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The achievement of organisational objectives largely depends on the fact that human efforts are properly co-ordinated and integrated. The individuals in an organization perform different activities, all these are interrelated. The working and maintaining of these relationships are possible through communication. Communication, then, becomes a necessary element in human relationships by providing the foundation for human interaction. Although communication is regarded as a part of directing function of management, all other managerial functions are possible only through effective communication.

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The term 'communication' has been derived from the Latin word 'communis' which means 'common'. Communication may be defined as an exchange of facts, ideas, opinions or emotions to create mutual understanding. It means exchange of messages between two or more persons. This message may be in form of ideas, facts, opinions, instructions, information, understandings, gestures or anything that convey a meaning. Communication is generally understood as spoken or written words.

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Communications is a continuous process which mainly involves three elements viz. sender, message, and receiver. The elements involved in the communication process are explained below in detail:
1. Sender
The sender or the communicator generates the message and conveys it to the receiver. He is the source and the one who starts the communication
2. Message
It is the idea, information, view, fact, feeling, etc. that is generated by the sender and is then intended to be communicated further.
3. Encoding
The message generated by the sender is encoded symbolically such as in the form of words, pictures, gestures, etc. before it is being conveyed.
4. Media or channel
It is the manner in which the encoded message is transmitted. The message may be transmitted orally or in writing. The medium of communication includes telephone, internet, post, fax, e-mail, etc. The choice of medium is decided by the sender.
5. Receiver
Receiver is the person or group who is supposed to receive the message. He may be a listener, a reader or an observer.
6. Decoding
Receiver converts the symbol received from the sender to give him meaning of the message. The receiver interprets the message to drive it’s meaning.
7. Feedback
Once the receiver confirms to the sender that he has received the message and understood it, the process of communication is complete.
8. Noise
It refers to any obstruction that is caused by the sender, message or receiver during the process of communication. For example, bad telephone connection, faulty encoding, faulty decoding, inattentive receiver, poor understanding of message due to prejudice or inappropriate gestures, etc.

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1. The Basis of Co-ordination.

The manager explains to the employees the organizational goals, modes of their achievement and also the interpersonal relationships amongst them. This provides coordination between various employees and also departments. Thus, communications act as a basis for coordination in the organization.

2. Fluent Working.

A manager coordinates the human and physical elements of an organization to run it smoothly and efficiently. This coordination is not possible without proper communication.

3. The Basis of Decision Making.

Proper communication provides information to the manager that is useful for decision making. No decisions could be taken in the absence of information. Thus, communication is the basis for taking the right decisions.

4. Increases Managerial Efficiency.

The manager conveys the targets and issues instructions and allocates jobs to the subordinates. All of these aspects involve communication. Thus, communication is essential for the quick and effective performance of the managers and the entire organization.

5. Increases Cooperation and Organizational Peace.

The two-way communication process promotes co-operation and mutual understanding amongst the workers and also between them and the management. This leads to less friction and thus leads to industrial peace in the factory and efficient operations.

6. Boosts Morale of the Employees.

Good communication helps the workers to adjust to the physical and social aspect of work. It also improves good human relations in the industry. An efficient system of communication enables the management to motivate, influence and satisfy the subordinates which in turn boosts their morale and keeps them motivated.

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Formal communications are the one which flows through the official channels designed in the organizational chart. It may take place between a superior and a subordinate, a subordinate and a superior or among the same cadre employees or managers. These communications can be oral or in writing and are generally recorded and filed in the office.

According to the direction of flow, formal communication can be divided into Downward communication, Upward communication, Horizontal communication and diagonal communication.

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Downward communication refers to flow of communication from a higher level to a lower level. Communication from superiors to subordinates at different levels in the organisation is known as downward communication. There are many ways in which a manager can communicate with his subordinates. Notices, circulars, Memos, Reports, Meeting, etc. are the main media of downward communication.

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Upward communication refers to flow of communication from a lower level to a higher level in the organisation. Communication from subordinates to the superiors at different levels in the organisation is known as upward communication. Upward communication can be regarded as a systematic process which encourages the employees to share their feelings and ideas with management. It is also known as lateral communication.

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The flow of communication between persons holding position at the same level of the organisation is known as horizontal communication . For example, a production manager may contact the finance manager to discuss the delivery of raw material or its purchase. Usually, it becomes necessary to co-ordinate different activities or to resolve interrelated problems of two or more departments.

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It means communication between people in the different departments, one holding a higher position than the other. Diagonal communication is the least used channel of communication. It generally takes place when a member cannot communicate effectively through other channels. Such communication helps to save time and to speed up action . But it may violate the principle of unity of command. If a sales executive request the production manager to improve the quality of the product, then, it forms diagonal communication.

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• Single chain: In this type of network communications flows from every superior to his subordinate through a single chain.

• Wheel: In this network, all subordinates under one superior communicate through him only. They are not allowed to talk among themselves.

• Circular: In this type of network, the communication moves in a circle. Each person is able to communicate with his adjoining two persons only.

• Free flow: In this network, each person can communicate with any other person freely. There is no restriction.

• Inverted V: In this type of network, a subordinate is allowed to communicate with his immediate superior as well as his superior’s superior also. However, in the latter case, only ordained communication takes place.

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Communication between individuals and groups which are not officially created and recognised is known as informal communication. It consists of exchange of ideas, opinions, information among members of the organisation. Thus, Communication  results from the social interaction among members. The need for this type of communication arises to help people to satisfy their social needs which is not always possible through formal communication. The flow of informal communication cuts across the official lines of communication.
Social interactions may take place between persons holding different positions in different departments. Social groups are thus formed and become the basis of informal organisations.

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The network of informal communication is known as 'grapevine'. It is so called because the origin and the direction of flow of communication cannot be easily traced out. Further, grapevine is structure less  and it grows towards all direction. Grapevine cut across formal channel of communication. Information passes through grapevine does not follow an orderly path.

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• Single strand:  In this network, each person communicates with the other in a sequence.

• Gossip network: In this type of network, each person communicates with all other persons on a non-selective basis.

• Probability network: In this network, the individual communicates randomly with other individuals.

• Cluster Network:  In this network, the individual communicates with only those people whom he trusts. Out of these four types of networks, the Cluster network is the most popular in organizations.

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The communication barriers may prevent communication or carry incorrect meaning due to which misunderstandings may be created. Therefore, it is essential for a manager to identify such barriers and take appropriate measures to overcome them. The barriers to communication in organizations can be broadly grouped as follows:

1. Semantic Barriers
These are concerned with the problems and obstructions in the process of encoding and decoding of a message into words or impressions. Normally, such barriers result due to use of wrong words, faulty translations, different interpretations, etc.
For example, a manager has to communicate with workers who have no knowledge of the English language and on the other side, he is not well conversant with the Hindi language. Here, language is a barrier to communication as the manager may not be able to communicate properly with the workers.

2. Psychological Barriers
Emotional or psychological factors also act as barriers to communication. The state of mind of both sender and receiver of communication reflects in effective communication. A worried person cannot communicate properly and an angry recipient cannot understand the message properly.
Thus, at the time of communication, both the sender and the receiver need to be psychologically sound. Also, they should trust each other. If they do not believe each other, they cannot understand each other’s message in its original sense.

3. Organizational Barriers
The factors related to organizational structure, rules and regulations authority relationships, etc. may sometimes act as barriers to effective communication. In an organization with a highly centralized pattern, people may not be encouraged to have free communication. Also, rigid rules and regulations and cumbersome procedures may also become a hurdle to communication.

4. Inattention Barriers
When the receiver does not pay complete attention to the message, communication becomes ineffective. A person may be inattentive, when he considers message as superficial or uninteresting. He may be pre-occupied with other matters or the message may be contrary to his expectations. Extreme emotions like depression, jubilation etc may also cause lack of attention. For overcoming this barrier, the message should be expressed with actions and very interesting way.

5. Status Barriers
The placing of people in superior subordinate capacity also blocks the flow of communication , more particularly in the upward direction. Persons of lower status do not feel free to talk to superiors. They pass on only what superior would like to hear and hold back unpleasant facts. When a subordinate does not trust his superior, communication becomes less effective. By modifying the attitude and behaviour of superiors and subordinates, this barrier can be avoided to a certain extent.

6. Channel Barriers
Physical or mechanical barriers may also cause distortion in communication. Many people talking simultaneously, inaudible telephone lines, electronic disturbances, wrong transcription in telex messages, noise etc are examples of channel Barriers. Proper selection of channel depends upon the nature and type of information to be communication, reduces this barrier.

7. Overload Barriers
Managers are flooded with information from various sources. They may not always be able to regulate the flow of communication. The effectiveness of communication is reduced when managers allow themselves to be free with information. They may ignore or misinterpret some of the messages. Delegation of authority helps the management to overcome this barrier.

8. Motivational Barriers
Lack of motivation to communicate also refrains subordinate to communicate upwards. The reward and punishment system of the organisation is more responsible for this. Thus ,if a novel suggestion by a subordinate does not evoke any attention from the organisation, he would not convey it. Providing proper motivational techniques – monetary and non- monetary – is essential for overcoming this barrier.