Introduction

Exchange of directives, instructions, views and information in inevitable in business management. As Chester Barnard has stated “the first executive function is to develop and maintain a system of communication.” It is no exaggeration to say that the success of a manager depends as much on his skill in communication, as on his skill in other areas of management.

The world communication comes from Latin word ‘communicus’ which means –to share.
In simple words, “communication means exchanging information among individuals working in any organisation.”
Elliott Jacques described communication as “the sum of total of directly and indirectly, consciously and unconsciously transmitted feeling attitudes and wishes.”
According to the American Society of Training Directors, “communication is the interchange of thoughts or information in order to establish better human relations, mutual understanding or trust.”

CHARACTERISTICS OF COMMUNICATION:

Goal oriented Activity: Its aim is not convey or receive information only. Rather its purpose is to realise the basic objectives of the business unit. Communication is indispensable for realisation of objectives.
Transaction & Interaction: Communication is a two way process. It includes the acts of giving and receiving information both. The top officials do not just issue instruction or orders to their subordinates; rather they also receive and try to understand the information that the subordinate supply in turn. That issuing orders, try to know the reactions of the subordinates and whether they have fully understood the orders or not.
Communication is internal to the organisation in the sense that it is confined to only members to the organisation who use it. Advertisement in the newspaper intended for the customers are not included in the concept of communication. However, when a manager asks his accountant to prepare some statement, it is a part of communication.
Perpetual Process: Communication is a perpetual process. The exchange of views and opinions goes on continuously among the employees of a business enterprise. Communication begins as a business is launched and it ends only when the business is wound up.
Administrative Process: Communication is administrative in character. In ordinary life, a letter or an administrative is treated as a means of communication, but in business the word communication refers to administrative or managerial communication only. Through communication, the problem of management is solved.
Human Process: Communication is a kind of human process. It is effected between two human beings. The intercom, telephone and radio are merely physical instrument, which help human beings communicate with one another.
Dynamic: Communication is a huge process. Communication is not a static, it is growing everyday. Many words are installed in the field of communication everyday.
All Pervasive: Communication is an all-pervasive process in the sense that communication can be among the persons in the same level of management or among the persons in different levels of management.

Internal communication may again be of two types: formal or official and informal. Formal communication flows along prescribed channels, which all members desirous of communicating with one another are obliged to follow. Formally, a clerk cannot directly communicate with the Managing Director. He must talk to his supervisor, who will pass on the message to the department manager, from where it will go to the Managing Director. Formal communication may move vertically or horizontally. Vertical communication can flow downward or upward. Horizontal communication flows between employees of equal status. In addition to these formal channels of communication, there exists in every organization an informal channel, often called the grapevine, that does not arise out of the organisational needs, but that is, nevertheless, an integral part of its communication system. When a number of people, irrespective of their status, sit down and confer with one another to arrive at a decision acceptable to all, it is called consensus.

Downward Communication

Downward communication flows from a superior to a subordinate. The Managing Director communicating with the departmental head, a manager giving a directive to an assistant manager or a supervisor, a foreman instructing a worker, are all engaged in the process of downward communication. Orders, instruction, policy statements, etc., fall under downward communication. Downward communication is eminently suited to an organisation in which the line of authority runs distinctly downward, with each rank clearly below another, to which it is directly related.
To give specific directives about the job being entrusted to a subordinate; to explain policies and organisational procedures; to apprise the subordinated of their performance; to give the subordinates information about the rationale of their job, are the main objectives of the downward communication.

Disadvantages of downward communication:
1. Under- communication and over- communication. Downward communication is often marred by either under- communication or over- communication, that is, a supervisor may talk either too little or too much about a job. Sometimes the supervisor act in a presumptuous manner. Under- communication may also involve incomplete instruction. Over- communication may lead to the leakage of confidential information or the message may get lost in a jungle of irrelevant details.
2. Delay. The lines of communication in downward communication being very long, transmitting information to the lowest worker is time-consuming process. By the time information reaches him, at may have lost much of its significant or it may have caused damaging delay.
3. Loss of information: Unless the communication is fully written, it is not likely to be transmitted downwards in its entirely. A part of it is almost certain to be lost. In fact, it has been experimentally verified that ‘only 20% of the communication sent downward through five levels of management finally gets to the workers’ level.’
4. Distortion. In long lines of communication, information is not lost but even distorted. Exaggerating, making under-statements, giving unconscious twists to facts are a part of human nature. By the time it reaches its destination, it may not contain even an iota of truth.
5. Built in resistance: Downward communication smacks of too much authoritarianism. The subordinates do not get any opportunity of participating in the decision-making process. They are expected to receive the policy decision and directives without questioning their appropriateness, utility or validity, which they resent.

Advantages of downward communication
1. Managers should keep themselves well informed of the objectives, activities and achievements of their organisation. If they are themselves in possession of adequate information, they will be able to transmit information of their subordinates in an effective manner.
2. Manager must work according to a communication plan, so they decide beforehand how much information is to be communicate and what time. This will ensure that there is neither a communication gap nor over- communication or under- communication.
3. Information passed on to the correct person in the hierarchy. If the MD by passes the departmental heads to communicate directly with the lower staff, he is subverting the organisational structure and creating future problems for the smooth flow of downward communication.

Upward Communication

If the manages have to transmit information down the line of authority, they have also to receive information continuously emanating from levels below them. The communication channel, which pushes the flow of information upward, is known as the upward channel of communication.
For the upward communication, some methods are in used.
Open-door policy. The employees are given a feeling that the manager’s doors are always open to them. Whenever they like they can walk into his room, without any hesitation whatever, and talk to him about their problems.

1. Complaints-and-suggestions boxes. At some convenient place in the office, complaints-and-suggestion boxes are installed. The employees are encouraged to drop their complaints or suggestions.
2. Social gatherings. Social gathering are frequently arranged in different departments. These gathering offer a very informal atmosphere in which the employees shed their inhibitions and feel free to talk about their problems.
3. Direct correspondence. Sometimes the manager may directly write to an employee and ask him to communicate with him. Alternatively, the employees may write to their higher-ups at their own initiative.
4. Counselling. In some organisations, workers are encouraged to seek the counsel of their supervisor on their personal problems. What they think to be their personal problems is often a conglomeration of domestic and official problems. As they feel encouraged to talk about themselves freely, they provide the managers with valuable information.

Disadvantages of upward communication
1. Employees are usually reluctant to initiate upward communication. The managers might keep their doors open, but they cannot force the employees to walk into their room.
2. Employees often feel that if they communicate their problem to their superiors, it may adversely reflect on their own efficiency. If a supervisor has trouble in getting cooperation from his workers and points it out to the departmental manager, the letter might feel that the supervisor himself is incompetent.
3. Upward flow of communication is more prone to distortion than downward communication. In downward communication, distortion is often unconscious. However, upward communication is deliberately distorted. Some managers lose their cool if they are confronted with unpleasant fact. So information, particularly of the unpalatable sort, is suitably ‘edited’ before it is passed on to them.
4. Sometimes in the process of upward communication, workers become too bold, ignore their immediate superiors and directly approach the topmost authorities with their suggestions or complain. These officers who have been by-passed feel slighted, while the high-cups get suspicious of the workers’ intentions. The relations between the workers and their immediate superiors get strained and work suffers.

Advantages of upward communication
1. Providing feedback. Upward communication provides the management with necessary feedback. The management is able to ascertain whether the directives issued to the lower staff have been properly understood and followed.
2. Outlet for pent-up emotions. Upward communication gives the employees an opportunity to vent their problems and grievances. Although the management often thinks it knows and realises the grievances of the employees, the latter hardly feel convinced and satisfied. In any case, it is of vital importance to look at the employees problems as they look at them. The genuine and pressing grievances are redressed; a ground is prepared for the solution of some other problems; and with regard to those problems, which cannot be immediately solved.
3. Constructive suggestions. Often employees offer constructive suggestions to promote the welfare of the organisation. Some of these suggestions, when implemented, definitely prove beneficial.
4. Easier introduction of new schemes. Since the employees feel themselves to be a party to the decision-making process, it helps the organisation to introduce new schemes without antagonising the employees.
5. Greater harmony and cohesion. Upward communication acts as a kind of lubricant. It makes the atmosphere in the company congenial and creates greater harmony and cohesion between the management and the employees.

Horizontal Communication

It is also called as the face to face communication. Communication between department or people on the same level in the managerial hierarchy of an organisation may be termed as horizontal communication. It is most frequently used channel of communication. Workers communicating with other workers, clerks exchanging information with one another, supervisors holding a coffee break sessions to discuss some organisational problems are all engaged in horizontal communication. Horizontal communication is most effectively carried on through oral means. It is also called face-to-face communication. These situations carry with them an air of informality. Formal channels tend to make managers status-conscious so that they express their views in extremely measured terms. Periodical meetings among the departmental heads are also use for oral communication. Among written means, letters, memorandums and reports are most frequently used.

Advantages of horizontal communication
Horizontal communication is extremely important for promoting understanding and coordination among various departments. Not much imagination is needed to visualise the embarrassing situations that lack of coordination might creates for the organisation. The purchase department might keep on purchasing material, which is neither immediately needed nor can be adequately stored. The stores may report shortage of material when production is fully geared up. Scarcity of raw material may cause the production to slow down but the sales department may continue booking orders.

In a small organisation, these functions are often concentrated in the same person or in a few persons who are stationed in close proximity to one another. Some managers discourage horizontal communication, feeling that workers may get friendly with one another and may pose problems for the managements. They believe in issuing orders from the top and insist on their unqualified acceptance. However, such a procedure suffers from two very grave disadvantages. If all authority rests with one person at the top, and no scope is left for mutual discussion and solutions at the lower levels, work may be held up every now and then for want of fresh directives. This causes unnecessary delay. Secondly, this kind of authoritarianism is likely to provoke bitterness and indignation among the workers.

Grapevine

Apart from the formal channel of communication, there operates in every organisation an informal channel of communication called the grapevine. It follows no setlines, nor any definite rules, but spreads like the grapevine, in any direction, anywhere and spreads fast. It is quite natural for a group of people working together to be interested in one another and talk about appointments, promotions, retrenchments or even domestic affairs like the estranged relations of an employees with his wife or the romantic involvements of another. Information on most of these matters is secret but some people derive great pleasure from gathering such ‘secret’ information and transmitting it to others. They are leaders who control the grapevine.
The grapevine is a channel of horizontal communication, for it is only people working at the same level of hierarchy who can informally communicate with one another with perfect ease. Because of the damaging effect the grapevine is capable of producing; some managers are highly suspicious of it and want to stop it completely.

Disadvantages of the grapevine
1. Distortion. The grapevine respects nobody and it may ascribe the worst possible motives to the noblest of people. Thus, one of the major drawbacks of the grapevine is that it may spread baseless or distorted news, which may sometimes prove harmful even to the employees.
2. Incomplete information. The grapevine information is usually incomplete. Therefore, there is every likelihood of its being misunderstood or misinterpreted.
3. Damaging swiftness. The swiftness with which the grapevine transmits information may even be damaging. A rumour may have spread and caused serious damage before the management becomes aware of it and can take any rectifying steps.

Advantages of the grapevine
1. A safety valve. Apprehensions experienced by workers on matters like promotions and retrenchments become an obsession with them. Taking about them may not alleviate their fears, but it certainly provides them emotional relief. Thus, the grapevine acts as a kind of safety valve for the pent-up emotions of the subordinates.
2. Organisational solidarity and cohesion. The existence of the grapevine proves that the workers are interested in their associates. The very fact that they talk among themselves helps to promote organisational solidarity and cohesion. Properly used, the grapevine may even raise the moral of the workers.
3. Supplement to other channels. All information cannot be transmitted to the employees through the official channels. If there is some useful information unsuitable for being transmitted through official channels, it can be transmitted through the grapevine.
4. Quick transmission. The speed with which information is transmitted through the grapevine is just remarkable. Rumours, they say, spread like wild fire. Just spot a leader of the grapevine and give him some information, cleverly describing it as ‘top secret’, and within minutes, it will have reached everybody.
5. Feedback. The grapevine provides feedback to the management. It enables them to know what the subordinates think about the organisation and its various activities.

Consensus

The concept of consensus is quite familiar in the political sphere. When the President or the Vice-President is to be elected, it is felt that keeping in view the dignity of these high offices, they should not be made objects of controversy and the decision should be unanimous. A few names are come and some kind of consensus about the person acceptable to all the parties is arrived at. That person is elected the President. This is how a clash is avoided. In the commercial field also, it is felt desirable that when the board meeting is held, decisions should be arrived at through consensus. It simply means that the majority of people subscribe to a particular view, which all the members are willing to accept in the larger interest of the organisation. Consensus involves consultation. The chief executive plays a very significant role in enabling all the members to arrive at a consensus. He collects all the facts and information that might have a bearing on it. The views of the members are carefully listened too. In the light of this discussion the solution most likely to be accepted of a problem and is put forward and a kind of decision is arrived at. It is largely depends upon the chief executive whether he will allow the discussion just to fritter way into trivialities.

Disadvantages of consensus
1. One obvious disadvantage of the consensus process is that a member is forced to subscribe to a view he does not hold. If dissents are all the time being stifled in the name of consensus, discontent keeps on simmering below the surface and may at some time erupt rather violently.
2. Very often, the process of consensus becomes an accommodation of interest. A might keep quite in the interest of B and then expect B to suppress his dissent when A’s own interest is involved. This is, in fact, conspiracy in the name of consensus.
3. if decisions are taken through consensus after holding consultations among that subordinates, the letter may get a feeling that their superiors are incapable of taking independent decisions. They may loss respect for them and their confidence in their ability and competence may be shaken. They may also begin to assume airs.

Advantages of consensus
1. Since the decisions are taken after consultation among various members, they find it easy to accept them. The consensus process is often used to bring about agreement between the managements and the trade unions.
2. Consensus helps to project an image of unity and harmony in the organisation. The employees develop confidence in their superiors and their morale is considerably raised.
3. Unnecessary and undesirable conflicts and splits are avoided.