Communication process occupies a central place in an organisation. Herbert Simon explains communication as a process whereby decisional premises are transmitted from one member of an organisation to another. Simon believes, “without communication there can be no organisation for there is no possibility then of the group influencing the behaviour of the individual”. In the process, the sender of information seeks to establish commonness with the receiver.
The decision-making process is helped by the organisational communication system. Data and information are transmitted to the decision-maker through the communication channels. The most widely used model about communication has been evolved from the work of Shamon and Weaver. The basic ingredients of the model are a source, an encoder, message channel, a decoder, a receiver and feedback.
The source is generally a member with ideas, information and a purpose for communication. The communication process involves something being sent to a receiver. What the receiver does with the communicated message is the vital part of the whole system. The perceptual process becomes a key element in the understanding of organisational communication.
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Simon opines that even if there is an elaborate system of formal communication, it will always be supplemented by a complementary system of informal communication. In certain situations, information, advice and even orders flow along with informal channels. This informal network of communication is based on social relations within the organisation.
In an organisation, two persons at different levels may be communicating with each other in a way not formally charted out. An informal condition of communication may be created by the social relations like friendship and competitiveness. The phenomenon of informal communication has been acknowledged as the “grapevine” that creates a system of relationships in an organisation, which is different from formal communication.
Simon observes, “The grapevine is valuable as a barometer of ‘public opinion’ in the organisation. If the administrator listens to it, it apprises him of the topics that are subjects of interest to organisation members; and their attitude toward these topics”. Many students, however, reveal that too much reliance on the informal channels may lead to the undermining of the system of formal communication in an organisation.
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In an organisation, there is a need for reliable data and information for decision-making, which is widely acknowledged. For this purpose, organisations are using sophisticated information system. In which they make use of information and communication techno-logy, such as digital devices, web networks and upgraded computer systems.
In communication system, designing information system has grown into a technical profession. An attempt to develop a systematic data leads to collection and storage of useful data, which is relevant to management. The information system in communication is not a mere technique, but it is useful in solving managerial problems.
Thus, data and information, which are necessary for decision-making, have to be organised and streamlined in an organisation, and for its proper supervision, adequate control processes are necessary.