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Question

Give a model of formal communication system that the company can follow. Identify the barriers in this model. How can they be removed?

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Solution

The most suitable model of formal communication system that the company can follow is free fiow. In this network each person can communicate with others freely. The flow of communication is fast in this network.
The common bathers in this model are:
1. Semantic barriers
(a) Badly expressed message (b) Symbols with different meanings
(c) Faulty transactions (d) Unclarified assumptions
(e) Technical jargon (f) Body language and gesture decoding
2. Psychological barriers
(a) Premature evaluation
(b) Lack of attention
(c) Loss by transmission and poor retention
(d) Distrust
3. Organisational barriers
(a) Organisational policy (b) Rules and regulations
(c) Status difference (d) Complex organisation
(e) Organisational facilities
4. Personal barriers
(a) Lack of confidence of superior in his subordinates
(b) Lack of incentives
(c) Fear of authority
(d) Unwillingness to communicate.
These barriers can be removed by taking following measures:
(i) Clarify the idea before communication.
(ii) Communicate according to the need of the receiver.
(iii) Consult others before communicating.
(iv) Use of proper languages.
(v) Proper feedback.
(vi) Communication for present as well as future.
(vii) Follow up.
(viii) Good listener.
(ix) Open mind.
(x) Completeness of message.

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Q. Y limited is a bank functioning in India. It is planning to diversify into insurance business. Lately, the government of India has allowed the private sector to gain entry in the insurance business. Previously, it was the prerogative of LIC and GIC to do insurance business. But now with liberalisation of the economy and to make the field competitive other companies have been given licenses to start insurance business under the regulation of ‘Insurance Regulatory and Development Authority’.
Y limited plans to recruit high quality employees and agents and exercise effective direction to capture a substantial part of life and non life insurance business.

Questions

1. Identify how the company can supervise its employees and agents effectively. What benefits will the company derive from effective supervision?

2. What financial and non-financial incentives can the company use for employees and agents separately to motivate them. What benefits will the company get from them?

3. How can the company ensure that higher order needs i.e. esteem and self-actualisation as specified by Abraham Maslow are met?

4. Identify the qualities of leadership in this line of business that the company managers must possess to motivate employees and agents.

5. Give a model of formal communication system that the company can follow. Identify the barriers in this model. How can they be removed?

6. How can informal communication help to supplement formal communication model given by you in answer to question 5?

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