Class 12 Business Administration Notes · GSEB
Communication
Communication — the two-way exchange of facts, ideas, opinions, and emotions that makes direction possible. GSEB Class 12 Commerce notes covering meaning, characteristics, formal and informal channels, barriers, and remedies.
Last updated: 27 Oct 2026
Notes
Meaning and Reporting
Notes — the key lines
Communication is the exchange of facts, ideas, opinions or emotions by two or more persons. Reporting is one direction of it: bottom to top, in report form. Communication is the whole two-way process: orders down, reports up.
Communication is a process of exchanging words, letters, instructions, thoughts and opinions. The manager must have information from various departments, so the bottom level sends information to the upper level in the form of a report. The process of providing information is known as reporting.
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Communication is an exchange of facts, ideas, opinions or emotions by two or more persons.
Trap — Reporting is only part of communication — an answer that stops at reporting covers half the question.
Nine Characteristics of Communication
Notes — the key lines
Nine characteristics: goal oriented, clear words, two-way, continuous. It uses many equipments and many types and methods, and it motivates. It supports administration and stays a human process.
The objective of communication is not only the exchange of information but also the achievement of objectives. Care is taken that the receiver understands the information as intended.
The words and language used in communication should be clear. They should not carry a double meaning.
Communication is a two-way or bilateral process. Top managers send information about objectives, policy and procedure; the middle and bottom levels send information back in report form.
Communication is continuous and permanent. The process starts from the beginning of the business and continues till the end.
In recent times many equipments are used to make communication more effective: telephone, fax, internet, mobile phone, SMS, telex, along with oral or written messages and correspondence.
There are many types and methods of communication: internal, external, written, oral, and through signs.
Communication increases the understanding of the job among officers and employees, so they are motivated to work more.
Communication relates mainly to the administration of the unit. It is used to collect information for right decisions, proper administration and the solution of administrative problems.
Whatever the medium, communication does not take place without human skills. Fear, feelings and anger affect the message, so it is called a human process.
Trap — "Many equipments" is a characteristic, not the definition — the definition is the exchange that produces understanding.
Key Takeaways
- Communication aims at understanding, not just transmission.
- It is two-way, continuous, and carried by many devices and methods.
- It supports administration and motivates employees.
- It remains a human process: feelings and fear affect the message.
Formal Communication
Notes — the key lines
Formal communication follows the organisation structure, rules and regulations. It links superior and subordinate, is generally written, and serves control and co-ordination. Sender, receiver and form are decided beforehand.
Any communication that depends on the structure of an organisation and its rules and regulations, and is implemented for the accomplishment of the business objective, is formal communication. It is formally linked between superior and subordinate, and its objective is control and co-ordination. It is generally in writing, clear and easy to understand; who will send information to whom, and in what form, is decided beforehand.
Examples
- A notice or memo given as a warning to employees who remain absent without prior permission.
- A letter given by a superior to a subordinate for his transfer or promotion.
In this communication system, superior and subordinates are formally related.
Its clear objective is control and co-ordination.
Formal communication is generally in written form.
This type of communication system is accepted as the policy of the organisation.
It is based on the organisation structure.
Formal organisation is formed for the accomplishment of business objectives.
It is easy and clear to understand.
Trap — Formal does not mean slow or unfriendly — it means recorded and rule-based.
Informal Communication
Notes — the key lines
Informal communication rests on human relations and friendship. It needs no control or order, is flexible, and runs orally or through symbols. It is complementary to formal communication, not a replacement.
A communication system that depends on human relations and friendship among the employees of an organisation is informal communication. It is more flexible and simple, needs no control or order, and can be explained orally or in symbolic language. Informal organisation provides co-ordination and credibility to the organisation.
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Hover a person to see the links that carry the grapevine message.
Examples
- An industrial manager instructs a labourer to work in an easy-going, informal manner.
- A sales manager gives suggestions on a presentation to a salesman while talking casually.
It depends on human relations.
Control or order is not required.
It can be explained orally or through symbolic language.
It depends on personal and friendly relations.
It is flexible and easy.
The process is not important in this communication.
It gives more co-ordination and credibility to the organisation.
Informal communication is not supplementary but complementary to formal communication.
Trap — "Not supplementary but complementary" — the informal channel completes the formal one, it does not rival it.
Formal vs Informal — Side by Side
Notes — the key lines
Compare the same rows across both columns: meaning, purpose, base, control, flexibility, time, advance information. Formal is rule-based, written and planned; informal is personal, oral and situational. The cleanest exam answer is point-by-point, not two paragraphs.
| Aspect | Formal Communication | Informal Communication |
|---|---|---|
| Meaning | Communication system which depends on rules, regulations and the accomplishment of business objectives. | Communication system which depends on human relations and friendship. |
| Purpose | Control and co-ordination. | To give more co-ordination and credibility to the organisation. |
| Base | Exchange of information takes place due to rules and regulations. | Exchange of information takes place due to personal and friendly relations. |
| Control and Supervision | It requires control and supervision. | It does not require control and supervision. |
| Flexibility | It is less flexible. | It is more flexible. |
| Time | It takes place at the workplace during working hours. | It takes place at any place, during or outside working hours. |
| Information in Advance | Sender, receiver and form of communication are decided beforehand. | Form and procedure are not decided beforehand; they follow time and situation. |
Trap — Each difference row needs both sides — writing only about formal communication loses half the marks.
Barriers of Effective Communication
Notes — the key lines
Nine barriers, and all of them are human before technical. Causes: lack of planning, faulty translation, unclear messages, unclear assumptions, shortage of time. Also overburden, ignorance, wrong media, and above all distrust and fear.
The effectiveness of communication depends on the intelligence and loyalty of officers and employees. Communication is a human activity, so human limitations — affection, mistakes, estimation, misunderstanding, distrust and fear — come as barriers to it.
Pick a barrier from the list to read its explanation.
Select a brick to read the barrier. All nine are human before technical.
Trap — Distrust and fear is the barrier that conceals information — the others mostly distort it.
Measures to Overcome the Barriers
Notes — the key lines
Eleven remedies: fit the channel to the structure and keep it unobstructed. Make the message precise, pick the right medium, keep the flow two-way, short and fast. Build mutual trust, avoid unnecessary broadcasting, review the system, keep personal interest out.
- 1Arrange the communication system as per the organisational structure, and do not obstruct the information.
- 2The information given by the sender should be precise, so that the receiver can understand it properly.
- 3Different mediums have different effects; select the appropriate medium of communication.
- 4Communication is a two-way process — arrange it so information flows easily in both directions.
- 5Maintain a feeling of mutual trust and co-operation between the two parties.
- 6Keep the communication channel as short as possible, so the flow does not stop and there is no delay.
- 7The communication system should be fast.
- 8The communication system should be goal-oriented.
- 9Broadcasting unnecessary information increases the burden of communication; broadcast only what is proper.
- 10Evaluate the communication system from time to time, so changes can be made as the situation changes.
- 11During the entire process, the sender should have no personal interest; he should not hide messages, give incomplete information, or present it eccentrically.
Trap — "Any six measures" must be six distinct remedies — a short channel and a fast channel are two different points.
Key Takeaways
- Fit the channel to the organisation and keep it unobstructed.
- Make the message precise and choose the medium deliberately.
- Keep the flow two-way, short, fast and goal-oriented.
- Build mutual trust and avoid unnecessary broadcasting.
- Review the system periodically and keep personal agendas out.
Exam Questions
Exam Questions
Attempt first; then open the answer.