Organizations - Definations of Organization

Organisation is the foundation upon which the whole structure of management is

built. Organisation is related with developing a frame work where the total work
is divided into manageable components in order to facilitate the achievement of
objectives or goals. Thus, organisation is the structure or mechanism
(machinery) that enables living things to work together. In a static sense, an
organisation is a structure or machinery manned by group of individuals who are
working together towards a common goal.

Different authors have defined organisation in different ways. The main

definitions of organisation are as follows:

 According to keith Davis, “Organisation may be defined as a group

of individuals, large of small, that is cooperating under the direction of executive
leadership in accomplishment of certain common object.”
 According to Chester I. Barnard, “Organisation is a system of co-
operative activities of two or more persons.”
 According to Louis A. Allen, “Organisation is the process of
identifying and grouping the work to be performed, defining and delegating
responsibility and authority, and establishing relationship for the purpose of
enabling people to work most effectively together in accomplishing objectives.”
 According to Mooney and Railey, “Organisation is the form of every
human association for the attainment of a common purpose.”

Importance of Communication in Organizations

Effective Communication is significant for managers in the organizations so as to
perform the basic functions of management, i.e., Planning, Organizing, Leading
and Controlling.

Communication helps managers to perform their jobs and responsibilities.

Communication serves as a foundation for planning. All the essential information
must be communicated to the managers who in-turn must communicate the
plans so as to implement them. Organizing also requires effective
communication with others about their job task. Similarly leaders as managers
must communicate effectively with their subordinates so as to achieve the team
goals. Controlling is not possible without written and oral communication.

Managers devote a great part of their time in communication. They generally

devote approximately 6 hours per day in communicating. They spend great time
on face to face or telephonic communication with their superiors, subordinates,
colleagues, customers or suppliers. Managers also use Written Communication in
form of letters, reports or memos wherever oral communication is not feasible.

Thus, we can say that “effective communication is a building block of successful

organizations”. In other words, communication acts as organizational blood.

The importance of communication in an organization can be summarized as

follows:

1. Communication promotes motivation by informing and clarifying the

employees about the task to be done, the manner they are performing the
task, and how to improve their performance if it is not up to the mark.
2. Communication is a source of information to the organizational members
for decision-making process as it helps identifying and assessing
alternative course of actions.
3. Communication also plays a crucial role in altering individual’s attitudes,
i.e., a well informed individual will have better attitude than a less-
informed individual. Organizational magazines, journals, meetings and
various other forms of oral and written communication help in moulding
employee’s attitudes.
4. Communication also helps in socializing. In todays life the only presence of
another individual fosters communication. It is also said that one cannot
survive without communication.
5. As discussed earlier, communication also assists in controlling process. It
helps controlling organizational member’s behaviour in various ways.
There are various levels of hierarchy and certain principles and guidelines
that employees must follow in an organization. They must comply with
organizational policies, perform their job role efficiently and communicate
any work problem and grievance to their superiors. Thus, communication
helps in controlling function of management.

An effective and efficient communication system requires managerial proficiency

in delivering and receiving messages. A manager must discover various barriers
to communication, analyze the reasons for their occurrence and take preventive
steps to avoid those barriers. Thus, the primary responsibility of a manager is to
develop and maintain an effective communication system in the organization.
Types of Communications in Organizations

Essential Types of Organizational Communication!

A. Communication According to Organisational Structure:

1. Formal Communication:
Such a communication is that which is associated with the formal organisation
structure and the official status or the position of the communicator and the
receiver. It travels through the formal channels officially recognised positions in
the organisation chart. Formal communication is mostly in black and white.

Thus, it is a deliberate attempt to regulate the flow of communication so as to

ensure that information flows smoothly, accurately and timely. Formal
communication is a deliberate attempt to regulate the flow of communication so
as to ensure that information flows smoothly, accurately and timely.

We frequently come across the phrase ‘through proper channel’. It emphasises

the essence of formal channel of communication. For example, when the General
Manager issues instructions (because of his senior position in the organisation), it
is formal communication.

The forms of formal communication are as under:

1. Departmental meetings
2. Conference
3. Telephone calls
4. Company news bulletins
5. Special interviews and special purpose publications and messages.

The main advantage of the formal communication is that the official channels
enable the routine and standardised information to pass without claiming much
of managerial attention. Essentially, executives and managers may devote most
of their precious time on matters of utmost significance.
But at the same time, the weakness of formal communication should not go
unaccounted. Communication through channel of command greatly obstructs
free and uninterrupted flow of information.

2. Informal Communication:
Informal communication is also known as ‘Grapevine’. It is free from all sorts of
formalities because it is used on informal relationships between the parties, such
as friendship, membership in the same club or association.

Persons at the executive levels also use informal communication when they find
it difficult to collect information from the workers. Such communication includes
comments, suggestions etc. It may be conveyed by a simple glance, gesture,
smile or mere silence.

Managers and executives also favour the growth and development of informal
network of communication off and on. This process, In fact, serves a very useful
purpose in disseminating certain information which, in the general interest of the
organisation, cannot be transmitted through the official channels.

Apart from that, it also offers the high and higher ups a clearer insight into what
the subordinates think and feel. But at the same time, the weaknesses of the
informal communication are also worth noting. It may be mentioned that this
process very often tends to pass distorted, misinterpreted, and inaccurate and
half- truth information and facts, depending on the circumstances and the
message. But still, executives and managers cannot do away with informal
communication.

B. Communication According to Direction:

1. Downward Communication:
Communication which flows from the superiors to subordinates is referred to as
downward communication. In an organisational structure, the executives must
exercise their powers to achieve the desired objectives which imply that they
may be engaged in issuing orders, instructions and policy directives to the
persons at the lower levels. This may be called downward communication. Under
downward communication, immediate performance of a job is expected.

Katz And Kahn Have Identified Live Elements of Downward

Communication:
1. Specific task directives; Job instructions.
2. Information designed to produce understanding of the task and its relation
to other organisational tasks; job rationale.
3. Information about organisational procedures and practices.
4. Feedback to the subordinate about his performance.
5. Information of an ideological character to inculcate a sense of mission,
indoctrination of goals.
Communication from superior to subordinate can be face to face as well as
through written memos, orders, job descriptions etc.

2. Upward Communication:
In an upward communication, the persons from the lower level are expected to
have communication with those who are above them. It is just the reverse of
downward communication. This sort of communication includes reactions and
suggestions from workers, their grievances etc. Contents of upward
communication are reports, reaction, suggestion statements and proposals
prepared for the submission to the boss.

Upward Communication can be divided into four categories on the basis

of what employee says:
(i) about himself, his performance and problems
(ii) about others and their problems
(iii) about organisational policies and practices and
(iv) about what needs to be done and how it can be done.

The main features of upward communication are:

(1) it is condensed and summarised as it passes through various levels in the
hierarchy. It gives feedback on the extent of effectiveness of downward
communication. This feedback is used for improving communication
effectiveness.
(2) It provides the management about the viewpoints, reactions, attitudes,
feelings and morale of employees.
(3) It provides means of control.
(4) Finally, it gives information and date for decision making.

Upward communication may get distorted owing to the nature of superior-

subordinate relationships. An employee is not likely to give any information
which may affect him adversely. Moreover, he may transmit wrong information
to impress his superiors. It flows through many media e.g. chain of command,
suggestion boxes, personal contacts, attitude and morale surveys, grievance
procedure, private lines, labour unions etc.
3. Horizontal Communication:
When the communication takes place between two or more persons who are
subordinates of the same person or those who are working on the same level of
organisation, the communication is known as horizontal (lateral) communication.

The communication between functional managers or among subordinates

working under one boss, the communication between managers of various
factories is the examples of such communication. Horizontal communication may
be oral as well as written.

Horizontal Communication satisfies peoples’ needs to know from their own peers
without taking into account other levels in the organisation. It is really difficult for
an organisation to function efficiently without such horizontal communication
flows. Although the formal organisation design does not provide for such
communication flows, it is needed for the coordination and integration of diverse
organizational functions.

Since organizational horizontal communication ordinarily do not exist in

facilitation is left to individual managers. Peer to peer communication necessary
for co-ordination and can also provide social need satisfaction.

C. According to Way of Expression:

1. Oral or Verbal Communication:

Oral communication is a direct communication between two individuals. In oral
communication both the parties i.e., sender and receiver exchange their ideas
through oral words either in face to face conversation or through any mechanical
or electrical device such as telephone, teleconference etc. When it is face to
face, the person communicating can ask questions or explanations or sometimes
when the communication is not properly understood, he can clarify meaning.

Oral communication is generally possible where there can be either a direct

contact or message to be conveyed is not of permanent nature. Meetings and
conferences, lectures and interviews are other media of such communication.

Oral communication enjoys certain advantages communication which

may be enumerated as follows:
(i) Oral communication has the distinct advantage of being quick and prompt. It
provides the opportunity to both the transmitter and receiver of the message to
respond directly.
(ii) Oral communication facilitates close contact and thus fosters mutual
exchange of ideas, facts, understanding and cooperation.
(iii) Oral communication through direct contact undoubtedly inculcates in the
subordinates a sense of self-importance which in turn acts as a motivating factor.
(iv) Oral communication further enables the superior to make a quick appraisal
of subordinate’s action and reaction to any message transmitted. This obviously
helps the superior to minimise and avert conflicts, redesign plans and
programmes according to the need of time and circumstances.
(v) The personality of the communicator is brought to bear in the communication
process. This has good effect on the subordinates and they understand the
communication properly.
(vi) It can bring a friendly and co-operative team spirit.

However, the following are the disadvantages of the oral communication:

(i) There is a possibility that the spoken words may not be clearly heard or
understood.
(ii) It is not good for lengthy communications.
(iii) It requires the art of expressing accurately and appropriately, and listen to
others emphatically.
(iv) It is inadequate where specific performance of policies and rules is needed.
(v) The inexperienced subordinates do not follow the facial expressions and the
tone of manager’s voice.

2. Written Communication:
When the communication is reduced to black and white (writing), it is called
written communication. This includes written words, graphs, diagrams, pictures,
etc. Written communications are extensively used in organisations.

Sometimes, this form of communication becomes indispensible as in the case of

rules, orders, schedules or policy matters etc. The circulars, magazines, notes
and manuals are some common forms of written communication.

It may be asserted from general observations that in all types of organisations

both oral and written communication is in practice. Which form should be used
and applied? Much depends on the message, its importance to receiver, and
implication to functional aspects of the organisation.
The Following List Presents Some Commonly Used Forms of

Communication in Different Directions:

Oral Written

(1) Personal instructions. (1) Rules and instructions handbook.

(2) Lectures, conferences, (2) Letters, circulars and memos.

meetings.
(3) Posters.

(3) Grapevine rumours.

(4) Bulletin and notice Boards.

(4) Interviews.
(5) Handbooks and Manuals.

(5) Face to face conversation.

(6) Annual Reports.

(6) Telephone etc.

(7) House Magazines.

(7) Union channels.

(8) Union Publications.

(9) Personal letters and suggestions.

(10) Complaint Procedure.

Vertical and Horizontal
When we go to the college and the professor gives lectures and impart education
to us but if due to some problem we miss the lecture then we take notes and
understand the concepts through our friends. This act of understanding from
lecturer directly can be compared to vertical communication and understanding
same thing from friends can be compared to horizontal communication.
Horizontal and vertical communication both are communication techniques used
in the companies all over the world, while some companies use the horizontal
method of communication while some use vertical method of communication
and some use both of them together.
Given below are some of the differences between horizontal and vertical
communication
Rumours & Grapevine:
The major problem with the grape-vine is rumour. It is not the whole grape-vine.
It is the unverified and untrue part of the grapevine. It is generally incorrect and,
hence undesirable. Rumours arise with ambiguity and conditions which create
anxiety.

Since rumour is generally incorrect, a major outbreak of it can be damaging for

an organisation. Rumour should be dealt with firmly but how and what to attack
must be known.

It is a serious mistake to strike at the whole grape-vine because it is the agent

that carries rumour. The best way to control rumour is to get at its causes, rather
than trying to stop it after it has already started.

Most of the rumours are harmless and soon die out. Some rumours tend to be
harmful. The best way to stop rumour is to release the facts. Ambiguity is
reduced, so there is less reason for rumour and the truth tends to prevail.

Serious rumours should be attacked as soon as possible because once the

general theme of a rumour is known and accepted employees distort future
happenings to confirm the rumour. Some organisations have established rumour
clinics to provide instant answers to objectionable rumours.

Managers sometimes ask union leaders to help combat rumour. Since rumours
are worst when management and labour are in conflict, any reduction of conflict
should reduce rumours.

A grapevine is a form of informal communication. It arises due to the co-

existence of people. Therefore, it is found in all organizations. It does not follow
any prescribed or predetermined rule and spreads any information quickly.

Through the grapevine, information flows in different directions linking almost

everyone of an organization. It is governed by social and personal relationships
rather than officially recognized rules and formalities.

Grapevine operates both in internal and external informal channels. It passes

opinions, suspicions, and rumors that generally do not move through formal
channels. By nature, the grapevine is a channel of horizontal communication.

However, in fact, it does not follow any set pattern. It effectively operates
horizontally, vertically and even diagonally. Grapevine is a natural outgrowth
person-to-person informal communication channel through which information
flows horizontally, vertically or diagonally without following any set rule or
regulation among the people within or outside the organization.

Though grapevine provides innumerable utilities to the organization, still it is not

free from defects. Therefore, managers should try to use grapevine in a way so
that the organization can take the highest benefits from it.
Communicating in Multicultural Envirnoments
Multiculturalism is a reality the way world is globalized in the social
sphere, political system, economic landscape, geographical areas, and
international relations. Multicultural organizations (MCOs hereafter)are
omnipresent in the current economic system; and we are persistently
surrounded by diverse cultures; therefore, workforce diversity is becoming the
common feature of the MCOs.

There are many instances of cultural variants in the different parts of the
world. Knowing these differences can simplify the functions of both multinational
employers and employees. Knowing the cultural diversity helps in team building,
trust formation, conflict resolution, effective collaboration, and more
importantly assess the performance of the team members. For example, East
Asians presume that the people from Western countries treat strangers like
friends; and friends like strangers. Communication in Western cultures is
generally direct and explicit. The meaning of the message is very clear. But,
this isn't the case in other countries, like Japan, where formality and etiquettes
play a major role in their communication. For some cultures, eye contact is
considered as discourteous while for others refraining from the same is
considered as disrespectful. Further, in Western cultures, and in Africa, giving a
hug is considered very informal and fine but it may not be so in Asian countries.
Furthermore, some cultures treat women as subordinate and for men belonging
to such cultures it becomes near impossible to working shoulder to shoulder or
having women as their superiors.

Communication Challenges in Multi Cultural Organizations

Communication challenges are bound to come in the MCOs. The significant

communication challenges in MCOs are: language barrier, stereotyping,
ethnocentrism, cultural relativism, cultural shock, attitude toward conflict
resolution, task completion, decision making, privacy, trust building, and non-
verbal language.

1. Language Barrier: Language barrier is the most common problem found

in MCOs as staffs have more chances of meeting and dealing with the
speakers of other languages. There is no denying the fact that English is the
lingua franca of the modern economic world; and it has become the official
standard language for business throughout the globe; however, because of
this many non- English speakers can be overlooked and unrewarding because
of their incompetence to communicate and comprehend English, and thus
convey what they want to say. Even sometimes, there are chances the
managers take a backseat as they are unable to convey their message
crossways.

2. Stereotyping Stereotyping is the notion that we carry about a certain

set of people and their culture, value judgments, overestimation or
over-exaggerations. These stereotypes are the main reasons for
difference of opinions about the conflicting culture and leads to
miscommunication. The popular examples of stereotypes are: Spanish people
are bad-tempered and racist; the English are business men; Chinese people
make work their religion, Swiss people like exactness, Brazilians are always
late, and Japanese are forward-looking. All these ideas are stereotypes
against a country and its people, which can negatively affect the
 working employees or future employees. Because of already-made
suppositions, an employer can demonstrate bias and make a mistake in
hiring, operation, and firing.

3. Ethnocentrism / Cultural Relativism: Ethnocentrism is defined as a cultural

superiority complex: rationalizing that one‟s own culture or group behavior
is advanced against all the other groups. It is an attitude wherein one‟s own
cultural experience unintentionally makes us to feel that our culture is
distinctive. This feeling further increases the level of the anxiety, which in
turn affects the productivity of the working culture. The workforce of MCO
faces a lot of issues due to ethnocentrism. Ethnocentrism interferes with
interaction to other cultures and proves a barrier of communication.
International workforces need cultural understanding of local conditions to
multiply competence and productivity. Cultural relativism is the belief where
in one compares the standards and conducts of target cultures and gauges
them against the norms of what's incorrect and what's correct. This
becomes a hurdle when one presumes that cultural norms, customs and
traditions are not right if they vary from those of the other culture.

4. Cultural Shock: Cultural shock is the accidental encounter of an

employee with some unknown and unexpected cultural practice. When
employees enter another nation or territory, they tend to undergo cultural
shock, which is the diffidence and bewilderment caused by encountering a
different culture. They may not be acquainted with how to act, may fear
losing face and self-confidence, or may become emotionally disappointed.
Some individuals segregate themselves, while a few even decide to come
back home from the next flight. Cultural shock is virtually universal,
which happens even on a migration from one advance nation to another.

5. Attitude toward Conflict Resolution: Attitude toward conflict play a vital role
for the working place, especially in the team work. The different cultures of
the world resolve clashes in the different ways. For example, the people of
United States take conflicts positively, and like to solve it directly, and face-
to-face; whereas, for Easterners conflict is a negative undertone and they
like to resolve the conflicts quietly or silently.