Business Communication

 The term communication is procured from the Latin word called ‘communicate,’
which means to share.
 Communication is the transfer of information from the sender to the receiver with the
information being understood by both the sender and the receiver.
 Refers to the passing of information between two or more parties.
 Effective communication refers to the successful exchange of information between
people, including feedback

Importance of communication in business

 For marketing purposes – businesses need to communicate with potential and actual
customers to research their needs. Businesses also inform their customers of the
products that they are selling through a variety of promotional activities and public
relations events to present the business in a positive light to its stakeholders.
Communication also includes negotiating with customers on the prices of goods and
services.
 To ensure effective operation of the business - internal communications are
essential to ensure that operations are organised effectively. For example, meetings
may be held to discuss how to respond to a large order or complaints from customers.
Also, communications will be necessary with suppliers to order raw materials or
components and to manage delivery.
 For managing the workforce – effective communication is essential to create and
maintain a productive workforce. This category of communication will include the
process of recruitment. Negotiations with trade unions or other employee
representatives over pay and working conditions as well as appraisal interviews are
further examples of this category of information.
 For communication of financial information to interested parties – information on
a business’s financial information is vital for effective decision-making at all levels
within the organisation. Junior managers will require budgets to enable them to
control expenditure and to act as targets for revenue. More senior managers might
 look at data relating to cash flow and profitability produced by the business’s finance
department. This type of communication will also take place externally when
businesses send invoices to customers or pay those send by the suppliers
 Facilitates the provision of key or legally required information to external
parties – most businesses are obliged to communicate with external parties to provide
key information. There should be a two way of communication the business and the
tax authorities in order to establish any liability to pay taxes. Public companies should
also publish annual financial statements containing specified information on financial
and other aspects of the business’s performance.
 For providing instructions and commands to employees – It provides a mean to
command other individuals to perform certain duties. It is through communication
that the person is able to deliver exact instruction to perform a specific job and
thereby gaining a certain amount of control over the actions of the subordinates and
juniors
 It integrates people together working in a company – Communication provides a
way to put together different individuals under one group. It helps to build a robust
inter-personal relationship and can aid in making an understanding between different
individuals to express their ideas and thoughts to others.

Communication process model

 Communication models can be grouped into the following:

1. Communication as a linear process with a sender sending a message to a receiver
(Transmission Model),
2. Communication as a two-way process with information and feedback going back and
forth between sender and receiver and understood through the lens of each
participant’s context (Interactive Model),
3. Communication as an almost instantaneous process with participants creating and
negotiating meaning simultaneously (Transaction Model).

The transactional model of communication is a more simplified model for understanding the
communication process. Developed by Dean Barnlund (2008), the transactional model can be
understood as a circular model of communication, more focused on the simultaneous
interaction of participants than a linear process (Figure below).
The diagram below shows an example of a communication process model.

Elements of communication process

Sender (or source)

 This represents the individual who's delivering a message to a recipient. It's where or
from whom information originates.
 The communication process begins with the sender, who is also called the
communicator or source. The sender has some kind of information — a command,
request, question, or idea — that he or she wants to present to others. For that
message to be received, the sender must first encode the message in a form that can be
understood, such as by the use of a common language or industry jargon, and then
transmit it.
 For example, if a manager wants to inform his subordinates about the introduction of
a new product, he is the sender.

Encoding
  Since the subject matter of communication is theoretical and intangible, its further
passing requires use of certain symbols such as words, actions or pictures etc.
Conversion of subject matter into these symbols is the process of encoding.
 It is the process of converting the idea, thinking or any other component of message
into symbols, words, actions, diagram etc. For example, message is connected in
words and actions.
 It involves choosing the appropriate words and order to deliver the intended
information to an audience or a receiver. A useful technique for the sender to improve
their message encoding is to imagine the communication from the receiver's
perspective mentally.

Channel/medium

 Is passage or route through which encoded message is passed by the sender to the
receiver. There can be various forms of media-face to face communication, letters,
radio, television, e-mail etc. For example manager inform about the introduction of a
new product in a meeting through presentation.

Decoding

 The person who receives the message or symbol from the communicator tries to
convert the same in such a way so that he may extract its meaning to his complete
understanding.
 It means translating the encoded message into language understandable by the
receiver.
 Decoding is conducted by the receiver. Once the message is received and examined,
the stimulus is sent to the brain for interpreting, in order to assign some type of
meaning to it. It is this processing stage that constitutes decoding. The receiver begins
to interpret the symbols sent by the sender, translating the message to their own set of
experiences in order to make the symbols meaningful. Successful communication
takes place when the receiver correctly interprets the sender's message.

Receiver
  He is the person to whom the message has been sent. For example, subordinates are
receivers.
 The receiver is the recipient of the message and must translate the words into
thoughts, process the thoughts, and determine how to respond to the sender.
 The challenge is that since the receiver’s education and experience may be very
different from the sender, words often have different meanings.

Feedback

 The communication process reaches its final point when the message has been
successfully transmitted, received, and understood. The receiver, in turn, responds to
the sender, indicating comprehension.
 Feedback is the process of determining if the message has been properly received.
This can be initiated by the sender or receiver. The sender, for example, may ask the
receiver to repeat the message to confirm that the message was received as intended.
On the other hand, a good listener will provide feedback to confirm that he/she
correctly received the message.
 Feedback may be direct, such as a written or verbal response, or it may take the form
of an act or deed in response (indirect).

Channels of communication

The different channels of communication in a company include the following:

 Horizontal communication
 Vertical communication
 One way communication
 Two way communication

Horizontal communication

 Horizontal communication is the practice of sharing information among employees

from different departments in the organization at the same level of hierarchy.
  It is also referred to as lateral communication' because the flow of information occurs
laterally across departmental boundaries.
 Horizontal communication facilitates transmitting information across the
organizational levels rather than pieces coming from top to down.
 The goal of this practice is to promote coordination and cooperation among
employees with a similar rank, position, or status in the company.

Advantages of horizontal communication

 It ensures goods coordination among the departments – The most significant

objective of horizontal communication, coordination between teams and departments
ensures smooth functioning of business operations. Lack of coordination can affect
the business performance adversely. Horizontal communication helps authorities
promote coordination among different departments thereby improving the overall
efficiency and productivity.
 Guards against distortion of information – As horizontal communication occurs
between employees in the same level of the hierarchy, messages are passed directly
and there is no risk of information getting misinterpreted or distorted.
Since horizontal communication takes place between the managers at the same level,
information reaches directly from sender to receiver. This direct communication
reduces distortion of information.
 Quick communication – Horizontal communication happens more quickly as
compared to other communication methods as the information flows within the same
levels of managers and there are no formal layers. Therefore, it becomes easy to
mitigate or solve complex problems in the organization.
 Instant problem solving – Horizontal communication allows quick transmission of a
message in a warm communication. Therefore, it becomes easy to mitigate or solve
complex problems in the organization.
 It helps in increasing the efficiency of inefficient managers – Managers holding
similar positions may not be equally competent in all respects. Some of them may
lack required efficiency, ability, and intelligence in some areas. In such a situation, if
managers share their ideas, opinions, and attitudes among them, inefficient managers
can improve their deficiencies and can contribute a lot in achieving organizational
goals.
  Development of informal relationships – Horizontal communication promotes
informal relationships among the parties involved in communication. Informal
relationship is created as it provides the opportunity of free, fair and friendly
exchange of information. As a result, healthy and congenial working atmosphere
prevails in the organization

Disadvantages of horizontal communication

 Not effective when there are rivalries between the departmental managers –
Horizontal communication occurs between the people at the same rank and position.
If there exists any aggression or competition between them, they will not swap
information impulsively. Rivalry within organizations occurs for example when the
different levels of an organization fail to collaborate with one another. Moreover, they
will conceal their information intentionally to deprive someone of the real news.
 May not be effective due to interdepartmental conflicts – The success of horizontal
communication depends on good relationship between sender and receiver. If there is
any conflict, distrust or suspicion between them, horizontal communication will be
ineffective. Rivalry within organizations occurs for example when the different levels
of an organization fail to collaborate with one another.
 Waste of time in gossiping – Horizontal communication may make employees too
friendly with each other and there is possibility that they will waste their time in
gossiping.

Vertical communication

 Vertical communication is a form of communication that occurs between two

individuals who are at different positions of hierarchy within the same organizations.
 It follows a a linear system where information flows from one individual to the next
as per their titles.
 Some examples of vertical communication include instructions, formal reports,
business orders, and work reports.

Types of vertical communication

Downward communication

Downward communication involves the dissemination of information or orders from the

senior management to associates.

Some of the purposes of downward communication may include:

 Implementing new objectives and announcing them to the staff.

 Explaining new organizational procedures to intern or new employees.
 Socializing with the staff and building a friendly and cooperative atmosphere with
them.

Upward communication

 Refers to the flow of information from the associates or subordinates to the senior
management,
 This is done by the employees to update the supervisors or managers by providing
work reports or to share important information.

Some purposes of upward communication involve:

1. Updating the senior management with regards to the difficulties and issues faced by
staff members.
2. Suggesting changes to improve workflow and productivity.
3. Providing updates regarding results.
4. Informing the top-level management about any grievances and complaints.

Advantages of vertical communication

 It brings the people into the communication network – Vertical communication

brings all the people working at various levels of an organization within the scope of
communication. Both downward and upward communications are allowed in vertical
communication which ensures proper feedback. Instructions or directions for the
appropriate execution of official functions can be transmitted through this
communication.
  Essential in informing organisational goals and plans – Vertical communication is
the means of informing organizational goals, plans, programs, policies, etc. to the
subordinates. Through this communication system, upper-level management can send
the policies and procedures to the subordinates.
 Communication of directives from the superiors – It also helps in communicating
and implementing orders, instructions and advice of the superiors. Duties and
responsibilities can be delegated among departments thorough vertical
communication.
 Essential in conveying the messages of subordinates – Through the upward
direction of vertical communication channels, subordinates can convey their
suggestions, complaints, recommendations, and opinions to their superiors. As it
follows the formal media it has documentary evidence which can be used in the
future.
 Maintains the chain of command – Established chain of command can be easily
maintained through vertical communication. People at levels of the organization
somehow come within the scope of vertical communication and communicate among
them by following an established chain of command. Under this communication
system superior and subordinates exchange message straight. So there is no chance to
by-passing. So, a sense of discipline may be developed among the employees.
 Helps in identifying the problems of employees – The upward pattern of vertical
communication help to know the employees’ attitudes and to identify their problems.

Disadvantages of vertical communication

 Delays in the communication process – The vertical communication system is a

delayed process. It occurs through a series of steps from one level to the next. It
maintains the long chain of command in large organizations to exchange information.
This causes delays in the communication process.
 Ineffective communication – In many cases, vertical communication becomes
ineffective as the sender and the receiver differ in their respective positions or
designations. Due to difference in the status or position of the communications,
smooth flow of information is blocked and communication becomes ineffective.
The downward direction of vertical communication is commanding in nature. So,
there is no opportunity for the workers to become efficient.
  Loss or distortion of information – Information may be fabricated by the employees
to maintain a lengthy channel. When vertical communication takes place through a
long organizational hierarchy, information losses its original shape and becomes
distorted. So, through his communication information may lose its originality.
 Possibility of breaking the chain of command – Possibility of breaking the
established chain of command is another burning drawback of vertical
communication. In vertical communication, someone may communicate by ignoring
immediate subordinate or superior. This kind of communication will hamper the
entire communication process in the organization.
If the staff lacks respect for the top-level management, the chain of command and
discipline is likely to be broken. Reputation is, therefore, crucial.
 It is the slowest system of communication – Vertical communication is the slowest
communication method because it requires passing through the various levels of an
organization. For this, it may become ineffective.

One way communication

 One-way communication is defined as a process of transmitting information from a

sender to receiver without any facility or expectation of feedback or reply.
 It is a faster method for transmission in comparison to others.
 It includes instances in which a business leader speaks or sends out messages to
individuals, small groups or large groups of employees without input or response.
 Information flows from the sender to the receiver and ends there
 Feedback is neither necessary nor expected
 Used to transmit simple messages, orders, updates, and announcements
 Examples include group emails, newsletters, presentations, speeches, radio/TV
broadcasts, memos on the notice board, etc.

Advantages of one way communication

 Fast way of communication – no or less feedback from various levels of management

that must be analysed. It facilitates quick decision making
 Elimination of disturbances on the part of the sender
  It is convenient or suitable in some occasions e.g. in crisis management. The leader is
in complete charge of the situation and is focused on problem-solving,

Disadvantages

 The receiver cannot communicate any misunderstanding with the sender. – no

feedback
 Little audience participation – it means a leader rarely value or seek input from others.
Can reduce employee morale
 There is no feedback from the receiver – no room for lower level employees to raise
their concerns. The leader cannot understand whether the subordinates have
understood or not
 It discourages input from subordinates – no or fewer meetings and discussions on
processes and work implementation. he/she might reject ideas basis his personal
preference, which discourages team members from giving new creative ideas. Maybe
due to a lack of trust on the part of subordinates

Two way communication

 Can be defined as a type of communication in which both the parties involved in the
conversation transmit the message or share the information.
 It is circular – information continuously flows back and forth from the sender to the
receiver
 Feedback is expected and encouraged
 It improves understanding and the relationship between sender and receiver
 Examples include staff meetings, face-to-face conversations, video calls, phone calls,
etc.

Advantages

 Job satisfaction – In two way communication subordinates can share their opinions,
suggestions, complaints and grievances with their superiors. It makes employees feel
highly valued. Helps employees to fulfil their need of recognition. It will increase the
 job satisfaction of the employees and they will think themselves important for the
organization. Therefore, two way communication helps to increase job satisfaction.
 Management can take better decisions after considering the feedback of
employees
 It creates a democratic environment in the company – two way communication
helps to establish a democratic environment in the organization as it permits free
exchange of information. In democratic environment both the subordinates and
superiors get the opportunity to share their opinions without hesitation. This practice
enables the managers take better decisions as they get feedback from their
subordinates.
 Increasing the efficiency of business – In two way communication system the
supervisor and subordinates can come close contact to each other. It helps to establish
good relationship and remove misunderstanding among them. If there is a healthy
relationship between the management and labour, it will increase the efficiency of
both the parties.
 Accuracy of understanding – If there is any ambiguity or confusion in the
information received, it is necessary to remove the misunderstanding immediately.
Two way business communication solves this problem and enhances the accuracy of
understanding. It ensures no errors in production.
 Completes communication system – Two way communication is considered as a
complete business communication system because here both the sender and the
receiver get the opportunity to share the information or message. It is a complete
communication also because it fulfils the provision of feedback without which
communication is incomplete and ineffective.

Disadvantages of two way communication

 It is time consuming – Two-way communication is time-consuming. An employer

discussing with a subordinate worker is an example of a two -way communication. In
such a situation, a lot of time is consumed because either party will try to convince the
other. It crisis it is not suitable
 Can result in conflicts in the chain of command – Two-way communication may
cause conflict in the line of command. This can happen when one party is given a
 chance to provide feedback but fails to do so. It can either be conflicts among the
departmental leaders etc
 Can not be suitable or convenient in some situations e.g. because of different
opinions for example between departmental leaders with different kind of
knowledge. Misunderstandings between the sender and the receiver – two -way
communication can lead to misunderstanding. A sender can get bothered when the
receiver has a different opinion, leading to a misunderstanding.

Methods of communication

There are four different ways in which businesses can communicate. These include the
following:

1. Written communication
2. Oral/verbal communication
3. Non-verbal communication
4. Visual communication

Written communication

 It refers to the sending of messages, orders or instructions in writing through letters,

circulars, manuals, reports, telegrams, office memos, bulletins, etc.
 In the modern world, written communication is now conducted through email,
internet, websites, telegrams, press release

Characteristics of written communication

 It is the most formal type of communication.

 It is mainly used for documentation. It is a permanent record of the organization.
 Written communication is also used to circulate information in the business
 It does not require the attendance of the sender and the receiver together for the
process.
 It is a time-consuming process since formulating and sending the message requires
quite a lot of time.
  It is an activity that is quite creative and also requires a ton of imagination and effort.

Advantages of written communication

 It is accurate – Written communication is very accurate. The writer needs to be very

precise. They need to think about their ideas and then properly arrange them carefully.
The written communication is formulated with utmost care. It is open for verification,
and it is also checked for authentication. Hence, mistakes are usually not found.
 It is a suitable method for communicating in a company – Organizational policies,
missions, rules and regulations, objectives, production methods, etc., are always
available in written form. For these specific areas, except written communication, no
other way of communication is effective. For these areas, written communication
plays a vital role since other methods of communication are not entirely valid.
 Less distortion of information in the company – While transmitting a message
verbally, i.e., using oral communication, some parts of the speech may get altered or
removed. This may affect the importance of the information. However, if written
communication is used, then the level of distortion is relatively low since the
information is in written form.
 There is clear understanding of the message – Written communication helps the
receiver to understand the meaning of the information clearly. In this method, the
receiver can re-read the information until they understand it correctly. Hence, this
method of communication provides clarification for the user since they can read the
message again and again if they fail to understand the meaning the first time.
 Permanent record – Unlike oral communication, written communication can be
preserved for a long time, and thus it acts as a permanent record for the business or
the organization. This information can be beneficial in the future as it can also be used
as legal documents.

Disadvantages of written communication

 There is no secrecy of information – In oral communication, the confidentiality of

communication between two parties can be adequately maintained. However, in the
method of written communication, maintenance of privacy is quite tricky. This is
 because, in written communication, the document is in written format, and as a result,
it can be discovered by anyone, breaching the secrecy between the two parties.
 It is a costly and a slow process – The method of written communication is slow and
expensive. Articulating a written message is quite costly since for preparation and
sending of the statement, many people’s hard work is required, and they need to be
paid accordingly. It is also a slow process since it takes a long time to reach the
desired location.
 There are delays in terms of feedback – In written communication, the feedback
procedure is quite delayed. It fails to produce instant and quick feedbacks since the
user first needs to receive the message and then go through it before giving feedback.
In certain events, the message may be delivered after a long time which will further
delay feedback.
 Limited accessibility – Written communication can only be accessed by educated
people to read the written messages and documents. The uneducated or illiterate
people are unable to access this method of communication, and hence its reach is
limited to only a particular group of people.
 It is not flexible – Written communication needs to maintain specific protocols for
writing the desired document. It also needs to be quite formal, and hence it is not very
flexible. After the writing of the document, no adjustments can be made to it. This
also reduces the flexibility of this method of communication.
 There is no direct communication between the sender and the receiver – It is also
not possible to build a personal relationship with the receiver through written
communication. Since direct communication among the parties is not possible, it
becomes difficult at times to understand the exact requirements of the receiver.

Verbal/oral communication

 It refers to the transfer of information from sender to receiver by means of verbal and
visual aid.
 Examples of oral communication include presentations, speeches, discussions, etc.
 Verbal communication is effectively carried out with the help of non-verbal
communication like body language and tone modulations.
  Oral communication is also at times mixed with visual aid to help establish the
conveyed message in a clear manner.
1. Telephone/Cellular phone
2. Messages
3. Face-to-face discussion
4. Meetings/Conferences
5. Presentation
6. Radio
7. Teleconferencing
8. Speeches
9. Interview

Advantages of verbal communication

 Immediate feedback – The biggest advantage of oral communication is that it

provides immediate feedback to both the sender and the receiver. Each can therefore
ask for clarification and elaboration on the spot.
The speaker can immediately understand the reaction of the audience or group, s/he is
addressing while the hearers get a number of clues about how their behaviour is being
perceived by the speaker.
 It is time saving – Oral communication is very fast. It saves the time involved in
writing the message and delivering it through a channel like the postal or courier
services.
 It is economical – Oral communication saves the money spent on stationery and the
channel of communication
 Personal touch – Oral communication builds up a healthy climate in the organization
by bringing superiors and subordinates closer. It is also an effective tool for
persuasion
 It is flexible – Oral communication provides an opportunity to the speaker to correct
himself and make himself clear by changing his voice, pitch, tone, etc. A number of
other factors like context, body language, etc. can be used to reinforce and modify
what is spoken through the words
  There is secrecy – Oral messages can be more easily kept confidential than written
messages. All one has to do is to ensure that there is no one within the hearing or
recording distance.
 It is suitable for group communication – Oral communication is extremely useful
for communicating with groups in meetings, conferences, etc

Disadvantages of verbal communication

 Poor retention of information – The listener cannot retain oral messages in his
memory for a long time. The speaker himself may not recall what he actually said.
 There are no permanent records – Oral communication does not provide any record
for future reference. In the absence of a record, oral messages have no legal validity.
 Oral communications can be misunderstood – Oral communications are likely to
be misunderstood due to poor expression and noise. The speaker may not be able to
make himself quite clear or the listener may be inattentive. This is likely to be truer
when the two individuals are not on good terms with each other.
 Lack of responsibility – Oral messages are not recorded. Therefore, it becomes
difficult to hold persons responsible for mistakes, inaccuracy or falsity in oral
communication.

Visual communication

 It defined as the transmission of information to another party by the use of a non-

verbal medium such as gestures, visual aids, facial expression, postures etc.
 It involves the use of visual elements, such as drawings, illustrations and electronic
images, to convey ideas and information to an audience.

Advantages of visual communication

 It emphasises oral communication – There are several benefits of visual

communication. Technology has allowed us to use visual aids in delivering important
messages for business enterprises. Visual communication helps in emphasizing oral
communication. When an individual is explaining something that the business offers,
it is always vital to use demonstrations for better understanding. Visual aids come in
 handy for such situations. When an individual is reading about the portfolio of an
organization, visual aids can help in explaining key features of the organization.
Moreover, visual communication is more appealing as compared to oral
communication.
 It is more effective as compared to oral communication – Audio visual
communication is more effective as compared to words. Some facts cannot be
delivered in form of words, thus diagrams and pictures are used. Graphs and maps are
self-explanatory and can be used to show customers on how the business is
performing, rather than using oral communication. Visual communication is also
attractive, and most people will focus on such communication rather than other modes
of communication.
 It is useful for making presentations in business workplaces – In a business
setting, the workers at times may be required to perform presentations on how the
company is performing. The information to be displayed can be difficult using words,
and thus visual communication can be used in place of words. Graphs, charts, figures
and other modes of visual communication can be used to represent mathematical data.
It can be difficult for some people to understand data displayed in tables, but charts
and graphs make the work easier. When the Coca-Cola Company is displaying
statistics on how the company is performing, as well as growth forecast, charts and
graphs are used. This is easily understandable and self-explanatory.
 Effective in attracting customers – Most businesses have realized that using visual
communication attracts more customers when compared to other modes of
communication. This can also be based on the fact that visual communication is self-
explanatory. McDonald’s uses visual appeal rather than words or oral communication
when displaying the products they offer. This helps the customers to make quick and
efficient decisions.

Disadvantages of visual communication

 It is costly – One of the main disadvantages is that it is costly. As compared to other

modes of communication, visual communication is more costly. The process of
coming up with a video, chart, diagram or map is expensive, and it requires the
involvement of different stakeholders in the organization. In addition, the mode and
area of the display are expensive. Hiring a television station, newspaper or magazine
 at times can be costly. It is such reasons why only large companies tend to use this
mode of communication.
 It is time consuming – The amount of time needed when creating visual aids is
considerably longer as compared to other forms of communication. This is due to the
fact that different parties are involved, and the software used may be unavailable at
times. In addition, it takes much time for the receivers to understand the message
being conveyed. For example, visual communication that uses hand gestures and
facial expressions may be complicating to normal or illiterate people.
 Some visual presentations can be complex – Sometimes visual presentation of
information becomes complex. The receivers cannot understand the meaning of the
presentation. It becomes harder to understand the connotation of visual images.

Barriers to effective communication

 Communication barriers are the reasons why communication fails

 The barriers to communication include the following:

1. Physical barriers

Physical barriers may prevent an individual from being able to interpret non-verbal cues. This
is more common in communication methods relying on technology rather than face-to-face.
Other physical barriers include:

 Old or broken equipment or office phone systems used for communication

 Uncomfortable temperatures
 Background noise
 Communicating close to the time of break/ lunch/ end of work hours
 working in an area that is physically separated from colleagues
 Large geographic distances between the sender and the receiver - communication is
usually easier over shorter differences

2. Emotional or psychological barriers

  Emotional or psychological barriers such as anger, pride, and social anxiety can
impact communication in the workplace. These emotions hold employees back from
effectively communicating with their teammates, and also prevent them from listening
attentively or considering alternative perspectives on issues.
 Employees who are prone to anger are less likely to be logical in discussions, and
hamper productivity in solving problems. They are more inclined to resist the
opinions and ideas of others, and cause the receiving party to become defensive,
afraid, hurt, and feel disrespected. This results in a communication barrier because
team members are less likely to approach that individual for questions or solutions as
they do not want to provoke them.
 Pride is another key communication barrier because it implies that an individual takes
pride in their words and actions — and in extreme cases, it causes them to talk more
than they listen. Listening is a very important skill in effective communication
because it facilitates discussions. If an individual is stubborn in proving that their
opinion is the best and only way to do things, teammates will find them incredibly
difficult to work with, hampering productivity and workflows.
 Someone who suffers from social anxiety and/or low self-esteem may be too
distracted about how they are perceived when talking with a superior. They may be
worried about whether their manager will notice that they're nervous, they may find it
difficult to share their real thoughts etc. Afterwards this person may realise they can't
remember what the manager said because they were too distracted with their thoughts.

3. Organisational structure barriers

 Companies with unclear structures can make communication difficult. For example,
they may have an inefficient information sharing and communication system,
employees may not know what their role is in the communication system etc.
 If a company has a complex structure with lots of management levels, information
will be lost or distorted as it travels through each layer of the hierarchy.
 Employees in senior positions can be tempted to dismiss messages, feedback, or ideas
from subordinates, simply because they are empowered to do so based on their
hierarchical level and status. Conversely, subordinate employees might be reluctant
and fearful of communicating honestly and authentically with their superiors, as they
do not want to inadvertently offend them and hamper their own career opportunities.
4. Cultural differences

 Cultural differences become more pronounced in a global team, involving cultural

norms, beliefs, and values. Cultural barriers tend to arise as employees have different
communication styles stemming from their own social norms and values. It might also
lead to misunderstandings as individuals may form wrong assumptions based on
stereotypes of the other person’s culture.
 For example, maintaining strong eye contact in professional settings can be seen as
assertive and confident in some cultures, while it can be seen as aggressive and
disrespectful in others.
 Global team members might find a comment or action by their colleague unusual,
uncomfortable, or disrespectful, which breeds resentment within the team and further
reinforces communication barriers.

5. Language differences

 Language is another crucial barrier to effective communication — global teams with

members who have different mother tongues may struggle to communicate effectively
with each other. Some people might have strong accents, which may make
understanding difficult, and messages don’t get clearly communicated across.
 Nonverbal language such as hand gestures, body language, or facial expressions can
also hold different meanings in different cultures, so it’s important for employees to
be aware and sensitive of their environments before using it in communication.

6. Status or position of an employee

 Communication may suffer from selective communication. The top of a company's

hierarchy may not share certain information to subordinates for fear of being judged
as incompetent and they want to reinforce status differences.
 Subordinates tend to share only information that would please their superiors and
avoid sharing their mistakes and asking for further clarification on work.

7. Poor listening skills

  If a manager isn’t listened to, they may feel frustrated in the ineffectiveness of their
communication. Since workplace communication is necessary for the success of their
job, poor listening on the part of employees can create tension.
 If an employee isn’t listened to, they may feel frustrated and unhappy at work. When
managers fail to listen to their employees, they miss the insight offered by employees
at every level.

8. Information overload

 They may also delay processing or responding to information/message at least for

some time. And delay may become a habit, causing serious communication problems.
People may also become selective in their response, and selectivity is not
communication-friendly. On the other hand it is a communication problem.

Measures to overcome barriers to communication

 Eliminating differences in perceptions – The organization should ensure that it is

recruiting right individuals on the job. It’s the responsibility of the interviewer to
ensure that the interviewee has command over the written and spoken language. There
should be proper induction program so that the policies of the company are clear to all
the employees. There should be proper trainings conducted for required employees
 Use of simple language – use of simple and clear words should be emphasized. Use
of ambiguous words and jargons should be avoided.
 Reduction and elimination of noise levels – Noise is the main communication
barrier which must be overcome on priority basis. It is essential to identify the source
of noise and then eliminate that source.
 Active listening – To communicate effectively, one should be a good listener.
Superiors should develop the habit of patient listening and avoid premature evaluation
of communication from their subordinates. This will encourage free flow of upward
communication. train employees at every level in active listening. When individuals
learn how to actively listen, communication in the workplace improves.
 Sound organisational structure – To make communication effective, the
organisational structure must be sound and appropriate to the needs of the
 organisation. Attempt must be made to shorten the distances to be travelled for
conveying information.
 Good working environment – Work environments play a huge role in influencing
communication. There’s a reason why the seating arrangements in an office are
organised by teams — it facilitates effective communication when it comes to asking
questions, bouncing ideas off each other, and building strong relationships when
members have to constantly communicate and collaborate with each other daily.

Formal and informal communication

Formal communication

 Formal communication refers to the flow of official information through proper,

predefined channels and routes.
 Can be described as the sending and receiving of official documents, letters,
memorandums, reports, and policy or procedure manuals, among others.
 The flow of information is controlled and needs deliberate effort to be properly
communicated.
 Formal communication follows a hierarchical structure and chain of command. The
structure is typically top down, from leaders in various departments and senior staff in
the organization, which funnel down to lower level employees.

Informal communication

 Informal communication refers to communication which is multi-dimensional i.e.

information moves freely within the organization and is not bound by pre-defined
channels and communication routes.
 It is also referred to as grapevine communication
 It is based on personal/social relationships
 It helps to build more productive and healthy relationships in the workforce.

Difference between formal and informal communication

  Reliability: Formal communication is the more reliable form, as there is a paper trail.
Compared to informal communication which has comparatively less reliability, and is
very unlikely to have a paper trail.
 Speed: Formal communication is slower, sometimes feeling unbearably slow due to
bureaucracy. On the other hand, informal communication is very quick, often being
instantaneous.
 Time-Consuming: Formal communication requires a number of different processes
before the whole communication flow is complete, whereas informal communication
requires very little process time.
 Information Flow: Information through formal communication is only through
predefined channels, whereas information through informal communication moves
freely.
 Secrecy: Secrecy is maintained with formal communication, whereas informal
communication makes it hard to maintain full secrecy due to its reliance on
individuals.

Advantages of informal communication

 Obtaining of immediate feedback – It is not always possible to obtain employees’

reactions or feedback on any decision of management through formal communication
media. Moreover, getting employees’ feedback through formal channels takes a long
time. In such a case, informal communication can be valuable in measuring the
reaction of employees before any information is conveyed through formal channels.
In such a situation, informal communication channels are more useful and effective.
 Facilitates interpretation of message – Message sent to subordinates requires
explanation or interpretation and informal communication is the valuable means here.
It is easy for the employees to take the explanation by informal system. So this system
plays a vital role to complete the work properly.
 Relieving frustration in the mind of employees – Different issues of the
organization may create frustration in the mind of employees. Through expressing it
to others, employees can relieve their frustration. For different reasons, some
employees may become emotional which can’t be removed through formal
communication. But in a formal channel, it is not always possible. This
 communication acts as a safety measure to provide emotional relief and therefore
helps in concentration on the job.
 Enables the forwarding of recommendations by employees – Due to fear or chance
of losing a job, employees do not like to forward their suggestions and
recommendations through the formal channel. In this system, the employees inform
their superior about their demands, problem and the way to develop the
implementation system of the work. In such a situation, employees can use informal
channels to forward their recommendations to their superiors. As a result, it creates an
opportunity to send a recommendation to their management.
 Increase efficiency in the company – Informal communication facilitates
establishing a cordial relationship between management and worker. Under the
informal system, the employees discuss their problems openly and they can solve it.
This cordial relationship encourages the employees to be sincere in discharging their
duties and thus increase their efficiency. For this, the work is done properly and it
develops the efficiency of the employee.

Helping decision making

Through informal communication, management gets the opportunity to collect information

from different corners that help them to take the right decision and solve any problem
efficiently and effectively. Therefore management can take necessary action timely and
effectively.