Business Communication & Control: A Comprehensive Guide
Business Communication
Types of Communication
Depending on the Direction:
- Vertical Communication: Follows the company’s hierarchy. Information flows both downwards (from superiors to subordinates) and upwards (from subordinates to superiors). For example, a superior giving an order and a worker responding.
- Horizontal Communication: Occurs between individuals at the same hierarchical level. For example, communication between two directors.
- Cross-Communication (Diagonal): Takes place between individuals at different hierarchical levels and in different departments. For example, communication between a CFO and a factory worker.
Channels of Communication
Channels are the mediums through which information is transmitted. Examples include:
- Meetings
- Suggestion boxes
- Quality circles
- Regular interviews
- Circulars
- Emails
- Social events
- Internal communications
- Internal publications
- Bulletin boards
Some channels, like quality circles and suggestion boxes, encourage employee participation and feedback.
Communication Networks
Communication networks describe how participants interact in the communication process. They can be centralized (revolving around a single person) or decentralized (participants interact freely).
- Chain Networks: Ideal for vertical communication, information flows along the hierarchy.
- “Y” Networks: Similar to chain networks, but one level of the hierarchy is expanded, allowing information to flow in both directions.
- Star Networks: Centralized, with one person in the central position and others arranged around them.
- Circle Networks: Information is passed from one person to another until it returns to the starting point. Interaction is limited as each person only has direct contact with two others.
- Total (Multi-Connection) Networks: Decentralized, participants can communicate with everyone else. This is the most advanced but complex to implement.
Barriers to Communication
Several barriers can hinder the communication process:
- Cultural Barriers: Employees may not fully understand or embrace the organizational culture, affecting their participation in communication.
- Bureaucratic Barriers: Excessive paperwork can slow down information flow.
- Information Overload: Too much information can overwhelm individuals, making it difficult to identify important details and concentrate.
- Personal Barriers: Individual habits and characteristics can influence how information is sent and interpreted. This includes factors like mood, willingness to provide honest feedback, and the tendency to tell superiors what they want to hear.
Concept and Process of Control
Control ensures that activities align with planned objectives, both general and specific.
Stages of Control
- Establish Standards: Define measures considered normal or acceptable.
- Measure Activities: Compare actual performance against established standards.
- Correct Deviations: Analyze and address any discrepancies between planned and actual performance. This involves determining the root causes of deviations, which could be due to improper plan implementation or unrealistic goals.
Control Techniques
- Audit: Evaluates planning in relation to accounts, resource profitability, and overall management. Provides recommendations for improvement. Can be internal (conducted within the company) or external (conducted by an outside party).
- Budgetary Control: Monitors performance against the budget to ensure financial goals are met.
- Statistical Analysis: Uses historical data to analyze problems, draw conclusions, and make predictions.