University Of Algiers 3
Faculty of Economic, Commercial and Management Sciences
Department of Finance and Accounting
Level: 1st Year Master of Corporate Finance
Module: Communication and Administrative Editing
Chapter One:
The concept of communication
Prepared by: Dr. Hebbaz Anes
Introduction
In today's interconnected world, the ability to
communicate effectively is more important ,
Communication is an essential aspect of human
interaction, serving as the foundation for
relationships, collaboration, and understanding. It
encompasses the exchange of information, thoughts,
and feelings through various channels, including
verbal, non-verbal, written, and visual means.
Effective communication not only facilitates
clarity and reduces misunderstandings but also
The English word 'Communication' is derived from two Latin words 'Communis' &
'Communicare' which mean to make common, to share, to transmit or to interact.
The word communication means expression and interaction through some symbols to
achieve a specific goal, and it involves the element of intention and planning. This word
is derived from the Latin root meaning participation or forming a relationship or a
common and familiar meaning, as some have attributed this "Communis" to mean
general or common, and any of these concepts shows us that the word "common" is from
the origin. A process that includes (participation - understanding) about (a subject, an
idea) to achieve (a goal, a program).
Therefore, communication is a mutual exchange of facts, ideas, opinions or information
that requires a presentation and reception that leads to understanding between all
elements regardless of the presence or absence of implicit harmony. It is a process of
purposeful information interaction.
Categories of Communication
The different categories of communication include:
Written Communication: which includes letters, e-mails, social media, books,
magazines, the Internet and other media. Until recent times, a relatively small number of
writers and publishers were very powerful when it came to communicating the written
word. Today, we can all write and publish our ideas online, which has led to an explosion
of information and communication possibilities.
Spoken or Verbal Communication, which includes face-to-face, telephone, radio or
television and other media.
Non-Verbal Communication, covering body language, how we dress or act, where we
stand, and even our scent. There are many subtle ways that we communicate (perhaps
even unintentionally) with others. For example, the tone of voice can give clues to mood
or emotional state, whilst hand signals or gestures can add to a spoken message.
The importance of communication
Communication is very important for public and business organizations, and communication in
itself is not an end, but rather an effective means that helps achieve goals, plans and effective
implementation of administrative organization, as well as achieving administrative control
through communication channels. Good communication also helps to perform work in a better
way as planned and also helps to gain the trust of individuals and groups within the
organization, especially when making changes in work methods and comprehensive or partial
development work. Effective communication is also a means of leading and motivating others
at work, as the success of the organization depends largely on the effectiveness of
communication.
Elements of the communication process
The main components of communication process are as follows:
Context - Communication is affected by the context in which it takes place. This context
may be physical, social, chronological or cultural. Every communication proceeds with
context.
Sender - Sender is a person who sends the message. A sender makes use of symbols
(words or graphic or visual aids) to convey the message and produce the required response.
Message - Message is a key idea that the sender wants to communicate. It must be ensured
that the main objective of the message is clear.
. Encoding (Communication symbol) - The process of conversion of subject matter into
symbols is called encoding. The message or subject matter of any communication is always
abstract and intangible.
Elements of the communication process
Medium - Medium is a means used to exchange / transmit the message For instance -
Written medium is chosen when a message has to be conveyed to a small group of people,
while an oral medium is chosen when spontaneous feedback is required from the recipient
as misunderstandings are cleared then and there.
Recipient is a person for whom the message is intended / aimed / targeted. The degree to
which the decoder understands the message is dependent upon various factors such as
knowledge of recipient, their responsiveness to the message, and the reliance of encoder on
decoder.
Decoding - It is the process of translation of an encoded message into ordinary
understandable language.
Feedback - Feedback is the main component of communication process as it permits the
sender to analyze the efficacy of the message. It helps the sender in confirming the correct
interpretation of message by the decoder. Feedback may be verbal (through words) or non-
verbal (in form of smiles, sighs, etc.). It may take
Definition of organizational communication
We define organizational communication’ as the sending and receiving of messages
among interrelated individuals within a particular environment or setting to achieve
individual and common goals. Organizational communication is highly contextual and
culturally dependent. Individuals in organizations transmit messages through face-to face,
written, and mediated channels.
Organizational communication refers to the flow of information, ideas, and messages
within an organization. It encompasses both formal and informal communication channels
among employees, teams, and management. This type of communication is essential for
coordinating activities, fostering collaboration, and achieving organizational goals. It
includes various forms, such as meetings, emails, reports, and social interactions, and plays
a crucial role in shaping organizational culture, facilitating decision-making, and enhancing
employee engagement.
The importance of organizational
communication
Enhanced Coordination Effective communication ensures that team members are aligned
on goals, tasks, and responsibilities, leading to smoother operations and better
collaboration.
Improved Decision-Making Clear communication channels facilitate the sharing of
relevant information, enabling informed decisions at all levels of the organization.
Employee Engagement Open communication fosters a culture of transparency and trust,
which can increase employee morale and engagement, leading to higher productivity and
job satisfaction.
Feedback Mechanism: Regular communication provides a platform for feedback,
allowing employees to express concerns and suggestions, which can lead to continuous
improvement.
Innovation and Creativity: Open lines of communication encourage the sharing of ideas
and collaboration, fostering an environment where innovation and creativity can thrive.
Types of Organizational communication
Organizational communication can be categorized into several types, each serving
different purposes within a workplace. Here are the main types:
Internal Communication: Communication that takes place within an organization,
focusing on information sharing, team collaboration, and employee engagement (e.g.,
newsletters, meetings).
External Communication: Communication that occurs between the organization and
external entities, such as customers, suppliers, and stakeholders (e.g., marketing materials,
press releases).
Financial communication refers to the process of conveying financial
information and insights to various stakeholders, including investors, employees,
regulators, and the public. It plays a crucial role in ensuring transparency,
fostering trust, and supporting informed decision-making. Here are key aspects of
financial communication
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