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Tulasi Miriyala
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UNIT-1 Communication: A process by which information is exchanged between individuals through a common system. It is exchange of ideas, facts, openions, emotions between two or more people . Communication can broadly be defined as exchange of ideas, messages and information between two or more persons, through a medium, in a manner that the sender and the receiver understand the message in the common sense, that is, they develop common understanding of the message. Characteristics of communications: (1) Two or More Persons: The first important characteristic of communication is that there must be a minimum number of two persons because no single individual can have an exchange of ideas with himself. A listener is necessary to receive one’s ideas. Therefore, there must be at least two persons-the sender of information and the receiver. (2) Exchange of Ideas: Communication cannot be thought of in the absence of exchange of ideas. In order to complete the process of communication there must be an exchange of ideas, orders, feelings, etc., among two or more than two persons. (3) Mutual Understanding: Mutual understanding means that the receiver should receive the information in the same spirit with which it is being given. In the process of communication, it is more important to understand the information rather than carry it out. (4) Direct and Indirect Communication: It is not necessary in communication that the receiver and giver of information should be face-to-face with each other. Communication can be both direct and indirect. Direct communication means face-to-face conversation, while indirect communication is through other means. 5) Continuous Process: Communication is an endless process, as is the case with business where the manager continuously assigns work to his subordinates, tries to know the progress of the work and gives directions. (6) Use of Words as well as Symbols: There can be many means of communication, like the written, the oral and symbolic. The examples of symbolic communication are the ringing of bell for closing a school or a college, saying something by the movement of the neck, showing anger or disapproval through eyes, giving some decision by the raising of a finger in cricket, etc. NATURE OF COMMUNICATION: 1. Two-way process: Communication is a two-way process of understanding between two or more persons – sender and receiver. A person cannot communicate with himself. 2. Continuous process: Exchange of ideas and opinion amongst people is an ongoing process in business and non-business organisations. Continuous interaction promotes understanding and exchange of information relevant for decision-making. 3. Dynamic process: Communication between sender and receiver takes different forms and medium depending upon their moods and behaviour. It is, thus, a dynamic process that keeps changing in different situations. 4. Pervasive: Communication is a pervasive activity. It takes place at all levels (top, middle, low) in all functional areas (production, finance, personnel, sales) of a business organisation. 5. Two people: 1

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A minimum of two persons — sender and receiver — must be present for communication to take place. It may be between superiors, subordinates and peer group, intra or inter se. 6. Exchange: Communication involves exchange of ideas and opinions. People interact and develop understanding for each other. 7. Means of unifying organisational activities: Communication unifies internal organisational environment with its external environment. It also integrates the human and physical resources and converts them into organisational output. 8. Verbal and non-verbal: Though words are active carriers of information, gestures can sometimes be more powerful than words. Facial expressions, sounds, signs and symbols are the non-verbal forms of communication. 9. Mutual understanding: Communication is effective when sender and receiver develop mutual understanding of the subject. Messages conveyed should be understood by the receiver in the desired sense. 10. Goal-oriented: Communication is goal-oriented. Unless the receiver and sender know the purpose they intend to achieve through communication, it has little practical utility. 11. Foundation of management: Though communication is a directing function, it is important for other managerial functions also. Designing plans and organisation structures, motivating people to accomplish goals and controlling organisational activities; all require communication amongst managers at various levels. 12. A means, not an end: Communication is not an end. Effective communication is a means towards achieving the end, that is, goal accomplishment. It smoothens managerial operations by facilitating planning, organising, staffing, directing and controlling functions. 13. Human activity: Since communication makes accomplishment of organisational goals possible, it is essential that people understand and like each other. If people do not understand each others’ viewpoint, there cannot be effective communication. 14. Inter-disciplinary: Communication is the art of how communicators use knowledge of different fields of study like anthropology, psychology and sociology. Making best use of these disciplines makes communication effective. It is, thus, an inter-disciplinary area of management. IMPORTANCE OF COMMUNICATION: 1. Basis for planning: Planning is the basic function of management. If plans are well designed and communicated for their implementation, it leads to organisational success. Planning requires extensive environmental scanning and information about internal and external organisation elements. An effective system of communication helps in obtaining this information. Implementing the plans requires communicating them to everybody in the organisation. Communication is, thus, the basis of planning. 2. Motivation to work: Employees are motivated to work if their needs are satisfied. Communication helps managers know needs of their employees so that they can adopt suitable motivators and inspire them to develop positive attitude towards the work environment. 3. Job satisfaction: Exchange of information develops trust, confidence and faith amongst managers and subordinates. They understand their job positions better and, thus, perform better. People are committed to organisational objectives which promotes job satisfaction, 4. Commitment to organisational objectives: 2

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Managers who follow an effective system of communication understand employees’ needs, adopt suitable motivators to satisfy them, appraise their performance and provide them regular feedback. The employees also work with commitment towards organisational objectives. 5. Coordination: Communication coordinates organisational resources (human and non- human), individual goals with organisational goals and internal environment with external environment. Coordination is the key to organisational success and communication is an active contributor to coordination. 6. Adaptability to external environment: In order to survive in the changing, dynamic environment, managers continuously interact with external parties like government, suppliers, customers, etc. This requires effective communication system in the organisation. 7. Internal functioning of an enterprise: Managers interact with parties internal to business enterprises. They constantly obtain and provide information to them. More effective the communication system, more accurate will be the information. 8. Healthy industrial relations: Satisfied workers contribute to healthy organisations. Communication brings managers and trade unions closer, develops mutual understanding and promotes industrial peace and harmony. This increases industrial production. 9. Helps in performing managerial roles: According to Henry Mintzberg, managers perform three major roles – interpersonal, informational and decisional. Communication helps managers in performing these roles effectively. In interpersonal roles, managers interact with superiors, peers and subordinates; in informational roles they receive and give information to people inside and outside the organization and in decisional roles, they take important decisions and communicate them to organisational members for their effective implementation. 10. Facilitates leadership: Effective leaders interact with followers, guide and inspire them to perform the individual and organisational goals. Effective communication process facilitates leaders to carry out the leadership functions. 11. Facilitates control: Planning is effective if accompanied by an effective control system. Control is possible when managers assess subordinates’ performance, correct and prevent deviations and provide them regular feedback of performance. Control function largely depends upon communication system of the organisation. How effectively managers control organisational activities depends upon how effective is the communication system. 12. Training and development: Imparting training and development facilities to employees depends upon how well their superiors communicate with them. Trainers with good communication skills are better than those who have poor communication skills. 13. Substance to organisational existence: Obtaining information to make plans, making members aware of authority-responsibility structure, position in the organisational hierarchy, coordinating their activities is the essence of organisational survival and growth. This is possible through effective communication. ROLE OF COMMUNICATION IN BUSINESS: Business communication occurs between two or more parties to exchange business related information. The success of a business depends on the efficacy of business communication. For this, communication is regarded as the lifeblood of business. The role or importance of business communication is discussed below: 1. Exchanging information: Communication is mainly the exchange of information between two or more parties. Through communication, organizations exchange information with internal and external 3

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parties. Communication also brings dynamism in organizational activities and helps in attaining goals. 2. Preparing plans and policies: Communication helps in preparing organizational plans and policies. Realistic plans and policies require adequate and relevant information. The managers collect required information from reliable sources through communication. 3. Execution of plans and plaices: For timely implementation of plans and policies, managers must disseminate those in the whole organization. In order to disseminate the plans and policies to the internal and external parties, managers rely on communication. 4. Increasing employee’s efficiency: Communication also helps in increasing the efficiency of employees. With the help of communication, organizational objectives, plans, policies, rules, directives and other complex matters explain to the employees that broaden their knowledge and thus help them to be efficient. 5. Achieving goals: Effective communication helps the employees at all levels to be conscious and attentive. It ensures timely accomplishment of jobs and easy achievement of goals. 6. Solving problems: Through various communication channels, the managers can be informed of various routine and non-time problems of the organization and accordingly they take the necessary actions of steps to solve the problems. 7. Making decisions: Making timely decisions requires updated information. Through effective communication, managers can collect information from different corners and can make the right decisions. 8. Improving industrial relation: Industrial relation is the relation between workers and management in the workplace. Good industrial relation is always desired for business success. Communication plays a vital role in creating and maintaining good industrial relation. 9. Publicity of goods and services: In the modern age, business is becoming highly competitive. Almost very competing manufacturer produces products of common consumption. However, all of them cannot sell equally well. The organization that can communicate better, can also sell better. 10. Removing controversies: Effective communication allows smooth flow of information among various parties involved in the negotiation or transaction. As a result, conflicts, controversies and disagreements can be resolved easily. 11. Enhancing employee satisfaction: If there is free and fair flow of information in the organization, it will certainly bring mutual understanding between management and workers. Such understanding enhances the satisfaction of employees. 12. Enhancing loyalty: Effective communication helps the managers to be aware of the performance of their subordinates. In such a situation, the subordinates try to show their good performance. Later on, if management praises their performance, it will enhance employees’ loyalty. Principles of Communication: 1. Principle of Clarity: The idea or message to be communicated should be clearly spelt out. It should be worded in such a way that the receiver understands the same thing which the sender wants to convey. There should be no ambiguity in the message. It should be kept in mind that the words do not speak themselves but the speaker gives them the meaning. A clear message will evoke the same response from the other party. It is also essential that the receiver is conversant with the language, inherent assumptions, and the mechanics of communication. 2. Principle of Attention: In order to make communication effective, the receiver’s attention should be drawn towards message. People are different in behaviour, attention, emotions etc. so they may respond differently to the message. 4

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