•It is about how information is sent and received within firms
•It is crucial for working successfully with others
•It enables to maintain relationships
•It allows to accomplish tasks while working with both individuals and groups
•It helps to overcome obstacles
•It creates a comfortable, trustful and psychologically safe feeling
The situation/environment in which communication occurs. This includes time, place & socio/psychological factors. A person’s understanding or interpretation of a particular event/message. The route through which communication takes place. This includes what the sender and receiver intend as the outcome of the communication. This includes anything that interferes with effective communication. (sometimes known as noise).
The way information is communicated is often governed by how firms are structured. Let us look at a few forms of business structures. Entrepreneurial – Here the decisions are made centrally. Pyramid – In this structure the employees have a role, shared decision making and specialisation is possible. Matrix – In this structure the employees with specific skills join project teams and individuals have responsibility. Independent – Such a structure is seen in professions where organisation provides support systems and little else.
In organizations, communication follows paths or channels. The communication between managers and subordinates is known as vertical communication because the information flows up or down the hierarchy. Channels between departments or functions involve lateral communication. Apart from the formal channels of communication, information also passes through an organisation informally. Communication is not complete until feedback has been received.