Business Studies | Unit-10 | Communication | Class-12

Class-12 Business Studies Unit-10: Communication Concept of Communication:- Answer: Communication is the transfer of information from one ...

Class-12

Business Studies

Unit-10: Communication

Concept of Communication:-

Answer: Communication is the transfer of information from one person to another person having common interest or objectives. In other words, it is the verbal and nonverbal transfer of meaning and understanding between people in order to influence behavior and achieve outcomes. It is the communication of facts, ideas, suggestions, and other information from one person to another. It is critical to convey a thorough comprehension of the information's topic matter. It is one of the most crucial functions of information. It is one of the most important functions of management.

Communication is a continuous process up to the existence and functioning of the organization. It's the foundation of how an organization works. It has played a significant role in the implementation of managerial functions. Managers provide subordinates with instructions, direction, and suggestions to help them carry out plans and policies.

According to Keith Davis, “communication is the process of passing information and understanding from one person to another."

In business, communication is essential to maintain coordination among the group force and their efforts.

1. Explain the Process of Communication?

Answer: Communication is the process of exchanging information from one person to another to meet common objectives. Some common procedures must be completed by both the sender and the recipient in order for communication to be effective.

In general, the processes need to complete in the communication process are as follows:

• Sender: - The sender is the source of information. He is the one who starts the communication process. He creates a message by using his idea, need, intention, and source to communicate with the receiver. As a result, the sender is the first stage of communication.
• Message: - This is the background step of the process of communication. It is the subject matter of communication which sender wants to convey to the receiver. It may consist of facts, opinions, ideas, request, and suggestion etc. of sender. The delivery of message is the reason of communicating information.
• Message Encoding: - It is the process of giving a form and meaning to the message. It is concerned with the methodical presentation of required information so that the recipient may understand it easily. When a sender expresses a message via words, symbols, gestures, drawings, and other encoding methods are used. It allows the receiver to comprehend and grasp the message.
• Transmission: - It refers to the selection of channel of communication to convey encoded message to the receiver. It connects the sender and recipient of a communication message of common interest. Depending on the efficacy of the medium, several mediums can be employed to transmit the message.
• Receiver: - The receiver is the second person in communication process. He is the one who receives the message, understands it, and responds appropriately. A communication is only complete from a technical standpoint when it is received and comprehended by the receiver.
• Message Decoding: - It is the process of interpreting message by the receiver. It is concerned with understanding the message by the receiver in the similar manner as it is delivered by the sender.  It is essential to get knowledge or the meaning of message as per the intention of the sender.
• Feedback: - It is the final stage of communication process. It determines whether the message has been received and whether the needed action has been taken. When the receiver is able to decode the sender's message, he responds promptly. The communication process is completed when the sender receives feedback.

2. Explain the Importance of Communication?

Answer: Communication is the basis of management function. It is playing important role for smooth functioning of business. The following are some of the importance of sound communication system:-

• Smooth Operation
• Better Planning
• Effective Decision Making
• Improves Direction
• Aids Coordination
• Facilities Control
• Sound Industrial Relations
• Image Building
• Change Management
• Smooth Operation:- Communication is needed at all levels of management. Managerial orders and instructions are issued through communication. Employee feedback is received through communication. Smooth operations of organization required continuous communication.
• Better Planning: - Planning is based on flow of information. Plan implementation requires communication of targets, standards, orders and instructions. Communication facilitates better planning.
• Effective Decision Making: - Communication facilitates effective decision making Information is the starting point for making decisions. Information is used to understand the situation, identify and evaluate alternatives and make a decision. Complex judgments necessitate additional data.
• Improves Direction: - Communication improves direction. Interaction between superiors and subordinates is an important part of directing. Face-to-face contact is used to supervise through overseeing. Two-way communication facilitates leadership influence. Communication is required to motivate employees to achieve higher levels of performance.
• Aids Coordination: - Communication aids coordination. It helps to achieve unity and harmony of efforts. Clear transfer of instructions reduces confusion. It links people together.
• Facilities Control: - Control is facilitates by communication. Establishment of standards, monitoring of performance and corrective action are based on communication.
• Sound Industrial Relations: - Communication develops sound relations between labour and management. It promotes trust and confidence. It facilitates handing of grievances and conflicts. Discipline is maintained.  
•  Image building: - Communication is needed for image building. It aids in the maintenance of positive relationships with consumers, suppliers, the government, labor unions and society. For image building, activities and accomplishments require communication.
• Change Management: - Communication facilitates change management. Changing technology and increasing size require change. Communication reduces resistance to change. Environment adaptation is facilitated by communication.

3. Explain the Principle of Communication?

Answer: For effective exchange of information, it is essential to fulfill some basic principle. Some of the major elements of communication are as follows:-

• Principle of Understanding
• Principle of Objective
• Principle of Attention
• Integrity and Sincerity
• Adequate and Complete Communication
• Principle of Feedback
• Principle of Participation
• Principle of Consistency
• Principle of Timelines
• Strategic Use of Informal Groups
• Principle of Understanding: - Communication must be clear so the receiver can understanding information without any difficulty. The message's language and symbols must be clear and simple. Only when a receiver is likewise expected to grasp the message does he process for a response. A message that is ambiguous and incomplete loses its value in attracting the receiver's attention.
• Principle of Objective: - Communication must meet the objective of the information. When transmitting information, the sender must be explicit about the communication's goal. The goal of communication could be to provide instruction, direction, suggestions, or feedback, among other things.
• Principle of Attention: - One of the principle of communication is to invite the attention of the receiver. Everyone's attitude, sentiment, emotion, and feeling may differ. It is the responsibility of the sender to deliver the message in a nice and understandable manner. Only after gaining an impression from the sender's message does the receiver respond.
• Integrity and Sincerity: - Communication is ever going process in organizational performance. It is the management function's means of operation. Maintaining honesty and sincerity between the sender and recipient regarding the delivery of information is one of the components of communication.
• Adequate and Complete Communication: - The subject matter of communication must be adequate and complete in all respect. The information in the messages must be clear and thorough so that the receiver may grasp them readily. Only after a recipient is able to comprehend the message's subject matter can he respond.
• Principle of Feedback: - Communication must be two-way process. It's a two-way process in which the sender sends the message and the receiver gets it. The sender must be able to effortlessly convey the receiver's response to the message. It enables the sender to adapt his subsequent message in response to the receiver's responses.
•  Principle of Participation:- The participation of sender and receiver is the prerequisite of communication. Two parties are required for meaningful communication: one sends the message and the other receives it. A two-way communication mechanism is required. As a result both the sender and the receiver must be involved in order for communication to be efficient and fruitful.
• Principle of Consistency: - In an organization, communication must be consistent with polices, programs and objectives of the organization. Managers must communicate to subordinates by considering progress and achievement of organizational plans and polices. The consistency in communication helps to maintain better coordination among work groups and their performance.
• Principle of Timelines: - The communication must be done on the right time. It is a must to grasp the opportunity of time. An advance communication may not become fruitful because there is probability of forgetting the message on the part of receiver.
• Strategic Use of Informal Groups: - A constructive and strategic use of informal groups is one of the parts of the principle of communication. This is crucial to ensure and facilitates speedier communication in emergent situation. Informal communication is also helpful to maintain good human relation.

4. Explain the Type/System of Communication?

Answer: In an organization, on the basis of requirement and effectiveness in performance, communication of information can be done in different ways. Generally, the following are the common types of communication system:-

• Horizontal Communication: - It is the flow of information among the employees having equal level of authority. Employees at the same level share ideas, opinions, experiences and expertise via this type of communication system. This type of communication is necessary for employees to communicate information of mutual interest and to foster a sense of teamwork.
• Vertical Communication: - It is the flow of information from superior to subordinates and again from subordinates to superior on the basis of requirement. There are three types of vertical communication:-
• Downward Communication: - The flow is from top to bottom through formal lines of authority. This is the form of communication between superiors and subordinates. They set objectives, give job instructions, explain policies, and provide feedback.
• Upward Communication: - The flow is from top to bottom from subordinates to superior. It provides suggestions, problems and feedback.
• Two-wav Communication: - The flow is from top to bottom and from bottom to top. It is both ways between superior and subordinates.
• Diagonal Communication: - Diagonal communication is the flow of information from one department's superiors to subordinates in another department of the company. For example, when production manager communication information to subordinates of marketing department it is known as diagonal communication. Diagonal

5. Explain the Barriers to Effective Communication?

Answer: Effective communication of information is essential for effective functioning of an organization. However, various circumstances may obstruct the effective flow of information both inside and outside the company.

The following are some of the most prevalent communication roadblocks:-

• Organization: - Organizational system and belief itself creates problems for free flow of information. It makes it difficult to translate information into focused authority, which makes it difficult to fulfill goals. Within the organization, these obstacles are formed by the organizational framework, rules, policies, and beliefs.
• Organizational Policy: - Organizational policy regulated by the management regarding communication system provides overall guidelines to the members to use the defined network. The policy may be in written form or it is understood from the behavior of the top management.
• Organizational Rules and Regulation: - The rules and regulations of the organization regarding transformation of subject matter of information and use of channels also affect free flow of information. The rules restrict the free flow of certain messages and may ignore some important ones among them.
• Lengthy Scalar Chain:- When the scalar chain is lengthy and the management hierarchy is not clearly defined, communication gets unduly delayed. There is a chance that communication will break down in some instances. Superiors and subordinates may be unsure who to contact and how to communicate their concerns.
• One-way Communication System: - In an organization, if the communication system is only one-way-from top level to subordinates there. is the possibility of development of grievances among subordinates. Management does not get feedback about the progress of work and problems in the operating level.
• Lack of Confidence in Subordinates: - Some conservation managers perceive that their subordinates are not skilled and competent to bear responsibility. They believe they lack the skills and expertise to offer advice and counsel on work-related issues. Such a viewpoint may obstruct the free flow of information within the company.
• Physical Barriers: - Internal structure of the organization and layout of machines and equipment creates physical barriers in communication. Brief explanations of these barriers are as follows:-
• Physical Distance: - The location of departments and branches in different geographical and regional distances may breakdown communication flow of an organization. If the organization does not build a suitable communication network, it will be difficult to send the essential information to various places.
• Hierarchy Structure: - Hierarchy structure creates status difference among the members of an organization. On the basis of their power and duty, it divides the members of the organization from the top to the bottom levels. This also disrupts an organization's communication flow.
• Office Design: - Office layout also creates barriers in free and prompt flow of information. If the top level manager sits in a separate closed room it becomes difficult to the subordinates to enter frequently to the manager’s cabin to communicate messages.
• Noise: - Noise from the outside world makes it difficult to understand the message in accordance with the sender's objectives. When the recipient is unable to comprehend the message, he is unable to respond. Therefore, noise also breaks down communication feedback,
• Psychological Barriers: - The barriers are generated due to human perception, lack of skill and negative thinking of top level managers. Psychological barriers are created by top-level managers' human perceptions, incapability, and negative thinking. The following is a quick rundown of these roadblocks:
• Distrust of Communication: - Many subordinates do not trust their superiors' messages because they feel they will change, cancel or modify their own views and thoughts. In such situation, even genuine and honest communication by such superiors is not taken seriously by the subordinates.
• Superiority Complex: - Superiority complex of the higher authority also creates barriers in the free flow of information. Such managers feel themselves superior and would not like to talk and communicate with subordinates thinking that it is below their dignity.
• Individual Perception: - Perception is the process of understanding and interpreting things, events and people. Two people may not have the same perception of any events and thing. Most of the misunderstanding and conflict occur due to perceptual difference.
• Premature Evaluation: - Premature evaluation is concerned with evaluating the subject matter before getting detailed information. Employees at the subordinate level are prone to early communication appraisal. It's possible that supervisors and subordinates will misinterpret one other, resulting in conflict.
• No Attention: - In some situation, people are not paying proper attention for communicating information. It could be due to tension caused by personal problems or an overabundance of new problems. The basic objective of communication may not be met in such a situation.
• Semantic Barriers: - These barriers are created due to use of difficult and insensitive language by the sender. The use of difficult, vague and insensitive language by the sender creates semantic barriers. Brief explanations of these barriers are as follow:
• Harsh Language: - The use of harsh or poor language will emotionally affect the sentiment and ego of the receivers. In such circumstances, recipients may try to resist the senders and may not respond at all. A negative response from an egoistic receiver may be the source of misunderstanding and conflict.
• Vague Language: - The use of complex, multi-meaning word and proverbs creates confusion in the mind of the receiver. He may interpret the communication differently and also response will not meet the objectives of the sender.
• Misleading Translation: - Wrong translation of message received also creates barriers in communication. For instance, middle level managers receive communication from the top level which has to be translated by them in simple language for the use of first line of managers.
• Technical Language: - Some managers use technical terms in communication. These technical phrases can be found in accounting, engineering, economics and production, among other fields. Ordinary receivers are confused by the use of such complex phrases, and as a result, they do not respond to the sender.