Communication and Management Information Systems Notes

Communicating

What Communication Is

Communication plays a key role in the success of a manager. Directing abilities mainly depend on communication skills.
Organizations emphasize improving communication skills for managers and employees.
The word "communication" comes from the Latin word 'communis,' meaning 'common,' implying common understanding.
Communication is the process of exchanging information between two or more persons to reach common understanding.
Definitions:
- Louis Allen: Communication is the sum of all things one person does to create understanding in the mind of another. It involves a systematic and continuous process of telling, listening, and understanding.
- Harold Koontz and Heinz Weihrich: Communication is the transfer of information from the sender to the receiver, with the information being understood by the receiver.
- Rogers: Communication is a process by which people create and share information with one another to reach a common understanding.

Functions of Communication

Information Function:
- Communication provides information for decision-making at various work levels.
- Example: A construction worker receives instructions on the proper use of equipment, guiding their decisions on which equipment to use.
Motivation Function:
- Communication motivates employees to commit to the organization's objectives.
Control Function:
- Reports, policies, and plans, when properly communicated, define roles and clarify duties, authorities, and responsibilities, facilitating effective control.
Emotive Function:
- Communication provides a means to decrease internal pressure by addressing employees' emotions, whether satisfaction, dissatisfaction, happiness, or bitterness.
- Repressed feelings in the organization can lead to anxiety, affecting performance.

Elements of the Communication Process

The communication process involves elements like sender, message, encoding, media/channel, receiver, decoding, noise, and feedback.
Sender: The person who conveys thoughts or ideas to the receiver; the source of communication.
Message: The content of ideas, feelings, suggestions, orders, etc., intended to be communicated.
Encoding: The process of converting the message into communication symbols such as words, pictures, gestures, etc.
Media: The path through which the encoded message is transmitted to the receiver (written form, face-to-face, phone call, internet, etc.).
Decoding: The process of converting encoded symbols by the receiver.
Receiver: The person who receives the communication from the sender.
Feedback: Actions of the receiver indicating that they have received and understood the message of the sender.
Noise: Obstruction or hindrance to communication, which may be caused to the sender, message, or receiver.
- Examples of noise:
  - Ambiguous symbols that lead to faulty encoding.
  - A poor telephone connection.
  - An inattentive receiver.
  - Faulty decoding (attaching wrong meanings to the message).
  - Prejudices obstructing the poor understanding of the message.
  - Gestures and postures that may distort the message.

Importance of Communication

A manager's effectiveness depends significantly on their ability to communicate effectively with superiors, subordinates, and external agencies (bankers, suppliers, unions, government).

Acts as basis of coordination
Helps in smooth working of an enterprise
Acts as basis of decision making
Increases managerial efficiency
Promotes cooperation and industrial peace
Establishes effective leadership
Boosts morale and provides motivation

Communication Network

The pattern through which communication flows within the organization.
Different types of communication networks may operate in formal organizations.
Types of Networks:
- Chain
- Wheel
- Circular
- Free Flow
- Inverted V

Formal Communication

Formal communication flows through official channels designed in the organization chart.
This communication may take place between a superior and subordinate, a subordinate and superior, or among same-cadre employees or managers.
Communications may be oral or written but generally recorded and filed in the office.
Formal communication is further classified as Vertical and Horizontal.
- Vertical Communication: Flows vertically (upwards or downwards) through formal channels.
- Horizontal (or Lateral) Communication: Takes place between one division and another.
Specific Formal Communication Networks:
- Single chain: This network exists between a supervisor and his subordinates.
- Wheel: All subordinates under one superior communicate through him only as he acts as a hub of the wheel.
- Circular: Communication moves in a circle. Each person can communicate with his adjoining two persons. Communication flow is slow.
- Free flow: Each person can communicate with others freely. The flow of communication is fast.
- Inverted V: A subordinate is allowed to communicate with his immediate superior as well as his superior’s superior.

Informal Communication

Communication that takes place without following the formal lines of communication.
Informal system of communication is generally referred to as the 'grapevine' because it spreads throughout the organization with its branches going out in all directions, disregarding levels of authority.
Informal channels are used by managers to transmit information to know the reactions of subordinates.
Grapevine Network:
- Single Strand Network: Each person communicates to the other in sequence.
- Gossip Network: Each person communicates with all others on a nonselective basis.
- Probability Network: The individual communicates randomly with other individuals.
- Cluster Network: The individual communicates with only those people whom he trusts. (Most popular in organizations)

Barriers to Communication

Semantic Barriers:
- Badly expressed message
- Symbols with different meanings
- Faulty translations
- Unclarified assumptions
- Technical jargon
- Body language and gesture
- Decoding
Psychological Barriers:
- Premature evaluation
- Lack of attention
- Loss by transmission and poor retention
- Distrust
Organizational Barriers:
- Organizational policy
- Rules and regulations
- Status
- Complexity in organization structure
- Organizational facilities
Personal Barriers:
- Fear of challenge to authority
- Lack of confidence of superior on his subordinates
- Unwillingness to communicate
- Lack of proper incentives

Improving Communication Effectiveness

Clarify the ideas before communication
Communicate according to the needs of the receiver
Consult others before communicating
Be aware of languages, tone, and content of the message
Convey things of help and value to listeners
Ensure proper feedback
Communicate for the present as well as the future
Follow up communications
Be a good listener

Management Information System (MIS)

Communication serves the information function; a way must be devised to allow the organization to absorb information necessary for effective decision-making.
Companies organize systems to gather information useful to management.
Definition (Boone and Kurtz): An organized method of providing past, present, and projected information on internal operations and external intelligence for use in decision-making.
MIS consists of written and electronically based systems for sending reports, memos, bulletins, and the like.
The system allows managers of different departments within the firm to communicate with each other.
Purposes of MIS (Wheelen and Hunger):
1. To provide a basis for the analysis of early warning signals that can originate both externally and internally.
2. To automate routine clerical operations like payroll and inventory reports.
3. To assist managers in making routine decisions like scheduling orders, assigning orders to machines, and recording supplies.
4. To provide the information necessary for management to make strategic or non-programmed decisions.

MIS Relation with Departments

The Management Information System interacts with various departments:
- Manufacturing
- Marketing
- Finance
- Personnel
- Engineering
- Research and Development