CLASS – XII (SESSION 2020 – 2021)

SUBJECT – BUSINESS STUDIES

LESSON – dt. 20 – 04 - 2020

BUSINESS COMMUNICATION

SCOPE OF SYLLABUS

2. (i) Business Communication:

Meaning and definition of communication; importance of communication in

business, elements of the Communication Process, Methods of communication:

Oral, Written, Gestural, Visual (Meaning, advantages and disadvantages of all

these methods). Difference between oral and written communication, Types of

communication: Internal and External, formal and Informal, Horizontal and

Vertical (Meaning, Advantages and Disadvantages of each); distinction between –

Internal and External; Formal and Informal; Horizontal and Vertical

Communication (Semantic, Physical and Mechanical, Organisational, Socio-

Psychological: meaning only, detailed explanation not required); overcoming the

barriers to communication.

MEANING OF COMMUNICATION

Communication is a process of an exchange of thoughts, ideas, opinions between two or more

persons to create a common ground of understanding. The term Communication has been derived

from the Latin word ‘Communis’ which means common. Thus, communication is used to mean

sharing of information or a particular idea in common. Communication is said to be an

indispensible element in human relationship. It is only through the process of communication by

which we interact with each other. Almost in all the cases and in all types of jobs, communication

is present. We know that the success of any enterprise or commercial organization depends upon

how effectively and efficiently the employees are being communicated and trained. By virtue of

communication, an employer gives the required training to his employees and make them

understand their work.

To sum up communication may be defined as the exchange of thoughts, ideas, opinions, or

emotions between two or more persons to create a common ground of understanding and for a

proper feedback. In other words, communication is the process by which the entire organizationis

linked to a common goal.

NATURE/ CHARACTERISTICS OF COMMUNICATION

The following are the different characteristics or features of communication:

i. Two or more persons : Communication is a process which involves at least two persons,

a sender and a receiver. It has to have minimum two persons to exchange the desired

information.

ii. Continuous process : Communication is said to be a continuous process as it required is

by the superiors, subordinates and fellow members on a continuous basis to help operations

run smoothly.

iii. Two-way process : Communication is said to be a two-way process because it involves

both sending the message and receiving the response or reaction to that message.

Communication is said to be incomplete until the receiver has understood the message and

his feedback or response is known to the sender.

iv. Circular process : Communication is said to be a circular process because it involves a

circular flow of messages. The response to the message which is popularly known as

feedback, requires another message to be transmitted by the sender. The response indicates

the impact of the communication.

v. Pervasive in nature : Communication is said to be pervasive in nature as it is required in

all organizations and at all levels of authority.

vi. Multiple Channels : Channel is the medium or route through which the subject matter of

communication is passed from the sender to the receiver. Communication can be

transmitted by various channels. Communication may be formal and informal in nature.

Formal communication may be vertical or horizontal.

vii. Helps in Mutual understanding : Communication helps to create mutual understanding

between people. Employers usually communicate efficiently to influence the human

behaviour and obtain the desired response from them. Communication is a means and not

an end in itself.

viii. Several Media : Communication usually takes place through several media. For example,

it may take place through oral or by written words.

ix. Flows in all direction : Communication basically flows either horizontally or vertically.

When communication flows between persons of similar ranks in different departments, it

is known as horizontal communication. Communication may flow downward or upward in

case of vertical communication. When a superior communicates to his subordinates it is

known as downward communication and when the communication flows upwards from

the subordinates to a superior it is known as upward communication. In case of diagonal

communication messages transmitted between two persons occupying different ranks in

different department.

x. Establishing interpersonal relations : The basic purpose of communication is to

influence human behaviour and act as a means of establishing interpersonal relations. A

superior tries to create motivation and loyalty among his subordinates by sharing and

exchanging each others feeling, opinions and other information.

NATURE/ CHARACTERISTICS OF COMMUNICATION AT A GLANCE

Communication – The Combination of 7C’s and 4S’s : Corporate communication is the

combination of 7C’s and 4S’s. The seven C’s are – Credibility, Courtesy, Clarity, Correctness,

Consistency, Concreteness and Conciseness. The 4S’s are – Shortness, Simplicity, Strength and

Sincerity.

STEPS IN THE PROCESS OF COMMUNICATION

The communication process comprises the following steps which are as follows :

i. Sender : A sender is a person who initiates the process of communication. He/She is the

one who sends a message or an idea. A sender may be a speaker, writer or an actor. Sender

is also known as communicator.

ii. Message : Message is said to be the subject matter of communication. The message

comprises of words, facts, figures, ideas and many other things.

iii. Encoding : Encoding is the process of translating or converting the idea or thoughts into a

language or code which can be easily understandable to both parties.

iv. Channel : The channel usually means the medium or route through which the message is

passed from the sender to the receiver. The channel or the medium serves as a link between

the sender and the receiver. It takes place through telephone, radio, television or face to-

face talk. There are many other channels.

v. Receiver : A receiver is popularly known as communicate. A receiver may be a person or

group of persons who is supposed to receive the message. A receiver may be a listener,

reader or an observer.

Two or more persons

Continuous process

Two-way process

Circular process

Pervasive in nature

Multiple Channels

Helps in Mutual understanding

Several Media

Flows in all direction

Establishing interpersonal relations

vi. Decoding : Decoding may be defined as the process of translating the message into words

for the purpose of easy understanding. The receiver interprets the message to derive or

understand its meaning and gets ready to react or provide feedback.

vii. Feedback : The term feedback may be defined as the response or reaction of the receiver

to the message communicated by the sender. It is only through feedback the reader can

judge the effectiveness of his message. Communication is said to be incomplete in nature

if feedback is not available or given to the sender.

STEPS IN THE PROCESS OF COMMUNICATION AT GLANCE

OBJECTIVES OF COMMUNICATION

i. Promoting managerial efficiency :Communication helps to improve the efficiency of the

management of the organization. It is only through better communication the employees

are guided by the managers in a much better way.

ii. To implement decisions quickly :It is highly essential for every organization to take

decision quickly. Thus, the subordinates or the employees are required to understand the

orders and managerial decisions and take necessary steps to implement them through

communication.

iii. To educate and train people: Business frequently use effective methods of

communication to educate workers and consumers. Effective marketing greatly depends

upon effective communication.

iv. To secure ¿ :Feedback is said to be an important element in the process of communication.

It is only by encouraging the employees and consumers to react or respond, the

management can get new and valuable ideas in the form of suggestions and complaints.

v. To create Team Work : Communication is designed to create mutual understanding and

cooperation among people working together. It is said to be a great binding force and it is

only through effective communication, a team can work successfully.

Sender

Message

Encoding

Channel

Receiver

Decoding

Feedback

vi. To facilitate leadership :A leader can properly rule and give orders to his employees only

if his communication skills are perfect. Personal communication helps managers in

maintaining man-to-man relationship.

vii. To motivate employees : Good communication will lead to better industrial relations and

go a long way towards achieving greater acceptance of new ideas.

OBJECTIVES OF COMMUNICATION AT A GLANCE

IMPORTANCE OF COMMUNICATION

i. Basis of decision making and planning :Communication facilitates decision making by

providing the required information. The quality of decision made in an organization

depends largely on the amount and quality of information available to the decision-maker.

ii. Facilitates Co-ordination :Communication facilitates co-ordination by providing proper

upward, downward and horizontal interaction between members of different departments

or sections at all levels of authority. Exchange of information and ideas help to bring about

unity of action in the pursuit of common purpose.

iii. Effective control :Managerial function of control involves measurement of actual

performance against planned targets. It acts as a tool for effective control by reporting the

results to higher authorities and communication of corrective actions taken. All these things

would not have been possible if there was no efficient system of communication.

iv. Higher productivity at lower cost :Effective communication helps the organization to

increase the quantity and quality of work. Thus, it helps to save time and effort and leads

to reduction in the cost of productions.

v. Industrial harmony and peace :An effective communication system creates mutual trust

and confidence between management and employees. It is not only essential for healthy

industrial relation but also helpful in boosting the morale and motivation of employees

working in the organization. Sharing of information and ideas with workers eliminates

Promoting managerial efficiency

To implement decisions quickly

To educate and train people

To secure feedback

To create Team Work

To facilitate leadership

To motivate employees

misunderstanding. Thus it is highly necessary that the management, with the help of

effective communication should maintain cordial relations not only with employers and

employees but also with customers, suppliers and communicate at large. It not only ensures

industrial harmony and peace but helps in developing a good public image of the

organization.

vi. Democratic management :Communication is the basis of industrial democracy. It helps

to organize human and other resources in the most effective and efficient way.

vii. Effective leadership :Communication is the basis of effective leadership because it

transmits the leaders’ ideas and opinions to the subordinates. A manager can delegate

authority and there by increase leadership capacity only by virtue of an effective

communication.

IMPORTANCE OF COMMUNICATION AT A GLANCE

BARRIERS TO COMMUNICATION

Barriers to effective communication are the obstacles which create confusion, misunderstandings

and may even lead to breakdown of the communication process. Communication is not always as

effective as it should be. Communication may be vague and badly expressed and may suffer from

lack of clarity or poor retention. Large number of communications do not receive attention they

deserve. The various types of barriers such asphysical, semantic, personal and status barrier are

given below :

(i) Physical barriers: Any barrier in the physical environment is termed as physical barrier.

Large workspaces physically separated from one another can cause delay in

communication. Similar situation might occur when the staff is located in different

Basis of decision making and planning

Facilitates Co-ordination

Effective control

Higher productivity at lower cost

Industrial harmony and peace

Democratic management

Effective leadership

buildings or on different sites. Distractions like background noises may cause

disturbances. Poor lighting, too hot or too cold weather. may also hinder the process of

communication by affecting a person’s concentration. In case of written communication,

illegible writing and unclear printing will be categorized under physical communication.

(ii) Personal or psychological barriers: personal factors like judgment. Emotions and social

values create a psychological distance between the sender and the receiver. Prejudices,

inferiority and superiority complex, attitudes, time pressure affect the interpretation of

massages.

(iii) Semantic barriers: The word semantic means systematic study of meaning of words. It

arises when people use different words in same way or same word in different ways.

Words of language are the means of communication, and how well the sender encodes

the idea decides how well it would be decoded. Language being a symbolic representation

of a phenomena, room for different interpretation always remains. It is also possible that

the listener does not listen intently and jumps to a conclusion by adding his own colour

and assumptions to the original message. often cultural differences also lead to creation

of different meanings for the same words thus leading to misinterpretation of the words.

(iv) Organizational barriers :The classical organization structure restricts communication.

When the organization structure is complex and comprises several levels of management,

it is expected that breakdown or distortion in communication will definitely arise.

Traditional organization structures which are totally based on authority relationship

restrict free and frequent communication. The result is delay in the transmission process

and distortion in the message transmitted.

(v) Technological barriers:This is the era of technology and hence technology is widely

used to structure communication mediums too. Technical snags in various equipments

like computers, fax machines, audio video devices may delay communication process.

Besides all people involved in the communication process are not necessarily tech

friendly. Hence, an information may not be useful to a person who cannot access the

Internet. Besides social networking sites are more predominant than face-to-face

interactions these days, thus, reducing the warmth in communication, expected out of a

coffee table chat which is face to face.

(vi) Status barriers : The difference in the status of a superior and a subord is an obstacle

towards an effective communication. A superior in order to maintain status difference will

convey only selected information to his subordinates. Similarly, a subordinate may also

convey those things which the superior would appreciate and will not report his

shortcomings.

(vii) Premature evaluation : Few people are in the habit of forming a judgement before

reading/listening the entire message. This tendency is called premature evaluation. This

distorts understanding an makes communication ineffective. For example, reading the

first paragraph of a particular letter and coming to a solution about the entire letter. This

is premature evaluation as people tend to misunderstand the subject matter of the letter.

(viii) Inattentiveness :People whilst receiving a message containing a new idea or listening to

a message which is contrary to the expectations and belief of the receiver often become

inattentive. Inadequate attention to the message is likely to create misunderstanding.

Moreover, a poor retention of information communicated also acts as a barrier which

leads to imperfect responses.

(ix) Specialization barriers :Owing to division of labour or specialization each department

is much more concerned with its own interest and work and does not appreciate the

urgency for other departments. These differences between departments ultimately create

an obstacle or a barrier to effective communication.

(x) Other barriers :Apart from the above mentioned barriers there are other factors which

may disturb communication. People wanting to maintain status quo and resistance to

change may not go through the messages containing new ideas to introduce the change.

Due to distance problem shortage of time, pressure of work, choice of work, inappropriate

medium, communication of the message may be understood.

BARRIERS TO COMMUNICATION AT A GLANCE

OVERCOMING BARRIERS TO COMMUNICATION

i. Motivation : The message should be so designed so that it motivates the receiver to take

the desired action. In order to promote free flow of information, a sense of mutual trust and

confidence should be developed. Communication should be free from personal prejudices

and the viewpoint and interest of the receiver should be taken into consideration.

ii. Mutual trust and faith :The parties who are involved in communication must have mutual

trust and faith amongst themselves. Without any misunderstanding, they should be in a

position to make suggestions so as to correct the views of one and another.

iii. Appropriate language :The message should be expressed in simple language so that it

can be easily understood by each and every person. Vague expressions should be avoided

and as far as possible ambiguous words should not be written.

iv. Empathetic listening :Good listening habits of the listeners can remove the personal and

perceptual barriers of communication. The superiors in an organization should develop the

habit of being a patient listener as it should encourage the same thing from the subordinate.

Physical barriers

Personal or psychological barriers

Semantic barriers

Organizational barriers

Technological barriers

Status barriers

Premature evaluation

Inattentiveness

Specialization barriers

Other barriers

v. Selecting an effective communication channel :The channel or media of sending

communication should be selected on some scientific basis and careful consideration.

There should not be any delay in time between transmission and reception of the message.

It is very clear that when a good channel is selected there is no disturbance in the channel.

It is also essential that a message should reach the receiver at the right time. This is helpful

to remove channel distortion.

vi. Feedback : Feedback is the response by the receiver to the sender. Communication is

complete only when the response or reaction of the receiver becomes known to the sender.

Therefore, the receiver should be encouraged to express his reactions.

vii. Providing organizational facilities :An organization structure must be sound and

appropriate to make communication effective. The physical layout of the workplace in a

modern organization influences the communication pattern. To facilitate frequent

interaction, it is necessary to design the layout in such a manner.

OVERCOMING BARRIERS TO COMMUNICATION AT A GLANCE

Methods or media of communication

On the basis of expression Communication can be written, oral and non-verbal in nature.

WRITTEN COMMUNICATION

Written Communication means transmission of information with the help of written words. This

may consist of messages, which may take place in the form of circulars, letters , notices , telegrams

and many others. It is a permanent record which can be used for any purpose as a reference in

future. In order to make it effective, written communication must be clear, concise, complete and

correct.

Motivation

Mutual trust and faith

Appropriate language

Empathetic listening

Selecting an effective communication channel

FeedbackProviding

organizational facilities

Advantages and Disadvantages of written communication: The advantages of written communication are as follows:

i. It is an ideal way of transmitting lengthy messages. ii. It tends to be complete, clear, precise and correct.

iii. It provides a permanent record of communication for future reference. iv. It ensures little risks of unauthorized alteration in the message v. It is suited to convey messages to a large number of persons at one and the same

time. vi. It can be quoted as a legal evidence in case of any dispute

The disadvantages of written communication are as follows:

a) It is expensive.

b) It is very formal in nature and lacks personal touch.

c) It encourages red-tapism and involves too many formalities.

d) It may be interpreted differently by different people.

e) It is time consuming.

f) It becomes difficult to maintain secrecy in a written communication.

Suitability of Written Communication

The following are the situations in which Written Communication is suitable:

i. When the message is very lengthy

ii. When a record for a future reference is to be provided.

iii. When receivers are situated at distant places.

iv. When information is to be retained for repeated use.

v. When information is needed to be sent to many number of persons at one and the

same time.

ORAL COMMUNICATION

Oral or verbal communication implies the conveying of message through spoken words. It is face-

to-face communication between individuals and includes communication through telephone,

intercom, public speech, etc.

ADVANTAGES AND DISADVANTAGES OF ORAL COMMUNICATION

The following are the advantages of Oral Communication:

i. It is quicker and saves time.

ii. It is less expensive compared to written communication.

iii. Misunderstanding or doubts can be removed immediately.

iv. It provides as the only means of conveying messages in terms of emergencies.

v. Immediate reaction, feedback or response of the receiver can be taken.

vi. It is more flexible and the messages can be changed to suit the needs of the receiver.

The following are the disadvantages of Oral Communication:

i. Oral Communication is less reliable.

ii. Oral communication has the tendency of being distorted.

iii. Self-interest and attitude of the people influence it.

iv. Oral Communication provides no record for future reference.

v. It is not suitable for lengthy messages.

vi. Oral Communication cannot be used to communicate with people scattered over distant

places.

Suitability of Oral Communication

Oral Communication is suitable under the following conditions:

i. When the available time is very short.

ii. Whilst giving instructions and counseling the subordinates.

iii. When problems are to be discussed in groups.

iv. Interactions with trade union leaders.

v. When the feedback of the receiver’s are required immediately.

Differences between Written and Oral Communication The following are the differences between oral communication and written

communication :

Sl. No. Basis of Distinction Oral Communication Written Communication

1.

2.

3.

4.

5.

6.

7.

8.

Words used

Forms

Speed

Personal or impersonal

Flexible

Secrecy

Gestures

Distortion

Spoken words

Lectures, meetings,

interviews etc.

Its transmission takes

less time.

It tends to be personal.

More flexible

Ensures secrecy

Can be used

Greater Chance of

distortion.

Written words

Letters circulars,

notices, reports etc.

Its transmission

takes more time.

It may tend to be impersonal

Less flexible

Lacks secrecy

Cannot be used

Lesser chance of distortion

Non-Verbal Communication or Gestural Communication

Non Verbal Communication may be defined as the communication which takes place without

words. The messages are sent with the help of facial expressions, posture or body movements. For

example communicating by smiling or twinkling of eyes . It is very useful in face-to-face

communication.

The four major forms of Non-Verbal Communication are

• Sign Language • Action Language • Para Language and • Object Language.

CHANNELS OF COMMUNICATION

On the basis of organizational relationship communication can be formal and informal in nature

and it is explained as follows:

Formal Communication-Formal communication may be defined as the communication which

takes place through the formal channels of the organisation-structure deliberately and consciously

established by the management. It implies the flow of information along the lines of authority

formally established in the enterprise. Members of the enterprise are expected to communicate

with one another strictly as per channels laid down in the structure.

ADVANTAGES OF FORMAL COMMUNICATION

The following are the advantages of formal communication:

i. Reliability:

Formal communication is more reliable and dependable than any other form of

communication.

ii. Minimum distortion of message:

Since the messages are communicated through proper channel, the chance of missing

or distortion of the message is minimum.

iii. Wide area:

It is formal and routine type of communication, so it can be used widely to transmit

messages to all levels of management.

iv. Systematic communication:

It develops a particular system or order for communication. Communication is made

in a systematic way.

v. Maintenance of authority relationship:

It helps to maintain authority relationship in the organization. Organizational

hierarchy is followed in the process of communication.

ADVANTAGES OF FORMAL COMMUNICATION AT A GLANCE

Disadvantages of Formal Communication

The disadvantages of formal communication are as follows:

i. Time consuming and expensive:

It is a time-consuming and expensive method of communication as the message

travels through different levels to reach the receiver.

ii. Possibility of denial:

There may be denial of oral or verbal communication by the sender as well as the

receiver.

iii. Not applicable for long-term communication:

Messages with long term significance cannot follow the contents of the message.

iv. Possibility of distortion:

It is lost or distorted, while it passes from one level of management to another.

v. Inapplicable in times of emergency:

When emergency crops up, it cannot be applied because it hinders the free flow of

information.

DISADVANTAGE OF FORMAL COMMUNICATION AT A GLANCE

ADVANTAGES OF FORMAL

COMMUNICATIONRELIABILITY

MINIMUM DISTORTION OF

MESSAGE

WIDE AREA

SYSTEMATIC COMMUNICATION

MAINTENANCE OF AUTHORITY RELATIONSHIP

Informal Communication

Informal Communication or Grapevine:

Informal Communication is built around the social relationship of members of the organisation.

Informal communication does not flow along lines of authority, as is the case of formal

communication.

It arises due to the personal needs of the members of an organisation and exists in every

organisation. Such communication is usually oral and may be conveyed even by simple glance,

gesture, smile or silence. The network of Informal Communication is also known as Grapevine

because the origin and the direction of such communication cannot be easily traced as in the case

of a vineyard.

Informal communication is implicit, spontaneous multidimensional and varied. It operates with

much greater speed than formal communication.

Advantages of Informal Communication

DISADVANTAGES OF FORMAL

COMMUNICATION

TIME CONSUMING AND EXPENSIVE

POSSIBILITY OF DENIAL

NOT APPLICABLE FOR LONG TERM

COMMUNICATION

POSSIBILITY OF DISTORTION

INAPPLICABLE IN TIMES OF EMERGENCY

The advantages of informal communication are as follows:

i. Spontaneous efforts:

Informal Communication is implicit, spontaneous, flexible, dynamic and varied in

nature.

ii. Closer social relationship:

It arises out of the natural desire owing to social interaction of the individuals. So, it

helps to strengthen the social relationship among the employees. It helps to promote

better human relations.

iii. Free from distortion:

Informal communication is less distorted. It works to fill the gaps of formal

communication.

iv. Quick problem-solving and decision making:

It helps to provide solutions to the problems in the organization quickly and

decisions can be taken quickly.

v. Speedy and effective process:

Informal communication is said to be a speedy and comparatively effective process as

it can be transmitted very fast.

ADVANTAGES OF INFORMAL COMMUNICATION AT A GLANCE

SPONTANEOUS EFFORTS

CLOSER SOCIAL RELATIONSHIP

FREE FROM DISTORTION

QUICK PROBLEM-SOLVING AND DECISION-MAKING

SPEEDY AND EFFECTIVE PROCESS

Disadvantages of Informal Communication

The disadvantages of informal communication are as follows:

i. Leakage of information:

Informal Communication leads to leakage of confidential information as it moves

from person to person.

ii. Weakening of harmony and integrity:

Developing group or faction policies among the employees weakens the harmony

and integrity of the organization.

iii. Difficulty in controlling:

It is difficult to control the rumour which may create or give rise to discord and

conflict among the employees.

iv. No authenticity:

Informal communication is more prone to be irresponsible, ill-informed, gossiping

and mischievous. Sometimes, it takes the form of rumour.

v. Non-assignment of responsibility:

No responsibility can be assigned to information communication, as it takes of speech

and listening.

DISADVANTAGES OF INFORMAL COMMUNICATION AT A GLANCE

DISADVANTAGES OF INFORMAL

COMMUNICATION

LEAKAGE OF INFORMATION

WEAKENING OF HARMONY AND

INTEGRITY

DIFFICULTY IN CONTROLLING

NO AUTHENTICITY

NON-ASSIGNMENT OF RESPONSIBILITY

Differences between Formal and Informal communication

The following are the differences between formal communication and informal

communication :

Sl. No. Basis of Distinction Formal Communication Informal Communication

1.

2.

3.

4.

5.

6.

7.

8.

Nature

Purpose

Manner of Conveying

Speed

Accuracy

Channel of Communication

Distortion

Source

Well planned, systematic

and authorized

Organisational needs

Impersonal

Slow

Often accurate

Written

It is lost or distorted while

it passes from one level of

management to another.

It arises out of natural

desire owing to social

interactions of the

individuals.

Unplanned, erratic and

unauthorized

Social needs

Personal

Fast

Often distorted

Verbal

It is much free and less

distorted.

It arises to maintain

authority-subordinate

relationship in the

organization.

TYPES OF COMMUNICATION ON THE BASIS OF FLOW OF

INFORMATION ATA GLANCE

COMMUNICATION

(on the basis of flow of

information)

VERTICAL COMMUNICATION

UPWARD COMMUNICATION

DOWNWARD COMMUNICATION

HORIZONTAL COMMUNICATION

DIAGONAL COMMUNICATION

VERTICAL COMMUNICATION

Vertical Communication may be defined as the communication which takes place between a

superior and a subordinate in an organization and which may either flow in an upward direction or

downward direction.

UPWARD COMMUNICATION

The information which flows from lower levels of management to higher levels of authority is

known as upward communication. It serves as a feedback on the effectiveness of downward

communication and keeps the management informed with regard to the progress of the work and

the hazards faced by them from time to time. For example the Departmental head

communicating with the Managing Director. It usually consists of

• suggestions,

• grievances,

• complaints,

• performance appraisal and many others.

The following are the advantages of Upward Communication:

• It appraises the management with necessary feedback.

• It keeps the management with information regarding the progress of work and difficulties

faced during the performance of the work.

• It gives an opportunity to the employees to interact their problems with the superior

authority.

• It tends to make the atmosphere of the organization congenial by providing constructive

suggestions to promote the welfare of the organization.

• It creates a greater harmonial relationship between the management and employees.

The following are the disadvantages of Upward Communication:

• Unless the managers are usually accessible, employees are usually reluctant to initiate

any communication upward.

• Employees are afraid that any criticism pointed out by lower level management may be

interpreted as a sign of their personal weakness.

• In most cases the relationship between the workers and their immediate boss gets trained

and as a result the work in the organization tends to suffer.

• This sort of communication is more prone to distortion.

• Upward Communication is non-authoritative in nature.

Downward Communication

This refers to the flow of communication from a superior to his subordinates. In other words, it is

a transmission of message from persons occupying higher positions to those at lower levels. For

example the Managing Director communicating with the departmental heads . This sort of a

communication can take place in the form of letters, orders, notices and many others.

The following are the advantages of Downward Communication:

• It enables the management to keep employees informed of plans and decisions.

• It is suited to an organization in which the line of authority runs distinctly downwards.

• It gives specific directives about the job being entrusted to a subordinate.

• It clearly conveys an assessment of performance to subordinates.

• It passes on information about the significance of the job .

The following are the disadvantages of Downward Communication:

• There is too much of authoritarianism.

• It takes a long time to transmit information to the lowest worker.

• It loses a little of its authenticity in long lines of communication.

• It may lead to over communication or under communication.

• Due to loss of information the entire information cannot be transmitted downwards.

DIFFERENCES BETWEEN UPWARD AND DOWNWARD COMMUNICATION

BASIS OF DISTINCTION UPWARD COMMUNICATION DOWNWARD COMMUNICATION

1. Definition

2. Speed

3. Nature

4. Forms of

Communication

5. Purpose

6. Means of

Communication

The information which flows

from lower levels of

management to higher levels of

authority is known as upward

communication.

The speed of the flow of

information is high.

It is authoritative and directive in

nature.

It takes the form of orders ,

circulars, memos and many

others.

To get things done.

Communication is made

formally .

This refers to the flow of

communication from a superior to his

subordinates. In other words, it is a

transmission of message from persons

occupying higher positions to those at

lower levels.

The speed of the flow of information

is slow.

It is informative and explanation in

nature.

It takes the form of reports,

suggestions, grievances and many

others.

To provide feedback.

Communication is made formally and

informally.

Horizontal Communication

Horizontal or Lateral Communication may be defined as the transmission of information

between people at the same level of authority. It usually consists of interdepartmental

communication.

For example, if we take the example of a school, then the communication between the Head of the

Department of Mathematics and Head of the Department of Accounts is known as Horizontal

Communication.

Advantages of Horizontal Communication

The advantages of horizontal or lateral communication are as follows:

i. Horizontal Communication helps to overcome departmental barriers.

ii. Horizontal Communication helps to get quick feedback from different departments.

iii. It provides greater understanding, teamwork and mutual trust among inter-

disciplinary and inter-departmental functionaries.

Disadvantages of horizontal communication

The disadvantages of horizontal communication are as follows:

i. Horizontal Communication becomes ineffective because of lack of co-ordination.

ii. Horizontal Communication comes without authoritative support and thus it may

create confusion.

iii. It creates an atmosphere of gossiping.

Diagonal Communication

Diagonal Communication may be defined as the transmission of information between two or

more people who are neither in the same department nor on the same level of authority. It helps

to speed up the process of communication but violates the principle of scalar chain. For example

if the marketing manager communicates with the sales officer then it is a case of diagonal

communication.

Advantages of Diagonal Communication

The advantages or benefits of diagonal communication may be stated as follows:

i. It enhances the morale of the lower level employees of the organization.

ii. It helps to improve mutual understanding among the superiors and subordinates.

iii. It help to create proper co-ordination in the organization.

Disadvantages of Diagonal Communication

The disadvantages or limitations of diagonal communication may be stated as under:

i. The suggestions given by the subordinates are given less importance.

ii. It may lead to complex network of communication.

iii. The problem of encroachment may arise in the process of communication.

LIVE EXAMPLES OF UPWARD, DOWNWARD, HORIZONTAL AND DIAGONAL

COMMUNICATION

LET US TAKE THE EXAMPLE OF A SCHOOL

• Upward Communication: An Assistant Accounts teacher communicating to his Head of

the Department.

• Downward Communication: The Head of the Department of Accounts is

communicating to his Assistant teacher.

• Horizontal Communication: The Head of the Department of Accounts is

Communicating to the Head of the Department of Physics.

• Diagonal Communication: The Head of the Department of Physics communicating to

the Assistant teacher of Accounts or vice-versa.

Concept of Gang Plank

The term Gang Plank may be defined as a temporary arrangement between different points

in order to facilitate quick and easy communication between them. Gang Plank has been

developed between the two points to save a lot of time. In other words, Gang Plank means

direct contact which may be created to avoid certain delays and difficulties faced in

communication. Gang Plank, however ,undermines the established lines of authority.

Principle of effective communication

i. Principle of Clarity:

The sole responsibility of an effective communication rests on the shoulder of

the transmitter. The manager who wants to communicate must be clear in his

mind about the subject matter which is to be communicated. Ambiguity,

vagueness and confusion about the message to be communicated will make

the communication ineffective.

ii. Principle of Brevity:

All communication must be brief and to the point. Irrelevant words and information

tends to spoil the message that one wants to convey. We should avoid unnecessary

repetition and excessive elaboration. In other words, the communication should be

concrete and concise.

iii. Principle of Compassion:

The communication to be effective, the communicator must understand the

background and the intelligence level of the receiver. The communication network

should be just right to serve the organizational ends. The people who are concerned

must know what exactly they require and when they require. Matching of

wavelength is necessary to create a meeting of mines. A communication network

must be wide and disseminate knowledge at all levels of the enterprise which makes

them effective.

iv. Principle of Completeness:

An effective communication should be adequately comprehensive and complete

in all respects. Incomplete message creates misunderstanding and delays

action. If some information is missing people are bound to make assumptions

which might result in producing an incorrect result.

v. Principle of Timeliness:

The message should always reach the receiver on time to get the desired result.

A message which does not reach the receiver in proper time will make the

communication meaningless.

vi. Principle of Attention:

Listening to verbal messages careful implies an active process. The communicator

should try to secure the individual attention of the communicate. He should see to

it the message his conveying should not hurt the sentiments and emotions of the

receiver. Half hearted attention often leads to misunderstanding and confusion of

the communication.

vii. Principle of Feedback: There should always be a follow-up action to ensure that the message is

rightly understood. Feedback refers to actual response or reply of the receiver

to the message communicated to him.

viii. Principle of Integrity:

The message sent must be in consistent with the objectives , policies, rules and

regulations of the organization. The behaviour and the actions of the sender must

support his communication. It is very essential that communications in an

organization should not go beyond the level of authority, otherwise there may be

conflicts and confusion in the organization.

PRINCIPLES OF EFFECTIVE COMMUNICATION AT A GLANCE

NEW TECHNOLOGY INITIATIVES IN COMMUNICATION:

(i) F.A.X.(Facsimile):

Under this system a particular machine known as FAX machine is inter related with

another FAX machine(s) with the help of telephone lines. It is said to be the latest

device for sending or transmitting drawings, diagrams, sketches, letters, circulars

and many other things. The message shit of the sender is first being scanned by the

senders machine and then it is converted into digital codes. The message is finally

printed on the receivers machine.

PRINCIPLE OF CLARITY

PRINCIPLE OF BREVITY

PRINCIPLE OF COMPASSION

PRINCIPLE OF COMPLETENESS

PRINCIPLE OF TIMELINESS

PRINCIPLE OF ATTENTION

PRINCIPLE OF FEEDBACK

PRINCIPLE OF INTEGRITY

(ii) S.M.S.(Short Message Service):

This particular service is available on all mobile phones and now a days in land

phones in which the sender types a particular message briefly and sends it to the

receiver(s) at a very nominal rate. Many network providing companies like

Vodafone, Airtel, Uninor and others who are providing the customers to use or send

unlimited S.M.S. at the cost of a nominal fixed charge. Thus, this form of

communication has also become very popular.

(iii) Video Conferencing:

Video Conferencing is said to be a virtual meeting were an individual can see, hear,

talk and work with the people situated at different locations around the world in a

much cheaper manner. This method of communication is also known as tele-

conferencing. This method is, generally, used for conducting meetings and

discussions. It is mainly a conference which takes place through telephone link

television screens.

(iv) Mobile(Cellular) Phone:

It is a particular device which has been developed in the resent past and offers direct

dialing facility from any place and any were in the world. It is a particular device

with the help of which a sender can convey his message orally to the receiver in a

very fast manner. This means of communication has become very popular due to

many new telecom companies which have entered the market and started

competition amongst themselves by charging very low call rates from the

customers.

(v) E-mail (Electronic mail):

E-mail may be defined as a type of communication were textual messages are sent

with the help of electronic media. The textual message is actually typed on the

senders computer screen and the same appears at the receivers computer screen

through electronic impulses. To sent an email it is highly essential for both the

sender and receiver to have the mail id.

The following are the advantages of E-mail:

i) E-mail messages can be stored for future reference.

ii) E-mail is said to be a cheaper means of communication compare to other

modes.

iii) It is the fastest method of communicating written messages

iv) It helps in reduction in consumption of paper.

v) It is highly flexible in nature as messages can be sent to many individuals

at a time.

(vi) Internet:

Internet may be defined as a revolutionary and cooperative mode of communication

through computers. It is easily accessible to each and every individual and other

users all over the world. In other words , it is a network of the networks, logically

link together globally which provides access publicly or privately to different types

of high-level services and resourceful information.

NEW TECHNOLOGY INITIATIVES IN COMMUNICATION AT A GLANCE

Short Answer Type Questions

1. What is Gestural communication?

Ans. Non Verbal Communication may be defined as the communication which takes place

without words. The messages are sent with the help of facial expressions, posture or body

movements. For example communicating by smiling or twinkling of eyes . It is very useful

in face-to-face communication

2. What is meant by ‘Encoding’ and ‘Decoding’ in communication?

Ans. Encoding : Encoding is the process of translating or converting the idea or thoughts

into a language or code which can be easily understandable to both parties.

Decoding : Decoding may be defined as the process of translating the message into words

for the purpose of easy understanding. The receiver interprets the message to derive or

understand its meaning and gets ready to react or provide feedback.

NEW TECHNOLOGY INITIATIVES OF COMMUNICATION

F.A.X.S.M.S.(Short

Message Service)

Mobile(cellular) phone

E-mail

(Electronic Mail)

Internet

3. Define the term ‘communication’.

Ans. Communication is a process of an exchange of thoughts, ideas, opinions between two

or more persons to create a common ground of understanding. The term Communication

has been derived from the Latin word ‘Communis’ which means common. Thus,

communication is used to mean sharing of information or a particular idea in common.

Communication is said to be an indispensible element in human relationship. It is only

through the process of communication by which we interact with each other. Almost in all

the cases and in all types of jobs, communication is present. We know that the success of

any enterprise or commercial organization depends upon how effectively and efficiently

the employees are being communicated and trained. By virtue of communication, an

employer gives the required training to his employees and make them understand their

work.

4. Define ‘oral communication’.

Ans. Oral or verbal communication implies the conveying of message through spoken

words. It is face-to-face communication between individuals and includes communication through telephone, intercom, public speech, etc.

5. What is ‘Feedback’ in communication?

Ans. The term feedback may be defined as the response or reaction of the receiver to the

message communicated by the sender. It is only through feedback the reader can judge the

effectiveness of his message. Communication is said to be incomplete in nature if feedback

is not available or given to the sender.

Long Answer Type Questions

1. Explain the advantages and disadvantages of written communication.

Ans. Advantages and Disadvantages of written communication are as follows

The advantages of written communication are as follows:

i. It is an ideal way of transmitting lengthy messages. ii. It tends to be complete, clear, precise and correct.

iii. It provides a permanent record of communication for future reference. iv. It ensures little risks of unauthorized alteration in the message v. It is suited to convey messages to a large number of persons at one and the same

time. vi. It can be quoted as a legal evidence in case of any dispute

The disadvantages of written communication are as follows:

i. It is expensive.

ii. It is very formal in nature and lacks personal touch.

iii. It encourages red-tapism and involves too many formalities.

iv. It may be interpreted differently by different people.

v. It is time consuming.

vi. It becomes difficult to maintain secrecy in a written communication

2. Discus in brief various barriers to communication.

Ans. The various types of barriers such as physical, semantic, personal and status barrier

are given below :

(i) Physical barriers: Any barrier in the physical environment is termed as physical

barrier. Large workspaces physically separated from one another can cause delay

in communication. Similar situation might occur when the staff is located in

different buildings or on different sites. Distractions like background noises may

cause disturbances. Poor lighting, too hot or too cold weather. may also hinder the

process of communication by affecting a person’s concentration. In case of written

communication, illegible writing and unclear printing will be categorized under

physical communication.

(ii) Personal or psychological barriers: personal factors like judgment. Emotions and

social values create a psychological distance between the sender and the receiver.

Prejudices, inferiority and superiority complex, attitudes, time pressure affect the

interpretation of massages.

(iii) Semantic barriers: The word semantic means systematic study of meaning of

words. It arises when people use different words in same way or same word in

different ways. Words of language are the means of communication, and how well

the sender encodes the idea decides how well it would be decoded. Language being

a symbolic representation of a phenomena, room for different interpretation always

remains. It is also possible that the listener does not listen intently and jumps to a

conclusion by adding his own colour and assumptions to the original message. often

cultural differences also lead to creation of different meanings for the same words

thus leading to misinterpretation of the words.

(iv) Organizational barriers : The classical organization structure restricts

communication. When the organization structure is complex and comprises several

levels of management, it is expected that breakdown or distortion in communication

will definitely arise. Traditional organization structures which are totally based on

authority relationship restrict free and frequent communication. The result is delay

in the transmission process and distortion in the message transmitted.

(v) Technological barriers: This is the era of technology and hence technology is

widely used to structure communication mediums too. Technical snags in various

equipments like computers, fax machines, audio video devices may delay

communication process. Besides all people involved in the communication process

are not necessarily tech friendly. Hence, an information may not be useful to a

person who cannot access the Internet. Besides social networking sites are more

predominant than face-to-face interactions these days, thus, reducing the warmth in

communication, expected out of a coffee table chat which is face to face.

(vi) Status barriers : The difference in the status of a superior and a subord is an

obstacle towards an effective communication. A superior in order to maintain status

difference will convey only selected information to his subordinates. Similarly, a

subordinate may also convey those things which the superior would appreciate and

will not report his shortcomings.

(vii) Premature evaluation : Few people are in the habit of forming a judgement before

reading/listening the entire message. This tendency is called premature evaluation.

This distorts understanding an makes communication ineffective. For example,

reading the first paragraph of a particular letter and coming to a solution about the

entire letter. This is premature evaluation as people tend to misunderstand the

subject matter of the letter.

(viii) Inattentiveness : People whilst receiving a message containing a new idea or

listening to a message which is contrary to the expectations and belief of the

receiver often become inattentive. Inadequate attention to the message is likely to

create misunderstanding. Moreover, a poor retention of information communicated

also acts as a barrier which leads to imperfect responses.

(ix) Specialization barriers : Owing to division of labour or specialization each

department is much more concerned with its own interest and work and does not

appreciate the urgency for other departments. These differences between

departments ultimately create an obstacle or a barrier to effective communication.

(x) Other barriers : Apart from the above mentioned barriers there are other factors

which may disturb communication. People wanting to maintain status quo and

resistance to change may not go through the messages containing new ideas to

introduce the change. Due to distance problem shortage of time, pressure of work,

choice of work, inappropriate medium, communication of the message may be

understood.

3. Explain the importance of communication in business.

Ans. The importance of communication in business are as follows

i. Basis of decision making and planning :Communication facilitates decision making

by providing the required information. The quality of decision made in an organization

depends largely on the amount and quality of information available to the decision-

maker.

ii. Facilitates Co-ordination :Communication facilitates co-ordination by providing

proper upward, downward and horizontal interaction between members of different

departments or sections at all levels of authority. Exchange of information and ideas

help to bring about unity of action in the pursuit of common purpose.

iii. Effective control :Managerial function of control involves measurement of actual

performance against planned targets. It acts as a tool for effective control by reporting

the results to higher authorities and communication of corrective actions taken. All

these things would not have been possible if there was no efficient system of

communication.

iv. Higher productivity at lower cost :Effective communication helps the organization

to increase the quantity and quality of work. Thus, it helps to save time and effort and

leads to reduction in the cost of productions.

v. Industrial harmony and peace :An effective communication system creates mutual

trust and confidence between management and employees. It is not only essential for

healthy industrial relation but also helpful in boosting the morale and motivation of

employees working in the organization. Sharing of information and ideas with workers

eliminates misunderstanding. Thus it is highly necessary that the management, with the

help of effective communication should maintain cordial relations not only with

employers and employees but also with customers, suppliers and communicate at large.

It not only ensures industrial harmony and peace but helps in developing a good public

image of the organization.

vi. Democratic management :Communication is the basis of industrial democracy. It

helps to organize human and other resources in the most effective and efficient way.

vii. Effective leadership :Communication is the basis of effective leadership because it

transmits the leaders’ ideas and opinions to the subordinates. A manager can delegate

authority and there by increase leadership capacity only by virtue of an effective

communication.

4. Differentiate between oral communication and written communication.

Ans. Differentiate between oral communication and written communication are as follows

Sl. No. Basis of Distinction Oral Communication Written Communication

1.

2.

3.

4.

5.

6.

7.

8.

Words used

Forms

Speed

Personal or impersonal

Flexible

Secrecy

Gestures

Distortion

Spoken words

Lectures, meetings,

interviews etc.

Its transmission takes

less time.

It tends to be personal.

More flexible

Ensures secrecy

Can be used

Greater Chance of

distortion.

Written words

Letters circulars,

notices, reports etc.

Its transmission

takes more time.

It may tend to be impersonal

Less flexible

Lacks secrecy

Cannot be used

Lesser chance of distortion

5. Discuss the advantages and disadvantages of horizontal communication

Ans: The advantages and disadvantages of horizontal communication are as follows

The advantages of horizontal or lateral communication are as follows:

i. Horizontal Communication helps to overcome departmental barriers.

ii. Horizontal Communication helps to get quick feedback from different

departments.

iii. It provides greater understanding, teamwork and mutual trust among inter-

disciplinary and inter-departmental functionaries.

The disadvantages of horizontal communication are as follows:

i. Horizontal Communication becomes ineffective because of lack of co-

ordination.

ii. Horizontal Communication comes without authoritative support and thus it

may create confusion.

iii. It creates an atmosphere of gossiping.

PRACTICE QUESTIONS

Short Answer Type Questions

1. What is a Video-conference?

2. What is meant by face-to-face communication?

3. Explain the meaning of internal communication. Name its two types.

4. What is a Dictaphone?

5. With reference to written internal communication, explain the term office order.

6. Define ‘Visual Communication’.

7. Define the term ‘Formal communication’.

8. What is Grapevine?

9. Give two limitations of oral communication.

10. How communication is essential for maintaining interpersonal relationships.

11. What is meant by barriers to communication?

12. List the ‘seven C’s of communication.

13. What is e-mail?

14. What is horizontal communication?

15. What is vertical communication?

Long Answer Type Questions

1. How will you overcome the barriers to communication? Explain. How can communication

be made effective?

2. Explain the advantages and disadvantages of vertical communication.

3. Describe the elements of communication process with the help of a suitable diagram.

4. Written communication is the most common method of communication in a business

organisatio. Give reason.

5. “Oral communication is an unreliable yet popular method of communication”. Discuss.

6. Discuss the advantages and disadvantages of visual communication.

7. Explain the advantages and disadvantages of internal communication.

8. Discuss the advantages and disadvantages of external communication.

9. Briefly explain any six reasons for the rising need for efficient communication.

10. Briefly discuss any three advantages and any three disadvantages of face-to-face

communication.

11. Explain the two types of external communication.

12. List the components of communication process?

13. Discuss the advantages and disadvantages of oral communication.

14. Explain the advantages and disadvantages of gestural communication.

15. Explain the advantages and disadvantages of formal communication.

16. Explain the advantages and disadvantages of informal communication.

17. Differentiate between :

a. Internal and External Communication

b. Horizontal and Vertical Communication

c. Formal and Informal communication

18. Describe the recent trends in business communication.