UNIT - IV

DIRECTING

1
UNIT - IV
DIRECTING
DEFINITION:
“Directing may be defined as the process of instructing, guiding
and inspiring human factors in the organisation to achieve
organisational objectives”
 It is not only issuing orders and instructions by a superior to his
subordinates but also including the process of guiding and
inspiring them to work effectively.
 Directing concerns the total manner in which a manager
influences the actions of subordinates.
 It is the final action of a manager in getting others to act after all
preparations have been completed.
Direction includes the following elements:
 Motivation
 Leadership
 Communication
2
NATURE OF DIRECTING:
Directing is an important managerial
function through which the management
initiates actions in the organization.
It is performed at all levels of
management.
Every manager in the organization
performs his duties both as a superior and
a subordinate.
It is a continuous process and it continues
throughout the life of the organization. 3
SCOPE OF DIRECTING
 Directing conveys management perspective of the
organization to the individuals and motivates them
to function in the desired way to meet the
organizational objective.
 Directing integrates the employee’s individual
efforts to make it effective to achieve organization
objectives.
 Directing provides the way to utilize the capability
of the individual and attempts to get maximum out
of them.

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FOUNDATIONS OF INDIVIDUAL
AND GROUP BEHAVIOUR

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FOUNDATIONS OF INDIVIDUAL BEHAVIOUR
Human behaviour is a complex phenomenon.
It is very difficult to define in absolute terms.
An individual makes a variety of contributions to
an organization in the form of efforts, skills,
ability, time, loyalty and so forth.
These contributions presumably satisfy various
needs and requirements of the organization.
In return of contributions, the organization
provides incentives such as pay, promotions and
job security to the employee.
6
FOUNDATIONS OF GROUP BEHAVIOUR
 The study of group behaviour is essential for an organization to
achieve its goals.
 Individual and group behaviours vary from each other.
 Human behaviour consists of individuals, who move in groups.
 The knowledge of group behaviour as well as individual
behaviour is necessary for a manager.
 He must understand group psychology and should also
understand individual behaviour in the context of group
behaviour.
 Group behaviour depends on many factors such as
organizational conditions, group member resources, group
structure, group status, group composition, group process,
group tasks, group decision-making, group cohesiveness and
group thinking.
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CREATIVITY AND INNOVATION
CREATIVITY
• An important factor in managing people is creativity.
• The term creativity usually refers to the ability and power
to develop new ideas.
• To have an effective research organization, it requires the
understanding about creative process, identifying and
acquiring creative people and maintaining an
environment that supports creativity.
• Characteristics of Creative People:
• Self-confidence and independence
• Curiosity
• Approach to problems
• Some personal attributes 8
INNOVATION
• In an organization innovation means a new
product, a new service or a new way of doing
things.
• Managers in organization’s must create an
environment that fosters entrepreneurial spirit
and actions.
• Innovations come out because of the following
situation:
– The unexpected event, failure or success.
– The process or task that needed improvement
– Changes in the market or industry structure
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MOTIVATION
 Motivation is the art of getting work done from the
subordinates in order to attain common goals of the
organization.
 Getting work done is a difficult task.
 For this purpose, the management should inspire and
motivate the people for the accomplishment of organizational
objectives.
According to Koontz and O'Donnell, "Motivation is a general
term applying to the entire class of drives, desires, needs,
wishes and similar forces that induce an individual or a group
of people to work“.
Scott defines, “ Motivation means a process of stimulating
people in action to accomplish desired goals.
Edwin B. Flippo “Motivation is the process of attempting to
influence others to do your will through the possibility10 of
reward.
NATURE OF MOTIVATION
 Motivation is an unending process because
human needs are unlimited.
 Motivation is a psychological concept, which
generated within individual.
 Motivation is a behavioural concept that directs
human behaviour towards certain goal.
 Motivation can be either positive or negative.
 Positive motivation implies use of incentives,
rewards etc to satisfy human needs.
 Negative motivation emphasis penalties etc.,
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IMPORTANCE OF MOTIVATION
 Motivation create a willingness on the part of
workers to do the work in a better way.
 A proper motivation improves the efficiency of
operation.
 Higher motivation leads to job satisfaction. As a
result of this, labour absenteeism and turnover
are low.
 Motivation helps to solve the labour problems and
maintains good labour relations.
 By providing the proper motivation, all the
members will try to be as efficient as possible and
to improve upon their skill and knowledge. 12
MOTIVATION PROCESS
1. ANALYSIS OF SITUATION:
 The situation that needs motivational inducement must
be created so as to ascertain the motivational needs.
 Since the needs of different employees differ both in
nature as well as intensity, a composite view of the
collective needs of the group is established with
appropriate recognition of differences in individual
needs.
2. PREPARING, SELECTING AND APPLYING A SET OF
APPROPRIATE MOTIVATIONAL TOOLS:
 A list of all devices of motivation is drawn and a
selection made of such motivators that motivate
different types of people under different circumstances.
13
MOTIVATION PROCESS contd…
3.FOLLOW-UP:
• It is important to know that the motivators
selected are providing the desired motivation.
• This can be accomplished by getting and
evaluating the feedback.
• If these motivators are not showing the
optimum effect, then alternative motivators
should be selected and applied.

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TYPES OF MOTIVATION
POSITIVE MOTIVATION:
 It involves a proper recognition of employee’s efforts and
appreciation of employee contribution towards the goal
achievement.
 Economic benefits, participation in decision-making
process, pride, delegation of authority and responsibility
are some methods of positive motivation.
NEGATIVE MOTIVATION:
 This motivation is based on force, fear and threats.
 The fear of punishment or unfavourable consequences
affects the behavioural changes.
 If the worker fails to complete the work, they may be
threatened with demotion, dismissal, lay-off, pay cut etc.,
15
EXTRINSIC MOTIVATION:
 This motivation is induced by external factors which are
primarily financial in nature.
 These motivations include higher pay, retirement
benefits, rest periods, holidays, profit sharing schemes,
health and medical insurance, vacation etc.,
INTRINSIC MOTIVATION:
 Intrinsic motivation is available at the time of
performance of work.
 These motivations provide a satisfaction during the
performance of work itself.
 These motivations include praise, recognition,
responsibility, esteem, power status, participation etc.,
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MOTIVATIONAL THEORIES
1.CARROT AND STICK APPROACHES OF MOTIVATION:
 The carrot and stick approaches are based upon the old
belief that the best way to get work from a person is put
a reward (carrot) in front of him or to hold out the threat
of punishment (stick) from behind.
 The ‘carrot’ is the reward for working and ‘stick’ is the
punishment for not working.
 Under this approach, employees who perform the task
well are given rewards in the form of bonus, pay rise,
promotion etc.,
 While employees avoid work, punishments are given,
such as demotion, termination from work, transfer to an
unpleasant job etc., 17
2.McGregor’s Theory X and Theory Y:
 Professor Douglas McGregor has developed a set of
theories on the basis of hypothesis relating to human
behaviour.
 These theories are commonly known as “Theory X” and
“Theory Y”.
 According to McGregor, the function of motivating people
involves certain assumptions about human nature.
Theory X
 According to McGregor, theory X is based on the following
assumptions of human nature and behaviour:
 The average human dislikes to work. He will avoid work if it
is possible.
 The average human being prefers to be directed. He avoids
responsibility. He has no ambition in life. He wants only job
18
security.
 An average man is inherently self-centered and
indifferent to organizational goals.
 He is resistance to change by nature.
 The above assumptions are negative in nature.
 Therefore people must be controlled, directed
and threatened with punishment to make
them work.
 A manager must take effective steps to direct
and control the activities of subordinates.
 Theory ‘X’ is pessimistic, static and rigid.
 It leads to authoritative type of management.
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THEORY ‘Y’
According to theory – Y, the following assumptions are
made about the human nature and behaviour:
 Work is as natural as play or rest. The average human
being has the tendency to work.
 Man will have self-direction and control. By this
organizational objective can be achieved.
 People will be committed to the objectives, if they are
properly rewarded.
 Under proper conditions, the average human being
accepts the responsibility.
 Large numbers of people are capable of solving
organizational problems in an organization with high
degree of imagination and creativity. 20
 A worker may exhibit his efficiency even for non-
monetary rewards such as participation in decision-
making, increased responsibility.
 Theory Y represents a modern and dynamic nature
of human rights.
 It is based on positive motivation.
 So, management does not need to apply much
direction and control on the employees.
 If the employee’s needs are satisfied, they will be
committed to the objectives of the organization.
 Theory Y is optimistic, dynamic and flexible.

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McGregor’s Theory X and Theory Y
THEORY X THEORY Y
• The average human dislikes • Work is as natural as play or
work rest
• People are unambitious and • Ambitious and capable of
prefer to be directed by directing their own.
others.
• External control, threatening • Self directed and self
and close supervision is controlled.
required.
• People lack self motivation. • People are self motivated.
• Authority is centralized. • Authority is decentralized
• They have less creativity and • They have high degree of
resist to change. imagination.

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3) HIERARCHY OF NEEDS - MASLOW’S THEORY:
 One of the most widely mentioned theories of motivation is the hierarchy
of needs theory put forth by eminent American Psychologist Dr.Abraham
H.Maslow.
 Dr.Maslow was the pioneer in the proper classification of human needs.
 Maslow saw human likings are innumerable and never ending if one liking
is satisfied , another like emerges in that place.
 Maslow proposed that basic needs are structured in a hierarchy, as shown
in figure.
As per his theory these needs are:
(i) Physiological needs:
 Physiological needs are the biological needs required to preserve human
life.
 These needs include needs for food, clothing and shelter.
 These needs must be met at least partly before higher level needs emerge.
 These needs are the most powerful motivating force than others.
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(ii) Safety needs:
 Once physiological needs are satisfied, the safety or security needs
become predominant.
 These include
1. Protection from physiological dangers (fire, accident)
2. Economic Security (fringe benefits, health, insurance)
3. Desired for an orderly, predictable environment
4.The desire to know the limits of acceptable behaviour.
(iii) Social needs:
 After the needs of the body and security are satisfied, then a sense of
belonging and acceptance becomes predominant in motivating
behaviour.
 These needs are for love, friendship, exchange of feelings and
grievances, recognition, conversation, belongingness, companionship
etc.,
 Social needs tend to be stronger for some people than for others and
stronger in certain situations.

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(iv) Esteem needs:
 There are two types of esteem needs.
 Self-esteem
 Esteem of others
 Self-esteem needs include those for self-confidence, achievement,
competence, self-respect, knowledge and for independence and
freedom.
 The second group of esteem needs is those that related to one’s
reputation needs for status, for recognition and for appreciation.
(v) Need for self-actualization:
 These needs are also called as self-realisation needs
 Self actualisation refers to the desire to become everything that one is
capable of becoming.
 For example, a doctor thinks that he is capable of saving the life of a
patient.
 A teacher thinks that .he is capable of giving best teaching to students.
 Maslow regards this as the highest need in his hierarchy. 26
ANALYSIS OF MASLOW’S HIERARCHY OF NEEDS:
 In the above mentioned five needs, the first three needs
(i.e. physiological needs, safety needs and social needs) are
regarded by Maslow as lower level of needs.
 The remaining two needs (i.e. Esteem and Self-
actualisation needs) are regarded as higher level needs.
 The lower level needs can be satisfied by monetary and
non-monetary compensation.
 The non-monetary compensation includes love,
recognition, good working conditions etc.,
 The higher level needs are satisfied through participation
in decision-making process, delegation of authority and
responsibility, more freedom, self-development etc., 27
MASLOW’S NEEDS THEORY
•
Self-Actualization
Achieve full potential,
needs Fulfillment
Esteem
• Self-Respect, Self-
Needs Esteem, Respected by
Others
• Affection, Acceptance,
Social Needs
(Love & Belonging)
Inclusion
• Protection, Stability,
Safety
Pain Avoidance,
Routine/Order
Basic Human Needs • Food, Air, Water,
(Physiological)
Clothing
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4.Herzberg’s Theory - Hygiene Approach to Motivation:
 This theory is also known as Herzberg Motivation maintenance
theory or Motivation Hygiene theory or two-factor theory of
motivation.
 He stated that feelings of unhappiness or dissatisfaction were
related to the environment in which people were working.
 If a factor is responsible for ‘job satisfaction’, the absence of
such a factor would not mean job-dissatisfaction, but it might
be called as ‘no job-satisfaction’.
 Similarly, the opposite of ‘job-dissatisfaction’ is not job
satisfaction but it might be ‘no job-dissatisfaction’.
 Thus, these theories are based on two factors:
 Hygiene or Maintenance Factors
 Motivational factors 29
Herzberg Maintenance or Hygiene factor:
 According to Herzberg, Maintenance or Hygiene factors are necessary
to maintain a reasonable level of satisfaction among employees.
 These factors do not provide ‘satisfaction’ to the employees but their
absence will ‘dissatisfy’ them.
 Herzberg identified some maintenance or hygiene factors as:
1. Company Policy and administration
2. Technical Supervision
3. Interpersonal relations with subordinates
4. Salary
5. Job security
6. Working conditions
7. Status
8. Interpersonal relations with superiors

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Herzberg Motivational factor:
 Motivational factors create ‘satisfaction’ to
the workers at the time of presence but their
absence does not cause ‘dissatisfaction’.
 Herzberg identified some motivational factors
as:
1. Achievement
2. Recognition
3. Advancement
4. Opportunity for growth
5. Responsibility
31
Frederick Herzberg’s motivation-hygiene theory:

Motivation factors
• Company policy & increase job
administration satisfaction
• Supervision
• Interpersonal relations
• Working conditions • Achievement
• Salary
recognition
• Status • Work itself
• Security • Responsibility
• Advancement
• Growth
Hygiene factors avoid
job dissatisfaction
32
SPECIAL MOTIVATION TECHNIQUE:
 Some of the major motivational factors identified
are:
1. Money
2. Participation
3. Quality of work life
4. Job security
5. Effective communication
6. Power of Authority
7. Financial and Non-financial incentives

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JOB SATISFACTION:
 Job satisfaction is the mental feeling of favorableness
which an individual has about his job.
 DuBrins has defined “Job Satisfaction is the amount of
pleasure or contentment associated with a job. If you
like your job intensely, you will experience high job
satisfaction. If you dislike your job intensely, you will
experience job dissatisfaction”.
EFFECTS OF JOB SATISFACTION:
1. Physical or mental health
2. Productivity
3. Absenteeism
4. Employee turnover 34
JOB ENRICHMENT:
 Job Enrichment is a management concept that involves
redesigning jobs so that they are more challenging to the
employee and have less repetitive work.
 According to Beatty and Schneider, “ Job Enrichment is a
motivational technique which emphasizes the need for challenging
and interesting work. It suggests that jobs be redesigned so that
intrinsic satisfaction is derived from doing the job”.
 For Job Enrichment, keep in mind the following goals:
1. Reduce repetitive work
2. Increase the employee’s feelings of recognition and achievement
3. Provide opportunities for employee growth (i.e. an increase in
skills and knowledge without a job promotion)
4. Provide opportunities for employee advancement (i.e.
promotions into jobs requiring more skills)
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LEADERSHIP

36
LEADERSHIP
 Leadership is an integral part of management
and plays a vital role in managerial operation.
 Leader is the person who leads or commands a
group, organization, or country.
 Leadership is the process of influencing the
behaviour of others towards the accomplishment
of goals in a given situation.
 Leadership is the art of motivating a group of
people to act towards achieving a common goal.
 The process of encouraging and helping others to
work enthusiastically towards objectives. 37
Definition:
Koontz and O’Donnel have defined
“Leadership is the art of process of
influencing people so that they will strive
willingly towards the achievement of
group goals”.

George R.Terry has defined , ‘Leadership

is the activity of influencing people to
strive willingly for group objectives ’.
38
NATURE OF LEADERSHIP:
1. Leadership is a relationship between two or
more people in which influence and power
are unevenly distributed.
2. A leader must have followers. If a leader does
not have followers, he cannot exercise his
authority.
3. Leadership is essentially a continuous process
of influencing behaviour. It is a psychological
process.
4. A leader influences his followers willingly not
by force. 39
IMPORTANCE OF LEADERSHIP:
1. Motivating employees:
A good leader motivates the employees for higher
performance. A good leadership in the organization
itself is a motivating factor for individuals.
2. Leader develops team work:
The leader should make the environment to work
efficiently. He studies the employees individually and
instills interest in them.
3. Better utilization of Manpower:
A leader implements the plans, policies and
programmes of an organization to utilize the available
manpower effectively.
40
4. Creating confidence to followers:
A good leader may create confidence in his
followers by directing them and giving them
advice.
5. Directing group activities:
The personal conduct and behaviour of a leader
can direct others to achieve organizational goals.
6. Building morale:
Morale is expressed as attitudes of employees
towards organization, management and
voluntary cooperation to offer their ability to
organisation.
41
EFFECTIVE LEADERSHIP QUALITIES
1. Honesty
2. Confidence
3. Patience
4. Focus
5. Dedication
6. Consistency
7. Motivate others
8. Effective Communication
9. Multiplicity of Roles
10. Individuality
11. Personal Dignity 42
LEADERSHIP STYLES
• The behaviour exhibited by a leader during
supervision of followers is known as
Leadership style.
• It can be classified into three types :
1. AUTOCRATIC or DICTATORIAL LEADERSHIP
2. PARTNERSHIP or DEMOCRATIC
LEADERSHIP
3. LAISSEZ-FAIRE or FREE REIN LEADERSHIP
43
1. AUTOCRATIC OR DICTATORIAL LEADERSHIP:
 In this type of leadership, the leader takes all decisions by
himself without consulting subordinates.
 Full authority is held by himself alone.
 He loves power and never delegates authority.
 The subordinates have to follow his directions without
any question.
 The leader uses threats and punishments to get work
from the subordinates.
There are three types of autocratic leaders.
(a) Strict Autocrat:
The leader follows autocratic styles in a strict sense. He
follows negative motivation for getting work from
subordinates. 44
(b) Benevolent Autocrat:
This leader also takes decisions himself but his
motivation style is positive.
(c) Incompetent Autocrat:
Sometimes, leader adapts autocratic leadership style
just to hide his inabilities i.e. incompetence. But this
cannot be used for long time.
ADVANTAGES:
1. It facilitates quick decision making.
2. It provides strong motivation and satisfaction to the
leader who dictate terms.
3. Less competent subordinates are needed at lower
levels. 45
LIMITATIONS:
1. Employee morale will be low.
2. Absence of leader will affect the output heavily.
3. Dissatisfaction will develop among employees.

46
2. PARTICIPATIVE OR DEMOCRATIC LEADERSHIP:
 In this type of leadership, the subordinates are consulted
and their feedback is taken into decision making process.
 Decisions are taken after group discussions.
 Therefore the authority is decentralized.
 The participative leader attaches high importance to both
work and people.
 He provides freedom of thinking and expression.
ADVANTAGES:
1. The subordinates are motivated by participation in
decision-making process. This will also increase job
satisfaction.
2. Absence of leader does not affect output.
3. Labour absenteeism and turn-over will be minimum. 47
LIMITATIONS:
1. It is time consuming and may result in delays in decision-
making.
2. If subordinates are lazy and avoid work, then controlling
them is difficult.
3. Some leaders may be uncomfortable with this approach
because they feel that there is reduction of power and
control over labour.

48
3. LAISSEZ-FAIRE OR FREE REIN LEADERSHIP:
 In this type, a complete freedom is given to the
subordinates so that they plan, motivate, control and
otherwise be responsible for their own actions.
 Leader does not take part in decision-making process.
 The authority is completely decentralized.
ADVANTAGES:
1. Positive effect on job satisfaction and morale of
subordinates.
2. It creates an environment of freedom, individuality as
well as the team spirit.
3. Full utilization of the potential of subordinates.
49
LIMITATIONS:
1. Lack of discipline.
2. Lowest productivity.
3. No control and coordination. Hence, tense situation
will be prevailed.

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LEADERSHIP THEORIES

51
LEADERSHIP THEORIES
The various leadership theories are
a) Trait (Quality) Theory:
Assumptions
• People are born with inherited traits.
• Some traits are particularly suited to leadership.
• People who make good leaders have the right (or
sufficient) combination of traits.
Description
 `Early research on leadership was based on the
psychological focus of the day, which was of people
having inherited characteristics or traits.
 Attention was thus put on discovering these traits, often
by studying about traits of successful leaders.
52
McCall and Lombardo (1983) researched both success
and failure, identified four primary traits by which
leaders could succeed or 'derail':
 Emotional stability and composure: Calm, confident and
predictable, particularly when under stress.
 Admitting error: Owning up to mistakes, rather than
putting energy into covering up.
 Good interpersonal skills: Able to communicate and
persuade others without resort to negative or coercive
tactics.
 Intellectual breadth: Able to understand a wide range of
areas, rather than having a narrow (and narrow-minded)
area of expertise. 53
b) Behavioural Theory:
Assumptions
• Leaders can be made, rather than are born.
• Successful leadership is based in definable, learnable
behaviour.
Description
 Behavioural theories of leadership do not seek inborn traits
or capabilities. Rather, they look at what leaders actually
do.
 If success can be defined in terms of describable actions,
then it should be relatively easy for other people to act in
the same way.
 The leader’s effectiveness is judged in terms of individual
subordinate outcome.
 Leadership is shown by a person’s act more than by his
traits. 54
THREE MAIN MODELS OF LEADERSHIP BASED ON THE
BEHAVIOURAL THEORY ARE GIVEN BELOW:
1. THE MICHIGAN STUDIES:
After Studying numerous industrial situations, the
Michigan researchers identified two leadership styles.
(a) Employee Centered:
 A supervisor is considered as employee-centered if he
allows the employee to handle the problem themselves
and provides necessary assistance for the purpose.
(b) Production Centered:
 Supervisor is concerned more with the task than with
the people who performs the task.
 He regards the employees as instruments for getting the
work done than a human beings with needs and
emotions. 55
2. THE OHIO STATE UNIVERSITY STUDIES :
Behavioural approach has been conducted at Ohio State University.
The Researchers of this University identified two leadership
behaviour.
(a) Consideration :
 It refers to the mutual trust, friendship and warmth between
leader and group.
(b) Initiating Structure:
 It involves creating a work environment, so that the work of the
group is organised and co-ordinated in such a way that they know
exactly what is to be done and how it is to be done.
The researchers found that:
consideration and initiating structures were independent and
distinct dimensions.
 A high score on one dimensions does not necessitate a low score
on the other.
Leader behaviour were plotted on two separate axes rather than on
a single continuum. 56
Four quadrants were developed to show consideration and
initiating structures.
HIGH
C High High
O Consideration Consideration
N
S
and Low and High
I Structure Structure
D
E
R Low Structure Low
A and Low Consideration
T consideration and High
I
O
Structure
N
LOW
INITIATING STRUCTURE 57
LOW HIGH
3. THE MANAGERIAL GRID:
 It is developed by Robert Blake and Jane Mouton.
 It is tested science of Management theory employing
systematic principles which can be taught and which may
then be applied in day to day situations.
The Grid has two dimensions:
(a) Concern for People:
 It covers a variety of concerns which can include concern
for the:
 Degree of personal commitment towards goal
achievement
 Maintenance of self esteem of workers
 Placement of responsibility on the basis of trust rather
than obedience
 Provision of good working conditions
 Maintenance of satisfying interpersonal relations. 58
(b) Concern for Production:
 Production may be assessed through
the:
 Number of creative ideas that applied
research turns into useful products
 Procedures or process
 Quality of self services
 Work efficiency
 Volume of output

59
60
Co-ordinates (1,1) is known as “Impoverished Management”.
 The Manager makes maximum effort to get work done.
 It refers minimal standards of performance and minimum
worker dedication.

Co-ordinates (1,9) is called “Country club Management”.

 It indicates personal and meaningful relationships with
people, friendly atmosphere, high morale and loosely
structured work design.

Co-ordinates (9,1) is referred as “Autocratic Task Master”

 It means excellent work design, well established procedures,
minimum worker interface, orderly performance and efficient
operation.
The Leader is mainly concerned with production and has little
concern for people. 61
Co-ordinates ( 5, 5 ) is known as “Middle of the
road”.
 In this, satisfactory performance is achieved by
equating the necessary performance and
reasonable morale.
 Leader has moderate concern for both
production and people.

Co-ordinates ( 9, 9 ) is called as “Team Manager”.

 It refers the ultimate in managerial efficiency,
thoroughly dedicated people, trustworthy,
respectable atmosphere and highly organised task
performance. 62
COMMUNICATION

63
COMMUNICATION
 Communication is the process of passing information
from one person to another person.
 It should always be clear and understood by the
person who receives information.
 A proper understanding of information is very
important.
DEFINITION:
According to Koontz and O'Donnell, "Communication,
is made by words, letters, symbols or messages and is
a way that the organization members shares meaning
64
and understanding with another".
COMMUNICATION FUNCTION IN ORGANIZATIONS:
 Success of any management depends more on their ability to
communicate with labour.
 Communication is nothing but the process of interchanging facts, view
points and ideas between persons placed in different positions by
effective communication.
 Effective communication only will lead the team to work satisfactorily
in the organization.
IMPORTANCE OF COMMUNICATION:
 For ensuring good coordinations, Communication is a must.
 Most of the problem for human occur due to lack or insufficient
communication.
 Communication is the process of initiating, transmitting and receiving
information.
 Among these three stages, if any one lacks, definitely it will lead to
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misunderstanding of concept.
PROCESS OF COMMUNICATION
The five important elements in the process
of communication are:
1. Sender
2. Communication channels
3. Symbols
4. Receiver
5. Noise and feedback in communication

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1) Sender:
 Sender is the person who starts the communication process
for passing information to others.
 The only possibility for sending information is through which
any translating channels in the encoded form.
2) Communicating Channel:
 This is the medium through which the encoded information
is passed from sender to receiver.
 Example: Notice on the notice board, circulars, booklets,
telephone, fax, email, video conference etc.,
3) Symbols:
 Symbols provide the basis for transferring information
symbols which may be in the form of words, sketches,
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diagrams, figures, action and coding etc.,
4. Receiver:
 Receiver is the person who receives finally information and
understands it.
 Before understanding the relevant information, the person
should convert the decoded information correctly.
5. Noise and Feedback:
 Generally, communication is affected by noise at any stage.
 It may be in the sender, the transmission or the receiver
stage.
 If one is affected, the proper communication will not reach
the receiver.
 To ensure effective communication, we have to provide
noiseless environment.

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COMMUNICATION FLOW IN THE ORGANIZATION
1. Downward communication
2. Upward communication
3. Horizontal or lateral communication.

4. Downward communication:
 In this type, the information is sent from the higher level
to the lower level. i.e. from superior to subordinates.
 The communication may be oral or written type.
 Oral communications are instructions, speeches,
meetings, telephone etc.
 Written communications are letters, handbooks,
pamphlets, policy statements etc.,
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 Sometimes, information may loose as it comes down the
chain of command and it consumes more time.
 So, feedback is necessary for this type of communication.
 This communication system is only applicable for
autocratic type of management.

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2. Upward Communication:
 Upward communication flows from subordinates to superior as per
organizational hierarchy.
 The top level management can know about the production
performance, marketing information, financial data and so on.
 This upward communication is mainly applicable for participative
and democratic organization.
 The information may be in the form of suggestion, appeal and
grievances, complaints, counseling, group meeting etc.,

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3. Horizontal or lateral communication:
• The information is passed between the same levels of
organization.
• It helps to better understanding of information and to
coordinate towards the management goal.
• The informations are mutual consultations, discussions
etc.,

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METHODS OF COMMUNICATION
1. Formal Communication
2. Informal Communication

3. Formal Communication:
• Formal communication flows through a proper
channel.
• It refers the way in which the information is sent and it
has a recognized position in organizational structure.
• This type of communication can be done in two
methods.
1. Written Communication
2. Oral Communication 73
2. Informal communication:
• People who know each other in the
organization talk together informally.
• Whenever they meet each other, they
normally talk about the happenings in the
organization.
• Two types of informations are carried out.
1. Work related
2. People related

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BARRIERS TO EFFECTIVE COMMUNICATION
 The message sent by the sender to the receiver which may not
be effectively understood by the receiver in the same sense.
 It is due to several reasons.
 Some problems may arise in its encoding and decoding or
communication channel.
 So, the barriers to effective communication in an organization
may be broadly classified into following groups:
1. Physical barriers
2. Personal or Socio-psychological barriers
3. Organizational barriers
4. Semantic barriers
5. Mechanical barriers
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1. Physical barriers:
• These barriers are environment factors that reduce the
sending and receiving of communication.
• It includes physical distance, distracting noises and
other interferences.
• Difficulty in passing of message mainly increases with
increase in physical distance.
2. Personal or Socio-psychological barriers:
• It arises from motives, attitudes, judgment and
emotions.
• It may be caused due to problems in encoding and
decoding others sentiments, attitudes and motives.
• So, respectability and creditability of messages are
subjected to several mental and social barriers. 76
3. Organisational barriers:
• Usually, information flows based on downward
communication through hierarchical structure
in organization.
• So, there may be chances of information being
filtered.
• The information received from the top to
bottom may not reach in the same sense.
• Sometimes, the information may be coloured
favourably according to their own situations.
• It is done by intermediate person between top
and bottom status. 77
4. Semantic barriers:
• It refers to the relationship of signs to their reference.
• It arises due to limitations of the symbolic system.
• Symbols may reach a person’s brain through any of the senses
such as feeling or hearing.
• Generally, symbols may be classified as :
a. Language
b. Picture
c. Action
a. Language:
• Supervisors spend around 80 % of their time in
communication.
• Understanding of language is a major difficulty among labour.

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b. Picture:
• Pictures are visual aids in communication.
• Example: blue prints, charts, maps, 3D models etc.,
• Sometimes, pictures may create confusion in the mind of
the receiver.
c. Action:
• Action is also known as non-verbal communication.
• It speaks louder than words.
• The people do not listen to what he does.
5. Mechanical barriers:
• It includes inadequate arrangement for transmission of
news, facts and figure, poor office layout, defective
procedure etc.,
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RULES FOR EFFECTIVE COMMUNICATION
1. The information should be clear.
2. The information should be in known language to the
receiver.
3. The sender should use correct communicating
channel. For recording purpose, it should be written
and for fast communication , it should be oral.
4. In written communication, principle of line authority
should be followed.
5. Communication should be sent and reached timely.
6. Communication should be checked through feedback.
7. Informal communication should be sent judiciously.
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COMMUNICATION AND IT.
 Various electronic devices gradually improve communication.
 The electronic equipment includes mainframe computers, mini-
computers, personal computers, laptops , electronic type writers,
mobile phones etc.,
 Telecommunication is just emerging. A number of companies have
already effectively utilized the new technology in a variety of ways.
 A large bank has internet banking to its customers so that they can
easily transfer funds to their suppliers.
 Several banks now make mobile banking services available to
individuals.
 The computerized airline reservation system facilitates making
travel arrangements.
 In teleconferencing a group of people interact with each other by
means of audio and video.
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