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Informal communication is known as grapevine. This is because informal communication spreads throughout the organisation in all directions without following the formal path of communication.

Barriers in Communication: Sometimes the information that reaches the receiver is not in the manner that the sender had intended. That is, at times there arises misunderstanding or misinterpretation of the information as it is passed from the sender to the receiver. This creates barriers in the effective flow of communication. Barriers to communication can be classified as follows:

(a) Semantic Barriers: Semantic barriers of communication relate to the use or understanding of language. Sometimes it happens that certain words, sentences or phrases remain ambiguous or difficult to understand. Thereby, they are likely to get misinterpreted. Such barriers in communication that arise out of ambiguity or difficulty in understanding of words and sentences are known as semantic barriers. For example, sometimes while giving out instructions the senior or specialist uses technical vocabulary that might be difficult to understand for the subordinates. Similarly, at times two or more words have the same pronunciation (such as access and excess), that results in confusion regarding the correct interpretation of the word.

(b) Psychological Barriers: Sometimes psychological factor such as frustration, anger, fright may also obstruct effective communication. For example, out of frustration over a certain matter, an individual’s mind may be preoccupied and he may not be able to attentively grasp the information given to him. Similarly, due to preconceived notions regarding a conversation, an individual might derive conclusions even before the information is completed.

(c) Personal Barriers: Sometimes personal factors related to the sender or the receiver act as a hurdle in communication. For example, often in formal organisations, superiors do not share such information that they fear will harm their authority. Similarly, due to lack of trust on their subordinates, they may not be willing to pay attention to the information provided by them. In a similar manner, subordinates may lack the incentive to communicate freely with the superiors. Thus, in such cases effective communication is hindered due to personal factors pertaining to the sender and the receiver

(d) Organisational Barriers: In formal organisational structures, barriers to communication arise due to such factors as authority, rules, regulations, relationships, etc. For example, if an organisation follows long vertical chains of communication, it might result in delay in the flow of information. Similarly, a highly centralised organisational structure obstructs free communication.

Measures to overcome Barriers in Communication:

The following are some of the measures that can be adopted to overcome various barriers of communication.

(i) The communication should take place as per the understanding level and capabilities of the receiver. That is, it must be ensured that the receiver is clearly able to understand the information.

(ii) The language, tone and content of the information should be appropriately chosen. It should be easily understandable and should not harm anybody’s sentiments.

(iii) For the communication to be effective proper feedbacks must be taken from the receiver. That is, he must be encouraged to respond during the conversation.

(iv) It must be ensured that the information is complete in all respect and nothing is left ambiguous.

(v) The core idea of the communication must be clear between the sender and the receiver. That is, it must be conveyed properly what the communication is about.

(vi) The sender of the information should also be a patient listener. He should be open to communication from the other end as well.

Grapevine communication or informal communication refers to the communication that arises out of social interaction among employees and spreads without following the formal communication path. The following are the types of grapevine communication network.

i. Single Strand Network: In this network, the information spreads from one person to other in a sequence. That is, one person communicates to another person who turn communicates to some other person.

ii. Gossip Network: In gossip network, one person shares the information with many other people.

iii. Probability Network: Under a probability network, an individual shares the information randomly with other people. That is, the person is indifferent about who he shares the information with.

iv. Cluster Network: In this network, information is first shared between two people who trust each other. One of them then passes the information to some other person who in turn shares it with another and so the information spreads.

a) Leadership indicates ability of an individual to influence others.
b) Leadership tries to bring change in the behaviour of others.
c) Leadership indicates interpersonal relations between leaders and followers.
d) Leadership is exercised to achieve common goals of the organistion.
e) Leadership is a continuous process.

1. Link between workers and management because the supervisor explains management policies to workers and brings workers problems to the notice of the management

2. Ensures issuing Instructions: To make sure that the instructions are communicated to each and every employee.
3. Facilities Control: Control means match between actual and planned output. It ensures checking on the methods in use and progress of work according to planned schedule.
4. Maintenance of discipline: The strict supervision and guidance of supervisor encourages the employees and workers to be more disciplined in the activities. Under the guidance of superior the workers follow a fixed or strict time table and execute the plans in right directions.
5. Feedback: The supervisors are directly dealing with the subordinates. As a result, feedback in the form of suggestions, grievances keep coming to the management. It improves quality of management decisions and revision of plans & policies.
6. Improved Motivation: A supervisor with good leadership qualities can build up high morale among workers. The relationship with the supervisor is a very good incentive to improve the
motivation level of the employees while guiding the employees, the supervisors encourage the subordinates to perform to their best capacities.
7. Optimum utilisation of resources : All the activities are under the observation of supervisor so less wastage and optimum utilisation of resources is possible.

Maslow’s Theory focuses on the needs as the basis for motivation. It classifies human needs into five categories. It helps managers to realise that need level of employees should be identified to
provide motivation to them. It is based on the following assumptions:
(i) People’s behaviour is based on their needs
(ii) People’s needs are in hierarchical order.
(iii) A satisfied need can no longer motivate a person.
(iv) A person moves to the next higher level of hierarchy only when the lower

Financial Incentives (which can be calculated in terms of money)
1. Pay and allowances: Salary is the basic monetary incentive. It includes basic pay, dearness allowance and other allowances.
2. Productivity linked wage incentives: Aims at linking payment of wages to increase in productivity.
3. Bonus: An incentive offered over and above the wages/salary.
4. Profit sharing: It means to provide a share to employees in the profits. It creates a feeling of ownership to employees.
5. Co-partnership/Stock option: employees are offered company’s share of a price which is lower than market price.
6. Retirement benefits: Such as provident fund, pension and gratuity etc.
7. Perquisites: Such as car allowance, medical help etc. these measures help to provide motivation to the employees.
Non-Financial Incentives (which cannot be calculated in terms of money)
1. Status: Status means ranking of positions in the organisation. Psychological, social and esteem needs of an individual are satisfied by the status given to their job.
2. Organisational climate: Employees can be motivated with favourable atmosphere.
3. Career advancement opportunity: Works as a tonic and encourages employees to exhibit improved performance.
4. Job enrichment: If jobs are enriched and made interesting, the job itself becomes a source of motivation to the employees.
5. Employees recognition programmes: Most employees feel that what they should be recognised by the higher authorities.
6. Job security: Employees want their job to be secured and it is a strong motivator but on the other hand it makes the employees lazy.

7. Employee participation: It means involving employees in the decision making.
8. Employee empowerment: Means giving more autonomy and powers to subordinates.

1. Directing initiates action: The other functions of management prepare a set-up base for action, but directing initiates action in the organisation.
2. Directing takes place at every level of Management (Pervasive): Every manager from top executive to supervisor performs the function of directing.
3. Directing is a continuous process of supervision, communication, leadership and motivation. It continues throughout the life of the organisation.
4. Directing flows from top to bottom: It is initiated at the top level and flows to the bottom through organisational hierarchy.

Directing as a function of management, refers to the process of instructing, guiding, counselling, motivating and leading people in the organisation to achieve its objectives. It is the force which gives the life to the organisational structure. Directing comprises of:
a) Issuing orders by a superior to his subordinates.
b) Supervising the employees when they are performing job.
c) Motivating them to perform more effectively.
d) Leading them towards the achievement of overall goals of the concem

1. Fear of challenge to authority may withhold or suppress a particular communication.
2. Lack of confidence of superior in his subordinates.
3. Unwillingness to communicate. e.g., fear of punishment/demotion.
4. Lack of proper incentives stops the subordinates to offer useful suggestions.

The communication network in which all subordinates under a supervisor communicate through supervisor only is wheel communication network. In a wheel network, the supervisor is at the centre of the communication network (wheel). The subordinates cannot communicate among themselves, rather they need to communicate through the supervisor.

Delegation is not an element of directing, rather, it precedes directing. Direction refers to a process where employees of an organisation are instructed, motivated and guided to achieve certain goals and objectives. Motivation, communication and supervision are elements of direction.

Free rein leader gives complete freedom to the subordinates. Such a leader avoids use of power. He depends largely upon the group to establish its ow goals and work out its own problems. Group members work themselves as per their own choice and competence. The leader exists as a contact man with the outsiders to bring information and the resources which the group requires for accomplishing the job.
Note: This is also known as laissez faire which means no interference in the
affairs of others. [French laissez means to let/allow fair means to do].

1. Followers are highly skilled, experienced and educated.
2. Followers have pride in their work and the drive to do it successfully on their own.
3. Outside experts, such as staff specialists or consultants are being used.
4. Followers are trustworthy and experienced.
This style should NOT be used when:
5. Followers feel insecure at the non - availability of a leader.
6. The leader cannot or will not provide regular feedback to his followers

Merits :
1. Orderly flow of information
2. Easy knowledge of source of information
3. Fixation of responsibility
4. Easy in control
Demerits:
1. Slow process
2. Lack of personal interest
3. Rigidity
4. Overload of work

Formal Communication: refers to official communication which takes place following the chain of command. Classification of formal communication-
1. Vertical Communication: Flows vertically i.e., upwards or downwards through formal channels.
(i) Downward Communication: Higher to lower level like plans, policies, rules etc.
(ii) Upward Communication: Subordinate too superior like suggestions, grievances, reports etc.
2. Horizontal/lateral Communication: between persons holding positions at the same level of the organisation e.g., production manager may contact marketing manager about product design, quality etc.

1. Acts as basis of coordination: It provides coordination among departments, activities and persons in the organisation.
2. Helps in smooth working of an enterprise: communication is basic to an organisation existence right from its birth through its continuing life.
3. Act as basis of decision making: Communication provides needed information for decision making.
4. Increases managerial efficiency: Communication is essential for quick and effective performance of managerial functions.
5. Promotes cooperation and Industrial Peace: The two-way communication promotes cooperation and mutual understanding between the management and workers and brings peace in the organisation.
6. Establishes effective leadership: Effective communication helps to influence subordinates. While influencing, a leader should possess good communication skills.