Business

Communication
BS/BF/BEC/HRM/BSP 150
Learning Outcomes
At the end of this lesson learners should be able to :
 Define effective communication in an organisation and its
function
 Understand the communication process and the key elements in
the communication process
 Differentiate between internal and external communication
 The direction flow of communication and the barriers to
communication.
COMMUNICATION

 Communication is an exchange of facts, ideas, opinions or

emotions by two or more persons.
 It is a two way process that starts with sending a message by the
sender to the receiver and is completed with receiving feedback
from the receiver of the message. Communication is more than
just exchanging information.
 Effective communication occurs when all the parties (sender and
receiver) in the communication, assign similar meanings to the
message and listen carefully to what all has been said and make
the sender feel heard and understood.
 In an organisation communication is said to be effective if
contributes the achievement of goals.
Functions of communication

 Decision making
 To express emotions
 To activate motivation
 To inform
 Maintain internal and external relationships
 To provide feedback on performance
Communication Process
Key elements in the
communication process
 A sender – the initiator of the message (person, group or organisation
that has a message to share with another person or group of persons)
 Encoding – translating the message into a language, code, sign or
gesture that the intended receiver of the message is likely to
understand.
 Message- what is communicated
 The channel- the medium the message travels through ( it is a means
of carrying an encoded message from the source to the receiver) –
when selecting the channel of communication, the sender should
consider the following factors:
 The intended purpose of the message
 The number of receivers
 The characteristics of receivers
Key elements in the
communication process
 Possible media include, telephone calls, memos, letters,
computers, bulletin boards, photographs, meetings, publications,
advertising on television, and radio etc.
 Two types of channels i.e.
 Formal channels –are established by the organisation and
transmit messages related to the professional activities of the
organisation
 Informal channels are used to transmit personal or social
messages in the organisation
Key elements in the
communication process
 Decoding- the receivers action in making sense of the message,
is the process by which the receiver interprets the symbols
(coded message) sent by the source by converting them into
concepts an ideas
 The receiver- the person who gets the message
 Noise- thing that interfere with the message
Key elements in the
communication process
 Feedback- is the receiver’s response to the sender’s message.
During feedback, the Receiver becomes the source of a message
that is directed back to the original source, who then becomes a
receiver. Without feedback, senders have no way of knowing
whether their ideas have been accurately understood.
Channels of Communicating

 Oral - People communicate with each other most often by talking

or oral communication
 The advantages of oral communications are quick transmission
and quick feedback.
 The major disadvantages is potential for distortion especially
when a lot of people are involved
 Written- written communication include memos, letters,
organizational periodicals, bulletin boards or words symbols.
 The advantage of written communications is that it is
permanent, tangible and verifiable. Typically, both the sender
and receiver have a record of the communications. The message
can be stored for an indefinite of time.
Channels of Communicating

 Disadvantages
 They are time consuming and sometimes feedback is either
delayed or not received.
Channels of Communicating

 Nonverbal-These are nonverbal communications neither spoken

nor written) e.g. loud siren or red light at an intersection tells
you something without using words. Other forms include body
language (gestures, facial expressions and other movements of
the body)
 Expressions and other gestures can communicate emotions or
temperatures such as aggression, fear, shyness, arrogance, job
and anger.
 Electronic Media- (telephone, email , television)
Internal and External
Communication
 Internal communication is information exchange within the
organization. Messages can be exchanged via personal contact,
telephone, e-mail, signals etc. The direction flow of Internal
communication can be vertical, horizontal and diagonal.
 Internal communication helps employees in performing their
work, developing a clear sense of organization mission and
identifying and promptly dealing with potential problems.
Internal and External
Communication
 External communication is the transmission of information between two
organizations. It also occurs between a business and another person in the
exterior to the company.
 These persons can be clients, dealers, customers, government officials or
authorities etc. A customer’s feedback is also external communication. An
organization invests a lot of time and money to improve their image through
external communication.
 Information can be transmitted externally via letters, direct mails,
advertisements, websites etc.
 Importance of External Communication
 It presents a favorable image of an organization.
 It provides information about products and services to customers.
 Advertise the organization.
Direction flow of
Communication
 Information can flow in four directions in an organization: downward, upward,
horizontally, and diagonally. The size, nature, and structure of the organization
dictate which direction most of the information flows
Downward communication (Vertical Communication)
 Is any communication that flows from a manager down the authority hierarchy.
It can be written as well as oral.
 It occurs when company leaders and managers share information with lower-
level employees. Unless requested as part of the message, the senders don’t
usually expect (or particularly want) to get a response
 Downward communication is used to communicate organisational changes,
new goals , directions about a job, coordinate work activities , evaluate and
give feedback to subordinates. When managers assign goals and tasks to
subordinates they are using downward communication. They also use it when
they provide subordinates with job descriptions, inform them of organisational
policies and procedures, etc.
Direction flow of
Communication
 Upward communication (Vertical)
 Is the communication that flows from subordinates to higher-level
managers and also serves the primary function of providing
information about what occurs at lower levels.
 For example, upward communication occurs when workers report to a
supervisor or when team leaders report to a department manager.
Items typically communicated upward include progress reports,
proposals for projects, budget estimates, grievances and complaints,
suggestions for improvements, and schedule concerns.
 This type of information provides management with knowledge about
potential problems as well as suggestions for improvement. Upward
communication keeps manager aware of how employees feel about
their jobs, their co-workers and the organisation in general.
Direction flow of
Communication
 Lateral or Horizontal communication
 Horizontal communication involves the exchange of information across departments
at the same level in an organization (i.e., peer-to-peer communication). E.g. the
production manager and the finance manager working together to cut down
production costs or communications between two employees who report to the same
manager.
 The purpose of most horizontal communication is to request support or coordinate
activities.
 It is one of the most frequently used channels of communication. It is very important
for the smooth functioning of every organisation as it promotes understanding and
coordination between various departments.
 Since an organisation is a system of interrelated parts, management must ensure
that the specialised parts are working together, pulling the organisation in a desired
direction. For example the finance department, marketing and production department
must interact with each other for production of a new product to be a success.
Direction Flow of
Communication
Diagonal communication
 This is cross-functional communication between employees at
different levels of the organization who may not have direct reporting
relationships.
 For instance the finance manager requesting for information on daily
sales estimates from a sales representative, then diagonal
communication has occurred.
 Whenever communication goes from one department to another
department, the sender’s manager should be made part of the loop. A
manager may be put in an embarrassing position and appear
incompetent if he isn’t aware of everything happening in his
department.
 It is used to speed up the flow of information.
Formal and Informal
communication
 Information in the organisation can be transmitted formally or
informally(grapevine)
 Formal communication refers to communication that follows the
official chain of command. it takes place within an organisations
prescribed work arrangements. Formal communications is
required for employees to do their jobs
Formal and Informal
communication
 Informal communication- this kind of communication is not
defined by the organisational structural hierarchy. It occurs when
employees share personal or social messages.
 Informal communication permits employees to satisfy their need
for social interaction and it may improve organisational
performance by creating an alternative, frequent faster channels
of communication.
 An example of an informal type of communication is called
grapevine communication
Informal communication
(grapevine communication)
 “Good news travels fast, bad news travels faster, and
embarrassing news travels at warp speed”.
 When the formal channels fail or do not work properly and some
over-smart people spread rumors, false and irresponsible
statement or half-truths in all the directions. It is called grapevine
communication
 Grapevine communication is a complex network of informal
communication that does not follow official channels. It has the
ability to spread information very rapidly especially rumours and
gossip that affect morale and create conflict.
 To prevent grapevine communication, management must ensure
that communication is open and timely.
Barriers to Communication

 A number of barriers can retard or distort effective communication.

The most important ones are highlighted below.
 Filtering refers to a sender’s purposely manipulating information
so the receiver will see it more favorably.
 A manager who tells his boss what he feels the boss wants to hear
is filtering information. This barrier is more common in upward type
of communication. The more vertical levels in the organization’s
hierarchy, the more opportunities there are for filtering.
 Factors such as fear of conveying bad news and the desire to
please the boss often lead employees to tell their superiors what
they think they want to hear, thus distorting upward
communications.
Barriers to Communication

 Selective Perception; Different people perceive the same things

differently. This barrier occurs when the receivers in the communication
process selectively see and hear based on their needs, motivations,
experience, background, and other personal characteristics.
 Information Overload
 Individuals have a finite capacity for processing data. When the
information we have to work with exceeds our processing capacity, the
result is information overload.
 When individuals have more information than they can sort and use;
they tend to select, ignore, pass over, or forget. Or they may put off
further processing until the overload situation ends.
 In any case, lost information and less effective communication results,
making it all the more important to deal well with overload.
Barriers to Communication

 Emotions
 You may interpret the same message differently when you’re
angry or distraught than when you’re happy.
 For example, individuals in positive moods are more confident
about their opinions after reading a persuasive message, so well-
crafted arguments have stronger impacts on their opinions.
 People in negative moods are more likely to scrutinize messages
in greater detail, whereas those in positive moods tend to accept
communications at face value. Extreme emotions such as
jubilation or depression are most likely to hinder effective
communication
Barriers to Communication

 Language
 Effective communication demands mutual understanding of
words and symbols used in the process.
 Even when we’re communicating in the same language, words
mean different things to different people. People speaking the
same language can have difficulty understanding each other if
they are from different generations or from different regions of
the same country.
 Using slang or jargon can frustrate communication and
negotiation efforts.
 Age and context are two of the biggest factors that influence
such differences.
Barriers to Communication

 Other barriers include;

 Conflicting or inconsistent signals
 Credibility about the subject Status
 Reluctance to communicate
 Poor listening skills Noise
 Predispositions about the subject
Improving Communication in
Organisations
 Reduce Noise - Noise is a primary barrier to effective
organizational communication. A common form of noise is the
rumor grapevine, an informal system of communication that
coexists with the formal system.
 The grapevine usually transmits information faster than official
channels do. Because the accuracy of this information often is
quite low, however, the grapevine can distort organizational
communication.
 Management can reduce the effects of the distortion by using the
grapevine as an additional channel for disseminating information
and by constantly monitoring it for accuracy.
Improving Communication in
Organisations
 Clarify your ideas before communicating - analyse the problem to
clarify it in your mind before sending a message. Communication often
is ineffective because the message is inadequately planned. Part of
good message planning is considering the goals and attitudes of those
who will receive the message.
 Examine the true purpose of the communication - before you send a
message, ask yourself what you really want to accomplish with it.
Decide whether you want to obtain information, convey a decision, or
persuade someone to take action.
 Maintain a two way communication
 Consider the setting in which the communication will take place – you
convey meaning and intent by more than words alone. Trying to
communicate with a person in another location is more difficult than
doing so face-to-face.
Improving Communication in
Organisations
 Be mindful of the nonverbal messages you send – tone of voice,
facial expression, eye contact, personal appearance, and physical
surroundings all influence the communication process. The
receiver considers both the words and the nonverbal cues that
make up your message.
 Follow up the communication - your best efforts at
communication can be wasted unless you succeed in getting
your message from the listener’s point of view.
 Be sure your actions support your communication - the most
effective communication is not in what you say but in what you
do. Actions speak louder than words.
END