CAIIB Human Resources Management Module B Unit 3 : Communication

19/04/2024

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CAIIB Human Resources Management Module B Unit 3 : Communication (New Syllabus)

IIBF has released the New Syllabus Exam Pattern for CAIIB Exam 2023. Following the format of the current exam, CAIIB 2023 will have now four papers. The CAIIB Rural Banking includes an important topic called “ Communication ”. Every candidate who are appearing for the CAIIB Certification Examination 2024 must understand each unit included in the syllabus.

In this article, we are going to cover all the necessary details of CAIIB Human Resources Management Module B Unit 3 : Communication , Aspirants must go through this article to better understand the topic, Communication and practice using our Online Mock Test Series to strengthen their knowledge of Communication. Unit 3 : Communication

Organisational Communication

Organisational communication as an academic discipline embraces the study of symbols, messages, media, interactions, relationships, networks, persuasive campaigns, and broader discourses within an organization
Organisational communication could also be used as a general term to cover public relations, public affairs, investor relations, labour market communication, corporate advertising, environmental communication and internal communication. Organisational communication traditionally comprises a number of subject fields such as media and communication science, organisational psychology, sociology of organisations, linguistics and business administration.
In the early 1990s Peter Senge developed new theories on Organisational Communication. These theories are “learning organisation” and “systems thinking”.

Communication Approaches in an Organisation

Organisational communication can also be classified according to its media, i.e., ‘Formal and Informal Communications’.
Formal Communications are those which are a part of the recognized communication system of the organisation. Staff meetings, Union-Management meetings, Branch Managers’ conferences, Performance review meetings, Customer needs are illustrative forums that facilitate formal communication.
Whereas, informal communications are those which take place inside and outside the organisations in an unstructured manner. These informal communications grow out of the social interactions among people who work together. Grapevine is a kind of informal communication in the organisations.
‘Upward communication & Downward communication’ is yet another classification.
Upward communication, which essentially relates to organisations, originates from a subordinate to his superior in the form of complaint, grievance, suggestion or feedback. It moves upwards, i.e., from bottom to top levels in the hierarchy. Communication from branches to Regional offices, Regional offices to Zonal Offices and Zonal offices to Central office is also an illustration of upward communication.
Downward communication, which also called as ‘Top-down approach’ to communication, moves from top to bottom i.e., from superior to subordinate in organisations. Such communication takes in the form of instructions, guidelines, orders, corporate goals, etc.

Communication Patterns

The communication patterns that have been given by Harold J. Leavitt for four-and-five member group are circle, chain, wheel, Y, and network.

Circle Pattern- in circle pattern there is a leader and all group member are in a hierarchy. The leader can communicate with the group member who presents net to him/her. The leader can not talk to the members who are lowest in the hierarchy.
Chain pattern – chain pattern appears like a circle pattern it also follows few chains of command. In this pattern last person receives the message from the leader. It is a one-way flow communication.
Y Pattern – the group is separated into three and the group members can communicate with the leader only. This pattern is little complicated as three different groups are situated into one single group. According to Levitt these three groups are controlled by a single leader. There are three members in each subgroup.
Wheel pattern- in this pattern team leader stands in the middle and all other members stand at the same level of the structure. This pattern is one of the best patterns while comparing to the other three. Here all member can communicate with the leader directly

Direction of Communication

Formal communication as they occur in traditional military organisations, include messages which have a “one-way” directional characteristic. In the military organisation, the formal communication proceeds from superior to subordinate, and its content is presumably clear because it originates at a higher level of expertise and experience.

On the basis of a number of experiments, Leavitt formed these conclusions:

One-way communication is faster than two-way communication.
Two-way communication is more accurate than one-way communication.
Receivers are more sure of themselves and make more correct judgments of how right or wrong they are in the two-way system.
The sender feels psychologically under attack in the two-way system, because his receivers pick up his mistakes and oversights and point them out to him.
The two-way method is relatively noisier and looks more disorderly. The one-way method, on the other hand, appears neat and efficient to an outside observer.

Thus, if speed is necessary and if a manager does not want his mistakes recognised, and if he wants to protect his power, then one-way communication seems preferable.

In contrast, if the manager wants to get his message across, or if he is concerned about his receivers’ feeling that they are participating and are making a contribution, the two-way system is better. In either event, communication depends on how it is perceived by the recipient.

In a two-way communication system, there is a chance to correct mis-perception if any. The mood of the recipient while receiving the communication may determine whether he will accept, understand, improve and also act as per the instructions.

Theories of Communication

Shannon and Weaver Model of Communication

This model is specially designed to develop the effective communication between sender and receiver. Also, they find factors which affect the communication process called “Noise”. At first, the model was developed to improve the Technical communication. Later, it is widely applied in the field of Communication. The model deals with various concepts like Information source, transmitter, noise, channel, message, receiver, channel, information destination, encode and decode.

Fayol’s thoughts on organisational Communication

Henri Fayol explains his theory by using 4 sets of principles. These sets of principles explain the following:

How an organization should be structured.
How mangers should handle their power.
How employees are rewarded.
Employee’s attitudes.

Chester Barnard‘s thoughts on organisational communication

Chester Barnard identified communication as an important management activity, and examined its elements and issues.

The channels of communication should be definitely known.
There should be a definite formal channel of communication to every member of an organization.
The line of communication should be as direct and short as possible.
The complete formal line of communication should normally be used.
The persons serving as communication centers should be competent.
The line of communication should not be interrupted while the organization is functioning.
Every communication should be authenticated.

Types of Communication

Interpersonal Communication

Another facet of communication in the organisation is the process of face-to-face, interpersonal communication, between individuals. Such communication may take several forms.
Messages may be verbal (that is, expressed in words), or they may not involve words at all but consist of gestures, facial expressions, and certain postures (“body language”).
Nonverbal messages may even stem from silence. Nonverbal content always accompanies the verbal content of messages. This is reasonably clear in the case of face-to-face communication.

Verbal and Non-verbal Communication

Most communication as we understand is verbal through the use of words, written, by way of mails and writing. But a more important form of communication is the non-formal one where body language plays a vital role.
However, we can also communicate without words. This kind of communication tells us something about the relationship between people. Often this is more important than getting the content of the message across. The communication about this non spoken communication, which tells us something about the relationship between people, is called Meta Communication.
To make the meaning of our words clear we use body language. Body language is a language without spoken words and is therefore called non-verbal communication.

Body Language

Research shows that 55% of communication is conveyed by the body language we use, i.e., use of eye contact, gestures and facial expressions. 38% is conveyed in the voice, by its quality, use of tone and inflections. Only 7% is conveyed in the words.

Formal And Informal Communication

The communication in which information flows through proper and pre-defined solutions is referred to as Formal Communication. It follows a hierarchical chain that is generally established by the organization itself. Some general examples of formal communication are reports, commands, orders.
Informal communication is multidimensional, it flows freely in the organization without any restraint of predefined channels or routes. It is comparatively very quick and relational. In organizations it is often called the ‘grapevine’. It is also important for the growth of a company because employees can discuss work-related issues more openly which ultimately saves the company’s time and money.

External And Internal Communication

Internal communication is information exchange within the organization. Messages can be exchanged via personal contact, telephone, e-mail, intranet (the website accessible only by employees) etc. In external communication the information exchange goes both within the organization and outside of it. Organizations communicate with the outside world on a daily basis. External communication can be formal and informal.

Modern Communication Issues

Lack of awareness/ignorance: Different people have different needs and expectations or may work in an environment that gives a different context to their message. This can be a country with different laws, currency, customs, holidays, time zone. It pays to be aware of who your audience is and possibly try to understand them before you start.
Lack of clarity in tone: Tone is important at any time, but especially in times of challenge or change. No matter what the circumstances, learn to pay attention to the tone of your message.
Disconnect between sender and receiver in Internet / Email communications: One of the studies found that although 50 percent of all online communication are misunderstood, senders believe that their message is being received clearly.
Not seeking feedback: We need to learn how to plan for and carry out the conflicting situations in disseminating communications especially modern means by providing clear and actionable feedback, even when it’s not the easiest path.
Speaking more and listening less: When you listen, you open yourself up to learning more about a given situation and gaining empathy for what is happening. One may even accomplish more when he/she balances speaking and listening especially by using modern gadgets.
Reacting instead of responding: When it’s your impulse to react with anger and frustration, just wait. Take a deep breath, engage your brain and consider all the facts (even those you may not know yet). When you pause to reflect, you respond instead of reacting.
Using communication as a weapon: This is especially true in the case of email where threatening or passive aggressive communication may go unanswered at the time of receipt but are sure to have a long term negative effect.
Underestimating your audience: Rather than avoiding the situation, enlist the skills at hand to help find solutions.

Barriers To Effective Communication

Communication overload is barrier in organisational communication. It occurs when the amount of information exceeds the capacity of individuals to absorb and process it. This is especially likely at higher echelons in organisations, where the amount of time spent in communication is greatest. When a unit starts approaching communication overload, it simply cancels the lowest-priority messages, which are not sent at all.
Badly expressed messages: Lack of clarity and precision in a message makes it badly expressed. It means the message suffers from omissions, inaccuracies, repetitions, ambiguities, lack of clarity. This makes communication process ineffective thus, consumes a great deal of time and money for subsequent clarifications.
Faulty Translations: Every manager receives various types of communications / decisions from his superiors. The superiors are known for their technical / specialized language. Hence, these messages may not be understood by those who have to implement these orders. As such, the message has to be put into words appropriate to the level of intelligence and capability of the receiver who has to implement and/or convey the same down the hierarchy.
Inattention: The pre-occupation of mind of the receiver and consequent non-listening is one of the major psychological barriers in the communication process. In such situations, the efforts of the communicator will fail. Hence, the communicator has to choose proper time to communicate and the receiver should be attentive so as to make the process effective.
Loss by transmission and poor retention: When the communication passes through various levels in the organisation, successive transmissions of the same message are increasingly inaccurate. It is said that in case of oral communications, about 30% of the material information is lost in each transmission. Even in written communications, the loss of meaning may occur as far as the appended interpretation, is concerned. Poor retention of the information is yet another problem being faced in the organisations.
Vague and un-clarified assumptions: While the purpose of the communication is to clearly direct the receiver as to what he is desired of him, if the message is vague and not clear and does not convey proper meaning and does not clarify the assumptions, then the receiver ends up in confusion as to what he has to do with such communication. Hence, the communications should be clear from all assumptions/doubts.
Emotional or psychological barriers: Emotional or psychological traits are the major barriers in inter-personal communications. The meaning ascribed in the communication depends upon the emotional or psychological status of both the sender and the receiver. The hostility between the parties leads to emotional barrier thereby however much effective communication it may be, the parties will view the same from their hostile attitude.

Dis-trust of communicator: This arises out of ill-conceived judgments or illogical decisions or frequent countermanding of the original communication by the communicator. Repeated experience of this type gradually reduces the employees’ interest in the communication resulting into inaction or delay in complying with such communications.
Noise: In the modern society, the noise is a big barrier for communication process. This noise may be on account of faulty instrument or media through which the communication is transmitted and/or the noise in the places of sender/receiver. If the noise is not controlled, it may not be possible for the receiver to listen anything or make out any sense of the message.
Personal factors: Since the organisations, especially those owned by Government, consists of people belong to different language groups, cultural and geographical backgrounds, etc., barriers do occur on the premise of language and culture. This apart, differences in hierarchical positions have their implications in terms of work structure, authority, status, self-esteem, ego states and reporting relationships. In such situations, people may have bias, fear, ego, etc., which act as barriers to the free flow of communication.
Un-conducive Organisational Climate: Apart from the above barriers, the prevailing organisational climate has its impact on effective communication. In case of a conducive climate which fosters openness and mutual trust among the employees, there would be free flow and frankness in communication process. In contrast, if the organisational climate is disturbed thereby not conducive for openness and trust, avoidable barriers in communications would emerge.

Communication & Customer Relations

In the context of communication and customer relations, there are three cardinal principles which require to be imbibed by any good business organisation. They are – Adequacy, Transparency and Consistency.
‘Adequacy’ implies that all relevant information is made available by the business and its management to its stakeholders facilitating them to have a fair assessment of the state of affairs of the organization.
‘Transparency’ relates to the degree of openness in the sense that no attempt is made to cover up or hood-wink the shareholders.
‘Consistency’ reflects the principle of oneness, i.e., speaking by all, who matters in the organisation from top to bottom, on the same wavelength with utmost consistency.
Business organisations cannot afford to ignore the customer expectations and their rights, viz., right of information, the right of choice and the right of accountability.

Steps for Effective Organisational Communication

Unless management comprehends and fully supports the premise that organisations must have high degrees of communications, the organisation will remain stilted. Too often, management learns the need for communication by having to respond to the lack of it.
Effective internal communications start with effective skills in communications, including basic skills in listening, speaking, questioning and sharing feedback. These can develop with some concerted review and practice. Perhaps the most important outcome from these skills is conveying that you value hearing from others and their hearing from you.
A key ingredient to developing effective communications in any organisation is each person taking responsibility to assert when they do not understand a communication or to suggest when and how someone could communicate more effectively.

Strategies to Support Effective Organisational Communication

Downward Communication

Ensure every employee receives a copy of the strategic plan, which includes the organisation’s mission, vision, values statement, strategic goals and strategies about how those goals will be reached.
Ensure every employee receives an employee handbook that contains all up-to-date personnel policies.
Develop a basic set of procedures for how routine tasks are conducted and include them in standard operating manual.
Ensure every employee has a copy of their job description and the organisation chart.
Regularly hold management meetings even if there is no formal agenda.
Hold full staff meetings every month to report how the organisation is doing, major accomplishments, concerns, announcements about staff, etc. Leaders and managers should have face-to-face contact with employees at least once a week.
Regularly hold meetings to celebrate major accomplishments. This helps employees perceive what is important, gives them a sense of direction and fulfillment, and lets them know that leadership is on top of thing.
Ensure all employees receive yearly performance reviews, including their goals for the year, updated job descriptions, accomplishments, areas of improvement, and plans to help the employee accomplish the improvements.

Upward Communication

Ensure all employees give regular status reports to their supervisors. Include a section for what they did last week, will do next week and any actions/issues to address.
Use management and staff meetings to solicit feedback. Act on feedback from others. Write it down. Get back to it—if only to say you can’t do anything about the reported problem or suggestion, etc.
Respect the “grapevine.” It is probably one of the most prevalent and reliable forms of communication. Major “movements” in the organisation usually first appear when employees feel it safe to venture their feelings or opinions to peers.

Cross-sectional Communication

Organisation has to encourage a cohesive and cordial communications with peer departments and cross-section of business verticals. For example, in order to ensure better customer service and timely delivery of goods and services, a better co-ordination and communication / interaction/relationships are paramount between Sales, Marketing and Dispatch departments, etc.
Such effective communication between the various departments will bring cohesiveness in business, better inter-personal relationships and ultimately results higher growth in business and profits.
The advent of ‘Call Centre’ initiatives by the banks is the best suited example to demonstrate cross-sectional communication channels being furthered by the banks. These call centres are the effective channels to facilitate quick and effective response to customers for resolution of their grievances with timeliness.

HR And Communication

From an HR viewpoint, effective organisational communication contributes to learning, teamwork, safety, innovation and quality of decision-making in organisations. In an age of increased competition for talent, communication has become a strategic tool for employee engagement, satisfaction and retention. Effective organisational communication contributes directly to employee and organisational learning, an essential factor for competitive advantage.
HR is expected to do a lot – establish or change culture, manage change big and small, develop leaders, engage employees – all major contributors to an organisation’s bottom line. Further, the new workforce tends to be communicated in a most-concise manner by avoiding long explanations. Therefore, HR has a great role in instilling effective communication suiting to the varied needs of the different generational employees in the organisation.

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CAIIB HRM Module B Unit 3 Communication (Ambitious_Baba)