CHAPTER ONE

1. COMMUNICATION: AN OVERVIEW
1.1 Concept of Communication
Introduction
What is communication?
The word communication has been derived from the Latin word “communes” which means
“common” thus, communication is the exchange of information between a sender and a receiver.
According to this communication is the concept of transferring of information and the
exchanges of message, ideas and the understanding between the people for the purpose of
achieving common meaning.
Generally, the word communication means the act or process of giving or exchanging of
information, signals, or messages as by talk, gestures, or writing.
Technically speaking, in the act of communication, we make opinions, feelings, information,
etc known or understood by others through speech, writing or bodily movement.
Definition of Communication
The following definitions can help us to understand the meanings of communication from
different perspectives.
According to Murphy and Peack definition “communication is a two way process of
exchanging idea or information between human being.” This means Communication is the
sum total of all things one person does when he/she wants to create outstanding in the minds
of the other which includes systematic and continuous process of telling, listening and
understanding.
Based on koontz and O’Donnell” Communication is the process of conveying messages
(facts), ideas, attitudes and opinions from one person to another person.”
H.W Cumming defined communication as an exchange of facts, ideas, opinions or emotions
by two or more person.
Communication is the process of people sharing opinion, ideas and feelings with each other
in commonly understandable ways. (Hamilton and Parker).
It is defined in the Merriam-Webster’s dictionary as “a process by which information is
exchanged between individuals through a common system of symbols, signs, or
behavior.” Merriam-Webster online dictionary. (2008).
 According to Lasswell (1948) classic definition of communication, he defines
communication as: who (source or sender), says what (message), in which channel
(medium), to whom (audience or receiver), with what effect.
Communication is the life blood of any organization and its main purpose is to effect change
to influence action.
In any organization the main problem is maintaining effective communication process. The
management problem generally results in poor communication. Serious mistakes are made
because orders are misunderstood.
To summarize, communication has been defined as:
 A process of passing information and understanding
 A two way process of reaching mutual understanding
 The act of making one’s ideas and opinions known to others.
 The process of imparting ideas and making oneself understood by others
 The transmission and accurate replication of ideas ensured by feedback for the purpose of
eliciting actions.
 A systematic and continuous process of telling, listening and understanding.
The Communication Situation
How communication exists? Communication exists when:-
The sender or transmitter who desirous of passing some information
The receiver, the whom the message or information is passed on
The receive should partly or wholly understand the message passed on to him
There should be some kinds of feedback, the receiver should respond to the message
The channel of communication, the way how the message is transmit
How we communicate?
We communicate in several ways:
1. Written communications—like:- letters, memos, reports, e-mail, faxes
2. Oral communications—like:- one-on-one meetings, phone conversations, speeches, video
conferencing, group meetings
3. Nonverbal communications—like:- Body language (eye contact, facial expressions ), physical
appearance etc…
Some of the silent messages people convey through nonverbal communication consist of:
 a) Eye contact—indifference, wandering
b) Facial expressions: smile (agreement), frowns (disagreement, surprise
c) Body language: folded arms (closed to suggestions); sitting upright (confidence, pride)
d) Tone and volume of voice: emotions conveyed through pitch, etc.
e) Physical appearance: clean, well dressed etc…
Therefore non-verbally may communicate more than our spoken words.
Why We Communicate
People communicate for different reasons. Those include:
 To inform (E.g.:- to provide information on a new product line)
 To request (E.g.:- request information on a product)
 To persuade E.g.:- (convince someone to buy a product, deal with an organization)
 To build goodwill (E.g.:- congratulations, thank you)

There are at least three general types of communication goals:

1) Self Presentation Goals (who we are and how we want to be perceived),
2) Relational Goals (how we develop, maintain, and terminate relationships),
3) Instrumental Goals (how we manipulate others, gain compliance, manage interpersonal
conflict, use and recognize interpersonal influence strategies (anchoring and contrast effects,
reciprocity, commitment, liking, social proof, authority, and scarcity etc.)
COMMUNICATION STYLES
In general terms, interpersonal communication can be classified as either one-way or two-way.
One-way communication occurs when the sender transmits information in the form of
direction, without any expectation of discussion or feedback.
For example, a manager may stop by an employee's desk to inform him that a certain project
will be due the following day. One-way communication is faster and easier for the sender—
because he or she does not have to deal with potential questions or disagreement from the
receiver—but tends to be overused in business situations.
In contrast, two-way communication involves the sharing of information between two or
more parties in a constructive exchange.
For example, a manager may hold a staff meeting in order to establish the due dates for a
number of projects. Engaging in two-way communication indicates that the sender is receptive to
feedback and willing to provide a response.
LEVELS OF COMMUNICATION
Communication can be categorized into four different types, depending on the nature of the
interaction.
Intrapersonal communication is a type of communication whereby a person interacts with
himself/herself. This type of communication is intrinsic or reflective. Intrapersonal
communication is communication that occurs in your own mind. It is the basis of your
feeling, biases, prejudices, and beliefs.
 Examples are when you make any kind of decision.-What to eat or wear.
 When you think about something- what you want to do on the weekend or when you
think about other person.


Interpersonal communication is a type of communication where there is one-to-one

interaction or interaction among a small group. This is the most commonly used/practiced
form of communication. Interpersonal communication is the communication between two
people but can involve more in informal conversations.
 Examples are when you are talking to your friends. A teacher and students discussing
an assignment. A patient. A manager and a potential employee during an interview.
Small group communication is a type of communication where interaction between
different groups takes place. Small group communication is communication within formal
or informal groups or teams. It is group interaction that results in decision making, problems
solving and discussion within an organization.
 Examples would be a group planning a surprise birthday party for someone. A team
working together on a project.
One-to-group communication-involves a speaker who seeks to inform, persuade or
motivate an audience.
 Example-are a teacher and a class of students. A preacher and congregation.

Mass communication is a type of communication where a large body (millions of people) of

people is addressed. Mass communication is the electronic or print transmission of
 messages to the general public. Outlets called Mass communication included things like
radio, television, film and printed materials designed to reach large audiences.

Basics for Communicating Effectively

The following are basics for communicating effectively:
Determine the purpose of your communication: Why is the communication necessary?
Identify the audience: Who is the receiver of the communication?
Consider what the audience needs to hear.
Develop a clear, concise, correct and logical message.
Maintain a positive attitude. (Attitude in writing can be reflected in the word choice).

To give information to others and to gain information from them, ask yourself the
following questions.
What? Decide what to communicate.
When? Decide when to communicate.
Why? Decide why you are communicating.
Fit the communication Make it relevant to your audience.
How? There are lots of ways to communicate.
Review, Review the effectiveness of each method from time to time,
For developing your communication ability/skill, you must do three things:
1. Analyze good and bad examples of communication (many examples, both good and bad) can
be found in the text.
2. Use the principles and techniques of good communication (7c’s).
3. Practice creating your own communications (practice, practice and again practice)
CHARACTERISTICS OF COMMUNICATION
The following are some of the characteristics of communication
a) Communication is a process.
b) Communication is symbolic-gestures, sounds, letters, numbers and words represent an idea
meant to communicate.
c) Communication is contextual-the meaning may vary depending on contexts
d) Communication is purposive- it is done to share meaning, to impart information or
influence.
e) Communication is two way process.
f) Communication involves people.
What Is Contemporary Business Communication?
In an increasingly diversified and interconnected world, contemporary business communication
too is changing. Contemporary Business Communication is a theory-based "skills" course
designed to acquaint you with the theoretical and practical knowledge of essential
communication and management skills needed in business. Our aim is for you to think critically
about how and why you communicate as well as give you practical strategies and skills to
communicate with your business well. A fundamental objective of Contemporary Business
Communication is to link effective written and oral communication.
What is a business communication?
Business communication is the process by which people seek to share meaning (business
information/idea) via the transmission of symbolic message. This definition contains the
following points.
 It involves people trying to understand, how people relate to each other
 It involves shared meaning, people agreement on some terms (ideas)
 Involves symbols, which can be gesture, sounds, words, letters, numbers, etc.
Business communication is the process by which people seek to share meaning via the
transmission of business messages.
According to Kotler business communication is an interactive dialogue between the company
and its customers.
Business communication plays the role of developing employee’s attitude in promoting
coordination of performance and job satisfaction in doing jobs.
The term business communication is used for all messages that we send and receive for official
purpose like running a business, managing an organization, conducting the formal affairs of a
voluntary organization and so on.
Business communication is marked by formality as against personal and social communication.
The success of any business to a large extent depends on efficient and effective communication.
It takes place among business entities, in market and market places, within organizations and
between various groups of employees, owners and employees, buyers and sellers, service
providers and customers, sales persons and prospects and also between people within the
organization and the press.
Business Communication is goal oriented. The rules, regulations and policies of a company
have to be communicated to people within and outside the organization. Business
Communication is regulated by certain rules and norms.
The objectives of business communication
The main objective of all communications in an organization is the general welfare of the
organization. Communication can be used for any or more of the following objectives:
i. To inform: the first and foremost objective of any communication is to inform. In today’s
world, information is power. Communication brings power through information. The
dissemination of information converse a wide range of areas, both internal and external. People
within the organization have to be kept informed about the organizational goals, objectives,
procedures, processes, systems plans, priorities and strategies. Equally important is the objective
of ensuring effective external communication with customers, prospects, competitors, suppliers
and the public, about products and services, plans, happenings, events and achievements. Some
of the expels of communication media used for this purpose by organizations are;
 Interoffice memo/notice announcing meetings
 Telephone calls a customer makes to ask the price of a commodity,
 Employee handbooks explaining a new benefit
ii. To educate: Another objective of communication in an organization is to educate, i.e.., to
disseminate knowledge and develop skills and attitudes among the people working in the
organization. There is also a need to familiarize them with the systems, procedures and
processes. This process of education may extend to customers as well. This may be done
through; personal conversation in which a co-worker is requested to serve as a volunteer in fund-
raising activities; sales letter announcing clearance of merchandise; report to management on the
need to purchase a new computer , etc.
iii. To train: communication is an integral component of any training program. Business
organizations need to train people to achieve proficiency in specific skills. They have to provide
working knowledge and attitudinal inputs through training programs to employees at various
hierarchical levels. Training sessions involve teaching instruction, demonstration, practice and
discussion. The process of communication is integral to each of these.
iv. To motivate: people in any business organization have to be motivated to pursue goals and
achieve higher levels of performance, high levels of morale and motivation are a must to ensure
high levels of productivity and efficiency on a sustainable basis.
Communication provides the means to keep the motivation levels high. Talks, lectures, films,
meetings, workshops and non-verbal messages are among the means used to motivate people.
v. To integrate: Large business organization has different business units, department and
territorial divisions. Each of them pursues different goals, sub-goals and target sections.
Communication provides the means for an integrated approach in pursuing organizational goals.
Effective communication is vital to ensure that people working in different functional and
geographical areas are integrated. Communication binds together people working for a common
objective and helps team-building.
vi. To promote: promotional efforts are a must for any organization to fully achieve its
objectives. One of the marketing promotions relates to various activities. Such as advertising
publicity and public relations through effective communication. In the marketing concept the
customer is said to move from stage to stage till the translation is completed. They move
progressively from the state of awareness of the need for a product to the knowledge of the
product, and thereafter to a state of product preference. The needs of the customers develop into
effective demand for products, resulting in the purchase of the product or availability of the
service. Promotional aspects of the service are particularly relevant in a service industry like
banking or insurance. For this they have to organize effectively promotional measures, which
seek to inform, educate, persuade and actualize the clients/markets.
vii. To Facilitate: effective communication is to facilitate organizational activities. Like
organizational decision making: decision making is spread across all the functional areas
personnel, marketing accounting, production and maintenance. Day-in day-out, people in
organizations keep taking decisions at various hierarchical levels. People at higher levels in the
organization command respect depending upon their decision making abilities. Any such
decision making, however, depends on the availability of adequate and timely inputs. It calls for
facts, figures, analysis, deliberation, classification, confirmation and evaluation. Communication
both oral and written in general facilitates decision making in any business organization.
1.2 Significance of Communication
As everyone knows that communication is very important to understand each other, to exchange
Ideas, and to express your thoughts. Communication plays a vital role in the success of everyone
life. Organizations are totally reliant on communication, which is defined as the exchange of
ideas, messages, or information by speech, signals, or writing. Without communication,
organizations would not function.
The ability to communicate is important in all aspects of life. In business, having excellent
communication skills is requested by employers recruiting and promoting individuals. A
successful applicant should have excellent communication skills, both oral and written. The
ability to communicate effectively with others is named by many employers as a top attribute of
the successful business person.
If your communication skills are poor, others tend to question your abilities. Accuracy in
speaking, spelling, punctuation, and grammar reflect on your abilities. Employees are judged on
their competence in these areas. Your communication skills reflect on your organization’s image
as well as your image.
Presenting yourself well in both oral and written communication projects a favorable image of
both you and your organization. Or develop goodwill or positive image.
Effective communication can be contributed for the organization on the following manner:-
 Develops an attitude that promotes the coordination of performance and job satisfaction.
 To perform and operate any personal and organization activities.
 Provide valuable information for on organization and employees.
 Effective communication promotes the spirits of understanding and cooperation.
 Support a business organization to be competitive.
 Helps for meetings of personal responsibilities.
 To evaluate or collect information such as performance evaluation record, quality control
reports, budget performance reports.
 To instruct workers by means of instructional manuals, oral directions
 Clear up problems- eliminate or reduce misunderstanding in the organization and overcome
grievance.
 Served to persuade information for the other party or organization
 Communication facilitates customer relation, labor relation, marketing process, public
relation, sales, teaching, researches, promotion etc…
The following points highlight the importance of communication:
A. Connection:- is the most important factor between sender and receiver. Without connection,
no one can build any relationship with others. And most importantly, communication helps one
to connect with others.
B. The Basis of Coordination:-The manager explains the organizational goals, achievement,
interpersonal relationships and organizational goals to the employees.
C. Growing Specialization:- An increase in departments has headed to the requirement of
specialization inside the organization.
D. Competition-Due to globalization and liberalization, intense competition has resulted
between public, private, and foreign banks.
E. Decision Making:- Proper communication provides information that is necessary for decision
making for the managers.
F. Trade Union Movement:- Basically, trade unions are very powerful and strong. Consulting
and regular exchange of information helps to maintain a healthy relationship between them.
G. Human Relations:- To develop confidence and mutual trust, it is important for both
employees and management to communicate with each other.
H. Public Relations:-Every organization wants to keep it’s stakeholders, government, customers
and the other section of the society informed about its products and contribution to the society. It
helps to build goodwill for the organization.
I. Personal:- Good communication skills are required for every successful job. The ability to
communicate in an effective manner is equally important for promotion in a career. A manager
should be a good public speaker and every employee should have the proper sense of
communication to maintain their interpersonal relationships.
J. Interpersonal relationships- Communication is the key to sharing a good relationship with
your family members. Through Communication, family members share their sorrow, happiness,
thoughts and stories. It helps you to share a good relationship with your family.
1.3 Communication in Value chain Management
Effective communication can make the value chain faster, more efficient and more effective than
ever before. When standards, best practices, and priorities are communicated properly, every
touch point along your value chain is essentially improved. Every last resource is being used to
its maximum potential to align what the value chain is capable of with your long-term objectives
as a business. People are working smarter, not harder, and both you and your stakeholders are
enjoying the benefits - particularly in terms of cost-savings.
When you consider the fact that the number of entities in the value chain has increased over the
years, it makes clear communication at all levels even more important. Without communication,
you take a problem and turn it into a much bigger and more expensive one in an instant.
Therefore for achieve maximum productivity; enhanced communication needs to be introduced
throughout the entire value chain – including suppliers, traders, processors and retailer.

Fig. 1.1 Role of communication in value chain management

Advantages of Effective Communication in Value Chain Management
For a value chain management professional effective communication is a crucial element in the
job. The communication with co-workers, clients and customers etc need to be managed
effectively to make the value chain achieve success.
The following are some of the advantages of effective communication in the value chain.
Increasing Productivity
If the communication is effective then there will not be any need for repeated communication.
There will not be any necessity for clarifying often and wasting time. It is necessary to make the
communication clear by making the subordinates and superiors understand the matter effectively.
Setting priorities and assigning tasks will become easier and this will lead to increased
productivity.
Improving the Morale
When the communication between a value Chain Manager and worker is clear it boosts the
morality of the workers and improves their performance. If the communication between the
management and employees are effective then the confidence of the employees will increase.
Expectations of the employees will be fulfilled through clear communication which will improve
the morale of the employee.
Developing a Team
When the communication between the value chain Managers and employees become clear it can
contribute to the building of a successful team. If the expectations and goals of both employees
and management become aligned it will lead to a strong team.
Employee Recognition
Every manager should learn how to properly recognize employees in the workplace.
Recognizing an employee for their hard work shows that you value their contributions to the
organization. Again, this is another communication strategy that will motivate employees to do
better.
Employee Coaching
Finally, there is the discipline of employee coaching. Successful managers should be having in-
depth conversations with employees about performance about once every quarter at least.
 Communication is Motivating - Communication is a life force. If employees know
where they stand in the work place, and they feel comfortable in that environment, they
will be motivated to do good work

Effective communication is essential for management to successfully perform its functions.

Following points need interaction with employees for successful running of an organization
 Organizations policy and future plans
 Achievement of higher productivity
 Industrial safety, health and welfare measures
 Personal growth prospects
 Smooth Working of a Business Firm
 Basis of Managerial Function
 Maximum Production and Minimum Cost
 Prompt Decision and its Implementation
 Building Human Relations
 Job Satisfaction and Good Morale
 Contacts with external Parties.
Communications can also be said to fulfill the following functions in an organization.
 Instructive Function
 Influence Function
 Integration Function
 Informing Function
 Evaluation Function
 Directing Function
 Teaching Function
 Image Projection Function
 Interview Function