Grapevine Communication

Grapevine is a form of informal communication, operates both in internal and external informal channels which can contribute to and benefit the organization.

Therefore, it is found in all organizations. It does not follow any prescribed or predetermined rule and spreads any information quickly.

Through the grapevine, information flows in different directions linking almost every one of an organization.

It is governed by social and personal relationships rather than officially recognized rules and formalities.

Grapevine operates both in internal and external informal channels. It passes opinions, suspicions, and rumors that generally do not move through formal channels.

By nature, the grapevine is a channel of horizontal communication.

The term ‘Grapevine Communication’ originated during the American Civil War (1861- 1865). During the period the communication of intelligence information through telegraph was not effective and reliable because the telegraph system was unorganized. Telegraph lines were strung in a haphazard way through the trees like a real grapevine.

The messages received or sent through these lines were often incorrect and confusing. Rumors were rampant during the civil war. Thus any rumor, whatever might be the source, was presumed to be originated from the unarranged telegraph lines or grapevine. Later, in course of time, grapevine communication has become synonymous with informal communication.

Examples of Informal or Grapevine Communication:

  1. The manager calls an employee to his chamber and talks with him for sometimes relating to official work. Rumor is spread that the employee will be promoted to higher position ignoring the promotion of other employees.
  2. The employees of a company have come to know the profit figure for the year from the accounts department. Somebody among the employees within the company puts some imagination to it and tells others that the company is going to offer bonus to the employees on the basis of profit earned.

Patterns or Types of Grapevine

The grapevine communication is usually horizontal in nature. But it can be horizontal, vertical and diagonal. Prof. Keith Davis has classified grapevine into 4 types.

  • Single Strand Chain
  • Gossip Chain
  • Probability Chain
  • Cluster Chain

  1. Single Strand Chain

In this type of grapevine communication the information passes through a number of persons like a chain. A tells something to B, who tells it to C, who tells it to D and so on.

It is generally a long chain. The longer the chain the greater is the possibility of distortion of the information.

  1. Gossip Chain

In Gossip Chain one person actively conveys information to other persons around him. A circle or wheel-like figure is formed in this communication.

Here, in this picture. A is at the centre and transmits messages to ‘B’, ‘C\ ‘D\ ‘E\ ‘F, ‘G’, and ‘H’ around him/her.

Gossip Chain is generally used when information to be communicated is non-job oriented in nature.

  1. Probability Chain

It is a random process in which information may move from one person to any other person or persons according to law of probability. Naturally, in this type of communication, some people of the organization will be informed and some others will remain outside the arena of the communication.

Here, in the illustration, E, F, G and K are outside the communication chain. This chain is used when information is interesting but less important.

  1. Cluster Chain

Cluster chain is mostly used and the dominant pattern of grapevine communication. In this type one person tells something to some selected trust worthy persons. Some of these persons may inform a few selected other individuals. Here in the picture, A tells some selected and trustworthy persons, B, C and D. C again relays it to his selected persons, G, H and I. D tells J, a person of his choice. E and F remain outside the cluster.

Importance of Informal or Grapevine Communication

Informal or Grapevine communication is an indispensable part of entire communication system. Formal communication is compared to arteries of a living being, whereas, grapevine or informal communication are like veins. The later is a supplement to the former. Where formal communication fails to operate, grapevine or informal communication is used.

Sometimes, grapevine communication is more effective than the formal communication. In fact, it carries more information than formal communication. Not only is a large volume of information, important and vital information also conveyed through it.

In an organization small groups of people work together. It is quite natural that they will become interested about each other and want to know various information regarding each other’s service condition, salary, facilities available, appointment, retirement, transfer, punishment, etc.

They will also be interested to know any private, secret and confidential information which includes any romantic affair, family disputes, marriage, birth of a child, examination results of their children, special treatment or favour by boss to any member and so on.

The employees generally exchange their views with their peers openly during lunch break or at an interval and get emotional relief from monotony and stress. Thus, the informal or grapevine communication promotes social relationship among the participants. It helps to build up unity, integrity and solidarity among them and boosts up their morale.

Grapevine or informal communication is faster than the formal communication. Being oral in nature, it has little or no cost and can reach maximum number of people irrespective of their positions within a very short time.

Since there is no official procedure and formalities it is not binding and compelling, rather it is flexible and spontaneous. The managers can get feedback from their subordinates quickly on the plan and policies through grapevine. New ideas, suggestions, opinions may come out as people can express their feelings without fear.

Characteristics of Informal Communication

The informal communication has the following characteristics:

(i) It is based on informal relationship.

(ii) It grows spontaneously.

(iii) It takes the form of gossip.

(iv) It is conveyed through conversation, facial expression, body movement, silence, etc.

(v) It does not follow any structured route or channel.

(vi) Small groups are formed with like-minded people in such communication.

(vii) It is direct and fast.

(viii) It is flexible and dynamic in nature.

Advantages of Informal or Grapevine Communication

The advantages of informal communication are pointed out below:

(i) Informal communication, being unofficial and personal, promotes a social relationship among the participants.

(ii) Flow of information is fast and is suitable for emergencies.

(iii) New ideas, suggestions, opinions may come out through such communication as people can express their feelings without fear.

(iv) It can create an atmosphere congenial for work as the relationship between the managers and the employees improves.

(v) The managers can collect information regarding reaction of the workers, attitude of the employees of other departments, intention of peer officers through such communication. It is not possible in the case of formal communication. Thus, informal communication supplements the formal communication to fulfill the objective of the organization.

(vi) Sharing of information in a free atmosphere makes the picture clear, bringing out the hidden dimension of the management, if any. It puts an end to misunderstanding and suspicion.

(vii) It is an outlet of expression of complaints, dis-likings, grievances, etc.

Disadvantages/Limitations of Informal or Grapevine Communication

Informal Communication has the following disadvantages or limitations:

(i) Inaccurate, incomplete and half true information’s are spread through informal communication as everybody interprets it in his/her own way.

(ii) In most cases it is emotional and full of sentiments which can change its meaning.

(iii) No one can be held responsible as it is not possible to find out the supplier of wrong information in the case on an enquiry.

(iv) It is not reliable. The managers cannot depend upon such information as it does not follow any norm and is too loose a system. No decision can be taken depending upon such communication.

(v) It spreads rumors and endangers consolidation and unity of the organization.

(vi) It creates conflicts between groups by spreading rumors against them and reducing their mental strength.

5 Ways to make Grapevine Beneficiary to Organization

  1. Providing real news to the grapevine initiators

Managers should identify the people who take an active part in grapevine channels and provide them with real news so that they can transmit real facts to the grapevine channels.

This will eventually, resist transmission of rumor, untrue and distorted messages.

  1. Considering grapevine as a pulse feeling tool

Since grapevine is an important source of receiving feedback, managers should use it as a tool for feeling the pulse of the employees.

  1. Contradicting the false rumor

If any false rumor occurs in the organization, management should immediately contradict and protest the rumor through formal channels.

As a result, the feeding of false rumors will decrease.

  1. Allowing workers in the decision-making process

If the workers are allowed to take part in the decision-making process, they will be well informed of the facts.

In such a situation, there will be nothing to suspect and to create a false rumor.

  1. Developing good organizational climate

Good organizational climate impels the employees to develop a sense of belongingness, to maintain status, chain of command and self-respect, and to enhance satisfaction.

All these will facilitate the occurrence of grapevine in the most desired and effective way.

At last, we can say that though the organization cannot hire and fire the grapevine, it can ensure an environment where people can practice grapevine in the most desired and effective way.

Verbal Communication Meaning, Importance, Characteristics, Effectiveness

Verbal Communication refers to the use of words, either spoken or written, to convey information, ideas, or emotions between individuals. It is one of the most common forms of communication and includes conversations, speeches, emails, phone calls, and other forms of written correspondence. Effective verbal communication involves clarity, tone, pitch, and vocabulary, as well as active listening skills. It enables individuals to express thoughts, share knowledge, ask questions, and engage in discussions. Verbal communication can be formal or informal, depending on the context, and plays a vital role in building relationships, conveying messages, and ensuring understanding.

Importance of Verbal Communication:

  • Facilitates Clear and Direct Expression

Verbal communication allows individuals to express their thoughts, ideas, and emotions clearly and directly. Unlike non-verbal communication, which can be ambiguous, verbal communication provides an explicit means to convey specific messages. It enables the speaker to articulate their point of view, ensuring that listeners receive the information as intended. This is particularly important in professional environments where precision is required to avoid misunderstandings or errors. By using the right words, tone, and language, individuals can effectively communicate their messages, enhancing clarity and comprehension.

  • Promotes Understanding and Reduces Miscommunication

Verbal communication helps ensure that both the sender and the receiver understand each other. In a conversation, feedback is immediate, allowing for real-time clarification and the opportunity to ask questions if something is unclear. This dynamic exchange reduces the likelihood of misunderstandings that can arise from misinterpreting body language or non-verbal cues. For instance, in a business meeting, team members can ask follow-up questions to ensure they fully understand the instructions or objectives, thus minimizing errors in execution and improving overall team performance.

  • Encourages Engagement and Interaction

Verbal communication fosters engagement and interaction between individuals, making it easier to build connections and relationships. It enables open dialogue, where both parties can exchange ideas, ask questions, and provide feedback. This interactive nature promotes collaboration and teamwork, especially in work settings where ideas need to be shared and discussed openly. In social settings, verbal communication also plays a vital role in maintaining relationships by facilitating conversations, sharing experiences, and strengthening bonds between individuals.

  • Enhances Professionalism and Authority

In professional and business settings, verbal communication is crucial for establishing authority, presenting ideas, and leading discussions. A well-delivered presentation, for example, can influence an audience’s perception of expertise, professionalism, and leadership. Clear and confident verbal communication demonstrates competence, enabling individuals to effectively lead teams, negotiate deals, and manage projects. Additionally, verbal communication in the form of formal emails, reports, or presentations is often essential for establishing credibility and making a strong impression in the workplace.

  • Improves Conflict Resolution

Verbal communication plays a significant role in resolving conflicts by enabling individuals to address misunderstandings or disagreements directly. Through calm, respectful, and clear dialogue, parties involved in a conflict can express their concerns, listen to each other’s viewpoints, and work toward a mutually agreeable solution. When emotions are high, effective verbal communication can defuse tense situations, allowing for constructive conversations that lead to resolution. In professional environments, this is especially important to maintain healthy working relationships and prevent conflicts from escalating.

  • Facilitates Learning and Knowledge Sharing

Verbal communication is essential in educational and training contexts, where knowledge transfer is the primary goal. Teachers, trainers, and mentors rely on verbal communication to convey lessons, instructions, and information in a clear and structured manner. Additionally, it enables students and employees to ask questions, participate in discussions, and engage with the content more effectively. Verbal communication fosters a two-way exchange of ideas, facilitating deeper learning, enhancing comprehension, and promoting active participation in the learning process.

Characteristics of Verbal Communication

(i) Mediums

Verbal communication is either face-to-face or public. Communicating face-to-face allows communicators to exchange ideas back and forth freely, while public speaking allows the back and forth exchange of ideas only in certain circumstances, like a classroom setting or during a question and answer session. However, in order to keep information flowing smoothly and clearly between the speaker and the audience, rules have to be negotiated as to when each individual can speak. Verbal communication does not just involve speech, since written communication conveys a specific idea and is a part of verbal communication.

(ii) Sound

At birth, everyone has the ability to make sounds. Some sounds have nothing to do with language or words, such as laughing, crying and yelling. Despite that, people with different languages can understand the emotion that the individual is communicating. Emotions and attitudes can also be communicated through the tone of the words. People have a tendency to show how they feel about the subject or the audience through the tone they present. Tone can completely shift the meaning of an uttered statement. For instance, if a statement is said sarcastically, others will likely believe the opposite of what is said.

(iii) Words

At some point, children learn how to put sounds into words. Words are sounds that are produced in such a way that people can distinguish them from other sounds. Not everyone will necessarily know the meaning of each individual word, so those wishing to communicate verbally need to make sure that those they’re speaking to understand the intended meaning of the word.

(iv) Language

Languages are created when meaning is assigned to words. The language that a child is exposed to is the language that the child picks up. Individuals who want to verbally communicate to others speaking another language must not only learn the language but also understand how these words are used in common speech. For instance, a person learning English might know that accelerated is a synonym for fast but needs to understand that accelerated means a specific type of fast in which an individual is performing an action faster than before.

(v) Etiquette

In addition to understanding, different cultures have systems of etiquette that determine what is said in order to avoid offending others. For instance, speakers often address their audience as ladies and gentlemen. In face-to-face communication, individuals often refer to each other as sir and madam.

Effectiveness of Verbal Communication:

Effectiveness of Verbal Communication refers to how well a speaker conveys their message and how clearly it is understood by the listener. The success of verbal communication relies on several factors that ensure the message is transmitted and received without misunderstanding.

  • Clarity and Simplicity

One of the most important factors in effective verbal communication is clarity. The message should be simple, direct, and easy to understand. Avoiding jargon or overly complicated language helps ensure that the listener can follow and comprehend the information being communicated. Clear communication minimizes the chance of confusion and ensures that the message is accurately received. It also helps to structure the message logically, with a clear introduction, body, and conclusion, so the listener can easily grasp the core idea.

  • Appropriate Tone and Pitch

The tone of voice plays a significant role in verbal communication, as it conveys emotion, intent, and emphasis. A warm, friendly tone can foster a positive atmosphere, while a cold or harsh tone might create tension. Adjusting the tone based on the context and the listener’s emotional state is important for effective communication. Similarly, pitch variation helps maintain the listener’s interest and ensures the message is not monotonous. A well-modulated tone can keep the conversation engaging, clear, and responsive to the listener’s needs.

  • Active Listening

Verbal communication is a two-way process that involves both speaking and listening. Active listening is critical to ensuring effective verbal communication. It requires full attention to the speaker, understanding their message, and responding thoughtfully. By practicing active listening, the listener ensures that they correctly interpret the message, leading to more meaningful conversations. Additionally, active listening helps the speaker adjust their message if necessary and fosters mutual understanding. Asking questions, summarizing key points, and providing feedback are essential components of active listening.

  • Body Language and Non-Verbal Cues

Although verbal communication primarily involves spoken or written words, body language and non-verbal cues enhance its effectiveness. A positive, open body posture can reinforce the message and demonstrate attentiveness. On the other hand, crossed arms, lack of eye contact, or distracted body language can undermine verbal communication. Using appropriate facial expressions and gestures can emphasize points, convey emotion, and make the communication more dynamic. These non-verbal elements should align with the spoken message for full effectiveness.

  • Adaptability to the Audience

To ensure that the message resonates, effective verbal communication requires adapting the language and style to the audience’s needs and context. For example, the way you communicate with colleagues may differ from how you speak with clients or superiors. Adjusting the formality of the language, the depth of explanation, and the tone based on the audience ensures that the message is tailored for maximum impact. Being mindful of the listener’s background, knowledge level, and expectations is crucial for effective communication.

  • Confidence and Assertiveness

Effective verbal communication is also marked by the speaker’s confidence. Speaking with authority and assertiveness helps establish credibility and ensures the message is taken seriously. Confidence in delivery reduces hesitation and provides clarity, making the message more persuasive. However, it’s important to balance confidence with respect and humility, as overconfidence can come across as arrogance and diminish the effectiveness of communication. A confident speaker engages the audience and encourages open dialogue.

  • Feedback and Clarification

Feedback is essential for effective verbal communication. It provides an opportunity for the speaker to ensure their message was understood as intended and for the listener to express their thoughts or concerns. In situations where the listener is unclear or has questions, providing clarifications or additional explanations strengthens the communication. Feedback mechanisms like asking for responses, summarizing points, and offering clarifications help to eliminate misunderstandings, creating a more dynamic and productive communication process.

  • Emotional Intelligence

Emotional intelligence (EI) is an important factor in effective verbal communication. It refers to the ability to recognize and manage your emotions as well as the emotions of others. High emotional intelligence enables speakers to choose their words carefully, manage conflict, and build rapport with their audience. Understanding the emotional state of the listener allows the speaker to tailor their message in a way that resonates and is empathetic, improving the overall effectiveness of the interaction.

Non-Verbal Communication Meaning and characteristics

Nonverbal communication refers to gestures, facial expressions, tone of voice, eye contact (or lack thereof), body language, posture, and other ways people can communicate without using language.

When you’re interviewing for a job or participating in a meeting, your nonverbal communication is almost as important as your verbal responses. Crossed arms can seem defensive. Poor posture may appear unprofessional. A downward gaze or avoiding eye contact can detract from you being seen as confident.

Employers will evaluate what you do as well as what you say, and you can use your nonverbal communication skills to make the best impression. If your skills aren’t top-notch, you can practice them so you make a positive impression on everyone you meet in the workplace and beyond.

Types of nonverbal communication

The many different types of nonverbal communication or body language include:

  1. Facial expressions

The human face is extremely expressive, able to convey countless emotions without saying a word. And unlike some forms of nonverbal communication, facial expressions are universal. The facial expressions for happiness, sadness, anger, surprise, fear, and disgust are the same across cultures.

  1. Body movement and posture

Consider how your perceptions of people are affected by the way they sit, walk, stand, or hold their head. The way you move and carry yourself communicates a wealth of information to the world. This type of nonverbal communication includes your posture, bearing, stance, and the subtle movements you make.

  1. Gestures

Gestures are woven into the fabric of our daily lives. You may wave, point, beckon, or use your hands when arguing or speaking animatedly, often expressing yourself with gestures without thinking. However, the meaning of some gestures can be very different across cultures. While the OK sign made with the hand, for example, conveys a positive message in English-speaking countries, it’s consider offensive in countries such as Germany, Russia, and Brazil. So, it’s important to be careful of how you use gestures to avoid misinterpretation.

  1. Eye contact

Since the visual sense is dominant for most people, eye contact is an especially important type of nonverbal communication. The way you look at someone can communicate many things, including interest, affection, hostility, or attraction. Eye contact is also important in maintaining the flow of conversation and for gauging the other person’s interest and response.

  1. Touch

We communicate a great deal through touch. Think about the very different messages given by a weak handshake, a warm bear hug, a patronizing pat on the head, or a controlling grip on the arm, for example.

  1. Space

Have you ever felt uncomfortable during a conversation because the other person was standing too close and invading your space? We all have a need for physical space, although that need differs depending on the culture, the situation, and the closeness of the relationship. You can use physical space to communicate many different nonverbal messages, including signals of intimacy and affection, aggression or dominance.

  1. Voice

It’s not just what you say, it’s how you say it. When you speak, other people “read” your voice in addition to listening to your words. Things they pay attention to include your timing and pace, how loud you speak, your tone and inflection, and sounds that convey understanding, such as “ahh” and “uh-huh.” Think about how your tone of voice can indicate sarcasm, anger, affection, or confidence.

Characteristics of non-verbal communication

Non-verbal communication is any information that is communicated without using words. The important characteristics of non-verbal communication are as follows:

(i) No use of words

Non-verbal communication is a communication without words or language like oral or written communication. It uses gestures, facial expressions, eye contact, physical proximity, touching, etc. for communicating with others.

(ii) Culturally determined

Non-verbal communication is learned in childhood, passed on to you by your parents and others with whom you associate. Through this process of growing up in a particular society, you adopt the taints and mannerisms of your cultural group.

(iii) Different meaning

Non-verbal symbols can many meanings. Cross-culture aspects give various meanings to same expression in respect of non-verbal communication.

(iv) Vague and imprecise

Non-verbal communication is quite vague and imprecise. Since in this communication, there is no use of words or language which expresses clear meaning to the receiver.

(v) May conflict with verbal message

Non-verbal communication is so deeply rooted, so unconscious, that you can express a verbal message and then directly contradict it with a nonverbal message.

(vi) Largely unconscious

Non-verbal communication is unconscious in the sense that it is usually not planned nor rehearsed. It comes almost instantaneously.

(vii) Shows feelings and attitudes

Facial expressions, gestures, body movements, the way you use your eyes all communicate your feelings and emotions to others.

(viii) Informality

Nonverbal communication does not follow any rules, formality or structure like other communication. Most of cases people unconsciously and habitually engaged in non-verbal communication by moving the various parts of the body.

Telephone, SMS Communication and Facsimile Communication (FAX)

The transmission of speech over a distance either by electric signals propagated along conductors or by radio signals; a type of telecommunication. Telephone communication permits conversations to be carried on between people (subscribers) separated by almost any distance. The sound waves of a subscriber speaking into the transmitter of a telephone set are converted into electric signals; these signals are transmitted over communications channels and then reconverted into sound waves in the receiver of the listener’s telephone set, thus reproducing speech. The switching of communications channels required to set up temporary connections between subscribers is carried out at central offices either manually, semi-automatically, or automatically.

Importance of Telephone Communication in Business

Person-to-person telephone calls do not command the primary communication role they once had back before the information age blossomed. Businesses have numerous other options for communicating now, such as email, texting and social media. Telephone communication may be slower than its new-media counterparts, but it still has benefits in an increasingly impersonal world. The telephone call, which connects a caller with a human voice, creates a connection that other media may lack and is still an important business component.

(i) Personal and Immediate

Short of talking with someone face-to-face, a phone call is the best way to get a personal response. If the person you called is available, you can take care of business on the spot. With other forms of communication, such as texting or email, you leave a message and hope for a quick response. Phone calls have a vocal backup in the form of voice mail. The caller can leave a detailed voice message, without the restriction of a certain number of characters or typing a text message on a tiny cell-phone keypad.

(ii) Communication is More than Words

A classic article on communication theory, “Inference of Attitudes from Nonverbal Communication in Two Channels,” named three components of effective communication: body language accounts for 55 percent of communication, voice tone for 38 percent and spoken words for just 7 percent. This analysis is still widely accepted as the basis for effective communication today.

On the telephone, the tone you use gives dimension and emotion to words, increasing the effectiveness of the communication. Certain body language, such as smiling and standing while talking, may come through in the conversation. Texting and emails are simply words open to interpretation by the receiver, without the benefit of voice tone or body language.

(iii) The Value of Interactive Communication

Teleconferencing calls bring people together from all over the organization at a fraction of the cost of travel and meeting facilities. Attendees can phone in using a toll-free number and access code to join a virtual conference room where members can interact with the moderator and other members. Conference calls can be used in conjunction with video conferencing to view presentations, ask questions via the internet and discuss answers with all attendees.

(iv) Phone Calls and Confidentiality

Some communications, such as condolences, disciplinary issues, sensitive and confidential issues, should be handled with a personal phone call. Taking the time to make a phone call carries more weight than an impersonal text or email. Without the opportunity for two-way communication, sensitive issues may be misinterpreted. Text messages and emails become legal documents and can be retrieved as evidence long after deletion. Some businesses monitor and record phone conversations between employees and customers for training purposes. Deleted voice-mail messages may not be retrieved and do not leave a record of the conversation.

(v) Safe Use of Phones

Making phone calls while driving may be hazardous, but Bluetooth technology makes hands-free dialing and conversation safe freeing up travel time to provide availability for business calls. Texting and emailing while driving are hazardous and, in some states, illegal.

SMS Communication

Stands for “Short Message Service.” SMS is used to send text messages to mobile phones. The messages can typically be up to 160 characters in length, though some services use 5-bit mode, which supports 224 characters. SMS was originally created for phones that use GSM (Global System for Mobile) communication, but now all the major cell phone systems support it.

While SMS is most commonly used for text messaging between friends or co-workers, it has several other uses as well. For example, subscription SMS services can transmit weather, news, sports updates, and stock quotes to users’ phones. SMS can also notify employees of sales inquiries, service stops, and other information pertinent to their business. Doctors can receive SMS messages regarding patient emergencies.

Fortunately, text messages sent via SMS do not require the recipient’s phone to be on in order for the message to be successfully transmitted. The SMS service will hold the message until the recipient turns on his or her phone, at which point the message will be be sent to the recipient’s phone. Most cell phone companies allow you to send a certain number of text messages every month for no charge. Though it would be a good idea to find out what that number is before you go text message crazy.

Facsimile Communication (FAX)

A fax transmits data electronically over a network connection. Originally this network connection was an analog telephone line, but now the Internet is also being used for this purpose. A document to be sent is treated as an image, scanned and converted into bits and transmitted over the line by the facsimile machine. The facsimile machine on the receiving end takes the whole message in terms of bits and then converts it into image. This image is either displayed onscreen or printed for the user on receiving end to read. Facsimile technology is still in use, but has largely been replaced by email.

Computers and e-Communication Video

In the 21st century, technology plays a huge role in all facets of life, we always turn to computers to access information, create and express ourselves, communicate and collaborate, and track the achievement of learning outcomes. And as a part of smart city technology we must understand all factors of it.

Role of Communication Technology

In the 21st century, technology plays a huge role in all facets of life, we always turn to computers to access information, create and express ourselves, communicate and collaborate, and track the achievement of learning outcomes. And as a part of smart city technology we must understand all factors of it.

So, before we can talk about the importance of computers, we must know all about the role of communication technology.

Information Access

Technology plays a central role in searching for information. Online reference material, such as Encyclopedia Britannica Online, offer vast amounts of content supplemented by engaging multimedia and interactive links. E-book collections offer thousands of texts, and the sheer number of online articles and journals devoted to every imaginable topic make research efficient and highly rewarding. Information technology thus plays a key role in the development of the autonomous learner.

Creativity and Self-Expression

Information and communication technology also plays a role in expressing ourselves. Aided by the digital recording functions integrated into smartphones, tablets and other electronic devices, we are able to index the world the way they see it and add their own perspective to already existing bodies of knowledge to create original work. With audio, photo and video editing software and the various ways to post self-created media on the Web, we can not only access information but also contribute to its creation. The ability to be active members of the learning community, whether on the small scale of a school’s social media site or on the larger canvas of the entire World Wide Web, gives their work broader significance and affirmation.

Communication and Collaboration

Information and communication technology provides more opportunities to communicate and collaborate. With Learning Management Systems such as Blackboard, many courses have an online space to participate in discussion threads and forums, chats, and video conferences. Collaborative functions in office applications allow us to view revisions and add comments in real time, making the process of relaying feedback more efficient.

The importance of computers

Computers are critical for communication and are the centerpiece of information technology. The early 1990s saw the emergence of household Internet use, which eventually spurred common use of email, websites, blogs, social networking, video chat and Voice-Over-Internet Protocol. Today, many traditional communication modes including postal mail and landline phones seem obsolete.

Internet:

The World Wide Web, Internet and email revolutionized the way individuals communicate with each other. Rather than waiting days or weeks to see information, we can now view all information at the speed of light. Email has fundamentally transformed how people share information and conduct business based on the speed and flexibility it offers. Computers can process data at approximately 20 million bytes per second so it is easy for them to download and instantly display almost any text email.

VOIP and Video Chat

Voice-Over-Internet Protocol — or VOIP — replaced the need for landline telephones in many instances. These lines can provide instant phone communication over the Internet, and often are cheaper than fixed phone lines. They also provide the ability to conduct video chats to see whom you are speaking with. VOIP platforms also store contact details for easy accessibility and dialing. The current drawback to VOIP, as of May 2011, is that 911 operators cannot trace the call back to the location.

Social Networking

Social networking sites including Facebook, Twitter, and LinkedIn allow users to rapidly generate content for people in their network to view. Rather than sending individual notes, social networking provides a constant stream of updates and information. These computer tools have taken communication a step further than email due to their ability to instantly communicate life and status updates to an entire network of people who can respond and comment to such notes in real time. Unlike email’s distribution lists — which essentially could transfer the same information to large groups of people — social networking’s streamlined and user-friendly interface precludes information overload that occurs from attempting the same functions in an email program.

Routing

While it is not a personal computer, routers are types of computers used to direct communication traffic. They are crucial to the efficient and correct distribution of calls, emails or another Internet traffic. Routers take “packets” of electronic data and send them in the direction to connect with the intended person. They can be used in the home but are also held in central data warehouses where hubs of traffic are routed in the same place.

Satellite Conferencing

A teleconference or teleseminar is the live exchange and mass articulation of information among several persons and machines remote from one another but linked by a telecommunications system. Terms such as audio conferencing, telephone conferencing and phone conferencing are also sometimes used to refer to teleconferencing.

The telecommunications system may support the teleconference by providing one or more of the following: audio, video, and/or data services by one or more means, such as telephone, computer, telegraph, teletypewriter, radio, and television.

Internet teleconferencing includes internet telephone conferencing, videoconferencing, web conferencing, and augmented reality conferencing.

Internet telephony involves conducting a teleconference over the Internet or a Wide Area Network. One key technology in this area is Voice over Internet Protocol (VOIP). Popular software for personal use includes Skype, Google Talk, Windows Live Messenger and Yahoo! Messenger.

Why Use a Teleconference?

Video conferencing increases efficiency and results in a more profitable use of limited resources. It is a very personal medium for human issues where face-to-face communications are necessary. When you can see and hear the person you are talking to on a television monitor, they respond as though you were in the same room together. It is an effective alternative to travel which can easily add up to weeks of non-productive time each year. With videoconferencing, you never have to leave the office. Documents are available, and experts can be on hand. A crisis that might take on major proportions if you are out of town, can be handled because you’re on the job. Videoconferencing maximizes efficiency because it provides a way to meet with several groups in different locations, at the same time.

As the limited resource of funding has decreased, limited resources now include instructors, parking spaces and buildings. Students now include time as a limited resources. Teleconferencing enables institutions to share facilities and instructors which will increase our ability to serve students.

Electronic delivery is more efficient than physically moving people to a site, whether it is a faculty member or administrator.

  • Save Time: Content presented by one or many sources is received in many places simultaneously and instantly. Travel is reduced resulting in more productive time. Communication is improved and meetings are more efficient. It adds a competitive edge that face-to-face meetings do not.
  • Lower Costs: Costs (travel, meals, lodging) are reduced by keeping employees in the office, speeding up product development cycles, improving performance through frequent meetings with timely information.
  • Accessible: Through any origination site in the world. Larger Audiences: More people can attend. The larger the audience, the lower the cost per person.
  • Larger Audiences: More people can attend. The larger the audience, the lower cost per person.
  • Adaptable: Useful for business, associations, hospitals, and institutions to discuss, inform, train, educate or present.
  • Flexible: With a remote receive or transmit truck, a transmit or receive site can be located anywhere.
  • Security: Signals can be encrypted (scrambled) when it is necessary. Encryption prevents outside viewers.
  • Unity: Provides a shared sense of identity. People feel more a part of the group…more often. Individuals or groups at multiple locations can be linked frequently.
  • Timely: For time-critical information, sites can be linked quickly. An audio or point-to-point teleconference can be convened in three minutes.
  • Interactive: Dynamic; requires the user’s active participation. It enhances personal communication. When used well for learning, the interactivity will enhance the learning and the teaching experience.

Types of Satellite Conferencing

(i) Audio Teleconference

Voice-only; sometimes called conference calling. Interactively links people in remote locations via telephone lines. Audio bridges tie all lines together. Meetings can be conducted via audio conference. Preplanning is necessary which includes naming a chair, setting an agenda, and providing printed materials to participants ahead of time so that they can be reviewed.

Distance learning can be conducted by audio conference. In fact, it is one of the most underutilized, yet cost effective methods available to education. Instructors should receive training on how to best utilize audio conferences to augment other forms of distance learning.

(ii) Audiographics Teleconference

Uses narrowband telecommunications channels to transmit visual information such as graphics, alpha-numerics, documents, and video pictures as an adjunct to voice communication. Other terms are desk-top computer conferencing and enhanced audio. Devices include electronic tablets/boards, freeze-frame video terminals, integrated graphics systems (as part of personal computers), Fax, remote-access microfiche and slide projectors, optical graphic scanners, and voice/data terminals.

Audiographics can be used for meetings and distance learning.

(iii) Computer Teleconference

Uses telephone lines to connect two or more computers and modems. Anything that can be done on a computer can be sent over the lines. It can be synchronous or asynchronous. An example of an asychronous mode is electronic mail. Using electronic mail (E-Mail), memos, reports, updates, newsletters can be sent to anyone on the local area network (LAN) or wide area network (WAN). Items generated on computer which are normally printed and then sent by facsimile can be sent by E-Mail.

Computer conferencing is an emerging area for distance education. Some institutions offer credit programs completely by computer. Students receive texts and workbooks via mail. Through common files assigned to a class which each student can assess, teachers upload syllabi, lectures, grades and remarks. Students download these files, compose their assignment and remarks off-line, then upload them to the common files.

Students and instructors are usually required to log on for a prescribed number of days during the week. Interaction is a large component of the students’ grades.

Through computers, faculty, students and administrators have easy access to one another as well as access to database resources provided through libraries. The academic resources of libraries and special resources can be accessed such as OCLC, ERIC, and Internet.

Administrators can access student files, retrieve institutional information from central repositories such as district or system offices, government agencies, or communicate with one another. Other resources can be created such as updates on state or federal legislation.

(iv) Video Teleconference

Combines audio and video to provide voice communications and video images. Can be one-way video/two-way audio, or two-way video/two-way audio. It can display anything that can be captured by a TV camera. The advantage is the capability to display moving images. In two-way audio/video systems, a common application is to show people which creates a social presence that resembles face-to-face meetings and classes and enables participants to see the facial expressions and physical demeanor of participants at remote sites. Graphics are used to enhance understanding. There are three basic systems: freeze frame, compressed, and full-motion video.

Video conferencing is an effective way to use one teacher who teaches to a number of sites. It is very cost effective for classes which may have a small number of students enrolled at each site. In many cases, video conferencing enables the institution or a group of institutions to provide courses which would be canceled due to low enrollment or which could not be supported otherwise because of the cost of providing an instructor in an unusual subject area. Rural areas benefit particularly from classes provided through video conferencing when they work with a larger metropolitan institution that has full-time faculty.

Through teleconferencing, institutions are able to serve all students equitably.

Way to Overcome Communication Barriers

There are a lot of communication barriers faced these days by all. The message intended by the sender is not understood by the receiver in the same terms and sense and thus communication breakdown occurs. It is essential to deal and cope up with these communication barriers so as to ensure smooth and effective communication.

In order to remove hindrances in the way of communication the following steps are worth consideration:

  1. Clarify Ideas before Communication

The person sending the communication should be very clear in his mind about what he wants to say. He should know the objective of his message and, therefore, he should arrange his thoughts in a proper order.

  1. Communicate According to the Need of the Receiver

The sender of the communication should prepare the structure of the message not according to his own level or ability but he should keep in mind the level, understanding or the environment of the receiver.

  1. Consult Others before Communication

At the time of planning the communication, suggestions should be invited from all the persons concerned. Its main advantage will be that all those people who are consulted at the time of preparing the communication plan will contribute to the success of the communication system.

  1. Be Aware of Language, Tone and Content of Message

The sender should take care of the fact that the message should be framed in clear and beautiful language. The tone of the message should not injure the feelings of the receiver. As far as possible the contents of the message should be brief and excessive use of technical words should be avoided.

  1. Convey Things of Help and Value to the Listener

The subject matter of the message should be helpful to the receiver. The need and interest of the receiver should specially be kept in mind. Communication is more effective in such a situation.

  1. Ensure Proper Feedback

The purpose of feedback is to find out whether the receiver has properly understood the meaning of the information received. In the face-to- face communication, the reaction on the face of the receiver can be understood.

But in case of written communication or some other sort of communications some proper method of feedback should be adopted by the sender.

  1. Consistency of Message

The information sent to the receiver should not be self- contradictory. It should be in accordance with the objectives, policies, programmes and techniques of the organization. When a new message has to be sent in place of the old one, it should always make a mention of the change otherwise it can create some doubts.

  1. Follow up Communication

In order to make communication effective the management should regularly try to know the weaknesses of the communication system. In this context effort can be made to know whether to lay more stress upon the formal or the informal communication would be appropriate.

Similarly, suggestions can be invited in respect of the medium of communication (oral, written and gestural) to know as to which medium would be more effective and appropriate.

  1. Be a Good Listener

It is the essence of communication that both the sender and the receiver should be good listeners. Both should listen to the each other’s point of view with attention, patience and positive attitude. A sender can receive much relevant information by being a good listener.

Listening Skills, Process, Importance, Types, Approaches, Barriers

Listening Skills refer to the ability to actively and attentively receive, understand, and respond to spoken information. It involves not only hearing words but also comprehending their meaning, retaining key points, and responding appropriately. Effective listening requires focus, patience, and the ability to interpret both verbal and non-verbal cues. Active listening, where the listener fully engages by making eye contact, providing feedback, and asking clarifying questions, enhances communication, fosters better understanding, and helps build stronger relationships, both in personal and professional contexts.

Process of Listening Skills:

  • Receiving

The first step in the listening process is receiving the sound or message. This involves hearing the words or sounds that the speaker is conveying. It requires the listener to pay attention and be in a suitable environment to minimize distractions. At this stage, the listener’s focus should be on capturing the message, so they are ready to comprehend the information being shared.

  • Understanding

Once the message is received, the next step is understanding what is being communicated. The listener processes the words, phrases, and ideas in order to make sense of the message. Understanding involves not just recognizing the words but also interpreting the context, tone, and non-verbal cues (like body language or facial expressions) that accompany the spoken words. This stage requires background knowledge, context awareness, and cognitive effort to decode the message.

  • Remembering

For effective listening, the listener must retain the information that has been communicated. This step involves storing the message in memory for later recall. Remembering is crucial because it allows the listener to make sense of the entire conversation and respond appropriately. The ability to recall key points from a conversation, meeting, or lecture ensures that important information is not forgotten and can be applied in future discussions or decisions.

  • Evaluating

Evaluating involves critically analyzing the message received. This step requires the listener to assess the validity, logic, and relevance of the information. It is an active, judgment-based process where the listener may question the speaker’s arguments, detect biases, or look for inconsistencies. In professional settings, evaluating helps in determining whether the speaker’s message aligns with one’s goals, values, or objectives. It also helps in identifying areas for further clarification or action.

  • Responding

Responding is the final step in the listening process. It involves providing feedback to the speaker to show understanding, agreement, or the need for clarification. Responses can be verbal (e.g., asking questions, making comments) or non-verbal (e.g., nodding, maintaining eye contact). A good response demonstrates active listening and helps build effective communication. In this stage, the listener may ask questions, paraphrase the message to confirm understanding, or offer suggestions or opinions based on the received message.

  • Feedback Loop

In many cases, the process of listening is continuous, creating a feedback loop. The listener’s response can prompt the speaker to provide further clarification, making the process iterative. This loop helps ensure that communication is clear, accurate, and engaging. When both the speaker and listener are involved in a back-and-forth exchange, it enhances mutual understanding and ensures that the message is being received and interpreted correctly.

Importance of Listening Skills:

  • Enhances Understanding and Clarity

Active listening ensures that the message being communicated is fully understood. By giving undivided attention to the speaker, listeners can grasp not only the words but also the context, tone, and non-verbal cues, which aid in accurate comprehension. Misunderstandings often occur when listening is passive or distracted, but by listening attentively, the listener can clarify any doubts immediately. This leads to clearer communication and prevents errors or misinterpretations, particularly in complex discussions, instructions, or business meetings.

  • Strengthens Relationships

Effective listening is key to building strong relationships, whether in personal or professional settings. When individuals feel heard and understood, it fosters trust and respect. In conversations, demonstrating genuine interest through active listening shows empathy and validation, which enhances emotional connections. For example, in a workplace, when employees feel that their concerns are acknowledged by their superiors, it leads to better morale and greater job satisfaction. In personal relationships, active listening helps in resolving conflicts and promoting harmony.

  • Improves Problem Solving and Decision Making

Listening skills are essential when addressing problems or making decisions. By carefully listening to various viewpoints, you can collect all the necessary information and identify key issues. This enables more informed decision-making, as it allows for an analysis of different perspectives. For instance, in a team meeting, when all participants actively listen, they can contribute meaningful ideas, leading to better solutions. Listening prevents rushed decisions based on incomplete information, thus enhancing the quality of outcomes and reducing the likelihood of mistakes.

  • Facilitates Learning and Knowledge Acquisition

Listening is a crucial tool for learning, whether in academic, professional, or personal contexts. It allows individuals to absorb and retain new information. In educational settings, students who develop strong listening skills are better able to comprehend lectures, instructions, and discussions, thereby improving their academic performance. Similarly, in professional settings, employees who listen carefully to training or meetings can acquire new skills and stay up to date with industry trends. Active listening also encourages curiosity and the desire to seek clarification when new concepts are presented.

  • Promotes Effective Communication

Listening is a two-way process that complements speaking. Good listening ensures that the speaker’s message is properly received and responded to in an appropriate manner. When individuals practice good listening skills, they can craft more thoughtful responses, ask insightful questions, and engage in meaningful dialogues. This results in more productive conversations and clearer communication. In situations such as negotiations, customer service, or team collaboration, effective listening ensures that the right message is conveyed and that all parties are on the same page.

  • Helps in Conflict Resolution

Listening skills are crucial in resolving conflicts, as they allow individuals to understand the underlying causes of disagreement. When people feel that they are being listened to, it can diffuse tension and open the door to collaborative problem-solving. In conflicts, listening shows respect for the other party’s perspective and helps identify common ground. By understanding the other person’s point of view, solutions can be found that satisfy everyone involved. In personal relationships, being a good listener can prevent small misunderstandings from escalating into larger issues, maintaining peace and cooperation.

Types of Listening Skills:

  • Active Listening

Active listening is a focused and engaged form of listening where the listener is fully involved in the conversation. It requires paying attention, understanding, responding, and remembering what is being said. Active listening also involves providing feedback, such as nodding, making eye contact, and paraphrasing the speaker’s message to ensure understanding. This type of listening helps foster clear communication, builds trust, and encourages an open exchange of ideas.

  • Reflective Listening

Reflective listening involves repeating or paraphrasing what the speaker has said to confirm understanding. It is a type of active listening where the listener reflects the message back to the speaker to ensure accuracy and show empathy. This form of listening is particularly useful in counseling or conflict resolution, as it helps validate the speaker’s feelings and thoughts, creating a supportive and empathetic environment.

  • Critical Listening

Critical listening is the process of evaluating and analyzing the information being presented. The listener actively assesses the validity, logic, and relevance of the message. This type of listening is commonly used in situations where the listener must make decisions or form judgments based on the information they hear, such as in debates, business meetings, or when evaluating arguments. Critical listening requires focus and a keen understanding of the subject matter.

  • Comprehensive Listening

Comprehensive listening involves understanding and retaining information in order to learn or gain knowledge. It is the type of listening used in educational contexts or when receiving instructions. The listener focuses on absorbing the key points, making sense of the information, and organizing it for future use. This listening skill is essential in academic settings, work training sessions, or when learning new concepts.

  • Empathetic Listening

Empathetic listening is used to understand and connect with the speaker on an emotional level. The listener seeks to understand the speaker’s feelings, experiences, and perspectives without judgment. This type of listening is often used in personal relationships, counseling, and support settings. By listening empathetically, the listener can provide emotional support, foster trust, and promote mutual understanding, which strengthens interpersonal relationships.

  • Selective Listening

Selective listening involves focusing on certain aspects of the conversation while ignoring others. The listener selectively tunes in to the most relevant or important parts of the message, often based on their interests or needs. This type of listening can be effective in situations where the listener needs to focus on specific details, but it can also lead to misunderstandings if important information is ignored or missed. Selective listening is common in multitasking environments or when listening to long or complex discussions.

  • Pretend Listening

Pretend listening, also known as pseudo-listening, occurs when the listener gives the appearance of listening but is not actually engaged in the conversation. The listener may nod, make eye contact, or respond with minimal verbal cues, but their attention is elsewhere. While this may appear polite, it often leads to misunderstandings and miscommunication. Pretend listening can occur when someone is distracted or uninterested in the conversation.

  • Discriminative Listening

Discriminative listening is the most basic form of listening, where the listener differentiates between different sounds, tones, and words. It is primarily focused on identifying and understanding individual components of the message, such as recognizing a speaker’s tone of voice, pitch, or emphasis. Discriminative listening is crucial for distinguishing between similar sounds or words, which is essential in language comprehension and effective communication.

Approaches to Listening Skills:

Listening can be classified from a mere show-off to the wholehearted act:

  1. Pretending to listen

In such listening the listener faces the speaker, across the table or on the phone line, as long as he speaks and then switches off without registering the message. This is mere hearing and not listening.

  1. Selective listening

This is the case when one edits the message as takable and not takable. In the case of an important message, selective listening leads to partial fulfillment of the instructions.

  1. Superficial listening

This is the case when the listener takes in only the words but not the spirit of the message. (Some writers classify this as “attentive listening but this is an ironical term. In the normal sense attentive listening is good, while in this technical sense, “attentive listening” means a mere show off of listening. Another such ironical technical term is “precious writing”, which means overuse or inexpert use of decorative words.)

  1. Emphatic listening

This term conveys full emphasis on the act of listening and taking in the entire message in word and spirit. The listener takes in the tone, the pauses, and the body language related to the words. Emphatic listening is necessary to move from one’s preconceived stand. The listener’s openness makes him ready to be influenced.

  1. Dynamic (mutually creative) listening

Here, listening is a creative process in which the listener contributes to the meaning that is being conveyed. He adds his energy to that of the speaker to generate “synergy.” Collective acts are achieved through dynamic listening. It helps to bring out the best in the speaker.

  1. Intuitive listening

Intuition, hunch or sixth sense is the power that is above reason. It leads to a direct insight into the truth. For an intuitive listener, a mere hint, an undertone or a silence is enough to read the other person’s mind.

Intuition is nurtured when one listens to high quality music or finds natural or meditative solitude. Deep listeners have the power to develop a hunch about what is said. A good mother knows a child’s mood by intuitive listening.

Barriers to Effective Listening:

  1. Poor hearing

If one’s sense of hearing is defective, listening is impaired. On becoming aware of it, one should get medical help.

  1. Listener’s chain of thoughts

The mind is almost always active, thinking its own thoughts. These may become rapid and loud from time to time, marring one’s receptivity.

  1. A too heavy message

Use of jargon or over compression of ideas may make an oral message too heavy for the listener.

  1. Rapid or accented talk

One has this experience when listening for the first time to certain foreign radio stations. While the broadcast is clear to the regular listeners and those at home with the speakers’ accent, for others there is a bar to listening.

  1. Listener’s self-importance or prejudice

If the listener has put himself above the speaker, there is no receptive attitude. There is a “know-all” air in the listener and little regard for the speaker. Also, if the listener conceives a prejudice against the speaker, or has prejudices on the topic of the message, the listening is hindered.

  1. Misunderstanding about the role of a listener

Some listeners may not be aware of what their role in a particular situation is. They may think that it is the speaker’s responsibility to explain everything properly. They may belittle their own role as that of a one-way receiver. They may think that the role of the speaker gives the other party an overriding importance.

  1. Cultural gap

If the speaker and the listener have different cultural habits, the listening may be incomplete. The listener may assign different importance to a word or phrase than is meant. While Orientals are used to an elaborate style of addressing a gathering, westerners are often quite brief about it. But this can be distracting to an easterner.

  1. Preoccupations

Some people listen while eating, drinking or doing handiwork. In such cases the attention is divided. A busy manager, for instance, may try to listen while filing papers or opening the mail. This may mar the listening.

  1. Ego

If the receiver considers him superior and is not willing to listen, this ego problem acts as a stumbling block in the listening process.

Cultivating Good Listening Skills

Having effective listening skills means being able to display interest in the topic discussed and understand the information provided. In today’s society, the ability to communicate effectively is becoming increasingly important. Although the ability to speak effectively is a highly sought-after skill, developing effective listening skills is often not regarded in the same respect.

In fact, listening is just as important as speaking. Being a good listener helps solve problems, resolve conflicts, and improve relationships. In the workplace, effective listening contributes to fewer errors, less wasted time, and improved accuracy. Effective listening helps build friendships and careers.

Five ways to improve your listening skills

  1. Face the speaker and give them your attention

It is difficult to talk to someone who is constantly looking around. Make sure to face the speaker, maintain eye contact, and give them your undivided attention. In Western cultures, eye contact is necessary for effective communication. Although shyness, uncertainty, or cultural taboos may inhibit eye contact, try your best to make sure the speaker knows that they have your full attention.

  1. Keep an open mind

Do not judge or mentally criticize what the speaker is telling you. Doing so can compromise your ability to take in what is being said. Never exhibit judgmental behavior, as it compromises your effectiveness as a listener. You can evaluate what was said after the speaker is finished talking, but don’t do so while you are still listening to them.

Let the speaker finish what they are saying and don’t be a sentence-grabber. Interrupting the speaker or prohibiting them from finishing what they are saying can indicate disrespect to the speaker. Often, interrupting the speaker mid-sentence interrupts their train of thought and can easily destroy a productive conversation.

  1. Active listening

Active listening shows the speaker that you’re interested and is an important business communication skill. Using active listening techniques helps to ensure that you correctly understand what is said.

Active listening techniques:

  • Paraphrasing back to the speaker what was said, to show understanding
  • Nonverbal cues (nodding, eye contact, etc.)
  • Verbal affirmations (“I understand,” “I know,” “Thank you,” etc.)
  • Demonstrating concern and establishing rapport
  1. Just listen

Create a mental model of the information, whether it be a picture or an arrangement of abstract concepts. Listen to keywords and phrases and do not rehearse what you are going to say after the speaker is done talking. Think about what the other person is saying rather than what you are going to respond with. It is difficult to think of what you are going to say while also listening to the speaker. Be attentive and relaxed – don’t get distracted by your own thoughts and feelings.

Business Ethics Meaning and Importance

The term ‘Business Ethics’ refers to the system of moral principles and rules of the conduct applied to business. Business being a social organ shall not be conducted in a way detrimental to the interests of the society and the business sector itself. Every profession or group frames certain do’s and do not’s for its members. The members are given a standard in which they are supposed to operate. These standards are influenced by the prevailing economic and social situations. The codes of conduct are periodically reviewed to suit the changing circumstances.

“Business Ethics is generally coming to know what is right or wrong in the work place and doing what is right. This is in regard to effects of products/services and in relationship with the stake holders.” —Cater Mcnamara

“Business ethics in short can be defined as the systematic study of ethical matters pertaining to the business, industry or related activities, institutions and beliefs. Business ethics is the systematic handling of values in business and industry.” :John Donaldson

Business ethics is the study of appropriate business policies and practices regarding potentially controversial subjects including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. The law often guides business ethics, but at other times business ethics provide a basic guideline that businesses can choose to follow to gain public approval.

Business ethics ensure that a certain basic level of trust exists between consumers and various forms of market participants with businesses. For example, a portfolio manager must give the same consideration to the portfolios of family members and small individual investors. These kinds of practices ensure the public receives fair treatment.

The concept of business ethics began in the 1960s as corporations became more aware of a rising consumer-based society that showed concerns regarding the environment, social causes, and corporate responsibility. The increased focus on so-called social issues was a hallmark of the decade.

Since that time period, the concept of business ethics has evolved. Business ethics goes beyond just a moral code of right and wrong; it attempts to reconcile what companies must do legally versus maintaining a competitive advantage over other businesses. Firms display business ethics in several ways.

Importance of Business Ethics

  1. Corresponds to Basic Human Needs

The basic need of every human being is that they want to be a part of the organization which they can respect and be proud of, because they perceive it to be ethical. Everybody likes to be associated with an organization which the society respects as a honest and socially responsible organization. The HR managers have to fulfill this basic need of the employees as well as their own basic need that they want to direct an ethical organization. The basic needs of the employees as well as the managers compel the organizations to be ethically oriented.

  1. Credibility in the Public

Ethical values of an organization create credibility in the public eye. People will like to buy the product of a company if they believe that the company is honest and is offering value for money. The public issues of such companies are bound to be a success. Because of this reason only the cola companies are spending huge sums of money on the advertisements now-a-days to convince the public that their products are safe and free from pesticides of any kind.

  1. Credibility with the Employees

When employees are convinced of the ethical values of the organization they are working for, they hold the organization in high esteem. It creates common goals, values and language. The HR manager will have credibility with the employees just because the organization has creditability in the eyes of the public. Perceived social uprightness and moral values can win the employees more than any other incentive plans.

  1. Better Decision Making

Respect for ethics will force a management to take various economic, social and ethical aspects into consideration while taking the decisions. Decision making will be better if the decisions are in the interest of the public, employees and company’s own long term good.

  1. Profitability

Being ethical does not mean not making any profits. Every organisation has a responsibility towards itself also i.e., to earn profits. Ethical companies are bound to be successful and more profitable in the long run though in the short run they can lose money.

  1. Protection of Society

Ethics can protect the society in a better way than even the legal system of the country. Where law fails, ethics always succeed. The government cannot regulate all the activities that are harmful to the society. A HR manager, who is ethically sound, can reach out to agitated employees, more effectively than the police.

Sources of Business Ethic

In every society there are three sources of business ethics-Religion, Culture and Law. The HR manager in every organization, thus, has to be well versed with the unique system of values developed by these three sources.

These sources are discussed as follows:

  1. Religion

Religion is the oldest source of Religion is the oldest source of ethical inspiration. There are more than ethical inspirations. 1, 00,000 religions which exist across the whole world, but all of them are in agreement on the fundamental principles. Every religion gives an expression of what is wrong and right in business and other walks of life. The Principle of reciprocity towards one’s fellow beings is found in all the religions. Great religions preach the necessity for an orderly social system and emphasize upon social responsibility with an objective to contribute to the general welfare. With these fundamentals, every religion creates its own code of conduct.

  1. Culture

Culture is the set of important understandings that members of a community share in common. It consists of a basic set of values, ideas, perceptions, preferences, concept of morality, code of conduct etc. which creates distinctiveness among human groups. When we talk about culture we typically refer to the pattern of development reflected in a society’s pattern of knowledge, ideology, values, laws, social norms and day to day rituals. Depending upon the pattern and stage of development, culture differs from society to society. Moreover culture is passed from generation to generation. Culture facilitates the generation of commitment to something larger than one’s individual self interest.

Culture encourages the members of the organization to give priority to organizational goals over and above their personal interests. Culture also serves as a sense making and control mechanism that guides and shapes the attitudes and behaviour of people. Managers have to run an industrial enterprise on the cutting edge of cultural experience. The tension that their actions create makes the business ethically more complex.

  1. Law

The legal system of any country, guide the human behaviour in the society. Whatever, ethics the law defines are binding on the society. The society expects the business to abide by the law. Although it is expected that every business should be law abiding, seldom do the businesses adhere to the rules and regulations. Law breaking in business is common eg. Tax evasion, hoarding, adulteration, poor quality & high priced products, environment pollution etc.

Examples of Business Ethics

Here are a few examples of business ethics at work as corporations attempt to balance marketing and social responsibility. For example, Company XYZ sells cereals with all-natural ingredients. The marketing department wants to use the all-natural ingredients as a selling point, but it must temper enthusiasm for the product versus the laws that govern labeling practices.

Some competitors’ advertisements tout high-fiber cereals that have the potential to reduce the risk of some types of cancer. The cereal company in question wants to gain more market share, but the marketing department cannot make dubious health claims on cereal boxes without the risk of litigation and fines. Even though competitors with larger market shares of the cereal industry use shady labeling practices, that doesn’t mean every manufacturer should engage in unethical behavior.

For another example, consider the matter of quality control for a company that manufactures electronic components for computer servers. These components must ship on time, or the manufacturer of the parts risks losing a lucrative contract. The quality-control department discovers a possible defect, and every component in one shipment faces checks.

Unfortunately, the checks may take too long, and the window for on-time shipping could pass, which could delay the customer’s product release. The quality-control department can ship the parts, hoping that not all of them are defective, or delay the shipment and test everything. If the parts are defective, the company that buys the components might face a firestorm of consumer backlash, which may lead the customer to seek a more reliable supplier.

Nature of Business Ethics

The characteristics or features of business ethics are:

  • Code of conduct: Business ethics is a code of conduct. It tells what to do and what not to do for the welfare of the society. All businessmen must follow this code of conduct.
  • Based on moral and social values: Business ethics is based on moral and social values. It contains moral and social principles (rules) for doing business. This includes self-control, consumer protection and welfare, service to society, fair treatment to social groups, not to exploit others, etc.
  • Gives protection to social groups: Business ethics give protection to different social groups such as consumers, employees, small businessmen, government, shareholders, creditors, etc.
  • Provides basic framework: Business ethics provide a basic framework for doing business. It gives the social cultural, economic, legal and other limits of business. Business must be conducted within these limits.
  • Voluntary: Business ethics must be voluntary. The businessmen must accept business ethics on their own. Business ethics must be like self-discipline. It must not be enforced by law.
  • Requires education and guidance: Businessmen must be given proper education and guidance before introducing business ethics. The businessmen must be motivated to use business ethics. They must be informed about the advantages of using business ethics. Trade Associations and Chambers of Commerce must also play an active role in this matter.
  • Relative Term: Business ethics is a relative term. That is, it changes from one business to another. It also changes from one country to another. What is considered as good in one country may be taboo in another country.
  • New concept: Business ethics is a newer concept. It is strictly followed only in developed countries. It is not followed properly in poor and developing countries.

Scope of Business Ethics

Ethical problems and phenomena arise across all the functional areas of companies and at all levels within the company.

1. Ethics in Compliance

Compliance is about obeying and adhering to rules and authority. The motivation for being compliant could be to do the right thing out of the fear of being caught rather than a desire to be abiding by the law. An ethical climate in an organization ensures that compliance with law is fuelled by a desire to abide by the laws. Organizations that value high ethics comply with the laws not only in letter but go beyond what is stipulated or expected of them.

2. Ethics in Finance

The ethical issues in finance that companies and employees are confronted with include:

  • In accounting: window dressing, misleading financial analysis.
  • Related party transactions not at arm’s length
  • Insider trading, securities fraud leading to manipulation of the financial markets.
  • Executive compensation.
  • Bribery, kickbacks, over billing of expenses, facilitation payments.
  • Fake reimbursements

3. Ethics in Human Resources

Human resource management (HRM) plays a decisive role in introducing and implementing ethics. Ethics should be a pivotal issue for HR specialists. The ethics of human resource management (HRM) covers those ethical issues arising around the employer-employee relationship, such as the rights and duties owed between employer and employee.

The issues of ethics faced by HRM include:

  • Discrimination issues i.e. discrimination on the bases of age, gender, race, religion, disabilities, weight etc.
  • Sexual harassment.
  • Affirmative Action.
  • Issues surrounding the representation of employees and the democratization of the workplace, tradeization.
  • Issues affecting the privacy of the employee: workplace surveillance, drug testing.
  • Issues affecting the privacy of the employer: whistle-blowing.
  • Issues relating to the fairness of the employment contract and the balance of power between employer and employee.
  • Occupational safety and health.

Companies tend to shift economic risks onto the shoulders of their employees. The boom of performance-related pay systems and flexible employment contracts are indicators of these newly established forms of shifting risk.

4. Ethics in Marketing

Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation and regulation of marketing. The ethical issues confronted in this area include:

  • Pricing: price fixing, price discrimination, price skimming.
  • Anti-competitive practices like manipulation of supply, exclusive dealing arrangements, tying arrangements etc.
  • Misleading advertisements
  • Content of advertisements.
  • Children and marketing.
  • Black markets, grey markets.

5. Ethics of Production

This area of business ethics deals with the duties of a company to ensure that products and production processes do not cause harm. Some of the more acute dilemmas in this area arise out of the fact that there is usually a degree of danger in any product or production process and it is difficult to define a degree of permissibility, or the degree of permissibility may depend on the changing state of preventative technologies or changing social perceptions of acceptable risk.

  • Defective, addictive and inherently dangerous products and
  • Ethical relations between the company and the environment include pollution, environmental ethics, and carbon emissions trading.
  • Ethical problems arising out of new technologies for eg. Genetically modified food
  • Product testing ethics.

The most systematic approach to fostering ethical behaviour is to build corporate cultures that link ethical standards and business practices.

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