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Business Studies – Directing 9718834309

Chapter - Directing
Definitions of Directing
"Direction is the executive function of guiding and observing subordinates."- Koontz and O'Donnell

Features of Directing
1. Directing Initiates Action:
➢ After preparing the human machinery under the Staffing function of management,
they will need to move and human machinery initiates action under Directing.
➢ So we can say, other functions prepare ground for action, and Directing initiates action.

2. Directing Takes Place at Every Level of Management:

➢ Directing is required at every level of management.
➢ The top-level managers direct their subordinates who are the middle-level managers.
➢ In the same manner, the middle-level managers direct their subordinates who are the
supervisory-level managers, and
➢ the supervisory- level managers further direct and guide their subordinates, i.e., the people
who actually do the work.

3. Directing is a Continuous Process:

➢ Directing is a continuous process.
➢ The work of a manager is not merely accomplished by issuing directions and instructions.
➢ He has to constantly review the work of his subordinates, guide them correctly and also
motivate them from time to time.
➢ By doing this he can constantly ensure that work is progressing as per the plans, and in case
of any negative deviation, he has to take corrective action immediately.

4. Directing Flows from Top to Bottom:

➢ Direction flows from top to bottom.
➢ It starts from the top-level management and ends at the supervisory level of management.

Importance of Directing
The importance of direction is highlighted through the following facts:
1. It Initiates Action:
➢ After preparing the human machinery under the Staffing function of management,
they will need to move and human machinery initiates action under Directing.
➢ So we can say, other functions prepare ground for action, and Directing initiates action.

2. It Integrates Employees Efforts:

➢ There are many employees work in an organisation, and they work in chain.
➢ Success of any organisation is possible only when everybody does their job efficiently.
➢ If any one of employees in the employees- chain does not perform up to the mark, it adversely
affects the performance of the remaining employees.
➢ Their all activities are co-related and require proper coordination.
➢ The manager establishes this coordination by taking the help of elements of Directing i.e.,
supervising, providing good leadership, motivating and exchanging ideas with his
subordinates.

3. It is the Means of Motivation:

➢ The objectives of an organisation can only be achieved by motivated employees.
➢ Motivated employees work with full dedication.
➢ Employees can be motivated with the help of Direction.

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4. It Facilitates Implementing Changes:

➢ Environment is dynamic and these changes need to implemented.
➢ But, the employees show resistance at the time of implementation of changes.
➢ Managers through the medium of Direction change mindset of the employees to accept
changes.

5. It Creates Balance in the Organisation

➢ Sometimes there is a clash between individual and organisational objective.
➢ Directing helps to settle down these clashes and creates a balance in the organisation.
➢ On the one hand, a person works in an organisation for the fulfilment of his objectives like
higher salary, promotion, etc.
➢ On the other hand, the objectives of a company can be to earn higher profits, more market share
etc. Managers, through direction, create balances in interest of both the parties.

Principles of Directing
Following are the main principles of Directing:
1. Principle of Maximum Individual Contribution:
➢ According to this principle, management should adopt that directing policy through which
the employees get motivated and
➢ give their maximum individual contribution for the achievement of organisational objective.

2. Principle of Harmony of Objectives:

➢ According to this principle, there must be full harmony (i.e., balance) between
organisational and individual objectives.
➢ Very often, it is seen that there is a conflict between the objectives of both the parties.
➢ Management here must establish coordination between the objectives of both the parties by
adopting suitable method of direction.

3. Principle of Unity of Command:

➢ According to this principle, a subordinate should get directions from one officer at a time.
➢ If the subordinate gets directions from more than one officer, the subordinate will be unable
to prioritise his work.
➢ As a result, situation of confusion, conflict and disarrangement is created.
➢ By following this principle, effective direction takes place.

4. Principle of Appropriateness of Direction Technique:

➢ According to this principle, appropriate direction techniques should be used
- to supervise effectively,
- to provide able leadership,
- to adopt free communication and
- to motivate through right medium.

5. Principle of Managerial Communication:

➢ According to this principle, it should be monitored by the management that the subordinates
get the same meaning for what has been said.
➢ This simplifies the job of the subordinates and they need not go to the managers repeatedly.

6. Principle of Use of Informal Organisation:

➢ According to this principle, there must be a free flow of information between the seniors
and the subordinates.
➢ The success of direction depends upon effective exchange of information to a great extent.
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➢ Information should be given both through-formal and informal mediums.

7. Principle of Leadership:
➢ According to this principle, while giving directions to the subordinates a good
leadership must be provided by the managers.
➢ By this, subordinates get influenced by the managers.
➢ In this situation, subordinates act according to the wish of the managers.

8. Principle of Follow Through:

➢ According to this principle, it must be monitored by management as to what extent the policies
framed and issued directions have been enforced.
➢ As per this principle, the job of managers is not to sit idle after framing policies or issuing
directions but to continuously take feedback.
There are four Elements of Directing
1. Supervision.
2. Motivation.
3. Leadership.
4. Communication.

Supervision
Meaning of Supervision:-
➢ It refers to the monitor the progress to routine work of subordinates and
➢ Guiding them properly.

Characteristics of Supervision
1. It is a universal activity performed at all levels of management.
2. It is an important part of the directing function of management.
3. It is a continuous process since required at all times.
4. It is very necessary to have face-to-face contact between the supervisor and his subordinates.
In other words, supervision cannot take place in abstract form.
5. It ensures that work is proceeding as per the required level of performance.
6. It aims at ensuring optimum utilisation of human and other resources.
7. It has special importance for lower-level managers.

Role of a Supervisor
1. As a Key Man:
➢ Work of putting the plans into action is done by non-managerial members who work under
the guidance of the supervisor.
➢ Little carelessness at this level may ultimately become the cause of the closure of the
organisation.
➢ So supervisor is referred to as the 'key man in the management.

2. As a Mediator:
➢ In the organisation, the supervisor plays the role of a mediator.
➢ He acts as a link between the higher-level managers and the workers.
➢ His main job is to prepare a cooperative atmosphere among the two parties in order to
achieve the goals of the organisation.

3. As a Human Relations Specialist:

➢ A supervisor is faced with a number of problems related to human behaviour every day,
➢ For which he has to try and find solutions.
➢ He can do so only if he is a Human Relations Specialist..

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Functions of a Supervisor
The following are the functions of a supervisor:
1. Facilitates Control:
➢ Under supervision, the supervisor keeps a close eye on his subordinates.
➢ Wherever he finds any flaws in the work-in-progress, he rectifies them then and there
itself.
➢ In this manner, supervision assures control.

2. Optimum Utilisation of Resources:

➢ Under supervision, all the activities are closely monitored.
➢ In this situation, better utilisation of all the resources like human, material, machinery, etc.
takes place.
➢ As a result, they start doing effective work in the minimum possible time.

3. Maintenance of Discipline:
➢ Strict watch and timely guidance of the employees teaches them a lesson in discipline.
➢ It builds pressure on their mind to maintain discipline.

4. Feedback:
➢ During supervision, a supervisor is always in direct contact with his subordinates.
➢ As a result, ideas, suggestions, complaints, etc. are continuously received by the supervisor.
➢ This facilitates the process of receiving feedback.

5. Improves Communication:
➢ Situation of dispute arises because of lack of communication.
➢ Under supervision, the supervisor gives orders and directions to his subordinates. Also, he,
in turn, receives feedback from them.
➢ This strengthens free communication by creating friendly atmosphere.

6. Improves Motivation:
➢ During supervision, a supervisor divides the work in a manner that makes every person feel
the responsibility for an important job in the organisation.
➢ By getting this kind of importance, an employee feels motivated and he takes his
responsibility with more diligence.

Difference Between Directing and Supervision:-

Basis Direction Supervision
Meaning It refers to instructing, guiding, It refers to monitoring the
communicating and inspiring progress of routine work of one's
people so that the objective can be subordinates and guiding them
achieved properly
Scope Its scope is wider as supervision is Its scope is narrower as it is one of
one of the elements of it. the elements of direction.

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Motivation
Concept of Motivation
➢ Objectives of the any organization is achieved by organising the activities of various persons
(i.e., human factor) working in the organisation.
➢ On whose efficiency the utility of non-human factors like machine, material, etc. depends.
➢ The efficiency of a person depends on two factor
1. the level of ability to do a certain work - (acquired by education and training) and
2. the willingness to do the work – (achieved through motivation).

Definition of motivation
To motivate is to induce people to act in a desired manner. - Koontz and O'Donnell
Characteristics of Motivation
1. Motivation is an Internal Feeling:
➢ Motivation is a psychological concept which lies within a person.
➢ First of all some needs appear in the mind of an individual and then his behaviour will be
affected to satisfy those needs.

2. Motivation Produces Goal -directed Behaviour

➢ Motivation leads the employees to the achievement of their goal.
➢ For example, promotion is a technique of motivation.
The employees who desire to be promoted definitely improve their work performance.

3. Motivation Can be either Positive or Negative

➢ There are two types of employees from the point of view of motivation
- Laborious, they are encouraged with some awards to be called positive motivation. and
- Shirkers, they are encouraged to work with the threat of demotion, suspension or termination, to
be called negative motivation.

4. Motivation is a Complex Process:

➢ All the people working in an organisation have different nature having different needs.
➢ Therefore, everybody cannot be motivated with only one motivator.
➢ Keeping in mind the needs of the person concerned, monetary and non-monetary
techniques are used. Therefore, it is a complex process.

Motivation Process
From the following, 'Need-satisfying Process', we know as to where from does Motivation start
and where does it end.
1. Unsatisfied Need: At the first step of motivation a person feels the need of something.
2. Tension: If wants not get satisfied, the person concerned gets tensed.
3. Drives: At this step the person concerned endeavours to fulfil his need through direction.
4. Search Behaviour: At this step, a person tries to discover different options to fulfil his need.
5. Need Satisfied: If the option really happens to be a correct one, satisfaction is obtained.
6. Reduction of Tension: The person concerned gets relieved when his need is sans lied.

Importance of Motivation
1. Improves Performance Level:
➢ Efficiency of a person depends on his ability and willingness.

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➢ The ability is obtained with the help of education and training and willingness is obtained
with the help of motivation.
➢ Willingness is more important in comparison to ability.

2. Helps to Change Negative Attitudes of Employees:

➢ Some employees of an organisation think that doing more work will not bring any credit.
➢ A manager uses various techniques to change such negative attitude.

3. Reduction in Employee Turnover:

➢ If labour turnover is high, lot of time and money go waste in repeatedly recruiting
employees and giving them education and training.
➢ Only motivation can save an organisation from such a wastage.
➢ Motivated people work for a longer time in the organisation and there is a decline in the
rate of turnover.

4. Helps to Reduce Absenteeism in the Organisation:

➢ There are many causes for absenteeism —poor work conditions, poor relations with
colleagues and superiors, no recognition in the organisation, insufficient reward, etc.
➢ A manager removes all such deficiencies and motivates the employees.
➢ Motivated employees do not remain absent from work as the workplace becomes a source of
joy for them.

5. Reduction in Resistance to Change:

➢ Environment is dynamic and it is need to be implemented but normally workers are not
prepared to accept any changes in their normal routine.
➢ Employees can be made to accept such changes easily with the help of motivation.

Maslow's Need-HierarchyTheory
Abraham Maslow presented the Need-Hierarchy Theory of Motivation.
According to him, a man has countless needs and they can he categorised and satisfied on the basis
of priority.
Maslow has divided different human needs on the basis of priority into five parts:-
1. Physiological Needs:
➢ In this category, those needs are included which need to be satisfied to keep a man alive.
➢ These needs include food, shelter, clothing and sleep, etc.

2. Safety or Security Needs:

➢ After physiological needs are satisfied, a man thinks about his safety.
➢ Safety needs include physical and economic needs.

Physical Safety refers to defence against accidents, attacks, diseases and other unexpected problems.
Economic Safety means safety of livelihood and arrangement for old age.

3. Affiliation or Social Needs:

➢ Man is a social animal and wants to live in society honourably.
➢ It is, therefore, necessary that he should have friends and relatives with whom he can share
his joys and sorrows.

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4. Esteem Needs:
➢ These needs are called ego needs of man.
➢ This means every human being wants to attain a higher status so that his power increases
and he gets authority.

5. Self-actualisation Needs:
➢ Self-actualisation needs refer to the desire to maximise whatever potential an individual
possesses.
➢ For example, a poet wants to be a specialist in his field.

Assumptions of Maslow's Theory

Following are the assumptions of Maslow's theory:
1. People's behaviour, being affected by their needs.
2. There are many needs of people and their order or priority can be made.
3. Motivation ends with the satisfaction of needs. After that the next higher need serves as a
motivator.
4. People move to next higher need only when the lower level needs are satisfied.
Financial/Monetary and Non-financial/Non-monetary Incentives
Incentive is that power which motivates an employee towards hard work. It may be Financial or
non financial.
Financial or Monetary Incentives
Financial incentives are those incentives which are evaluated in terms of money.
It may be in form of cash or in non-cash.
Following can be included among the chief financial incentives:
1. Pay and Allowances:
➢ Pay and allowances are the chief monetary incentives for every employee.
➢ Salary includes basic pay and dearness allowance along with other allowances.
➢ The employees remain motivated with the annual increment in pay and allowances.

2. Productivity-linked Wage Incentive:

➢ The employees can be motivated by linking productivity with their salary.
➢ The increment in salary will be in direct proportion of increase in productivity.

3. Bonus:
➢ It that payment to employees in addition to their regular remuneration which is paid as a
reward of their good services.
➢ The bonus plan helps in establishing cordial relations between owners and employees.
➢ These days the payment of bonus to employees is prevalent in almost all the industries.
➢ The payment of bonus may be in cash or kind.

4. Profit Sharing:
➢ The earned profit of a business efforts of two parties, namely owners and
employees.
➢ The owners invest money and employees provide services to fulfil the objectives.
➢ Although the employees get their remuneration as a reward of their services yet
sometimes they are made part of the profit.

5. Co-partnership:
➢ It is a developed form of profit sharing.
➢ It is based on the establishment of industrial democracy and workers'

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participation in management.
➢ Under this plan, the employees provide their services to the company and they are
also the partners in the equity capital and get Dividend besides remuneration.

6. Retirement Benefits:
➢ Every employee remains concerned about his future after retirement.
➢ If he is offered financial security for his post-retirement period, his future will be
secured.
➢ Provident Fund and Gratuity are the best examples of post-retirement benefit.

7. Perquisites:
➢ Perquisites are those facilities which an employee gets free from the employer,
e.g., rent-free accommodation, car, facility of a servant, etc.
➢ These facilities play an important role in motivating the employees.

Non-financial or Non-monetary Incentives

Non-financial incentives are not directly related with money.
These incentives help in the satisfaction of top hierarchy needs like Social, Esteem and
Self-actualisation.
It is in the form of mental reward.
1. Status:
➢ Status means rank of a person in the organisation.
➢ Everybody has a wish for a higher status.
➢ Therefore, the employees can be motivated by raising their rank or position.

2. Organisational Climate:
➢ Organisational climate means the working system within the organisation.
➢ This includes individual freedom, the importance of employees, etc.
➢ Every person likes to work in a better organisational climate.
➢ The manager can motivate the employees by providing a better organisational environment.

3. Career Advancement Opportunity:

➢ Every employee of the organisation wants to advance his life.
➢ Promotion is an important example of advancement.
➢ Training and development facilities have got to be provided for the promotion of the
employees.

4. Job Enrichment:
➢ Job enrichment means increasing the importance of work.
➢ Such a job should have
i.) authority, responsibility, and a wide scope for challenges,
ii.) there should be a need of higher knowledge and experience,
iii.) the opportunities for personal development should be available, and
iv.) there should be absolute freedom to take decisions.
➢ The employees feel proud of getting such a job.
➢ Thus, job enrichment enhances people's interest in their work and they start getting
motivated automatically.

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5. Employee Recognition Programmes:

➢ Every employee wishes to be considered as an important part of the organisation.
➢ It means that he should have his own identity and he should appear to be distinctive.
Some of the examples are given below which help in the employee's recognition:
i.) Congratulating the employee for good work performance;
ii.) Displaying employee's achievements on the information board;
iii.) Awards at the ceremonial functions of the organisation for better work
performance and
iv.) Honouring for offering valuable suggestions.

6. Job Security:
➢ Job security is an important non-monetary motivator.
➢ Security of job means a feeling of permanence and stability.
➢ For example, if an employee has insecurity in his mind, that he can be removed from his job
any time, he will not work whole heartedly.
➢ People prefer a permanent job with less salary to a temporary job with more salary.

7. Employees Participation:
➢ Employees get encouraged on their participation in managerial works.
➢ Therefore, they offer their full cooperation in making successful the policies prepared
with their help.

8. Employees Empowerment:
➢ Employee’s empowerment means giving the employees more freedom to take
decisions.
➢ When the decision-making power of the employees increases, they consider that they are
doing some important work in the organisation.
➢ This feeling motivates them.

Communication:
Definitions of Communication
Communication is the process of passing information and understanding from one person to another.
Keith Davis,

Characteristics of Communication
1. Two or More Persons:
➢ There must be at least two persons—the sender of information and the receiver.
➢ because no single individual can have an exchange of ideas with himself.
2. 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.
➢ Communication cannot be thought of in the absence of exchange of ideas.
3. Mutual Understanding:
➢ In the process of communication, it is more important to understand the information rather
than carry it out.
➢ Mutual understanding means that the receiver should receive the information in the same
spirit with which it is being given..
4. Direct and Indirect Communication:
➢ Communication can be both direct and indirect.

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➢ Direct communication means face-to-face conversation, while indirect communication is
through other means.
5. Continuous Process:
➢ Communication is an endless process,
➢ In business 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.

The Communication Process

1. Sender/Communicator:
➢ The sender is the person who sends his ideas to another person.
➢ For example, if the manager wants to inform his subordinate about a work plan, he is sender.
2. Message:
➢ The message is the subject-matter of communication.
➢ It includes opinion, feelings, views, attitude, orders, suggestion, etc.
3. Encoding:
➢ It refers to the process of converting the message into communication symbols.
➢ For example, to make use of words, gestures, pictures, etc. to convey the message.
4. Media/Transmission:
➢ There can be many media of communication like face-to-face conversation, letters, internet
chatting, telephone, E-mail, symbols, etc.
➢ For example, if the message is to be sent to some distant place quickly it would be proper to
use telephone as a medium of communication.
➢ During the transmission of a message, it is very important to keep the media of transmission free
from noise.
5. Decoding:
➢ The sender can send his ideas briefly in the form of symbols or diagrams.
➢ Understanding it correctly is called decoding.
➢ For example, a telegram carries a long message in the form of a few words and when the receiver
tries to understand the message in detail, his effort is called decoding.
6. Receiver: A receiver is a person for whom the message is sent.
7. Feedback: Feedback is a signal pointing out to what extent the receiver has really received and
understood the sender's message correctly.
The process of communication is repeated time and again.

Importance of Communication in Management

1. Acts as Basis of Coordination:
➢ Whole organisation is decided by division of work and coordination is required among
various alternative to get the work done successfully.
➢ For the purpose of coordination it is essential that the people should have a mutual
understanding and also should have the knowledge about the relationship of their
activities.
➢ This is possible only with the help of effective communication.
2. Helps in Smooth Working of an Enterprise:
➢ Communication begins with the thought of establishing an enterprise and continues till its
closure.
➢ All the decisions taken in the organisation and all the activities being carried on therein depend
on communication.

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3. Acts as Basis of Decision Making:
➢ Before taking any decision many sorts of information have to be collected on the basis of
which an idea is given the final shape.
➢ Information connected with the decision making can be obtained only with the help of
communication.
➢ Communication is also made for the purpose of effectively implementing the decisions.
4. Increases Managerial Efficiency:
➢ Through communication managers pass on the information about the objectives laid
down, issue directions, divide work and control the activities of the subordinate
employees.
➢ Therefore, in the presence of communication increases his efficiency.
5. Promotes Cooperation and Industrial Peace:
➢ Industrial peace means the existence of sweet labour-management relations.
➢ This is possible only when there exists two-way communication.
➢ Consequently, it promotes cooperation and helps industrial peace to grow.
6. Establishes Effective Leadership:
➢ In order to become an efficient leader, a manager must possess the knowledge of the art of
communication.
➢ A manager can become an efficient leader by improving the art of communication.
7. Boosts Morale and Provides Motivation:
➢ Effective communication helps in boosting the morale of the employees and motivates
them.
➢ For example, if the employees are made partners in the process of decision making, it will
give them an identity of their own in the organisation.
➢ In such a situation they will definitely be motivated and their morale will be at the highest
level.

Types of Communication
A. Formal Communication
➢ Formal communication refers to interchange of information officially.
➢ The flow of communication is controlled and is a deliberate effort.
➢ Information reached to the desired place without any hindrance, at a little cost and in a
proper way.
➢ This is also known as 'Through Proper Channel Communication.'

Characteristics
1. Written and Oral:
➢ Formal communication can both be written and oral.
➢ Daily works are handled through oral communication, while the policy matters require
written communication.
2. Formal Relations:
➢ This communication is adopted among those employees where formal relations have been
established by the organisation.
➢ The sender and the receiver have some sort of organisational relations.
3. Prescribed Path:
➢ The communication has to pass through a definite channel while moving from one
person to another.
➢ For example, to convey the feelings of a worker to the manager, the foreman's help has to
be sought.

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4. Organisational Message:
➢ This channel is concerned, with the authorised organisational messages only and the
personal messages are out of its jurisdiction.
5. Deliberate Effort:
➢ This channel of communication is not established automatically but effort has to be made for
its creation.
➢ It is decided keeping in view the objectives of the organisation.

Advantages
1. Maintenance of Authority of the Officers:
➢ Formal communication maintains constant relations among the superiors and the
subordinates as a result of which the dignity of the line superiors is maintained.
➢ Consequently, it is convenient to control the subordinates and fix their responsibility which is
absolutely needed for effective and successful control.
2. Clear and Effective Communication:
➢ In formal communication, there is a direct contact among the managers and the subordinates.
➢ Both understand the capability, habits, feelings, etc. of one another.
➢ Managers know as to when and under which conditions their subordinates need information.
➢ In this way, this communication is capable of making available timely information. Hence, it
is clear and effective.
3. Orderly Flow of Information:
➢ The information has to pass through a definite route from one person to another.
➢ Hence, the flow of information is systematic.
4. Easy Knowledge of Source of Information:
➢ In this type of communication, the source of each information can be easily located.

Limitations
1. Overload of Work:
➢ In a modern business organisation much information, many messages and other things have
to be communicated.
➢ Under formal communication, all are routed through a definite channel and this consumes
much of the time of the superiors and
➢ thus some other important works are left unattended.
2. Distortion of Information:
➢ This method can be a hindrance in the flow of information.
➢ Sometimes the distance between the sender and the receiver is so big that the information
has to pass through many hands and by the time it reaches the receiver it is distorted.
➢ Thus it fails to serve its purpose.
3. Indifferent Officers:
➢ The officers do not pay much attention to the suggestions and complaints of the subordinates.
➢ In such a case a subordinate may lose his faith in the effectiveness of communication.

Types of Formal Communication

1. Vertical Communication
i.) Downward Communication:
➢ The communication by top hierarchy with their subordinates is called downward
communication.
➢ This communication includes orders, rules, information, policies, instructions, etc.
➢ The chief advantage of the downward communication is that the subordinates get useful

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timely information which helps them in their work performance.
ii.) Upward Communication:
➢ This is quite the reverse of the downward Communication.
➢ This flows from the subordinates to the superiors.
➢ The subject-matter of this communication includes suggestions, reactions, reports,
complaints, etc.
➢ This sort of communication helps the superiors in taking decisions.

2. Horizontal Communication
➢ It takes place when two individuals of the same level exchange information.
➢ Horizontal communication is used by the same level officers to solve the problems of
similar nature and profit by the experience of other people.
➢ The subject-matter of horizontal communication includes information, requests, suggestions,
mutual problems and coordination-related information.

Formal Communication Network

The way in which formal communication is done, is known as formal communication network.
Formal communication can be done in different ways—it may be vertical communication or
horizontal communication.
The different forms of formal communication network have been shown in the following diagram:
1. Chain Communication:
➢ Chain communication refers to the communication between a superior and a subordinate.
➢ All the people in an organisation from top to bottom are linked with the help of a scalar
chain.
2. Wheel Communication:
➢ In this form of communication, all the subordinates of a superior talk to one another
through his medium.
➢ The superior works as a hub of a wheel.
3. Circular Communication:
➢ This communication takes place among the members of a group.
➢ Every member of a group can communicate with the nearest two members.
➢ In this case the communication moves at a slow speed.
4. Free Flow Communication:
➢ This form of communication also takes place among the different members of the group.
Its special feature is that every member of the group can talk to all the other people in the
group.
➢ In this case, the communication moves at a rapid pace.
5. Inverted 'V' Communication:
➢ In this form of communication, a subordinate is permitted to communicate with the boss of
his boss.
➢ In this form of communication the messages move at a rapid speed.

B. Informal Communication
➢ Informal communication refers to interchange of information unofficially.
➢ This communication is based on informal relations (like friendship, membership of the
same club, the same place of birth, etc.) and, therefore, is free from all the organisational
formalities.
➢ The exchange of informal messages usually takes place on the occasion of community meals,
social occasions, parties, etc.
➢ On such occasions, the superiors gather such information from their subordinates as may be
difficult to get through formal communication.
➢ Such communication includes comments, suggestions, etc.

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➢ Informal communication is also called grapevine communication because there is no definite
channel of communication.

Characteristics
1. Formation through Social Relations:
➢ This communication is born out of social relations which means that it is beyond the
restrictions of the organisation.
➢ No superior-subordinate relationship figures therein.
➢ A more sociable superior can gather much information through this channel..
2. Two Types of Information:
➢ Through this communication, information about the work and the individual can be
collected.
3. Uncertain Path:
➢ Since it is beyond the restrictions of the organisation, it follows no definite channel.
➢ Like a grapevine, it moves in a zigzag manner.
4. Possibility of Rumour and Distortion:
➢ Responsibility for the true or false nature of communication does not lie on any individual and,
therefore, the rumours keep floating.

Advantages
1. Fast and Effective Communication:
➢ Under this, the messages move fast and their effect is equally great on the people.
2. Free Environment:
➢ Informal communication is done in a free environment.
➢ The reactions of the employees can easily be collected.
3. Better Human Relations:
➢ Informal communication saves the employees from tension.
➢ Freedom from tension helps the establishment of better human relations. This also affects the
formal communication.
4. Easy Solution of the Difficult Problems:
➢ There are many problems which cannot be solved with the help of formal communication.
➢ There is more freedom in informal communication which helps the solution of difficult
problems.
5. Satisfying the Social Needs of the Workers:
➢ Everybody wants good relations with the high officers at the place of his work.
➢ Such relations give satisfaction to the employees this can be possible only with the help of the
informal communication.

Limitations
1. Unsystematic Communication:
➢ This communication is absolutely unsystematic and it is not necessary that
information reaches the person concerned.
2. Unreliable Information:
➢ Most of the information received through this communication is undependable and no
important decision can be taken on its basis

Grapevine Communication:-
➢ Informal communication is also known as grapevine.
➢ there is no definite route of communication for sharing information.
➢ It is also difficult to find out the beginning and the end of
the grapevine

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The following four forms of the grapevine network are in vogue:
1. Single Standard:
➢ In this form of communication, a person says something to a trustworthy person who, in
turn, passes on the information to another trustworthy person and in this way a chain starts
moving.
2. Gossip Chain:
➢ In this form of communication, a person communicates something to a number of persons
during the course of a gossip.
➢ A particular person in an organisation knows something specific that happens to be
interesting. He tells this thing to all the members of his group and some other people also.
➢ Normally, such an information is not related to the job.
➢ For example, two employees of the organisation are going in for a love marriage and some
particular person has got this information, he passes on this information to a large number of
people.
3. Probability:
➢ In this form of communication, a person remains indifferent about the fact as to whom
he should pass on the information.
➢ There are numerous people around him.
➢ He passes on the information randomly to somebody around him.
➢ Those who get the information also have many people around them. This chain will
continue to move in this manner.
4. Cluster:
➢ In this form of communication, a person tells something to selected individuals.
➢ Those who receive the information further pass it on to another set of selected individuals.
➢ In this way, this chain moves on.
➢ In every organisation some people have good liaison with other persons. Such people pass
on the information to persons of their choice with the purpose of getting some favour
from them.

Media of Communication
➢ Communication channel, formal or informal, requires some subject matter for
communication (message, idea, suggestion, complaint, etc.) in the form of some words, signs
or diagrams, which are called the
media of communication.
➢ They can be separately used or one medium can he used to help the other medium.
➢ The media of communication can be divided into three parts—oral, written, and
gestural.

Barriers to Effective Communication

1. Semantic Barriers
➢ There is always a possibility of misunderstanding the feelings of the sender of the
message or getting a wrong meaning of it.
➢ The words, signs, and figures used in the communication are explained by the receiver in
the light of his experience which creates doubtful situations.
➢ This happens because the information is not sent in simple language.

The chief language-related barriers are as under:

i.) Badly Expressed Message:
➢ This barrier is created because of the wrong choice of words and
➢ the wrong sequence of sentences and frequent repetitions.

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ii.) Symbols or Words with Different Meanings:
➢ A symbol or a word can have different meanings.
➢ If the receiver misunderstands the communication, it becomes meaningless.

iii.) Faulty Translation:

➢ A manager receives much information from his superiors and subordinates and he
translates it for all the employees according to their level of understanding.
➢ Hence, the information has to be moulded according to the understanding.
➢ If there is a little carelessness in this process, the faulty translation can be a barrier in the
communication.

iv.) Unclarified Assumptions:

➢ It has been observed that sometimes a sender takes it for granted that the receiver
knows some basic things and, therefore, it is enough to tell him about the major subject
matter. This point of view of the sender is correct to some extent with reference to the
daily communication, but it is absolutely wrong in case of some special message.

(v) Technical Jargon: Generally, it has been seen that the people working in an enterprise are
connected with some special technical group who have their separate technical language. Their
communication is not so simple as to be understood by everybody. Hence, technical language can
be a barrier in communication. This technical group includes industrial engineers, production
development manager, quality controller, etc.
(vi) Body Language and Gesture Decoding: When the communication is passed on with the help
of body language and gestures, its misunderstanding hinders the proper understanding of the
message. For example, moving one's neck to reply to a question does not indicate properly
whether the meaning is 'Yes' or 'No'.

(2) Psychological or Emotional Barriers

The importance of communication depends on the mental condition of both the parties. A
mentally disturbed party can be a hindrance in communication. Following are the emotional
barriers in the way of communication:
(i) Premature Evaluation: Sometimes the receiver of information tries to dig out meaning without
much thinking at the time of receiving or even before receiving information, which can be wrong.
This type of evaluation is a hindrance in the exchange of information and the enthusiasm of the
sender gets dampened.
(ii) Lack of Attention: When the receiver is preoccupied with some important work he/she does not
listen to the message attentively. For example, an employee is talking to his boss when the latter
is busy in some important conversation. In such a situation, the boss may not pay any attention to
what subordinate is saying. Thus, there arises psychological hurdle in the communication.
(iii) Loss by Transmission and Poor Retention: When a message is received by a person after it has
passed through many people, generally it loses sonic of its truth. This is called loss by transmission.
This happens normally in case of oral communication. Poor retention of information means that with
every next transfer of information the actual form or truth of the information changes. According to one
estimate, with each transfer of oral communication the loss of the infOrmation amounts to nearly
30%. This happens because of the carelessness of people. Therefore, lack of transmission of
information in its true or exact form becomes a hindrance in communication.
(iv) Distrust: For successful communication the transmitter and the receiver must trust each other. If
there is a lack of trust between them, the receiver will always derive an opposite meaning from
the message. Because of this, communication will become meaningless.

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(3) Organisational Barriers
Organisational structure greatly affects the capability of the employees as far as the
communication is concerned. Some major organisational hindrances in the way of communication
are the following:
(i) Organisational Policies: Organisational policies determine the relationship among all the
persons working in the enterprise. For example, it can be the policy of the organisation that
communication will he in the written form. In such a situation anything that could be conveyed in
a few words shall have to be communicated in the written firm. Consequently, work gets
delayed.
(ii) Rules and Regulations: Orga.nisational rules become barriers in communication by determining
the subject-matter, medium, etc. of communication. Troubled by the definite rules, the senders do
not send some of the messages.
(iii) Status: Under organising all the employees are divided into many categories on the basis of their level.
This formal division acts as a barrier in communication especially when the communication moves
from the bottom to the top. For example, when a lower-level employee has to send his message to a
superior at the top level there is a lurking fear in his mind that the communication may be faulty, and
because of this fear, he cannot convey himself clearly and in time. It delays the decision making.
(iv) Complexity in Organisational Structure: The greater number of managerial levels in an
organisation makes it more complex. It results in delay in communication and information gets changed
before it reaches the receiver. In other words, negative things or criticism are concealed. Thus, the
more the number of managerial levels in the organisation, the more ineffective the
communication becomes.
(v) Organisational Facilities: Organisational facilities mean making available sufficient
stationery, telephone, translator, etc. When these facilities arc sufficient in an organisation, the
communication will be timely, clear and in accordance with necessity. In the absence of these facilities
communication becomes meaningless.

(4) Personal Barriers

The above-mentioned organisational barriers are important in themselves but. there are
some barriers which are directly connected with the sender and the receiver. They are called
personal barriers. From the point of view of convenience, they have been divided into two
parts:
(a) Barriers Related to Superiors: These barriers are as follows:
(i) Fear of Challenge of Authority: Everybody desires to occupy a high office in the organisation. In
this hope the officers try to conceal their weaknesses by not communicating their ideas: There is a
fear in their mind that. in case the reality comes to light they may have to move to the lower level.
(ii) Lack of Confidence in Subordinates: Top-level superiors think that the lower- level employees are
less capable and, therefore, they ignore the information or suggestions sent by them. They
deliberately ignore the communication from their subordinates in order to increase their own
importance. Consequently, the self-confidence of the employees is lowered.
(b) Barriers Related to Subordinates: Subordinates-related barriers are the following:
(i) Unwillingness to Communicate: Sometimes the subordinates do not want to send any
information to their superiors. When the subordinates feel that the information is of negative
nature and will adversely affect them, an effort is made to conceal that information. If it
becomes imperative to send this information, itis sent in a modified or amended form. Thus, the
subordinates, by not clarifying the facts, become a hindrance in communication.
(ii) Lack of Proper Incentive: Lack of incentive to the subordinates creates a hindrance in
communication. The lack of incentive to the subordinates is because of the fact that their
suggestions or ideas are not given any importance. If the superiors ignore the subordinates, they
become indifferent towards any exchange of ideas in future.
Measures to Overcome the Barriers of Communication

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In order to remove hindrances in the way of communication the following steps are worth
consideration:
(1) Clarify Ideas before Communication: The person sending the communication should he very clear in
his mind about what he wants to say. He should know the objective of his message and, therefore, he
should arrange his thoughts in a proper order.
(2) Communicate According to the Need of the Receiver: The sender of the communication
should prepare the structure of the message not according to his own level or ability but he should
keep in mind the level, understanding or the environment of the receiver.
(3) Consult Others before Communication: At the time of planning the communication, suggestions
should be invited from all the persons concerned. Its main advantage will be that all those
people who are consulted at the time of preparing the communication plan, will contribute to
the success of the communication system.
(4) Be Aware of Language, Tone and Content of Message: The sender should take care of the
fact that the message should be framed in clear and beautiful language. The tone of the message
should not injure the feelings of the receiver. As far as possible the contents of the message
should be brief and excessive use of technical words should be avoided.
(5) Convey Things of Help and Value to the Listener: The subject matter of the message should be helpful
to the receiver. The need and interest of the receiver should specially be kept in mind.
Communication is more effective in such a situation.
(6) Ensure Proper Feedback: The purpose offeedback is to find out whether the receiver has properly
understood the meaning of the information received. In the Bice-toface communication, the
reaction on the face of the receiver can be understood. But in case of written communication or
some other sort of communications some proper method of feedback should be adopted by the
sender.
(7) Consistency of Message: The information sent to the receiver should not be self- contradictory. It
should be in accordance with the objectives, policies, programmes and techniques of the
organisation. When a new message has to be sent in place of the old one, it should always make a
mention of the change otherwise it can create some doubts.
Follow-up Communication: In order to make communication effective the management
should regularly try to know the weaknesses of the communication system. In this context, effort
can be made to know whether to lay more stress upon the Formal or the informal communication
would be appropriate. Similarly, suggestions can be invited in respect of the medium of
communication (oral, written and gestural) to know as to which medium would be more
effective and appropriate.

Be a Good Listener: it is the essence of communication that both the sender and the receiver
should be good listeners. Both should listen to the each other's point of view with attention,
patience and positive attitude. A sender can receive much relevant information by being a good
listener

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