BUSINESS COMMUNICATION

Unit 1
MEANING OF BUSINESS COMMUNICATION
Communication
The word communication has been derived from the Latin word 'communicare' which is rotted
from the word communis which means „to share‟. Communication is the exchange of facts,
ideas, opinions or emotions by two or more persons. Communication may be defined as
interchange of thought or information between two or more persons to bring about mutual
understanding and desired action by words or symbols.
Another very simple definition of 'communication' has been provided by W.H. Newman and
C.F. Summer Jr: “Communication is an exchange of facts, ideas, opinions, or emotions by two or
more persons.”
Business Communication
“Business Communication is a process of messages and persons which are associated with
business. It consists of Channels of communication.”- C.C.Brown.
Business communication refers to the process of sharing information between people
within and outside a company. It is a critical function in any organization as it facilitates
the smooth operation and success of business activities. Effective business communication
ensures that information is conveyed clearly, efficiently, and persuasively.

PROCESS OF BUSINESS COMMUNICATION

Communication has been defined as a continuous process in which the exchange of ideas and
information takes place among different persons.
Sender:
The sender is the source of the message that initiates the communication. The sender has a
message or purpose of communicating to one or more people. A manager in an organization has
to communicate information about the tasks to be achieved or a production deadline to be met by
his subordinate employees. Without a reason, purpose, or desire, the sender has no
information/message to send.
Encoding:
In the next stage, encoding takes place when the sender translates the information or message
into some words, signs or symbols. Without encoding the information cannot be transferred from
one person to another. In encoding the message, the sender has to choose those words, symbols
or gestures that he believes to have the same meaning for the receiver. While doing so, the
sender has to keep the level of the receiver in mind and accordingly communicate with him in
the way the receiver understands it.
The message may be in any form that can be understood by the receiver. Speech is heard; words
are read; gestures are seen or felt and symbols are interpreted. For example, there are several
communications we make with a wave of the hand or with a nod of the head, a pat on the back,
blinking of eyes.
Message:
Message is the idea or information that the sender wants to convey. He may convey it verbally
(by writing or speaking) or non-verbally (through gestures or body language). Whatever the
form, the message should be clearly formed so that the objective is accomplished.
Channel:
The channel is the medium used for transmission of information or message from sender to
receiver. There are various media like telephone, mail through post, internet, radio, TV, press
etc. For communication to be effective and efficient, the channel must be appropriate for the
message. A phone conversation is not a suitable channel for transmitting a complex engineering
diagram.
An express mail may be more appropriate. The needs and requirements of the receiver must also
be considered in selecting a channel. If the receiver is illiterate, sending the message through
postal mail is not relevant. Similarly, you cannot select the medium of telephone, if the receiver
does not have a telephone with him. Therefore, in choosing the appropriate channel, the manager
must decide whether feedback is important or not.
In short it refers to the method or medium, through which the message is to be conveyed to the
recipient. For example, an oral communication might be made through a peon or over the
telephone etc.; while a written communication might be routed through a letter or a notice
displayed on the notice-board etc.
Receiver:
The receiver is the person or group for whom the communication effort is intended. The message
must be crafted with the receiver‟s background in mind. An engineer in a microchip
manufacturing company, for example- might have to avoid using technical terms in a
communication with someone in the company‟s advertising department; by the same token, the
person in advertising might find engineers unreceptive to communications about demographics.
If the message does not reach a receiver, communication has not taken place. The situation is not
much improved if the message reaches a receiver but the receiver doesn‟t understand it.
Decoding:
Decoding is the process by which the receiver interprets the message and translates it into
meaningful information. Decoding involves two things: one is technically receiving the message
as it has been sent, and the other is interpreting the message the way sender wants receiver to
understand.
Technically receiving the message means, if it is spoken, the voice has been heard clearly and if
it is written, it is readable clearly. However, it may happen that you have received the message
clearly in its form and content, but could not understand it.
Feedback:
Feedback is reaction, without it, the sender of the message cannot know whether the recipient
has received the entire message or grasped its intent.
The need for feedback should be clearly understood. Feedback is the return of a portion of the
message to the sender with new information. It regulates both the transmission and reception.
The whole process is straightforward- the sender transmits the message via the most suitable
communication media; the receiver gets the message, decodes it, and provides feedback.
Feedback enables the sender to adjust his performance to the needs and responses of the
receiver(s).
Organizational feedback may be in a variety of forms, ranging from direct feedback, such as a
simple spoken acknowledgement that the message has been received, to indirect feedback,
expressed through actions or documentation. For example- a straightforward request for a faster
rate of production may be met directly with an assenting nod of the head or indirectly with
record-breaking output or a union strike.
In most organizational communications, the greater the feedback, the more effective the
communication process is likely to be. For example- early feedback will enable managers to
know if their instructions have been understood and accepted. Without such feedback, a manager
might not know (until too late) whether the instructions were accurately received and carried out.

NEED FOR BUSINESS COMMUNICATION

Just as communication is vital for our existence in civilizes society, so also it is essential for
functioning of organization. So without communication there would be no organization.
Needless to say, communication is the ingredient that makes organization possible. It is the
vehicle through which the basic management functions are carried out. Managers direct through
communication; they coordinate through communication; and they staff, plan, and control
through communication. Virtually all actions taken in an organization are preceded by
communication.
1. Stronger Decision Making: Your ability to communicate effectively increases
 productivity, bothyours and your organization.
2. Increased Productivity: With good communication skills, you can anticipate
problems, make decisions , co-ordinate work flow , supervise others , develop
relationships and promote products and services.
3. Steadier Work Flow: Communication acts as tool for the effective work related
flow of information.
4. Strong Business Relationships & Enhanced Professional Image: You can
shape the impressions you and your company make on colleagues , employees
,supervisors , investors ,and customers in addition to perceiving and responding
to the needs of these stakeholders(the various group you interact with )
without effective communication , people misunderstand each other and
misinterpret information. Ideas misfire or fail to gain attention and people and
companies flounder.
5. Clearer Promotional Materials: Your organizations need for effective reach
of company name and public promotions are based on effective promotional
material such as advertisements, bill boards , online add , posters etc are all
communicated for effective message delivery and meaning.
6. Provide Advice: Giving advice is based on individual-oriented and work-
oriented ,advice should not given to the person for pinpointing his mistakes
rather it should be helpful for his improvement. Effective advice promotes
understanding and it can be a two way process if the subordinate staff given
freedom.
7. Provide Order: Order is an authoritative communication pattern and it is
directive to somebody always a subordinate to do something. Orders will be
written and oral orders, general and specific orders, procedural and operational
orders, mandatory and discretionary order. Order should be clear and complete,
execution should be possible and given in a friendly way.
8. Suggestion: Suggestion is supposed to be very mild and subtle form of
communication. Suggestions are welcomed for it is not obligatory to accept
them, it can be voluntary and anonymous and submitted through suggestion
boxes.
9. Persuasion: Persuasion may be defined as an effort ‗ to influence the attitudes,
feelings, or beliefs of others, or to influence actions based on those attitudes,
feelings , or beliefs. Persuasion can be done to others if you are convinced, you
do not impose, you are not rigid are prepared to meet half-way and you can look
at the situation from the other person„s angle also.
10. Education: Education is a very conscious process of communication, it
involves both teaching and learning by which organizations provide to their
employees in the form of training. Education is given for management
employees and outside public.
11. Warning: If the employees do not abide by the norms of the organization
warning is a power communication tool and it can be general and specific.
Specific warning should be administered in private and after thorough
investigation. The aim of the warning should be the organization betterment.
12. Raising Morale and Motivation: Morale stands for mental health and it is a
sum of several qualities like courage, resolution, confidence .High morale and
effective performance go hand to hand. Motivation is a process that account for
an individual intensity, direction, and persistence of effort towards attaining a
goal.
13. To Give and Receive Information: Communication„s main idea is to give and
receive information because managers need complete, accurate and precise
information to plan and organize employee need it to translate planning in to
reality. Information will cover all aspects ofthe business.
14. To Provide Counselling: Counseling is given to solve employees mental
stress and improve the employees productivity.
15. To Improve Discipline: Finally discipline is the foremost part of any
business communication. The various disciplinary codes are effectively
communicated to employees through disciplinary codes.
METHODS OF BUSINESS COMMUNICATION
Types of business communication

Verbal communication:
In order to communicate effectively, it is often necessary to use both verbal and nonverbal cues.
Interpersonal communication that includes written communication, oral communication, and
sign language is called verbal communication. In verbal communication, two or more
individuals use words to transmit meaning.
Oral Communication
In oral communication, it is important to make sure that the listeners understand what the
speaker is saying. So, the speaker needs to have effective speaking and listening skills of the
communicator. Oral communication is the most effective two-way communication and dialogue
method. It helps send the message completely and is best suited to handle complex discussions
and provides ample scope for clarifying your issues.
A few examples of oral communication are −
 Meetings
 Workshops
 Telephone calls
 Presentations
 Tele/video conferences
 Podcast/webcast, etc.
(Audio Visual Communication:
Audio visual communication means communication by which an individual is able to see, hear,
and communicate with a remotely located individual in real time using electronic means. Audio-
visual communication is a combination of sound and sight. It makes use of both words and
pictures. Video-tapes, telecast and films are the examples of audio-visual communication.
Audio Communication:
Audio communication technology means electronic devices, systems, applications, or platforms
that permit all participants to hear and speak to all other participants in real time. Examples
are LCD project, Film projector, TV, Computer, VCD player, Virtual Classroom, Multimedia,
etc.
Visual communication:
Visual communication is the practice of using visual elements to get a message across, inspire
change, or evoke an emotion. Visual Communication exists in two parts; communication design
and graphic design: Communication design refers to crafting a message that educates, motivates,
and engages the viewer.)
Written Communication
Writing is more suited to detailed communication, where facts, figures, diagrams and statistics
should be shared. It is also beneficial as reference materials for later usage. Written
communication is often mentioned as official communication because people always want
important conversations to be placed on record.
Some examples of written communication are −
 Letters
 Reports
 Minutes
 Emails
 Newsletters
 Surveys
 Twitter
 Blogs, etc.

Non-verbal communication:
Non-verbal communication is the act of conveying information without the use of spoken or
written words. It includes several bodily components and the actions might be conscious or
subconscious from the side of the communicator. It is the communication that uses non-
linguistic means to convey the message.
Nonverbal communication includes facial expressions, appearance, gestures, body language,
eye gazing, proxemics (personal space), haptics (touch), and personal appearance.
Non-verbal communication helps receiver in interpreting the message received. Frequently, non-
verbal signals reflect the situation more accurately than verbal messages. Sometimes non-verbal
response contradicts verbal communication and thus affects the effectiveness of message
Facial expressions
The human face is extremely expressive, able to express countless emotions without saying a
word. And unlike some forms of non-verbal communication, facial expressions are universal.
The facial expressions for happiness, sadness, anger, surprise, fear, and disgust are the same
across cultures.
Body movements and posture
Believe how your perceptions of people are affected by the way they sit, walk, stand up, or hold
their head. The way you move and carry yourself communicates a wealth of information to the
world. This type of non-verbal communication includes your posture, bearing, stance, and
elusive movements.
Gestures
Gestures are woven into the fabric of our daily lives. We wave, point, beckon, and use our hands
when we‟re arguing or speaking animatedly – expressing ourselves with gestures often without
thinking. Nevertheless, the meaning of gestures can be very different across cultures and regions,
so it‟s important to be careful to avoid misinterpretation.
Eye contact
Because the visual sense is dominant for most people, eye contact is a particularly important type
of non-verbal communication. The way you look at someone can communicate many things,
including interest, affection, hostility, or attraction. Eye contact is also crucial in maintaining the
flow of conversation and for gauging the other person‟s response.
Touch
We communicate a great deal through touch. Think about the messages given by the following: a
firm handshake, a timid tap on the shoulder, a warm bear hug, an assuring pat on the back, a
patronizing pat on the head, or a controlling grip on your arm.
Space
Have you ever felt uneasy during a conversation because the other person was standing too close
and invading your space? We all have a need for physical space, although that need differs
depending upon the culture, the situation, and the closeness of the relationship. You can use
physical space to communicate many different non-verbal messages, including signals of
intimacy, aggression, dominance, or affection.
Voice
It‟s not just what you say, it‟s how you say it. When we speak, other people “read” our voices in
addition to heeding to our words. Things they pay attention to include your timing and pace, how
loud you speak, your tone and inflection, and sounds that convey understanding, such as “ahh”
and “uh-huh.”
Example: Think about how tone of voice, can show sarcasm, anger, affection, or confidence.

(Summary:
Verbal Communication: Verbal communication involves using words to convey meaning and
includes both spoken and written communication. It can be further divided into:
 Oral Communication: Involves spoken interactions where the speaker needs effective
speaking and listening skills to ensure the message is understood. Examples include
meetings, workshops, telephone calls, presentations, tele/video conferences, and
podcasts/webcasts. Oral communication is effective for handling complex discussions
and allows for immediate feedback and clarification.
 Visual Communication: Uses visual elements like graphs, charts, maps, models,
demonstrations, slides, flipcharts, posters, and neon hoardings to convey information.
Visual communication can enhance understanding and retention of information but can
be expensive.
 Audio-Visual Communication: Combines audio and visual elements, using mediums
like television, cinema, the internet with multimedia, video conferencing, and electronic
 presentations. This mode is effective because it stimulates both sight and hearing, aiding
in message retention and reaching a wide audience, but it can be costly.
 Audio Communication: Involves electronic devices and platforms that allow
participants to hear and speak in real time, such as teleconferencing systems, virtual
classrooms, and multimedia tools.
 Written Communication: Suitable for detailed information that needs to be documented
and referred to later. Examples include letters, reports, minutes, emails, newsletters,
surveys, Twitter, and blogs. Written communication is often used for official records.
Non-Verbal Communication: Non-verbal communication conveys information without spoken
or written words, using body language, gestures, facial expressions, eye contact, touch, space,
and voice tone. Non-verbal cues often provide more accurate context than words and can either
reinforce or contradict verbal messages.
 Facial Expressions: Universal indicators of emotions like happiness, sadness, anger,
surprise, fear, and disgust.
 Body Movements and Posture: Communicate attitudes and emotions through the way a
person sits, walks, or stands.
 Gestures: Include waving, pointing, and using hands to express ideas, though meanings
can vary across cultures.
 Eye Contact: Conveys interest, affection, hostility, or attraction and is crucial for
maintaining conversation flow.
 Touch: Communicates various messages, such as a handshake for greeting, a pat on the
back for encouragement, or a hug for affection.
 Space: Physical proximity during interactions can signal intimacy, aggression, or
dominance, depending on cultural norms and personal relationships.
 Voice: The tone, pace, volume, and inflection of speech can convey emotions like
sarcasm, anger, affection, or confidence.
By using these various methods effectively, business communication can be more efficient,
clear, and impactful.)
CHANNELS OF COMMUNICATION
Communication channels are the mediums through which information flows within and outside
an organization. Effective communication relies on choosing the appropriate channel based on
the message, the audience, and the context. Here are the primary channels of communication:
Formal communication:
Formal Communication
Formal communication is the exchange of official information within an organization. It follows
specific rules and protocols. Here are the main points:
 Purpose: To convey official information, requests, commands, and reports.
 Control: The flow of information is controlled and deliberate.
 Mediums: Can include verbal, nonverbal, and written messages such as letters, emails,
telephone calls, reports, and meetings.
 Records: All formal communications are typically recorded and stored for future
reference.
 Authorized Senders: Only authorized individuals send formal messages through official
channels to ensure they reach the correct recipients.
Examples of Formal Communication:
 Work Commands: Instructions given by a manager to employees.
 Reports: Financial reports, sales reports, and inventory reports.
 Policies: Statements and documents outlining company policies.
 Business Plans: Detailed plans about company goals and strategies.
 Meetings: Scheduled discussions and review meetings.
 Newsletters: Company newsletters to inform employees and clients about goals and
updates.
Importance of Formal Communication:
 Accuracy: Ensures information is accurate and reaches the right people.
 Clarity: Helps in clear and unambiguous transmission of information.
 Accountability: Keeps a record of communications for future reference.
 Coordination: Facilitates coordination between different departments.
Challenges and Considerations:
  Choosing the Right Channel: With the advent of video conferencing, mobile
technology, and electronic communication, managers must choose the most effective
channel for their messages.
 Horizontal Communication: Often missing or inefficient, horizontal communication is
essential for accurate information flow between departments.
Formal communication channels are structured pathways through which information flows
within an organization. Here are the main types of formal communication channels:
1. Vertical Communication
Vertical communication involves the flow of information up and down the organizational
hierarchy.
 Upward Communication:
o Purpose: To provide feedback, suggestions, and reports from lower-level
employees to higher-level management.
o Examples: Employee surveys, feedback forms, progress reports, and suggestion
boxes.
 Downward Communication:
o Purpose: To disseminate policies, instructions, and official announcements from
top management to lower-level employees.
o Examples: Company newsletters, policy manuals, official memos, and
instructions.
2. Horizontal Communication
Horizontal communication occurs between colleagues or departments at the same hierarchical
level.
 Purpose: To promote coordination and collaboration among peers or departments.
 Examples: Inter-departmental meetings, project teams, task forces, and collaborative
emails.
3. Diagonal Communication
Diagonal communication involves the exchange of information between employees at different
levels and departments.
 Purpose: To facilitate communication that crosses both functional and hierarchical
boundaries.
  Examples: Project collaboration between different departments, communication between
a department head and an employee from another department.
4. Written Communication
Written communication is a critical formal channel that includes documented information.
 Purpose: To provide a permanent record of information, instructions, and official
announcements.
 Examples: Emails, letters, reports, policy documents, meeting minutes, and newsletters.
5. Oral Communication
Oral communication includes spoken information conveyed in person or through electronic
means.
 Purpose: To ensure immediate feedback and clarification, suitable for complex or urgent
information.
 Examples: Face-to-face meetings, telephone calls, video conferences, presentations, and
briefings.
6. Official Announcements and Bulletins
These are formal notices used to communicate important information to a large audience within
the organization.
 Purpose: To inform employees about significant events, changes, and updates.
 Examples: Official bulletins, company-wide emails, announcement boards, and digital
bulletins.
7. Formal Reports and Documentation
Detailed documents that provide comprehensive information about specific topics.
 Purpose: To offer in-depth analysis, data, and insights for decision-making.
 Examples: Financial reports, annual reports, audit reports, and performance evaluations.
Importance of Formal Communication Channels
 Clarity and Precision: Ensures information is clear, precise, and accurately conveyed.
 Documentation: Provides a permanent record for future reference.
 Authority and Accountability: Information is shared by authorized personnel, ensuring
accountability.
 Coordination: Facilitates effective coordination among different levels and departments.
Choosing the Right Formal Communication Channel
Selecting the appropriate formal communication channel depends on several factors:
 Nature of the Message: Complex or detailed information may require written reports,
while urgent information might be better conveyed orally.
 Audience: Consider the preferences and technological access of the audience.
 Urgency: Immediate communication may require phone calls or video conferences,
while less urgent matters can be communicated through emails or reports.
 Confidentiality: Sensitive information should be shared through secure channels.
By understanding and effectively utilizing these formal communication channels, organizations
can ensure that information is accurately conveyed, efficiently shared, and appropriately
received.

In-formal communication:
It is also known as grapevine communication. The communication which does not
follow any pre-defined channel for the transmission of information is known as
informal communication. This type of communication moves freely in all directions, and
thus, it is very quick and rapid. Example: Sharing of feelings, casual
discussion, gossips, etc
In any organization, this type of communication is very natural as people interact with
each other about their professional life, personal life, and other matter.
 Informal communication arises out of all those channels that fall outside the
formal channels and it is also known as grapevine.
 It is established around the societal affiliation of members of the organization.
Informal communication does not follow authority lines as in the case of formal
communication.
 Informal communication takes place due to the individual needs of the members
of an organization and subsists in every organization.
 Normally, such communication is oral and may be expressed even by simple
glance, sign or silence. Informal communication, is implicit, spontaneous
multidimensional and diverse. It often works in group of people, i.e. when one
person has some information of interest; he passes it on to his informal group and
 so on.
An organization can make efficient use of informal channels to fortify the formal
channels of communication. It acts as a valuable purpose in expressing certain
information that cannot be channeled via the official channels. It satisfies the people
desires to identify what is happening in the organization and offers an opportunity to
express dreads, worries and complaints. Informal communication also facilitates to
ameliorate managerial decisions as more people are involved in the process of decision-
making.
Inspite on many advantages, informal communication has certain disadvantages. Informal
communication contains facts, deceptions, rumors and unclear data. The informal
channels of communication may transmit completely imprecise information that may
harm rather than help an organization. In addition, it is impossible to fix the responsibility
for its origin or flow of information. However, for the efficient working of any
organization both formal and informal communications are required.
An example of an informal communication channel is lunchtime at the organization's
cafeteria/canteen. Here, in a relaxed atmosphere, discussions among employees are encouraged.
Also managers walking around, adopting a hands-on approach to handling employee queries is
an example of an informal communication channel. Quality circles, team work, different
training programs are outside of the chain of command and so, fall under the category of
informal communication channels.
Grapevine is an informal channel of business communication. It is called so because it
stretches throughout the organization in all directions irrespective of the authority levels. Man
as we know is a social animal. Despite existence of formal channels in an organization, the
informal channels tend to develop when he interacts with other people in organization. It exists
more at lower levels of organization. Grapevine generally develops due to various reasons. One
of them is that when an organization is facing recession, the employees sense uncertainty. Also,
at times employees do not have self-confidence due to which they form unions. Sometimes the
managers show preferential treatment and favour some employees giving a segregated feeling to
other employees. Thus, when employees sense a need to exchange their views, they go for
grapevine network as they cannot use the formal channel of communication in that case.
Generally during breaks in cafeteria, the subordinates talk about their superior‟s attitude and
behaviour and exchange views with their peers. They discuss rumours about promotion and
transfer of other employees. Thus, grapevine spreads like fire and it is not easy to trace the
cause of such communication at times.
Example of Grapevine Network of Communication
1. Suppose the profit amount of a company is known. Rumour is spread that this much
profit is there and on that basis bonus is declared.
2. CEO may be in relation to the Production Manager. They may have friendly relations
with each other.
Advantages of Grapevine Communication
1. Grapevine channels carry information rapidly. As soon as an employee gets to know
some confidential information, he becomes inquisitive and passes the details then to
his closest friend who in turn passes it to other. Thus, it spreads hastily.
2. The managers get to know the reactions of their subordinates on their policies. Thus,
the feedback obtained is quick compared to formal channel of communication.
3. The grapevine creates a sense of unity among the employees who share and discuss
their views with each other. Thus, grapevine helps in developing group cohesiveness.
4. The grapevine serves as an emotional supportive value.
5. The grapevine is a supplement in those cases where formal communication does not
work.
Disadvantages of Grapevine Communication
1. The grapevine carries partial information at times as it is more based on rumours.
Thus, it does not clearly depicts the complete state of affairs.
2. The grapevine is not trustworthy always as it does not follows official path of
communication and is spread more by gossips and unconfirmed report.
3. The productivity of employees may be hampered as they spend more time talking
rather than working.
4. The grapevine leads to making hostility against the executives.
5. The grapevine may hamper the goodwill of the organization as it may carry false
negative information about the high level people of the organization.
A smart manager should take care of all the disadvantages of the grapevine and try to
minimize them. At the same time, he should make best possible use of advantages of
 grapevine.
(Summary: Informal Communication (Grapevine Communication)
Definition: Informal communication, also known as grapevine communication, does not follow
any pre-defined channels and moves freely in all directions. It is quick, natural, and involves
sharing feelings, casual discussions, and gossips.
Characteristics:
 Spontaneous and Flexible: Arises naturally without planning.
 Multidirectional: Moves freely within the organization.
 Personal and Social: Involves personal interactions and societal affiliations.
 Oral and Nonverbal: Often oral, but can include gestures, signs, or silence.
Purpose and Function:
 Supports Formal Communication: Complements formal channels by addressing areas
they might miss.
 Expresses Hidden Concerns: Allows sharing of worries and complaints.
 Enhances Decision-Making: Involves more people in the process.
 Provides Emotional Support: Offers a platform for expressing personal issues.
Examples:
 Casual discussions in the cafeteria.
 Managers engaging informally with employees.
 Teamwork and training programs outside formal channels.
Advantages:
1. Rapid Information Spread: Information travels quickly.
2. Quick Feedback: Managers get immediate reactions to policies.
3. Fosters Unity: Creates a sense of belonging among employees.
4. Emotional Support: Provides a support system for employees.
5. Supplement to Formal Communication: Fills gaps left by formal channels.
Disadvantages:
1. Incomplete Information: Often based on rumors, leading to partial or incorrect
information.
2. Unreliable: Lack of official validation makes it untrustworthy.
3. Decreased Productivity: Employees may spend more time talking than working.
4. Potential Hostility: Can create negative feelings towards management.
5. Damage to Goodwill: False information can harm the organization‟s reputation.
Managing Informal Communication:
 Monitor and Guide: Keep track of informal communication and guide it positively.
 Clarify and Verify: Use formal channels to correct misinformation.
 Engage Employees: Foster open communication to reduce reliance on the grapevine.
 Encourage Positive Use: Use it for team-building and morale-boosting activities.
Conclusion: Both formal and informal communications are essential for the efficient functioning
of an organization. While informal communication can spread information quickly and foster
unity, it requires careful management to mitigate its disadvantages. A smart manager should
harness the benefits while minimizing the drawbacks.)
DIMENSIONS OF COMMUNICATION
(Draw the Diagram)
Downward Communication:
Communication that flows from a higher level in an organization to a lower level
is a downward communication. In other words, communication from superiors to
subordinates in a chain of command is a downward communication. This
communication flow is used by the managers to transmit work-related information
to the employees at lower levels. Employees require this information for
performing their jobs and for meeting the expectations of their managers.
Downward communication is used by the managers for the following purposes –
 Providing feedback on employees‟ performance.
 Giving job instructions.
 Providing a complete understanding of the employees‟ job as well as to
communicate them how their job is related to other jobs in the
organization.
 Communicating the organizations mission and vision to the employees.
 Highlighting the areas of attention.

Organizational publications, circulars, letter to employees, group meetings etc

are all examples of downward communication. In order to have effective and
error-free downward communication, managers must:

 Specify communication objective.

 Ensure that the message is accurate, specific and unambiguous.
 Utilize the best communication technique to convey the message to the
receiver in right form

Upward Flow of Communication: Communication that flows to a higher level

in an organization is called upward communication. It provides feedback on
how well the organization is functioning. The subordinates use upward
communication to convey their problems and performances to their superiors.
The subordinates also use upward communication to tell how well they have
understood the downward communication. It can also be used by the employees
to share their views and ideas and to participate in the decision-making process.
Upward communication leads to a more committed and loyal workforce in an
organization because the employees are given a chance to raise and speak
dissatisfaction issues to the higher levels. The managers get to know about the
employees‟ feelings towards their jobs, peers, supervisor and organization in
general. Managers can thus accordingly take actions for improving things.
Grievance Redressal System, Complaint and Suggestion Box, Job Satisfaction
surveys etc all help in improving upward communication. Other examples of
Upward Communication are -performance reports made by low level
management for reviewing by higher level management, employee attitude
surveys, letters from employees, employee-manager discussions etc.

Lateral / Horizontal Communication:

Communication that takes place at same levels of hierarchy in an organization is
called lateral communication, i.e., communication between peers, between
managers at same levels or between any horizontally equivalent organizational
member. The advantages of horizontal communication are as follows:
 It is time saving.
 It facilitates co-ordination of the task.
 It facilitates co-operation among team members.
 It provides emotional and social assistance to the organizational members.
 It helps in solving various organizational problems.
 It is a means of information sharing.
 It can also be used for resolving conflicts of a department with other
department or conflicts within a department.
Diagonal Communication or crosswise communication:
Communication that takes place between a manager and employees of other
workgroups is called diagonal communication. It generally does not appear on
organizational chart. For instance - To design a training module a training
manager interacts with an Operations personnel to enquire about the way they
perform their task. The Accounts people of an organization visiting different
employees in various departments for their IT calculation, bonus for workers etc.
fall under diagonal communication.

PRINCIPLES OF EFFECTIVE COMMUNICATION

1. Clarity:
Clarity is the soul of a message. It means the accurate transfer of ideas from the sender‟s side to
the receiver. Every message should be conveyed in a clear manner. Clarity comes through clear
thinking. A good message shows the idea directly and clearly. • A writer should not start the
message unless he knows how (use of language) and what (central idea) he wants to say. A
message written in the simple and ordinary language is always natural and appreciable. • To
achieve clarity, keep in mind the following points: – Use common and simple language. –
Construct effective sentences and short paragraphs. – Use concrete words instead of abstract
words. – Avoid unnecessary information.
2. Correctness:
Language experts say that writing is art but difficult. There is no shortcut to being a good writer.
It is learned through consistent practice and constant struggle. The message being communicated
must be correct. Correctness refers to correct grammar, punctuation, and spelling. Though
mistakes are never intentional yet they spoil the image. • To achieve correctness, follow these
guidelines: – Check the accuracy of facts and figures. – Check mistakes in punctuation,
grammar, and capitalization. – Check misspelled words. – Use the right level of language.
3. Conciseness:
The beauty of diction lies in its conciseness. Conciseness means brief and complete. Be as brief
as possible. But it must not be so brief as to be discourteous. • Conciseness is a pre-requisite to
effective messages. A concise message saves time and expense for both sender and receiver. • To
achieve conciseness, observe the following suggestions: – Remove the wordy expressions. –
Include only relevant material. – Avoid unnecessary repetition.
4. Courtesy:
Courtesy is the most important quality of the messenger. “Everyone gains where courtesy reigns”
is an old but wise saying. Courtesy means politeness. It is an attitude that shows respect for
others. It helps in building goodwill. • It is not enough to use polite expressions like” thank you”,
”kindly”, “we appreciate”, “please” etc but the whole letter must have a courteous tone. • To
achieve courtesy, keep in mind the following points: – Be sincere. – Use expressions that show
respect. – Be thoughtful and appreciative of the receiver‟s point of view. – Avoid humor. –
Avoid discriminatory language i.e., race, color, gender, creed etc.
5. Concreteness:
Communicating concretely means being specific, meaningful and clear. Vague and general
messages result in no response. It helps the receiver to understand the exact idea. Concrete use of
available facts and figures adds to the authenticity of the message. • To achieve concreteness,
consider the following ways: – Use clear and image building words. – Use specific facts and
figures. – Use active voice than passive voice.
6. Consideration:
Consideration is to put you in the place of the receiver. It means preparing every message with
the message receiver in mind. This mode of consideration is called “you attitude”. • When you
are truly considerate, you try to show sincere regard for his interests and benefits. To be
considerate, the following points should be kept in mind: – See your material from your reader‟s
point of view. – Focus on “you” instead of” we” e.g., – Be sure about the benefits of the receiver.
– Consider the needs and problems of the receiver. – Use positive and optimistic
7. Completeness:
A message should be complete to bring the desired result. A complete message contains all the
facts required by the receiver. The receiver‟s reaction to an incomplete message is often
unfavorable. An incomplete message shows negligence and carelessness of the writer. • For
completeness follow these guidelines: – Remember the five W‟s (what, when, where, why, who)
and how. – Provide all the necessary information. – Answer all the questions asked. – Include
additional information, if desired.
(Or)
Principles of Effective Communication:
These are the 10 principles of Effective communication.
1. Principle of Clarity: For business communication to work, clarity is the number one
rule that everyone should follow. A failed message is one that leaves the audience
perplexed. Knowing what you want to say, how you want to say it, and the format you
want to say it in will help you deliver your message clearly. A lack of clarity in any of
these components will ultimately affect the effectiveness of your message.
2. Principle of simplicity: The communication‟s message should be clear, concise, and
easy to understand. It should be so simple that even a young child can understand it. Use
common sentences and words to communicate with people.
3. Principle of Brevity: When communicating, messages should be concise and preserve
the best possible flow of the necessary information. The data must be sufficient to cover
the particular field. If you can communicate the topic as plainly as you can, there is no
need to elaborate.
4. Principle of objective: Before actually transmitting the message, the communicator
should know clearly the purpose of the communication. The goal might be to gather
important information, disseminate information, persuade recipients to take action or alter
their perspective on the subject.
5. Principle of accuracy: The message‟s information should be accurate; providing false
information will lead to confusion. As a result, there will be a breakdown in
communication between the sender and the receiver. Hence in effective communication,
the information provided should be accurate in nature.
6. Principle of attentiveness: Effective business communication depends on having good
listening skills. Thus both sides should be attentive while sending and receiving a
message.
7. Principle of relevancy: While communicating the subject matter should always have
relevant information. Giving irrelevant and unnecessary information should be removed
from the subject matter of the communication.
8. Principle of feedback: being able to send a message is not the only thing to an effective
communicator. Feedback is required from the receiver to be effective at communication.
 9. Principle of time consideration: Proper time for effective communication should be
considered by the communicators and if communication is not made on time, its
effectiveness is lost.
10. The principle of language control: Having control over language is very important for
effective communication. Communicators should be careful with the words they choose
and the sentences that are formed from them.

BARRIERS TO COMMUNICATION
(For any kind of communication to be successful, it is essential that the receiver attributes the
same meaning to the message as intended by the sender of the message. But all acts of
communication are not perfect or successful. At times, some meaning is lost as the message
encounters various barriers along its passage between the sender and the receiver. Such barriers
may arise at any of the stages through which a message passes during the process of
communication. This is also called miscommunication.

Some of the common problems that lead to the failure of communication are: noise, cultural
differences, complexity of subject matter, personal biases, semantic problems, socio-
psychological barriers, filtering, information overload, poor retention, poor listening, goal
conflicts, slanting, inferring, etc.
Communication is defined as the process by which information is exchanged between
individuals through a system of signs, symbols. The concept of communication involves a
sender, a message and a recipient.)
Barriers refer to obstacles or hindrances that prevent movement, flow and access of information
in or outside of an organization.
The sender sends the message and the recipient is the receiver of the message. The process of
communication is never smooth as it is affected by the barriers of communication.
Barriers to effective communication can result in confusion which can lead to incorrect
information being conveyed or miscommunication which can lead to loss of business.
Following are some of the barriers to effective communication:
1. Semantic barriers
2. Psychological barriers
3. Organisational barriers
4. Cultural barriers
5. Physical barriers
6. Physiological barriers
Semantic barriers: Semantic barriers are also known as language barriers. These barriers are
caused due to improper communication between the sender and the receiver. The following
instances of semantic barriers can be witnessed in communication.
Poor quality of message: Message when communicated should be precise and easy to
understand, that makes it easy for the receiver to grasp the information conveyed.
Sometimes, due to the lack of clarity or complexity of the way of providing information from the
sender, there can be a case of semantic barriers.
For e.g. A manager is conversing in English to a group of workers who understand and speak
Bengali. It will create confusion among workers as they will not be able to understand what is
being conveyed by the manager.
Technical language: Language barriers also arise when the sender of the message is speaking in
technical terms while the receiver is unaware of the terms. It creates confusion and
misunderstanding between the sender and receiver by acting as a barrier to effective
communication.
Psychological Barriers: Psychological barriers play an important role in interpersonal
communication as the state of the mind of the sender or the receiver can make it difficult to
understand the information that is conveyed, which often leads to misunderstanding.
Here are some instances where psychological barriers to communication can be seen.
1. Premature evaluation of information by the receiver even before it is transmitted can lead to
barriers in communication, as it will create premature conclusion to the message, which
withholds the original message.
2. Inadequate attention from the receiver‟s end at the time of communication can lead to barriers
of communication as the information conveyed by the sender is not properly received by the
receiver.
3. When information is passed within multiple sources, the final information is distorted as the
receivers of the message are not able to retain everything that was conveyed. This can cause
communication barriers.
4. If the receiver is not interested to listen the speaker‟s topic.
5. Inability to pay attention is also a psychological barrier. Day dreaming and a wandering mind
may prevent you from listening.
6. Prejudice is a psychological barrier. Receiver may refuse to listen to something, which goes
against your ideas and beliefs. Receiver hear only what you want to hear.

Organisational barriers: Organisational barriers are those barriers that are caused due to the
structure, rules and regulations present in the organisation. The various types of barriers that can
be encountered due to superior subordinate relationships where the free flow of communication
is not possible.
Sometimes the complexity of organisational structure and multiple managers make it difficult to
convey information properly, and the information gets distorted leading to miscommunication.
Cultural barriers: Cultural barriers are those that arise due to lack of similarities among the
different cultures across the world. A term that can be harmless in one culture can be regarded as
a slang in another culture. Moreover, various beliefs can differ from one culture to another.
Physical barriers: Physical barriers to communication are those that arise due to certain factors
like faulty equipment, noise, closed doors and cabins that cause the information sent from sender
to receiver to become distorted, which results in improper communication.
Distortion − It occurs when the meaning of the message is the lost while encoding and
decoding the message. Physical distrations are also there such as, poor lightning, uncomfortable
sitting, unhygienic room also affects communication in meeting.
Noise − It is found in the environment of communication and interrupts the
communication process. Use of loud speakers interferes with communication.
Overflow of Information − This acts like a barrier when the receiver does not have the
capacity to receive all the information and can miss some important points or misinterpret the
meaning of the whole message altogether.
 Noisy surroundings- The environment may be too noisy, which may affect listening.
Physical distance- You may be too far away from the speaker or too close to the speaker
to be able to hear clearly.
Physiological barriers: Physiological barriers arise when a sender or the receiver of the
communication is not in a position to express or receive the message with clarity due to some
physiological issues like dyslexia, or nerve disorders that interfere with speech or hearing.
Conclusion:
The barriers to effective listening are Linguistic/Semantic Barriers, Socio-Cultural Barriers,
Psychological Barriers, Physical Barriers. Ways to deal with barriers in written communication
are Right people, Right language, Right presentation, Right content, Right sequence, Right
channel, Right feedback. Lack of effective communication across and beyond a business
organization is termed as poor communication. Poor communication can have disastrous effect
on the workforce and also on the overall productivity and efficiency of the organization.
(Summary:
Barriers are obstacles that hinder the flow of information within or outside an organization,
causing confusion, miscommunication, and potential business loss. Key barriers include:
1. Semantic Barriers:
o Language Barriers: Miscommunication due to differences in language or
terminology.
o Poor Message Quality: Complex or unclear messages can confuse the receiver.
o Technical Language: Use of jargon or technical terms unfamiliar to the receiver.
2. Psychological Barriers:
o Premature Evaluation: Forming conclusions before receiving the full message.
o Inadequate Attention: Lack of focus from the receiver during communication.
o Information Overload: Distortion of the message when passed through multiple
sources.
o Lack of Interest: Disinterest in the topic being communicated.
o Wandering Mind: Daydreaming or distractions prevent effective listening.
o Prejudice: Rejecting information that contradicts personal beliefs.
3. Organizational Barriers:
o Hierarchical Structure: Complex structures and multiple managers can distort
communication.
o Rigid Rules and Regulations: Restrictive policies can hinder free
communication.
4. Cultural Barriers:
o Cultural Differences: Variations in language, beliefs, and customs can cause
misunderstandings.
5. Physical Barriers:
o Environmental Noise: Loud environments disrupt communication.
 o Faulty Equipment: Malfunctioning tools can distort messages.
o Distance: Physical separation can affect the clarity of communication.
o Overloaded Information: Excessive information can overwhelm the receiver.
6. Physiological Barriers:
o Health Issues: Conditions like dyslexia or hearing impairments can interfere with
clear communication.
Conclusion
Effective communication is essential for organizational success. Barriers such as semantic,
psychological, organizational, cultural, physical, and physiological can hinder communication.
Overcoming these barriers involves using the right language, content, presentation, channel, and
feedback mechanisms. Poor communication can negatively impact workforce productivity and
organizational efficiency.)