KPR COLLEGE OF ARTS SCIENCE AND RESEARCH

Avinashi Road, Coimbatore-641407.

UNIT IV
Directing: Definition -Nature and purpose of Directing - Principles – Motivation - Definition -
Theories of Motivation (Maslow‘s, McGregor, ERG Theory, Herzberg two factor theory)–
Leadership: Definition-Styles – Communication: Definition - Importance of Communication –
Methods of Communication – Types – Barriers.

Directing
The process of instructing, guiding, counseling, motivating, and leading people in an
organisation to achieve the organisational goals is known as Directing.
Directing not only includes order and instructions by a superior to the subordinates but also
includes guiding and inspiring them. It encompassed many elements like motivation, leadership,
supervision, besides communication. It is a managerial function which is performed throughout the
life of an organisation.
In the words of Ernest Dale,” Direction is telling people what to do and seeing that they do it
to the best of their ability”.
In the words of Theo Haimann,” Directing consists of the process and techniques utilized in
issuing instructions and making certain that operations are carried on as originally planned”.
After planning, organising the structure of the organization and arranging the necessary human force,
the next important step is directing. Directing aims to ensure that activities of all the employees are
mobilized towards the organisational goals. It is the connecting link between the functions of
management, i.e., planning, organising, staffing and controlling.

Features or Characteristics of Directing

The characteristics of Directing are as follows:
Directing initiates action: The other functions of management, i.e., planning, organising,
staffing,etc., create conditions for managers to take appropriate actions, whereas directing function
initiates actions in an organisation. It converts plans into action. It is the key managerial function
performed by the managers.
Directing is pervasive: It is pervasive as it takes place at every level of management. It takes
place wherever superior-subordinate relations exist. Every manager has a subordinate who works
under him and is responsible for getting things done.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 Directing is a continuous process:Directing is an ongoing activity. It takes place throughout
the life of an organisation, irrespective of the people in the organisation. Managers give orders to their
subordinates, motivate them, and guide them on a continuous basis.
Directing flows from top to bottom: It flows from top to bottom through the organisational
hierarchy. In directing, every manager directs his subordinates and takes instructions from his
immediate boss. It is a function of a superior, i.e., the superior motivates, guides, and supervises his
subordinates to achieve the organisational goals.
Directing deals with people: It is concerned with the direction of human efforts towards
organisational goals. It can be said that directing is a delicate function, as it deals with people,
and human behaviouris complex and highly unpredictable.

Importance of Directing
The importance of directing are as follows:
Directing Initiates action: Directing sets an organisation into motion, and helps other
managerial functions to initiate and activate. It helps the managers to supervise, communicate, lead,
guide and motivate the subordinates to achieve the organisational goals. For example, a superior
guides his subordinates and explains the task, which will help the subordinates to start the work and
achieve the goal.
Directing leads to integrated group activity: The organisational objectives can be achieved
only when individual efforts are integrated. Directing integrates employees’ efforts in such a way that
every individual effort contributes to organisational performance. For example, a leader can convince
his subordinates that group efforts will help to achieve organisational goals.
Directing attempts to get maximum out of individuals: Directing helps superiors to realise
the potential and identify the capabilities of individuals by motivating and guiding them. By using the
elements of directing, i.e., supervision, motivation, leadership, and communication, the efficiency of
employees can be raised.
Directing helps to implement changes: Directing helps to introduce changes in an
organisation. Generally, people in an organisation resist changes. Effective communication,
supervision, motivation and guidance help to overcome such resistance at the workplace. For example,
the introduction of a new method of doing a particular task in a factory is resisted by workers, but
when managers explain the purpose, guide and provide them training and rewards, it can be easily
accepted by the workers.
Directing provides stability and balance in the organisation: Stability and balance are
maintained in an organisation with the help of directing because it fosters cooperation and

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
commitment amongst employees, and helps to achieve balance amongst various groups, departments,
units, etc. For example, every individual has personal goals, but the managers integrate the efforts of
all the individuals towards the achievement of organisational goals through guidance,
motivation, supervision and communication.

Principles of Directing
Effective directing is an art, that a superior can learn through practice. However, managers or
superiors can follow some principles while directing.
Maximum Individual Contribution:This principle says that the directing function should
create self-confidence amongst the subordinates and motivate them so that they give their best to the
organisation. Objectives of an organisation are achieved at the optimum level only when every
individual in the organisation makes a maximum contribution. Therefore managers should try to elicit
the maximum possible contribution from each subordinate. It is the duty of the managers to explore
and find out the hidden talents of the subordinates. For example, timely rewarding the workers can
motivate them to contribute maximum towards the organisation’s goals.
Harmony of Objectives: This principle says that management should harmonise the
individuals’ objectives with organisational objectives. Every individual joins the organisation to
satisfy their needs both their physiological and psychological needs. They are expected to work for the
achievement of organisational goals. They will perform their tasks better if they feel that it will satisfy
their personal goals too. Therefore managers should harmonise or reconcile the personal goals of
employees with the organisational goals.
Unity of Command: According to this principle, each subordinate should receive orders and
instructions from one superior only. If a subordinate is made accountable to two bosses
simultaneously, there will be confusion, conflict, disorder and indiscipline in the organisation.
Therefore, every subordinate should report to one manager only.
Appropriateness of Direction Techniques: According to this the manager should use correct
direction techniques to ensure the efficiency of direction. The techniques used should be suitable for
subordinates, organisation and the situation. Goals can be accomplished only when an efficient
direction is given.
Managerial Communication: According to this, there should be a systematic flow
of communicationbetween the superiors and subordinates to achieve the goals of the organisation. A
good system of communication between the superior and subordinates helps to achieve mutual
understanding. Upward communication, i.e., taking feedback from the subordinates helps a manager

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
to understand the subordinates and allows the subordinates to express their feelings. So proper
feedback is needed from the subordinates.
Strategic Use ofInformal Organisation: Management should try to identify, understand and
use informal groups to strengthen formal and official relationships to improve the effectiveness of
direction.
Effective Leadership: According to this principle, managers should exercise good leadership
while directing the subordinates. They should act as leaders so that they can influence the activities of
subordinates to achieve the goals of the organisation. As leaders, they should guide and counsel
subordinates in their personal problems too to win the confidence and trust of their subordinates.
Direct Supervision: Direction becomes more effective when there is a direct personal contact
between the superior and his subordinates. Morale and commitment of employees are improved
through direct contact. Therefore, direct supervision should be used wherever possible.
Principle of Follow through: After issuing orders and instructions, the subordinates must be
monitored. A manager should find out whether the subordinates are working properly and the
problems they are facing regularly because directing is a continuous process. He should act
accordingly after following through with the activities of the subordinates.

Motivation
The word Motivation derives from the Latin word “Movere”. The Latin word “Movere” means
“To move”, “To drive” or “To drive forward” etc. Motivation can be defined as stimulating, inspiring
and inducing the employees to perform to their best capacity. Motivation is a psychological term
which means it cannot be forced on employees. It comes automatically from inside the employees as it
is the willingness to do the work.
Joe Kelly defined Motivation as “Motivation is a process where by needs instigate behavior
directed towards the goals that can satisfy those needs.”
According to W. G. Scot, “Motivation means a process of stimulating people to action to
accomplish the desired goals.”
According to Michael J. Jucius, “Motivation is the act of stimulating someone or oneself to
get a desired course of action, to push the right button to get desired results.”

Features of Motivation
Motivation is a psychological phenomenon. Motivation is an internal feeling which means it
cannot be forced on employees. The internal feelings such as need, desire, aspirations etc. influence

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
human behavior to behave in a particular manner. For example, desire to have a new house, respect
and recognition etc.
Motivation produces goal directed behavior. Motivation induces people to behave in such a
manner so that they can achieve their goal. Motivated person need no supervision or direction. He will
always work in the desired manner. For example, a person has a motive to get a promotion so he will
work efficiently to get a promotion.
Motivators can be positive as well as negative. To motivate employees, managers use
various motivators. Some motivators are positive and some are negative few examples of positive
motivators are promotion, increment, bonus, respect, recognition etc. if employee does not improve
his performance with positive motivators then manager uses negative motivators such as warning,
issue of memo, demotion, stopping increments etc. sometimes fear of negative motivators also induces
person to behave in a desired manner.
Motivation is a complex process. Motivation is a complex and difficult task. In order to
motivate people a manager must understand various types of human needs. Human needs are mental
feelings which can be measured accurately. If the manager measures them accurately then also every
person uses different approaches to satisfy his needs. Some get satisfied with monetary incentives,
some with non-monetary, some with positive and some with negative motivators. So it is not possible
to generalize motivation.
Motivation is a dynamic and continuous process. Human beings are ever-changing. Human
needs are unlimited and go on changing continuously. Satisfaction of one need gives rise to another so
managers have to continuously perform the function of motivation.

Theories of Motivation
Maslow’s theory of Motivation
Maslow’s hierarchy of needs is a theory in psychology proposed by Abraham Maslow in 1943.
This theory is often portrayed in the shape of a pyramid with the largest, most fundamental needs at the
bottom and the need for self actualization at the top. From the bottom, the first four levels of the
pyramid contain “deficiency needs” such as physiological, safety, love/belonging and esteem needs.
The basic needs must be met before the individual will strongly desire for the next level needs. For
example, an individual will not expect safety needs until unless his physiological needs are met. He
will not desire for love and belonging before the safety needs are met. Maslow also coined the term
‘meta motivation’ to describe the motivation of people who go beyond the scope of the basic needs
and strive for constant betterment. If these “deficiency needs” are not met, the individual will feel
anxious and tense.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
Maslow’s Hierarchy of Needs

Physiological needs
Physiological needs are the physical requirements for human survival. If these requirements
are not met, the human body cannot function properly and will ultimately fail. Physiological needs are
the first and basic need in the hierarchy. Without them, the other needs cannot follow up.
Physiological needs include breathing, water, food, sleep, clothing, shelter.
Safety needs
Once a person’s physiological needs are relatively satisfied, their safety needs take precedence
and dominate behavior. For example in the absence of physical safety – due to war, natural disaster
etc. – people may experience stress and tension. Safety and Security needs include personal security,
emotional security, financial security, health and well being and safety needs against accidents/illness
and their adverse impacts.
Love/Belonging
The third level of human needs is interpersonal and involves feelings of belongingness. Social
Belonging needs include friendships, family and intimacy. Human beings need to feel a sense of
belonging and acceptance among social groups, regardless whether these groups are large or small.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
The example for large social groups may include clubs, religious groups, sports teams, gangs, etc and
some small social connections include family members, intimate partners, mentors, colleagues, etc.
Human beings need to love and be loved.
Self esteem
Self Esteem is a belief about one’s own worth based on an overall self evaluation. Esteem
needs are ego needs or status needs which are related to getting recognition, status, importance, and
respect from others in the society. All humans have a need to feel respected; this includes the need to
have self esteem and self-respect. These activities give the person a sense of contribution or value.
Deficiency in this level leads to low self esteem.
Self-actualization
Self actualization refers to an individual’s need to develop his or her potentialities: in other
words, to do what he or she is capable of doing. It means a person’s motivation to reach his or her full
potential.

McGregor Theory of Motivation

Introduction to McGregor’s Theory X and Theory Y
McGregor’s Theory X and Theory Y present two distinct views of human nature in the
workplace. These theories, formulated by Douglas McGregor in the 1960s, provide a framework for
understanding and improving management/employee relationships.
By examining these theories, managers can better understand their employees’ motivations and adopt
more effective leadership styles.
Douglas McGregor was a renowned American social psychologist, best known for his
groundbreaking work on motivation and leadership.
His theories, particularly Theory X and Theory Y, have had a lasting impact on management
practices. McGregor’s work emphasized the importance of understanding employee needs and
creating a supportive work environment.
The theories concern management’s view of what motivates their team. They are
oppositional theories, in the sense that if a manager or executive supports one, they won’t believe the
other.
The Origins of Theory X and Theory Y
McGregor introduced Theory X and Theory Y in his 1960 book, “The Human Side of Enterprise.”°
“What are your assumptions (implicit as well as explicit) about the most effective way to
manage people?” – Douglas McGregor.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 He proposed that managers’ beliefs about their employees’ motivations could significantly
influence their management style and the resulting workplace dynamics.
Theory X is based on a pessimistic view of human nature, while Theory Y adopts an optimistic
perspective.
There’s even a visual mnemonic to help you remember which theory is which:

X: the figure has crossed arms and is refusing additional work.

Y: the figure stands in an expression of joy, welcoming challenges.
Understanding Theory X
Let’s begin with the theory that assumes the worst about employees.
Theory X assumes that employees inherently dislike work and must be closely supervised and
controlled to achieve organisational goals. In effect, employees are working for the pay cheque and
the weekend.
This perspective leads to an authoritarian management style, focusing on strict supervision,
control, and the use of external incentives.
Assumptions of Theory X
Certain conditions must pertain for theory X to be adopted. These largely divide into
assumptions about the psychology of employees and beliefs about the right way to motivate workers.
Human Nature and Motivation
Theory X posits that employees are naturally lazy, lack ambition, and prefer to avoid
responsibility.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 They are motivated primarily by monetary rewards and job security, necessitating constant
supervision to ensure productivity.
Management Style and Control
Managers who adopt Theory X believe in a top-down approach, using strict rules, close
supervision, and a rigid structure to manage employees.
This style often involves micromanagement and a focus on compliance and adherence to
procedures.
What managers adopting this theory often miss is that a negative organisational culture can
significantly affect morale and drive employees to work to rule.
Examples of Theory X Management
The theory is not an outmoded, out-of-date belief, unfortunately. All too many managers in
2024 are happy to treat workers as reluctant, lazy, and in need of constant supervision.
Let’s look at this belief in both its current and historical versions.
Historical Context
In the early 20th century, during the industrial revolution, many factories and businesses
operated under Theory X principles.
The belief that workers needed to be controlled and supervised closely was prevalent, leading
to rigid hierarchies and limited employee autonomy.
It is also true of course that employees worked long hours, often six-day weeks, with fewer
breaks, few or no benefits and harsher working environments.
Understanding Theory Y
In contrast to Theory X, Theory Y assumes that employees are self-motivated, enjoy their
work, and seek out responsibility.
This theory promotes a participative management style, encouraging collaboration,
creativity, and empowerment.
Of course, this theory tends to prove accurate in working environments that provide attractive
challenges, appropriate remuneration, and a sense of fulfillment.
Assumptions of Theory Y
Like McGregor’s Theory X, Theory Y requires a set of basic assumptions about worker
motivation and management style.

Human Nature and Motivation

Theory Y suggests that employees find work as natural as play or rest and are capable of
self-direction and self-control.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 They are motivated by opportunities for personal development, recognition, and the
fulfillment of their potential.
In some instances, this might be considered wishful thinking. It’s not clear that all sanitation
workers or student fast-food workers are looking for opportunities for personal growth at work.
Some work is purely pragmatic; the employee needs a job to pay their rent and bills. However,
theory Y holds that almost all workplaces can be optimised for growth opportunities, personal
advancement, and a sense of reward.
Management Style and Empowerment
Managers who embrace Theory Y encourage a supportive and collaborative environment.
They focus on developing employees’ skills, providing opportunities for growth, and creating a sense
of ownership and involvement in decision-making.
Famous examples of employers adopting this approach include Google, Salesforce, and
Morgan Stanley. All three were recently described as the best places to work in the UK.
Examples of Theory Y Management
Historical Context
The emergence of Theory Y can be traced back to the human relations movement in the
mid-20th century.
Companies like Hewlett-Packard and Toyota embraced these principles, promoting teamwork,
employee development, and participative decision-making.
Play is also an under-rated value that Theory Y managers appreciate. There’s a famous image
on the Hewlett-Packard website, taken around 1963, of HP engineers having a miniature car Grand
Prix in the office!

ERG Theory of Motivation

To bring Maslow’s need hierarchy theory of motivation in synchronization with empirical research,
Clayton Alderfer redefined it in his own terms. His rework is called as ERG theory of motivation. He
recategorized Maslow’s hierarchy of needs into three simpler and broader classes of needs:
Existence needs- These include need for basic material necessities. In short, it includes an
individual’s physiological and physical safety needs.
Relatedness needs- These include the aspiration individual’s have for maintaining significant
interpersonal relationships (be it with family, peers or superiors), getting public fame and recognition.
Maslow’s social needs and external component of esteem needs fall under this class of need.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
Growth needs- These include need for self-development and personal growth and advancement.
Maslow’s self-actualization needs and intrinsic component of esteem needs fall under this category of
need.
The significance of the three classes of needs may vary for each individual.
Difference between Maslow Need Hierarchy Theory and Alderfer’s ERG Theory
ERG Theory states that at a given point of time, more than one need may be operational.
ERG Theory also shows that if the fulfillment of a higher-level need is subdued, there is an
increase in desire for satisfying a lower-level need.
According to Maslow, an individual remains at a particular need level until that need is
satisfied.
While according to ERG theory, if a higher-level need aggravates, an individual may revert to
increase the satisfaction of a lower-level need. This is called the frustration-regression aspect of ERG
theory.
For instance – when growth needs aggravate, then an individual might be motivated to
accomplish the relatedness need and if there are issues in accomplishing relatedness needs, then he
might be motivated by the existence needs. Thus, frustration/aggravation can result in regression to a
lower-level need.
While Maslow’s need hierarchy theory is rigid as it assumes that the needs follow a specific
and orderly hierarchy and unless a lower-level need is satisfied, an individual cannot proceed to the
higher-level need; ERG Theory of motivation is very flexible as he perceived the needs as a
range/variety rather than perceiving them as a hierarchy.
According to Alderfer, an individual can work on growth needs even if his existence or
relatedness needs remain unsatisfied. Thus, he gives an explanation to the issue of “starving artists”
who can struggle for growth even if he is hungry.
Implications of the ERG Theory
Managers must understand that an employee has various needs that must be satisfied at the
same time.
According to the ERG theory, if the manager concentrates solely on one need at a time, this
will not effectively motivate the employee. Also, the frustration-regression aspect of ERG Theory has
an added effect on workplace motivation.
For instance – if an employee is not provided with growth and advancement opportunities in an
organization, he might revert to the relatedness need such as socializing needs and to meet those
socializing needs, if the environment or circumstances do not permit, he might revert to the need for
money to fulfill those socializing needs. The sooner the manager realizes and discovers this, the more

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
immediate steps they will take to fulfill those needs which are frustrated until such time that the
employee can again pursue growth.

Herzberg’s Two-Factor Theory of Motivation

In 1959, Frederick Herzberg, a behavioural scientist proposed a two-factor theory or the
motivator-hygiene theory. According to Herzberg, there are some job factors that result in satisfaction
while there are other job factors that prevent dissatisfaction. According to Herzberg, the opposite of
“Satisfaction” is “No satisfaction” and the opposite of “Dissatisfaction” is “No Dissatisfaction”.

FIGURE: Herzberg’s view of satisfaction and dissatisfaction

Herzberg classified these job factors into two categories-

Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace. These do not lead to positive satisfaction for the long-term. But if these
factors are absent/if these factors are non-existent at the workplace, then they lead to dissatisfaction.
In other words, hygiene factors are those factors which when adequate/reasonable in a job,
pacify the employees and do not make them dissatisfied. These factors are extrinsic to work.
Hygiene factors are also called as dissatisfiers or maintenance factors as they are required to
avoid dissatisfaction. These factors describe the job environment/scenario. The hygiene factors
symbolized the physiological needs which the individuals wanted and expected to be fulfilled.
Hygiene factors include:
Pay: The pay or salary structure should be appropriate and reasonable. It must be equal and
competitive to those in the same industry in the same domain.
Company Policies and administrative policies: The company policies should not be too
rigid. They should be fair and clear. It should include flexible working hours, dress code, breaks,
vacation, etc.
Fringe benefits: The employees should be offered health care plans (mediclaim), benefits for
the family members, employee help programmes, etc.

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 Physical Working conditions: The working conditions should be safe, clean and hygienic.
The work equipments should be updated and well-maintained.
Status: The employees’ status within the organization should be familiar and retained.
Interpersonal relations: The relationship of the employees with his peers, superiors and
subordinates should be appropriate and acceptable. There should be no conflict or humiliation element
present.
Job Security: The organization must provide job security to the employees.
Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as
motivators. The motivational factors yield positive satisfaction. These factors are inherent to work.
These factors motivate the employees for superior performance.
These factors are called satisfiers. These are factors involved in performing the job.
Employees find these factors intrinsically rewarding. The motivators symbolized the psychological
needs that were perceived as an additional benefit. Motivational factors include:
Recognition: The employees should be praised and recognized for their accomplishments by
the managers.
Sense of achievement: The employees must have a sense of achievement. This depends on the
job. There must be a fruit of some sort in the job.
Growth and promotional opportunities: There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
Responsibility: The employees must hold themselves responsible for the work. The managers
should give them ownership of the work. They should minimize control but retain accountability.
Meaningfulness of the work: The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.

Limitations of Two-Factor Theory

The two factor theory is not free from limitations:
The two-factor theory overlooks situational variables.
Herzberg assumed a correlation between satisfaction and productivity. But the research
conducted by Herzberg stressed upon satisfaction and ignored productivity.
The theory’s reliability is uncertain. Analysis has to be made by the raters. The raters may spoil
the findings by analyzing the same response in different manner.
No comprehensive measure of satisfaction was used. An employee may find his job acceptable
despite the fact that he may hate/object to part of his job.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 The two factor theory is not free from bias as it is based on the natural reaction of employees
when they are enquired about the sources of satisfaction and dissatisfaction at work. They will blame
dissatisfaction on external factors such as salary structure, company policies and peer relationship.
Also, the employees will give credit to themselves for the satisfaction factor at work.
The theory ignores blue-collar workers.
Despite these limitations, Herzberg’s Two-Factor theory is acceptable broadly.

Implications of Two-Factor Theory

The Two-Factor theory implies that the managers must stress upon guaranteeing the adequacy
of the hygiene factors to avoid employee dissatisfaction. Also, the managers must make sure that the
work is stimulating and rewarding so that the employees are motivated to work and perform harder
and better.
This theory emphasizes job-enrichment so as to motivate the employees. The job must
utilize the employee’s skills and competencies to the maximum. Focusing on the motivational factors
can improve work-quality.

Leadership
Leadership is the ability to build up confidence and zeal among people to create an urge to be
led. To be a successful leader, a manager must possess the qualities of foresight, drive, initiative,
self-confidence and personal integrity. Different situations may demand different types of leadership.
Leadership has been defined in various ways. Stogdill has rightly remarked that there are almost as
many definitions of leadership as there are people who have tried to define it.
“Leadership is the ability of a manager to induce subordinates to work with confidence and
zeal.”—Koontz and O’Donnell.
“Leadership is the exercise of authority and making of decisions.” —Dubin, R.
“Leadership is the ability to secure desirable actions from a group of followers voluntarily,
without the use of coercion.”—Allford and Beaty.
“Leadership is the activity of influencing people to strive willingly for group
objectives.”—George R. Terry.
Features of Leadership
Influence the behaviour of others: Leadership is an ability of an individual to influence
the behaviour of other employees in the organization to achieve a common purpose or goal so that
they are willingly cooperating with each other for the fulfillment of the same.

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 Interpersonal process: It is an interpersonal process between the leader and the followers.
The relationship between the leader and the followers decides how efficiently and effectively the
targets of the organization would be met.
Attainment of common organizational goals: The purpose of leadership is to guide the
people in an organization to work towards the attainment of common organizational goals. The leader
brings the people and their efforts together to achieve common goals.
Continuous process: Leadership is a continuous process. A leader has to guide his employees
every time and also monitor them in order to make sure that their efforts are going in the same
direction and that they are not deviating from their goals.
Group process: It is a group process that involves two or more people together interacting
with each other. A leader cannot lead without the followers.
Dependent on the situation: It is situation bound as it all depends upon tackling the situations
present. Thus, there is no single best style of leadership.
Importance of Leadership:
Initiating Action: Leadership starts from the very beginning, even before the work actually
starts. A leader is a person who communicates the policies and plans to the subordinates to start the
work.
Providing Motivation: A leader motivates the employees by giving them financial and
non-financial incentives and gets the work done efficiently. Motivation is the driving force in an
individual’s life.
Providing guidance: A leader not only supervises the employees but also guides them in their
work. He instructs the subordinates on how to perform their work effectively so that their efforts don’t
get wasted.
Creating confidence: A leader acknowledges the efforts of the employees, explains to them
their role clearly and guides them to achieve their goals. He also resolves the complaints and problems
of the employees, thereby building confidence in them regarding the organization.
Building work environment: A good leader should maintain personal contacts with the
employees and should hear their problems and solve them. He always listens to the point of view of the
employees and in case of disagreement persuades them to agree with him by giving suitable
clarifications. In case of conflicts, he handles them carefully and does not allow it to adversely affect
the entity. A positive and efficient work environment helps in stable growth of the organization.
Co-ordination: A leader reconciles the personal interests of the employees with the
organizational goals and achieves co-ordination in the entity.

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 Creating Successors: A leader trains his subordinates in such a manner that they can succeed
him in future easily in his absence. He creates more leaders.
Induces change: A leader persuades, clarifies and inspires employees to accept any change in
the organization without much resistance and discontentment. He makes sure that employees don’t
feel insecure about the changes.
Qualities of a Leader
Personality: A pleasing personality always attracts people. A leader should also friendly and
yet authoritative so that he inspires people to work hard like him.
Knowledge: A subordinate looks up to his leader for any suggestion that he needs. A good
leader should thus possess adequate knowledge and competence in order to influence the
subordinates.
Integrity: A leader needs to possess a high level of integrity and honesty. He should have a
fair outlook and should base his judgment on the facts and logic. He should be objective and not
biased.
Initiative: A good leader takes initiative to grab the opportunities and not wait for them and
use them to the advantage of the organization.
Communication skills: A leader needs to be a good communicator so that he can explain his
ideas, policies, and procedures clearly to the people. He not only needs to be a good speaker but also
a good listener, counsellor, and persuader.
Motivation skills: A leader needs to be an effective motivator who understands the needs of
the people and motivates them by satisfying those needs.
Self-confidence and Will Power: A leader needs to have a high level of self-confidence and
immense will-power and should not lose it even in the worst situations, else employees will not
believe in him.
Intelligence: A leader needs to be intelligent enough to analyze the pros and cons of a situation
and take a decision accordingly. He also needs to have a vision and fore-sightedness so that he can
predict the future impact of the decisions taken by him.
Decisiveness: A leader has to be decisive in managing his work and should be firm on the
decisions are taken by him.
Social skills: A leader should possess empathy towards others. He should also be a humanist
who also helps the people with their personal problems. He also needs to possess a sense of
responsibility and accountability because with great authority comes great responsibility.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
Leadership Style
Different leadership styles affect employees in different ways and focus on different outcomes.
Most of us in leadership positions tailor our leadership style to suit the situation in which we are
leading, and how we lead is informed by our employees’ needs.
The longer we are in the role of leader and the more we engage with and get to know our
employees and their strengths and weaknesses, the more we adapt our leadership style to yield the
results we want.
Being a good leader means being able to assess the teams we lead and what we ultimately want
them to achieve. Do we want to focus on day-to-day operational duties or do we want to focus
primarily on where we want to go in the future?
While there are many different styles of leadership, there are five that are the most commonly
utilized in business.
The five leadership styles most commonly utilized are authoritarian (autocratic), participative
(democratic), delegative (laissez-faire), transactional (managerial), and transformational
leadership (visionary). Each style takes a different approach to leading others and has its own
strengths and weaknesses.
1. Authoritarian (Autocratic)
In this style of leadership, leaders have all the decision-making power, typically excluding
employees from the decision-making process and dictating work processes and goals.
These leaders exert complete control over subordinates and place an emphasis on obedience
and enforcement of rules and policies to control employees. Loyalty is built through coercion, control,
and, sometimes, fear.
Because they do not seek input from those they are leading, authoritarian leaders can make
decisions quickly and with a great deal of authority and confidence.
This style of leadership is sometimes considered effective in situations where an organization
needs a decisive leader to guide it through a crisis. There is an emphasis on a clear chain of command,
which leaves little doubt for employees about what is expected of them.
However, these kinds of decisions can often have unforeseen consequences because making
decisions in this way stifles innovation and creativity. It often demoralizes employees, leading to
highly toxic work environments. Leading in this way is not conducive to a positive employee
experience, engagement, or job satisfaction either.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
2. Participative (Democratic)
Participative leaders value input from their teams and invite employees to be a part of the
decision-making process. One of the salient features of the participative leadership style is
listening—participative leaders really listen to those they lead.
Participative leaders create environments of open-minded communication, collaboration, and
transparency. Excellent communication skills, an inclusive mindset, and a high degree of emotional
intelligence are prerequisites of this style of leadership.
Types of participative leadership include collective leadership, democratic leadership,
laissez-faire leadership, and consensus decision-making, with autocratic leadership at the lowest end
of the participative leadership spectrum.
In collective leadership, also known as group decision-making or collaborative
decision-making, all members of the organization help to make decisions, meaning no single
individual is responsible for outcomes.
This kind of decision-making has proven to be one of the most successful in creating buy-in
from other stakeholders, building consensus, and inspiring creativity, and it allows leaders
to capitalize on an organization’s intellectual assets and employee expertise.
Democratic leadership falls somewhere between autocratic leadership and collective
leadership. Employees are allowed to give input but final decisions are made by leaders.
Laissez-faire leadership is a more hands-off approach to leadership that delegates tasks to
subordinates.
Consensus decision-making allows employees to provide feedback on decisions, with leaders
facilitating the process. Leaders and their subordinates have an equal role in decision-making and can
veto or block decisions.
Autocratic leadership is at the lowest end of the participative leadership scale. In this style of
leadership, employees lack the authority to either make or overrule decisions.
Participative leadership can be a great leadership style because it includes team members in the
decision-making process, which makes them feel heard and valued. It can foster a more positive, more
collaborative work environment.
However, it can be a difficult leadership style to maintain when fast decision-making and
quick turnaround are priorities in an organization.
3. Delegative (Laissez-Faire)
Delegative leadership is considered to be one of the least intrusive forms of leadership. It is
often referred to as “laissez-faire,” the literal translation of which is “let them do.” This leadership
style avoids micromanagement and delegates initiatives to employees.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 Delegative leaders are strong proponents of autonomy and flexibility. As workers increasingly
want more autonomy and flexibility with less micromanagement in today’s workplace, the greater
freedom this leadership style provides can be a plus when the people being managed are highly skilled,
knowledgeable about their jobs, and able to work well with little supervision. It can be particularly
efficient in remote work environments.
Delegative leaders expect their employees to take ownership of their duties and responsibility
for their actions. Warren Buffett, the CEO of Berkshire Hathaway, is known to practice this style of
leadership. He invests in companies but does not interfere in operational or strategic decision-making.
These types of leaders create and support the conditions necessary for an autonomous culture
by offering little guidance and a lot of mentoring, complete creative and decision-making freedom for
employees, and the resources employees need to do their jobs with independence.
This leadership style can make good use of the expertise and experience of teams and can lead
to high levels of employee satisfaction. Its focus on intrinsic motivation can lead to better
performance.
But it can also rely too heavily on self-motivation, lead to stagnation, and create scenarios
where teams are slow to react and adapt to change. In some cases, delegative leaders may avoid their
responsibilities by handing most of them off to subordinates.
4. Transactional (Managerial)
The transactional style of leadership adheres to the ideas many have about the role of
traditional managers, with an emphasis on organization, supervision, performance, compliance, and
meeting goals, and utilizes rewards and penalties to motivate people.
Transactional leadership has threedistinct characteristics: contingent reward, active
management by exception, and passive management by exception.
Contingent reward refers to the use of recognition and rewards to motivate employees, with
leaders closely monitoring worker performance and offering rewards when they meet goals.
Active management by exception includes monitoring workers’ performance to identify errors,
mistakes, and failures to meet performance expectations and taking corrective action as needed. It
doesn’t emphasize good performance.
In passive management by exception, leaders closely monitor workers’ performance but
refrain from taking corrective action until they absolutely have to. Obviously, this kind of delayed
response can create many issues in a work setting.
Transactional leadership has the advantage of producing consistent, predictable results.
Employees working under this style of leadership can see the impact of their work when their goals are
tied to the growth and success of the organization.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 It has a rewards/penalties system that is easy for employees to follow and understand, reduces
confusion about expectations, and can create a sense of fairness amongst employees who are equally
rewarded for doing good work and punished for doing bad work.
While compliance and meeting targets are an important part of managing others, this style of
leadership does not tend to inspire greatness.
This is because the transactional leadership style leaves very little, if any, room for creativity
and innovation. It does not focus on relationship building, can discourage creativity and innovation,
leads to micromanagement, and may lack a cohesive long-term vision or big-picture view.
It eliminates individuality and tends to create more followers than leaders, which can be a
problem when lower-level employees try to move into management positions or when they are tasked
with managing projects.
It is also a very rigid style of leadership that does not value empathy, listening or input from
subordinates. This can have a negative impact on performance, engagement, and retention, all of
which can hurt the chances for the long-term success of an organization.
5. Transformational (Visionary)
Transformational leaders are all about the vision. These leaders are focused on getting their
teams to buy into the vision and unite over a shared sense of purpose.
These leaders are supportive of their employees and use empathy, recognition, and
empowerment to energize their teams, help them achieve set goals and positive outcomes, and
motivate them to go above and beyond to achieve a shared vision.
There are four pillars of transformational leadership known as the “four I’s”: idealized
influence, inspirational motivation, intellectual stimulation, and individual consideration.
Idealized Influence
Idealized influence describes leaders who are good role models for employees who trust them
to make good decisions for the organization.
Inspirational Motivation
Inspirational motivation describes leaders who motivate employees to commit to the
organization’s vision and inspire them to reach goals that lead to increased profits and growth.
Intellectual Stimulation
Intellectual stimulation describes leaders who encourage and foster creativity and innovation
by challenging the norms and views of the group by promoting critical thinking.
Individual Consideration
Individual consideration describes leaders who coach employees to strive for and achieve
goals that help them and the organization.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 There is a high level of trust, motivation, and commitment in this leadership style and the
potential to inspire great work, high performance, and positive outcomes. It provides a clear vision and
coaches employees to achieve that vision. This can strengthen loyalty, which can reduce turnover.
It can, however, place more emphasis on long-term goals at the expense of day-to-day
operations and short-term goals. It can also slow decision making and lead to employee burnout.
Communication
Communication is an indispensable element in human relationships. Humans interact with one
another through communication. The term ‘communication’ is derived from the Latin word
‘communis‘, which means common. Therefore, communication is defined as an exchange of facts,
ideas, opinions, or emotions to create mutual understanding. It is the sum of all things one person does
in order to create understanding in the minds of others.
“Communication is an intercourse by words, letters, symbols or messages, and is a way that
one organisation member shares meaning and understanding with another”. – Koontz and O’ Donnell
“Communication is a process by which people create and share information with one another
in order to reach common understanding”. – Rogers
“Communication is the transfer of information from the sender to the receiver with the
information being understood by the receiver”. – Koontz and Weihrich
Importance of communication:
Acts as a basis of coordination: An organisation has many departments, divisions,
sub-divisions, etc., and in order to coordinate the activities of all the departments, communication is
essential. Communication helps in the coordination of various activities and provides for the exchange
of information, ideas, facts, etc.
Helps in smooth working of an enterprise: Communication is the basis of the existence of an
organisation from its birth. Communication is necessary for the smooth working of an organisation.
Any new change in the organisation can also be introduced easily with the help of communication. All
the organisational interactions are dependent on communication and if communication stops, all the
organised actions will come to an end.
Acts as a basis of decision making: Communication provides the managers with information
and ideas for sound planning and decision making. It enables a manager to analyse the problems and
gather information for making sound decisions. Through communication, decisions can be passed to
those who are involved in executing them.
Increases managerial efficiency: For quick and effective performance of managerial
functions, communication is essential. Managers convey goals, instructions, allocate jobs and

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
responsibilities and evaluate performances with the help of communication. Thus, because of
communication the entire organisation is lubricated and works with full efficiency.
Promotes cooperation and industrial peace: Cooperation and industrial peace are promoted
because of communication by developing understanding between superiors and subordinates. Any
misunderstanding or misconception can be easily removed with communication. As communication is
a two-way process, an atmosphere of trust and understanding is maintained in the organisation.
Establishes effective leadership: Effective communication is needed for guiding, inspiring
and motivating employees in an organisation. Leaders need to communicate their ideas, thoughts,
suggestions, etc., and this can be possible only when there is an effective communication system in an
organisation. Communication is also needed to know the feelings, responses, problems, grievances
and suggestions of the followers.
Boosts morale and provides motivation:Motivation and morale of the employees largely
depend on the effectiveness of the communication system. Communication helps in keeping the
employees informed about plans, policies, procedures, etc., and with such information, employees get
a sense of belongingness. Good communication develops the confidence and trust of workers and
enables leaders to motivate, influence and satisfy their subordinates.
Helps in training and development: Communication plays a vital role in the training and
development of employees at every level of management. The degree of learning in a training depends
not only on the contents of the training and development programme but also on how the knowledge
and skills are being transmitted.
Helps to maintain public relations: An organisation has to deal with both the internal and
external world, which includes customers, investors, trade unions, government, etc. Organisations are
required to maintain healthy and cordial relations with everyone. It must always strive to convince the
public that its actions are in the interests of society.
Elements of Communication
Communication is an entire process. It also has its elements which are listed below with explanations:
Senders: Sender means a person who initiates the communication and conveys its ideas to the
receiver. It is the source of the process.
Message: The content, ideas, emotions, suggestions, order all fall under this element of
communication.
Encoding: The method to convert the message into communication syllables like picture,
word, gestures, etc.
Media: The trail along which the encoded message is transmitted to the receiver. The channel
could be written, face-to-face, calls or any suitable manner.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
 Decoding: The opposite of the encoding process, the conversion of the encoded syllables is
done by the receiver.
Receiver: The last person in the chain who finally receives the message from the sender and
takes an action as per requirement.
Feedback: It cumulatively involves all the actions of the receiver indicating that he received
and understood the message by senders.
Noise: The obstruction or hindrance in the entire process in the communication. This
hindrance might be caused by the sender, receiver or the message.
The whole communication process is more efficiently explained by the following flow chart:
COMMUNICATION PROCESS

Noise: The hindrance can be caused by various factors in the communication process. Few
examples are as listed below:
1. Ambiguous symbols causing a fault in code
2. An inattentive receiver
3. Poor connection over phones
4. Fault during decoding

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
5. Prejudices obstruct the poor understanding
6. Gestures and postures might lead to confusion

Process of Communication: Step-Wise Explanation

Step 1: Formulate the message:
Sender sends the message initiating the process by sudden impulse
Step 2: Encoding of the message:
Every human language can be considered as a code. All we need is a code to communicate with the
receiver.
Step 3: Choosing the medium of transmission:
The next step will be choosing the method via transmission that needs to be carried out whether it’s
over-call, face to face, e-mails, or letter as suitable.
Step 4: Decoding the message:
The prime focus is that the receiver understands the message as sent by the sender’s side. Any fault
may result in hindrance.
Step 5: Successful receiving:
The message is successfully received and understood.
Step 6: Feedback:
As soon as the receiver receives the message and understands it, an expected action is needed to be
taken. And the sender is to be informed by the receiver regarding something similar, it is called
feedback.

Characteristics of Communication
Completeness
Effective communications are complete, i.e. the receiver gets all the information he needs to process the message
and take action. A complete message reduces the need for follow-up questions and smoothens the communication
process.
Conciseness
Conciseness is about keeping your message to a point. This is more about the content of your message rather than
its length. Even a short memo can include irrelevant or redundant information.
Conciseness helps the receiver focus on what’s important, speeds up the processing of information and caters for
improved understanding.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
Consideration
Effective communication takes into account the receiver’s background and points of view. If your message hits a
nerve or sounds as disrespectful, the emotional reaction of the receiver might affect the perception of your message.
Also, tailoring your message to your audience – e.g. by using argumentations and examples which are relevant to
their experience – makes it easier for them to process the contents.
Concreteness
A concrete message is specific, tangible, vivid. It’s supported by facts and figures for enhanced credibility. It helps
your audience gain an overview of the broader picture. Concreteness mitigates the risk of misunderstanding, fosters
trust and encourages constructive criticism.
Courtesy
Courtesy and consideration complement each other in effective communications. Courtesy means respecting the
receiver’s culture, values and beliefs – i.e. crafting a message that is genuinely polite and unbiased.
Clearness
The clearer your message, the easier it gets for the receiver to decode it according to your original intent. While this
sounds obvious, most communication pitfalls originate from lack of clarity. Want to deliver an effective message?
Start with a clear communication goal and accurate thoughts. Clear communications build on exact terminology and
concrete words, to reduce ambiguities and confusion in the communication process.
Correctness
Correct grammar and syntax vouch for increased effectiveness and credibility of your message. Formal errors might
affect the clarity of your message, trigger ambiguity and raise doubts. They might also have a negative impact on
the overall perception of the message, which could be seen as sloppy or negligent.
TYPES OF COMMUNICATION : FORMAL, INFORMAL, INTERPERSONAL(VERBAL),
NON-VERBAL
COMMUNICATION
Communication can be characterized as Formal, Informal, Inter-personal and Non-verbal communication:
1. Formal Communication
Formal communication means the communication which travels through the formally established channels. In
other words, communication which travels through the formal chain of command or lines of hierarchy of authority
is called the formal communication. Under it, information is given through the formally designed channel or
network. It is designed, controlled and regulated by the management.
Advantages of Formal Communication
 It helps in the fixation of responsibility and accountability.
 It helps in maintaining the lines of authority in the organization.
 It helps in maintaining discipline.
 It ensures orderly flow of communication.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
Disadvantages of Formal Communication
 It lacks personal contacts and relationship.
 It is time consuming. It takes much time to communicate.
 It creates a bottleneck in the flow of information because almost all information is channeled through
a single executive.
 It obstructs free, smooth and accurate circulation of information in an organization.
Formal communication can be Horizontal, Vertical and Diagonal.
i. Horizontal Communication
When communication takes place between two or more persons of the same level or position of the same
department or other departments of the organization, it is known as horizontal communication. When the finance
manager communicates with the marketing manager concerning advertising expenditures, the flow of
communication is horizontal. The objective of horizontal communication is to coordinate the efforts of different
departments or persons.
Advantages of Horizontal Communication
 Coordinating in nature.
 Frequently informal and therefore simpler than vertical communication.
 Reassuring to those in charge of implementing department policy, since it provides them with the
 opportunity of checking with each other and comparing notes.
 Expedient in terms of communication time.
Disadvantages of Horizontal Communication
The major disadvantages of horizontal communication are listed as below:
 Department chiefs may remain uninformed about what their division heads are thinking.
 It can have a disuniting effect by fostering clique i.e. grouping among personal at the same levels of
authority.
 It can distort the purpose of a department policy, and even render it inoperative by allowing too much
discussion about it.
 It may actually increase misunderstanding among division heads by permitting informal (verbal)
alterations of formal communications.
ii. Vertical Communication
The communication in which information is either transmitted from top to the bottom or from bottom to the top in
structural hierarchy is a vertical communication. In this way, vertical communication may be of two types as:
a) Downward Communication
When messages are transmitted from superiors to subordinates along with the chain of command, it is said to be
downward communication. It refers to the transmission of information from superior to subordinates. The most
common downward communications are job instruction, official memos, policy statements, procedures, manuals
and company publications.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
b) Upward Communication
When messages are transmitted from bottom to top of the organizational hierarchy, it is said to be upward
communication. This provides feedback on the extent of effectiveness of downward communication. It is also a
means of informing the management about the viewpoints, reactions, feelings and state of employee morale. Widely
used upward communication devices include suggestion boxes, group meetings, report to supervisors and appeal or
grievance procedures. Usually upward communication is utilized in democratic and participative management.
Effective upward communication channels are important because they provide employees with opportunities to
have a say.
Advantages of Vertical Communication
o It is authoritative and official.
o It is binding to all parties involved.
o It is the most legitimate type of communication.
Disadvantages of Vertical Communication
The major disadvantages of vertical communication are listed as below:
o It is formal and informal.
o It is usually slow-moving, since it must be channeled through several levels of authority.
o It may conceal the true motives behind the formal message it carries.
iii. Diagonal Communication
Diagonal communication cuts across departmental lines. Such communication is in between people who are neither
in the same department nor on the same level of organizational structure. In other words, it refers to interchange of
messages between the managers and employees who are neither in the same department nor on the same level of
organizational structure. Diagonal communication refers to communication between managers and workers located
in different functional divisions. Although both vertical and horizontal communication continue to be important,
these terms no longer adequately capture communication needs and flows in most modern organizations. The
concept of diagonal communication was introduced to capture the new communication challenges associated with
new organizational forms, such as matrix and project based organizations.
Advantages of Diagonal Communication
 It is the most direct method of communication.
 It is the most selective method of communication.
 It is one of the fastest methods of communication.
 In critical situations, it would seem to be the most essential and logical type of communication.
Disadvantages of Diagonal Communication
 It can destroy lines of authority and formal chains of command.
 It can leave immediate superiors uninformed of what their subordinates are doing.
 It can lead to conflicting orders so it may lead to further confusion.
 It is usually verbal and thus is untraceable if things go wrong.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
2. Informal Communication
Informal communication refers to the communication which takes place on the basis of informal relations between
the members of a group. It is personal communication in nature and not a positional communication. It does not
flow along with the formal lines of authority or formal chain of command. Even it is not regulated by the formal
rules and procedures. Normally, members of informal group use this form of communication in order to share their
ideas, views, opinions and other information. There is lack of official instruction for communication. It is not
controlled and designed by formal organizational structure. So, it is not used to communicate formal message.
Advantages of Informal Communication
 It is more flexible.
 It helps to improve decision-making.
 Informal communication is faster in speed than formal communication.
 It works as a powerful and effective tool of communication.
 It may provide feedback to managers on their actions and decisions.
Disadvantages of Informal Communication
 It is difficult to fix responsibility for the information.
 It may cause misunderstanding.
 It carries inaccurate, half-truth or distorted information.
 It is difficult to believe on information.
 It leads to leakage of secret information.
3. Inter-personal Communication (Verbal Communication)
Inter-personal communication is the sharing of information between two or more people face-to-face through any
other direct channel. Since communicating parties get face-to-face, so it is two-way communication. Very simply,
manager or supervisors give direction and guidance to their subordinates in their presence is the common example
of inter-personal communication. Inter-personal communication can be oral or written.
i) Oral Communication
When message is expressed through the words of mouth or spoken words, it is said to be oral communication. It
may take place either through face-to-face conversation or through any electronic mode such as telephone, cellular
phone, intercom etc. In oral communication, source of message i.e. sender gives the information through oral means
i.e. by speaking. This means of communication is more reliable because sender can get feedback quickly.
Advantages of Oral Communication
 It is quicker and saves in time.
 It establishes a personal touch and leads to better understanding.
 It is economical or less expensive as compared to written communication.
 It is flexible and the messages can be changed to suit the needs and response of the receiver.
Disadvantages of Oral Communication
 It has the tendency of being distorted.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
  It is less reliable.
 It provides no record for future reference.
 It does not provide sufficient time for thinking before conveying the message.
ii. Written Communication
When message is expressed through written words, it is known as written communication. It may be expressed even
through groups, charts, diagrams, pictures with or without words. In this form of communication, information is
shared to the receiver by writing or drawing. It is the formal means of communication. Normally, information that
should be kept for long time for future reference, are transmitted by means of written communication.
Advantages of Written Communication
 It tends to be complete, clear, precise and correct.
 It tends to reduce misunderstanding, conflicts and disputes.
 It ensures transmission of information in uniform manager, i.e. everyone concerned has the same
information.
 It ensures little risk of unauthorized alternation in the messages.
 It is taken as a legal evidence by the courts.
Disadvantages of Written Communication
 It is time consuming.
 It is expensive.
 It may be interpreted in a different manner by different people.
 It tends to ineffective and unimpressive in case of poor drafting.
 It fails to provide feedback immediately.
4. Non-Verbal Communication
Communication through postures or gestures of body parts is known as the gestural or non-gestural or non-verbal
communication. It is a mode of communication in which anything other than words may be used to transmit
message from one person to another. In other words, the communication of information by means of facial
expression, body movement, physical contact, gestures, etc. is called non-verbal communication. It is the
communication in which neither written nor oral means are used. It is often used to encourage the subordinates like
shaking hands, blinking eyes, smiling, clapping etc. It is most powerful means of communication. Good managers
always use this type of communication frequently whenever necessary.
Grapevine communication
Grapevine communication is a form of informal communications in business that develops within an organisation.
Large organisations, where there are many people who are working closely, create certain unofficial or informal
communication [Link] channels exist with or without authorised patronage. Even though they are secretly
and officially patronised, they are not reliable. This kind of communication is usually known as “ Grapevine ”
communication.
Types of Grapevine Communication

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
1. Single Strand Chain
2. Gossip Chain
3. Probability Chain
4. Cluster Chain
There are 4 types of grapevine communication are:
Single Strand Chain
It can seep from person to person in a strictly linear fashion. The information takes time to spread in this fashion.
Gossip Chain
In some circumstances, a person goes around communicating the information or message he or she thinks which he
or she has obtained.
Probability Chain
The listeners are a selected few only. In some other condition, a person communicates information without any
constraint to all those with whom he comes into contact. This is termed as Probability Chain and the message or
information passed on may be interesting but not essential.
Cluster Chain
In yet another condition, one individual communicates to a few selected associates who in turn communicate the
same to yet another group.
Advantages of Grapevine Communication
 It gives mental satisfaction to the participants and gradually reduces emotional outbursts and
reactions.
 It provides informal feedback on the changes contemplated by the management.
 Grapevine communication brings about a strong bond among peer groups.
 It keeps the employees anticipating and acts as a buffer against Shockwaves.
 It develops because of the involvement of the persons connected with an organisation.
 It is fast and can supplement formal channels.
Disadvantages of Grapevine Communication
 It may provoke sudden unexpected and unwanted reactions from emotionally unstable persons.
 Grapevine, is definitely dangerous to the organisation health if permissible to grow without
monitoring.
 Industries and Business houses adopt one or several of these strategies to keep grapevine under
reasonable control so that it does not degenerate into a rumour mill and promote unwanted gossip
sessions among the staffs.
 It has the potential to spread irrelevant gossip.
 A transparent administration policy, interaction sessions, employee-friendly attitude, parties, fruitful
meetings of peer group, and outings where all those linked with the organisation participate are few
strategies to monitor grapevine and use it to the benefit for the organisation.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
  It may result in personal vilification and character assassination of persons.
 Grapevine channels can be moderated but not eradicated.
 Grapevine channel exaggerates or distorts the message content.
Barriers To Effective Communication
The process of communication has multiple barriers. The intended communique will often be
disturbed and distorted leading to a condition of misunderstanding and failure of communication.
The Barriers to effective communication could be of many types like linguistic, psychological,
emotional, physical, and cultural etc. We will see all of these types in detail below.
Linguistic Barriers
The language barrier is one of the main barriers that limit effective communication. Language
is the most commonly employed tool of communication. The fact that each major region has its own
language is one of the Barriers to effective communication. Sometimes even a thick dialect may
render the communication ineffective.
As per some estimates, the dialects of every two regions changes within a few kilometers.
Even in the same workplace, different employees will have different linguistic skills. As a result, the
communication channels that span across the organization would be affected by this.
Thus keeping this barrier in mind, different considerations have to be made for different
employees. Some of them are very proficient in a certain language and others will be ok with these
languages.
Psychological Barriers
There are various mental and psychological issues that may be barriers to effective
communication. Some people have stage fear, speech disorders, phobia, depression etc. All of these
conditions are very difficult to manage sometimes and will most certainly limit the ease of
communication.
Emotional Barriers
The emotional IQ of a person determines the ease and comfort with which they can
communicate. A person who is emotionally mature will be able to communicate effectively. On the
other hand, people who let their emotions take over will face certain difficulties.
A perfect mixture of emotions and facts is necessary for effective communication. Emotions
like anger, frustration, humour, can blur the decision-making capacities of a person and thus limit the
effectiveness of their communication.
Physical Barriers to Communication
They are the most obvious barriers to effective communication. These barriers are mostly
easily removable in principle at least. They include barriers like noise, closed doors, faulty equipment

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
used for communication, closed cabins, etc. Sometimes, in a large office, the physical separation
between various employees combined with faulty equipment may result in severe barriers to effective
communication.
Cultural Barriers of Communication
As the world is getting more and more globalized, any large office may have people from
several parts of the world. Different cultures have a different meaning for several basic values of
society. Dressing, Religions or lack of them, food, drinks, pets, and the general behaviour will change
drastically from one culture to another.
Hence it is a must that we must take these different cultures into account while communicating.
This is what we call being culturally appropriate. In many multinational companies, special courses
are offered at the orientation stages that let people know about other cultures and how to be courteous
and tolerant of others.
Organisational Structure Barriers
As we saw there are many methods of communication at an organizational level. Each of these
methods has its own problems and constraints that may become barriers to effective communication.
Most of these barriers arise because of misinformation or lack of appropriate transparency available to
the employees.
Attitude Barriers
Certain people like to be left alone. They are the introverts or just people who are not very
social. Others like to be social or sometimes extra clingy! Both these cases could become a barrier to
communication. Some people have attitude issues, like huge ego and inconsiderate behaviours.
These employees can cause severe strains in the communication channels that they are present
in. Certain personality traits like shyness, anger, social anxiety may be removable through courses and
proper training. However, problems like egocentric behaviour and selfishness may not be correctable.
Perception Barriers
Different people perceive the same things differently. This is a fact which we must consider
during the communication process. Knowledge of the perception levels of the audience is crucial to
effective communication. All the messages or communique must be easy and clear. There shouldn’t be
any room for a diversified interpretational set.
Physiological Barriers
Certain disorders or diseases or other limitations could also prevent effective communication
between the various channels of an organization. The shrillness of voice, dyslexia, etc are some
examples of physiological barriers to effective communication. However, these are not crucial
because they can easily be compensated and removed.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407
Technological Barriers & Socio-religious Barriers
Other barriers include the technological barriers. The technology is developing fast and as a
result, it becomes difficult to keep up with the newest developments. Hence sometimes the
technological advance may become a barrier. In addition to this, the cost of technology is sometimes
very high.
Most of the organizations will not be able to afford decent tech for the purpose of
communication. Hence, this becomes a very crucial barrier. Other barriers are socio-religious barriers.
In a patriarchal society, a woman or a transgender may face many difficulties and barriers while
communicating.

Prepared by Ms. Vasuki Rajendran, Asst. Professor, Department of BBA, SoM, KPRCAS, CBE-641407