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Effective Communication

in Business(Chapter-1)


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What is Communication

Exchanging or transferring information from onepart of the business to another that leads to some

outcome, changed behaviour or changed processes

and practices.

An idea, no matter how great, is useless until it is

transmitted and understood by others.

Communication can also be termed as the exchange

of thoughts between two or more people, groups or

organizations, verbally, through symbols, or in

writing.

Conti


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What is Communication

Communication is the Nucleus of the organization.

The meanings of words are not in the words; they are in us.Communication is a means, not an end.

Communication has no life of its own. There is no meaningin a message except what you put into it.

Most people think at a rate of 400 - 500 W/M. Most peoplespeak at only about 125 W/M and write at even slowerspace 25 to 30 W/M.

Formal Communication. Established, recognized and

agreed procedures/ rules/ channels.

Informal Communication. It refers to the grapevine thatinformally takes place in an organization. Such a network isfree to move in any direction, skip authority levels, and

satisfy group members social needs.


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Communication as Lifeblood of

Organization

Organizations cant function without open andeffective communication.

Exchange of information is must for effectiveindividual and collective performance at all levels.

Internal Communication. Downward, upward &horizontal / lateral.

External Communication. Effective communication

with external stakeholders can help create a goodreputation, and have a positive impact on its ultimatesuccess.

Overall Communication Costs. Time is a major factor

in overall communication costs.


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Direction of Internal BC

Downward:

Communication that flows from one level of a grouporganization to a lower level.

This is typically what we think of when managerscommunicate with workers. Its purpose is to assign goals,

provide instructions, communicate policies andprocedures, provide feedback. It does not have to be faceto face or an oral communication.

Upward:

Upward communication flows to a higher level in thegroup or organization.

It is used to provide feedback to higher-ups, inform themof progress, and relay current problems e.g. performance(reports prepared by lower management), suggestion

boxes, employee attitude surveys, etc.


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Direction of Internal BC

Upward

Downward

Lateral

Lateral:

When communication takes place among members of

the same work group, among members of work groups

at the same level, among managers at the same level.

Horizontal communications are often necessary to savetime and facilitate coordination.

They can create dysfunctional conflicts

when the formal vertical channels are

breached, when members go above oraround their superiors to get things

done, or when bosses find out that

actions have been taken or decisions

made without their knowledge.


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Types of Communication

Verbal Communication. Communication through

words whether Written or Oral.

Written. Letters, memos, notice boards, bulletin

boards, employee manuals etc.

Oral. Announcements, speeches / sermons,

counseling, demonstrations / explanations etc.

Non-Verbal Communication. Communication through

various means other than words appearance, body

movements, facial expressions, gestures, smell &

touch, Voice, silence etc.


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Various Types of Communication

Type Verbal

o Oral

o Written

o Electronicmedia

Non-Verbal

Merits

Quick transmission

Quick feed back

Permanent recordTangible record

Verifiable record

Relatively low cost

for others

Conveys meanings

fast

Demerits

Greater potential fordistortion

Takes more timeLack of feedback

Problems of security for

others

Can be misinterpreted


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Benefits of Effective Communication

Quicker problem solving Stronger decision making

Increased productivity

Steadier work flow Stronger business relationships

Clearer promotional materials

Enhanced professional image

Improved stakeholder response

Customer Loyalty/ delightedness


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The Internal Audiences

CEO / President

VPProduction

VPMarketing

VPSales

VPHuman

Resources

VPFinance

SalesManager

East

SalesManager

A

SalesManger

B

SalesManager

International

District1

Manager

District2

Manager

District3

Manager

Sales

Rep

Sales

Rep

Sales

Rep

Sales

Rep

Sales

Rep


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The External Audiences

TheCorporation

Subsidiaries Unions

Professional services(auditions,legal,etc)

Suppliers,vendors

Distributors,Wholesalers,Franchisees,

Retailers, agents

Legislators,Government

agencies, regulationOffices

The courts

ForeignGovernments

and offices

Themedia

Trade association,Competitors,

other businesses,

and industries

Specialinterest group

General public,potential employees,

customers, stockholders

Employmentagencies

Stock holdersInvestors

and lenders

Customers

clients


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Communication Model(Various Components)

Context(Stimuli)

Sender /

Encoder Message

Feedback

(Verbal/

Nonverbal)

Receiver/

Decoder

Medium

(Verbal/

Nonverbal)


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Context:

A broad field that includes country, culture, organization

and internal / external stimuli; all have separateconventions for processing and communicatinginformation.

Internal stimuli have complex influence on how to

compose & send a message. Understanding of thesenders own and the receivers attitude, emotions,experience, likes/dislikes all influence the way

communication is generated.

Especially important is the senders ability to analyse the

receivers culture, viewpoint, needs, skills, status and

expectations.

Communication Model (Contd)


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Sender/Encoder:

Sender encodes the messages in the form of words,symbols, graphs, charts etc. to facilitate the receiverin correct understanding and suitably reacting to the

message.

Message:

It is the core idea that sender wants to communicate;

it could be verbal (written or spoken) or non-verbalsymbols. While composing a message, sender mustdecide what is the main point of message and what isthe other information to be included.



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Medium:

Medium may include Memo, Letter, Notice board, Fax,

Telephone, E-mail / Internet, Face to face, Body

language, Video / Video conferencing.

Receiver/decoder:

The message receiver is the decoder who interprets,

understands and then responds to the message.

Receiver/decoder is influenced by context and byhis/her own mental filters.



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Feedback:

Feedback is the ultimate impact of the message that

compels the receiver to act / react in a particular

way or keep quiet. It could be oral or a written

message. Sender wants feedback to learn about

the impact of the message and the extent to which

message has achieved desired results / behaviour.

Feedback helps the sender to know about the weak

points of his/her message and further improve it.



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CONCEPTS AND PROBLEMS


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Conventions of Meanings

Shapes & Symbols used should have same meanings for

both the parties (to avoid misunderstanding).

Standard (commonly accepted) acronyms, abbreviations

AIDS, LASER, LIFO, FIFO etc.

Denotations. Dictionary meanings should be used at right

place, keeping in view the positive / negative sense.

Connotations. Application of words other than theircommon use e.g. using villa, cottage, lodge etc for the

house should be used carefully.


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Perceptions of Reality

Dynamic scenario is fast changing the perception ofthe people. Common problems are:

Abstracting. Selecting some facts and omitting

others. Only necessary/ relevant facts/ figures

should be used.

Inferring. Be careful while making inferences.

Only necessary/ desirable inferences should be

used, after collecting some relevant information.

Similarly dont react to guesstimates.


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Values, Attitudes and Opinions

Attitude of the receiver can reflect the acceptance or

rejection of the message. Main problems involving attitude,values & opinions are:

Favorable information will be accepted and wouldyield better results.

Inadequate / incorrect information will make therecipient angry.

Closed mind stops people from thinking on aspects

other than their pre-conception.Senders credibility plays important role in receivingfavorable response from the recipients.

Sensitivity to the state of mind (by both parties) helps

to communicate in a positive way.


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Nonverbal Communication

How Appearance Communicates. Format, neatnesslanguage of written message and presentation all send

a nonverbal message to the receiver.

How Body Language Communicates. Facial

expression, gesture, posture, movement, smell, touch,

voice all influence the recipient/ audience.


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Appearance Communicates


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Posture has Impact


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Facial Expressions Convey Meanings

Fear Sadness

SurpriseNeutral Happiness

Anger


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How Silence, Time & Space Communicate. Concept

of time & space are culture - specific. Effectivecommunicators adapt to receivers expectations.

Silence. Keeping silence for an immediate oral

request or not responding to a letter indicate theattitude of the receiver; taken as not accepted.

Time. Waiting for a response from the recipient for

an important request creates negative feelings.

Space. A sense of being egalitarian; where you

stand in the group; how much space you maintain

from others.

Nonverbal Communication (contd)


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Barriers to Communication

Ability of the sender how much the sendersunderstand of the message they are trying to send.

Content including technicalities and jargon.

Method of communication including style and body

language where appropriate.

Skills and attitude of the receiver.

Organisational factors complexity and scope of the

organisation.


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Communication Challenges inGlobal Market

Diversified culture and language.

Capabilities/ knowledge of both sender and receiver.

Globalization.

Fast technological advancements IT boom.

Ever changing communication demands of customers.

Hostile competition.


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How to Improve Communication

Minimize distractions.

Consider/ understand the audience empathy.

Improve your skills successfully counter the

propaganda by the rivals.

Give and get feedback.

Apply business etiquettes & ethics.


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Thank You

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