Business Communication
( Channels Of Communication )
Channels of Communication
Types of Communication: Internal and External
Need for Internal Communication
Organize
Decision-making
Motivation
Morale
Reduce labour turnover
Reduce abseentism
Harmony
Channels of Communication
Management can use one or more channels to communicate with his employees and obtain a
feedback.Some experts prefer to use the phrase “lines of communication” instead of channels of
communication.
We have Upward , Downward,Vertical, and horizontal.
Horizontal Communication: Communication between people of equal and comparable status is known
as horizontal communication. In every Organization unimportant and routine matters are dealt with by
the employees without troubling their seniors. Eg. Manager to manager, Departmental head to
departmental head. Communication between trade union leader and manager .
The need for horizontal communication within a organization is very great as without it there will be no
coordination and cooperation among the different units.
Two wrong ideas about Horizontal communication in India:
1. Whenever there is effective horizontal communication the management should not intervene.
2. Attitude of the managers and executives towards this type of communication .They discourage this
type of communication since they feel that the workers might get friendly and unite against the
management.
Eg. British used the divide and rule policy.
Vertical or two way communication.
Management gives directions and sends information downwards and also receives periodic information
from the subordinated about the effectiveness of their directives and their progress in the organization.
Because of this exchange of information vertical communication is also known as two-way
communication.
Downward communication
When orders, directions, instructions and information flow downward from superiors to subordinates it
is known as downward communication.
Why is it necessary? It unites and binds the different levels of authority within the organization and
preserves organizational and communication structure.
If a top executive bypasses the sectional heads and tries to communicate directly with the workers all
the time he is only inviting trouble ,for the sectional heads will lose authority and responsibility and the
result will be indiscipline and dissatisfaction.
Why do we need downward communication?
To give instructions and orders
To inform subordinates about their performance
To give background information about their job
To explain policies and organization structure
To issue warnings and reprimands or to express appreciation.
1
Business Communication
( Channels Of Communication )
When communicating downwards managers should take care to see that:
They are very clear in their mind about order or information that is passed down
That it is passed down to the correct person in the hierarchy
Orders are expressed in clear and lucid words.
That information is not of a confidential or controversial nature such as trade union
loyalty, religion or politics.
Problems of downward communication
Over communication
Under communication
Time consuming
Loss of information
Distortion
Resistance
Vehicles:
– Notice boards, posters , manuals, handbooks.
– Circulars, letters, reports , memos, oral and telephone talks, film shows, group gatherings,
employee meeting and counselling representatives, annual meetings of shareholders.
Upward communication
This communication flows from subordinates to superiors.
Useful:
How is the work of the workers progressing, achievements, failures
Unsolved work problems on which subordinates require help and guidance
Suggestions for improvement within the department anf the company
How workers feel about their jobs, associates, their supervisors and their company.
– Managers prepare a list of items on which they expect their subordinates to provide information
and check periodically, if they have heard from everybody. Management uses several methods
but care should be taken to see that the first line of supervisors is not by passed.
Most commonly used methods of upward communication
Reports
Open Door policy
Group gatherings
Complaints and suggestion boxes
Direct correspondence
Counseling
Using MBWA
Exit Interviews
Grapevine
Upward Communication
Advantages
– Valuable information for decision making
– Improved performance
– Encourages employees to take interest and participate in the work of the organization
– Feedback
Problems:
– Awe and fear of authority
– Unwillingness to admit failure.
– Slanted stories
– Short- circuiting authority
– Inattention to upward communication
2
Business Communication
–
–
( Channels Of Communication )
Anonymous communication
Attitude of superiors.
Formal Communication
Messages are sent along the channels which have been developed by the management. Formal
communication systems are characterized by the importance they give to authority, responsibility and
delegation of duties. In formal communication lines of authority become the lines of communication for
information and messages are passed slowly and formally from managers to officers, officers to clerk
etc.
An organization cannot only function only on the basis of its formal channels and it has been found that
whether management likes it or not informal channels emerge whereever there is a group of men and
women working together.
Informal Channels
Informal channels spring up because of the common interests between people in organizations. These
interests may have something to do with the work and social or outside relationships.
These informal channels are known by the interesting term “ grapevine” and an intelligent management
will not attempt to curb or supress the grapevine but will try to use the grapevine to achieve better
communication with its employees and thereby fulfill its own objectives
Informal Channels
Experience says: Reliable and formalised systems within the organization are often defeated by a
tendency among workers to set up their own informal channels of communication. The wise business
man will therefore decide that if you cannot beat them, you should join them and he would try to use
the grapevine himself.
Types of informal channels
The Grapevine: Dictionary meaning says “ means of secret communication”
It is a kind of vine on which grapes grow.
Grapevine is an informal channel of communication.
Gossip, hearsay, rumours, all of them constitute the grapevine.
Just like the plant grapevine spreads horizontally and rapidly to every part of the organization and it is a
secret communication in the sense that information is supposed to spread without the knowledge of the
authorities.
Grapevine
It is a kind of horizontal communication and it consists of a complex network of informal contacts that
occur all day long on the job,spontaneous channels through which facts , half truths and rumours pass.”
It is possible for such rumours to result upward and downward communication but the general direction
is horizontal as such communication takes place between persons who know and trust each other.
Characteristics of grapevine
The following need to be studied as they may be instrumental in bringing about peace and harmony in
the organization.
The news fed into the grapevine should be fresh and not stale
People are news and people like to talk about other people.’
People are interested in information that concerns their working conditions, salaries or the work itself.
People in close proximity to one another at work are said to be in the same grapevine.’
Managers should never ignore the grapevine.
3
Business Communication
( Channels Of Communication )
It acts as an emotional safety valve so that tension does not build up among workers who resent the
authoritarian attitude of their bosses.
How can a management control grapevine communications that harm
it?
By taking quick, vigorous steps to check false rumours
By making the management’s formal communication lively and efficient
By informing the employees regularly about the organization’s activities through company bulletins or
newspapers.
Cases: Murli
Consensus and Consultation
When there is common agreement of opinion among a group of persons it is known as consensus.
Consensus communication is very necessary at the management level as the management of an
organization has to present the outside public and its own employees with an image of solidarity and
unity.it would not do for the secretary to issue a circular letter to shareholders if the chief accountant
sent another to the shareholders contradicting what the secretary had written. In the same way
employees cannot be given contradicting instructions by two directors.
There are many specialists at the management level and mutual respect is shown by accepting and
supporting the view of the specialist even if one privately disagrees.
Frequent consultations are required at the management level as without these the executives will not
know each other’s point of view and express consensus
Another aspect of the process of mutual respect and mutual consultation is the acceptance of authority
of the chairman or the president unquestioningly.
The demerit of this process is obvious that the consensus process often becomes one of mutual
accommodation.
Advantages
It is very profitable by managements while dealing with thorny issues such as bonus, retrenchment,
service conditions, by consulting the union leaders and worker representatives.
By consulting the workers their sense of participation in the management process is increased.
It helps to build and develop managerial skills among junior officers and subordiantes
It fosters industrial democracy and peace.
It helps to bring unity and harmony in the organization.
Disadvantages
It becomes an exercise of mutual accomodation.
It might give the worker the impression that their supervisors are not able to take decisions on their
own.
It might create a serious problem if subordinates who are accustomed to being consulted are not
consulted on one or two occasions. They are likely to resent the attitude of the management and turn
nasty or cynical.
The need for multiple channels of communication.
An efficient and progressive enterprise uses multiple channels of communication both formal and
informal. It is not advisable to have only one channel of communication since this would result in
bottlenecking and a definite fall in the level of efficiency as a result of poor information circulation.
to meet the need for multiple channels of communication most modern organizations set up a network
of communication channels.
A communication network refers to a particular set of persons or groups within the communication
system who may gather, combine, transmit, or manipulate information.
Three of the better known networks are the wheel network, the circular flow network and the free
network.
4
Business Communication
( Channels Of Communication )
External communication
The external communication of a business organization takes two forms: Outward and Inward.
A business oraganization has to communicate with numerous people and parties that are outside,
namely, customers, banks, government officials, post office, insurance companies, police, municipality,
etc.
The communication takes place in the form of letters, telegrams, phone calls or the company may use
mass media such as newspapers, radio and television. Advertising is the most structured form of
external communication.
Inward communication is said to take place when the organization receives letters, telegrams, phone
calls and visits from outside parties. All these are carefully attended to since they are the feedback that
the company receives to all that it has been doing or saying.
External Communication
Both inward and outward communication are to be handled by the public relations department of the
company.
**************************************************
5