Definitions of Communication

1. Communication is transfer of information from one person to another, whether or not it elicits confidence. But the information transferred must be understandable to the receiver G.G. Brown. 2. Communication is the intercourse by words, letters or messages- Fred G. Meyer.

Importance of Business Communication

In business, reputation and credibility need to be built up in order to get clients trust and confidence. Having a sense of professionalism will bring a lot to the business, especially in a long term relationship with employees and clients. There is a need to make sure that every business deal is attended to promptly. Business communication encompasses not only communicating with external contacts but also with employees within the organization. This will aid the business in being well-organized and every matter whether it is a problem, an inquiry or a sales letter will be attended to properly and promptly. It does not mean that only a clients inquiry should be responded promptly but also feedbacks or problems arising inside and outside the business as well. This is done to have a balance within the internal and external factors, especially in relation to dealing with people, whether they are employees or other external contacts. A human being starts communicating as soon as he starts producing his first noise in the act of drawing his parents attention. Every emotion that we portray on our faces, the movement of our hands, the way we look at someone and our speech instantly communicates our ideas to others. Communication is highly necessary for our society, as it is only through exchange of ideas and co-operation that a society can grow and develop. Effective communication is essential to learn, to teach, to make relationships and to maintain them. In the modern world, the importance of communication has surpassed all previously slated levels. Interestingly, the means of communication has outnumbered the means of food production in the world today. The communicative technologies in the world have been increasing not only in number, but also in speed, accuracy and clarity. Let us take a closer look and perform an in-depth analysis of importance of communication in the modern world.

Significance of Communication
For Transfer of Ideas To transfer ideas from one person to another, communication plays a vital role. Every human being has some ideas that are unique to his own mind. Many of these ideas can be implemented in real life and can turn into major creations too. But to make the transition from just a thought to an implementation, it requires effectual communication. Hence, the idea should be communicated as a plan, drawing or description so that it can be created further. For Interacting With Society It is very important that we interact with our surroundings and people living in the surroundings. Whenever we talk to someone, we, unknowingly or unknowingly, react to his/her questions,

actions or comments. This is communication. While corresponding to someone in any way, we are actually communicating. Healthy communication is essential for a healthy society. For Education To educate someone, we need to communicate the ideas in the syllabus or the study material to the student. Education involves a collection of all kinds of communication i.e., audio, video, books and lectures. However, herein the deal is not just to communicate, but to communicate effectively. Inefficient communication can lead to transfer of ambiguous knowledge. To Update Oneself In the modern world, nothing is more important than staying up-to-date. Only through proper channels of communication can people be updated with current affairs and important events across the globe. Communication is the actual transfer of information through various mediums in such a way that it caters to the needs of people from different strata of life. News can actually stand for as a collection of information from the 4 directions, i.e. North, East, West and South, that, in turn, is delivered to us through various communication channels. For Entertainment Entertainment, today, is mostly based on the channels of mass communication, like films and television. Moreover, theatre and other arts also communicate certain ideas to its audience. Internet is another common platform for entertainment, which again is a mode of communication. In short, we can safely conclude that communication and entertainment are entwined in todays world. To Understand the World Unless we communicate with the world, we will never understand the way things function and how things are piled up and related to one another. People are just a fragment amongst these things. Did you know that other elements of the world also communicate to us, but in their own ways? We need to interact with the environment in order to understand life. People who do not communicate tend to get isolated, which thereby leads to many problems. COMMUNICATION Overview An organizations effectiveness hinges on good communication, as does the effectiveness of groups and individuals inside the organization. This chapter focuses on the nature of communication, one of the most important processes in an organization. The communication process and its functions are described, as are communication problems and how to avoid them. Methods and patterns of communication in organizations are also considered. Communication is the sharing of information between two or more individuals or groups to reach a common understanding. Communication has two components: the sharing of information and the reaching of a common understanding. (This does not mean agreement, rather an understanding of the message). If people either do not receive the information or understand the meaning, then communication has not taken place. Communication is critical for organizational effectiveness. If people lack needed information because it has not been shared, they cannot perform their jobs well. Because the interpretation of information affects job performance, if a common understanding of a message is lacking, workers cannot coordinate their efforts to achieve organizational goals.

Communication affects most aspects of organizational behavior. Effective communication is important for coordinating groups and for motivating workers. The functions of communication in organizations include: providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions. Communication Principles

Communication has purpose Communication is continuous Communication messages vary in conscious encoding Communication is relational Communication is culturally bound Communication has ethical implications Communication is learned

Functions f Communication Communication affects most aspects of organizational behavior. Effective communication is important for coordinating groups and for motivating workers. The functions of communication in organizations include: providing knowledge, motivating organizational members, controlling and coordinating individual efforts, and expressing feelings and emotions..

Information Communication provides knowledge to organizational members to perform jobs effectively and achieve goals. Knowledge is critical for newcomers because only through effective communication do they learn organizational expectations. Knowledge is also important for experienced employees because tasks, goals, responsibilities, and policies constantly change. Communication ensures that workers continue to understand the tasks needed to achieve organizational goals. Information Richness Media differ in information richnessthe amount of information carried and how much they enable senders and receivers to reach understanding. Media high in information richness not only transmit more information but also generate a common understanding.

Face-to-face communication is the medium highest in information richness for two reasons. The receiver has a verbal and nonverbal message for additional information to decode the message. Senders receive instant feedback and clarify ambiguous information until understanding is reached. The next-highest medium in information richness is verbal communication electronically transmitted over phone lines. Although a receiver does not see facial expressions or body language, some nonverbal communication such as voice tones and hesitations decode a message. Video telephone allows for nonverbal communication. Telephone conversations provide instant feedback to clear up misunderstandings. Voice mail and answering machines are electronic verbal media. Both allow senders to leave messages for receivers. Communication allows receivers to gather nonverbal information (e.g., from the tone of voice and inflections), but omits immediate feedback. Senders should make sure that receivers check their messages. Motivating Organizational Members Communication plays a central role in motivating employees to achieve goals. The expectancy theory of motivation suggests that managers should clarify outcomes obtained for a high performance level. Goal-setting theory suggests that managers set specific difficult goals to motivate workers to perform at a high level. Both models indicate that motivation depends on what managers communicate. Controlling and Coordinating Individual Efforts Groups and organizations exert control by communicating information about roles, rules, and norms to them. A group might communicate to a new member that social loafing is unacceptable. Communication helps coordinate the efforts of individuals. As interdependence increases, the coordinated communication efforts increase. Expressing Feelings and Emotions Communication allows people to express feelings and emotions. Because workers moods influence behavior, perception, and evaluation of people and situations, it is important to communicate these emotions to others. Supervisors and coworkers are more accepting of a workers lack of enthusiasm if there is a personal problem. By communicating moods and emotions, employees understand each other and can work together to achieve goals.

Communication Process:
Communication is a process of exchanging verbal and non verbal messages. It is a continuous process. Pre-requisite of communication is a message. This message must be conveyed through some medium to the recipient. It is essential that this message must be understood by the recipient in same terms as intended by the sender. He must respond within a time frame. Thus, communication is a two way process and is incomplete without a feedback from the recipient to the sender on how well the message is understood by him.

The main components of communication process are as follows: 1. Context - Communication is affected by the context in which it takes place. This context may be physical, social, chronological or cultural. Every communication proceeds with context. The sender chooses the message to communicate within a context. 2. Sender / Encoder - Sender / Encoder is a person who sends the message. A sender makes use of symbols (words or graphic or visual aids) to convey the message and produce the required response. For instance - a training manager conducting training for new batch of employees. Sender may be an individual or a group or an organization. The views, background, approach, skills, competencies, and knowledge of the sender have a great impact on the message. The verbal and non verbal symbols chosen are essential in ascertaining interpretation of the message by the recipient in the same terms as intended by the sender. 3. Message - Message is a key idea that the sender wants to communicate. It is a sign that elicits the response of recipient. Communication process begins with deciding about the message to be conveyed. It must be ensured that the main objective of the message is clear. 4. Medium - Medium is a means used to exchange / transmit the message. The sender must choose an appropriate medium for transmitting the message else the message might not be conveyed to the desired recipients. The choice of appropriate medium of communication is essential for making the message effective and correctly interpreted by the recipient. This choice of communication medium varies depending upon the features of communication. For instance - Written medium is chosen when a message has to be conveyed to a small group of people, while an oral medium is chosen when spontaneous feedback is required from the recipient as misunderstandings are cleared then and there. 5. Recipient / Decoder - Recipient / Decoder is a person for whom the message is intended / aimed / targeted. The degree to which the decoder understands the message is dependent upon various factors such as knowledge of recipient, their responsiveness to the message, and the reliance of encoder on decoder. 6. Feedback - Feedback is the main component of communication process as it permits the sender to analyze the efficacy of the message. It helps the sender in confirming the correct interpretation of message by the decoder. Feedback may be verbal (through

words) or non-verbal (in form of smiles, sighs, etc.). It may take written form also in form of memos, reports, etc.

Channels of Communication
Channels of Communication summarizes two additional sets of characteristics of organizational communicationinternal and external channels and formal and informal channels. Internal communication is shared by people at all levels within a company.External communication occurs between parties inside a company and parties outside the company, such as suppliers, customers, and investors. Both internal and external forms of communication include everything from formal e-mail and official reports to face-to-face conversations and casual phone calls. External communication also takes such forms as customer and supplier Web sites, news releases, and advertising. Channels of Communication

In the above diagram, Channels of Communication takes the form of a grid, thus creating four dimensions in which communication can take place. Informal communication, for example, can take place either among people within the company (internally) or between insiders and outsiders (externally). By and large, though you can use the same set of tools (memos, reports, phone calls) to communicate in any of these four situations, some tools (team blogs, news releases, supplier Web sites) are useful only in one or two. The Formal Communication Network An organizations formal communication network consists of all communications that flow along its official lines of authority. Formal Communication Flows. Because it incorporates the organization chart for Notes-4-You, it shows the companys lines of authoritywhat, in Chapter 6, Managing for Business Success, we called its reporting relationships. Here we can see that the reporting relationships in question consist of upward communication from subordinates to superiors. In reporting to the operations manager, for example, the note-takers supervisor communicates upward. Conversely, when the note-takers manager needs to give

direction to note takers, she will use downward communication. If the note-takers manager and the copiers manager must get together to prepare a joint report for the operations manager, theyll engage in lateral communication. In short, an organizations formal communication network is basically the same thing as its network of reporting relationships and lines of authority.[281] The Informal Communication Network Every company also has an informal communication network (or grapevine), which goes to work whenever two or more employees get together and start talking about the company and their jobs. Informal communication can take place just about anywhere (in one persons cubicle, in the cafeteria, on the golf course) and by just about any means (phone, e-mail, instant messaging, face-to-face conversation). Though its sometimes called the grapevine, an informal network is an extremely important communication channel. Why? For the simple reason that its typically widespread and can rarely be prevented, even if its not officially sanctioned by the companyindeed, even when the company tries to discourage or bypass it. Unofficial information crosses virtually every boundary drawn by a firms organization chart, reaching out and touching everyone in the organization, and whats more, it travels a lot faster than official information. Problems with the Flow of Information through Informal Channels The downside of unofficial information should be obvious. Because much of it is communicated orally, its likely to get distorted and often degenerates into outright misinformation. Say, for example, that a rumor about layoffs gets started in your workplace. As more than one manager will verify, such rumors can do more damage than the reality. Morale may plummet and productivity wont be far behind. Valuable employees may abandon ship (needlessly, if the rumors are false).[282] And imagine what can happen if informal information gets outside the organization. In the 1970s, Chicago-area McDonalds outlets found themselves fighting rumors about worms in their hamburgers. Over the years, Coca-Cola has had to fight rumors about terrorists joining its organization, subversive messages concealed in its label, and hyperacidity (false rumors that Coke causes osteoporosis and makes a good pesticide and an equally good spermicide).[283] What to Do about Informal Information Flows On the upside, savvy managers can tap into the informal network, either to find out what sort of information is influencing employee activities or to circulate more meaningful information, including new ideas as well as corrective information. In any case, managers have to deal with the grapevine, and one manager has compiled a list of suggestions for doing so effectively:[284]

Learn to live with it. Its here to stay. Tune into it. Pay attention to the information thats circulating and try to learn something from it. Remember: The more you know about grapevine information, the better you can interact with employees (who, in turn, will probably come to regard you as someone who keeps in touch with the things that concern them). Dont participate in rumors. Resist the temptation to add your two cents worth, and dont make matters worse.

Check out what you hear. Because its your job to replace bad information with good information, you need to find out whats really going on. Take advantage of the grapevine. Its only function is to carry information, so theres no reason why you cant pump some useful information through it.

Perhaps most importantly, when alert managers notice that the grapevine is particularly active, they tend to reach a sensible twofold conclusion: 1. The organizations formal lines of communication arent working as well as they should be. 2. The best way to minimize informal communication and its potential damage is to provide better formal communication from the outsetor, failing that, to provide whatever formal communication will counteract misinformation as thoroughly as possible. Lets go back to our example of a workplace overwhelmed by layoff rumors. In a practical sense, what can a managersay, the leader of a long-term product-development teamdo to provide better communication? One manager suggests at least three specific responses:[285] 1. Go to your supervisor or another senior manager and try to find out as much as you can about the organizations real plans. 2. Ask a senior manager or a human resources representative to meet with your team and address members concerns with accurate feedback. 3. Make it a priority to keep channels openboth between yourself and your team members and between team members and the human resources department. Because actions of this sort send a message, they can legitimately be characterized as a form of formal communication. They also reflect good leadership: Even though the information in this case relates only indirectly to immediate team tasks, youre sharing information with people who need it, and youre demonstrating integrity (youre being honest, and youre following through on a commitment to the team). Types of Business Communication There are two types of business communication in an organization: 1. Internal Communication 2. External Communication

1. Internal Communication Communication within an organization is called Internal Communication. It includes all communication within an organization. It may be informal or a formal function or department providing communication in various forms to employees. Effective internal communication is a vital mean of addressing organizational concerns. Good communication may help to increase job satisfaction, safety, productivity, and profits and decrease grievances and turnover. Under Internal Business Communication types there come; Upward Communication Downward Communication Horizontal/Literal communication

a) Upward Communication Upward communication is the flow of information from subordinates to superiors, or from employees to management. Without upward communication, management works in a vacuum, not knowing if messages have been received properly, or if other problems exist in the organization. By definition, communication is a two-way affair. Yet for effective two-way organizational communication to occur, it must begin from the bottom. Upward Communication is a mean for staff to:
o o o o

Exchange information Offer ideas Express enthusiasm Achieve job satisfaction

Provide feedback

b) Downward Communication Information flowing from the top of the organizational management hierarchy and telling people in the organization what is important (mission) and what is valued (policies). Downward communication generally provides enabling information which allows a subordinate to do something. e.g.: Instructions on how to do a task. Downward communication comes after upward communications have been successfully established. This type of communication is needed in an organization to:
o o o o o o o o o

Transmit vital information Give instructions Encourage 2-way discussion Announce decisions Seek cooperation Provide motivation Boost morale Increase efficiency Obtain feedback

Both Downward & Upward Communications are collectively called Vertical Communication

c) Horizontal/Literal communication Horizontal communication normally involves coordinating information, and allows people with the same or similar rank in an organization to cooperate or collaborate. Communication among employees at the same level is crucial for the accomplishment of work. Horizontal Communication is essential for:
o o o o o

Solving problems Accomplishing tasks Improving teamwork Building goodwill Boosting efficiency

Diagonal or multi-directional Communication

Diagonal communication means the use of upward, downward and horizontal communication. It is a healthy practice not to depend on any one mode. Diagonal communication leads to better feedback at all levels. It promotes understanding, motivates employees and gives a sense of belonging and involvement to all people at all levels. But such communication should not be allowed to degenerate to a meaningless criss-cross communication which will lead to chaos and confusion. All modes have to be maintained at the appropriate and optimum level.

2. External Communication Communication with people outside the company is called external communication. Supervisors communicate with sources outside the organization, such as vendors and customers. It leads to better;
o o o o

Sales volume Public credibility Operational efficiency Company profits Overall performancee Public goodwill Corporate image Organizational goals Customer satisfaction

It should improve
o o o

Ultimately, it helps to achieve

o o

Grapevine Phenomenon
Large organizations, where there are a large number of people working closely, generate certain informal or unofficial channels of communication. These channels exist with or without official patronage. Even if they are officially and secretly patronized, they are not authentic. This type of communication is generally called Grapevine communication. Grapevine communication is an informal, unofficial, horizontal channel of communication because generally peer groups participate in it. Types of Grapevine Communication

Grapevine communication is of four different types. It can seep from individual to individual in a strictly linear fashion. Information takes time to spread in this fashion. It is called Single Strand Chain. In some situations, an individual goes around communicating the message / information he thinks he has obtained. This is called Gossip Chain. The listeners are a chosen few only. In some other situation, an individual passes an information without any restriction to all those with whom he comes into contact. This is called Probability Chain and the information / message passed on may be interesting but not important. In yet another situation, one person communicates to a few chosen associates who in turn communicate the same to yet another group. This is called Cluster Chain Advantages of Grapevine Communication

Grapevine communication brings about a strong bond among peer groups. It develops because of the involvement of the persons connected with an organization. It gives mental satisfaction to the participants and gradually reduces emotional outbursts and reactions. It keeps the employees anticipating and acts as a buffer against Shockwaves. It is fast and can supplement formal channels. It provides informal feedback on the changes contemplated by the Management. Disadvantages of Grapevine Communication Grapevine, is definitely dangerous to the health of an organization if allowed to grow without monitoring. Grapevine channel distorts or exaggerates the content of a message. It has the potential to spread unnecessary gossip. It may result in character assassination and personal vilification of individuals. It may provoke sudden unwanted and unexpected reactions from emotionally unstable people. Grapevine channels can be moderated but not eliminated. A transparent administration policy, employee-friendly attitude, fruitful peer group meetings, inter-action sessions, parties and outings where all those connected with the organisation participate are some of the strategies to monitor grapevine and use it to the advantage of the organization. Business houses and industries adopt one or several of these strategies to keep grapevine under reasonable control so that it does not degenerate into a rumour mill and promote unwanted gossip sessions among the employees.