Crisis Communication

Crisis can be defined as “a major catastrophe that may occur either naturally or as a result of human error, intervention or even malicious intent. It can include tangible devastation, such as the destruction of lives or assets, or intangible devastation, such as the loss of an organization’s credibility or other reputational damage. The latter outcomes maybe result of management’s response to tangible devastation or the result of human error.”

Characteristics of Crisis

Crises may hit different organizations in different ways. The impact of crises is also different from one another. However, they do share some common characteristics. They are:

Element of Surprise – A crisis is never an expected event. It takes everyone by surprise.

Insufficient Information – Since a crisis is an unexpected event, no one would have enough information to explain the details right away.

The Quick Pace of Events – In a crisis situation, things happen at very rapid pace and the news of the crisis spreads all over the world very quickly. It is important to stay calm and not panic in such a situation.

Intense Scrutiny – A crisis situation always attracts lot of attention and is a subject of intense scrutiny.

Company Example

The Pepsi Cola Crisis of 1993 is an example which proves the above points. The newspapers came up with the report of a syringe found in one of Pepsi’s products Diet Pepsi. The company suddenly came under the scanner for all wrong reasons. The CEO of Pepsi-Cola Craig E.Weatherup found himself facing the media, the public and also government officials all together. His immediate course of action ensured that the situation was brought under control. His course of action to deal with the crisis ensured that he answered to all the affected constituencies. He used the Media and also the Government to his advantage which helped the company to regain the trust of the public.

Communicating During Crisis

The first thing that has to be done during a crisis situation is not to panic and get control of the situation. This is very important as without control, things can take their own direction and it becomes very difficult to handle the situation later. Next, managers have to gather as much information about the situation possible. The management will have to face the media, public and other affected constituencies sooner or later for which they will need all the information available. A centralized crisis management center will have to be setup. This facilitates the communication process and helps a great deal in handling the situation. Management will then have to communicate with the media, public and all affected constituencies quickly and frequently to keep them updated about the proceedings. The media will have to be dealt with care as they are the management’s window to the world. A major source of information to the public is the media and hence care must be taken in communicating with the media.
The management should also realize that the world moves on despite the crisis and managers should concentrate on continuing the business and bringing things back to normal. Plans should also be made to avoid another crisis immediately and also in future.

Visit the following site to get a detailed crisis communication plan

http://www3.niu.edu/newsplace/crisis.html

My Experience

The Parliament of India came under attack by terrorists on the 13th of December 2001. Although cynics may argue that security lapses allowed the terrorists to get into the premises of the Parliament, terrorists attacks are unexpected and there are examples world-wide to show security lapses in the best of security forces. As soon as everyone realized that terrorists had attacked the Parliament, all the doors leading inside were closed. The Gates of the Parliament were also shut, leaving the terrorists no means of escape. The Rapid Action Force (RAF) and Black Cats - the Para-Military forces of India were immediately alerted and they swung into action in no time and killed all the terrorists. One woman security guard was also killed in the incident. But the immediate action of the Para-Military forces ensured that the terrorists did not damage the Parliament and also everyone inside the Parliament was safe.
This is one crisis situation which was handled very well. The local police alerted the Para-Military forces as soon as the terrorists attacked. This ensured that the best people handled the situation. The forces did not give room for the terrorists to create any further damage. People who were in the Parliamentary surroundings and also Media who were present at the Parliament on that day covering the news were kept at a distance so that the terrorists would not be able to create a hostage situation. After the attacks the Media and the public were given complete information about the attacks. Security measures in and around the Parliament and also around all important government buildings have been increased to prevent such attacks in future.

21st Century Communication Trends

Man has evolved over time. This period of evolution has been categorized based on various categories such as Stone Age, Ice Age, Bronze Age and others. Today we are living in the Information Age. Every living person is in need of some or other kind of Information. Information is needed to be a winner. Communication is essential to share information.
Different companies use different types of communication styles based on the size of the company, area of operation, number of employees/constituencies and others. Few of these styles are discussed below:

Globalization: This trend is followed by companies whose operations are carried out all over the world. This style reduces cost, allows access of information and increases speed of communication and also stresses on growth. This trend is followed to improve international transportation and communication, in search of new markets.

Diversity: This trend is observed due the diverse work force in companies. People migrate from different places of the globe into areas where job opportunities are more and which offer growth in their career. This way, people from different locations, cultures, traditions speaking different languages are seen working in a single company. To facilitate communication in such a company, the diversity trend is followed. This style of communication fosters unity, and also helps in time management.

Flexibility: This trend is observed due to increased need of customized goods, increased diversity in work place and also the increased pace of technology and the markets. Flexibility trend allows better flow of communication, better inter-departmental relationships, saves time and also increases employee performance.

Flat: This trend is followed in companies with fewer levels of management. This trend allows easy communication, easy decision making and low cost management. Workers are empowered to make decisions.

Networked: This trend allows departments within a company to share information quickly. It allows direct communication across unit & firm boundaries, ignoring chain of command, cross-unit team structures, outsourcing & downsizing, strategic alliances with competitors and others. It also brings about flexibility and promotes faceless communication. It also helps employees to work as group by the use of groupwares, client-server and distributed computing. It also gives way for customization and decentralization.

Internal Communications

Consider a steam engine locomotive. Its goal is to transport either the passengers or goods from one place to another. But can the steam alone do these or the engine alone do this? The answer quite blatantly is no. The engine should be aided by the various technical and non-technical parts of the locomotive. Compare this steam engine locomotive to an organization. Its goal is to deliver to the customers and reap profits to the shareholders. The management of the organization can be compared to the steam running the locomotive. But as with the case of the locomotive, the management alone cannot drive the organization. The organization comprises of both the management and employees as its internal constituents. The organization can emerge as a winner only when these two constituents work synergistically. This synergy can be achieved through effective two way communication.

Communication with employees must be in a two way direction wherein employees are not just mere listeners of instructions thrown at them, but are given the freedom to voice their opinions. A two way communication can foster a sense of participation and motivates the employees.
Experts in the field of communication argue that there can never be too much of communication. They say communication always helps increase the efficiency of an organization. The following site provides excellent information regarding internal communications:

http://www.managementhelp.org/mrktng/org_cmm.htm

Some of the ways through which management can communicate with their employees are as follows:

Face-to-Face Meetings

Senior management can hold formal and informal meetings with the employees. Such meetings can be one on one meetings or meeting in a group depending on the size of the organization. Such meetings should be held regularly. This gives the management the opportunity to tackle both company and employees issues directly and maintain good relationship with employees and also in some cases employee unions.

Online Communication

Technology has given the management new ways to communicate with their employees. Management can make use of a company intranet to reach their employees quickly and broadly. It also helps employees to share information among themselves between various departments. However, there a few drawbacks also when using internet technology to communicate with employees. First of all, having a company intranet can be expensive. Financially oriented companies and moderate level companies may think twice before using intranets as means to reach out to their employees. Secondly, when companies do use intranets to communicate, employees may suffer from information overload. Employees are exposed to so much information that they sometimes will have to search for the appropriate information from the amount of information provided to them. Too much information can also lead to ignorance. When one receives too many mails, there is a tendency to read only those mails which we may is very important while ignoring the rest. In doing so, important mails can also be sometimes ignored. Hence internets and intranets must be used effectively and efficiently.

Visual Communication

Technology also allows the management to communicate across the globe visually using Video-Conferencing and Webcasts. Many corporations use television studios with satellite capabilities and staffed by professionals. Video magazines are made available to employees to be viewed over the company intranet. White Boards can also be used for visual communication. White Boards can be used to communicate various data such as production goals, breakdowns, vacation schedules and other information related to the company.

My Experience

When I was working as a Nokia sales executive, the regional marketing team used to call an informal meeting once in every two weeks. During the meeting we were briefed about the new products, accessories, new technologies incorporated in the phones and also new software updates available to the cell phones. We were also given the opportunity to discuss any problems that we faced while working in the Nokia outlets. This made our job a lot easier as the management was able to understand our problems and also aid us in resolving the issue. In some cases, the sales target for the sales executive whose problem could not be solved immediately would also be brought down. We were also invited for important functions and openings of new Nokia outlets. Such meetings and invitations to important functions also gave us an opportunity to interact with various dignitaries. This made us feel as an important unit of Nokia and was also a motivating factor.


Employees are the effective drivers of an organization. They are an important constituency to which the management must address to. Communication with the employees of the organization is very important. Employees feel a sense of empowerment when higher level management personally communicates with lower staff. It acts as a motivating factor and employees are more committed to the organization.

Media Relations

Mass Media – One of the most powerful constituencies that companies must address to. A constituency which can speak for and also against the company to such effects that can influence every other constituency of the company in the way it wants to. Hence, to deal with such a powerful constituency, companies have a separate division in the Corporate Communications department.

Not to long ago, business was not prime source of news and articles for the media. It was an area which was largely ignored. But people’s attitudes have changed today. They understand that business means money, so they are very much interested in knowing what is going on in the world of business everyday. This has brought about a change in the media’s approach to business. Today media cover every angle of business and almost all major companies are being constantly watched by the media. Newspapers have a separate section for business related news, business magazines are selling as quickly as any other magazine, news channels have prime time slots allotted to business related news and blogs are being written daily about various business issues. People from all constituencies such as the public, investors, share holders, employees and government rely on media for information about business. With Media being such an important part of business companies cannot ignore the media. One task of the Media Relations division or the Public Relations division in some cases is to maintain friendly ties with all Media groups and Media personnel. They are in charge of updating the Media about the happenings in the company via press releases, e-mail, and personal interviews. They must also respond to the media calls. It is not only that media are called and given information about the company in press releases; sometimes even the media groups call the company’s media relation’s division when in need of information or personal interviews. When the media relations division does receive such a call, it is important that they respond to it personally and not let it be answered by an operator or the answering machine. Sometimes media may lose interest in such companies and the company loses an opportunity to communicate with the media as well as the public.

Since companies are using the media as channel of communication, they must always think about involving a media relations personnel in the decision making process. This gives the media relations department or the person who is facing the media all information of the discussion. He or she will not have any difficulties later while facing the media. Although it maybe a good idea to use consultants and public relations firms to help the communications department, it is even better idea to use them as sparingly as possible and develop In-House capabilities to deal with the media especially in the long run.
Companies must also give importance to online media. The development of technology means that people seeking information need not wait for the news hour, or the newspaper to get the news. They can simply go online and search, and find all the information they need. Individuals can simply post anything over the net, either positive or negative. Companies must therefore develop strategies to deal with the “Online Media”. The media relations department can delegate a person or a group of people with job of handling the online media.
Companies must also use the media to their advantage when handling negative news about the company or in a crisis situation. In both the above cases, the media can have a huge effect either positive or negative on the company depending on how the situation and the media are handled.

Media Relations helps a company in various stage of product development and sales:

Knowledge stage: Awareness of new information is the first step toward new behavior. News and feature stories can make people aware of the benefits of the product.
Persuasion stage: Frequent news coverage helps companies to persuade the customers to buy the product
Decision stage: News coverage helps people make informed choices about using the product based on expert opinion and others' experiences.
Action stage: News and feature stories can inform people about how to take action, such as how to use the product, where and when to go for services, and how much they cost.
Confirmation and advocacy stage: Coverage in the news media can reinforce individual decisions to buy the product and can serve as a forum for members of the public and opinion leaders to endorse the product and offer testimonials from personal experience.
(Above information from: http://www.infoforhealth.org/pr/J42/j42chap1_2.shtml)

Company Example

Infosys is a MNC operating in different locations of the globe. Hence Media is an important channel for communication for the company’s management. The company uses the media to publish their quarterly reports, report new developments, entry into new markets and other important events. The media relations section also gives links to view the various releases and also philanthropic activities with the IIT-B. Please visit

http://www.infosys.com/media/default.asp


Companies today are continuously being scrutinized by the Media. Today negative news about a company or even rumor attracts more attention than a positive action of the company. Media hence are also on the look out for flaws committed by companies. To deal with such intense media glare, companies must give importance to the media relations department and not just hire an outside firm or the company lawyer or executives from other departments or even an ex-reporter to handle the job of media communications. Even though all people mentioned above are qualified and experienced people, they are not people trained to communicate with the media. Anyone can do the talking, but not everyone can communicate and respond.

My Experience

TATA Steel of India recently bought Corus, a British Steel Firm. The takeover however was not easy with a third Steel Firm CSN from Brazil showing interest to buy Corus. A deal that was supposed to be completed in a month took almost four months before TATA ultimately emerged the winner in an auction. The entire takeover period created doubts and in some cases confusions in the minds of the shareholders and the public. But the Media Relations Department of the TATA group constantly communicated with all the constituencies using the Media to give out details of the takeover. Every development that took place during this period was constantly made known to all by the Media Relations Department. The pricing of each share, the final takeover bid and all others details were constantly updated. The constant information that the public received through the media created a lot of interest in the takeover drama.
The TATA group used the media to keep all of the constituencies informed about the proceedings of the takeover. The TATA group used the media in such a fashion that hardly raised any questions from the various constituencies including the shareholder group. All the doubts and confusions were immediately cleared due to the constant flow of information from the media.

Corporate vs. Product Advertising

Every company has either product or a service to offer to its customers. A company uses various methods to reach its customers of which Advertising is one. What is advertising? Advertising means promoting a product or broadcasting it in various media such as the newspapers, television, radio, magazines or even over the Internet. By doing so, companies make the public aware of their product or service. But this promotes the product the company has to offer but not the company itself. How does the management promote the company? Corporate Advertising is one of the fastest and easiest ways available to the management to promote the company.

Product Advertising is the paid use of the media to promote the particular product or service of the company.

Corporate Advertising is defined as the paid use media that seeks to benefit the image of the corporation as a whole rather than its products or services alone.

Corporate advertising is an umbrella message that a company can use to promote both itself and also its products. A product advertisement on the other hand promotes only the product and not the Company. Product advertisements are the responsibility of the marketing department of a company, whereas the corporate advertising is typically handled by the corporate communications department and is sometimes funded by the CEO’s office.

Why Corporate Advertising?

Corporate advertisements are “feel good ads” used to develop a favorable opinion on the company’s side. The globalization trend has forced companies to go in mergers with other companies or acquire smaller companies. When a company either merges with or acquires another company, they need to explain their new vision, mission and strategy to all the constituencies. Corporate advertising helps companies explain all the above to all the constituencies quickly and easily. Corporate advertising are used by companies to enhance the image and identity of the company and to build the reputation of the company. A good corporate advertisement also differentiates the company from its competitors. Corporate advertising creates goodwill and enhances the reputation of a company. Corporate advertisings are also used by companies to publicize their philanthropic activities. Philanthropic activities are taken up by companies to show their sense of social responsibility and that they aren’t just money-minting machines. Philanthropic activities enhances the reputation of a company among almost all constituencies and publicizing these activities using corporate advertisements lets the public know about the activities undertaken by the companies for the social good. Most of the time companies use the association technique to link their corporations with “good things” which the audience already likes.

(Above information taken from following link: http://webserve.govst.edu/pa/Advertising/Pitch/2-trust_me/corporate_image.htm )

Research has shown that corporate advertising can actually increase the price of the company’s stock. When an advertisement can have such profound effects in the minds of the public, it comes as little surprise that companies today are investing more and more in corporate advertising. Corporate advertising also allows companies to attract investments from investors. In addition CEO’s who can express the coherent vision of the company are preferred by analysts. Hence corporate ad’s targeting the financial community often feature the company’s CEO. Corporate advertising can also influence the sales of the products or services of a company. Corporate advertising can inspire confidence in the consumers. Companies use third party organizations and also celebrities and sports stars endorsements to promote the image and identity of the company. Such endorsements influence the buying habits of customers and hence can also influence sales.

Adidas is one of the leading manufacturers of sports goods, apparels and accessories. Cricket is one of the most influencing aspects in India. Sachin Tendulkar who plays for India is the best batsman in the world today with many records to his name. He is also my favorite cricketer. Lionel Andres Messi is a young, upcoming footballer who plays for Argentina and also the Barcelona Football Club and also my favorite football player. Co-incidentally both the sports stars are the brand ambassadors for Adidas. Provided below is a link to the corporate advertisements of Adidas which feature Sachin Tendulkar and Lionel Messi. Both of them have the same thing to say in the end “Impossible Is Nothing”. These advertisements have a strongly influenced me and I am more inclined to buy sports accessories from Adidas than from any other brands.
Sachin Tendulkar's Adidas Advertisement

http://www.youtube.com/watch?v=6s5lCLGjFDs

A variant of corporate advertising called issue advertising or advocacy advertising is used by companies to influence the opinions of various constituencies. It is used by companies to respond to and also deal with controversies. Companies were very conservative and followed the “closed door policy” towards the media in the 1970’s and 1980’s. This led the media to speculate and publish various reports about companies, some of which had no veracity in them. Media hence were perceived by the companies to be anti-business. To deal with this anti-business media, companies resorted to issue advertising. Such type of advertising does have its drawbacks also. Different communities have different opinions about a company. Since is about dealing with threats and controversies and influencing opinions of the people, issue advertising can influence the opinions of one constituency in favor of the company, but at the same time can also influence the opinions of another constituency against the company.
Employees, among others are also an important constituency which companies must address to. Corporate advertising can give a sense of pride to employees about the organization that they are working for. Corporate advertising helps companies attract the best and the brightest employees both at the entry level and also to senior positions.

Product Advertisements promote the products of a company and can therefore be directly linked to sales. An increase in sales can therefore be correlated to a good product ad. Companies therefore need not think too much when investing in a product ad.

Corporate Advertising aims to bridge the gap between the Company and the Public. Some of the leading magazines even give away awards to companies which come up with the best corporate advertisements and which can have the most influence on the public. Corporate Advertising is a quick way to communicate and reach to public but can also be an expensive one. The relationship between corporate advertising and sales has not been clearly established. In a financially oriented company, corporate advertising can be a difficult decision to make. Management can issue corporate advertisements keeping in mind the long run of the company.

My Experience

Airtel is the leader in GSM services in India. It is also a major market player in landline telephone services, broadband internet services and is now also teaming up with Wal-Mart. Airtel has come up with some of the best corporate ads over the years which have touched me and also inspired me. The corporate ads are in line with the company’s tag-line “Express Yourself” by speaking about the Power of Human Expressions. Click on the link provided below to view one of the Airtel Corporate Advertisements. I am also a Airtel GSM user.



One of the product advertisements which I liked very much was one from textile major Raymonds. The advertisement links the history of the company and its excellent fabric with traditional Indian family values.

Identity, Image and Reputation

Can a company’s logo attract customers? Why is logo so important to a company? How does the logo communicate with the public? Can it enhance the reputation of a company? Why is reputation so important to a company?
These are questions that all companies must focus on. These are questions that all companies must also answer as they are part of the two way communication program.

Identity

Identity is an intangible asset for every company. Identity differentiates a company from its rivals. Constituencies form perceptions based on a company’s identity. Identity must be chosen with care and also must send out a consistent message in all its products, logos, buildings, stationery, uniforms and all other tangible pieces of evidence created by the organization.
Identity helps to differentiate a company from its rivals. When people want to drink a soft drink, why would some people be inclined to buy Coca Cola and others to buy Pepsi? One reason is the Identity. People world over recognize Coca Cola by its bright red colored exterior. When they come across a soft-drink tin-can or a bottle or even a soft-drink hoarding which is red in color, they immediately think Coca Cola, they need not read or study the can, the bottle or the hoarding in detail to know that is a Coca Cola product or a Coca Cola ad.
Second, when they do buy Coca Cola in particular, they seldom address it as Coca Cola, but instead they ask for a bottle of “Coke”. Coke is now the identity of Coca Cola. Coca Cola has now registered Coke as one of its trademarks so that no other company uses it and people do not associate the word “Coke” with any other soft-drink other than Coca Cola itself.

A company’s identity also speaks of the company’s vision for the future. Hence when a company’s chooses a particular identity to be recognized and associated with, they must do so with care. Names and Logos should be chosen which is in line with the company’s vision. Given below are a few companies whose logos and also names speak volumes about the company’s vision.

Identity can be formed by a company’s logo. A logo represents what a company is. It is used to highlight the company’s strongest aspects. A logo is also a registered asset of a company, which helps it to differentiate from its competitors and gives the company its own unique identity and also helps form an Image in the minds of the public.

(Above information taken from the following link: http://www.corporate-identity-logo.com/Logo-competitors.aspxaspx )

One might think the arrow does nothing here. But it says that amazon.com has everything from a to z and it also represents the smile brought to the customer's face.

The SUN Microsystems logo is a wonderful example of symmetry and order. It was a brilliant observation that the letters u and n while arranged adjacent to each other look a lot like the letter S in a perpendicular direction. Spectacular

This logo is too good. For the name Eight, they have used a font in which each letter is a minor adaptation of the number 8

Eighty-20 is a small consulting company which does sophisticated financial modeling, as well as some solid database work. All their work is highly quantitative and relies on some serious computational power, and the logo is meant to convey it.
People first guess that 20% of the squares are darkened, but that turns out to be false after counting them. The trick is to view the dark squares as 1's and the light squares as 0's. Then the top line reads 1010000 and the bottom line reads 0010100, which represent 80 and 20 in binary.



Image

Image on the other hand is how various constituencies perceive the company. It is the reflection of a company’s identity. Different constituencies have different images about a company. Identity of company contributes to image as perceived by various constituencies. Sometimes these perceptions about a company are formed even before they interact with it based on what they have read about the industry or based on experiences of friends relatives and such with the company or its associates. The image of a company can also change after a personal interaction with the company and its associates.

My Experience

I feel Nokia is the best among all the cell phone manufacturers in the world. Many of my friends have different views about Nokia some even prefer other brands for various reasons. But my image about Nokia has been the same. I see Nokia to be user-friendly, a leader in the market and value for money product. Whenever I call the customer care number, their response has been immediate all the times. The customer care employees take all the information possible about me, my cell phone and the confusion or problem I am facing with the cell phone. They have also been successful every time in sorting the problem. Many a times I am also in need of extra details about my cell phone or another model from Nokia itself. The customer care executives have always given complete details and answered all my queries patiently even asked about the same thing repeatedly. This combination of all the above has formed a positive image in my mind about Nokia which is hard to change.
Nokia has also been successful in portraying a consistent and successful identity. People’s first think of Nokia and then other brands when buying a cell phone. When one thinks of Nseries, the only brand that is associated with it is Nokia. The successful combination of image and identity has given Nokia the Reputation that they achieved over the years.

Reputation

Reputation is built when a company successfully aligns Image and Identity. Reputation is different from image because it is built up over time and is not a simple perception at any given point of time. It is different from identity because it is involves both internal and external constituencies. Reputation is an important factor that companies must concentrate on. People are more inclined towards a company with a solid reputation than with a weak or low reputation. Companies with high reputation are hence awarded with high profits. Many of the world’s leading magazines conduct research and survey’s annually and come with results in their issues which rank companies based on their reputation. This again forms an image in the minds of the readers about the top companies. These results are also critical from a company’s point of view as this tells them the areas to work on to further build their reputation. Managers of reputed companies can charge higher or lower prices for their new products and they set the trend in industry for remaining companies. Companies with high reputation also attract the best talent. It also builds loyalty among customers. It also helps companies’ weather crisis more effectively. Companies with high reputation can have more latitude in times of crisis than companies with low reputation.

Companies and managers today are increasingly focusing their attention on Image, Identity and Reputation. They understand that identity is a way to communicate to the public. Identity is a part of image formation in the minds of people. It is also an integral part of reputation building program. Companies with strong and consistent identity generally have positive images among various constituencies. When companies can combine image and identity successfully, they also have a strong reputation.

Communication Technologies

Communication technology changed the way people and organization work. And the way commerce is conducted across organizational boundaries. Internet technologies has also dissolved boundaries and connected organizations of all sizes. In changing the boundary, the “web work style” of using the digital tools and processes enabled both organizations and individuals to redefine their roles. The internet allows a company to focus far more than in the past by changing which employees work within the walls and which work outside in an adjunct, partnering role. The internet makes it possible to deal better with unpredictable demand.

Telephone: This was the major technological tool used for communication. The invention of telephone was radical advancement in science which allowed to people across distance to communicate with each other. Even to this day, telephone, both wire and also wireless is the most popular methods of communication. It is the root technology used in other tools of communication such as the internet.

INTRANET: The organizations are making extensive use of private organization networks (VPN’s), using internet protocols, network connections to share information securely and communicate in a safe and secure mode. Increasingly, intranets are being used to deliver tools and applications, e.g., collaboration (to facilitate working in groups and teleconferencing) or sophisticated corporate directories, sales and CRM tools, project management etc., to advance productivity these are also being used as culture change platforms such as large numbers of employees discussing key issues in an online forums could lead to new ideas. Wal-Mart, Toyota, and IBM are some the organization making use of this technology. The use of this technology helps the organization to develop an effective internal communication. Safety from intruders is assured and the hacker can not easily access the corporate information as there are different layers of security.
E-mail is a technological channel which can be used by one individual to communicate with many people at one time. It is becoming increasingly becoming popular as it is easy and cheaper way of communication.

The use of phone conference is also a very popular today. Many companies have corporate meeting; given the rising cost of travel; face to face is not always accessible. In order to communicate as a group the use of phone conference is very helpful. The use of video conference is also on the rise, as this helps to know who you are speaking to.
Fax is also another communication tool which allows sending and receiving pages of data with in matter of seconds.

Company Example

Web work style has changed business process at Microsoft. It has replaced paper processes with collaborative digital processes thus cutting weeks of budgeting and other operational processes. Groups of people are using electronic tools to act almost as fast as a single person could act, but with the insights of the entire team. Highly motivated teams are getting the benefit of everyone’s thinking. With faster access to information about sales, partner activities, and, most important they are able to react faster to problems and opportunities of their customers.

Link: http://www.microsoft.com/

Communication Theories

Communication is an information related behavior. It is necessary to express one’s needs, desires, and feelings and also to share information. Communication takes three common settings:

Interpersonal: This is face to face communication. One person communicates with another person directly. There is no channel required in this case since it is direct communication.

Machine Assisted: This is indirect communication where-in technology is used in the communication process. Technology is usually used in the form of a channel. A number of channels can be used to communicate with the other person or group. Internet, intranet, memos, notice boards, e-mail, instant messaging are all examples of the channel used to communicate.

Mass: This can either be direct or indirect communication to address a group of people. A person can directly address a group of people without making use of any channels or can also do so by making use of technology and various channels as mentioned above.

Lasswell’s Model

This model was proposed by Lasswell in the year 1948. This is a simple model which explains the flow of information in one direction. It can be easily explained as follows

“Who says what to whom in what channel with what effect.”

Lasswell’s theory had four elements namely the speaker, message, channel and audience. When the process of communication has been completed, it can have different effects on the other person based on the message and the way it has been communicated. It can make the second person either happy or sad or angry or can evoke many different emotions based on the message. This point about effect has been stressed in Laswell’s model.

Shannon and Weaver’s Model

The second communication model was put forth by Claude Shannon who is known as the father of Information Technology together with Weaver. This theory was put forth in the year 1949. In this theory Information or the Message from the source is passed onto the transmitter who/which changes the message/information into a signal. The message is then communicated through the appropriate channel to the receiver. The receiver makes sense of the received signal to understand the message communicated by the source. Shannon and Weaver introduced the important concept of Noise in their theory. Noise is any disturbance or distortion that occurs while transmitting the signal during the process of communication. Since radio was one of the major sources of communication those days, noise was a very important factor. Noise occurred when transmitting the signal through the channel. Noise is a factor that can occur even today during the process of communication.

Schramm’s First Model of Communication

Wilbur Schramm put forth his first model of communication in the year 1954. In this model the source communicates the message which is encoded to the form in which it can be communicated. This is encoded message is then communicated through the channel to the receiver who decodes the message to form in which it can be understood.









Schramm’s Second Model of Communication

Schramm’s second model of communication is an extension of the first model. In his second communication model Schramm introduced the field of experience. The field of experience is important because often when two people communicate, they not be from the same background, cultures, traditions or may even speak to different languages. In such a case the person who receives the message may not necessarily understand it in the way the person who sent the message wanted him to. So, the more the two fields of experience over-lapped the better the understanding between the two individuals would be.

Schramm’s Third Model of Communication

Schramm’s third model of communication is very important as this is the model which introduces the factor of FEEDBACK for the first time. This again is an extension of the first two models. In this model, the message is encoded and sent to the receiver. The receiver in turn decodes the message but not only understands the message gives his/her feedback to the first person in the form of an encoded message.

Westley-Maclean Model of Communication

Bruce Westley and Malcom Maclean drifted from the usual face to face person communication and spoke about group communication. They said a group of people or group of events can be a source of communication. The group people or events use an advocate who then communicates to the audience through the appropriate channel. The theory also shows that feedback from the audience is possible. But feedback from the audience cannot be direct. This has been shown accurately in the graphic representation of the theory. This theory can be applicable in case of face to face communication also.

Kincaid’s Convergence Model

In the convergence model, people or a group communicate to reach a mutual understanding. Information and mutual understanding are the dominant components of the convergence model of communication. Information shared by two or more participants in the communication process may lead to collective action, mutual agreements, and mutual understanding. The convergence model also shows a shift from sharing of messages to sharing of Information. Communication was no longer a single event but a process. Mutual understanding was highly emphasized in the convergence model. People or groups communicated to reach mutual understanding