Chapter 1 | INTRODUCTION TO BUSINESS

COMMUNICATION

After completing this chapter, you should be able to:

Understand the value of communication in the business world.
Appreciate the role of technology in
shaping business communication.
Appreciate the significance of maintaining lines of communication.

Learn about the barriers to communication and their influence on organizational and personal communication.
Understand the role played by the
internal communications department
in facilitating effective communication.

You can have brilliant

ideas, but if you cant get
them across, your ideas
wont get you anywhere.
Lee Iacocca1

All activities involve some form of communication. Discussions with ones boss and
co-workers, conversations with peers, interviews, meetings, presentations, memos, letters,
faxes, and telephone exchanges are all forms of communication that take place in organizations. Regardless of ones official designation, if one is managing or even interacting with
people, then communication is an essential part of ones job.
Effective communication requires competence in five major areas: listening, speaking,
reading, writing, and non-verbal communication. Writing and speaking are transmission
skills (sender-related skills), and listening and reading are reception skills (receiver-related
skills). Skill in non-verbal communication is the fifth dimension of communication. Effective communicators are able to use non-verbal messages for a broader impact.
A managers responsibility is to coordinate, train, control, and review the performance
of others and to oversee results. In the process of doing so, they interact with others in
meetings, interviews, and interpersonal exchanges, as well as via reports, business proposals,
and presentations. Managers have to learn to manage their own communication (personal
communication), their communication with others (interpersonal communication), and
their communication within an organizational context (group communication) to achieve
the desired results.
Five factors have contributed to the growing importance of effective interpersonal communication at the workplace:
Technology: E-mail, voice mail, text messages, and online chats are some of the means
through which technology has pervaded our lives. Technology has affected the workplace to such an extent that face-to-face communication has been sharply declining over
the years. The demands of technology have made it imperative that communication
be quicker and easier to understand. This means that the language has to be simpler,
sentences shorter, and paragraphs coherent and concise. It also becomes imperative to
convey emotions and sensitivity even when messages are short and crisp. This requires
effective communication.
Diversity: Organizations are employing more diverse people than ever before. Differently abled employees as well as employees belonging to different cultures mingle and
work together. Effective communication at the workplace must therefore employ both
sensitivity and tact.

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Dispersal and decentralization: Most global organizations are geographically dispersed

today, in order to better manage the scale of operations and achieve greater efficiency.
This places new demands on ones communication skills, since the traditional top-down
communication is ineffective in such organizational setups. When communication is
not centralized, organizations must develop a comprehensive corporate communication
strategy.
Time constraints: Executives are increasingly pressed for time. With time as a premium,
communication needs to be more crisp, focused, and precise. This requires excellent
analytical skills and the ability to express oneself clearly and succinctly.
Legal liability: As organizations grow more professional, legal issues need to be kept in
mind. The written or spoken word is susceptible to misinterpretation. Messages must
therefore be carefully crafted to carry home the point without harming, defaming, or
maligning the reputation of the recipient.

EFFECTIVE COMMUNICATION
Effective communication is essential for the survival and progress of a business concern.
Managers use effective communication skills to get work done. This includes crafting meaningful and persuasive messages and business correspondence and using new media to get
messages across.
Communication is effective when it produces the desired action in the reader or audience. Effective communication means the message is understood and acted upon, and not
merely sent to the recipient. The ability to communicate effectively is essential for a business
executive. As Lee Iacocca pointed out in the opening quote of this chapter, a person may be
immensely knowledgeable or skilled, but if their ideas are not communicated properly, those
ideas are as good as absent.
Successful communicators build immense goodwill. They have a positive impact on the
stakeholders within the organization, including employees, supervisors, seniors, customers, suppliers, and associates. Effective communicators also build goodwill for the company
they represent. Successful communicators are also good planners and possess the skills to
transfer their knowledge and ideas to the people whom they work with at all levels of the
organization.
Successful communication is the foundation of a cordial and pleasant working relationship between workers and the management, between subordinates and supervisors, and
between customers and suppliers. Efficient internal and external communication policies
result in cordial relations and willing cooperation among employees.
Ineffective communication systems, by the same logic, result in mismanagement. They
can destroy trust and engender ill will, depending on the context. A poorly worded message
may result in a communication breakdown.On the other hand, good communication contributes to better service, removes misunderstandings and doubts, builds goodwill, promotes
the business, and earns favourable references.
When a group of industrial engineers were asked in a study in 1990 how they might
improve productivity, communication concerns drew the strongest responses. More than
88per cent of the engineers surveyed stated that the lack of communication and cooperation
among different components of a business leads to reduced productivity.2
CEOs have also recognized the importance of communication. A study by A. Foster
Higgins and Company, an employee-benefit consulting firm, found that 97 per cent of
the CEOs surveyed believed that communicating with employees positively affects job
satisfaction. Furthermore, the survey found that 79 per cent think that communication benefits the bottom line; but surprisingly, only 22 per cent communicate with employees weekly
or more frequently.3

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Communication
Bytes 1.1

The advisory firm Corporate Executive Board (CEB) conducted a survey that revealed that, in order to retain
talented people, a company should direct its employees towards the right goals through proper communication. Just 21 per cent of the surveyed employees were found to be completely aware of, and working
towards, the companys goals. Poor communication and an incompetent manager might be the reason
behind this. If the manager-led approach doesnt work, then the Town Hall approach, in which the senior
management engages directly in a dialogue with employees, might be successful. The survey also revealed
that employees who were more engaged in the process of job design were likely to be more satisfied with
their jobs.
A major Indian IT company recently caught an employee in the finance department embezzling funds.
In order to avoid such cases, it is always important to improve employee confidence in the organization. The top managerial rung should be consistent in behaving ethically and dealing decisively with
misconduct. It is also important for the management to recognize the emotional toll that recession takes
on employees and to ensure that communication regarding finances is always frank and focused on
employee concerns.
Source: Adapted from Mahima Puri, High Performers Head for Exit During Economic Recovery, The Economic Times (March
15, 2010), available at: http://economictimes.indiatimes.com/news/news-by-industry/jobs/High-performers-head-for-exitduring-economic-recovery/articleshow/5683778.cms, accessed on January 4, 2011.

GOALS OF COMMUNICATION
Organizational communication is purposeful. There are three objectives to such
communication:

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Good communication can only be in proper English.

Good communication requires clarity of message, irrespective

of the language used.

Communication occurs when the message is sent.

Communication occurs when the message is received.

Communication is a natural process.

Communication is an acquired/learnt process.

One cannot change ones basic style of communication.

Communication can always be improved, depending on the

feedback one gets or takes.

Good communicators are excellent orators.

Good communicators speak and listen equally well.

Communication is about maintaining relationships within an

organization.

Communication is also about getting a task done in the

minimum possible time and within a reasonable cost.

Communication is abstract.

Communication can be measured.

COUNTERPOINT

POINT

To inform: When the objective is to inform, the speaker is merely elucidating facts,
instructions, rules, guidelines, explanations, and examples.
To persuade: When the intention is to persuade, the speaker aims to change both perception and mindset. The communication is intended to bring about a change in the
target, from the current to a desired state, through a series of planned statements.
To mobilize: When the intention is to mobilize the recipient of the message, the
speaker focuses on an action the target should take. Communication is considered
complete when the target has received the message and understood it, and agrees to
act upon it.

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ONE-WAY AND TWO-WAY COMMUNICATION

Communication may be considered one-way when no reply is expected or desired. For
example, a public notice outside a room stating Trespassers prohibited is a command or
order that does not require a response. In organizations, most communications are two-way,
with some feedback or response desired from the receiver.
If an official response were desired to a sign prohibiting entry to a particular location, a different means of communication would have to be used. Instead of putting up
a notice, a memorandum or brief e-mail message would have to be sent to the heads of
all departments informing them that entry was prohibited to that particular room. The
sender could ask for the message to be acknowledged or for the heads of the departments
to report what action they were taking to put the order into effect. If the sender wanted
to make the message more persuasive, a reason for the request could be givenfor example, the need to preserve security in a sensitive zone.

DIRECTIONS OF COMMUNICATION
Within any organization, the characteristics of a particular piece of communication vary
based on whether the message is going vertically (top-down or bottom-up) or sideways. Vertical communication involves movement of a message from superiors to subordinates and
vice versa. Horizontal or sideways communication involves movement of a message between
employees of equal rank. This is illustrated in Exhibit 1.1.
The main uses of vertical downwards communications are:
To give orders or instructions
To provide or ask for information
The main uses of vertical upwards communication are:
To describe the results of actions
To provide information that has been requested
To make requests or appeals
The main uses of horizontal, or sideways, communication are:

To keep equals informed of actions taken or results achieved

To seek the counsel or opinion of peers
To discuss problems
To chat informally

CHANNELS OF COMMUNICATION
There are three main channels of communication:
Spoken: This channel includes meetings, presentations, oral instructions, chats, discussions, and so on.
Exhibit 1.1
Directions of Organizational
Communication

Top-down

Bottom-up

Sideways

Circulars

E-mails

E-mails

Newsletters

Proposals

Chat

Memos

Applications

Intranet communications

E-mails
Meeting agendas

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Introduction to Business Communication

Written: The written form of communication includes bulletin board notices, circulars,
letters, memoranda, reports, proposals, and notes.
Electronic: This method includes e-mail, instant messaging, video conferencing, phone
messages, voice mails, and blogs.
Visual aids such as charts, graphs, diagrams, photographs, and other illustrations are often
used to support messages. They summarize information and present it in a striking manner.

METHODS OF COMMUNICATION
A variety of methods are used in each of the three channels. Some methods are used mainly
for internal communications, while others are used mainly for external communications.
Meetings: Face-to-face communication offers opportunity for discussion and immediate
feedback. The sender and receiver can catch the cues and clues that they receive from
each other and modify the message according to this immediate feedback. But face-toface meetings are sometimes costly to arrange in terms of time and money. Essentially
designated as communicative events, meetings involve the framing and coding of the
agenda, determination of participation criteria, channel-selection, and identification of
the norms of speaking and interaction.
Presentations: Managers, often accompanied by members of their staff, use presentations
to explain a project or plan to colleagues and persuade them to accept the presenters
point of view. Visual aids such as transparencies projected onto a screen are often used
to illustrate points. Presentations are also given externally to clients or potential clients.
For example, an advertising agency might make a presentation of its advertisement
campaign. Presentations allow a large amount of complex information to be communicated to a large number of people at the same time. They also provide opportunities for
feedback and discussion.
Written Messages: Formal business communication is written. This allows for a permanent record to be created and used for later reference. Written communication results
in delayed feedback, however, as it usually takes time for messages to reach their targets.
Public notices on bulletin boards: Public notices on bulletin boards are easy and costeffective methods to communicate the same information to a large number of people.
However, there is no way to ensure that notices are read and registered; even if they are
read, they might be ignored.
Memoranda: A memorandum or memo is a top-down form of written internal correspondence. Nowadays, memos are sent through e-mail and are also called e-memos.
Memoranda are still one of the main means of communication within a business. Used
to disseminate information, they are useful for making arrangements or requests and
sending confirmations.
Reports: Reports are widely used in business. They are the written equivalent of presentations. Visual aids such as charts and photographs are often used to illustrate reports.
There is generally a standard format for a report. Most reports include the name of
the author(s), a title, a brief introduction, headings or subheadings for each section, a
conclusion, and a list of recommendations.
Staff bulletins or magazines: Many big firms publish bulletins or largeroften richly
illustratedmagazines to give employees information about the company, to make them
feel they are part of a team, and to increase their morale.
Electronic messages: In this day and age of electronic communication, information has
to be disseminated quickly, and electronic methods provide the means to do just that.
Economical and efficient, they allow for speedy transmission of information. Feedback is
usually quick, and messages are nearly always recorded. However, electronic systems are
not easy to install. And in order to avoid crashes, high levels of maintenance are required.

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Public notices via bulletin boards are easy and cost-effective methods to communicate the same information to a large number of people.

Telephone conversations: One of the earliest and most widely prevalent means of
communication, telephones are used for both internal and external exchanges. Mobile
telecommunication using Short Message Service (SMS) is now in vogue.
Communication through computers: The personal computer (PC), which processes
data at enormous speed, has revolutionized communication as well as many other
aspects of business. By using different kinds of software, PCs can perform a variety of
tasks, including word processing for letters and documents, storing information on a
database, and making financial calculations using a spreadsheet.
Communication through local area networks: Firms can connect all computers in the
same building to form a local area network (LAN). Linked computers can communicate
with each other and also share common facilities, such as printers. The PCs are all linked
to a more powerful computer or server, which stores a vast amount of information and
can send relevant parts of a business plan to computers in different departments. A LAN
makes it easier for managers to access information from other departments and also
monitor the work within their own department. By using a modem, messages can be
sent along telephone lines. This enables the computer to become part of a wide area network (WAN), which links it to other computers anywhere in the world.
Video conferences: Video conferences are online communication tools that facilitate interaction between two or three geographically dispersed units of a global firm. Communication
is synchronous and the speaker is able to see and interact with the people at the other end.
Fax: A fax or facsimile machine can send an exact copy of a document to another fax machine
anywhere in the world. The sender places the document in a fax machine, dials the fax number of the recipient, and the fax machine at the other end prints a copy of the document automatically. Letters, plans, diagrams, and drawings can all be transmitted in this way.

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Introduction to Business Communication

E-mail: The Internet provides electronic mail or e-mail service to users all over the
world, and is much quicker and cheaper than the traditional postal service. The service
provider stores the message in an electronic mailbox until the receiver views it.
Exhibit 1.2 discusses the various ways in which people might communicate within an
organization.

LINES OF COMMUNICATION
The line of communication proceeds in two directions and moves back and forth. It is a
systematic means of keeping in touch with a business partner. Frequently, people assume that
communication evolves on its own, but this is not the case. This is especially true in cases
of international negotiations, where contact and correspondence are critically important to
understanding the other sides needs and viewpoints.
Maintaining an open line of communication is important for two main reasons. First, it
affects the degree and quality of the relationship that has been created with the partner during negotiations. Second, it creates a positive impression on the partner regarding the seriousness of ones intent and helps to build a strong, long-term business relationship.

COMMUNICATION NETWORKS
Communication channels are linked in a number of ways to form communication networks. A communication network demarcates the positions of the senders and recipients
of information in a communication loop. It affects the quality of team decisions as well as
team dynamics. The questions that need to be resolved while setting up a communication
network are:

Who should be a part of a particular network?

What channels of communication should be devised to carry the information forward?
Who are the primary and secondary recipients of the information?
Who controls or regulates the flow of information from one point to the other?

There are two types of communication networks: centralized and decentralized. In centralized networks, information is stored and retrieved from a central pool or repository. The
information has to pass through multiple links to reach the intended audience. This type of
network values power over parity and centralized decision-making over a democratic process.

Chapter 01.indd 7

Type

Internal

External

Form

Formal

Memoranda, circulars, notices,

newsletters, pre-printed forms,
short reports, proposals

Letters, press releases, reports,

proposals

Written

Formal

Voice calls

Faxes, voice calls

Electronic

Formal

Face-to-face departmental or
company meetings, voice calls,
presentations

Presentations, negotiations,
sales calls

Spoken

Formal

Decision support systems,

e-memos

Video conferences, audio

conferences, decision support
systems, e-mails

Electronic

Informal

Instant messaging, blogs, links to

Web sites

Instant messaging, blogs,

social networking sites

Electronic

Exhibit 1.2
Ways to Communicate in
Organizations

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Though decision-making is quicker in this type of network, member satisfaction is low.

On the other hand, in a decentralized network, information is made available to everybody in
the network. Decision-making is consultative and participative, and everybody has a stake in
the information-processing and decision-making processes. This is particularly useful when
task complexity increases and creative solutions are required to make effective decisions.
Chain networks, hairpin networks, and wheel networks are types of centralized n
etworks,
whereas star-shaped and circular networks depict decentralized networks. Exhibit 1.3
illustrates circular, wheel-shaped, and chain networks.

NEW COMMUNICATION MEDIA

In these days of the so-called Thumbing Generation, when the Internet is easily accessible
and very popular, there are over a dozen different channels of communication. Exhibit 1.4
provides an overview of these new media.
Social media is a channel that facilitates dialogue between employees, the organization,
and external sources. Previously, people could get in touch with each other through an
e-mail, a telephone call, or a voice mail. However, the new media offers communication at
different levels. Contrary to popular belief, it is more a facilitator of communication than
a marketing tool. It employs modern media much like an e-mail to connect to employees,
customers, and clients in an engaging and ongoing manner. Recruiters, customer service
professionals, potential clients, and press may actively get in touch with an individual or a
company through social media to engage them in meaningful ways. Networking for referrals,
sharing information about ones organization, easy monitoring of customer complaints, and
compliments are a few benefits of utilizing social media in organizations. Thus, social media
allows us a wider reach than a telephone, e-mail or voice mail.
There was a time when a face-to-face conversation was the starting point of all relationships. However, things have changed today. Relationships might also start through the public
interactions facilitated by Twitter and Facebook. Short, crisp messages can be sent via Twitter
and people can widen their social networks with the help of Facebook. Thus, social media
is an open and transparent medium to share and elicit public responses from individuals,
organizations, and brands. Once a preliminary contact has been established, formal or informal communication may follow.

The Circle: Decentralized Network

Wheel-shaped: Centralized Network

The Chain: Centralized Network

Exhibit 1.3 Some Communication Networks

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Text

Computer to
computer

An internal blog
enhances a sense
of community and
helps express
an individuals
personal opinions.
Externally it helps
in branding and
public relations.

Content

Media

Uses
Instant messaging
is like a conference
call. It can be
used for finalizing
agreements and
decisions.

Computer to
computer

Short text

Real-time chat

Instant
messaging

Podcasts can be
used as audio
tours and to
update everyone
on meetings and
company issues.

On MP3 players or
iPods

Audio only, with no

live interaction

Online radio show

Podcasts

Smartphones are
used for sending
and receiving
e-mails and
accessing the
Internet on the go.

Cell phone to any

phone or computer

Usually audio

Cell phones with

inbuilt computers

Smartphones

An SMS is for
sending and
receiving short
messages.

Cell phone to cell

phone

Text message
that is less than
160characters

Very short text

Short message
service (SMS)

Twitter can be
used to express
personal feelings
and emotions
or to make an
informal public
announcement.

Computer to
computer

Text messages
(called tweets)
of up to
140characters

Social networking
and microblogging
Web site

Twitter

Wiki

Online Web page

(text)

Webcasts can be
used to broadcast
annual meetings or
discussions, and
to communicate
messages from the
top management.

Wikis are used

behind firewalls
as collaborative
software and
a means of
communication.

Computer to
Computer to
computercan be computer
viewed on a larger
screen if many
people are involved

Audio and video

Online conferences Web page

that are usually
created by group
interactive
collaboration

Webcasts

Source: Adapted from Mary Munter, What are They Talking About, published in Proceedings of the Association for Business Communicators (ABC) National Convention at Lake Tahoe, Nevada (2008).

Online journal or
commentary with
reader responses

Blogs

Description

Different kinds of
communication

Exhibit 1.4 New Communication Media

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Business Communication for Managers

VERBAL AND NON-VERBAL COMMUNICATION

In the mid-1960s, Paul Ekman studied emotions and identified six facial expressions that are
universally recognized: happiness, sadness, anger, fear, disgust, and surprise. Although his
contentions were controversial at first (reports suggest that he was booed off the stage when
he first presented his research to a group of anthropologists and was later called a fascist and a
racist), they are now widely accepted. However, an ongoing controversy is about the amount
of context needed to interpret these facial expressions.
According to researcher Albert Mehrabian, 55 per cent of the content of a message is the
visual component, 38 per cent is the auditory component, and 7 per cent comes from the
language used. However, these percentages only apply in a very narrow context.
Dr Mehrabian was interested in how listeners get information about a speakers general
attitude in situations where the facial expression, tone, and/or words are sending conflicting signals. He designed some experiments to investigate this. In one experiment, Mehrabian
and Ferris4 researched the interaction of speech, facial expressions, and tone. Three different
speakers were instructed to say maybe with three different attitudes towards their listener:
positive, neutral, or negative. Next, photographs of the faces of three female models were taken
as they attempted to convey the emotions of like, neutrality, and dislike. Test groups were then
instructed to listen to the various renditions of the word maybe while viewing the pictures
of the models, and asked to rate the attitudes of the speakers. Note that the emotion and tone
were often mixed; for instance, a facial expression showing dislike would be paired with the
word maybe spoken in a positive tone. Significant effects of facial expression and tone were
found in the study. Verbal communication was found to be effective only 7 per cent of the
time, the impact of vocal communication was assessed to be effective 38per cent of the time,
and facial expression and gestures had the largest impact (55 per cent). In other words, at least
initially, how we communicate was deemed to be more significant than what we communicate.
What finally can be concluded is that when people communicate, a listener derives information about the speakers attitude from visual, tonal, and verbal cues; however, the percentage derived from each type of cue can vary greatly depending upon a number of other
factors, such as the context of the communication and how well the communicators know
each other. To deliver the full impact of a message, non-verbal signals are important. Some
non-verbal signals are:
Eye contact: Eye contact signals interest in others and increases the speakers credibility.
People who make eye contact open the flow of communication and convey interest, concern, and warmth. This is especially useful during presentations, negotiations, meetings,
counselling, and giving and taking instructions and feedback.
Facial expressions: Smiling is a powerful cue that transmits happiness, friendliness,
warmth, and liking. Individuals who smile frequently are perceived as more likable,
friendly, warm, and approachable. Smiling is often contagious and people react favourably
to a smiling person. Smiling individuals make others feel comfortable and reduce their
anxiety. In a genuine smile, the muscles used are controlled by the limbic system and other
parts of the brain that are not under voluntary control. In a perfunctory smile, a different
part of the brain (called the cerebral cortex) is used. That part of the brain is controlled
voluntarily. Fake smiles, thus, use a completely different set of muscles than genuine ones.
Gestures: Some people gesticulate while speaking. This often brings vigour and vibrancy
to their speech. Lively speakers are perceived as more interesting and captivating than

Information
Bytes 1.1

Chapter 01.indd 10

Job applicants at a certain multinational fast food joint in Japan are asked to describe their most pleasant
experiences. Managers then evaluate applicants by matching their facial expressions with the experiences
they recount. If the smile is perceived to be hypocritical, they are not recruited for customer service.

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Bytes 1.2

11

The rules of business etiquette keep evolving but the biggest change in the last decade has been with respect
to gender. Today, as more and more women enter the workplace, business has become gender-neutral.
Greetings: Professional handshakes are preferred over masculine or feminine handshakes. The handshake
should be firm and quick, and there is no protocol as to who should offer the handshake first.
Business meetings: Both men and women are expected to step from behind their desk to shake hands and
offer a seat to their visitors. Maintaining appropriate eye contact, respecting personal space, and escorting visitors to the lobby/elevator at the end of the meeting is expected from all professionals. At business
lunches or dinners, the person who extended the invitation pays, irrespective of gender.
Introductions: Men and women are expected to stand for all introductions and when exchanging business
cards. Rules for making introductions in the corporate arena are driven by rank or hierarchy and not gender.
Titles: Women are introduced or addressed using the title Ms in all spoken and written business communication. If they prefer to be addressed as Mrs or Miss, they are expected to inform their business
associates accordingly.
Propriety: A handshake is the only physical contact between professionals in the workplace. Using terms of
endearment, giving excessive compliments, or cracking off-colour jokes is considered inappropriate. There
are strict sexual harassment laws regarding offences of such kind.
Civility in the workplace: Women do not expect men to hold open doors for themthe person who reaches
the door first is expected to hold it open for the other person. Similarly, the person closest to the elevator
door/ car door exits first. Regardless of gender, one is expected to help a colleague carry heavy files, hail a
cab, or help with the luggage in an airplane aisle.
Source: TNN, Corporates Team up to Avoiding Gender-bias, The Economic Times (February 22, 2008), available at:
<http://economictimes.indiatimes.com/features/corporate-dossier/corporates-team-up-to-avoiding-gender-bias/articleshow/2803146.cms>, accessed on January 4, 2011.

dull speakers, who rarely use gestures. Apart from making the conversation interesting,
gestures, when used appropriately, also facilitate greater understanding. For instance, a
handshake is a suitable barometer to judge a persons communication skills and personality.
Posture and body orientation: Posture and body stance are the meta-messages that
a speakers body conveys to the audience. An erect posture indicates positivity and
confidence while a droopy posture indicates nervousness or passivity. Leaning forward,
nodding ones head, and making frequent eye contact indicate receptivity and approachability, while the reverse holds true for leaning backwards, sprawling ones legs, and
having a casual style.
Proximity: Cultural norms dictate the comfortable distance for interaction with others.
Every individual has a comfort zone and a discomfort zone when interacting with others. Proximity not only indicates physical closeness but also less of a power gap between
the communicators. The high-backed chair, long table, and distance from the door
indicate a CEOs authority and that CEOs generally prefer formality in their approach.
A manager who prefers a round table in the meeting room generally gives the impression of being egalitarian in their outlook. A subordinate who places documents on a
colleagues table without permission may arouse annoyance in the latter. Generally it is
agreed that 18inches is the distance maintained for friends and family; about 18 inches
to 4 feet is the appropriate distance for colleagues, and, for even more formal relationships, 4 feet to 12 feet is suitable.
Appearance: This includes attention to clothing, personal grooming, and accessorizing.
Our physical appearance reveals our innermost feelings as to how we would like to be
viewed by others. It is the most noticeable aspect of self in relation to the external world.

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Vocal elements: Vocal elements such as tone, pitch, rhythm, timbre, loudness, and
inflection are very important for the impact of any message. A strong message conveyed
in a dull voice is uninteresting. Speakers who have a coherent argument must also inject
passion into their speech for greater impact.

THE GRAPEVINE
The term grapevine is believed to have originated during the American Civil War, when telegraph lines were sometimes strung from tree to tree, resembling grapevines. Because of their
rigged nature, these telegraph systems often generated ambiguous and garbled messages.
Informal and sometimes distorted messages were hence said to come from the grapevine.
The corporate grapevine is the informal communication network that operates within
the organization. It can be described as an invisible flow of rumour, innuendo, and speculation that runs within the informal channel of the organization, often bypassing the chain of
command and the official lines of communication. It is necessary for management to provide
complete information. If this is not done, then employees will fill in the gaps and the story
will take on a life of its own. However, it is not necessarily true that grapevine is harmful.
When properly nurtured, corporate grapevine can be a valuable asset. The main way in which
the grapevine can help is in getting a feel for the pulse of the organization. Employers who
truly understand this use the grapevine to get a feel of what the employees think about an
existing or impending situation. This helps to assess the morale of the workforce as well as to
evaluate the efficacy of the existing channels of communication. It is also useful in identifying
the points at which misinformation and misunderstandings occur.
Several studies have explored the use of the grapevine. One study by De Mare5 contends
that nearly 70 per cent of all organizational communication occurs at the grapevine level.
Research suggests that a persons position in the informal communication network correlates
with achievement and demonstration of power. There are several case studies that reveal
that managers use the grapevine to outmanoeuvre and outsmart others. Patterns of voluntary turnover significantly link to the heavy presence of informal communication networks
within an organization. In fact, a high level of grapevine activity is associated with stress,
medication, insecurity, and fear. Studies reveal disparity between a managers perception of
how they communicate and employees perception of the same.
Certain conditions might impact grapevine activity. These include how intensely employees
associate with the grapevine, how important the issue under discussion is to employees, the
ambiguity of the situation, as well as the level of trust in the formal communication network.

MISCOMMUNICATION AND COMMUNICATION FAILURES

Miscommunication can occur due to lapses on the part of the sender, the receiver, or the
channel used for communicating.
The sender: In some cases, the sender is to blame. The message may not be clear and
accurate or simple enough to be understood by the receiver. It may be badly presented or
so boring or complicated that it fails to hold the receivers attention. The sender may have
not taken care to frame the message according to the needs of the recipient, as a result of
which the receiver may tune the message out. At times the sender may use harsh words
that cause the receiver to shun the message completely.
The recipient: Receivers may be unwilling to take in the message because they are too
busy, because they have made up their mind about the issue at hand already, or because
they are biased towards the sender or the senders message. The recipient may be biased
towards the sender or have made faulty assumptions about the sender, as a result of
which the sender may have fail to make an impact.

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The channel: The choice of channel may also be the cause of miscommunication. For
instance, if the sender uses the phone or writes an impersonal e-mail in a situation when
face-to-face communication would have been more appropriate, it may offend the r eceiver.
There have been numerous well-documented cases of miscommunication in the public
arena. For example, the BJPs India Shining campaign had immense political implications.
This was an INR 1,000 million campaign that focused on the achievements of the (then) BJP
Government of India. The punch line was excellent and the advertisement was well timed
and well executed. However, the campaign failed to draw in the crowds at the time of the
polls, mainly since the advertisement had targeted only the top two sections of society.
Unintentional communication blunders are also not uncommon. American Motors Corporation once tried to market its new car, the Matador, based on the image of courage and
strength. However, in Spanish, the word matador means killer. As a result, the car was not
popular on Spanish roads. Similarly, in 1999, Crayola was compelled to change the name of a
shade of red to Chestnut from Indian Red because students mistook the latter as a racist
reference to the skin colour of Native Americans. However, in reality the name came from a
reddish-brown pigment found in India and commonly used in oil paint.6
In 2003, seven astronauts died as the space shuttle Columbia broke upon re-entry into the
Earths atmosphere. An independent investigation team spent months studying thousands
of pieces of debris, as well as data recovered from computers that tracked the Columbias
final moments. The conclusions of the Columbia Accident Investigation Board, published
in August 2003, expressed the opinion that a breach of the shuttles heat shield on take-off
caused it to break up on re-entry. The report was also highly critical of theNational Aeronautics and Space Administration (NASA) itself, saying management blunders were as much
to blame for this tragedy as technical problems for the destruction of the shuttle.7 As most
management blunders happen as a result of miscommunication at one level or another, this
might be a lesson no one will forget in a hurry.
On a personal level, miscommunication and unresolved issues usually involve hurt feelings and emotional turmoil. Most often than not, people do not know how to communicate
effectively, and this usually has a snowballing effect. For example, a misunderstanding with
ones spouse might lead one to being distracted at a meeting, which might lead to misunderstandings with a boss or colleagues. This, in turn, might once again lead one to behave
grumpily with ones family.
Respondents of a survey report that by far the biggest issue in working with offshore providers is miscommunication. Different communication styles and differing approaches to
conflict resolution might result in miscommunication. This, in turn, might hamper productivity and teamwork.

BARRIERS TO COMMUNICATION
Effective communication occurs only if the receiver understands the exact information or
idea that the sender intended to transmit. Studying the communication process is important
because managers coach, coordinate, counsel, evaluate, and supervise through this process. It
is the chain of understanding that integrates the members of an organization from top to bottom, from bottom to top, and from side to side. Despite the best intentions of the sender and
receiver, several barriers inhibit the effective exchange of information. Executives estimate
that 15 per cent of their time is wasted owing to poor communications with employees. This
translates into approximately 8 weeks per person each year.
Some of the various barriers to communication are discussed in this section.

The Noise Barrier

Noise is any random or persistent disturbance that obscures, reduces, or confuses the clarity or
quality of the message being transmitted. In other words, it is any interference that takes place
between the sender and the receiver. This is why we generally identify any communication

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problem that cant be fully explained as noise. The biggest single cause of interference in the
communication process is the assumption that the act of communicating is a simple process
that does not require much thought or practice and that all effective managers are born with
this skill. This is not true. Effective communication comes only with study and practice. The
effectiveness of the communication process is dependent on the capabilities of the people
involved.
To overcome the noise barrier, one must discover the source of the noise. This may not be
easy. Noise appears in a variety of ways. During a conversation, if one is distracted by the pictures on the wall, the view from the window, a report lying open on a desk, or a conversation
taking place in an adjacent room, then there is noise affecting the quality of the communication.
Once the source of the noise has been identified, steps can be taken to overcome it. The
noise barrier cant always be overcome but, fortunately, just the awareness of its existence can
help to improve the flow of communication.

The Feedback Problem

Feedback is reaction. Without it, the sender of the message cannot know whether the recipient has received the entire message and grasped its intent. Feedback includes verbal and nonverbal responses to another persons message. It is thus the return of a portion of the message
to the sender with new information. It regulates both the transmission and the reception of
the message.
The process is essentially straightforward: the sender transmits the message via the most
suitable communication medium, the receiver gets the message and decodes it, and then
provides feedback to the sender. When the message is transmitted and effectively received,
feedback serves as a regulating device. The sender continually adjusts the transmission in
response to the feedback. Feedback also alerts the sender to any disruptive noise that may
impede reception of the message. Feedback not only regulates the communication process,
but reinforces and stimulates it. In fact, it actually serves as the hallmark of dialogue, because
it forces communication and makes it two-sided. Two-sided expression, when combined
with mutual feedback, becomes a dialogue.
Feedback can manifest itself in the following ways:
Evaluative: Evaluative feedback judges the worthiness of the other person. Heres an
example: I feel that this project has certain language flaws that prevent it from being
published in this journal.
Interpretive: Interpretive feedback generally paraphrases the other persons statement.
Heres an example: You mean to say that corruption begins with us, right?
Supporting: Supporting feedback motivates and bolsters the other person. Heres an
example: I agree with your statement that we must not take insubordination lying
down.
Probing: Probing feedback seeks to clarify and gain additional information. Heres an
example: What does corruption mean to you?
Understanding: Understanding feedback seeks to decipher the other persons meaning.
Heres an example: What you are trying to say is that we only vote for the corrupt, and
that is why we are corrupt in the first place.
There is no feedback in one-way communication. Such communication involves passing
ideas, information, directions, and instructions from higher management down the chain of
command without asking for a response or checking to see if any reaction has taken place
at all. But as we have discussed, it is not enough to just ensure that the message has been
received. For communication to be effective, a two-way process must exist so that the sender
knows whether the message has been understood. The two-way communication process
involves sending a message down the chain of command and transmitting a response containing information, ideas, and feelings back up the chain. In verbal, face-to-face communication, the process doesnt happen sequentially. Instead, all of these actions occur almost

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simultaneously. For example, the sender acts as a receiver while transmitting the message,
and the receiver acts as a sender providing immediate feedback.
Providing feedback involves two things. First, it involves restating the senders feelings or
ideas (for instance, This is what I understand your feelings to be. Am I correct?). This helps
listeners understand and evaluate what the other person is saying. Second, feedback involves
using appropriate non-verbal cues. (e.g., nodding your head to show agreement, or frowning to show poor understanding or lack of agreement.) Note that a Japanese person nodding
their head during a presentation is anything but agreeable to the content of the presentation.
This is contrary to Indian norms, where nodding ones head indicates understanding and
agreement. This gesture isnt a positive one in Japanese culture.

The Problem of Media Selection

In any given situation, the medium or transmission mode for communication must be selected.
The medium chosen may be personal or impersonal. Personal media includes face-to-face
communication, chat using instant messaging, videoconferencing, phone calls, voice messages,
and other synchronous modes. Impersonal media includes e-mail, blogs, voice mails, text messages, decision support systems, and other asynchronous forms of communication. Any media
might use oral or written forms. Oral forms include presentations, meetings, chat, and the like.
Written communication may be in the form of letters, e-mails, notices, circulars, and so on.
Sometimes, a combination of media is used to deliver a message.
The selection of media is made by the manager, though in many cases it may also be
decided by general organizational norms and practices. If the media selection is a personal
choice, message transmission depends on the following:
Personal inclination
Personal experience in media selection and message optimization
Personality characteristics
On the other hand, if media selection is based on organizational norms, message transmission depends on the integration of information technology, information systems, and
social communication issues within the organization, as well as the capacity of the system to
support feedback, accessibility, and quality of the information used for decision-making and
knowledge management.
The media becomes a barrier to communication when the wrong channel is selected. For
instance, if an employee is asked to leave an organization by e-mail rather than in a faceto-face interaction, the communication is bound to be characterized as insensitive. On the
other hand, a letter appreciating an employees work is held in greater esteem than mere
verbal praise. Generally speaking, media selection should be matched with the requirements
of feedback. If immediate feedback is required, synchronous forms of communication are
preferred. If there is no immediate need for a response, an impersonal medium will do just
fine. Studies have also revealed that the role of culture, media accessibility, and media apprehension are important factors for the choice of channel.
Sometimes, the complexity of the message decides the medium. Complex messages usually demand a written format, and simpler messages require a simpler format. But it is not
always easy to determine what is simple and what is complex. Asking for a promotion is not
a very simple task, but should it not be communicated verbally?

Mental Barriers
In our own way, we all see the world differently. The perceptual process determines what
messages we select or screen out, as well as how the selected information is organized and
interpreted. There is significant chance of noise in the communication process if the senders
and receivers perceptions are not aligned.
Many times, noise exists in the mind of the sender or the recipient. This may be due to
many factors, such as the emotional state and attitude of the sender or the receiver, faulty

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assumptions, stereotyping, fixed beliefs, and a closed mindset. A closed mindset could be a
result of defensiveness (when we feel someone is attacking us), a sense of superiority (when
we feel we know more than others), and egocentricity (when we find it difficult to see things
from someone elses point of view).
Stereotyping causes individuals to typecast a person, place, event, or thing according to an
oversimplified belief and opinion. Thus, actors can be perceived as vain, self-centred artists,
professors can be viewed as overtly intellectual and pedantic, politicians as wily, and models
as empty-headed individuals. Stereotyping prevents us from viewing a person, situation, or
event in an open and new way. It functions as noise in the communication process because
the receiver or sender ends up drawing conclusions based on preconceived notions. If the
sender or the receiver believes that they know everything about the subject being transmitted, they expect acceptance of those ideas. Any ideas to the contrary are perceived as threatening, and this, in turn, leads to poor communication.
Failure to attune the message to the audiences sensitivities also acts as a major barrier to
communication. The speaker may assume that the audiences logic is similar to their own,
and this may lead to unfair assumptions on their part. Presence of strong bias, a closed mindset, and irrational attachment to a certain belief or approach might hamper communication
and lead to poor exchange. In such a case, ego clashes become inevitable, as there remains no
common ground between the sender and the receiver. Preconceived attitudes also affect our
ability to listen. For instance, some people listen uncritically to people with a higher status
and dismiss those they perceive as being of a lower status.

The Problems of Language and Articulation

Words and gestures carry no inherent meaning. The sender must ensure that the receiver
understands the symbols and signs being used. Language and communication dynamics
have become the driving force in international business operations in recent times. Though
technology has paved the way for globalization, the latter cant be successful without the correct negotiation of cultural factors such as the use of language. Language that describes what
we want to say in our terms may present barriers to those not familiar with our expressions,
buzz words, and jargon. When we couch our communication in such language, it can become
a way of excluding others.
Three potential language barriers are the use of improper words, the use of jargon, and
ambiguity.
Use of improper words: Words, when improperly used, create the wrong impression.
Most words have more than one meaning and, often, different implications in different cultural contexts. As words are widely used for communication, it is important to
address any potential barrier that may occur from their use. One way to penetrate the
word barrier is for the sender to write or speak in relation to the receivers background,
experiences, and attitude. The more the focus on the audience, the greater is the effectiveness of the communication. S.E. Hayakawa, a U.S. Senator from California, expressed
it very well when he said, The meanings of words are not in the words; they are in us.8
At times, messages may be vague and unclear. For instance, Please submit your report by
tomorrow evening is a vague message that leaves one in doubt about what kind of report
is being dicussed and when exactly it needs to be submitted. In contrast, Please submit the
feasibility report between 4 and 5 tomorrow evening is precise and clear in its intentions.
To communicate effectively, we must try to see ourselves through the eyes of others in
the communication link. By empathizing with the people to whom we direct messages, we
might recognize the need to modify our messages from time to time before sending them.
Douglas McGregor, one of the leading authorities on management practices, says that, It
is a fairly safe generalization that difficulties in communication within an organization are,
more often than not, mere symptoms of underlying difficulties in relationships between
parties involved. When communication is ineffective, one needs to look first at the nature
of these relationships rather than at ways of improving communication.9 Thus, the ability

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of the sender to penetrate the communication barrier is determined to a large extent by

the depth of the relationship between the sender and the receiver.
Use of jargon: Jargon includes technical language and acronyms as well as recognized
words with specialized meanings in specific organizations or social groups. A wellknown multinational computer software giant promotes the use of jargon as it believes
that it can potentially improve communication efficiency when both the sender and
receiver understand this specialized language. Jargon also shapes and maintains the
organizations cultural values and symbolizes an employees self-identity in a group.
However, jargon can be a serious communication barrier at times. The use of jargon in
some situations can promote a form of technical snobbery that may prevent employees
from receiving important knowledge and undermine relations with customers.
Ambiguity: We usually think of ambiguous language as a communication problem
because the sender and receiver interpret the same word or phrase differently. If a
co-worker says, Would you like to check the figures again?, they may be politely telling you to double-check the figures. But this message is sufficiently ambiguous that you
may think they are merely asking if you want to do this. This does not make for effective
communication.
Ambiguous language is sometimes used deliberately in work settings to avoid conveying undesirable emotions. CEOs sometimes refer to the integration processes with other
companies. This sounds better than words like merger and monopoly. Software firms for
example, do not warn computer users about fatal software errors; they are undocumented
behaviours. And when millions of customers of a software company suffered through significant e-mail delivery problems, the company described the incident as a partial e-mail
delay. Why the obfuscation? Customers tend to respond more calmly to integration processes, undocumented behaviours, and partial e-mail delays than to monopolies, fatal software errors, and e-mails lost for weeks or forever.

Research shows that one of the most important factors in building cohesive teams is proximity. As such, round tables are perceived to promote
egalitarian thinking.

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Ambiguous language may be a barrier, but sometimes it is necessary when events or objects
are ill-defined or lack agreement. Corporate leaders often use metaphors to describe complex
organizational values so that they may be interpreted broadly enough to apply to diverse situations. Scholars also rely on metaphors because they convey rich meaning about complex ideas.

Physical Barriers
Physical barriers in the workplace include marked-out territories into which strangers are
not allowed, closed office doors, barrier screens, separate areas for people of different statuses, and so on.
Research shows that one of the most important factors in building cohesive teams is proximity. As long as people still have a personal space that they can call their own, nearness to
others aids communication because it helps team members know each others strengths and
weaknesses. Office infrastructure and designs of tables, meeting rooms, and conference halls
are subtle indicators of power hierarchy and status. Round tables are perceived to promote
egalitarian thinking, while a rectangular table denotes that authority is vested in one person
sitting at the head of the table.

Personal Barriers
One of the chief barriers to open and free communication is the emotional barrier. It
comprises fear, mistrust, and suspicion. Emotional mistrust of others often has its roots in
the directives we might have received as children, such as Dont open your mouth to speak
until asked. As a result, many people hold back from communicating their thoughts and
feelings to others. They feel vulnerable. While some caution may be wise in certain relationships, excessive fear of what others might think of us can stunt our development as effective
communicators and our ability to form meaningful relationships.

Cultural Barriers
When we have to be a part of a group, the unwritten understanding is that we accept the collective code of conduct or behaviour. Sooner or later we become part of the group and adopt
its behavioural pattern as our own. This is perceived as a sign of acceptance by the other
group members, and is rewarded by inclusion. In groups that are happy to accept newcomers
and where newcomers are happy to conform, there is a mutuality of interest and a high level
of winwin contact. Where there are barriers to membership in the group, power conflicts
replace effective communication.

Interpersonal Barriers
Interpersonal communication is communication between two people, groups, departments,
or organizational units. By building bridges and inducing commonality, organizational members seek task satisfaction and job fulfilment. However, not many people build interpersonal
relationships. There are levels at which people distance themselves from one another:
Withdrawal: Withdrawal is where interpersonal contact is shunned and an individual
refuses to be in touch.
Rituals: Rituals are when interpersonal contact is perceived to be mere formality, devoid
of genuine interaction.
Pastimes: Pastimes are where interpersonal relationships are perceived as social but
superficial activities to be indulged in when one is free.
Working: This is when interpersonal activities are confined to discussions at work, but
no further.
Games: This is where interpersonal activities are considered to be subtle, manipulative
interactions that are about winning and losing.
Closeness: This is the aim of interpersonal contact, and happens when there is a high
level of honesty and acceptance of yourself and others.
Technology: This is where interpersonal satisfaction is sought through social networking sites.

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Information Overload
Every day, Dave MacDonald was flooded with up to a hundred e-mail messages. The former
Xerox executive was reportedly bombarded with voice mail, faxes, memos, and other pieces
of information. Without some kind of system in place, Id spend practically all my time trying to sort through it and not get much of anything else done, says MacDonald.
Just like Dave MacDonald, thousands of workers around the world deal with hundreds
of e-mails, phone calls, voice mails every day. It is no wonder that people are overwhelmed.
Information overload occurs when the volume of information received exceeds the persons
capacity to process it and it is a significant obstacle in the path of effective and smooth communication. It can be overcome by either increasing the capacity of processing information
or by reducing the amount of information that is being processed. For example, working for
longer hours might help reduce some amount of information overload. However, that is a
feasible solution when the overload is not a permanent fixture and only temporary. Screening
messages, condensing information, and ignoring information not deemed as important are
other ways of reducing information overload.10

Passive Listening
Hearing and listening are two distinctly different things. Hearing is an involuntary act and
happens when we receive aural stimuli. Listening, on the other hand is a voluntary activity
that involves interpreting the sound one receives and decoding its meaning.
People engage in two types of listening: passive and active. Passive listening is little more
than hearing. It occurs when the receiver of the message has little motivation to listen carefully. Listening to music, stories, television programmes, or pretending to listen while merely
being polite in anothers company may be cited as examples of passive listening. Exhibit 1.5
categorizes the habits of good and poor listeners.
People speak at 100 to 175 words per minute (WPM), but they can intelligently listen to
600 to 800 WPM. Since only a part of our mind is paying attention, it is easy to go into mind
drift (thinking about other things while listening). The cure for this is active listening, which
involves listening with a purpose. This purpose may be to gain information, obtain directions, understand others, solve problems, share interests, see how another person feels, show
support, and so on. Thus, active listening requires attending as well as engaging skills. A few
traits of active listeners are:

Chapter 01.indd 19

They listen more and talk less.

They are not judgmental.
They do not finish the sentences of other people.
They do not allow bias to creep in.

Good listeners

Poor listeners

Talk less

Interrupt frequently

Ask open-ended questions at the end

Finish the sentences of the speaker

Make eye contact

Let their attention wander

Nod frequently

Dominate the conversation

Take brief notes

Argue to win

Repeat and paraphrase as necessary

Wait for their chance to speak

Accept that everybody has different views

Are judgmental

Focus on the words rather than the personality of the speaker

Form biased opinions

Exhibit 1.5
Habits of Good and Poor
Listeners

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They stay focused.

They are not swayed by the speakers persona.
They seldom dominate conversations.
They do not plan responses.
They do not interrupt the speaker.
They take mental notes while listening.
They do not jump to conclusions.
They engage in open-ended conversations.
They indicate their engagement by gestures and make proper eye contact.

Listening is different from hearing. Listening involves not only the ears, but also the mind and
heart. Listening is not always easy, but it can be learnt. Here are a few suggestions to listen better:
Lean forward and make eye contact with the speaker. Nod your head to show
understanding.
Take notes as you listen. Jot down the key points.
Clarify points that you do not understand. Politely interrupt the speaker or raise your hand.
Paraphrase what the speaker is saying; do not judge until the speaker has finished talking.
Subdue your inner voice. Focus on the topic.
Ignore distractions.
Getting the attention of the audience is an art, but it can greatly improve with practice.
Here are a few suggestions:
Organize your material into manageable chunks of information. Audiences tend to get
bored with monologues. Listening is easier if the key points are described sequentially
or in some sort of a structure.
Build a rapport with the audience. An audience is likely to listen to a speaker who cares
to share some personal information with them. There is a better connection if the audience feels that the speaker is just like them.
Build humour into the talk. This makes the atmosphere relaxed and comfortable.
Answer questions adeptly. This does not imply that the speaker must know the answer
to all the questions, but the speaker should be able to manage and control the audience
through powerful use of ethos and logos. Ethos is the use of an appeal to credibility by
the speaker. Logos, on the other hand, is the use of logical appeal in an argument.
Use linguistic tools. Create abbreviations and short forms of the key messages so that it
is easier for the audience to remember them. Repeat messages frequently to reinforce the
important points.
Use ample illustrations, examples, and graphics to appeal to all audience typesauditory,
visual, and verbal.

COMMUNICATION BREAKDOWN: SEVEN CARDINAL MISTAKES

MANAGERS MAKE
Despite the best of intentions, management communications can be misinterpreted. There are
numerous ways in which managers can commit mistakes as far as communication is concerned.

Communicating Without Adequate Preparation

Speaking without thinking about the consequences does not pay off in professional communication. For instance, before announcing a controversial decision to employees, managers
should take into account the sensitivities of the affected parties. This will prevent malicious

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gossip, planned resistance, and office manipulation, which are common when employees are
taken by surprise. Even presentations, proposals, and e-mails written without proper preparation can land managers in trouble. It is worthwhile to individually consult pressure groups,
opinion leaders, and office groups on a one-on-one basis before making any decisive commitments. It is also a good idea to convey empathy and concern using ones tone, voice, and
body language appropriately.

Underestimating the Intelligence of the Audience

Many managers fail to take employees into confidence by citing the popular refrain, they
will not understand. This is a mistake. The audiencesupervisors or subordinatesare
likely to be knowledgeable about many factors and deserve to know the rationale behind the
companys strategic plans.

Using Inappropriate Channels of Communication

Sometimes, managers use e-mails to convey messages best conveyed in a face-to-face conversation. Deplorably, many times, managers publicly deride an employee when a personal
putdown would have been enough. These so-called small blunders have the potential to
trigger great unrest. Generally speaking, potentially emotional issues are best dealt with face
to face, while more professional issues can be handled via electronic channels. Managers may
also make the mistake of sending verbal information to an employee who essentially prefers
the face-to-face mode and vice versa. Knowing the communication channel preferences of
employees can bridge gaps between managers and subordinates.

Believing that Words Speak Louder than Actions

Lofty appeals and ambitious promises hold true when employees feel that the manager
walks the talk. For example, talking of equality but drinking tea/coffee in a porcelain cup as
opposed to the paper cups used by employees, gives the impression that status and position
do matter. Therefore, before communicating any standards of behaviour, rules, regulations,
or beliefs, it is important for managers to take a long hard look in the mirror. The culture
perpetrated by managers should reflect the goals set by the organization.

Listening Only to Good News

As managers go higher up the corporate ladder, they somehow surround themselves with
people who create deliberate noise in the information processing chain. As a result, managers
may fall prey to the good-news-only syndrome, where they disregard bad news and react negatively to bearers of such news. It is often observed that bad news is softened as it moves up
the hierarchy and magnified as it travels down. Effective managers are open to receiving bad
news and seek to solve the issue, instead of brushing it under the carpet. Effective managers
deal with rumours and the grapevine head-on and talk to others directly in plain language.

Playing Guessing Games with Employees

Some managers rarely seem to give complete information to their employees. They appear
to revel in keeping their employees in a state of suspense. In the guise of testing the subordinates skill at discovering information, managers try to exercise power and control over
subordinates. This can boomerang in the form of incomplete reports, unprofessional presentations, and improper research. An effective manager learns to harness the skills of the
subordinate to match their own for a productive solution.

Rarely Talking to Employees

Some managers do not speak at all with their employees. Cocooned in their plush air-conditioned
chambers, they fail to tune in to the needs of their employeesthe salespeople, field staff, receptionists, factory supervisors, and new recruits. They neither praise nor reprimand. They distance
themselves from the very people who work for them, believing that the middle and supervisory
management will take care of their needs. In this scenario, it may happen that employees lose

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Information
Bytes 1.2

Many organizations have not reacted very kindly towards the two most popular social media sites: Twitter
and Facebook. According to them, employees waste time on Twitter, Facebook, and Orkut. Many have even
barred them from the workplace.
The popular view is that organizations can gain from this vast resource and should make it a preferred
mode of communication. According to many employees, these social networking sites serve as effective
agents of internal communications. Over time, the role of these social networking sites has changed substantially from sharing personal thoughts and brief updates to informative bulletins.
Organizations must recognize this and adapt to the new world, which is led by technology. Compatible
across all platforms and interfaces, most social networking sites, including Twitter, afford a lot of flexibility.
Almost anybody can access them, read them, post comments, and respond on these sites.

their vision and motivation with respect to their work. Effective managers are also leaders and
should have their feet planted firmly on the ground.

COMMUNICATION BARRIERS AND TECHNOLOGY

Barriers to communication in the workplace are gradually being overcome in several organizations, thanks to effective use of social media. The Social Media in the Enterprise11 conference held in March 2010 focused on how various organizations use social media to their
advantage. Different organizations use social media in different ways. Some feel that the main
obstacles to social media are generally the people concerned while others felt that it was a
challenge to get the HR and IT departments to communicate efficiently in order to effectively
implement social media within an organization. However, others feel that the one major
benefit of implementing social media within a company is that is helps move the internal,
water cooler conversations into the public arena and brings together people from different
departments. The British supermarket chain Asda, for example, has a social media system
called the Green Room, where the employees, among other things, share information about
the charity work they are doing. Certain speakers in this conference, however, described the
rising cost of social media (Sonia Carter from Axa, U.K., described how the first version of
a particular social media platform was free and took six weeks to implement, while the next
version cost the company GBP 500,000 and took twelve months to fully swing into action) as
one of the major drawbacks. A publicly accessible social media site of a company also needs
to be closely monitored and controlled so that important data doesnt find its way into the
wrong hands.

FACILITATING EFFECTIVE COMMUNICATION

There are many factors that facilitate effective communication. They are discussed in this
section.

Develop a Genuine Desire to Communicate

The desire to communicate is the first step in being effective. The desire to connect with
another human being is the bond that facilitates clear expression perhaps more than anything
else. A genuine effort to understand another person goes a long way in enhancing the quality
of interaction.

Understand Oneself and Others

The key to effective communication is, first and foremost, an understanding of oneself and
then, an understanding of others. When we have fully reflected on our own communication
style, we can adequately revise and respond to others. The first step in this direction can be to
prepare an inventory of ones biases and prejudices.

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Introduction to Business Communication

23

Encourage an Open Climate

In most situations, managers overestimate their capacity to communicate and underestimate
the extent of positional authority that prevents most employees from voicing their concerns.
Most managers are averse to listening to bad news (unplanned expenditure, sanctioning
leave, greater budget outlays, sales decline, and the like). They may avoid interaction, change
the subject, tell employees clearly that they would not like to listen to such things, and so on.
This inhibits the flow of unpleasant yet important communication.
In turn, employees may at times feel discouraged to present constructive ideas for
improvement of processessimply out of fear of reprimand or ridicule. A good example is
that of Sheryl Sanders, currently chief operating officer of Facebook. When she worked at
Google, she was responsible for the companys automated system. She made a costly mistake
once, and informed the founder of Google, Larry Page, telling him how bad she felt about the
million-dollar loss. Sheryl recalls that Page accepted her apology and then went on to say that
he was quite glad that she had made the mistake and that the mistake was a good indicator
of the risks Google was taking in business. As Sheryl said later, few CEOs actually walked the
talk and Googles was one of them.12

Develop Strong Internal Communications

Internal communications or employee communications refer to the information channels
made available to the employees of a firm. These channels are used to disseminate information to employees about current and future activities of the firm, awards and recognition,
and plans concerning the company. It also allows for some form of feedback from employees
regarding these issues. An informed and motivated workforce is crucial for a healthy organization. Companies like Google, Starbucks, Unilever, and Mastek, which employ good internal communications systems prove that success really starts from within.
Internal communications, however, has some drawbacks. They include:
Ignoring the merits of face-to-face communication: Sophisticated tools and technologies have made organizations too dependent on technology; companies sometimes fail
to realize that face-to-face communication and meetings are still the most personal form
of communication.
Cascading communication: In a global environment, it is impossible to communicate face
to face with employees all the time; hence information cascades through successive management levels. This leaves the message at the mercy of the senders, who may not all be
skilled in the art of communication. This leads to message distortion, confusion, and conflict.

Communication
Bytes 1.3

Mastek was the first IT company to introduce the idea of a virtual bench. It was the most drastic action taken
so far by this 27-year-old company. Due to the sensitive nature of the action, a lot of brainstorming was done
and everything was planned in great detail. Employees who were put on the virtual bench had the option of
leaving it and resigning from the company after receiving a severance pay.
However, after its implementation, a staggering 85 per cent opted to remain in the company. All the 425
affected employees were informed of this decision through a joint presentation, which stressed how they
were still precious resources for the company. They were also informed about the kind of training they would
receive. As everything was there in written form, there was little chance of miscommunication. The presentation came with a letter including detailed legal implications and frequently asked questions (FAQs) about the
measure they had taken. This document included mentors who could be contacted. Doctors and counsellors
were also made readily available in case of emergencies.
Source: Based on N. Shivapriya, HR Heads Look to Control Costs Without Layoffs, The Economic Times (May 3, 2009),
available at <http://articles.economictimes.indiatimes.com/2009-05-03/news/28457262_1_virtual-bench-salary-cutsemployees>, accessed on January 5, 2011.

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Business Communication for Managers

Disintegrated communication: Often tools are just used to inform employees about
events and schemes, with little or no follow-up. Thus, communication appears to be oneshot event rather than a coherent whole or a part of a strategy.
Too focused on quantitative surveys that are time-consuming and yield little: It is
recommended that managers not rely overly on surveys, and walk the talk instead.
A great deal of information can be obtained by simply walking outside ones cubicle,
sitting with employees in the cafeteria, or talking with them on the telephone.
The business leader has to tear down fences, punish internal politics, reward cooperation,
and encourage sharing of ideas if internal communications are to improve. Creating an open
organizational climate to support employee concerns and objectives might be a good way to
improve internal communications. It is a good idea to let everyone in the organization know
what others are doing. Pasting the objectives of all the teams working on various projects on
the intranet or the dashboard reporting system might be helpful as well. Organizing crossfunctional teams for projects can also help facilitate internal communications. Team leaders
must engage the teams in contests, quizzes, club activities, and other extracurricular activities, and create a suitable provision for incubation of ideas.
Encourage hot desking. Hot desking is the practice of not providing desks to employees,
specifically the sales staff. They can take a seat anywhere within a conference room. This can
prevent a silo mentality, that is, the practice of owning or possessing something in an unreasonable manner and failing to share it.

COMMUNICATION STRATEGY
There are two sides to strategy in communications. In the first instance, there is the organizations strategy: what it hopes to achieve and how it plans to go about achieving it. That strategy
will be supported, and to some extent, delivered through effective internal communications.
In this context internal communications can help on several different levels:
Tell: Informing people of the direction taken (non-negotiable).
Sell: This is done while anticipating some form of backlash, and it requires some amount
of persuasion.
Consult: Soliciting specific areas of input to the decision-making process.
Involve: Seeking varying degrees of involvement and co-creation.
Exhibit 1.6 explains the communication process diagrammatically.
Second, and more important, internal communications needs a strategy of its own. It
should be positioned as more than a simple plan of tactical interventions in support of business activities.
Exhibit 1.6 A Model of Strategic
Communication

Chapter 01.indd 24

Feedback

Media
Social media
Press relations

Organization
Tell
Sell
Consult
Involve

Message

Feedback

Measurement

Feedback

Market/Audience
Act
Buy
Brainstorm
Decide

Feedback

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25

Audience/Market: What does the organization know about the information needs of
its audience/market? How should its audience/market be segmented?(Audience refers to
the employees and market refers to clients, customers, suppliers, and, in essence, all the
people external to the organization.)
Message: What is the organizations message trying to achieve? In what tone should it be
conveyed? Message can be informational, persuasive, and motivational.
Media: Which channels work best for the different audience segments? How will they
maximize reach and facilitate action? Are there clear guidelines for each? Media includes
social media and other channels of internal communications; media also means the
press and other mass media.
Measurement: Are there clearly defined success criteria for the quality of communication? What are the leading and lagging measures?
Numerous corporate organizations have effective communication strategies. Here is an
e xample: A leading mobile company has an unwritten rule that prevents employees from eating lunch at their desks or going out for a meal. They are generally asked to eat at the in-house,
inexpensive cafeterias. This leads to greater intermingling of employees outside their own
department. This has been found to be helpful in sharing ideas and understanding issues.13
In 2004, the corporate communications department of a multinational distribution
company wanted to improve its internal communications. It authorized Pulse Check, a survey feature launched by The Booth Company, to devise and manage a series of quarterly
pulse surveys. The pulse surveys allowed them to gauge employee attitudes towards the
new corporate brand strategy and provide feedback to help them improve internal communications. The content was divided into five areas: Strategy, Performance, You and the
Company, Leadership, and Communication. The data provided the corporate communications department with a clearer picture of how employees want internal communications
to work.14
Tata Consultancy Services (TCS) has something called the Ultimatixan online system
that helps connect employees to one another on a daily basis. The company has also collated
all the programmes that helps it communicate internally within the organization. According
to the Chief Executive Officer of the company, the senior management always tries to meet as
many employees as possible and the hierarchy within the organization is never a hindrance
in this case. Effective internal communications also manages to take away the stress from
the hectic schedules most TCS employees have to maintain. Most of the employees of this
company are in their late twenties and the programmes are often geared towards their satisfaction. Last year, with an extremely low employee attrition rate of 3 per cent, TCS proved
that its internal communication system was working effectively.15
TCS also employs other effective communication strategies like the open-door policy
in which any employee can approach the CEO or the top management with work-related
problems. Open-house sessions allow employees at all levels to meet and discuss various
work-related issues. Employees can also take part in one-on-one sessions with the senior
management. These sessions are helpful in providing mentorship, as well as understanding
real-life issues that workers might face at the office. The queries and discussions are formally
recorded and followed up.
Companies like Infosys have effective in-house communication strategies as well. There,
InSync is the internal communications programme focused on keeping Infosys employees abreast of the latest corporate and business developments, and equipping them to be a
brand ambassador for the company. This programme combines a communication portal
with workshops, monthly newsletters, articles, daily cartoons, and brainteasers to synchronize each employee with the organization.
Companies like Wipro have various internal communications channels in order to connect with its employees. For example, Channel W is an employee portal at Wipro that creates a de facto Wipro community by allowing employees to interact with each other and
disseminate information on things they most cherish. The intranet ensures that the entire

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Business Communication for Managers

organization is wired in and that there is meaningful exchange of information and views
across domains. Key sections of Channel W encourage employee participation and communication through bulletin boards and chat rooms.
W10 is a dipstick survey with ten questions, which checks the satisfaction level on issues
affecting company stability, security issues, and supervisory effectiveness in Wipro. Feedback given by employees is shared with the top management through scorecards in this system. These W10 scores then trigger managers or supervisors to meet their teams and resolve
issues that create dissatisfaction in the workplace.
Wipro also conducts employee satisfaction surveys every two years. Employees are
encouraged to comment on and rank the organization on certain areas or satisfaction drivers. The top management then prepares a timely action plan to address the areas of concern.
Task forces are created to focus on areas that can be improved.
Wipro believes that team feedback is an important parameter of leadership development
as well as team cohesiveness. A skip level meeting is, therefore, rather popular. These are
formal team feedback sessions facilitated by HR as well as the supervisors supervisor. This
is an institutionalized process in Wipro and managers see great merit in it as they get feedback from the team. Consequently, managers can make changes in the middle of an ongoing
project in order to improve effectiveness at work.16

SUMMARY
Technological advancements, diversity, globalization of
business, growth in legal issues, and time constraints
have made communication a key skill in the knowledge
economy.
Communication is rather complex. This is because
everyone has their particular mental frames that guide
their speech. Sensitivity to the otherness of others
improves communication considerably.
Barriers to communication can be resolved by knowing
what, how, when, and where to communicate.
First impressions are usually based on the visual impact,
followed by the verbal impact. It is thus important to

control ones body language and build a positive perception about oneself.
Internal communications plays a key role in organizational communication systems by regulating the flow
of information through communication media. New
media are being harnessed to create links between
employees.
The proposed model of effective communication
strategy at the workplace emphasizes measurement
among other factors. Communication initiatives must
be measurable with a proper audit. This is bound to
give them the respectability they deserve.

ASSESS YOUR KNOWLEDGE

1. Describe the process of communication. Do you think
that the process has undergone a radical transformation with the introduction of newer forms of communication?
2. In what way can mental barriers hinder c ommunication?
3. How do you distinguish between synchronous and
asynchronous forms of communication? Do you agree
with the statement that face-to-face communication
has declined over the years? Give reasons for your view.
4. Distinguish between internal and external communication in an organization.

Chapter 01.indd 26

5. What are the benefits of internal communications?

How has Google crafted its internal communications
strategy?
6. What are the benefits of keeping the lines of communication open in an organization?
7. Write short notes on the following:
The human moment at work
Blogs as tools for organizational communications
Mental filters
How to make others listen to you

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27

USE YOUR KNOWLEDGE

1. Read the following situation and answer the question
that follows.

Companies have fired thousands of employees in the
recent economic downturn. A few years ago, RadioShack
Corporation sent e-mails to approximately 400 of its
employees, informing them that they had lost their
jobs. It is part of the culture of certain organizations to
communicate important messages through e-mails.

As the HR manager at RadioShack, write a one-page
memo to persuade the CEO to adopt a more suitable
and less dehumanizing strategy for notifying employees
that they have been let go.
2. Google, the popular Internet search engine, has taken
the rules of grammar a step further. As hurried e-mails
and instant messages become more commonplace,
Google is doing its best to encourage clear and effective
communication on the Web through proper grammar
and spelling. Its AdWords division, which is responsible
for advertisements appearing alongside search results,
insists on standard English and correct spelling for
any ads placed on the side. Google disallows the use of
unjustified superlatives, such as best or tastiest and
excessive punctuation such as multiple exclamation
points. The divisions director insists on these editorial

guidelines to ensure clear, effective, and to-the-point

communication between advertisers and viewers.

As the director of the AdWords division of Google,
you have received many e-mails from advertising
copywriters questioning why Google has not accepted
their submissions. Write an e-mail that will explain
why these ads are not being accepted. In your e-mail,
address Googles intent to keep the message clear and
effective. As you evaluate your draft, consider the subject line, the main content, and the letters grammar.
You would also like advertisers to continue advertising
with Google and, as such, recommend that they work
with Googles editors to develop easy-to-follow standards for submissions.
3. Many times recruiters ask typical questions that aim
to understand the candidate beyond carefully scripted
responses. As a savvy recruiter, evaluate the responses to
the following interview questions as shown in Exhibit 1.7.
The
recruiters evaluation criteria include seeing
whether the candidate is a good fit for the company,
whether he or she is oriented towards teamwork and
has an enterprising nature, and whether the potential
recruit has a responsible attitude and makes intelligent
choices.

Question

Response

Give me an example of a time when you had a conflict with a team

member.

Our leader asked me to handle all external correspondence for the

team. I did it, but felt that correspondence was a waste of my time

Tell me how you solved a problem that was impeding your project?

One of the engineers in my team was not pulling his weight and we
were closing in on a deadline. So I took on some of his work.

Whats the one thing you would like to change in your current position?

My job as a marketing executive has become mundane. I would like

the responsibility of managing people.

I am interviewing 120 people for two jobs. Why should I hire you?

I represent one of the best management schools in the country.

Ifeel that I am the best in this area. With four years of experience
in this industry and all the necessary qualifications, I can offer you
something unique, that no other candidate can.

Why are your grades so low in this subject?

I did not really like this subject. I am far more interested in accounts
and finance, where you can see I have high scores.

Show me some samples of your writing.

I am sorry. I do not have writing samples. I did not know that these
were required for the interview.

What have you read recently? Any movies that you have seen recently?

I do not have the time to read. However I saw the Hindi movie Apna
Sapna Money Money and liked it immensely.

Exhibit 1.7

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Business Communication for Managers

4. Please read the scenario given here. The perspectives

of each participant in the communication process have
been detailed. After you have read the case, answer the
questions that follow.

the Gucci briefcase you bought the other day to the

office!) Youre on the way to meet the COO to sort
out the issue. He is a nice person and you respect
him for his knowledge and credibility.

Background: According to a poll funded by Levi

Strauss & Co., more than half of all white-collar
workers can now dress casually at work. This trend
reflects larger changes in work patterns. The workplace is more flexible and more people now work
at home or have flexible hours. Even John Molloy,
the guru of the 1980s dress for success movement,
now works with befuddled executives, teaching
them what to wear in a casual world.
The team leaders perspective: Dressing casually in
professional places seems to be an increasingly common phenomenon. The COO of the accounting firm
you work for has written to you to enforce limited
dress-downs, as he calls it. In his e-mail, the COO
has pointed out the frivolous dressing style of
some employees. You feel that the COO is being
overly stuffy. You do not find anything objectionable in the manner in which your team members
dress. You feel that they appear much more relaxed
now and willing to put in longer hours of work. The
office atmosphere lightens, and one does gets a break
from monotony. Yes, you do admit that Sujoy was
looking a little scruffy during the presentation but
its the end result that matters, doesnt it? The presentation was a success.
You feel that the firm should allow its employees
dress-down options, ideally at all times. However,
if that is not acceptable (though you dont see why
it shouldnt be), then it should be permissible for at
least one or two days in a week. Why not? Even your
team members have raised objections to the e-mail
sent by the COO. (By the way, youre eager to bring

The COOs perspective: You are the COO of Eastman and Associates, a sedate, well-established, and
highly respected accountancy firm. You are concerned about the dwindling professionalism in your
company. This is especially in relation to the casual
dressing style you are seeing at the workplace. If
you had your way, you would prefer the traditional
style of dressing. You express your concerns to various team heads and urge them to either be formally
attired or establish some sort of a written dress code.
Your worry is that an increase of casual wear in office
might look unprofessional, encourage sloppy work,
and in general promote fooling around. Moreover,
you are concerned about what people might wear. Is
a written code necessary if a casual dress policy is
allowed? Why, the other day you were amazed to see
Sujoy dressed so casually for an important presentation! Its a wonder you clinched the deal, because
the client gave you quite a lot of negative feedback
about Sujoy. You had a tough time convincing your
client. One of the team heads, Bharat, has asked to
see you. Bharat may have some radical views but he
is an asset to your company. Moreover, he attended
the same college you did.
Taking a cue from the communication models
discussed in the chapter, analyse the communication between the COO and the team leader as
presented in this case. Specifically, highlight the
role of perceptions and how one can overcome
them. Also write a dialogue representing both the
roles. You are free to add more information where
it is necessary.

WEB-BASED EXERCISES
1. Visit http://www.nacada.ksu.edu/clearinghouse/AdvisingIssues/body-speaks.htm. Explain the differences in
body language across countries.

2. Visit http://eqi.org/summary.htm. What does the

author mean by being emotionally literate? What
kind of semantics are used when one uses language that
is high on emotional intelligence?

FURTHER READING
A. Zaremba, Management in a New Key: Communication Networks, Industrial Management (1989) 31:
611.

Chapter 01.indd 28

Albert Mehrabian and Morton Wiener, Decoding of

Inconsistent Communications, Journal of Personality
and Social Psychology (1967) 6.

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Introduction to Business Communication

Albert Mehrabian and Susan R. Ferris, Inference of attitudes from nonverbal communication in
two channels, Journal of Consulting Psychology (1967)
31.
G. De Mare, Communicating: The Key to Establishing
Good Working Relationships Price Waterhouse Review
(1989) 33: 3037.
Gillian Butler and Tony Hope, Managing Your Mind
(New York: Oxford University Press, 1996).
J. Pearson, Interpersonal Communication (Glenview,
IL: Scott Foresman and Company, 1983).
K. Davis, Management Communication and the
Grapevine, Harvard Business Review (1953).

29

K. Davis, Where Did that Rumor Come From?

Fortune (August 1979).
Peter Andersen, Nonverbal Communication: Forms
and Functions, 2nd edition (Long Grove, IL: Waveland
Press, 2007).
Steven Pinker, How the Mind Works (New York:
W.W. Norton & Company, 1997).
Suzanne Crampton, The Informal Communication
Network: Factors Influencing Grapevine Activity, Public Personnel Management (December 1998).
Thomas E. Harris and Mark D. Nelson, Applied Organizational Communication: Theory and Practice in a
Global Environment, 3rd edition (New York: Taylor and
Francis Group, 2008).

ENDNOTES
1. Taken from <http://www.quotes.net/quote/7>, accessed
on December 30, 2010.
2. P and Q Survey, Focus, Industrial Engineering (1990) 6.
3. A. Farnham, The Trust Gap Fortune (December 1989)
4: 5678.
4. Albert Mehrabian and Susan R. Ferris, Inference of Attitudes from Nonverbal Communication in Two Channels, Journal of Consulting Psychology (1967) 31: 248252.
5. G. De Mare, Communicating: The Key to Establishing Good Working Relationships, Price Waterhouse
Review (1989) 33: 3037.
6. Taken from Crayola LLC Web site: http://www.crayola.
com/colorcensus/history/chronology.cfm, accessed on
January 3, 2011.
7. Based on the report available at http://caib.nasa.
gov/news/report/pdf/vol1/chapters/chapter1.pdf,
accessedon January 4, 2011.
8. David D. Acker, Skill in Communication: A Vital
Element in Effective Management, (Diane Publishing, 1992). Accessed from books.google.co.in/
books?isbn=1568061897 on January 5, 2011.
9. Douglas McGregor, The Professional Manager (New
York: McGraw Hill, 1967) p. 151.

10. Based on material available at: http://infolific.com/

technology/project-management/communication-barriers/, accessed on June 22, 2010.
11. Based on the material available at http://www.personneltoday.com/articles/2010/03/18/54886/social-mediaat-work-breaking-down-barriers-to-communication.
html, accessed on June 24, 2010.
12. Patrick Barwise and Sean Meehan, Is Your Company
As Customer-Focused As You Think? MIT Sloan Management Review (April 2010).
13. Adapted from Peter Sloane, How to Break Down
Barriers in Communication: To Spur Innovation,
Break Down Internal Barriers, accessed from http://
www.1000advices.com/guru/organization_innovative_
communication_ps.html, on January 5, 2011.
14. Taken from http://www.scribd.com/doc/49343759/
unilever-pulse-check-case-study, accessed on July 25,
2011.
15. Based on material taken from http://www.tata.com/
company/Articles/inside.aspx?artid=ESWi6fHvTkk,
accessed on June 26, 2010.
16. Taken from http://blog.wipro.com/blog-guidelines/,
accessed on January 6, 2011.

Case Study 1
Too Less an Information: A Barrier to
Communication?
Summary
A disciplined working environment is necessary to survive

Chapter 01.indd 29

in this competitive world, where the technology is evolving at a terrifying pace. However, too much emphasis on
rules and regulations can act as a barrier for communication within an organization, affecting its growth in the
long run.

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Introduction
Aiko Pvt. Ltd. was a leading Japanese computer-manufacturing firm with a market share of 60% worldwide. In these
technology-intensive times, each firm was putting its best
foot forward to adopt preventive measures. To prevent information leakage Aiko had appointed its new CEO, Mr Hiroshi
Karuki recently. He had recently introduced strict norms
within the organization with an aim to retain its power in
the market and prevent any disclosure of strategic information. The working environment after the changes brought by
the new CEO was a big contrast to what happened earlier.
Earlier, there had been no restriction on communication
and this resulted in tremendous amount of creativity and
innovation among employees.

Problem
In this new environment employees were discouraged to
disclose any information about new product launches. As
a result, there was a lack of proper communication between
low-level sales personnel and administration. The work of
the employees was made to go through various layers of
scrutiny without disclosing their identity. It appeared that
employees worked in a vacuum without any knowledge of
what their colleagues in the other cabin were doing.

Impact
Because of such communication barriers, there was
total lack of trust and feeling of mutuality. The environ-

ment was extremely secretive as employees were kept in

the dark about present and potential research activities.
Vertical communication was nearly made redundant.
This was reflected in the performance appraisal systems
most when close to 20 employees resigned as they felt
that their performance was not appraised correctly. Due
to limited communication between the employees and
supervisor, feedback mechanism did not serve its purpose.
Even the sales personnel at the stores were also not
informed about new product launches so that information could not be leaked out; this affected the basic operations at the stores. Simple problems became too complex
to be addressed at the retail stores. The salesmen found it
extremely difficult to cope with technical queries raised
by customers visiting the stores. Communication was
faulty, incorrect, and at times, misleading; this happened
because the salespeople were unaware about the product
details. This also impacted retail sales. Poor updates led
to poor planning at the business level affecting market
share.

Questions
1. What do you think should constitute the action plans of
Hiroshi at this juncture?
2. Is communication the same as information? How is too
less communication a barrier to productivity?

Case Study 2
Faulty Assumptions and Loss of Money
Summary
ABC Inc. for the first time introduced the mobile payments
technology in the market and committed XYZ mobile services for the delivery of the same. The employees needed
to be trained in digital payment technology to understand
the mobile payment technology. The chief technology
officer of ABC Inc., Mr Ratan Birla assigned the training programme to Mr Raj Shah, a subject matter expert
in mobile technologies. The training programme did not
add any value to the employees and ABC Ltd. missed the
deadline ending up paying a contractual penalty to XYZ
mobile services.

Introduction
Mr Ratan Birla was the CTO of ABC Inc. which was a
global provider of financial services technology. The company served more than 11,000 clients worldwide, including banks, thrifts, credit unions, investment management
firms, leasing and finance companies, retailers, merchants,

Chapter 01.indd 30

and government agencies. ABC had been ranked the largest provider of payment technology services to the financial
services industry worldwide for six of the past eight years.
In 2015, ABC Inc. reported total revenue of $4.3 billion. It had developed a new mobile payment technology
and entered into a contractual agreement with a leading
mobile services provider, XYZ mobile services. Ratan Birla
was supposed to organize training programme for the
employees of ABC Inc. on the mobile payment technology.
Mr Birla assigned this work to Mr Shah, a subject matter
expert in mobile technologies. He created a schedule for
the same.

Problem
Mr Shah received a mail from Mr Birla about the training
program on mobile payment technology. The program was
aimed at training the employees of the whole business unit,
which was supposed to be working on this deliverable to the
XYZ mobile services.
Mr Birla sent a mail to the business unit regarding the
training programme and mentioned about the trainer and

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Introduction to Business Communication

the schedule. Mr Shah believed that people could not understand the mobile payment technology unless they had prior
knowledge of digital payment technology. He assumed that
Mr Birla must have selected the trainees who had to be
trained on digital payment technology.
The training programme started; however most trainees did not have a prior knowledge of the digital payments.
Mr Shah began the training without gauging the audiences
comfort level with the technology and directly jumped on
to the topic of mobile technology. Most of the audience was
quite at sea, having no knowledge about the jargon Mr Shah
was spouting.
As the training programme progressed, a large number
of participants lost interest and dozed off; the productivity
of the programme severely deteriorated. No one among the
employees interrupted due to peer pressure (what will other
people think?). Asking questions would be considered as
evidence of poor awareness and was avoided by most of the
participants.
The training programme ended without any value addition to the participants. There was no feedback taken on the

31

training programme and the employees were directly put on

the project.
While working on the project, only the employees who
had understood the mobile technology were able to work;
the rest struggled causing a dip in the productivity and
wastage of time.

Impact
This caused the time required to complete the project to
increase beyond the estimate and threatened the deadline
for the deliverables of the project. The timeline for the project had to be re-estimated. It resulted in the extension of
the deadline which had a monetary impact on ABC Inc. as
it was contractually bound to deliver to XYZ mobile services
on the aforementioned date.

Questions
1. How could the problem been prevented?
2. What communication issues are necessary to facilitate
training programme effectiveness?

Case Study 3
Communicating Job Responsibilities to Problem
ABC had about 3000 employees in four job categories,
Avoid Confusion
Summary
ABC Repairing Co. is a large laptop repairing and maintenance firm that operates in all major metro and cities across
India. It provides laptop repairing solutions to a sizeable
number of users who own desktops or laptops and require
quick, reliable and accurate repairing solutions. The firm
has become a major national-level player in repairing business in the last 10 years. It had currently recorded a decline
in market share and needed to revisit communication fundamentals at the workplace.

Introduction
Anil Bajaj was the regional manager of ABC Repairing
Co. for more than two years now. He worked for a competitor before joining ABC. Though ABC paid more, he
still felt that the work environment was not as vital or
energetic as it was with its competitor. This, he felt has
affected their level of motivation. When he conducted
a survey to collect information from the existing customers, his fears were confirmed. Although a majority
of respondents said they were satisfied with the overall
experience, 40% felt their experience was not at all good.
Anil is wondering whether it is the lack of communication that is causing this widespread dissatisfaction with
the company.

Chapter 01.indd 31

namely technicians, engineers, order processors, and billing

representatives. Engineers were the highest paid; therefore,
customers attended by the engineers were billed the highest.
Technicians were paid about one-fourth of what was paid
to the engineer. Therefore, customers attended by technicians were billed modestly. The order processors received
calls from customers who then decided whether to send
an engineer or a technician to attend the customer. Once
the customer was attended by either of the two, the billing
representative called the customer to inform him about the
charges that he/she needed to pay.
As the customer was not able to explain the exact technical nature of the problem and the order processor was not
competent in this regard, the order processor was unable
to decide whether to send a technician or engineer. Often
he sent an engineer when the problem just required a run
of antivirus or reboot. This resulted in not only demotivating the engineer but also let the billing representative bill a
higher amount to the customer than what the actual should
have been. The customers felt that they were overcharged
and that the service charges were too expensive.
Similarly, a technician was sometimes sent in place of
an engineer. When the technician was unable to complete
the task, the customers were disappointed. They expected
a trained engineer to resolve the technical issues but had
to be content with sub-par services with repeat visits and

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Business Communication for Managers

over billings. Moreover, the technician scheduled visits by

engineer and the billing representative charges the customer
both for the technician as well as engineer. This led to loss
of time and payment of additional expenses on customers
part.
The billing representative claimed his innocence over the
matter stating that as he/she was charging the customer as
authorized by the sales department. The job was clerical in
nature and the job description of these employees required
them merely to follow stipulated orders.
The order processors on the other hand claimed that they
allocated an engineer or a technician to the best of their
understanding of the issue. They claim innocence over this
entire engineer vs. technician debate. The engineer and the
technicians, on the hand, thought that they had no role to
play in deciding who had to go where and when.

Impact
The customers started complaining about the poor service
that they were getting from the Company. They criticized
the company for sending mere technicians for complex
jobs and engineers for minor repairs. They also complained
about the high rates charged by the engineers and did not
respond to the bills sent by the billing representatives. This
reduced the number of customers and led to a decline in
revenues.

Questions
1. How should Bajaj resolve the issue?
2. What is the importance of clear cut communication to
employees?

Quote
Effective communication is the life blood of all organizations. With the inroads technology has made in our working lives, the
challenge before us is to ensure communication stays relevant and timely. Successful organizations need to deliver consistently, and communication is a powerful means to that end.
Reshma Zaheer, COO, TT Logistics & Cargo Pvt. Ltd.

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