BCom 1st Year Corporate Communication Question Answers

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BCom Corporate Communication Question Answers

Q. 1. What is meant by corporate communication? What are its types? Write a note on corporate communication.

Ans.

MEANING OF CORPORATE COMMUNICATION

Communication is an exchange of information, facts, ideas and opinions between two or more persons. A corporate organisation is a large organization. Thus, corporate communication means the channel and systems of communication adopted in a large organisation. In a corporate organisation, communication perform two important functions:

(i) It facilitates the exchange of information, facts, orders, instructions, suggestions, problems and grievances etc.

(ii) It helps in developing and maintain mutual relations and contacts.

Channels and forms of communication vary from organisation to organisation and from time-to-time.(BCom Corporate Communication Question Answers)

IMPORTANCE OF CORPORATE COMMUNICATION

Communication is an exchange of ideas, opinions and attitudes between two or more persons of an organisation. Its importance can be explained as follows:

1. It Helps in Planning: Communication helps in planning process at the age of forming of plans and at the stage of communication of plans.
2. It Helps in Decision Making: Planning provides necessary Information for decision-making. It helps in identifying real problem.
3. It Promotes Managerial Efficiency: Communication keeps people working in accordance with the plans and programs.
4. It Induces co-operation and understanding: Effective communication increases understanding of employees and encourages them for greater efforts.(BCom Corporate Communication Question Answers)
5. It is the Basis for Leadership Action: Two way communication is essential for maintaining man to man relationship in leadership.
6. It is an Effective Means of Co-ordination: Communication helps in securing desired co-ordination in operations.
7. It Provides Job Satisfaction: Communication can increase mutual trust and confidence. It provides job satisfaction to employees.

Q. 2. State the meaning, characteristics, advantages and disadvantages of formal communication.

Ans.

 MEANING AND DEFINITION OF FORMAL COMMUNICATION

Formal communication means a communication at official level in accordance with organisational structure. It follows formal chain of command. It is widely used by officers and managers to issue orders and instructions to their subordinates. It is used by subordinates also to communicate suggestions, requests and complaints to their officers and managers. Formal communication is generally written. It takes place where every employee is on a well defined position or status. Such communication is between two positions and not between two persons. According to Thill and Bove, “Formal communication is that flow of information which follows an official chain of command.”

Thus, formal communication is the communication which follows forma chain of command of the organisation.

CHARACTERISTICS OF FORMAL COMMUNICATION

1. Formal Relations: In formal communication, there exists formal relations between the sender and receiver. It is the communication between two positions and not between two persons.
2. Prescribed Path: Formal communication follows a certain prescribed path. If a worker wants to communicate some message to general manager, the path may be as follows:

Worker → Supervisor → Manager → General Manager

3. Formal Message: Formal communication is related with formal messages only. Personal messages are out of its jurisdiction.
4. Written and Oral: Generally, formal communication is written. However, it may be oral also.

MEDIA OR CHANNELS OF FORMAL COMMUNICATION

1. Written Media: Order, notice, letter, report, handbooks, memorandum, policy statement, requests etc.
2. Oral Media: Statement, meeting, seminar, conference etc.

ADVANTAGES OF FORMAL COMMUNICATION

1. Clear and Effective: In formal communication, flow of orders, instructions, suggestions etc. is very much specific, clear and definite. There is no ambiguity in this regard. It helps in carrying out effective communication.
2. Maintenance of Authority: Formal communication helps in maintaining the authority of executives. They can easily maintain their official relations.
3. Helpful in the Determination of Responsibility: Formal communication helps in determining the responsibility of both the sender and receiver
4. Helpful in Controlling: Formal communication helps in the collection of information regarding the performance and problems of workers. It helps in controlling.(BCom Corporate Communication Question Answers)
5. Unity of Command and Direction: Formal communication helps in maintaining unity of command and direction. Executives may exercise full control over their subordinates.

DISADVANTAGES OF FORMAL COMMUNICATION

1. Delay in Communication: Formal communication follows a formal pre-determined path. It takes more time to communicate the message.
2. Distortion of Message: Formal communication passes through many hands. It increases the possibility of leakage and distortion of message.
3. Formal Relations: Formal communication is based on formal relations. It lacks personal contacts and relations.

Q. 3. State the meaning, characteristics, advantages, and disadvantages of informal communication?

Ans.

MEANING AND DEFINITION OF INFORMAL COMMUNICATION

Informal communication (Known as grape-wine communication also) means the communication which is adopted at personal level. It does not follow the formal chain of command or organisational structure. It is based upon mutual relations. It is generally direct and oral. Messages pass from one person to another in informal manner. It takes place where there are informal relations between sender and receiver. It is based on many factors like personal and social relations, religion, area, caste, customs, sentiments etc. It has been defined by Thill and Bovce as, “Informal communication network carries information along the organisation’s unofficial lines of activity and power.”

Thus, informal communication is based on informal relations. It is free from all formalities.

CHARACTERISTICS OF INFORMAL COMMUNICATION

1. Based on Informal Relations: Informal communication is based on mutual relations and personal contacts. It does not follow the formal and official chain of relations.(BCom Corporate Communication Question Answers)
2. Direct Communication: It is a system of direct communication without any formality.(BCom Corporate Communication Question Answers)
3. No Formal Chain of Command: This system of communication does not follow formal chain of command and organisational structure.
4. It is used between the officers and employees of equal rank.

ADVANTAGES OF INFORMAL COMMUNICATION

1. Quick and Easy Process: Informal communication is the easiest and simplest way of communication. It does not follow formal chain of command and it takes almost no time.(BCom Corporate Communication Question Answers)
2. Economic: This method is most economical because it costs nothing to the organisation.(BCom Corporate Communication Question Answers)
3. A Supplement to Formal Communication: Messages which cannot be communicated through formal communication can easily be communicated through this process.
4. Quick Feedback: Under this system, feedback of message is available on the spot. Thus, it provides quick feedback.
5. Mutual Co-operation: Since informal communication is based on personal and informal relations, it promotes mutual co-operation and friendship.

DISADVANTAGES OF INFORMAL COMMUNICATION

1. Unorganised Communication: Informal communication is totally unorganised. It does not follow any system or structure. It gives rise to the possibility of change of message.
2. Lack of Reliability: Informal communication lacks reliability. Receiver of such message is always doubtful about its truth.
3. Possibility of Rumors: Informal communication gives rise to the possibility of rumors.(BCom Corporate Communication Question Answers)
4. Difficulty in Determining Responsibility: Since there is no formal chain of communication, it is very difficult to determine the responsibility of sender or receiver or both.(BCom Corporate Communication Question Answers)

Q. 4. Explain the meaning, types and importance of grapevine communication.

or, What is grapevine communication? What are its types? How far is it reliable and effective?

Ans.

MEANING AND DEFINITION OF GRAPEVINE COMMUNICATION

Grapevine means an informal system of communication. It has no beginning or end. It is forms of horizontal communication in which people, working at same level, communicate with each other. It may or may not be true. It is just like fog in which information flow in grapevine. It has been defined as under:

“Grapevine is a horizontal communication channel which is related to those persons who are associated with informal communication system.” -Louis A. Allen.

“Grapevine a basically a channel of horizontal communication for it is only people working at the same level of hierarchy who can informally communicate with one another with perfect ease.” -Keith Davis.

Thus, grapevine is informal communication which has no beginning or end and is not based on any rule or formal path.

TYPES OF GRAPEVINE CHAIN

Prof. Keith Davis identified four types of grapevine chains as under:

1. Single Stand Chain: In this form, communication flows in a straight line, i.e., A tells something to B, B tells it to C, C to D and so on. Thus, communication flows from top to bottom.(Corporate Communication Question Answers)
2. Gossip Chain: In this form of grapevine, message is passed on a non-selective basis. It spreads from one source but it is difficult to determine this source.(BCom Corporate Communication Question Answers)
3. Probability Chain: In this form of communication, one person passes the information to a number of persons randomly. He does so without any interest in any person.(BCom Corporate Communication Question Answers)
4. Cluster Chain: In this form of grapevine, information is communicated to selected individuals, i.e., on whom the sender has faith. They also pass it further to those on whom they have faith.

IMPORTANCE OF GRAPEVINE COMMUNICATION

1. Supplement to Formal Communication: Grapevine does what forma communication fails to do. Since it is informal, it is very popular. It is always there, even in formal organisations.
2. Quick and Simple: Grapevine is the quickest form of communication. Under this form, communication spreads like wild fire.
3. Psychological Satisfaction: Grapevine provides psychology satisfaction to both, the sender and receiver. It supports the emotions subordinates. It confirms the policies and decisions of management.
4. Organisational Co-ordination and Solidarity: Grapevine promotes mutual co-operation, co-ordination and solidarity among employees. It promotes mutual dependence and faith.

LIMITATIONS OF GRAPEVINE

1. Unorganised Communication: Grapevine is totally unorganised and unsystemic. It does not follow any rule or procedure.
2. Possibility of Rumors: Grapevine causes rumors. It creates confusion and lack of confidence. Sometimes it creates a problem before management.
3. Against Organisational Frame: Grapevine does not follow organisational hierarchy. It disturbs organisational relations. Sometimes it creates a problem in management or administration.

HOW TO MAKE GRAPEVINE EFFECTIVE?

Grapevine is a channel of informal communication. It is a natural phenomenon of every organisation, large or small. It can never be stopped. Therefore, the need is that it should be used in the interest of organisation by adopting following measures:

1. To Promote Grapevine Through Leader: A leader in grapevine should be spotted and taken into confidence. It can help in stopping the rumors and to spread the news in which management is interested.
2. Clarification of Rumors: If at any stage, there is any rumor which may be against the interest of organisation, it should immediately be stopped through official clarification.(BCom Corporate Communication Question Answers)
3. Participative Management: Management should be participative so that concerned employees may take part in decision making process. It will minimise the possibility of rumors and misunderstanding.
4. Moral Persuasion: Employees should be convinced that work is of paramount importance not only for the organisation but for themselves also. Therefore, no personal feeling should come in the way.
5. Informal Get-Together: The best way of making grapevine effective is to arrange informal get-together at different times. Workers may be invited to have a cup of tea with management. It promotes mutual understanding between the two.(BCom Corporate Communication Question Answers)

Q. 5. Explain the meaning, ‘merits and demerits’ of downward communication.

or, Write a note on downward communication.

Ans.

MEANING OF DOWNWARD COMMUNICATION

When a message flows from higher authorities to subordinates, it is called downward communication. It flows downwards in the line of authority from superiors to subordinates. Usually, it includes orders, directives and instructions.

FORMS OF DOWNWARD COMMUNICATION

1. Written: Orders, instructions, programs, newsletters, bulletins, manuals etc. are in the written form.(BCom Corporate Communication Question Answers)
2. Oral: Meetings, seminars, workshops, discussions etc. are in the oral form.

Messages Covered in Downward Communication

1. Orders, instructions and guidelines issued by managers to their subordinates.
2. Enquiries from subordinates about their performance.
3. Information regarding organisational policies, rules, procedures, programs and goals.(BCom Corporate Communication Question Answers)
4. Information regarding progress and failures of organisation.

MERITS OF DOWNWARD COMMUNICATION

1. Explanation of Organisational Goals, Plans and Policies: Downward communication helps in explaining organisational goals, plans and policies to subordinates. It makes them clear: What to do, what not to do, why to do, how to do, etc.(BCom Corporate Communication Question Answers)
2. Helpful in Planning: Downward communication helps subordinates in understanding their duties and following the directions and orders of top management.(BCom Corporate Communication Question Answers)
3. Helpful in Controlling: Downward communication is an important tool to control the activities of subordinates. It helps in the collection of data about the performance of subordinates. This data is compared with their target and deviations are established. Efforts are made to correct these deviations.

DEMERITS OF DOWNWARD COMMUNICATION

1. Delay in Communication: In downward communication, path of communication is very long. As a result, transmission of message takes long time. Sometimes basic purpose of message is lost.
2. Loss of Information: In downward communication, a message passes through various levels. It gives rise to the loss of information at every stage of transmission. Sometimes the message reaches the bottom level in distorted shape.(BCom Corporate Communication Question Answers)
3. Non-Participative Communication: Downward communication is non-participative. It requires them to follow the orders and instructions but not to take part in communication.

Q. 6. Explain the meaning, merits and demerits of upward communication.

or, What is meant by upward communication? What are its advantages and disadvantages?

Ans.  

MEANING OF UPWARD COMMUNICATION

Upward communication is a form of communication in which information flows from bottom to top. It flows upward in the line of authority from subordinates to superiors. This form is usually used to communicate the problems, grievances, suggestions and reactions of workers to managers.

Formal of Upward Communication

1. Written: Progress reports, organisational problems and suggestions are generally in the written form.
2. Oral: Grievances and discussions are generally in the oral form.

Messages Covered in Upward Communication

1. Progress of work performed by workers.
2. Difficulties faced by workers in their work.
3. Problems faced by workers either at organisational level or at personal level.
4. Clarifications seeked by workers regarding their performance.
5. Objections raised by workers against the policies and programmes of management.(BCom Corporate Communication Question Answers)

MERITS OF UPWARD COMMUNICATION

1. A Tool of Feedback: Upward communication is an important tool in hands of management to get feedback from workers. Workers may convey their complaints, grievances, problems and suggestions to management through upward communication.(BCom Corporate Communication Question Answers)
2. Helpful in Formulating Plans and Policies: Upward communication conveys the suggestions and feelings of workers to management. Some of their suggestions are very constructive. It helps in the formulation of future plans and policies.(BCom Corporate Communication Question Answers)
3. Greater Harmony and Co-operation: Upward communication creates congenial atmosphere in the organisation. It develops better understanding between managers and workers. It promotes greater harmony, co-operation and co-ordination.(BCom Corporate Communication Question Answers)
4. Helpful in Improving Results: Upward communication creates an atmosphere in the organisation which paves the way for higher production and productivity. It helps in improving overall performance of employees.

DEMERITS OF UPWARD COMMUNICATION

1. Lengthy and Complex Process: Upward communication makes the process quite lengthy and complex. Workers cannot dare to speak to top management. Therefore, they speak to their immediate boss and so on. It makes a communication process very lengthy and complex.
2. Presence of Communication Barriers: In upward communication, there is every possibility of message getting distorted. Workers may furnish wrong information to management.
3. Possibility of Bitter Relations: Managers do not like to listen the complaints from workers. If workers try to put their problems and grievances, managers may become angry and it may cause bitter relations between the two.

Q. 7. Explain the meaning, merits and demerits of horizontal or lateral communication.

Ans.

MEANING OF HORIZONTAL COMMUNICATION

Horizontal communication is the form of communication in which messages flow horizontally from one department to another. This is a communication between two or more person working at the same level of organisational structure. If there is high degree of interdependence among different departments and if the business requires co-ordinated efforts of all departments, horizontal communication becomes necessary.

MERITS OF HORIZONTAL COMMUNICATION

1. Fast and Economical: Horizontal communication is very fast and economical. Since it is between the persons of equal ranks, it takes no time and involves no expenditure. (BCom Corporate Communication Question Answers)
2. Promotes Co-ordination: Horizontal communication promotes effective co-ordination and co-operation among different departments, different activities and different persons.
3. Helpful in Planning and Controlling: Horizontal communication brings different departments and activities together. It helps in planning and controlling. Appropriate plans may be prepared and effectively implemented with co-ordinated efforts of all departments.

DEMERITS OF HORIZONTAL COMMUNICATION

1. Limited Scope: Since horizontal communication takes place between the persons of equal rank, it has limited scope. It cannot serve the purpose of organisational communication.
2. Difference in Approaches: Horizontal communication takes place between the persons working in different departments. Since the activities and approach of these departments are different from each other, it rests upon different approaches.(BCom Corporate Communication Question Answers)
3. Lack of Motivation: Horizontal communication does not establish relationship between superiors and subordinates. It fails in motivating employees.

BCom Corporate Communication Question Answers

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