Communications is fundamental to the existence and survival of humans as well as to an

organization. It is a process of creating and sharing ideas, information, views, facts, feelings, etc.
among the people to reach a common understanding. Communication is the key to the Directing
function of management.

A manager may be highly qualified and skilled but if he does not possess good communication
skills, all his ability becomes irrelevant. A manager must communicate his directions effectively to
the subordinates to get the work done from them properly

Communications Process

Communications is a continuous process which mainly involves three elements viz. sender,
message, and receiver. The elements involved in the communication process are explained below in
detail:

1. Sender

The sender or the communicator generates the message and conveys it to the receiver. He is the
source and the one who starts the communication

2. Message

It is the idea, information, view, fact, feeling, etc. that is generated by the sender and is then
intended to be communicated further.

3. Encoding

The message generated by the sender is encoded symbolically such as in the form of words,
pictures, gestures, etc. before it is being conveyed.

4. Media

It is the manner in which the encoded message is transmitted. The message may be transmitted
orally or in writing. The medium of communication includes telephone, internet, post, fax, e-mail,
etc. The choice of medium is decided by the sender.

Learn more about Types of Communication here in detail.

5. Decoding
It is the process of converting the symbols encoded by the sender. After decoding the message is
received by the receiver.

6. Receiver

He is the person who is last in the chain and for whom the message was sent by the sender. Once the
receiver receives the message and understands it in proper perspective and acts according to the
message, only then the purpose of communication is successful.

7. Feedback

Once the receiver confirms to the sender that he has received the message and understood it, the
process of communication is complete.

8. Noise

It refers to any obstruction that is caused by the sender, message or receiver during the process of
communication. For example, bad telephone connection, faulty encoding, faulty decoding,
inattentive receiver, poor understanding of message due to prejudice or inappropriate gestures, etc.

(Source: businessjargons)

Importance of Communication

1. The Basis of Co-ordination

The manager explains to the employees the organizational goals, modes of their achievement and
also the interpersonal relationships amongst them. This provides coordination between various
employees and also departments. Thus, communications act as a basis for coordination in the
organization.

2. Fluent Working

A manager coordinates the human and physical elements of an organization to run it smoothly and
efficiently. This coordination is not possible without proper communication.

3. The Basis of Decision Making

Proper communication provides information to the manager that is useful for decision making. No
decisions could be taken in the absence of information. Thus, communication is the basis for taking
the right decisions.

Learn more about Barriers of Communication here in detail.

4. Increases Managerial Efficiency

The manager conveys the targets and issues instructions and allocates jobs to the subordinates. All
of these aspects involve communication. Thus, communication is essential for the quick and
effective performance of the managers and the entire organization.

5. Increases Cooperation and Organizational Peace

The two-way communication process promotes co-operation and mutual understanding amongst the
workers and also between them and the management. This leads to less friction and thus leads to
industrial peace in the factory and efficient operations.

6. Boosts Morale of the Employees

Good communication helps the workers to adjust to the physical and social aspect of work. It also
improves good human relations in the industry. An efficient system of communication enables the
management to motivate, influence and satisfy the subordinates which in turn boosts their morale
and keeps them motivated.

Types of Communication

1. Formal Communication
Formal communications are the one which flows through the official channels designed in the
organizational chart. It may take place between a superior and a subordinate, a subordinate and a
superior or among the same cadre employees or managers. These communications can be oral or in
writing and are generally recorded and filed in the office.

Formal communication may be further classified as Vertical communication and Horizontal

communication.

Vertical Communication

Vertical Communications as the name suggests flows vertically upwards or downwards through
formal channels. Upward communication refers to the flow of communication from a subordinate to
a superior whereas downward communication flows from a superior to a subordinate.

Application for grant of leave, submission of a progress report, request for loans etc. are some of the
examples of upward communication. Sending notice to employees to attend a meeting, delegating
work to the subordinates, informing them about the company policies, etc. are some examples of
downward communication.

Horizontal Communication

Horizontal or lateral communication takes place between one division and another. For example, a
production manager may contact the finance manager to discuss the delivery of raw material or its
purchase.

Types of communication networks in formal communication:

 Single chain: In this type of network communications flows from every superior to his
subordinate through a single chain.

 Wheel: In this network, all subordinates under one superior communicate through him only.
They are not allowed to talk among themselves.

 Circular: In this type of network, the communication moves in a circle. Each person is able
to communicate with his adjoining two persons only.

 Free flow: In this network, each person can communicate with any other person freely.
There is no restriction.

 Inverted V: In this type of network, a subordinate is allowed to communicate with his

immediate superior as well as his superior’s superior also. However, in the latter case, only
ordained communication takes place.

2. Informal Communication
Any communication that takes place without following the formal channels of communication is
said to be informal communication. The Informal communication is often referred to as the
‘grapevine’ as it spreads throughout the organization and in all directions without any regard to the
levels of authority.

The informal communication spreads rapidly, often gets distorted and it is very difficult to detect the
source of such communication. It also leads to rumors which are not true. People’s behavior is often
affected by the rumors and informal discussions which sometimes may hamper the work
environment.

However, sometimes these channels may be helpful as they carry information rapidly and, therefore,
may be useful to the manager at times. Informal channels are also used by the managers to transmit
information in order to know the reactions of his/her subordinates.

Learn more about 7 C’s of Communication here in detail.

Types of Grapevine network:

 Single strand: In this network, each person communicates with the other in a sequence.

 Gossip network: In this type of network, each person communicates with all other persons
on a non-selective basis.

 Probability network: In this network, the individual communicates randomly with other
individuals.

 Cluster Network: In this network, the individual communicates with only those people
whom he trusts. Out of these four types of networks, the Cluster network is the most
popular in organizations.

Barriers to Communication

The communication barriers may prevent communication or carry incorrect meaning due to which
misunderstandings may be created. Therefore, it is essential for a manager to identify such barriers
and take appropriate measures to overcome them. The barriers to communication in organizations
can be broadly grouped as follows:

1. Semantic Barriers

These are concerned with the problems and obstructions in the process of encoding and decoding of
a message into words or impressions. Normally, such barriers result due to use of wrong words,
faulty translations, different interpretations etc.
For example, a manager has to communicate with workers who have no knowledge of the English
language and on the other side, he is not well conversant with the Hindi language. Here, language is
a barrier to communication as the manager may not be able to communicate properly with the
workers.

2. Psychological Barriers

Emotional or psychological factors also act as barriers to communication. The state of mind of both
sender and receiver of communication reflects in effective communication. A worried person cannot
communicate properly and an angry recipient cannot understand the message properly.

Thus, at the time of communication, both the sender and the receiver need to be psychologically
sound. Also, they should trust each other. If they do not believe each other, they cannot understand
each other’s message in its original sense.

3. Organizational Barriers

The factors related to organizational structure, rules and regulations authority relationships, etc. may
sometimes act as barriers to effective communication. In an organization with a highly centralized
pattern, people may not be encouraged to have free communication. Also, rigid rules and
regulations and cumbersome procedures may also become a hurdle to communication.

4. Personal Barriers

The personal factors of both sender and receiver may act as a barrier to effective communication. If
a superior thinks that a particular communication may adversely affect his authority, he may
suppress such communication.

Also, if the superiors do not have confidence in the competency of their subordinates, they may not
ask for their advice. The subordinates may not be willing to offer useful suggestions in the absence
of any reward or appreciation for a good suggestion.
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Formal organizational communication is not an easily defined term. Organizational communication is a

complicated phenomenon that has no clear boundaries. Several definitions attempt to conceptualize the
abstract nature of organizational communication. The study of organizational communication involves the
intersection of two complex and dynamic concepts: organizations and communications. An organization
has three primary characteristics:

1. Social collectivity (a group of people)

2. Coordinated activities (structure)
3. Goal-oriented activities (both individual and collective)

In defining communication, most scholars agree that communication is a process that is transactional
(involving two or more people interacting in context) and symbolic (placing meaning and abstractions on
things). To formalize organizational communication means to understand how the context of the
organization influences communication processes and how the symbolic nature of communication
differentiates it from other forms of organizational behavior.

Studying Formal Organizational Communication

Eric Eisenberg and Harold Goodall (2004) offer a broad but usable definition of organizational
communication. They suggest that there are four ways to conceptualize and study formal organizational
communication:

1. Communication as information transfer

2. Communication as transactional process
3. Communication as strategic control
4. Communication as balancing creativity and constraint

Communication as Information Transfer

The traditional approach to study communication has followed the linear model of communication, also
known as the transmission model, the information engineering approach, or the model of information
transfer. The information transfer approach views communication as a tool that people use to accomplish
goals and objectives. Clear, one-way communication is emphasized as a means of impressing and
influencing others. The information transfer or linear model suggests that communication flows one way
or linearly from the sender of the message to the receiver of the message. This model suggests that
communication is a process whereby messages are transmitted and distributed in space for the control of
distance and people.

Some scholars have suggested that communication operates in a predictable fashion; hence the
information engineering approach. The information engineering approach advanced the SMCR model.
This model posits that communication occurs when a sender (S) transmits a message (M) through a
channel (C) to a receiver (R). The sender encodes an intended meaning into words and the receiver
decodes the message when it is received. The communication as information transfer model is similar to
both the linear model of communication and the information engineering approach in that communication
is framed metaphorically as a pipeline through which information is transferred from one person to
another. Within the organizational context, managers transfer information or directives to subordinates
and subordinates do the same in their peer and superordinate interactions.

Communication theories in the information transfer approach are based on the following assumptions of
transmission:
  Language transfers thoughts and feelings from one person to another person
 Speakers and writers put thoughts and feelings into words
 Words contain those thoughts and feelings
 Listeners or readers extract those thoughts and feelings from the words

There are several problems associated with the information transfer method as an approach to the study of
formal organizational communication. Information overload is when the receiver of the message becomes
inundated with information that needs to be processed. Information overload is made up of the amount of
information, the rate at which the information is received, and the complexity of the information.

Another problem with the information transfer model is with communication distortion. Distortion is the
processing noise that distracts the receiver from fully processing information. Communication distortion
can be semantic (different meanings for sender and receiver), physical (sound distractions), or contextual
(sender and receiver have different positions or perspectives that lead to miscommunication).

Ambiguity offers the third problem with the information transfer model. Ambiguity occurs when multiple
interpretations of a message distort or misdirect the sender’s intended meaning. Differing meanings and
interpretations, based on one’s worldviews, backgrounds, context of communication, and experiences,
along with abstract language, may lead to ambiguity.

Communication as a Transactional Process

A second approach in the study of formal organizational communication is communication as a

transactional process. Communication as transactional process asserts that in actual communication
situations, clear distinctions are not made between senders and receivers of messages. This assumption
contrasts with the information transfer model. Instead, in the transactional process, both communicators
play both roles of encoding and decoding messages simultaneously. This model emphasizes the
importance of feedback in communication. This model also highlights the importance of nonverbal
communication, which is missing in the information transfer approach. Organizational communication as
a transactional process suggests that nonverbal feedback may accompany or substitute for verbal
messages. Finally, the transactional process model suggests that meanings are in people, not words, as the
information transfer model assumes. How an individual receives a message and how the receiver
constructs the meaning of that message is the focus of the transactional process model.

The transactional process influences contemporary leadership studies. Effective and successful leaders
using this approach are better able to mobilize the meanings that followers have for what leaders say or
do. This creates a transactional and fluid process between leaders and followers in organizations.

The approach of studying formal organizational communication through the transactional process
approach may be problematic in its emphasis on creating shared meaning through communication. By
focusing on shared meaning by means of clarity, openness, and understanding, communication as a
transactional process minimizes the complexities of the human condition whereas ambiguity, vagueness,
and instrumental objectives are central in some forms of formal communication in organizations.

Communication as Strategic Control

Communication as strategic control views communication as a tool for controlling the organizational
environment. This approach acknowledges that clarity, openness, and understanding are not always the
primary goals in interpersonal and organizational interactions caused by personal, relational, social, and
political factors. Communication as strategic control assumes communicators have multiple goals or
agendas in organizational situations. These agendas play out in performance evaluations, delivering or
accepting bad news, asking for a promotion or raise, or in various other situations where the individual or
organizational interests are at stake.

The strategic control approach to formal organizational communication suggests that individuals should
not be expected to communicate in a rational or objective manner. Communication rules, clarity, and
honesty may be broken or compromised when it is in the communicators’ best interests to do so.
Generally, strategic communicators are competent communicators. Communication competence refers to
the appropriateness and effectiveness of a message. The communicating party must be rhetorically
sensitive in that he or she must be able to recognize the constraints of the situation and adapt to the
multiple goals of all parties simultaneously.

Strategic ambiguity is a common form of strategic control. Strategic ambiguity describes the ways people
deliberately communicate ambiguously to accomplish their goals.

Strategic ambiguity seeks to accomplish specific goals. First, strategic ambiguity promotes unified
diversity by taking advantage of the multiple meanings different people may give the same message. For
example, if a supervisor directs employees to work more as a family, there are multiple interpretations on
how this should occur.

Second, strategic ambiguity is deniable because the words may seem to mean one thing, yet under
pressure, these same words can seem to mean something else. For example, if an organization has
announced a merger, organizational leaders are careful when discussing job loss because of duplication of
processes, so that when job loss occurs later, their words at that time appear more abstract and less
definitive.

Finally, strategic ambiguity facilitates organizational change by allowing people the interpretive room to
change their activities while appearing to keep those activities consistent.

The strategic control model of formal organizational communication opposes the idea of shared meaning.
The primary goal of communication in this approach is organized action. Organized action minimizes the
importance of understanding and clarity and highlights working and acting in mutually satisfying ways to
fulfill each party’s self-interest.

Many scholars have criticized the strategic control approach for several reasons. First, this approach
minimizes the importance of ethics. Although strategic ambiguity is widespread in organizations, it may
be used to elude the truth and escape blame.

It is also problematic because it places all responsibility on individuals without much thought about the
community implications. This model implicitly suggests that individuals are only concerned with
accomplishing their individual goals, often at the expense of the organizational community or the
community at large.

Additional Approaches to Formal Organizational Communication

There are other approaches to studying formal organizational communication. These approaches include
the functional approach and the meaning-centered approach.

Functional Approach

The functional approach is a way of understanding organizational communication by describing what

messages do and how these messages move through organizations. The functional approach
conceptualizes communication as a complex organizational process that serves messaging, organizing,
relationship, and change functions. This approach posits that communication transmits rules, regulations,
and information throughout the organization.

Message Function. In formalizing organizational communication, it is important to recognize how

communication contributes to the overall function of the organization. Messages act as a communication
function for production, maintenance, adaptation, management communication, regulative, integrative,
innovative, informative, task, persuasion, command, and instruction.

Organizing Function. The organizing function of formal organizational communication guides, directs,
and controls organizational activity. Communication functions to organize rules and regulate the
environment. These regulative and organizing functions are found in employee handbooks, policy
manuals, training, newsletters, memos, and so on. The organizing function establishes what is expected at
work and how individuals are required to accomplish these expectations.

Relationship Function. The relationship function of organizational communication focuses on how

human interaction makes organizational functioning possible. The relationship function helps individuals
define their roles and measure the compatibility of individual, group, and organizational goals. This
function is particularly important because it contributes to employee morale, role in the organization, and
organizational self-esteem. The relationship function establishes relationships with peers, superiors,
subordinates, and customers; and it further clarifies these roles.

The relationship function is accomplished by verbal and nonverbal communication. Scholars have
suggested that the informal organization, often characterized by the relational function, is more powerful
than the formal organization. Relational communication ranges from the informal conversations in a
break room to one’s job title, office space, or cubicle to how an individual is greeted on meeting.

Change Function. The final function of formal organizational communication is its change function. The
change function helps an organization adapt what they do and how they do it. This adaptation occurs in
decision making, internal and external changes in the environment, organizational repositioning, and
other change functions. The effectiveness of the change function of organizational communication is
associated with the survival of the organization and its ability to adapt to the changing environment.
Change communication is necessary for innovation and adaptation and is the process through which
organizations obtain existing and new information, and how they process this information in light of the
current situation and emerging trends.

Meaning-Centered Approach

The meaning-centered approach is a way of understanding organizational communication by

understanding how organizational reality is constructed through human interaction. This approach
describes organizational communication as a process of organizing, decision making, sense making,
influence, and culture. Pamela Shockley-Zalabak (2002) offers key assumptions of the meaning-centered
approach.

 All ongoing human interaction is communication in one form or another. A major theme in the
communication discipline is that an individual “cannot not communicate.” This is due in part to
verbal and nonverbal cues.
 Organizations exist through human interaction; structures and technologies result from the
information to which individuals react. This idea suggests that organizations cannot exist separate
from human activity. An organization relies solely on individuals’ enactment of organizing and
structuring. Karl Weick (1979) offered insight to these ideas by suggesting that organizations do
not exist per se but are a culmination of the ongoing human interaction surrounding events that
are continually created and shaped by these interactions. The meaning-centered approach to
 formal organizational communication describes communicating and organizing as a parallel
process.
 Organizing and decision making are essentially communication. This is the process of choosing
from among numerous alternatives to direct behaviors and resources toward organizational goals.
 Identification, socialization, communication rules, and power all are communication processes
that reflect how organizational influence occurs. The meaning-centered approach proposes that
influence is a necessary process for creating and changing organizational events. Influence plays
a role in understanding how individuals identify with their organizations, how organizations
attempt to socialize members, how communication rules direct behavior, and how individuals use
communication to exert power.
 Organizing, decision-making, and influence processes describe the cultures of organizations by
describing how organizations do things and how they talk about how they do things.
Organizational culture reflects the shared realities and practices in organizations and how shared
realities create and shape organizational events. The culture varies from organization to
organization depending on the individuals’ engagement with each other and the organization’s
goals. Culture describes the unique sense of the organization, its practices, and how the
organization describes itself.

References:

1. Eisenberg, E. (1984). Ambiguity as strategy in organizational communication. Communication

Monographs, 51, 227-242.
2. Eisenberg, E. M., & Goodall, H. L., Jr. (2004). Organizational communication: Balancing
creativity and constraint (4th ed.). Boston: Bedford/St. Martin’s.
3. Jablin, F. M. (2001). Organizational entry, assimilation, and disengagement/exit. In F. M. Jablin
& L. L. Putnam (Eds.), The new handbook of organizational communication: Advances in theory,
research, and methods (pp. 732-818). Thousand Oaks, CA: Sage.
4. Redding, W. C. (1972). Communication within the organization. New York: Industrial
Communication Council.
5. Shockley-Zalabak, P. (2002). Fundamentals of organizational communication: Knowledge,
sensitivity, skills, values (5th ed.). Boston: Allyn & Bacon.
6. Weick, K. (1979). The social psychology of organizing (2nd ed.). Reading, MA: Addison-
Wesley.