MBA 1st Year Introduction Short Question Answers Study Notes

Q.7. What do you mean by formal communication? Give few examples of medium of formal communication.

Ans. Formal Communication: Formal communication means a communication in accordance to the organisational structure. It follows formal chain of command. Formal communication refers to the official communication which takes place following the chain of command in the organisation. Such communication generally relates to the officially accepted and recognised activities of the organisation. The organisation structure reflecting superior subordinate relationship determines the flow of formal communication.


According to Thill and Bovee, ‘Formal communication is that flow of information which follows an official chain of command!

Medium/Channel of Formal Communication: These are as follows:

1. Written Media: Order, notice, letter, report, request.

2. Oral Media: Meeting, seminar, conferences.

Q.8. Define Informal communication and discuss its advantages.

Ans. Informal Communication: Informal communication means the communication which is adopted at personal level. Communication between individuals and groups which are not officially recognised is known as informal communication. It consists of an exchange of ideas and information resulting from social interaction among the members of an organisation. Actually, the necessity of information communication arises among people to satisfy their social needs, which is not possible through formal communication. It may involve work related matters or consists of other matters of mutual interest to the parties. The flow of informal communication cuts across the official lines of communication.

Advantages: Refer to Section-A, Q.7.

Q.9. Differentiate between formal and Informal communication.

Ans. Difference Between Formal and Informal Communication

S.No. Basis of Difference Formal communication Informal communication
  Area Formal communication follows the officially established chain of command and lines of communication. Informal communication is independent of the authority relations in independent of the authority relations in the organization.
  Process It is a slow moving process. It carries message.
  Responsibility It is easy to pinpoint the responsibility with respect to rformal communicational It is not possible to fix the responsibility of informal communicational.
  Type It is task-oriented. It is people-oriented.
  Coverage It consists mainly of work-related matters. It may consist of woek-related as well as social messages.
  Order It is orderly and systematic as regards to direction of flow. It is unsystematic and erratic as regards to direction of flow.
  Needs It serves organizational needs. It serves not only organizational needs but also the social needs of the people.
  Flow of direction It flows in vertical, horizontal and siagonal directions. It is mostly oral.
  Nature It can be oral and written. It is mostly oral.
  Message The message is accurate and authentic. The message can’t be considered as authentic unless it is supplemented by formal channels.

Q.10. What is the process of communication? (2011-12)

Or What are the different stages in communication cycle? (2006-07, 07-08, 12-13)

Or Sketch out the process of communication. (2006-07, 07-08, 08-09, 13-14)

Ans. Communication Process/Cycle: Communication is a process that involves certain distinctive steps. In its simpler form, it relates to stimulus and response. The stimulus arises from the communicator and the receiver responds. Communication is not complete till the message conveyed by the sender is properly understood by the receiver. Any communication process should necessarily have three elements-sender, receiver and the message.

Message Sender – Message – Receiver The process of communication in an organisation

Feedback can be illustrated with the help of figure. It brings out the following steps involved in the communication process:

Step 1. Message is initiated.

Step 2. Sender picks up the idea and encodes it for proper understanding.

Step.3 The encoded message is then transmitted through the chosen medium or channel.

Step 4. Receiver receives the message and decodes it.

Step 5. The decoded message is used or acted upon.

Step 6. As a final step, feedback on use or action is sent back to the sender.

Q.11. Define communication. Explain the Importance of effective communication in business.

Ans. Communication: Communication is the process through which two or more persons come to exchange ideas and understanding among themselves.

‘Communication is an exchange of facts, ideas, opinions, emotions by two or more persons. George

Importance of Effective Communication

The importance of effective communication in business are:

1. Facilitates Planning: Communication facilitates planning in a number of ways. It enables the management to secure useful information from the lower management, workers, and fields, and office staff, without which it would be impossible to take decisions.

2. Facilitates Coordination: Management is the art of getting things done through others and this can be achieved only through proper coordination of available resources, human or otherwise. Communication is an aid to coordination. Communication helps to bring unity of purpose and action.

3. Improves Superior-Subordinate Relationship: Effective communication induces the human element in an organization and improves the relationship between the superior and the subordinate as the result of the flow of information and discussion between them. It promotes the exchange of ideas between superior and subordinates enabling each party to know what is to be achieved under what circumstances. This improves the superior-subordinate relationship.

4. Higher Productivity at Lower Cost: Effective communication saves time and efforts. It provides the necessary ‘Will to work. Employees feel more secure and more interested in their work if the business plans and policies are communicated to them effectively.

Q.12. The objectives of any organisation can be achieved with effective communication’. Explain.(2011-12)

Ans. Communication is the link that unites the superiors and the subordinates and maintains mutual understanding among them. The management can convey its expectations or wishes to workers only through the help of effective communication and through it only, the workers also can put their suggestions and grievances towards the management.

Communication also plays an important role in public relations for developing and maintaining a favorable image of the enterprise in society. Thus, it can be said that it is not only essential for the uninterrupted working of any enterprise but there is a need for maintenance of good relations with external parties and hence the achievement of organization’s objectives.

Thus, effective communication is the responsibility of people in an organization who are working towards a common goal so that they can share their views and ideas and take proper decisions helpful in the smooth functioning of that organization. The communication is effective or not, can be judged on the basis of the intended results and these results are the responsibility of the entire organization. From the above said, it can be concluded, that the objectives of any organization can be achieved through effective communication only.

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