Module One.

Managing Communication in Organization.

Importance of interpersonal communication - The communication process. Direction of

communication - Downward communication, Upward communication, Lateral
communication, Barriers to effective communication. Transactional Analysis – Ego states,
Types of interaction, Strokes, Games.

COMMUNICATION.

Communication is the process of exchanging information, ideas, thoughts, or emotions

between individuals or groups through verbal, non-verbal, or written means. Communication
refers to the transfer and understanding of meaning.

Communication serves four major functions within a group or organization: control,

motivation, emotional expression, and information.

1) Communication acts to control member behavior in several ways. Organizations have

authority hierarchies and formal guidelines employees are required to follow.
Informal communication controls behavior too.
2) Communication fosters motivation by clarifying to employees what they must do,
how well they are doing it, and how they can improve if performance is subpar. The
formation of specific goals, feedback on progress toward the goals, and reward for
desired behavior all stimulate motivation and require communication.
3) Communication within the group is a fundamental mechanism by which members
show their satisfaction and frustrations. Communication, therefore, provides for the
emotional expression of feelings and fulfilment of social needs.
4) The final function of communication is to facilitate decision making. Communication
provides the information individuals and groups need to make decisions by
transmitting the data needed to identify and evaluate choices.

IMPORTANCE OF INTERPERSONAL COMMUNICATION.

Interpersonal communication involves the exchange of a message across a communication

channel from one person to another. Interpersonal skills play an important role in determining
manager’s effectiveness.

Implementing OB principles into workplace yield many important organisational outcomes.

Developing manager’s interpersonal skills help organisations attract and keep high
performing employees which will prove beneficial for organisations as such employees are
always in short supply and are costly to replace.
Strong association exists between quality of workplace relationships and employee job
satisfaction, stress and turnover. Social relationships among workers and supervisors were
strongly related to overall job satisfaction.

Increasing OB elements in organisations can foster social responsibility awareness.

Universities have begun to incorporate social entrepreneurship education into their
curriculum to train future leaders in addressing social issues within their organisation. It is
important as there is a growing need for understanding the means and outcomes of corporate
social responsibility.

THE COMMUNICATION PROCESS

The key parts of the communication process are:

(1) The sender: The sender initiates a message by encoding a thought.

(2) Encoding: The stage where the sender translates their thoughts, ideas, or emotions into a
form that can be communicated to the receiver. This could be in the form of spoken words,
written text, gestures, symbols, or other forms of expression.

(3) The message: The message is the actual physical product of the sender’s encoding.

(4) The channel: The channel is the medium through which the message travels. The sender
selects it, determining whether to use a formal or informal channel.

(5) Decoding: The process of translating the symbols into understandable form.

(6) The receiver: The receiver is the person(s) to whom the message is directed.

(7) Noise: Noise represents communication barriers that distort the clarity of the message,
such as perceptual problems, information overload, semantic difficulties, or cultural
differences.

(8) Feedback: Feedback is the check on how successful we have been in transferring our
messages as originally intended. It determines whether understanding has been achieved.

DIRECTION OF COMMUNICATION.

To be an effective employee, manager, client, or consultant, it is essential to communicate

effectively with others. Most communication in organizations can be classified into the
following types:

1) Downward Communication: Communication that flows from one level of a group or

organization to a lower level is downward communication.

Group leaders and managers use it to assign goals, provide job instructions, explain policies
and procedures, point out problems that need attention, and offer feedback about
performance.
When engaging in downward communication, managers must explain the reasons why a
decision was made. Evidence clearly indicates that explanations increase employee
commitment and support of decision.

A problem in downward communication is its one-way nature; generally, managers inform

employees but rarely ask their advice or opinions. The best communicators explain the
reasons behind their downward communications but also solicit communication from the
employees they supervise.

2) Upward Communication: Upward communication flows to a higher level in the

group or organization.

It is used to provide feedback to higher-ups, inform them of progress toward goals, and relay
current problems. Upward communication keeps managers aware of how employees feel
about their jobs, co-workers, and the organization in general. Managers also rely on upward
communication for ideas on how conditions can be improved.

3) Lateral Communication: When communication takes place among members of the

same work group, members of work groups at the same level, managers at the same
level, or any other horizontally equivalent workers, it is called as lateral
communication.

Lateral communication saves time and facilitates coordination. Some lateral relationships are
formally sanctioned. More often, they are informally created to short-circuit the vertical
hierarchy and speed up action.

Organizational Communication.

1) Formal small group networks: Three common small groups:

a) Chain: Rigidly follows the chain of command.
b) Wheel: Relies on a central figure to act as a conduit for all the group’s
communication. Example: Team with a strong leader.
c) All channel: Permits all group members to actively communicate with each
other. It is often used in self-managed teams.

2) Grapevine: Refers to informal communication networks in a group or organisation.

Although rumours and gossip spread through grapevine are informal, they are still an
important source of communication.

Grapevine is not controlled by the management of an organisation, but research shows that it
has important effects on how job applicants join an organization.

Often employees perceive it as being more believable and reliant. It is largely used to serve
the interests of the people within it.

3) Electronic communication: Includes e-mail, text messaging, networking software,

blogs and video conferencing.
BARRIERS TO EFFECTIVE COMMUNICATION.

A number of barriers can retard or distort effective communication.

1) Filtering: Filtering refers to a sender’s purposely manipulating information so the

receiver will see it more favourably.

Example: A manager who tells his boss what he feels the boss wants to hear is filtering
information.

The more vertical levels in the organization’s hierarchy, the more opportunities there are for
filtering. Factors such as fear of conveying bad news and the desire to please the boss often
lead employees to tell their superiors what they think they want to hear, thus distorting
upward communications.

2) Selective Perception: Occurs when the receivers in the communication process

selectively see and hear based on their needs, motivations, experience, background,
and other personal characteristics. Receivers also project their interests and
expectations into communications as they decode them.

Example: An employment interviewer who expects a female job applicant to put her family
ahead of her career is likely to see that in all female applicants, regardless of whether they
feel that way.

3) Information Overload: Individuals have a finite capacity for processing data. When
the information we must work with exceeds our processing capacity, the result is
information overload.

When individuals have more information than they can sort and use, they tend to select,
ignore, pass over, or forget. Or they may put off further processing until the overload
situation ends. In any case, lost information and less effective communication results.

4) Emotions: Individuals in positive moods tend to feel more confident about their
opinions after reading a persuasive message, making well-crafted arguments more
influential, but they are also more likely to accept messages at face value rather than
analysing them critically.

In contrast, those in negative moods are more likely to scrutinize messages in greater detail,
engaging in deeper cognitive processing. However, extreme emotions such as jubilation or
depression can hinder effective communication by impairing rational thinking, making
individuals more prone to rely on emotional judgments instead of objective reasoning.

5) Language: Even when communicating in the same language, words mean different
things to different people. Age and context are two of the biggest factors that
influence such differences.

Senders tend to assume the words and terms they use mean the same to the receiver as to
them. This assumption is often incorrect.
 6) Silence: Research suggests silence and withholding communication are both common
and problematic.

Employee silence means managers lack information about ongoing operational problems.
Silence regarding discrimination, harassment, corruption, and misconduct means top
management cannot take action to eliminate this behaviour. Finally, employees who are silent
about important issues may also experience psychological stress.

Managers must make sure they behave in a supportive manner when employees voice
divergent opinions or concerns, and they must take these under advisement.

7) Communication Apprehension: Individuals with communication apprehension, or

social anxiety experience undue tension and anxiety in oral communication, written
communication, or both.

They may find it extremely difficult to talk with others face-to-face or may become extremely
anxious when they must use the phone, relying on memos or e-mails when a phone call
would be faster and more appropriate.

8) Lying: The final barrier to effective communication is outright misrepresentation of

information or lying. Lying disrupts effective communication by eroding trust,
transparency, and collaboration. The frequency of lying and the difficulty in detecting
liars makes this an especially strong barrier to effective communication in
organizations.

9) Cultural Barriers: First are barriers caused by semantics. Words mean different
things to different people, particularly people from different national cultures.

Second are barriers caused by word connotations. Words imply different things in different
languages.

Third are barriers caused by tone differences. In some cultures, language is formal; in others,
it’s informal. In some cultures, the tone changes depending on the context.

Fourth are differences in tolerance for conflict and methods for resolving conflicts.
Individuals from individualist cultures tend to be more comfortable with direct conflicts and
will make the source of their disagreements overt. Collectivists are more likely to
acknowledge conflict only implicitly and avoid emotionally charged disputes.

TRANSACTIONAL ANALYSIS.

Transactional analysis is a theory of personality and a form of dynamic group or individual

psychotherapy focusing on characteristic interactions that reveal internal ego states, and the
games people play in social situations. It was developed by Eric Berne in the 1950s.
It focuses on understanding human behavior, communication, and relationships through the
interactions, or transactions, between individuals. TA is widely used in psychotherapy,
counselling, business communication, and personal development.

Ego states.

The approach involves a study of three primary ego states (parent, child, adult) to determine
which one is dominant in the transaction/interaction in question.

• Parent (P) – Behaviors, thoughts, and feelings copied from authority figures
(nurturing or critical).
• Adult (A) – Rational, logical, and data-driven responses to the present situation.
• Child (C) – Emotional and reactive responses formed from past experiences (can be
free-spirited or rebellious).
These states are not roles but psychological conditions that influence behavior.

Parent Ego state.

The Parent state contains behaviors, thoughts, and feelings that we have learned from
authority figures (parents, teachers, elders) during childhood. It operates in two modes:

a) Nurturing Parent (NP)

• Positive Traits: Caring, supportive, encouraging, protective, loving.

• Negative Traits: Overprotective, enabling, intrusive.
• Example: A teacher comforting a struggling student or a friend offering emotional
support.

b) Critical Parent (CP)

• Positive Traits: Sets rules, promotes discipline, gives constructive criticism.

• Negative Traits: Judgmental, controlling, overly critical, punishing.
• Example: A boss scolding an employee for missing a deadline or a parent saying,
"You should always listen to me!"
Adult Ego State.

The Adult state is rational, logical, and objective. It processes information without emotional
bias and makes decisions based on facts and reality.

• Positive Traits: Analytical, problem-solving, data-driven, balanced, present-focused.

• Negative Traits: Can seem emotionally detached if overused.
• Example: A manager analysing data to improve work efficiency or someone calmly
explaining an issue without blame.
Child Ego State.

The Child state represents emotions, creativity, and memories from early life. It is influenced
by childhood experiences and can be both positive and negative. It operates in two modes:

a) Free Child (FC)

• Positive Traits: Spontaneous, curious, playful, creative, joyful.

• Negative Traits: Impulsive, careless, avoids responsibility.
• Example: Laughing at a joke, playing a game, or daydreaming.

b) Adapted Child (AC)

• Compliant (Submissive) Child – Obedient, fearful, avoids conflict.

• Rebellious Child – Defiant, resistant, opposes authority.

The Compliant Child follows rules due to fear or conditioning, while the Rebellious Child
resists authority, often acting out in frustration.
Types of interaction.
A transaction is the basic unit of communication, where one person sends a message, and the
other responds. The nature of these transactions depends on the ego states involved.

• Complementary Transactions – Communication flows smoothly when the response

matches the expected ego state.

Examples: Adult ↔ Adult (logical discussion), Parent ↔ Child (guidance), Child ↔ Child
(playful interaction). These interactions lead to understanding and effective communication.

• Crossed Transactions – Miscommunication occurs when the response comes from an

unexpected ego state, leading to conflict.

Example: One person speaks from Adult, but the other responds from Rebellious Child
(“Stop telling me what to do!”). This often results in frustration and arguments.

• Ulterior Transactions – A message has a hidden meaning, with a difference between

social-level communication (what is said) and psychological-level intent (what is
meant).

Example: Sarcasm—"Wow, you’re so responsible today!" (sounds like praise but is actually
a Critical Parent criticism). These transactions can lead to manipulation or confusion.

Strokes.

In Transactional Analysis (TA), a stroke refers to a unit of recognition or acknowledgment

that people give and receive in interactions. Strokes are essential for emotional well-being
and influence self-esteem and relationships.

• Positive Strokes – Expressions of approval, appreciation, or affection that enhance

self-worth. These can be verbal (e.g., “You did a great job”) or non-verbal (e.g., a
smile or supportive gesture). Positive strokes foster confidence and motivation.

• Negative Strokes – Critical or dismissive interactions that may diminish self-esteem.

These include verbal criticisms (e.g., “You always get it wrong”) and non-verbal cues
(e.g., ignoring someone). While generally harmful, negative strokes still provide
recognition, which some may unconsciously seek if positive strokes are unavailable.

• Conditional Strokes – Recognition tied to specific behaviors or achievements.

Examples include praise for performance (“I like you when you succeed”) or
disapproval based on failure (“I don’t like you when you make mistakes”).
Conditional strokes can encourage growth but may also lead to validation-seeking
behavior.
 • Unconditional Strokes – Recognition given irrespective of performance or actions.
Positive unconditional strokes (e.g., “I appreciate you as you are”) build a strong
sense of self, while negative unconditional strokes (e.g., “I dislike you as a person”)
can have lasting negative effects.

Games.

Psychological games are unconscious, repetitive interaction patterns that lead to negative
emotions. They involve hidden motives and follow a predictable cycle, often reinforcing
unhealthy roles.
These games are played when individuals engage in ulterior transactions, where their words
and intentions do not fully align. They serve to reinforce self-beliefs, manipulate social
dynamics, or justify emotions like frustration, guilt, or resentment.

Common Psychological Games.

1. "Why Does This Always Happen to Me?" – The person seeks sympathy but rejects
solutions, reinforcing helplessness.
2. "If It Weren’t for You" – Blames others for personal limitations, avoiding
responsibility.
3. "Yes, But..." – Someone appears to seek advice but rejects every suggestion.