Effective CommunicationEffective Communicationin Businessin Business(Chapter-1)(Chapter-1)

What is Communication

► Exchanging or transferring information from one

part 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…

What is CommunicationWhat 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 meaning in a message except what you put into it.

► Most people think at a rate of 400 - 500 W/M. Most people speak at only about 125 W/M and write at even slower space 25 to 30 W/M.

► Formal Communication. Established, recognized and agreed procedures/ rules/ channels.

► Informal Communication. It refers to the grapevine that informally takes place in an organization. Such a network is free to move in any direction, skip authority levels, and satisfy group members’ social needs.

Importance of Communication

Effective communication is important to avoid disastrous repercussions caused by the poor communication:

• Major World Air Accidents/Crashes/Wars

• Employee Frustration

• Customer dissatisfaction

• Employer Vs Employee – lack of trust

• Government Vs public – poor relations

• Broken family/friends relations

Communication as “Lifeblood” of Communication as “Lifeblood” of OrganizationOrganization

• Organizations can’t function without open and effective communication.

• Exchange of information is must for effective individual and collective performance at all levels.

• Internal Communication. Downward, upward & horizontal / lateral.

• External Communication. Effective communication with external stakeholders can help create a good reputation, and have a positive impact on its ultimate success.

• Overall Communication Costs. Time is a major factor in overall communication costs.

Direction of Internal BCDirection of Internal BCDownward:

Communication that flows from one level of a group organization to a lower level.

This is typically what we think of when managers communicate with workers. Its purpose is to assign goals, provide instructions, communicate policies and procedures, provide feedback. It does not have to be face to face or an oral communication.

Upward:

Upward communication flows to a higher level in the group or organization.

It is used to provide feedback to higher-ups, inform them of progress, and relay current problems e.g. performance (reports prepared by lower management), suggestion boxes, employee attitude surveys, etc.

Direction of Internal BCDirection 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 save time and facilitate coordination.

They can create dysfunctional conflictswhen the formal vertical channels arebreached, when members go above oraround their superiors to get thingsdone, or when bosses find out thatactions have been taken or decisionsmade without their knowledge.

Types of CommunicationTypes 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.

Various Types of Communication

Demerits

Greater potential for distortion

Takes more time

Lack of feedback

Problems of security for

others

Can be misinterpreted

Merits

Quick transmission

Quick feed back

Permanent recordTangible recordVerifiable record

Relatively low cost for others

Conveys meanings

fast

Type

► Verbalo Oral

o Written

o Electronic media

► Non-Verbal

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

The Internal Audiences

CEO / President

VPProduction

VPMarketing

VPSales

VPHuman

Resources

VPFinance

SalesManager

East

Sales Manager

A

SalesManger

B

SalesManager

International

District1

Manager

District2

Manager

District3

Manager

SalesRep

SalesRep

Sales Rep

SalesRep

SalesRep

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

The media

Trade association,Competitors,

other businesses,and industries

Special interest group

General public,potential employees,

customers, stockholdersEmployment

agencies

Stock holders Investors

and lenders

Customers clients

Communication ModelCommunication Model(Various Components)(Various Components)

Context(Stimuli)

Sender / Encoder Message

Feedback

(Verbal/ Nonverbal)

Receiver/ Decoder

Medium

(Verbal/ Nonverbal)

Context:

► A broad field that includes country, culture, organization and internal / external stimuli; all have separate conventions for processing and communicating information.

► Internal stimuli have complex influence on how to compose & send a message. Understanding of the sender’s own and the receiver’s attitude, emotions, experience, likes/dislikes all influence the way communication is generated.

► Especially important is the sender’s ability to analyse the receiver’s culture, viewpoint, needs, skills, status and expectations.

Communication Model (Cont’d)

Sender/Encoder:

► Sender encodes the messages in the form of words, symbols, graphs, charts etc. to facilitate the receiver in 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-verbal symbols. While composing a message, sender must decide what is the main point of message and what is the other information to be included.

Communication Model (Cont’d)

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 by his/her own mental filters.

Communication Model (Cont’d)

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.

Communication Model (Cont’d)

CONCEPTS AND PROBLEMSCONCEPTS AND PROBLEMS

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 their

common use e.g. using villa, cottage, lodge etc for the

house should be used carefully.

Perceptions of Reality

• Dynamic scenario is fast changing the perception of

the 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 don’t react to ‘guesstimates’.

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 would yield better results.

• Inadequate / incorrect information will make the recipient angry.

• Closed mind stops people from thinking on aspects other than their pre-conception.

• Sender’s credibility plays important role in receiving favorable response from the recipients.

• Sensitivity to the state of mind (by both parties) helps to communicate in a positive way.

Nonverbal Communication

• How Appearance Communicates. Format, neatness

language 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.

Appearance Communicates

Posture has Impact

Facial Expressions Convey Meanings

Fear Sadness

SurpriseNeutral Happiness

Anger

• How Silence, Time & Space Communicate. Concept of time & space are culture - specific. Effective communicators adapt to receiver’s expectations.

Silence. Keeping silence for an immediate oral request or not responding to a letter indicate the attitude 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 (cont’d)

Barriers to Communication

Ability of the sender – how much the senders

understand 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.

Communication Challenges in Global 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.

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.

Thank You