish? Which should I
choose? What should I do? What are my goals? These questions should be
clarified in goal setting.
5) Value how desirable a particular outcome is, the value of the alternative,
whether in pesos, satisfaction or other benefits
6) Preferences reflect the philosophy and integrity of the decision maker
7) Decision Quality evaluation whether or not a decision is good or bad: The
decision must meet the stated objectives most thoroughly and completely; The
decision must meet the stated objectives efficiently with concern over cost,
energy and side effects; The decision must take into account valuable byproducts or indirect advantages
8) Acceptance a vital factor that occasionally runs with one of the quality criteria;
those who must implement the decision/ who will be affected by it must accept
it both intellectually and emotionally; a decision that is socially unacceptable
will not work, on decisions that are implemented thoroughly will work the way
they are intended to.
Decision Making
-the study of identifying and choosing alternatives based on the values and
preferences of the decision maker
Making a decision involves the selection of alternatives to be considered. It is
not only to identify as many of these alternatives as possible but to select the one that best
fits with the goals, desires, lifestyle, values and so on of the decision maker.
-is the process of sufficiently reducing uncertainty and doubt about alternatives
to allow a reasonable choice to be made from among them
Types of Business Decisions
1) Programmed Decisions standard decisions which always follow the same
routine
2) Non-Programmed Decisions are non-standard and non-routine; each decision
is not quite the same as any previous decision
3) Strategic Decisions affect the long-term direction of the business firm; are of
the highest level

4) Tactical Decisions - are medium-term decisions about how to implement

strategy
5) Operational Decisions short-term decisions about how to implement tactics
Kinds of Decisions
1) Decisions Whether the yes/ no, either/ or, decision that must be made before
we proceed with the selection of the alternative
2) Decisions Which involve a choice of one or more alternatives from among a
set of possibilities, the choice being based on how well each alternative
measures up to a set of predefined criteria
3) Contingent Decisions decisions that have been made put on hold until some
conditions are met
The Dos and Donts of Decision-Making
Do:
1) Be honest
2) Accept the responsibility
3) Use time wisely
4) Have confidence
Dont:
1) Have unrealistic expectations
2) Make snap decisions
3) Take unnecessary action
4) Fool yourself
Quality of Decision-Making
1) Continuous training and development of managers in decision-making skills
2) Complete good information about the problems and alternatives
3) Management skills in analysing information and handling its shortcomings
4) Experience and natural ability in decision-making
5) Risks and attitudes to risks
6) Human factors
Constraints on Decision-Making
1. Internal Constraints
1.1. Availability of funds and resources
1.2. Existing business policy
1.3. Peoples ability and feelings
2. External Constraints
2.1. Constitutional mandate, laws, rules, and regulations
2.2. Competitors
2.3. Lack of technology
2.4. Economic and climate condition

2.5. Legislations
2.6. Lack of supplies (material)
2.7. Lack of manpower
Steps in Decision-making
1. Define the Problem
1.1. Size up the situation
1.2. Set goals and priorities
2. Re-evaluate the situation
2.1. Consider your options
2.2. Dont make unnecessary decisions
3. Gathering Information
3.1. Use your time wisely
3.2. Seek advice
3.3. Use all resources
4. Think of alternatives
4.1. Be open
4.2. Dont judge
4.3. Record your ideas
5. Choose an alternative
5.1. Think ahead
5.2. Be practical
5.3. Be creative
6. Put your decision to work
6.1. Take action
6.2. Inform others
6.3. Follow up your plan
6.4. Be sure that the problem has not returned or taken another form
Approaches to decision-making
1. Authoritarian Method the manager makes the decision based on the knowledge and
information he was able to gather.
2. Group Method the members of the group share together their ideas and analyses,
and agree among themselves what decision to adopt and implement
2.1. Free Discussion the problem is simply put on the table for the group to talk
2.2. Developmental Discussion or structured discussion the problem is broken
down into steps and smaller parts with specific goals; ensures systematic
coverage of a topic; ensures that all members of the group are talking about the
same aspects of the problem at the same time
The decision-making process
1. Recognize the problem
2. Analyze the problem

3.
4.
5.
6.
7.
8.

Consider your goals

Look for alternatives
Select the best alternative
Put your decision into action
Accept the responsibility
Evaluate your results

Improve your decision-making

1. Become aware of your own and you familys values, the conditions which
support these values, and the choices which are available
2. Develop sensitivity to the individual responses of persons affected by the
decision
3. Be objective in viewing the problem that demands decisions
Planning for decision-making
Planning makes decisions to be made in a more comfortable and intelligent way;
makes decisions easier by providing guidelines and goals for the decision; a type of
decision simplification technique
Benefits of Planning:
1. Allows the establishment of independent goals
2. Provides a standard of measurement
3. Converts values to action
4. Allows limited resources to be committed in an orderly way
Risk-taking
Decision-making involves a degree of risk, such that it would be helpful to
examine risk and risk analysis, in order to gain an understanding of what is involved.
General Comments on Risk-Taking
1. Only the risk takers are truly free
2. There is really no such thing as permanent security in anything on earth
3. You are supposed to be afraid when you take risks
4. Risk-taking normally involves a degree of separation anxiety
Guidelines on Risk-taking (Robert Harris)
1. Decide whether the risk is necessary or desirable
2. Risk for the right reasons, when you are calm and thoughtful
3. Have a goal
4. Determine the possible loss as well as the gain
5. Try to make an accurate estimate about the probability of each case
6. When possible, take one risk at a time
7. Use imaginary or role paying
8. Use a plan
9. Act decisively
10. Dont expect complete success

Risk management strategies

1. Dismissing extremely remote or unrealistic possibilities
2. Insofar as possible, avoid catastrophes
3. Recognize the tradeoffs
4. Maximize expected values