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CHAPTER ONE
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Introduction
Communication is an indispensable element in human relationships. Human beings interact
with one another through communication. Human beings have an inborn desire to
communicate with each other. It is the ability of to communicate effectively that has enabled
people to build organization and societies for survival and better living.
Communication is now all the more important in business management because the
success of the business depends upon how effectively its employees understand one
another. Most of the problems of the business can be attributed to poor communication
between management and labor.
Communication is thus essential for a business concern as blood and breathing are for life. No
business can develop in the absence of effective internal and external communication. In the
present era of globalization and advanced information technology, communication is
imperative and indispensable.
Meaning and Definition
The term “communication” is derived from the Latin word “communis” which means “to share”.
Communication, therefore, is a purposeful exchange of facts, ideas, opinions, emotions and
information that leads to a common understanding.
In other words, communication is a process by which meanings are exchanged between people
through the use of a common set of symbols. Communication is the systematic and continuous
process of making one-self understood by others and of understanding others.
The following are the most comprehensive definition for communication:
 Newman and Summer: “Communication is an exchange of ideas, opinions or emotion by
two or more persons”.

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 Haimann: “Communication means the process of passing information from one person
to another. It is the process of imparting ideas and making oneself understood by
others”.
 Allen: “Communication is the sum total of the entire things one person does when he
wants to create understanding in the mind of another. It involves a systematic and
continuous process of telling, listening and understanding.” This is a comprehensive
definition.
Business communication is therefore, the process of establishing a common understanding
between or among people with in a business environment.
Businesses must have internal and external communication in order to succeed day-to-day
operation depending on the exchange of information among employees. Performance
objectives, job instructions, customer order, production problems and solutions, and employee
accomplishment illustrate the range of vital information exchanged daily in the course of
business.
Nature of Communication
The analysis of the above definition will reveal the following characteristics of communication:
1) Two-way process: Communication is essentially a two-way process. It is a co-operative
process. It is a co-operative process involving two or more persons. Sender sends the
information to the receiver through a system of channel. The receiver receives
communication, understands it and starts acting upon it and gives a feedback to the
sender. Thus communication is interactional.
2) Continuous process: Communication is continuous and an on-going process because
every superior has to be in a regular touch with his subordinate to seek progress of
Activity 1.1
Define Business Communication

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work in conformity with standards. When communication is absent, human activity
ceases to exist. Hence, communication is unavoidable.
3) Dynamic process: It incorporates the changing shape of the participants and the
environment. Change in the moods and thinking of the sender and the receiver of the
message influence the effectiveness of communication.
4) Goal-oriented process: Communication can be effective if the sender and receiver both
are aware of the goal of communication and there is congruence of their goals.
5) Pervasive function: It is essential in all types of organizations and at all level of
management.
6) Basic purpose communication: The basic purpose of communication is to create mutual
understanding by giving or seeking information, persuading or influencing others and
eliciting actions.
7) Multidimensional and multidirectional process: Communication may be formal or
informal. It may be upward, downward, or horizontal. There are various directions in
which it flows.
8) Feedback: It refers to reaction, reply, response which the receiver sends to acknowledge
the understanding of the message.
9) Inter-disciplinary science: Knowledge derived from several sciences is used in
communication. Anthropology, psychology, sociology and political science have
provided insights to make communication effective.
10) Social process: It a social process because it involves two or more persons.
Communication is an exchange of information.
11)Universal: All living creatures (human beings, birds, beasts, etc.) communicate through
their own symbols and signs.

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Significance of Communication
Sound and effective communication plays a vital or significant role in organization in the
following ways:
1) Facilitates smooth working of the enterprise: It promotes a spirit of understanding and
co-operation. The successful completion of tasks on the part of the superior depends
upon the nature and flow of communication they receive from the subordinates and
vice versa.
2) Facilitates sound planning and decision-making: Managers need information, reports
and statements from various sources for formulating plans and taking various decisions.
Accurate and up-to-date information concerning the external and internal conditions
is necessary for taking decisions.
3) Helps in implementing of plans and decisions: Plans and decisions must be effectively
conveyed to those who can translate them into action. Managers must issue specific
orders and instructions through communication. Communication is essential for the
orientation and on-going training of both workers and executives at the right time.
4) Createsinterpersonal relation: Management is a social process and to get things done by
others the manager has to establish inter-personal relations with them. These relations
can be created by making exchange of ideas, opinions, information, directives
suggestions and other instructions with them.
5) Means of achieving co-ordination: Co-ordination can be achieved among various
related department by making exchange of information on regularly basis.
6) Boost morale: Sharing of information, experience and viewpoints with superiors
provides satisfaction to subordinates particularly on the concerned matters. As an
influence process, communication is an essential part of guidance, motivation and
leadership functions of management.

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7) Helps in humanizing organization: Through the various means of communication,
necessary information can be supplied to the employees and all sorts of
misunderstanding can be removed.
8) Effective control: Communication from the boss serves as the basis on which employees
regulate their work and know how well they are doing. A manager can correctly judge
the performance of his subordinate and takes suitable remedial actions on the basis of
feedback information from them.
9) Basis of leadership action: Leadership becomes inspiring and effective when the leader
remains in close touch with his subordinates. Effectiveness of leadership is greatly
influenced by the adequacy and clarity of communication.
10)Builds public image: Communication is indispensible for every organization to develop
and maintain reputation or goodwill in society. A business concern can keep itself in
close touch with its customers, investors, dealers, suppliers and other sections of society
through various forms of communication.
11)Helps in facing competition: It is through effective communication that the organization
becomes aware of competition and other potential threats and constraining factors.
12)Helps to cope with environment: By generating and compiling information on the
various aspects of environment and timely supply of such information to the managers,
Communication helps them in developing suitable strategies to cope with chaining
environment. No enterprise can thrive in a vacuum.
13)Helps in conducting global economic operation: Globalization of business operations
have increased the need and importance of communication. For a successful executive
it has become necessary to be aware of communication procedure and conventions to
get required knowledge of different culture which are preventing in various countries.
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Activity 1.2
Try to describe the role of Communication and Management

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Objectives of Communication
The main objective of communication is to inform, or to bring round to a certain point of view,
or to elicit action. The following are some of the other objectives of communication:
1) Conveying the right message: The main objective of communication is to convey the
right message to others which may be well-understood by them so that they may carry
on their work effectively and efficiently. For the managers, complete, accurate and
precise information is required to plan and organized.
2) Establishment of co-ordination: The purpose of communication is to co-ordinate the
activities or efforts of all those who are involved in running a business. Communication
establishes effective co-operation between various activities of a department, and also
between departments of the organization. Thus, communication is an effective tool of
co-ordination.
3) Developmentof managerial skill: Managers engage in communication for purpose of
improving their own knowledge and understanding. Communication helps the
manager to understand the behavior of his subordinates.
4) Good industrial relation: Communication develops good industrial relation because both
parties communicate their ideas to each other and try to understand the other’s views. It
promotes feeling of co-operation and good relation.
5) Effectiveness of policies: The objective of establishing effective communication system is
to communicate policies, practices, and programs to other party so that persons may
contact right person in emergency.
6) Development of employees: Communication provides necessary information and
directions to the employees from time to time by which they can come to know the best
method of doing their job.