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Managing a Business/help for mba assignments


hi sir, pl provide the answers for below questions

1.Write a detailed business report pertaining to the establishment of a factory outside the city limit. Your report should include all vital aspects to arrive at a decision to start or not to start the factory.  
2.Elaborate on the relationship of behaviours with communication.
3.Why do writing and speaking become more important as people rise in the organization? Demonstrate your ideas and a perspective in the corporate context.


1. write a detailed business report pertaining to the establishment of a factory outside the city limit. your report should include all vital aspects to arrive at a decision to start or not to start the factory."

Locational analysis is a dynamic process where entrepreneur analyses and compares the appropriateness or otherwise of alternative sites with the aim of
selecting the best site for a given enterprise. It consists the following:
(a) Demographic Analysis: It involves study of population in the area in terms of total population (in no.), age composition, per capita income, educational level,
occupational structure etc.
(b) Trade Area Analysis: It is an analysis of the geographic area that provides continued clientele to the firm. He would also see the feasibility of accessing the trade area from alternative sites.
(c) Competitive Analysis: It helps to judge the nature, location, size and quality
of competition in a given trade area.
(d) Traffic analysis: To have a rough idea about the number of potential
customers passing by the proposed site during the working hours of the shop, the
traffic analysis aims at judging the alternative sites in terms of pedestrian and
vehicular traffic passing a site.
(e) Site economics: Alternative sites are evaluated in terms of establishment costs
and operational costs under this. Costs of establishment is basically cost incurred
for permanent physical facilities but operational costs are incurred for running
business on day to day basis, they are also called as running costs.
Two sites A and B are evaluated in terms of above mentioned two costs as follows:
Table 1: Comparative Costs of Alternative Locations
Costs Site A (Rs.) -------Site B (Rs.)
Cost of establishments:
Land and Buildings 350000------- 230000
Equipment          60000 --------60000
Transport facilities   20000 --------30000
Cost of operations:
Materials, freight
and carriage          34000 --------24000
Taxes and insurance 10000 ------7500
Labour          100000 -----70000
Water, power and fuel 10000 ----- 8000
Total          584000 -----429500
The above cost statement indicates that site B is preferable to site A keeping in
mind economic considerations only although in some respects site A has lower
costs. By applying the definition of ideal location which is the place of maximum net advantage or which gives lowest unit cost of production and distribution, site
B would be preferred.

The important considerations for selecting a suitable location are given as
a) Natural or climatic conditions.
b) Availability and nearness to the sources of raw material.
c) Transport costs-in obtaining raw material and also distribution or marketing
finished products to the ultimate users.
d) Access to market: small businesses in retail or wholesale or services should be
located within the vicinity of densely populated areas.
e) Availability of Infrastructural facilities such as developed industrial sheds or
sites, link roads, nearness to railway stations, airports or sea ports, availability
of electricity, water, public utilities, civil amenities and means of
communication are important, especially for small scale businesses.
f) Availability of skilled and non-skilled labour and technically qualified and
trained managers.
g) Banking and financial institutions are located nearby.
h) Locations with links: to develop industrial areas or business centers result in
savings and cost reductions in transport overheads, miscellaneous expenses.
i) Strategic considerations of safety and security should be given due importance.
j) Government influences: Both positive and negative incentives to motivate an
entrepreneur to choose a particular location are made available. Positive
includes cheap overhead facilities like electricity, banking transport, tax relief,
subsidies and liberalization. Negative incentives are in form of restrictions for
setting up industries in urban areas for reasons of pollution control and
decentralization of industries.
k) Residence of small business entrepreneurs want to set up nearby their


Land. The  GLASS FACTORY   needs land for buildings and associated uses, and the built space itself. Location, cost, and quality of the space matter to all firms. The  GLASS FACTORY   is  being  offered  an  attractive  term.
Labor. For this  GLASS  FACTORY  , labor is the largest operating cost, and the single most important factor to  the  firm  deciding where to locate is the cost. Also  the quality /  quantity  of   skilled labor  is plenty.
Access to Markets. GLASS  FACTORY    access the  markets by moving people and goods via transportation systems.
- Excellent transportation systems  is  available.
- Physical distance to markets  is  short.
-Telecommunications systems are also important.
Local Infrastructure. This   city has  modern and efficient physical infrastructure, including roads, bridges, airport and cargo facilities, and telecommunications.
The  local  government  maintains and improve the quality and efficiency of public infrastructure.
Materials. GLASS  FACTORY    needs   for their inputs—raw materials and the labor pool.
which  is  available   in   abundance.
Regulation. Permitting procedures and environmental regulations have an impact on the monetary cost of doing business and on the amount of time it takes to brings a product to market.
The  local  governement  offer  convenient  procedures  and  business friendly  regulations.
Taxes. Tax rates for businesses and individuals, as well as unemployment insurance and worker compensation costs, affect the cost of doing business in a given location.
The  local  governement  offer  attractive   tax  concessions on  a  long  term  basis.
Financial Incentives. Governments offer firms financial incentives to encourage growth or other public goals. Incentives are typically tax breaks for firms that locate in a specific area.
Entrepreneurship. Entrepreneurs channel innovative ideas into new firms, and new firms tend to locate where the founder lives. If existing residents have entrepreneurial skills, they are likely to create new businesses.
Quality of Life. All the factors that contribute to an area's quality of life, such as educational quality, crime rate, and the environment, can affect the ability of the business to attract qualified labor. Workers want to live in a stable, pleasant community, and will be attracted to jobs in regions with a high quality of life.


3 .Elaborate on the relationship of behaviours with communication?

The ultimate objective of most communication activities is to change behavior. To achieve an employee behavior change, many communicators work on the principle that they need to change employee attitudes first. However, even if attitudes are changed, habits may be too strong to break and therefore behavior may not change. And if behavior does change, it may take a while to happen.
It is therefore mostly better to focus on attempting to directly change employees’ behavior. This is especially important in communicating to reduce accidents or improve service quality. Communicators can provide information that directly affects behavior, eg about rules; company policies and practices; procedures and systems; rewards, recognition and incentives, etc.
Since people like to be consistent with their attitudes and their behavior, their attitudes are likely to become consistent with their new behavior (or else they will change their job if they don’t believe in what they are now doing). The effectiveness of the communication can be evaluated by measuring behavior before and after the communication effort.
Employee values and organizational culture are considered vital to organizational performance, but are difficult to come to grips with. Instead, it is more effective to change behavior first, and then the desired values and culture are likely to follow.
Changing values
The personal values of employees are widely considered to influence their workplace behavior. Values are the conscious, emotional desires or wants of people that guide their behavior. Most employees’ values are generally consistent with the values of their peers.
However, when it comes to change management, the focus should not be so much about corporate values but about the hard, day-to-day business of changing the behavior of frontline employees.
Communication from senior executives doesn’t give values to employees. Instead, values emerge from the way employees do their work, which is a function of the way they are supervised. It takes thousands of repeated behavioral episodes for a particular value to be firmly established. The absolutely critical issue is not how to communicate a value, but to get the initial behavior change to occur among the frontline employees.
To achieve this, supervisors can be targeted with face-to-face communication about the performance of the local work area, especially how their performance compares with other similar work areas. This is done by winning over the first-line supervisors. It requires constant vigilance to ensure employees are achieving the new behavior and over-riding the pressure from the old value. Employees will return to the old way instantly if the pressure is reduced. This pressure can only be maintained by the person close enough to do it – the first-line supervisor.
Overwhelming corporate experience shows that values are not successfully imposed from the top down. Values are more likely to emerge from the bottom. For instance, attempts to use corporate slogans to emphasize new values imposed from above result in a cynical employee response: employees took ‘Quality in everything we make’ into ‘Quality is everything we fake’. A company’s product quality was so low, its employees mischievously changed their unofficial version of the corporate slogan from “We make it nice” to “We make it nice because we have to make it twice”
The most immediate and pragmatic approach is to start by getting some of that pressure working for management and not against it – by making the new behavior consistent with an already existing employee value. Their strongest values relate to their own local work area. The performance of the new behavior can be consistent with their concern, loyalty and respect for themselves and their co-workers. This can be accomplished by communicating how the performance of the new behavior compares with that achieved by other similar areas.1 At the same time, the same set of values can be advocated and modeled by management. In this way, the values are reinforced and management and supervisors are seen to be aligned with the employees’ values.
Changing the culture
The upper managers of many organizations believe the key to good organizational performance is to have a good organizational culture in place. This is generally accepted, but the relationship is complex. For instance, a US study of the cultures and financial performance of 200 companies over 11 years showed that about half the time, strong cultures were associated with excellent performance – but half the time they were not. What’s more, the study found highly respected companies with strong cultures, but with poor financial performance.2 The study showed that over the long term, corporate cultures associated with strong financial performance do share a recurring theme: they facilitate change.
Organizational culture usually encompasses the values, beliefs and customs of the organization, including the vision shared by employees. The organizational culture largely influences the way most employees consistently behave, ‘the way we do things around here’, including decision-making, how the organization competes, how much risk it tolerates, the emphasis placed on ethics and fairness in its transactions and how people treat or evaluate one another’s actions and contributions to the organization.4
Elements of organizational culture may include:
•   Stated and unstated values.
•   Overt and implicit expectations for employee behavior.
•   Corporate customs and rituals.
•   Stories and myths about the people and history of the organization.
•   Climate – the feelings evoked by the way employees interact with each other, with outsiders and with their workplace environment.
•   Metaphors and symbols – may be unconscious, but can be found in the other elements of culture.
It is generally accepted that culture influences behavior, which in turn affects organizational performance, and in a circular way, culture is in turn affected by behavior and performance. Organizations place great importance on culture because of its perceived impact on performance. An example of the importance of culture is the way that culture clashes are a leading cause of merger failures. Poor culture fit is considered the main cause of most large-scale merger disasters, resulting in billions of dollars worth of lost shareholder value.
Since culture change is difficult to implement; it is best to change behavior first because that is easier, and then culture change will follow. The way to change to the desired behaviors is to change the people, incentives, performance management and organizational structure.
When employee positions are changed, or when new employees are recruited, they influence culture changes in response to the input of their fresh ideas and new attributes. Changing incentives through recognition and reward programs goes a long way to change culture to the desired new directions. Likewise, performance management activities, such as managing by objectives, help to shape the new, desired behaviors and outcomes, reinforcing their importance and creating new norms and values about the appropriate ways to act and compete. Changes in organizational structure also can affect behavior and lead to cultural change. Flatter organizational structures, for example, usually lead to larger spans of control in which most employees, especially managers and supervisors, must exercise more autonomy and discretionary decision-making than before. The need for autonomy then becomes a core cultural value.5

There are three broad levels of change.
At the most basic level, organizations can achieve new outcomes without changing the way people work. For example, the organization may divest non-core assets to focus on the core business.
At the next level of complexity, employees may need to adjust their practices or to adopt new ones in line with their existing mind-sets in order to reach, say, a new profitability target.
Thirdly: if the only way an organization can reach its higher performance goals is to change the way its people behave across the board, it has to achieve cultural change as well. Employees will only alter their mind-sets if they see the point of the change and agree with it – at least enough to give it a try. However, management needs to make the effort to change attitudes at the same time as changing behavior so that employees can see the reasons for the changed behavior and agree with those reasons – or at least give them a try. If people’s actions are inconsistent with their beliefs, they suffer from cognitive dissonance, a psychological term meaning they are uncomfortable about the inconsistency, and are likely to solve this problem by changing either their attitudes or their behavior. If the employer expects changed behavior, it is likely that changes in attitude will fall into line with the employees’ desire to align their attitude with the new behavior.
Reinforcement of the new behaviors is essential. The surrounding mechanisms (e.g. reward and recognition systems and performance measurement) must be in tune with the new behavior. If an organization’s directives for new behavior aren’t reinforced, employees are less likely to adopt the new behavior. For instance, if managers are expected to spend more time on coaching junior staff, but such coaching isn’t included in their performance evaluation, they won’t bother.
Senior managers tend to forget that employees must acquire the new skills. Many change programs make the mistake of expecting employees to behave differently without teaching them how to do it properly. For instance, the organization may want them to improve customer service, but if little consideration had been paid to customers in the past, the employees may not know what to do differently and probably wouldn’t understand what a successful outcome would look like. Likewise, if they are expected to communicate better in the workplace, they would most likely need training to improve their interpersonal communication.
How can employees best be equipped with the skills they need to change their behavior? First, they need time. People can’t learn merely by listening to instructions – they must absorb the new information, practice it and integrate it with their existing knowledge. In practice, this means their learning sessions should be spread over time, not jammed into one session. It is best to break down the formal teaching into chunks, with time in between for learners to reflect, experiment and apply the new principles. Large-scale change happens only in steps and through repetition. PR practitioners could help in preparing the new information material.
Second, people assimilate information much more thoroughly if they are obliged to describe to others how they will apply what they have learned. This obliges them get their mind around the practical details of the new information.
Above all, employees must see the people they respect modeling the new behaviors actively. Consistent role models are the most powerful way to change behavior. Obviously, senior managers, especially the CEO, are the most important for this, but there are role models at every level who must also ‘walk the talk’ because their example is a powerful influence on their peers. Employee behavior is deeply affected not only by individual role models but also by the employees’ peer groups – and therefore change must be meaningful to key groups at every level.6
Where does communication come into this cycle? Organizational communication can directly help to change operational behavior. But firstly, the most effective move is for affected managers and staff to be actively involved in the planning and execution of the changes. Employees are much more likely to support change if they have gained some ownership of it in the planning stages.
The benefits and the urgency of change need to be communicated. One way to provide some reassurance to employees who are nervous about change is to inform affected people of the aspects of their work that will be preserved. Preserving the good and familiar during times of change can reduce resistance to the new. It is also important to look for the positives among the negative aspects of change. For instance, certain jobs might be eliminated or changed (a ‘negative’), but the displaced employees may be guaranteed to be the first to be trained for the new jobs.
Obviously, sound communication and information-sharing are vital to reducing resistance to culture change. Without a purposeful communication plan aimed at those directly affected by the changes, an organization is asking for trouble. Rumors will consume valuable time and detract from ongoing, everyday performance. Misinformation will increase uncertainty and anxiety, further affecting performance negatively.
The provision of widespread training and practice opportunities to help managers and supervisors to improve their interpersonal communication should be integral to organizational change. It will be instrumental in helping concerned employees feel the organization has empathy towards them and is supporting them.
Leadership is central to the process of reducing resistance to culture change. Leaders are vital to changing and managing key people, incentives and the organizational structure. Probably most important of all is leading by example, which sends powerful messages to employees. Leader behavior is intensely symbolic. It tells people what is important, and therefore public relations practitioners should be prepared to guide and advise their leaders on the example to set, and probably more aptly, the behavior they should eliminate.
One valuable insight to remember is that organizations tend to make more changes than necessary in order to achieve the desired results, without focusing on the changes that really matter. This makes the change effort more difficult. Leaders seem to think that under-performing organizations are doing everything badly. Rather than doing everything well, high-performing organizations do the important things, or enough of the important things, well. Underperforming organizations often do many important things fairly well, but not with enough intensity. Doing something 60% of the way is often enough; doing something 40% of the way is often no better than doing nothing at all. The extra 20% makes all the difference. Fortunately, you can do a lot of things wrong as long as you do the important things right and drive hard enough on these to make the difference. Seek the fewest changes for the greatest result. 7 There is a lesson here for communicators – it is better to communicate about the few things that really matter, rather than spread the themes and focal points too widely.

3.why do writing and speaking become møre important as people rise in the organisation? demonstrate your ideas and a perspective in the corporate context.
communication is the lifeblood of any business organization
communication is the act of transmitting information, thought, opinion or understanding of speech, signs or any viable acts from a source to a receiver with a feed back.
Life-blood is defined as the thing that keeps strong and healthy and is necessary for successful development. In other words, life-blood is considered as a vital to sustain life or a life giving force. From the above definitions, it can be deduced that communication is very important to the successful development of any Business Organization. It is an inevitable asset that organizations cannot do without.
Communication is important to business since work in business involves communication – a lot of it – because communication is a major and essential part of the work of business. By improving communication ability, you improve your chances for success. The communication short comings of employees and employers generally affect the productivity of an organization. The unavoidable importance of communication in business explains why the management of each organization should work to improve the company’s communication skills. Whatever position you have in business, your performance will be judged largely by your ability to communicate. If you perform and communicate well, you are sure of getting rewarded with much productivity. And the higher you advance, the more you will need your communication ability.
All organized effort, including the work of business, requires communication because communication enables human beings to work together. Lack of proper communication suggests a poor human relation in a working environment. Managers direct and coordinate through communication. Likewise, a well organized work force that maximizes productivity understands and utilizes effective communication.
Peter Drucker, a management consultant explained, the one basic skill is the ability to organize and express ideas in writing and speaking. As soon as you move one step from the bottom, your effectiveness depends on your ability to reach others through the spoken or the written word which is a form of communication. This ability to express oneself is perhaps the most important of all the skills a person can possess.
For every business to grow, management needs to build up a proper communication skill between herself and the work force and the work force needs to establish a good relationship among each other. Indeed communication is the life-blood of every organization and institution that seeks increase in productivity. A lot of investment needs to go into building up effective communication for it pays.

Therefore, the ability to communicate effectively both orally and in writing is an asset for the communicator. Through successful correspondence, he leads his business to success. The letters, reports, memos etc. He writes to the people demonstrate his ability or lack of it. A successful communicator is able to run the affairs of a business house. He can plan well and control the working of his organization. He has the skill to transfer his policies, decisions  objectives and job instructions to the persons working with him at all levels. So this skill is quite essential for a businessman to perform his managerial functions.
Success of any business lies in effective communication. The more effective the communication is, the better the results are. Communication is effective when it produces desired action in the reader or audience. Effective communication is essential for the survival and progress of a business concern. The ability to communicate effectively is an essential quality of a businessman. A person may be intelligent but he may not be able to get his message across to others. Ideas are generally common but the ability to convey then to others is rare. A successful communicator exercises a good effect on the minds of his readers, employees, supervisors, customers, suppliers, investors and business associates. They form a good impression of the company and the communicator. He builds the goodwill of the company he represents .Goodwill of a person or company attracts customers and wins friends. Therefore, the ability to communicate effectively both orally and in writing is an asset for the communicator. Through successful correspondence, he leads his business to success. The letters, reports, memos etc. He writes to the people demonstrate his ability or lack of it. A successful communicator is able to run the affairs of a business house. He can plan well and control the working of his organization. Hehas the skill to transfer his policies, decisions, objectives and job instructions to the persons working with him at all levels. So this skill isquite essential for a businessman to perform his managerial functions.

There is a need to make sure that every business deal is attended to promptly. Business communication encompasses not only communicating with external contacts but also with employees within the organization. This will aid the business in being well-organized and every matter whether it is a problem, an inquiry or a sales letter will be attended to properly and promptly.It does not mean that only a client’s inquiry should be responded promptly but also feedbacks or problems arising inside and outside the business as well. This is done to have a balance within the internal and external factors, especially in relation to dealing with people, whether they are employees or other external contacts.
Types of Business Communication
It is very important to know the type of business communication used in order to know the specific etiquettes and standards to use in as pecific situation. Here are some of the communications used in business.
Electronic Communication
comprises different modes of communication out from the traditional way. It includes e-mail, fax, teleconferencing and voicemail. This is used for external contacts and for people within the business organization.
Employment Communication
is a mode of communication used for employees but specifically for accepting applicants for a job.It includes application letter, follow-up communications, interview and resumes.

Nonverbal Communication
is a mode of communication that usesbody language and other means of communicating without the use of uttering words. It includes body language, expression, gestures,professional appearance, time or space.

Verbal Communication
is a mode of communication that uses theuttering of words in communicating to external contacts andemployees. It includes feedback, instructions,presentations, and telephone.

Written Communication
is a mode of communication that requireswriting in order to communicate. It includes letters, memos, proposalsand reports.

Organizational communicationbarriers

There are six crunching barriers to organizational communication:

Poor structure to the communication

A weak delivery

The use of the wrong medium to deliver the communication

A mixed message

The message is delivered to the wrong audience

A distracting environmentLet's consider each of these barriers to business communication in turn...

Poor structure to the communication
As mentioned inEssentials of Business Communication, the structure of a communication is anessential factor in how well a business communication is received by an audience.It doesn't matter whether that audience is an audience of one or one million, good structure isessential if a communication is to be 'heard' amongst the advertising and marketing 'noise' of today'sbusiness environment.

So a poor structure to your message or delivery is therefore a major barrier to effectivecommunication.
Weak delivery
It doesn't matter how important or impressive the subject of your communication is, if you deliver itwithout any 'punch' you will not get as many people to take your desired action as you would like.A weak delivery is like the very funny joke with the badly-told punchline --- it is not as funny or asmemorable as you remember the original to be.My mother is a shocker when it comes to jokes. I remember one evening she was telling me a jokeand, having successfully gotten all the way through the lead up, couldn't remember the punchline. Shefumbled and stumbled her way, but couldn't get me to laugh. I couldn't see what the joke was. So sherang the friend who told her the joke and got HER to tell me the punchline. What wasincomprehensible and unfunny suddenly became extremely funny.It's all in the delivery.It is important to not get confused between delivery and presenter. I know of one Englishbusinessman, Richard Branson, who is a shy and reticent public speaker. Yet I have seen audienceshang on his every word.
The use of the wrong medium
You have to announce a temporary hold on non-essential stationery spending in your department. Howdo you communicate this?Believe it or not, I know of one company who were seriously considering holding a major publicmeeting about this, with the department head having to get up in front of the entire department in thestaff restaurant and explain why her staff couldn't order disposable fountain pens for a while.I know of one group that were thinking of rolling out a small internal initiative via an expensive multi-media cd-rom, one to be given to each member of staff.In the first case a simple memo would have sufficed; in the second a simple announcement on theirintranet would equally have gotten the message across.
A mixed message
It is very hard for an audience -- whether an audience of 1 or 1 million -- to understand yourcommunication if you unnecessarily obfuscate.What?If you deliberately, or otherwise, confuse them. A HUGE barrier to business communication is theability of 'business-speak' to confuse and alienate its audience.It does this in two ways:1. By using terms and phrases that are 'jargon', the meaning of which are possibly recognised butprobably not fully understood2. By trying to 'save time/paper' by rolling several different communication messages into one.
The wrong audience
A distracting environment
There's nothing worse than trying to communicate your message to a group of people who cannot'hear' you.Whether their inability to 'hear' you is because of:

your voice not being strong enough

too many others talking in the room at the same time

police and ambulance sirens outside the venue

too many phone calls coming in to their office while they're trying to read your memo

interruptions while they try to read your report

incoming emails keep popping up while they are reading your web-based communication

their minds are full of other pressing matters

they are supposed to be somewhere else at that moment

their mobile phone keeps ringing, or vibrating if they've set it to 'silent' instead of switching itoff

their internet connection is slow

their internet connection keeps dropping out

there are too many interesting people to look at while they are on the bus trying, in vain, to concentrate on your report (which is what is happening to me as I sit here on a bus trying towrite this -- there is a 'domestic' happening between a married couple and it makes for fascinating, if voyueristic, watching!)

the room's airconditioning is not working and the room is hot and stuffy

the room's heating is not working and the room is cold and clammy

Why Business Communication is called, “Life blood” of an

A business Organization is a group of people associated to earn profit. Various kinds of
activities have to be performed by the people of an organization so as to earn profit. These activities
need an effective and systematic communication. Without efficient communication, one can not even
imagine to do work and hence will be unable to earn profit. Since the aim of business organization is to
earn profit, the organization will die without profit and this death is a result of the absence of
communication. This is why communication is called life blood of a business organization. We can
prove this statement in the following manner.
Different employees and officials in an organization need to communicate to each other.
This internal communication with its importance is shown in the following way:
1. Setting goals and Objectives:-
Mostly, the organizations have a variety of formal and informal objectives to accomplish.
These objectives may be financial results, product quality, market dominance, employees satisfaction,
or service to customers. So the communication enables all the persons in an organization to work
towards a common purpose.
2. Making and Implementing decision:-
In order to achieve the objective, people in a business organization collect facts and
evaluate alternatives, and they do so by reading, asking questions, talking or by plain thinking. These
thoughts are put into a written form. Once a decision has been made, it has to be implemented which
requires communication.

3. Appraisal:-
Having implemented the decision, management needs to determine whether the desired
outcome is being achieved. Statistics on such factors as cost, sales, market share, productivity and
inventory levels are compiled. This is done through computers, manual papers, memos or reports.
4. Manufacturing the products:-
Getting an idea for a new product out of someone’s head, pushing it through the production
process and finally getting the product also require communication. Designing the plan regarding
product, introducing the workers, purchasing raw material, marketing and distributing the product all
require effective communication.
5. Interaction between employer & employee:-
Employees are informed about policies and decisions of employers through circulars,
reports, notices etc. Employers also get in touch with employees through application, complaint etc.
So, communication plays a vital role in the interaction of employer and employee.
1. Hiring the employees:-
If a company wants to hire some one, it advertises the vacancy, receives applications, calls
the candidates, takes the interview and then offers job to the successful candidates. The whole process
requires communication.
2. Dealing with customers:-
Sales letters and brochures, advertisements, personal sales calls, and formal proposals are
all used to stimulate the customer’s interest. Communication also plays a part in such customer related
functions as credit checking, billing, and handling complaints and questions.
3. Negotiating with suppliers and financiers:-
To obtain necessary supplies and services, companies develop written specification that
outlines their requirement. Similarly, to arrange finance, they negotiate with lenders and fill out loan
4. Informing the investors:-
Balance sheet, income statement, and ratio analysis are used to inform the investors
regarding performance of business.
5. Interacting with Govt.:-
Government agencies make certain rules to regulate the economy. These rules are
communicated to organizations through various papers. These organizations try to fulfill, these
requirement like filling taxation form and other documents.

importance of communication
for an individual and for an organization?
“Communication is the process by which information is transmitted between
individuals and organization, so that an understanding response results”.
“Communication is the process which involves transmission and accurate replication of
ideas, ensured by feedback for the purpose of eliciting action which will accomplish organizational
(1) Helps in getting a desired job:-
Getting a desired job is not an easy task. It requires a person to be excellent, especially in
terms of communication abilities. Communication abilities can be classified into five categories that is
reading, writing, speaking, listening and observing. If a candidate is a good reader of not only text
books and reference books but also of newspapers and magazines, this would help him developing

confidence level at the time of interview. Writing skills are necessary for preparing an appropriate Bio-
data and covering letter, so that a better initial impression could be created. No doubt, conversational
skill right at the time of interview is equally countable towards success of the candidate. Listening
abilities on the other could prove to be fruitful especially when the interviewer is making a comment
or asking a question. In short we can say that the presence of above mentioned five communication
skills could give a better chance of being selected during an interview.
(2) Help in maintaining social relationships:-
We as human beings live in a cobweb of relationships rather social relationship. These
social relations compel us to act simultaneously in the capacity of father, child, husband, uncle,
neighbour, cousin, teacher, nephew and so on. All these relationships especially near one’s could be
maintained properly if we can communicate well to all these relations, that we are here to take care of
them and our services are always there to help them in case of any needs.
(3) Helps in getting on the job promotion:-
Perhaps finding a job would not be a big deal in case of if the candidate is well connected
and belongs to a well off family. But promotion on the job requires some extra skills on the part of the
candidate. Amongst those skills, communication abilities rank on the top. If a person can speak well
during interactive and presentation sessions, can reports properly, he will automatically be in the eyes
of the management and whenever a chance for promotion comes, he will be on the top of the list.
(4) Helps in solving other’s problems:-
It is commonly observed that around us there are so many people whom we like to meet,
their company is a source of enrichment for us. When we are with them we feel secured. The only
reason for such types of feelings is that such type of people are not only good listeners but they also
know it well that whenever they would speak, it would only be for the sake of encouraging, not
discouraging others, only for solving other’s problems and not for creating problems for others. Such
people are no doubt excellent communicators.
Differentiate between formal and informal language;
Formal language:
Informal Language:
(1) It is the language spoken in office,
business and other formal places.
(2) Proper and standard words are used.
(3) It consists of specific purpose words
like manager, supervisor, owner,
employer etc.
(4) It is used comparatively less than
informal language.
(5) It is used when the speaker is relaxed.
(1) It is the language spoken at home or
with friends.
(2) Improper words and slangs are used.
(3) It has all purpose words like “boss”
that stands for various personalities.
(4) It is used in daily life.
(5) It is used when speaker is in a hurry/

Communication simply means exchange of ideas & information between two persons. A
person sends a message to another person and gets the response from the receiver on the message. This
whole phenomenon can be explained as under.
1. Sender’s thoughts:-
The very first step in the process of communication is generation of thought in the sender’s
mind. These thoughts may be about a request, order, inquiry production or any other such activity.
2. Encoding / Message:-
The thought generated in the mind of sender is ambiguous and unable to be communicated
unless it is put into a receivable form. This step is known as encoding where the sender converts his
thought into a message by means of a language. For example, a sender thinks about having a job. Now,
he will put his thought on a paper. That is called job application. In his way, his thought becomes a
3. Transmission through media:-
Once a thought is converted into message, it should be transmitted to the receiver through a
suitable medium. This media might be electronic media as T.V., E-mail, radio etc. or it may be print
media like newspaper, magazines, letters or merely sound that is transmitted through the medium of
4. Noise and Barriers:-
While transmitting the information to the receiver, the sender faces lots of barriers. These
noise and barriers are explained as under:
On sender’s side:- Noise and barriers may take place during the process of encoding.
Some of them may be caused by distraction, lack of concentration, typing mistake, poor
language etc.
In the medium:- Some barriers are caused by medium such as poor transmission on
T.V. and radio misprinting in newspapers etc.
(iii) On receiver’s side:- The receiver can also create certain barriers to the receiving of
message such as poor reading ability, emotions, lack of concentration etc.
5. Decoding by Receiver:-
Having received the message form the sender, the receiver attempts to understand and
interpret the message. This process of converting the language of message into thoughts is known as
decoding. For instance, the receiver, having received job application, reads the application and
understands the message conveyed by the applicant.
6. Idea Received:-
As soon as the process of decoding is finished, the idea given by the sender is received by
the receiver. It means the thought that was generated in the mind of sender has been transmitted to the
mind of receiver. In our example, the sender wanted to inform the receiver about his thought of having
a job. Now the sender has got this idea.
7. Feed back:-
Process of communication is incomplete until the receiver responds to the sender. This
response may be negative, positive, or for further enquiry. It means when the receiver of job
application welcomes or regrets the sender, the process of communication is deemed to be complete.
This whole process can be depicted through the following diagram.
through media
Noise & Barriers
Feed Bac


Managing a Business

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Leo Lingham


In Managing a business, I can cover all aspects of running a business--business planning, business development, business auditing, business communication, operation management, human resources management , training, etc.


18 years of working management experience covering such areas
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marketing, management services, personnel administration.


24 years of management consulting which includes business planning, strategic planning, marketing, product management, training, business coaching etc.




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