GURU NANAK INSTITUTE OF MANAGEMENT STUDIES

BUSINESS COMMUNICATION

Team Members:
Mahesh Ankam 01 Ram Bhot 05 Rajesh Dasari 10 Dattaram Karanjekar 18 Ashish Pawar - 35

Communication Problem in Organization

Company Name - L&T Finance Ltd.

Objectives
Define the problem arises due to improper communication Resolve the problem using appropriate channel of communication

To achieve Minimum NPA as a organisational goal

Maintain good and healthy relationship with customer

Recommendations for Effective communication

Business Process
Provides the working capital loans by channel finance to customer Sanctioned Limit is valid up to 1 year Tenure period for this loan is 90 days from payment date Repayment followup starts after 60 days through telephonic calls and emails After maturity period reminder letters sent to customer NPA (non performing asset) in books is 90+180 days

Problem
Outstanding amount of Rs.10 crore with XYZ Ltd.
Remain unpaid from last 10 months inspite of several reminders.

Customer not responding to any telephonic calls and emails

XYZ Ltd. under NPA books

Used Communication channels

Repayment follow ups started through telephonic calls
not responding on telephonic calls

Start to send emails to XYZ Ltd. for over dues

not received any proper reply

Start to send Letters to XYZ Ltd. for nonpayment

not replied with any written communication

Impact of Miscommunication
To initiate Legal action against XYZ Ltd.

To declare NPA in L&T Finance Ltd. books

To register XYZ Ltd. name in defaulters list

Challenges
Good Past Track record of the customer since so many years Without spoiling healthy relationship between XYZ Ltd. and organization to recover debts

To Choose the appropriate channel to communicate effectively Depute responsible person to initiate recovery process

Barriers to effective communication

To remove barriers to effective communication
Physical Barriers
Noise / Time and Distance

Semantic Barriers
Interpretation of words / Bypassed instructions / Denotations and connotations

Socio Psychological Barriers

Attitudes and opinions / emotions / cultural diversity /closed mind / Frame of reference / status consciousness / inattentiveness

Closed words Perceptions Poor listening Inferring Credibility gap

Effective communication
Channel selected as Face-to-Face Communication Arranged business meeting with customer(promoter) at his place Deputed responsible person to initiate recovery process Collection and preparation of data for meeting

Cont.
Understood the actual problem caused for non payment of dues Appreciated customer past track record and performance

Assured about future business and commitment

Conveyed message to customer against strict action for NPA account as per our organization policy

Cont.
Alternate suggestions provided to customer during meeting:
To route the payments directly from other sources to clear our dues. Also provided the part payment facility to customer

Requested the customer to clear the dues Resulting with face to face communication, customer has given in writing to clear all over dues within stipulated time and also collected post dated cheques as per payment schedule

Way forward - Establish policy

Established the new policy regarding NPA accounts to arrange business meeting with customer before taking any strict action Inform the customer to route the payment directly to us from other business sources Get periodic confirmation of over dues from customer

Arrange quarterly conference for discussing customers issues