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KABARAK UNIVERSITY
BUSINESS COMMUNICATION (BMGT 221)
COMMUNICATION AS A MANAGEMENT TOOL
The aim of all organizations is to develop its capabilities and grow bigger
...
Messages and
information should get to the right people at appropriate times to avoid conflict between
individuals and objectives/goals
...

Senior and Fleming (2007) define organization structure as formal patterns of interactions and
coordination designed by management to link the tasks of individuals and groups in achieving
goals
...
The human aspect of communication in the organization is fulfilled
when objectives of the firm are achieved through the various communication channels in
existence and good relations are made with all the stakeholders of the firm
...
Effective communication is vital for the coordinated functioning of any
organizations
...


Internal communication involves networks within the organization, between different levels
or hierarchy, departments, branches or individuals
...

Telecommunications – telephones, intercoms, private lines, fax, computers, email, etc
...
External communication purposes
vary from public relations and image-building to governmental, educational, environmental,
etc
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Page 1 of 12

Levels of Business Communication: There are four levels of communication in
organizations:

1
...
interpersonal (communication to a superior or subordinate)
3
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many to one (a committee making a presentation to company president, etc
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These include: vertical, horizontal and grapevine
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Formal communication networks is created by management and
described with the help of MBO- management by objectives
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Vertical Communication
This is communication taking place between people of different levels of seniority hence
follows the chain of command
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a) Upward Communication
This is where information flows from employees at lower level to executives i
...
from
subordinates to superiors
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Decisions are made based
on what is on the ground i
...
facts and observation
...

Objectives of upward communication
i
...

iii
...

v
...

vii
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To help in policy making by knowing employee reactions and ideas towards
organizational practices and policies
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To help in formulating constructive teams by learning of employee reactions and
ideas about other people’s behaviour and problems
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This increases productivity
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To improve problem-solving abilities of employees as they get to learn once they
ask for assistance from supervisors
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ii
...

iv
...


Those at the lower levels of the organization clearly have a lesser rank and status
than those at higher levels
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The result is that there is no real
representation of what is happening at lower levels
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The reluctance of those in lower positions to criticize those in higher positions inhibits
the error- correcting function of normal social interaction
...

Autocratic organizations do not emphasize on upward communication thus fail to
incorporate subordinate ideas in decision making
...
It conveys executive decisions and
provides information that helps employees do their jobs
...
Downward communication may take the form of:
memos, letters, notices, newsletters, company handbooks, training & induction documents,
health & safety policy documents, full meetings, selection & appraisal interviews, joint
consultative committees and disciplinary meetings
...

ii
...

iv
...


To give feedback to subordinates after performance appraisal thus boosting
morale and creating direction
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To communicate strategies to managers and enable them formulate programs to
execute those strategies
...
v
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To implement and institute changes that seeks to harmonize organization systems
...

ii
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Filtering and distortion especially in oral messages whereby information flows
through hierarchies
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Employees are demoralized as they tend to feel they are instruments used in
carrying out tasks and taking instructions
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Employees tend to ignore information from superiors when the organization is
taken over by politics dividing hierarchies into “them and us” which slows down
operations
...
Horizontal Communication
Also known as lateral communication horizontal communication, is where information flows
between departments to help employees share information, coordinate tasks, building rapport
and solve complex problems
...
g
...
Horizontal communication may be in the form of: letters,
memos, reports, coordinating committees, cross- sectional teams, group conferences and
informal communication
...

ii
...

iv
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To coordinate inter-departmental tasks
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Emphasizes on achievement of a common goal by all departments
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ii
...

iv
...

It flounders in organizational environments that encourage competition rather
than environments that require cooperation or where rewards and resources are
scarce
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Traditional bureaucratic organizations discourage horizontal communication as
they want information to flow through formal chains of command
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Diagonal communication
Diagonal communication occurs when there is communication between lower and higher
levels of hierarchy, but both in different lines of authority (for example, between senior
members of academic staff and junior Bursary officers, etc
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4
...
It is an informal communication network that operates anywhere two or
more employees are in contact
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Informal
communication is an inherent and even a necessary aspect of organization life
...

Objectives of grapevine
i
...

iii
...

v
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To strengthen employee cohesiveness
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To encourage managers to act and plan more carefully
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2
...

4
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6
...

8
...

10
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It is easy for the employees to take the explanation by informal system
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Present grievance: Under the informal system the employees disclose their needs,
sentiment and their emotions to others authority without feeling any hesitation
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Informal system covers the gap or familiarity of formal system
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So it makes good relationships among the employees and
the management
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For this, the work is done properly and it develops the
efficiency of the employee
...
As a result it creates an opportunity to send the
recommendation/feedback to their management
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Rapid communication: Informal communication transmits very fast
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Improve interpersonal relationship: Cooperation and coordination in informal
communication leads to improve interpersonal relationship which is very much essential to
carry out the business activity smoothly
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Free flow of information
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Evaluation of employees
...
Reliving

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frustration
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Solution of problems and helping decision-making
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11
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This avoids the delay of „going
through the right channels
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It may create a conducive working atmosphere, again leading to higher
productivity: If the needs and goals of formal management coincide with those of the
informal organization, in other words, if staff are well motivated, then the atmosphere of
trust between the management and employees will lead to higher productivity
...
It helps to diffuse tensions: Job satisfaction is also related to social environment
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Limitations of Grapevine
1
...

3
...

5
...

7
...

9
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Operates outside management control
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Builds networks and informal reporting networks that thrive in company politics
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Spread rumor: In this system, the miss-information or rumor spread rapidly
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Misunderstanding: Under this system, generally, the employees do not obey the formal
authorization system
...

Maintaining secrecy is impossible: In informal communication system maximum
communication is made by open discussion
...

Difficulty in controlling: Under informal communication system no established rules or
policy is obeyed
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Non-cooperation: Informal communication system sometimes develops the adversary
culture among the employees
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Others: Providing partial information
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No documentary evidence
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Contradicting to formal information etc
...
However different environments support different channels
...
It is
important that managers identify the objectives they want to achieve in relation to their
strategies and then support appropriate channels consistent with their objectives
...
The International Public Relations Association, the Hague declares PR to be -a
management function of a continuing and planned character, through which public and
private organizations and institutions seek to win and retain the understanding, sympathy
and support of those whom they are or may be concerned – by evaluating public opinion
about themselves, in order to correlate as far as possible, their own policies and procedures, to
achieve by planned and widespread information more productive co- operation and more
efficient fulfillment of their common interests
...
Bernays regarded as the father of PR defines it as the attempt of information,
persuasion and adjustment to engineer public support for an activity, cause, movement and
institution
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With all the definitions of PR there is clear emergence that PR
takes place between the organization and various publics resulting into a beneficial
relationship
...
g
...
t
...
The PR process requires planned and sustained
effort to establish and maintain goodwill and mutual understanding between the
organization and all its stakeholders
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ii
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iv
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To establish and maintain a two way communication based on the truth and full
information: PR is about publicizing information of truth by a continuous way of
feedback
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The interests of all these publics are reconciled to ensure
satisfaction of all groups
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It also ensures the
management is in good relations with the trade union
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Promote corporate social responsibility: Activities like sponsorship and causes add
value to the society besides building the public image of the company
...

vii
...

ix
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Promote ideas, products and services: PR publicizes the company and makes it
known to the general public while providing sufficient information about its products
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Encourage interest in international affairs: Having satisfied the interest of local publics
the company starts getting outside national boundaries as it grows and expands
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Existing employees find prestige in
being associated with a company that has good reputation as they continue
developing their skills to ensure they are retained
...
The interests of all stakeholders are achieved (though at different
degrees) as PR serves all the publics of a firm
...
In fact at times organizations engage
in PR without knowledge that they do so
...
g
...
t
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Media used in PR
Different media and techniques are used in PR activities
...
t
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To make sure the
media used is effective, it should:
§ Be factual, newsworthy and impartial
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They can be
distributed for free or sold
...
g
...
t
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These publications can contain news on policies,
products, promotions, social news, employee contribution e
...
c
...
g
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Sponsored books: These are books sponsored by other stakeholders to the firm e
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, road maps
and tourist guides sponsored by petrol and tyre companies
...
g
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Sponsorship events: The organization can sponsor sports, arts, causes, charities, expeditions and
university fellowships which advertise, market and emphasize on CSR to generate goodwill
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Direct m ail: Mail is used to add
personal touch to the person receiving the mail hence improves relationships
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Radio & Television: These are the most commonly used media by various publics and are
therefore very reliable due to their ability of covering wide geographical expansions
...
g
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Audio - visuals: These are versatile and fast developing media for the PR practitioner
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They include PowerPoint, overhead projectors, multiple screen presentations, twin
projector cross fade slides and videocassettes
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PR as a Management Tool
PR is a major function of management that aids in achievement of organization objectives
...
The consideration of all publics ensures organizations that capitalize on
PR are all-rounders i
...
they achieve both their goals and those of the internal and external
stakeholders
...
The main reasons for defining
publics include; to identify all groups relative to PR programmes, select media techniques,
establish priorities on budgetary grounds and tailor-make information for every public
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PR activity is aimed at the different publics in
different ways as they all have different interests
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These
populations have problems the company can assist in solving and opportunities that
require resources to realize and explore
...
They develop interest in the
organization when they have sufficient information about the organization and regard
it as a potential employer
...
They are all represent diversity from their needs and wants to their
different backgrounds and language
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· Suppliers: Suppliers are important because they provide materials for the firm e
...

energy, raw materials, maintenance services e
...
c
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· Distributors: They help in getting goods to places most convenient to consumers and
customers
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· Consumers & Users: These include customers who purchase products for consumption
and those who purchase for use in production of other goods
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· Financial Publics: These are investors including banks, venture capitalists e
...
c
...
g
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· Trade Unions: This group has a powerful influence on commercial, industrial and
political sectors
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· Opinion Leaders: This group consists of people who express opinions that can harm and
help an organization
...
t
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They can be a formidable public who
are prejudiced and ill-informed which calls for face to face communication
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Publishers, producers, journalists and editors have total
control of what they see or hear
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b) PR manager/Department working together with Management
The PR person and department in any organization have the job of constantly looking out
for newsworthy events, products, developments and stories of human interest to develop
them into: a press conference, news release, corporate material for direct mailing, briefing
packs for potential customers, free educational packs for educational centres, photo
opportunity for newspaper coverage or briefing packs for special groups and visitors
...
t
...
At times PR issues in an organization may be
entrusted to professional agencies if the firm is too small to have its own department or if it
has very complex issues that are better worked upon by both its department and the
agency
...
However lack of proper training and unclear job
specifications may make PR people a liability
...
g
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The PR manager may
sometime lack sufficient executive status to enjoy the respect of management and the
media
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Creating external lines of communication so as to be a reliable source of material
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c) Internal PR
Internal PR is made up of staff relations highly supported by effective employee relations
...
The effectiveness of internal PR calls for: candid management (open &
upfront mgt), recognition by management of the value and importance of employee
communication
...
At the same time employee relations has now
become the “right” of employees
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With good relations employees will understand and participate in
the functioning of the organization
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The tasks and objectives of Internal PR are to:
i
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iii
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Improve and enhance face-to-face and upward communication as these have been
considered superior with yield of high performance
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Explaining annual reports and accounts and how they affect employees e
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through
dividends, purchase of more shares e
...
c
Explaining company policy and how management is managing
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v
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vii
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ix
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xi
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xiii
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Showing new legislations with their meanings and implications
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Integrating staff after an acquisition or a takeover
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Give new about staff especially in large organizations where employees are
scattered
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Show prospects of international marketing
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Give information on employee benefits e
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pensions, incentive schemes, sales contest
e
...
c
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Unify employees and make them ambassadors of the organization by furnishing
them with information
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Media that an organization can use in internal PR include notice boards, videotapes and
close-circuit tvs, company radio stations, idea box, speak-up schemes e
...
open door policy and
direct to management, shop-floor talks, public address boards, induction literature for new
staff, clubs and societies, staff visits, video/slide presentations, visit by management, exhibition
displays, staff events e
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dinners and outings
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It leads to mutuality as the organization act to ensure interests
of all publics are achieved and not just the organization objectives
...
They must empower the PR team and
make sure they are well trained to make them an important asset to assist in decision making
while continue building the relationship between the organization and all its important
publics

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