Business communication hand out
PART ONE
CHAPTER ONE
OVERVIEW OF COMMUNICATION
Communication is vital to every individual group and organization in their day to
activities communication is crucial particularly to those who deal with people
(managers).
It is the lifeblood of every business. Information must be conveyed, received, understood,
and acted upon in a proper manner. When there is a breakdown in this process,
organizational efficiency suffers. Most organizations depend on communication to
accomplish their objectives.
When people in business and professions are asked to define communication, they often
respond by saying something like, “Communication is the process of transferring
thoughts and ideas from one person to another.” This definition sounds good from the
surface; it includes the idea of communicating our idea and thoughts to others, which is a
necessary occurrence in business. However, the words transferring and from one person
to another inaccurately imply that communication is like pouring liquid from a jar to a
glass. In other words, the definition implies a simple one-way action where person A
takes knowledge from her/his head and simply pours (transfers) it into the head of person
B. Obviously, communication is not that simple. Person B may refuse to accept A’s ideas
and may wish to present her/his own ideas. Or B may completely misinterpret A’s
message. As one communication scholar notes, “Communication does not consist of the
transmission of meaning. Meanings are not transferable. Only messages are transferable,
and meanings are not in the message, they are in the message-user.”
Communications is important for proper functioning of an organization b\c organization
is a group of people associated for business, politics, religious or any other purpose to
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exchange information, ideas, plans and proposal to coordinate and work together towards
common goals. Generally effective communication is the life blood of every organization
and a key success in business career.
For an idea to become reality there must be a plan, and once a plan is developed, it must
be communicated to others who are to be involved in the implementation of the plan.
Communication is also required if results are to be evaluated in terms of a given plan. In
the absence of communication:

No human relationship can be maintained

No organization can achieve its objectives

No activities are coordinated, and

No decisions are reached
Thus communication is the process of transferring meaningful and understandable
introduction message from the sender to the receiver for solving the above problem.
1.1. Definition, nature and development of communication
A. Definition of communication
Communication has been defined differently by different scholars at different points of
time. Some of the definitions include:

Communication is the sum of the entire activities one person/organization does to
create understanding in the mind of another. It includes systematic and continuous
process telling listing and understanding. (Avon).

Communication is an exchange of facts, ideas opinions or emotions by two or more
people/organization. It is essentially a bridge, in a sense that a person can safely
understand and pass the river of misunderstanding that separates people through
communication .(Newman)

Communication: is an intercourse by words, letters, symbols or messages and is a
way that the organization member shares meaning and understanding with other
person.

“Communication occurs when an exchange of messages result in shared
meaning.”………–(Bovee & Thill)
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
“Communication is a two way process of exchanging ideas or information between
human beings.” ( Murphy & Peck )

“Communication is the process of conveying messages (facts, ideas, attitudes, &
opinions) from one person to another so that they are understood.” ( M.W. Cumming)

“Communication is the process of people sharing thoughts, ideas, & feelings with
each other in commonly understandable ways.” (Hamilton & Parker)
From the above definitions, you might notice that all of them share something in
common. All of the definitions stress that there should at least be two people for
communication to occur & there should also be some kind of message that is intended to
be transmitted from one party to another. And, when people communicate, they express
their ideas & feelings in a way that is understandable to each other. They share
information with each other.
To sum up the word communication comes from a Latin word “communis” which
means sharing commonly: Therefore we can say that communication is the process
through which information and human effect and ideas are exchanges with others using
symbols (words, signs, Pictures and sound which stands for ideas).
B. Nature of Communication
When do we say that communication exists?
There are many ways of communicating and many times what we hear is not what the
other person said, and consequently, what we say frequently can be interpreted in an
entirely different manner by the listener. Generally, communication is said to exist when:
 There is a person (sender or transmitter) desirous of passing on some information.
 There is another person (receiver) to whom the information is to be passed on.
 The receiver partly or wholly understands the message passed on to her/him.
 The receiver responds to the message; i.e. there is some kind of feedback.
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Communication cannot exist in the absence of any of these four components. It is said to
exist when there are at least two parties and there is a message (either oral or written) that
is intended to be communicated. Communication further requires that the receiver of the
message understands it and conform this by nodding or by giving some kind of gesture or
by verbally responding.
For example, let’s say that your professor is writing the answer to a complex
mathematical problem on the chalkboard, but offers neither a verbal explanation for how
he arrived at the answer nor the opportunity for questions. In this instance, the professor
has sent a message (via chalkboard); however, the chances are very good that many
students do not fully understand what the message means. Thus, communication has not
taken place. Therefore, communication is a process of ‘sharing’ rather than simply
sending information.
C. Development of Business Communication
In the past so many years, office technology has improved, and with it has come an array
of developments that make business communication easier, faster, and less costly than
before. Office technology permits information to be produced quickly and easily. For
example, a typist using personal computer as a word processor can produce in one hour a
greater number of typed paged with fewer errors than a typist working with a standard
electric typewriter. Moreover, if changes have to be made, the computer-generated pages
can be modified by adding, deleting, or rearranging material without having to retype
everything. Information analysis & data retrieval have been made simpler & faster
through modern office technology. Hence, technology plays a crucial role in the
operation of today’s’ modern offices.
Technology can help us reduce the time spent creating various businesses documents, as
well as enhance our ability to create professional-looking documents that will get
attention from others. In addition, technology facilitates the nearly instantaneous
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transmission of written and electronic communication using duplicating machines and
electronic mail.
Some of the communication technologies include: Computers, Fax machines, Scanners,
Satellite
networks,
Telephone
(voice
mail,
cellular
phones,
and
pagers),
Telecommunication (electronic mail, video conferencing, and on-line information
services), Copiers and Software.
1.2. Characteristics of communication
Although communication is a complex process to sum it up in brief, there are several
characteristics, shared by all communication which enables to understand the concept of
communication. Some of the important characteristics of communication are:-
A. Commutation is a process:
communication is not discrete/ static, it is a process that exists and changes overtime, to
that it is difficult to study and analyze communication or we can study and materials that
remains unchanged for a period or time since communication is a dynamic process,
studding it taffies servitor observation of many things, occurring all at the same time or
well as over a period of time. It involves an interaction between and among people. In
there complex interaction of process involved in communication makers it difficult to
analyze.
B. Communication is symbolic:
Here we are referring to the nature of the message than the process of communication
(symbols it ands for something, they may be objects, written sign, images and sounds).
The most important and frequently used symbols are linguistics (Written or oral). But
also there are other communication symbols like body language, facial expression,
postures.
C. Communication is contextual:
Individuals have specialized language that we use only with others who share that
specialized vocabulary. Event if the use of several specialized language excludes those
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people that are ignorant of these specialized vocabulary provides contexts in which
specialized exchanges of information can occur. In addition the contextual nature of
communication also takes in to account the different conditions of what is appropriate in
certain situation. Communication is contextual level, etc of the parties involves in
communication
D. Communication is purposive:
Generally speaking communication is done for a purpose. We have a reason for
communications even if we may not be aware of our purpose. A communication with out
purposes is like that of tripe without variation and is a waste of resource. Understanding
that communication is purposive and individuals communicating are motivated by
something in mind helps to explain some of the behavior of the sender and the receiver.
E. Communication is a two way process:
The existence of two parties: namely
 The sender (the one who initiates, originated, and sender the massage)
source of message and
 The receiver (the person to whom the message is transmitted) the
destination of the message makes communication two way process.
1.3 Roles and importance of communication
Roles of communication in an organization
Since managers work with and through other people, all their policies, rules and
procedures and directives must pass through some kind of communication channel to
reach all employees. Therefore, some of the roles that communication plays include:

Developing information and understanding among
workers of the
organization so as to enhance group effort

Enhancing an attitude which is necessary for motivation. Cooperation and job
satisfaction.

Discouraging the spread of misinformation, ambiguity, rumor that are
dissuasive fore organizational performance.

Preparing workers for a change in methods of operation by giving them
necessary information ignorance. So that we can minimize change resistance.
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
Emphasizing and upgrading management labor relation simply by keeping the
communication channel open and accessible.
Importance of communication
We are not studying communication for nothing. The following are some of the major
importance of communication.
A) An aid to managerial performance
 A manager can take appropriate decisions without much difficulty with the help
of communication.
 A manager gets things done by other people through communication is more
transmits
the
objectives
of
the
organization
to
subordinates
through
communication.
Thus communication acts as a tool of management
B) Achieve ting coordination;
In large organization employees are working on the basis of specialization and division of
work, so that there is a need for coordination among these specialized work units and
individuals to achieve the overall organizational
goals. This coordination is achieved
through effective communication. The necessary up ward, down ward and lateral
communication is essential to achieve the required level of coordination needed in the
company.
C) Smoothen organization operation:
Communication helps a worker to know the real situation prevailing in an organization;
subsequently workers perform their activities without any delay, which leads to the
smooth functioning of an organization.
D) Helps in decision making:
Good communication system provides all necessary information, which enables the
manager to take quality decisions in the proper time and these decisions are
communicated to those who are in need of them.
1.4 The Purpose of communication
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Communication always has a purpose. We communicate because we want to make some
one do something or rake action or think, feel in a certain way. Most of our daily
activities need communicating with others. Communicating is a prime importance in the
performance of all of the managerial function.
The main purpose of communication in organization is the general wellbeing of the
Organization. Effective communication is needed at all level to ensure organizational
welfare. In line with the elaborate and complex commercial structure, communication
will serve any of the following purposes.
A. Information
One of the most important objectives of commutation is passing or receiving information
about a particular fact /circumstances. It can be done either though spoken or written
languages. Mangers need complete, accurate, precise and timely information to plan and
organize and to translate the plan in to reality. Every time we communicate something to
others, hear others, read news papers; we are seeking and giving information. So one
purpose of communication is informing or being informed.
B. Advice
Commercial activities in the modern world have becoming extremely complex. Each
individual's activity needs specialized landing which can not be expected from people
working single landed. A business man can not have specialized knowledge of all
branches like finance, taxation, publicity, engineering etc., so that he/she have to seek
expert advice. Advices normally flow horizontally or downward.
C. Counseling
Similar to giving advice except that it is objective and impersonal. A counselor is a man
of greater skill (knowledge on some specific subject and he offers his counsel with out
any personal interest or involvement.
D. Order
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Is authoritative communication; it is a directive to some body to do something, to modify
or alter the course of something he is already doing, or not to do something. The
downward flow of communication (information) is dominated by orders:
Written or Oral,
General or specific,
Mandatory or discretionary,
and procedural or operational
An effective order has the following attributes
1. It must be clear and complete: so that the person who receives the order knows
exactly what to do, how to do and when to do.
2. Its execution should be possible: that is the person who has to implement it has
the materials, tools, equipment, time and ability to implement the order. If any
problem arises the order should specify how the problem can be overcome.
3. Order should be given in a friendly manner to the implementer's so that it will not
face a resistance and reluctant nature from them.
E. Instruction (Education)
Instruction is a particular kind of order in which the subordinates are not ordered to do a
particular job but also given guidance on how to do it.
Example - If account officer asks one of his clerks to prepare a voucher he has issued an
order, but if he shows the clerks how to prepare a voucher and then asks him
to prepare he is giving instruction.
Education is a very conscious process of communication which involves both teaching
and learning and extends over considerably long periods. The main purpose of education
is to widen knowledge all well as to improve skills.
It may be carried at three levels:

Management level

Employee level

Directed to outside public
F. Suggestion
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Are ideas given by lower staff being actually in touch with the actual operation to the
manager. It has great advantage over other meanses (purposes) of communication like
advice or order.

Advice comes from an expert

Order comes from a higher authority

Suggestion comes from lower level people even from employees, customers,
Nowadays, in most companies suggestion boxes are placed at convenient place in the
office or factory to get best ideas from lower level employees.
G. Persuasion
Persuasion is an effort to influence the attitudes, feelings, beliefs or actions based on
those attitudes or beliefs to get what you desire to be done by them. Persuasion is an art.
Example: Advertisement, political campaigns
The following activities are some of the points to make the art persuasion effective:
1. Persuasion needs commotion on the part of the speaker: the speaker should be
genuinely convinced that the alternative course of action suggested by you is in
the interest of the organization as well as in the receivers’ interest. You shouldn’t
try to persuade others from a poorly selfish motive.
2. Don’t impose yourself on the receivers of your communication. Don’t over
whelm the receiver with too many arguments; rather given indirect hints and
subtle suggestions.
3. Bring your self to the level of the receiver: try to discuses the issue from his point
of view and mould your arguments accordingly.
H. Entertainment
All activities performed by a person (company) to create happiness on the mind of the
reviser using different manages like Jokes, Music’s, and Films.
1.5 Significance of Communication
Effective communication is important in a business setting because of the following
reasons:
1. It helps organizations achieve their goals. So important is communication that without
it an organization cannot function. Its activities require human being to interact, react –
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communicate. They exchange information, ideas, plans, order needed supplies, make
decisions, rules, proposals, contracts, agreements. Both within (internal) and outside the
organization (external) communication –oral or written- is its lifeblood. A vital means of
attending successfully to matters of company concern is through effective internal
communication. It helps increase job satisfaction, productivity, safety, and profits as well
as decrease absenteeism, grievances, and turnover. Messages to persons outside the
company can have a far-reaching effect on its reputation and ultimate success.
2. Businesses growth in size: large businesses have a number of branches within a country
or even abroad. For their health and growth, it is extremely important that the central
organization maintains a thorough and up-to-date knowledge of the various activities at
the branch offices, keeps the branch offices well acquainted with the activities at the
center, and maintain some kind of link among the various branches. This calls for
effective and efficient network of communication.
3. Complexity of business activity: business activities have become extremely complex
that different departments handle specialization, planning, production, sales, stores,
advertising, financing, accounts etc. Thus, if these departments do not communicate with
one another as well as with management, there will be no coordination among them.
4. Business Competition: business has become very competitive such that products of
common consumption are available in the market in dozen of brands. All these brands do
not sell equally well. Marketing research has revealed that firms that communicate better
can also sell better.
5. A valuable job requirement: if you can communicate effectively in speaking and
writing, you have an important, highly valued skill. Especially if your career requires
mainly mental rather than manual labor, your progress will be strongly influenced by how
effectively you communicate your knowledge, proposals, and ideas to others who need or
should receive them. Preference for communication skills is found in the job descriptions
listed by numerous companies wishing to employee college graduates. Some of these
requirements could be:
a.
Must be able to communicate with all levels of management
b.
Needs ability to compose effective correspondence
c.
Must have ability to communicate and sell ideas
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d.
Will prepare special analyses, research reports, and proposals
Job and career opportunities in which effective communication is the main responsibility
are available in various areas, such as customer relations, labor relations, marketing,
personnel, public relations, sales, teaching, etc. Also, technical and scientific fields need
editors, producers, researchers, and writers. Communication skills are also important in
local, state, and federal governments. Even when your work is mainly with figures, as in
the accounting profession, the ability to communicate to those who read your financial
reports is essential.
6. An essential for promotion: the requisite for a promotable executive is ‘ability to
communicate.’ The ability to write and speak well becomes increasingly important as you
rise in an organization. Too often those who cannot communicate effectively in either
oral or written communications remain ‘buried’ in lower, dead-end jobs. Members of
management spend 60 to 90 percent of their working days communicating, speaking,
writing and listening. Many surveys and articles have confirmed the statement that
effective communication is essential for success and promotion in business.
As a trainee on a new job, you have opportunities to speak about problems with coworkers and to submit memos, reports and letters that test your ability to communicate
clearly and quickly. A frequent complaint of managers is the inability of college
graduates to make them heard, read or understood. Your messages can reveal how well
you are doing a job, and they help management to evaluate your fitness for a substantial
promotion. For example, imagine that you are one of several highly trained employees in
an organization that requires everyone to submit frequent oral and written reports to
clients or company personnel. If there is an opening for promotion and you each rate
about the same except that you alone can write and speak effectively, then clearly you
have the advantage over the others.
7. A help to meet personal responsibilities: people put things in writing to create a record,
to convey complex data, to make things convenient for the reader, to save money, and to
convey their own messages more effectively. Effective communication- written and
spoken- also helps you to better accomplish various aims in your personal activities. You
will sometimes need to write letters, proposals or reports, or to present your views orally
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as committee chairperson, club officers, etc. In these roles you might communicate with
public officials, business, industrial, or professional people; or personal friends. Whatever
your purpose, you will usually achieve them more effectively when you apply the same
skills that help you communicate effectively in business.
CHAPTER TWO
COMMUNICATION PROCESS MODEL & BARRIERS OF
COMMUNICATION
2.1. The Communication process
Communication is a complex process undertaken to have shared meaning among sender
and receiver having many elements evolved in the communication process. As a process,
before communication is takes place an idea in the form of massage or information is
needed for the purpose of conveying it to the intended receiver. The message in the mind
of the sender is converted to a set of symbol and pass along some channels to the receiver
who translates the message in to a meaning.
Communication involves

Participants (a sender & a receiver)

A message to be sent

A medium to carry the communication signals, and

The environments in which the message is sent and received.
These elements act and interact in the five-step process. Whether you are speaking or
writing, listening or reading, communication is more than a single act. Instead, it is a
chain of events that can be broken into five phases, as:
1. The sender has an idea.
2. The idea becomes a message.
3. The message is transmitted.
4. The receiver gets the message.
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5. The receiver reacts & sends feedback to the sender.
Then the process is repeated until both parties have finished expressing themselves.
Communication is effective only when each step is successful.
Elements of communication process
Basically communication has five major elements as it can be seen from the above figure
these are:
1 - SOURCE /COMMUNICATOR/ SENDER
As the name indicates the sender is the organization or individual who sends /originates,
transmits, initiates/ the message to be communicated such as ideas, needs, feelings or any
piece of information.
Encoding
Source/Sender/
Communicator
Message
Channel of
communication
Feedback
Decoding
Receiver
Figure: Communication Process
Attitudes,
opinions, Perception,
culture, Values,
Educational background and
Internal feeling affects the way a sender processes and acts as stimuli coming outsides
for a person to initiate a message. The actors of communication in an organization may
include- managers,- non managers, departments or the organization itself.
Encoding: - is an internal brain gymnastic made by the sender that involves converting
the idea to be communicated into a set of symbol gesture or some other format of
expression. It was influenced by the previous experience, frame of reference, and
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knowledge.
In order to communicate one has to transform ideas in to a form that some one else can
comprehend, this process is called encoding, and it occurs as one elicit and put together
ides and translates them in to words, pictures, numbers, gestures or any other symbol
that some one else can understand.
An encoding process changes ideas into systematic set if symbol they can express the
idea of the communicator. Encoding involves providing a form in which ideas and
purposes can be expressed as a message using Language, friendlily smile, worried
expression, site and location of an office, kinds of furniture, body language, clothes, etc.
2. THE MESSAGE
Is what
the individual hopes to communicate and its exact form it contains depends to
greater extent on the medium used to carry it. It is the result of the encoding process of
the sender to make the message effective, during encoding; the sender has to take the
receiver in mind.
3. CHANNELS OF COMMUNICATION
Is the manses /tools through which information/ message is transmitted. There are
innumerable channels which one can convert his/her message such as:
- Face to face
- memos
- Telephone call
- policy statement
- Group meetings
- silence …. etc
- Computers
Choosing an appropriate channel of communication is the responsibility of the sender to
make communication effective.
4. RECEIVER (DESTINATION OF THE MESSAGE)/ DECODER
Is the person or organization who receives the message to be communicated by the sender
the receiver of the message is the focus of the communication process. If the receiver
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didn’t understand the message the communication effort will futile thus for
communication process to be completed the message should be decoded by the receiver.
Decoding is the process by which the receiver tries to interpret, understands and
internalizes the essence of the message communicated to him/her. The receiver decodes
the message by methods like listening, reading and watching.
The receiver’s
environment, experience, frame of reference, attitudes, social skills, preconditions and
other variables affect the decoding of the message. Problem of decoding underlines the
importance of taking the receiver in to account when the communicator attempts to
transmit information.
Effective communication requires the communicator:
 To anticipate the receivers decoding capability.
 To know where the receiver is from since effective communication is
receiver oriented not media oriented
6. FEED BACK
It is a message or information provided to the original sender by the original receiver of
the first information. Even if it is not always present, feed back is an important element of
communication. It allows the sender to understand what the receiver responded to the
message.
Example: When you press the switch on a lamp
The light comes on, or the light doesn’t come. Thus in both Aspects you have received
feed back.
Feedback may appear as a sudden raise in sales after an advertisement has been aired.
This determines whether the message was received and clearly understood and the
required action is taken.
Feed back is essential element of the communication process because
 It helps the sender to know how the message was received or
 If it was received at all
 Enables the sender to retransmit or modify the message, if the sender perceives
that it was misinterpreted.
 Leads to a new message (Here, the receiver of the first message becomes a
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sender and the whole process continues since communication is a two way
process).
2.2. Barriers to effective communication
The Communication process operates with lots of problems. Barriers are road blocks that
hinder the communication process adversely. Understanding the barriers of
communication will help in minimizing and avoiding (if not at all possible) these barriers.
The barrier may occur at any stage of communication process such as:
 When the sender selects a material to be communicated
 During the passage of information through its channel
 When the receiver receives the message
Generally there are four categories of barriers for effective communication these are
1) Barriers inside people/us
- are barriers which are inside individuals. It includes
A) Tendency to evaluate - is a human behavior of listening with a primary purpose of
evaluating the speaker by taking prone and cones of the spoken material in
assimilating the spoken content. This results in losing part of concentration only to
focus on finding prone and cones.
B) I approach - too much use of “I” will lead to an ‘I’ syndrome. If the ‘I’ attitude is
changed to “you” attitude communication is going to be relatively simplified.
C) Lack of interest, knowledge or attitude- this happens when a person
 Being bored with the topic being discussed lead to avoid it.
 Toning out may be the result of confusion
 Not knowing something about the subject under discussion, leads to not to attend
it
 Familiarity with material presented in the way that doesn’t catch your attention
D) Difference in perception – this is a way of interpreting situations based on individual’s
personal experience. Since each of us tend to hear what we expect to hear and
interprets what ever s/he read /listen based on their experience, this strongly
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undermines communication.
E) Emotions - the message received at different emotional situations such when the
receiver is angry, frustrated, depressed, and happy or else, emotion will be interpreted
differently.
For a communication to be effective both parties should have rational judgment, but at
times of extreme emotions rational judgment will be replaced by emotional judgment that
may hinder the communication process.
2. External Environment /Noise barriers
It includes any external factor that impedes effective communication. These are
A) Distortions /distractions - Created by Noise, bright colors, sudden moments, noisy
offices which impede communication. Some of the important conditions that create
distortion include:  Telephone ringing
 Customers asking for help
 People hurrying to and fro
B) In appropriate channel - inappropriate channel selection is one of the major barriers of
effective communication. The channels (Medias) of communication will be discussed in
the latter chapters. The selection of channel depends on many factors such as
 Content of the message
 The situation
 Cost of channel
 Immediacy /urgency of message/
 Accessibility of the media
C) Physical appearance - The materials through which the message is transferred will be
judged by appearance.
 Personal appearance
 Letter, report and memo format, writing
D) Poor timing - to make communication effective it should be done at the right place
and
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time. Trying to communicate at inappropriate time for the sender and receiver will
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not bring the desired outcome.
E) Space and distance - where people sit or stand can be an important factor in their
receiving and transmitting message. Some special arrangements facilitate communication
while others impede it. The distance between the sender and receiver also affects their
communication (mostly in face to face conversation.)
F) Organizational structure - it must be designed such that the chain of command and
channel of communication are clearly established. Traceable communication may be
blocked or distorted if the channels are not clear or if they are bottlenecks.
g) Improper or inadequate information or information overload - If the sender sends
improper, inaccurate, too little, or too much information, communication will suffer.
When information overload happen, individuals receiver more information than they are
capable of processing that leads them to be in dilemma for selection of the necessary
information.
H) Disorganization - when a massage is not properly organized the major point become
lost or the receiver become too confused to understand the substance of the message.
Thus the receiver may ask for clarification or additional information because using
disorganized information the receiver doesn’t have the ability to make decision.
3. Interpersonal Barrier/ Barriers b/n people
These are barriers due to the fact that communication is a two way process b/n the sender
and receiver. It includes:
A) Conflicting interest and attitudes - often communication problems occur simple
because

people don’t like each other

Are afraid of each other, or

Have preconception about each other that get in the way of the message.
 Transmission and reception of the message are contingent upon the mental
situation of the sender and receiver. If the interests and attitudes of the receiver
clashes with those of the sender effective communication will be hampered.
B) Difference in status, experience, background - Generally communication b/n people
of equal managerial status will be easier than b/n a superior and subordinate
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 when communication is down ward:

Some mgrs believe that subordinates should not receiver the entire
information concerning particular event, therefore the managers dilute the
message.

Subordinates may be given information that is irrelevant to their needs or
outdated.
 when communication is up ward

Subordinates often dilute message by giving their superiors only partial
information.

Subordinate may also distort event in order to conceal news that may be
unpleasant.
C) Alteration of information /distortion - It means that the content of massage becomes
distorted as it passes from person to person. Everyone perceives and transmits message
differently, as a result when information is passed through several people, the original
message will be inevitably be altered, and of course distortion of message by a third party
may be done intentionally or unintentionally. The stronger the desire of subordinate in
advancement and promotion, the greater the chance of distortion will be.
D) Source credibility - Is the trust and respect, confidence and faith that the receiver has
in the words /actions/ of the one who sends the information (sender). For sure receivers
will attach different degree of credibility for different sources.
Example: Walta information center (WIC) versus British Broadcast (BBC), or
priest versus politicians.
E) Cross- cultural diversity - culture affects almost every aspect of human activities.
Communication as part of human activity is bounded by culture. We should understand
that people from different culture will encode message differently. Different cultures will
have different orientation towards time, personal space and touching, privacy, gender role
etc...The following are some of the problems created due to culture in communication
process:
 Ethnocentrism involves culture of other in relative to our own culture which
may lead to communication problem.
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 More surprisingly the same word may have different meaning in different areas:
Ford company brand 'fiera' implies with an old woman in Spanish.
There fore, in during business oversea we have to take in to account the cultures of the
countries use are going to do business.
F) Poor listening / selective listening - occurs when the receiver has hesitation on the
part of the sender, the receiver takes much of his time in scrutinizing the messages or
tricks that may lead to poor communication. Along with this if the source is assumed to
be inexperienced with no internalized expert Knowledge, receivers may not lend their
attention to the source (sender).
G) Filtering - implies intentionally with holding or deliberately manipulating information
by the sender for two major reasons:

The sender may believe that the receiver didn't need all the information.

The receiver is better if not knowing all aspects of given situation.
Another barrier related to filtering is slanting which is giving a particular bias or slant to
the reality. It is the conscious manipulation of facts in order to distort events.
4) Barrier made by words
How many times you have found your self saying 'What I Mean is ' or 'I thought you
meant,' some times those language problems are trial, but they can be very Sevier. In both
speaking and writing the biggest pitfall awaiting the sender and receiver is language
itself.
These communication problem arise primarily b/c

Language is composed of symbol, word and sound that stand for a certain thing
in our mind. In fact, often a word stands for certain thing in our mind
simultaneously.

More over, not only do most word have more than one meaning (denotation),
but they also have connotation (the associations the word arouse).
A) - Multi meaning word - the very nature that communication is through language
creates communication break dawn due to the fact that a single word may have different
meanings (denotation).

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For example:-the word right implies
not left
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
not wrong (correct)

privilege
B) - Semantic barrier - arises due to different in individual interpretation for words and
symbols. To have effective communication both the sender and receiver should agree on
the meaning of the symbol and words used to transfer information, unfortunately the
same word or symbol may mean entirely different thing for different people. (Language
difference)
C) - group words (slang and Jargon)
Jargon- is a technical terminology used with in a certain specialization areas. The
problem in Jargon is not using jargons - Jargon provides a very precise and efficient way
of commutation if used b/n those who are familiar with the jargon. The problem in using
jargon arises;
- While using the jargon with some one who doesn't understand it.
- While using the effort to impress other and as from of psychical defense.
Slang - is an expression often short lived that identities with a certain specific group of
people.
D) Denotations & Connotations: Many of us have at some time been surprised that a
remark intended as a complement, or joke was interpreted by the receiver as an insult. A
statement intended as a good deed can be distorted into something self-serving. Some of
these communication problems may occur because words have both denotative and
connotative meanings, and the sender has not considered the receiver’s probable
interpretation and reactions.
Denotations: the denotative meaning is the meaning on which most people will probably
agree. It often is the dictionary definition. The word informs the receiver & it names
objects, people, or events without indicating positive or negative qualities. Such words
are car, desk, book, house, water conveys denotative meaning, provided, of course, that
the communicators understand the English language & provided that the receiver has a
similar understanding of the context in which the word is used.
Connotations: in addition to more literal denotative meanings, some words have
connotative meanings that arouse qualitative judgments & personal reactions. The term
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‘meeting room’ is denotative. Director’s lounge, executive suite, boardroom, though they
each denote a meeting place, also has connotative meanings. The word ‘student’ is
denotative; bookworm, scholar, dropout, school dummy, gunner are connotative. Some
words have favorable connotations in some contexts but unfavorable meanings in other
instances. Compare, for example, fat check & fat girl; free enterprise & free (rude, bold)
manners; cheap products & cheap price.
The communicators’ different backgrounds & interests also affect the connotative
meanings for words. On hearing that a particular person is ‘cool’, members of one
generation may take it to mean the person is fun to be with, while members of earlier
generation may believe it means that the individual is unemotional & insensitive.
2.3
solving communication problems
Mere understanding of barriers to effective commutation is not sufficient as the mgmt
saying
"Defining a problem is defining half of your job". “A problem
Defined is half solved “.
The following point includes some important mechanism through which we can
minimize or avoid (if not at all possible) communication barrier so as to make
communication effective.
A) Consider physical appearance - the appearance of the message often determine
how it is received. Make sure that your written communication is error free as
well as neat and easy to read. If you are communicating in person, consider
your own appearance. The way you look is an intrinsic part of your of message.
B) Choose the correct media - Before transmitting message, carefully consider the
best way to send it in person, by telephone, on paper, by computer mail, or by
some other meanses. In some condition your choice may be limited, but in
others, you have to consider both your access and your message before
choosing the channel.
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C) Know your audience - your audience is your most important consideration
which is a vital component of effective communication. To make your
communication effective consider points like:

Who are your listeners /readers

Are they your subordinates, peer or superior

What are their interests and concerns?

What motivates them?

How they will react to your message?
D) Choose your words carefully - Choosing correct words in speaking and
Writing will help to over come numerous problems related to verbal
communication. If you have good sense of whom you are addressing, you will
be better able to choose words that the receivers both understand and response
appropriately.
E) Organize your thoughts – whether you are speaking or writing, organizing
the component of your message must be taken in to account (must include
major
Points). To emphasize a major point in written communication you
may use several approaches: such as

Put the point at the beginning or end of a paragraph.

Use a short paragraph to attract the reader attention.

Use heading and subheadings.
F) Focus topic sentence- is related to organization. To avoid information
overload, isolate one major point and highlight the important supporting
data in your presentation.
G) Selecting communication channel – to avoid serial distortion, avoid letting
your message pass through many people.
H) Encourage feedback – one way communication is often ineffective b/c the
sender cannot fell whether the communication goals have been achieved or
not. To facilitate effective communication, set up two way communication
channels, make it easy for receiver to respond to your message, and then pay
attention to feedback and response as necessary.
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CHAPTER THREE
TYPES OF COMMUNICATION IN ORGANIZATIONS
Organizations as a group individuals working together towards common goal are in
frequent interaction with in subunits, among units, outside the organization, following the
established channel of communication will be done either for the organization purpose or
individual or group interest. The continuous interaction of units, individuals and groups
in organizations makes identifying the kinds of communication in organizations difficult
in real world. However for sake of understanding communication in organization context
can be classified as internal versus external, formal or informal.
Communication is the life blood of organizations. No business can develop in the absence
of effective internal and external communication. Besides communication skill of the
employees is given high weight at their time appointments as well as promotion.
3.1 Internal and External Communication
Internal Communication: Internal communication involves transmission of information
within the organization. It is a communication among/between different functional work
units of an organization and among/between the different branches if any. Effective
internal communication is important for the following reasons:
i) Business has grown in size
Large business organization has a number of branches with in a country or abroad. Some
of the multinational companies are no smaller than huge empires. The head quarter of a
large business house is it’s never center. For the health and expansion, it is extremely
important that the head quarter maintains a through and up to date knowledge of the
various activities at the branch offices, keeps the branch offices well informed with the
activities at the head quarter, and some kind of link among the various branches. This
again demands for effective and efficient network of communication.
ii)
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Business activity has become extremely complex
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Being an age of specialization, planning, production, sales, stores, advertising, financing,
etc.., are handled by different people and departments. If these departments don’t
communicate with one another and with the management, there will no be coordination
among them. These may result in awkward and embarrassing situations for the
management.
iii)
Effective communication promotes a sprit of understanding and
cooperation.
If effective communication between the management and the employers exists, it helps to
develop an atmosphere of mutual trust and confidence. The employees know exactly
what is expected out of them. The management is aware of the potentialities and
limitations of employees and knows how to exploit those with nice potential, and
improve upgrade those who have limitations. Therefore mutual understanding and trust is
extremely important for both parties.
Among various ways of communicating with companies are

Memos

Reports

Meetings

Face-to-face discussions

Teleconference

Video conference

Notices, etc.
Internal communication is a vital means of attending to matters of company concern.
External Communication: External communication is communication with people
outside an organization. It is the organization’s means of establishing contact with the
outside world. It is a communication between and/among organization and any stack
holder in the external environment of the organization such as with the government
agencies and departments, distributors, retailers, competitors, suppliers, customers, etc..
External communication could include:

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Business letters
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
Press releases

Advertisements

Leaflets

Invitations

Telegrams

Proposals, etc.
Messages to persons outside the organization can have a far reaching effect on its
reputation and ultimate success. The right letter, proposal, or personal conversation can
win back a disgruntled customer, crate a desire for a firm’s product or service, help
negotiate a profitable sale, encourage collections, motivate performance, in general create
goodwill.
3.2 Formal Flow of Communication
The formal communication is communication that flows along the organization’s lines of
authority. Formal channels of communication are intentionally defined and designed by
the organization. They represent the flow of communication within the formal
organizational structure. Typically, communication flows in four separate directions

Downward

Upward

Horizontal and

Diagonal.
3.2.1 Downward Communication
Communication that involves a message exchange between two or more levels of the
organizational hierarchy is called vertical communication. It can involve a manager and
a subordinate or can involve several layers of the hierarchy. It can flow in a downward or
an upward direction.
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Formal messages that flow from managers and supervisors to subordinates are called
downward communication. Usually, this type of communication involves

Job directions

Assignment of tasks and responsibilities

Performance feedback

Certain information concerning the organization’s strategies and goals.

Speeches

Policy and procedure manuals

Employee handbooks

Company leaflets

Briefings on the organization’s mission and strategies

Staff meetings and

Job descriptions are all examples of downward communication.
Most downward communication involves information in one of five categories:
 Job instructions: related to specific tasks: “Before pushing lever # 3, make sure that
both levers 1 and 2 are securely locked into position”.
 Job rationales: explaining the relationship between a task and other organizational
tasks: “if any of these panels are more than 1/1000 of an inch over or undersized, the
assembly crews will not be able to get the perfect fit needed and will return the panels
to us. And, as you know, once a panel has been formed, it cannot be resized, so any
returned panel ends up as scrap.”
 Policy and Procedures: practice of the organization or rules and regulations of the
organization. “All unused sick leaves will be converted into cash bonuses at the end of
every year.”
 Feedback: on employee performance appraisal/individual performance on assigned
tasks: “You did great on the last project, Selam”.
 Motivational appeals: efforts to encourage a sense of mission and dedication to the
goals of the organization. “If everyone will put in a little extra effort, we can become
the number one producer of X components.”
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Downward communication across several levels is prone to considerable distortion. As
much as 80% of top management’s message may be lost by the time the message reaches
five levels below. There are usually three main reasons for the distortion.
 Faulty message transmission may occur because of sender carelessness, poor
communication skills, and the difficulty of encoding a message that will be clearly
understood by individuals at multiple levels.
 Another is that managers tend to overuse one-way communication methods, such as,
memos, manuals, and newsletters, leaving little possibility for immediate feedback
regarding receiver understanding.
 Finally, some managers may intentionally or unintentionally filter communications by
withholding, screening, or manipulating information.
A major problem with managers and downward communication is their assumption that
employees do not need or want to know much about what is going on. Intentional
filtering typically occurs when a manager seeks to enhance personal power over
subordinates by tightly controlling organizational information.
3.2.2 Upward Communication
Formal messages also flow upward from subordinates to supervisors and managers.
Without upward communication, management would never know how their downward
messages were received and interpreted by the employees and would miss out on
valuable ideas; workers would not get the chance to be part of the company. To solve
problems and make intelligent decisions, management must learn what’s going on in the
organization. Because they can not be everywhere at once, executive depend on lowerlevel employees to furnish them with accurate, timely reports on problems, emerging
trends, opportunities or improvements, etc.
The following types of messages are valuable when communicated upward.
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1. What subordinates are doing: highlights of their work, achievements, progress, and
future job plan.
2. Outlines of unsolved work problems: on which subordinates now need aid or may
require help in the future.
3. Suggestions or ideas for improvements: within departments or in the organization
as a whole.
4. How subordinates think and feel: about their jobs, their associates, and their
organization.
Forms of upward communication include one-to-one meetings with one’s immediate
supervisor, staff meetings with supervisors, suggestion systems, grievance procedures,
employee attitude survey, progress reports, inquiries, etc.
The distortion that characterizes downward communication also plagues upward
communication. First, individuals are likely to be extremely selective about the
information that they transmit upward. Information favorable to the sender is very likely
to be sent upward. In contrast, information that is unfavorable to the sender will probably
be blocked, even when it is important to the organization. Subordinates are more likely to
filter information when they do not trust their superiors, perceive that their superiors have
considerable influence over their careers, and have a strong desire to move up. Second,
managers do not expend sufficient effort in encouraging upward communication.
Managers often behave in manners that exacerbate the situation, usually through
punishing the bearer of bad news or allowing themselves to be isolated from subordinates
at lower levels.
3.2.3 Horizontal Communication
Horizontal communication involves exchange of information among individuals on the
same organizational level, such as across or within departments. Thus, it generally
involves colleagues and peers. Horizontal information informs, supports, and coordinates
activities both interdepartmentally and interdepartmentally. Considerable horizontal
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communication in organizations stems from staff specialists, in areas such as engineering,
accounting, and human resources management, who provide advice to managers in
various departments. Horizontal communication is especially important in an
organization for the following purposes:
1. To coordinate task when several employees or departments are each working on part
of an important project.
2. To solve problems such as how to reduce waste or how to increase the number of
items assembled each hour.
3. To share information such as an easier way to perform a task or the results of a new
survey.
4. To solve conflicts such as jealousy or disagreements between coworkers.
5. To build rapport: peer support.
Three major factors tend to impede necessary, work-related horizontal communication.

First, rivalry among individuals or work units can influence individuals to hide
information that is potentially damaging to them or that may aid others.

Second, specialization may cause individuals to be concerned mainly about the work
of their own unit and to have little appreciation for the work and communication
needs of others. For example, scientists in R and D unit that is focused on long-term
projects may find it difficult to interrupt their work to help with current customer
problems identified by the sales department.

Third, motivation may be lacking when subordinate horizontal communication is not
encouraged or rewarded.
3.2.4 Diagonal Communication
Some organizational structures employ teams comprised of members from different
functional areas, even different levels of the hierarchy. When these individuals from
different units and organizational level communicate, it is diagonal communication. With
more and more firms reducing the number of management layers and increasing the use
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of self managed work teams, many workers are being required to communicate with
others in different departments and on different levels to solve problems and coordinate
work. For instance, a team might be formed from all functional areas (accounting,
marketing, operations, and human resources) to work on a specific product project to
ensure that all points of view are considered.
3.3 Informal Communication (Grapevine)
A middle manager of a medium-size manufacturing company was surprised when a
fellow employee congratulated her on her promotion. She has received no formal
announcement.
Not all messages flow along the official paths prescribed by the organization’s chain of
command. Many messages, as in the example above, flow along an informal network
commonly called the ‘grapevine’. Informal communication, better known as grapevine, is
communication that takes place without regard to hierarchical or task requirements.
Informal communication channels are not deliberately designed and therefore, are not
abide by the formal organizational hierarchy or chain of command.
One classical study investigated four possible configurations for grapevine chains.

Single-stand chain: communication moves serially from person A to B to C and
so on (each tells one other).

Gossip chain: person A seeks out and tells others (one tells all).

Probability chain: person A spreads the message randomly; as do individuals F
& D (each randomly tells others).

Cluster chain: person A tells selected individuals and then one of these tells
selected others (some tell selected others). The study found that the cluster chain
was the most predominant form, which suggests that individuals who euphonoium
are part of grapevines are likely to be selective about the persons to whom they
relay information and that only some of these persons will in turn pass the
information further.
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Despite the fact that grapevines sometimes create difficulties when they carry gossip and
false rumors, they are a fact of life in organizations, and it is unrealistic for managers to
think that they can eliminate grapevine. The type of information the grapevine carries
depend on the ‘health’ of the organization. If an organization’s managers are fairly open
with employees and send all necessary information trough formal channels, the grapevine
usually caries only personal interest items. However, when the formal communication
channels fail to do the job, the grapevine begins to carry information about the
organization. In other words, the grapevine busies itself with official matters only when
the formal channels of communication fail to deliver, are not understood, or are not
accepted by the people for whom the messages are intended.
Research has found that although some entirely false rumors are spread by the grapevine,
information passed by this means is 75-95% accurate. Informal messages may be more
accurate than the formal ones because status, power and rank differences are temporarily
set aside. Overall, grapevines tend to be fast, and carry large amounts of information.
Managers who listen carefully to the informal communication find it useful source of
information about employees concerns and problems. Some managers actually leak new
ideas or proposals to the grapevine to test worker response. If an idea is greeted with
hostility, they drop it or reverse it; if the idea is received positively, they introduce it into
official channels. The grapevine can also help to disseminate information about
organizational traditions and history.
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