The document discusses the principles and importance of communication in management, outlining various forms of communication, including formal and informal methods, as well as barriers and effective principles. It details communication processes, channels, and networks essential for organizational success, emphasizing the need for clarity, understanding, and feedback. Additionally, it highlights challenges in communication practices within Indian industries and the impact of cultural differences on communication effectiveness.

1. 1
Chapter 16
Communication
PRINCIPLES OF
MANAGEMENT, 7E
P C Tripathi I P N Reddy I Ashish Bajpai

2. 2
Learning Objectives
This chapter will enable the reader to:
 LO-1: Learn the concept of communication besides describing its
purpose and importance in managerial functioning.
 LO-2: Understand the forms of communication and informal
communication
 LO-3: Learn the process, barriers and important principles of
communication.
 LO-4: Recognize the communication channels, types of communication
networks and different tests for judging communication effectiveness.
 LO-5: Be aware of the practice of communication in Indian industries
and the concept of cross cultural communication.

3. 3
Communication
 Communication has been variously defined by a number of writers.
According to Newman and Summer it is an exchange of facts, ideas,
opinions or emotions by two or more persons.
 Allen Louis defines it as the sum of all the things one person does when
he wants to create understanding in the minds of another.
 Simply stated, communication means the process of passing information
and understanding from one person to another to reach a common
understanding between the two.
 The classicists ignored the importance of communication, for they
believed that a business unit was only a technical and formal structure.
 However, later as a result of the Hawthorne experiments, it was realized
for the first time that every organization structure is a social system
involving the interactions of people working at different levels and
proper communication among them is necessary for achieving the goals
of the organization.

4. 4
Importance of Communication
 To provide the information and understanding necessary for group effort
(i.e., the skill to work)
 To provide the attitudes necessary for motivation, cooperation and job
satisfaction (i.e., the will to work)

5. 5
Formal Communication
Formal communication is work related communication flowing through
officially prescribed channels . It flow in four directions: downward,
upward, laterally between departments and between the organization
and the external environment.
Downward Communication
 Communications which flow from superiors to the subordinates are
known as downward communications.
 These communications are the medium through which the superior:
 Directs the efforts of his subordinates
 Communicates the rationale for the job
 Defines the relation of the job with the goals of the organization and of
other sub-groups
 Tells the subordinates what is expected of them, what resources are
available, how well they are doing, etc.
 Administers reward and punishment
Continued…

6. 6
Formal Communication
Upward Communications
 These are communications which flow from subordinates to superiors.
 These communications generally act as a feedback.
 They enable the management to know how far downward
communications have been understood and carried out.
 They also help the management to know the grievances or suggestions of
the subordinates, and how the management is rated by the subordinates.
 There can be several media of upward communication, such as face-to-
face contacts, group meetings, grievance procedure, use of gripe boxes,
opinion surveys, letter to the editor of the company’s periodical, called
“house organ”, an open-door policy, exit interviews, e-mail, and so on.
 Many companies, nowadays, create their websites, called “blogs”, which,
besides attracting job-seekers, act as a platform for exchanging ideas with
employees.
Continued…

7. 7
Formal Communication
Horizontal Communications
 These are also known as lateral, interactive, or cross-wise
communications.
 They generally refer to communications among peers, who are working
on the same level of the organization.
 The production foreman and the maintenance foreman communicate
directly without going through their managers.
 In this way, lateral communication avoids the much slower procedure of
directing communications through a common superior.
Continued…

8. 8
Formal Communication
 Important purposes of horizontal or interactive communications are as
follows:
 Task coordination The department heads may meet monthly to
discuss how each department is contributing to achieve overall goals.
 Problem solving The members of a department may assemble to
discuss how they will handle a threatened budget cut; they may
employ brainstorming techniques.
 Information sharing The members of one department may meet the
members of another department to give them some new data.
 Conflict resolution The members of two departments may meet to
discuss any conflict between them.
Continued…

9. 9
Formal Communication
External Communications
 These are proactive, consistent and ongoing communications with
external agencies, like current and potential customers, government
departments, competitors, trade unions, financial institutions, raw
material suppliers, etc.
 These communications aim at building the company’s image and
influencing policies and decisions in company’s favor.
Continued…

10. 10
Forms of Communication
Broadly speaking, there are three forms of communication: (i) oral, (ii)
written, and (iii) non-verbal.
 Oral Communication: Here, information is given directly, either face to
face or through a telephone or intercom system.
 Some of the merits of oral communication are:
 It is a time and money saving device.
 As there is an element of personal touch, it is comparatively more
effective.
 Doubts can be clarified on the spot and the communication can be
understood easily.
 Important points may be emphasized through body language.
 The effects of communication can be easily measured.
 It provides for greater flexibility.
Continued…

11. 11
Forms of Communication
 Oral communication, however, suffers from certain limitations. These
are:
 It is not useful where the parties are very far from each other, even
beyond telephonic range.
 It is not suitable for lengthy communications.
 There is no permanent record of communication.
 It is especially affected by previous attitudes of the parties.
 If the communicator is poor in vocal expression, oral
communications are likely to be misunderstood and misinterpreted.
Continued…

12. 12
Forms of Communication
Written Communication
 Written communication, which is always in black and white can take the
form of a report, statement, circular, note, manual, handbook, letter,
memo, standard condensed language or company lingo, etc.
 Some of the merits of written communication are as follows:
 It is suitable for lengthy communications . If the parties are far from
each other, even beyond telephonic range, written communication is
the only way out.
 It can be kept as a permanent record and at times be referred to as
evidence.
 There are fewer chances of missing out a point.
 Written communication serves as a solid base for taking action
against a subordinate who disobeys it.
Continued…

13. 13
Forms of Communication
 Some of the disadvantages of written communication are as follows:
 There is a greater chance of the communication being
misunderstood.
 It is very time consuming.
 There is no scope for face to face discussion.
 It is difficult to maintain secrecy about the matter communicated.
 It suffers from a lack of flexibility.
 Poorly written messages followed by numerous clarifications both
written and oral, may lead to a lot of confusion
Continued…

14. 14
Forms of Communication
Non-verbal Communication
 Being at one’s desk has a meaning, but being away also has a meaning;
this is called non-verbal communication.
 Three important forms of non-verbal communication are: (a) body
language (example facial expression, posture, gestures, etc.), (b) time
(example being late or early), and (c) space (example, how close one gets
during a conversation or seating arrangements in a committee meeting).
 Sometimes, the tone of voice (genuine or fake), laughing and yawning
and environmental context, called paralanguage, may also become the
part of non-verbal communication.

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Informal Communication
 One of the functions of informal organization is communication.
 Known as the “grapevine”, this structure less network of informal
communication flourishes in all organizations because communication is
a natural human tendency.
 The grapevine carries two types of information: (a) work-related, and (b)
people-related.
 Employees want to know what is going on in the organization.
 When they are not kept informed through formal channels, they seek
information from the grapevine. Likewise, they are curious about the
people they work with.
 The grapevine carries the type of personal information not generally
communicated through formal channels.

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The Communication Process
 Whether formal or informal, the basic communication process is still the
same.
 It involves six steps: (1) ideation, (2) encoding, (3) transmission, (4)
receiving, (5) decoding, and (6) acting.
 Communication starts in the mind of the sender (ideation).
 The sender has an idea that he wants to communicate to the receiver. The
sender then develops a message to convey the idea (encoding).
 Language skills are important at this point. Some people seem to know just
how to phrase message to get their ideas across, while others have a great
deal of difficulty in expressing themselves.
 Once developed, the message is transmitted (transmission).
 Once transmitted, the message is received and the receiver attaches
meaning to it (decoding).
 The final step in the communication process is action (acting); the receiver
acts or responds in some way; this is feedback.
 Noise has adverse effects on communication

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Barriers to Communication
 There is no such thing as perfect communication.
 There are continuous forces at work—called barriers— which tend to
distort communication and promote disorganization. We may summarize
these barriers as under:
 Badly expressed message
 Overawe
 Faulty organization
 Distrust of communicator
 Restricting communication
 Poor retention
 Different backgrounds
 In-group language
 Inattention
 Physical barriers
 Poor understanding

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Principles of Effective Communication
The management, in order to have effective communication, should
keep the following principles of communication in mind:
 The manager who wants to communicate must be clear in his mind
about the objective of his communication. He should know what he
wants to communicate.
 The communication should be in easily understandable language. For
this, it is necessary to know and understand the audience.
 Communication should be adequate and complete in all respects.
 The medium of communication must be carefully selected. The medium
to be selected depends on the subject matter, urgency of
communication, situation, etc.
 There is also a need for the right climate in the organization. There
should be a good superior subordinate relationship characterized by
openness and trust so that everybody may feel free to communicate and
to make suggestions on his own.

19. 19
Principles of Effective Communication
 There should be follow-up of communication to know whether or not
the receiver has understood the message correctly and to know his
reaction feedback is necessary to ensure understanding. This does not
occur automatically; it must be encouraged.
 The communicator should not act in any way which contradicts his
message. A communicator is judged not only by what he says, but also
by what he does.
 Every executive should realize that the grapevine is a powerful channel
in an organization. Generally, it is better to use the grapevine than to try
to fight it.
 Messages should not be mutually conflicting and should be in line with
the overall objectives and policies of the concern. This will avoid chaos
and confusion in the organization
Continued…

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Communication Channels and Networks
 A communication channel is a relatively fixed, regular and continuous
communication relationship between two or more individuals.
 A communication network has many senders and receivers
interconnected with many channels.
 All communication networks possess some basic characteristics which
differentiate them from each other.
 These are as follows:
 Size of Network
 Extent of Modification Taking Place in the Message
 Feedback or Closure
 Communication Pattern

21. 21
Communication Channels and Networks
Sales
departmen
t
Warehouse
Production
department
Quality
control
departmen
t
Accounts
receivable
Report of
sales
Customer complaints
Revision of
standards
Production
orders to
replenish stock
Instructions
for delivery

22. Communication Channels and Networks
22
Circle Wheel or Star
Free or Decentralized Circle Chain

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Performance of Communication Channels and
Networks
Circle Chain Wheel
Speed of performance Slow Fast Very fast
Accuracy Poor Good Good
Flexibility to change Very fast Slow Slow
Emergence to leadership None Marke
d
Very
pronounced
Morale Very good Poor Very poor

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Checks on In-Plant Communications
 Communication occupies a major portion of the manager’s time and
attention. Much of this time and effort may be wasted if the
communication practices in vogue are either ineffective or are less useful
than assumed.
 For this reason, the manager should check his communication
programmes and examine each of the three phases: (i) transmission, (ii)
media, and (iii) reception.
 The tests generally used for this purpose are:
 Morale studies
 Evaluation of reading ease and interest
 Communication audits

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Communication in Indian Industries
 Managements of these enterprises do not handle downward
communications with employees particularly well.
 Some of the existing problems are as follows:
 Management dictates to employees too much and listens too little.
 Too little of what is communicated is understood by the employees.
 Too little of what is communicated is of concern to the employees.
 Too much propaganda is communicated.
 There is too little candour.
 Communication bears too little relation to the possibility of change.

26. 26
Communication Across Cultures
 In communication across culture stereotyping and ethnocentrism greatly
influence perception.
 They can be overcome by assimilating with the foreign culture and
training in pro-social behaviour.