Unit – V

Communication
By
Dilip Johari (Asst. Prof.)
Mechanical Engineering Department
 What is Communication?
• Communication is the activity of conveying information. The word
communication has been derived from the Latin word ‘communis’, meaning to
share. It basically involves a sender, a message and a receiver.
• Communication is giving, receiving or exchanging ideas, data, information,
signals or messages through appropriate media, enabling individuals or groups to
persuade, to seek information, to give information or to express emotions.
• Communication is usually a two-way process. It is not just giving information or
signaling someone; it also involves the comprehension of the information or the
signal by the receiver.
• When the act of giving information or sending message reaches the recipient and
gets comprehended by him/her and the receiver sends feedback as desired by the
sender, the process of communication is said to be complete. Communication,
therefore, involves more than one person.
Cont…
• Communication is as old as human civilization. Man used to communicate with
his fellow beings by means of sounds, signals, gestures when there was no
language developed. It is communication which has transformed mankind into
the most developed rational and prosperous group on the earth.
• Communication is a continuous and dynamic process involving more than one
person. It is a cyclic process denoting continuous flow of information. It
essentially involves sender, message and recipient. The sender conceives ideas
and encodes them into suitable medium (facts, figures, pictures), sends them
through appropriate channel (email, phone, speech) to the recipient. The
recipient decodes the message, understands it and encodes feedback and sends it
to the sender. The process continues.
 The Process of Communication
• Communications refers to a set of techniques used for expressing ideas effectively and
the technology of transmission of information by print or telecommunication media.
• Communication is lexically meant to be the imparting or exchanging of information by
speaking, writing or using some other medium.
• It is the act of conveying intended meaning from one entity or group to another through
the use of mutually understood signs or semiotic rules.
 Definitions of Communication
• Communication is defined by different authors as follows.
• Ordway Tead
• “Communication is a composite of (a) information given and received, (b) of a learning experience in which
certain attitudes, knowledge and skills change, carrying with them alternations of behaviour, (c) of a listening
effort by all involved, (d) of a sympathetic fresh examination of issues by communicator himself, (e) of a sensitive
interaction of points of view leading to a higher level of shared understanding and common intention.”
• G.G. Brown.
• “Communication is transfer of information from one person to another, whether or not it elicits confidence. But
the information transferred must be understandable to the receiver.”
• Louis A. Allen
• “Communication is the sum of all the things one person does when he wants to create understanding in the mind
of another. It is a bridge of meaning. It involves a systematic and continuous process of telling, listening and
understanding.”
• Fred G. Meyer
• “Communication is the intercourse by words, letters or messages”.
• Keith Davis
• “Communication is the process of passing information and understanding from one person to another.”
 Importance of Communication in Society
• It is communication that binds people and society together. It is considered as
a natural process.
• Society moves on human interactions and exchange of ideas, thoughts, and
feelings. Relationship builds up through communication.
• Lack of communication among the people in society will severely affect social
cohesion and cohabitation. Progress and prosperity will come to a standstill if
there is no effective communication. Communication is a factor of building
and maintaining good relations. It enables people to understand each other.
• Communication is as important and meaningful in individual life as in the
society. Individuals make friends, builds up relationship and lead a true social
life through communicating effectively with the fellow beings.
 Importance of Communication in Business
• Communication is the lifeline of a business organization. It is essential for
realizing the objectives of an organization.
• According to Millet, “Communication is blood stream of an organization”.
• Chester I. Barnard viewed communication as the means by which people are
linked together in an organization to achieve a common purpose.
• The importance of communication can be assessed as follows:
• Communication is needed to establish and disseminate the goals of a business
organization.
• The smooth and unperturbed functioning of an enterprise.
• Communication helps the organization in arriving at vital decisions.
 Importance of Communication in Business
• It also helps a lot in planning and coordination.
• It is a basic tool for motivation and an increase in the morale of the employees
largely depend upon the effectiveness of communication.
• It helps a business as means of bringing about maximum production at the lowest
level by maintaining good human relationship in the organization.
• It works as an effective link between branches of the organization situated at
great distances.
• It helps in publicizing goods and services.
• It reduces rumors and ensures smooth running of the organization as a whole.
 Characteristics of Effective Communication
• The characteristics or principles of effective communication are pivotal for ensuring a productive communication.
The major characteristics are as follows:
• Completeness of the Message
• Communication must be complete so as not to baffle the recipient. Better communication helps in better decision-
making by the latter. It develops and enhances the reputation of an organization.
• Clearness and Integrity of the Message
• The message to be conveyed or sent must have clarity and integrity for better understanding. Clarity of thoughts
and ideas enhances the meaning of the message. The pith and substance of the message should be based on
honesty and accuracy.
• Conciseness of the Message
• The intended message must be free from verbosity and should be so written that it is intelligible at the first sight.
Short and intelligible message sent to the receiver is ever appealing and comprehensible. It saves time and cost as
it is understood at the first instance.
• Consideration of Physical Setting and the Recipient
• In order to make communication more effective, the overall physical setting, i.e., the media of communication
and the work environment, must be considered. The content of the message must take into account the attitude,
knowledge, and position of the recipient.
 Characteristics of Effective Communication
• Clarity of the Message
• The message should have clarity of thoughts and ideas in order to be understood clearly. Clear message makes
use of exact, appropriate and concrete words and symbols.
• Courtesy to be Maintained
• The sender's message should be so drafted or prepared that it should be polite, reflective, and enthusiastic. It must
show the sender's respect for the receiver and be positive and focused at the receiver.
• Correctness of the Message
• The drafting of the message should be done in such a manner that the final message doesn't have any grammatical
errors and repetitions of sentences. The message should be exact, correct and well-timed.
 Effective Business Communication
• Successful business largely flourishes on effective business communication.
Effective communication skills are vital for building active and effective
interactions among the colleagues, clients, bosses, and media.
• It is of foremost importance for all personnel in all phases of business life in any
organization.
• Although everyone employed in an organization boasts of having acquired the
skills of effective business communication, there is a need ever felt for improving
these skills.
 Methods of Effective Business Communication
• We will now see the different methods of effective business communication in brief:
• Web-based communication: For better and improved communication, anytime and
anywhere.
• Video conferencing: This allows people in different locations to hold interactive meetings.
• Reports – This is important in documenting the activities of any department.
• Presentations – This is a popular method of communication in all types of organizations,
usually involving audiovisual material, like copies of reports, or material prepared in
Microsoft PowerPoint or Adobe Flash.
• Telephone meetings: This allows speech over long distance.
• Forum boards: This allows people to instantly post information at a centralized location.
• Face-to-face meetings: The nature of such meetings is personal and should be succeeded by a
written follow-up.

• Effective Business communication can further be categorized into:

• Effective oral business communication
• Effective written business communication
 Effective Oral Business Communication
• Effective business communication mostly involves listening and speaking.
• Both the speaker and the listener share responsibility of making the message
clear and understood.
• Besides, body language, tone of voice, choice of words and phrases, message
clarification and communication style also play a role and impact the
effectiveness of interpersonal transaction and interactions.
 Techniques of Effective Oral Business
Communication
• In this section, we will discuss the different techniques of effective oral business
communication. The techniques are described below:
• Speakers should know how to articulate their message so as to enable the listener to
understand it well and deliver it in a manner that is consistent with the message itself.
• The speech or spoken words should be properly worded and concise.
• The speech should be contextual like serious issues are best delivered in a serious tone.
• Knowing the listener(s) and how they react is instrumental in conceiving the subject
matter of the speech.
• For effective business communication, quiet location counts much. If one party is
distracted by both external and internal distractors like sound, communication fails to
yield desired result.
• Involvement of all the concerned is of vital importance to make communication
effective. Involvement means complete attention and dedication to discussion or
analysis.
• Effective or active listening is essential for participants in a communication. It is
practiced by both the speaker and the listener in effective communication.
 Techniques of Effective Oral Business
Communication
• In order to become a better listener there is a need to eliminate all distractions during
the conversations.
• Active listening involves eye contact, nods, gestures and brief comments to show
understanding. On the basis of these gestures and comments, the listener’s
comprehension and reaction can be assessed. In case the listener seems confused, the
speaker needs to re-assess the wording or delivery of the message.
• The listener may ask questions, validate what is being said and provide input if
necessary.
• While speaking or interacting with someone, don’t just listen to whatever they are
saying- rather be attentive and make mental notes.
• Asking questions during discussion or an important conversation adds weightage to
communication. It also helps the participants to learn everything they need to know. It
shows that they are listening and confirming understanding and giving respect.
• Questions are powerful instruments to make communication effective. It enables the
persons concerned to get required feedbacks.
Cont…
• There are usually two types of questions to be asked during a
communication process.
• Close-ended questions, which are often answered with ‘yes’ or ‘no’ are essential when the
communicators want to gather basic information quickly or want to obtain an answer without a long or
drawn-out explanation.
• Open-ended questions provide a broader and more comprehensive answer.
• Feedback is a crucial part of communication and is vitally required by all concerned in a
communication process. It marks the end of a communication process. The communicator on one side
should convey his/her information in such a way that his/her targets can offer feedback or criticism on
the information given.
• During a particular conversation, a discussion or meeting proper and relevant communication types
and the mediums should be put in place. Visuals should be shown to present information in a pleasant
and palatable manner.
• Reinforcing a positive and supportive culture will develop a clear understanding between employees.
One of the very effective ways of communicating company’s culture is by taking help of the culture
deck.
• It is hard to have open communication if both sides fold their arms, clench their jaws and refuse to look
each other in the eye. Nonverbal communications like gesture, tone of voice, eye contact are more
meaningful than spoken words. If nonverbal messages are overwhelming the conversation, it might be
better to wait until things settle. Nod your head and maintain an open posture to show you're absorbing
what the other person is saying.
 Effective Written Business Communication
• Effective written business communication is an integral part of communication
system in a business organization. Not all the communications can be oral. There
has to be a number of mediums through which an organization can communicate
in the written form.
• E-mails, brochures, reports, letters, ads, speeches, articles, PowerPoint
presentations are instances of business written communication.
• Despite the fact that an overwhelming percentage of written communication is
now produced online the need to write well has not diminished. Organizations
produce ever increasing volumes of written communication in the form of
emails, social media posts, guides, brochures, manuals, reports, and proposals.
• Pros of Written Business Communication
• Following are the pros of written business communication:
• Written business communications can be edited and revised.
• They provide a permanent record of the messages and can be used as precedents.
• Enable the recipients to review the message and provide appropriate feedback
• They are considered more effective for complex business communication that include
facts and figures
• They improve inter-organizational efficiency and enhance the image of the organization
• They can be preserved as precedents in hard copy.
•Cons of Written Business Communication
• Following are the cons of written business communication:
• Delay in getting feedbacks unlike in face-to-face communication; it leads to frustration
and uncertainty in business situations where a quick response is desired.
• Time consuming when it comes to composing the message
Techniques of Effective Written Communication
 Effective Communication – Barriers
• Barriers refer to obstacles or hindrances that prevent movement, flow and
access of information in or outside of an organization.
• Barriers refer to specific items that can distort or prevent communication within
an organization. It affects effective exchange of ideas, thoughts and information.
• In a nutshell, anything that hinders the process of communication at any level is
a barrier to effective communication.
• Barriers can be originated at any point in the communication process:
➢They can be caused by the sender.
➢They may be found in the message transmission media.
➢They may arise while receiving the message.
➢There may be problems in receiver’s comprehending the message, etc.
 Barriers Caused By the Sender
• The success of communication of a particular content substantially depends upon the sender,
because he is the person who works on the drafts and finalizes the message to be sent. He/she
is the originator of the communication.
• The sender needs to be extremely while drafting or executing the communication to avoid
allowing barriers into the process.
• The sender-generated barriers are as follows:
➢Lack of knowledge or insufficient ideas about the receiver.
➢Negative attitude or lack of interest towards message; unwilling to communicate it.
➢Inappropriate choice of communication channel or medium by the sender in transmitting
the message.
➢Poor communication skills of the sender like use of improper and high sounding words;
grammatical errors, verbosity and unwanted use of idioms, phrases, jargons or slangs, etc.
➢Inability to decide the proper timing for communicating the message.
➢Indecisiveness to choose the content of the message to be communicated; it kills the
effectiveness of the communication.
➢Lack of concern for feedback from the receiver; it thwarts the intent of the communication.
 Barriers in Message Transmission
• Things that come in the way of smooth transmission of message are called
barriers in message transmission.
• Message transmission is disturbed because of the following barriers:
• Distortion: It occurs when the meaning of the message is lost while encoding
and decoding a message. Physical distractions are also there such as, poor
lightning, uncomfortable sitting, unhygienic room also affects communication
in a meeting.
• Noise: It is found in the environment of communication and interrupts the
communication process. Use of loud speakers interferes with communication. It
can be physical noise, written noise, technological noise, etc. Physical noise
occurs due to outside or background disturbances depending upon the location
of the organization.
• Overflow of Information: This acts like a barrier when the receiver does not
have the capacity to receive all the information and can miss some improtant
points or misinterpret the meaning of the whole message altogether
 Problems in Reception
• Let us now see the different problems encountered in the reception of a message in
the communication process.
• The problems are as follows:
• The sending of a message is complete when the receiver at the other end receives it,
understands it and then sends the desired feedback to the sender.
• If there are problems in receiving the message, the whole purpose of sending the
message is defeated.
• The message is the vehicle for the sender to share feelings, thoughts, and ideas. It is
the way the sender’s mental images are transmitted to the receiver.
• The message can be immediately clear and understood, or murky and misleading,
basing upon how well all of the components in the communication process have been
considered and accommodated.
• The meaning of the message is what the receiver assigns to it. If the sender has a
different image and perception of the message in mind than that of the receiver
about the sent message, the intent of message is distorted.
• In fact, one of the major challenges of communication is to make sure that the
meaning that is intended by the sender is the same as the meaning the receiver
assigns to the message when it’s received.
 Problems in Receiver Comprehension
• The receiver in the communication chain is as significant as the sender. The
receiver’s understanding the message as desired by the sender is the basic goal of
sending the message.
• However, the problems sometime arise in receiver’s comprehending the
message. Inability to comprehend on the part of the receiver leads to
development of prejudices in the mind of the sender.
• It happens because of the following factors:
➢Lack of Interest
➢Lack of Knowledge
➢Lack of Communication Skills
➢Conflicting Message
➢Emotional Distraction
➢Information Overload
 Barriers to Effective Communication
• Social
• Psychological
• Cultural
• Physiological,
• System design
• Physical
• Receivers
 Personal Selling
• Personal selling is the interpersonal part of the promotion mix and can include:
➢Face-to-face communication
➢Telephone communication
➢Video or Web conferencing
• The goal of the personal selling process is to get new customers and obtain
orders from them.
• Salespeople are an effective link between the company and its customers to
produce customer value and company profit by:
➢Representing the company to customers
➢Representing customers to the company
➢Working closely with marketing
 Steps in the Personal Selling Process

Prospecting identifies qualified potential customers through referrals from:

• Customers
• Suppliers
• Dealers
• Internet
 Steps in the Personal Selling Process
Qualifying is identifying good customers and screening out poor ones by looking
at:
• Financial ability
• Volume of business
• Needs
• Location
• Growth potential
 Steps in the Personal Selling Process
• Pre-approach is the process of learning as much as possible about a
prospect, including needs, who is involved in the buying, and the
characteristics and styles of the buyers

Objectives Approaches

•Qualify the prospect •Personal visit

•Gather information •Phone call
•Make an immediate •Letter
sale
 Steps in the Personal Selling Process

Approach is the process where the salesperson meets and greets the buyer and
gets the relationship off to a good start and involves the salesperson’s:
• Appearance
• Opening lines
• Follow-up remarks
 Steps in the Personal Selling Process

• Opening lines should be positive, build goodwill, and be followed by key

questions to learn about the customer’s needs or showing a display or sample
to attract the buyer’s attention and curiosity
• The most important attribute is for the salesperson to: listen
 Steps in the Personal Selling Process

• Presentation is when the salesperson tells the product story to the buyer,
presenting customer benefits and showing how the product solves the
customer’s problems
• Need-satisfaction approach: Buyers want solutions and salespeople
should listen and respond with the right products and services to solve
customer problems
Steps in the Personal Selling Process

Bad Traits Good traits

Good
Pushy Late Empathetic
listeners

Deceitful Disorganized Honest Dependable

Follow-up
Unprepared Thorough
types
 Steps in the Personal Selling Process

• Handling objections is the process where salespeople resolve problems that

are logical, psychological, or unspoken
• Closing is the process where salespeople should recognize signals from the
buyer—including physical actions, comments, and questions—to close the sale
• Follow-up is the last step in which the salesperson follows up after the sale to
ensure customer satisfaction and repeat business
 Risk Analysis
• It is a well established fact that every project involves risk.
• It is the normal practice to include a short summary of project risks in each
appraisal report.
• Firm risk stem from technological change in production process, managerial
inefficiency, availability of raw material, labour problems and changes in
consumer preferences.
 Sources of Risk
• There are various sources of risk. Any change in economy of a nation or globe,
any change in price levels of inputs or outputs may lead to risk. Let us
enumerate the various sources of risk.
• Operational risk : Any decrease in operational efficiency may lead to reduced
profitability or even at times can lead to loss for the project. In some projects,
the effects of decreased operational efficiency may be high or may not be high.
Similarly, the possibility of variation of efficiency may vary from project to
project. The breakdown of machines, demand and supply of the resources and
products, shortfall of the goods and services, lack of efficient logistic and
inventory may lead to inefficiency of production. Operational leverage is a
measure of operational efficiency.
• Market risk: Although every project undergoes market potential analysis and
demand forecasting, there are chances of variations due to various foreseen or
unforeseen reasons, which may adversely affect market potential or sales of
product or services to be rendered by the planned project. This is user
acceptance risk.
Cont…
• Economic risk: Global or national economy is always in different phases and no
project can shield itself from ongoing economic changes. All projects are prone
to risk of economy. Recession in economy reduces the purchasing power of the
customers and thus can affect the sales or revenues of the project. It can also
lead to reduce demand as well as selling price. Inflation rate varies with changes
in economic situation which also affects prospects of any project.
• Financial risk: Any change in interest rates or cost of capital will affect the
prospects of a project. A project which is feasible at the expected return of 12%
may become infeasible if the expected return increases to 15%. The expected
returns directly vary with interest rates. The degree of financial risk for different
projects varies with its debt equity ratio and can be measured by the financial
leverage.
• Technological risk: The failure of the selected technology is one of the biggest
risks to any project. Moreover, a project may face the problem of upgradation of
technology. Many projects have failed due to inability to cope up with
technological innovations. This particular source of risk is vital in the present
world scenario as technology is changing very fast.
Cont…
• Commercial risk: There is always the risk of a customer or debtor becoming insolvent.
Although the company does manage and keeps provision for such bad debts, at times
when the customer is a major one and the amount outstanding with him is large, it
may affect the working of the project.
• Quality risk: Today’s world is quality conscious and any degraded quality product may
lead to rejections and the brand may lose its value in the long run if it is not able to
maintain quality norms as per the customer’s requirement.
• Legal or regulatory risk: Political environment of a country may lead to changes in
legal or regulatory changes and may cause risk due to new taxes being imposed or
barriers to imports or exports being introduced.
• International risk: If international prices with addition of transaction cost
(transportation cost and duties) becomes less than domestic prices, there is an import
threat. Any change in foreign exchange rates also affects projects with international
exposure. A devaluated Indian currency may adversely affect a project which is
dependent on imports of goods or services. Similarly, devaluation of foreign exchange
may adversely affect project which are export oriented. Risk of war, imposition of
export or import bans and change in political scenario of a country can also lead to risk
in project involving international business.
 Managing Risk
• The various steps in managing risk are as follows:
Cont…
• Identification of risk: There are various methods used for risk identification.
They are:
➢Objective related risk identification: The activities of the project are not
in coherence with the objectives of the project.
➢Source based risk identification: The sources or the stakeholders of the
project are not as per expectations.
➢Industry based risk identifications: The overall sector of industry may not
be in a good shape.
➢Economy related risk identification: The project is not fulfilling the desired
performance due to poor economic conditions in aggregate.
➢Time based risk identification: The project is running far behind the
desired schedule.
➢Financial ratio based risk identification: This is one of the most common
methods of risk identification. Various financial ratios reveal the project getting
riskier.
Cont…
• Mapping out causes of risk and constraints involved: Identify the
cause/causes of the risk. There can either be one cause or more than
one possible causes for the risk involved. The project owner should
search as many possible causes as possible. There can be financial,
economic, marketing, production or technology constraints. The cause
identified may be varied in the boundaries of constraints. For example,
there is a high deviation in the cost of production; the cause can be poor
efficiency of the organization.
• Quantifying the risk: Various methods are used for quantifying the
risk.
• Develop the alternatives: There can be various methods of reducing
the risk, although it is not possible to eliminate it totally. There are
various methods of risk management which are as follows:
➢Mitigation: It is the process of reducing either the probability or
consequence of an event which can cause threat to the project. This
includes financial, marketing or other measures.
Cont…
➢Sharing: if a project is expected to have a higher risk, it can be shared with some
other firm using joint ventures to reduce the risk.
➢Outsourcing: This is a very common methodology used in recent years to reduce
the risk. The riskier component is outsourced. Outsourcing can also be very helpful in
the situation where huge capital investment is the cause of risk.
➢Diversification: Diversification is a very common methodology suggested since ages
to reduce the risk. Diversification to a product or project with high negative
correlation can reduce the risk of both the projects and products to a great extent.
➢Abandonment: If a project is exposed to risk which is not manageable then, the
project should be abandoned before its useful life. This is possible when exit is
possible.
➢Retention: Risk retention is a viable strategy for small risks. All risks that are not
reduced or transferred are retained by default. In this situation, the firm should
always be in a position to sustain itself in the occurrence of threatening event.
➢Contingency funding: Contingencies are reserved for additional cost due to
inflation or non-predicted costs. This eliminates sudden funding requirement during
project implementation.
➢Time buffers: Managers tend to start the activities at the latest start times as a
human practice. A too much crashing leads to problem in practical applications. Thus,
some time buffers are kept for certain activities.
Cont…
• Selection of best alternative: After developing various alternatives, the next
step for risk management is to select the best alternative, which is cheap and
easily manageable.
• Creation of risk management plan: The selected risk management strategy
should always be implemented properly to obtain the result. The project
manger should plan the strategy and share with all the stakeholders.
Individuals should be assigned responsibilities. In the event of risk retention
strategy, guidance should be provided to top management and the operations
management team to implement the measures in the situation of occurrence of
threatening event. The top management should be well aware of the action
plan and the risk involved.
• Implementation: The project manager should lead the team to implement
the plan. Constraints should always be identified and quantified before the
implementation of risk reduction plans. Coordination between the project
manager and his team is crucial in the success of the plan.
• Review: This is the phase, many a time, avoided by managers. But this is a
very important activity as review may help in further improvement (reduction
of risk to a greater extent). Moreover, if the desired results are not obtained,
then some more steps may be required which are identified during the review
phase.
 What is negotiation?
• Negotiation is back and forth communication designed to reach agreement
while leaving the other side intact and positive.
• Easier to negotiate when the two sides have some shared interests and some
opposed.
Soft:
• Participants are friends.
• The goal is agreement.
Hard:
• Participants are adversaries.
• The goal is victory
 Negotiation
Includes:
• Listening
• Ability to identify the interests of both sides
• Persuasion
• Diplomacy
• Building and preserving relationships
 The Six-Step
(Negotiation)Process
• State the problem/issue.
• Identify real needs (interests)on both sides.
• Restate the problem/issue(I think the real issue is…).
• Present possible solutions.
• Decide on the best solution.
• Reach consensus.
 Barriers to Negotiation
Self-perception
• It is more important to be liked than anything else
• Tend to feel more empowered to negotiate for colleagues than for self
(extension of protecting children)
• More likely to experience work opposition as harmful to friendship
• Too rule-oriented
• When anxious, tend to talk too much!
Power talk and Power actions
• Disqualify assertive statements” This needs to be done…is that OK?”
• Automatically apologize when noting another’s distress= admission of
responsibility
• Invite disagreement< “You may not like this, but….”
 Negotiation Outcomes
• Both sides should come to consensus and commit to the agreement
• The agreement should help to maintain ongoing communications and
interactions between the negotiating parties so that future negotiations can
take place
• Negotiations should lead to a better situation