Class: BSc Sem 5
Subject : Business communication
Chapter: Unit 1 Chapter 2
Chapter Name: Organisational communication process
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Today’s Agenda
1. Effective organizational communication 4. Corporate communication
1. Importance of effective communication 1. Corporate communication methods
2. Communication structure in organisations
1. Formal communication
1. Vertical communication
2. Horizontal or Lateral communication
2. Informal communication
1. Grapevine
2. Social networking
3. Communication climate
1. Communication patterns
2. Improving communication climate
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1 Effective organizational communication
Communication is the life source of organisations because organisations involve people and people
cannot interact with each other without communication.
Organisational communication therefore involves the exchange of messages to express and impart
meaning within and between organisations and their environments.
Effective workplace communication reduces employee uncertainty and resistance and enhances employee
cooperation.
Let us see what could possibly happen it no one communicated in the organisation.
• the employees would not know the organisation's objectives and would not work towards any goals
• they would not know their daily roles and responsibilities
• there would be no skill enhancement as managers would not impart training° The organisation would
not be aware of their competitors' activities
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Importance of effective communication in
1.1
organization
• Information dissemination - The objective of an organisation is to inform, which means to transfer
knowledge from one person or group to another person or group. Communication is instrumental in the
process of imparting knowledge since it helps various groups interact with each other. Various formal and
informal channels are important communication tools for information dissemination.
• Employee engagement - Communication is also a basic tool for motivation and improving employee
morale. In any organisation, when workers teel motivated and engaged, they work willingly and often
without supervision.
• Increase in productivity - Effective communication helps maintain good human relations in the
organisation. By encouraging ideas or suggestions from employees or workers and implementing them
whenever possible, an increase in production at low cost is also possible.
• Building relationships - Communication helps to build and maintain relationships. However, effective
communication in organisations depends on organisational structure and communication climate.
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2 Communication structure in organisations
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2.1 Formal Communication
Formal communication - Formal communication flows along prescribed channels which all members
desirous of communicating with one another are obliged to follow.
• Official conferences, meetings, written memos and corporate letters can generally be used for
communication.
• Formal communication is straightforward, precise and follows the official pattern depending on
organizational culture.
• In formal communication, information moves in either a vertical direction or in a horizontal or lateral
direction.
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2.1.1 Vertical Communication
Vertical communication is communication that flows up and down the organization, usually along the chain
of command or formal reporting lines.
• Vertical communication occurs between hierarchically positioned persons and can involve both
downward and upward communication flows.
• In organizations, managers and supervisors work as the link between leadership and junior levels.
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2.1.1 Vertical Communication
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2.1.1 Vertical Communication – Downward
When the communication flows from higher level to lower level, it is called downward communication. Order,
individual instructions, policy statements, circulars etc. fall under downward communication.
Information flows from supervisor to subordinate. Katz and Kahn have identified five different elements in
downward communication:
• Job Instruction - carried out in modern organisations through a wide variety of means like direct
orders, job descriptions, procedure manuals, special training programmes
• Rationale - involves the explanation of an activity and how it fits into the overall objective of the
organisation
• Information - disseminated for making employees aware of the organizations practices, regulations,
customs and values
• Feedback - a powerful tool used to make employees aware of their performance
• Ideology - an extension of rationale, seeks to justify subordinates' support in order to strengthen
loyalty, enthusiasm and motivation
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2.1.1 Vertical Communication – Upward
This communication flows the message from subordinates to superiors. It is reverse of the downward
communication or communication flows from lower level to upper level.
The information flows from the subordinate to the senior. According to Katz and Kahn subordinates transmit
information upward about:
• the assigned job, performance and problems
• fellow employees and their problems
• organisational practices and policies
• tasks to be done and how to do them
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2.1.1 Vertical Communication
Tips for improving Vertical communication
Seniors should take the initiative in building an environment of trust by communicating with the team
the larger vision and making them part of the larger picture. This helps the subordinates know why a
particular decision is important and what the outcome of it is.
Increasing informal connect with subordinates through social events, lunches, occasional tours and
trips, taking out time for team huddles, outbound activities, casual outings and weekly meetings
develop trust among team members.
Organisations can promote an open and transparent policy where giving and receiving constructive
feedback is encouraged.
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2.1.2 Horizontal or lateral Communication
This communication flows between persons at the same hierarchy level either of the same or other department
or division of the organization.
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2.1.2 Horizontal or lateral Communication
Tips for improving lateral communication
A formal process which could boost lateral communication can be structured in organisations. Activities
like job rotation, inter-departmental projects, combined brainstorming sessions, mixed teams etc.
encourage lateral communication. They also help in achieving greater sensibilities of the other
department's functioning.
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2.2 Informal communication
Informal communication refers to the communication that flows without following the formal defined path.
• Informal communication in organisations requires two people to have a similar wavelength and emotional
bonding. The people in the groups have something in common that links them together.
• Teams become more cohesive when members talk to one another outside of the project they may be
working on. This type of communication is generally beyond the boundaries of time, place or even subject
matter.
• The main form of informal communication is grapevine. There are several other forms like social networking
in modern times with the advancement of technology.
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2.2.1 Grapevine
Grapevine communication is the informal communication network within an organisation when information
spreads bypassing the formal communication structure.
Factors responsible for the grapevine phenomenon
• Feeling of certainty or lack of direction when the organization is passing through a difficult period
• Feeling of inadequacy or lack of self confidence on the part of employee, leading to the formation of gaps
• Formation of a clique or favored group by the managers, giving other employees a feeling of insecurity or
isolation
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2.2.1 Types of Grapevine
Single chain - In this type of chain ‘A’ tells something to ‘B’ who tells it to ‘C’ and so on it goes down the line.
This type of communication flows from one person to another person through single chain or communication
flows one by one.
Star chain - In this type of chain person speaks out and tells everyone the information he/she has obtained. This
chain is often used when information or a message regarding an interesting but non job related nature is being
conveyed. Sometimes it also called gossip chain.
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2.2.1 Types of Grapevine
Cluster chain - In this type of chain ‘A’ tells something to a few selected individuals who again inform a few
selected individuals. And the information flows in similar manner to other individual
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2.2.1 Types of Grapevine
Probability chain - The probability chain is a random process in which a transmission of the information to other
in accordance with the laws of probability and then these tell still others in a similar manner. The chain may also
be called random.
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2.2.1 Grapevine
Advantages
• Message travels faster than any other form of communication - group formation is based on individual’s
own liking and disliking
• Supports other channels of communication
• Prompt feedbacks
• Develops cohesiveness and maintains / promotes harmony between members of group
• Employees get emotional relief
Disadvantages
• Great possibility of distortion of message between members of group
• Transmission of message depends upon willingness of sender and what method they used which causes
sometimes transmission of incomplete information
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2.2.1 Grapevine
Tips for improving Grapevine communication
The leaders should keep their eyes and ears open in order to make formal communication channels more
effective. Frequent face-to-face discussions and meetings with small groups help them give a chance to
win the confidence of the people.
The employees should be kept well informed so that they do not indulge in rumour mongering. It is
necessary to organise some fruitful group activities so as to enhance the self-worth of the employees and
update their knowledge.
An open system of feedback encourages the employees to directly approach the supervisor and express
the viewpoint. Creating a communication climate based on mutual trust and understanding is always
important to make the system approachable.
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2.2.2 Social networking
Social networking is the self-clustering of individuals into specific groups. Although social networking is
possible in person, especially in the workplace, it is most popular online. This is because the Internet is
filled with millions of individuals who are looking to meet other people, to gather and share first hand
information and experiences.
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3 Communication climate
The overall working environment of an organisation is influenced by its communication climate which
affects employee engagement and job satisfaction. In order to understand the communication climate of
any organisation, it is important to know:
• How do people communicate with each other?
• How open or close is the communication culture in the organisation?
• Are employees scared of raising their concerns and issues or do they freely interact with seniors and
subordinates?
Open vs, closed communication environment defines the extent to which people feel free to share
information and opinions. It also reflects the level of trust and faith that the employees and management
have in each other.
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3.1 Communication patterns
Gibb" has identified following six defensive and six supportive communication patterns in organisations.
Defensive patterns are associated with closed communication environment and supportive with open
ones.
1. Evaluation vs. Description
Evaluation is associated with 'you' language and tries to evaluate or judge the other person's worth or
merit. Description involves 'I language and tries to see merit in the ideas of the person.
2. Control vs. Problem Orientation
People may get defensive when they are controlled. Using a problem approach is more effective as it
helps the person in identifying the best solution to the problem.
3. Strategy vs. Spontaneity
People may use strategies to manipulate and control others or may adopt an open and persuasive
approach to convince others.
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3.1 Communication patterns
4. Neutrality vs. Empathy
People can show an indifferent attitude towards their peers and subordinates or they can show their
concerns and be empathic towards others.
5. Superiority vs. Equality
An attitude of superiority encourages a defensive approach, while equality helps in creating a supportive
climate.
6. Certainty vs. Provisionalism
When people develop a '1 know it all' attitude they try to prove the other person wrong. Provisional
approach makes people listen to others and adapt themselves according to the situation.
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3.2 Improving communication climate
1. Ease structural barrier
2. Overcome status barrier
3. Build an environment of trust
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4 Corporate Communication
In the competitive business environment, corporate communication has emerged as a distinctly relevant
area. Supervisors communicate with sources outside the organisation, such as vendors and customers.
They communicate with people and groups outside the organisation, such as customers, suppliers and the
local community. It is important that the organisations communicate well with all these stakeholders
including media and keep them informed and engaged at all times, since effective external communication
leads not only to better sales volume, operational efficiency and company profits but ultimately helps in
achieving organisational goals. Corporate communication adopts a 'corporate' point of view and aims at
fulfilling organisational objectives.
In general, for developing a corporate communication perspective it is necessary:
• to lay down effective centralised procedures in order to facilitate decision-making in matters concerning
external communication° to create the profile of the company behind the brand
• to minimise gaps between the desired identity and brand features to mobilise internal and external
support for projecting a positive image to the outside world
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4.1 Corporate Communication Methods
Organisations may adopt various methods for brand building and communicating their image with end
users. Corporate identity is not just something that private sector organisations strive for; it is also very
important for many public sector organisations. While advertising for products, brand building can be a
direct form of communication with the external world, a few other more subtle methods include the
following:
1. Vision and Mission Statements
Mission statements encapsulate what the business is about and what it wants to be associated and
identified with. The mission statement is used not only to communicate an external identity but to bind
together all the people of any organisation in a common culture and identity.
2. Packaging
Packaging is becoming increasingly important not just to maintain quality and to protect products but as a
form of communicating messages about the company as well.
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4.1 Corporate Communication Methods
3. Logos
Logos communicate messages that are subtle as these rely heavily on an understanding of human
psychology. Logos are intended to ensure that the company becomes instantly recognisable even if there is
no writing or words to convey the message.
4. Livery
Livery is the colour scheme adopted by a business to communicate who the company or organisation is.
The company may use this colour scheme throughout its entire communications media to maintain
consistency and raise awareness and identity.
5. Straplines or Taglines
This seems to be a relatively new term but has rapidly entered the corporate communication vocabulary. It
is a phrase or short sentence that is meant to represent the company or create awareness in customers and
end users.
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4.1 Corporate Communication Methods
6. Endorsements
Some businesses associate themselves with a famous celebrity or personality to get a message across. the
celebrity has to be carefully chosen to ensure that the person chosen embodies the qualities that the firm
wants to be recognised for.
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