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. Channel

It is the medium through 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.

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.
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.

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

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.

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 rumours which are not true. People’s behaviour is
often affected by the rumours 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.