Business Communication Process in Commertial Bank

Letter of Transmittal December 13, 2010 Ms. Afrins Farid Faculty, School of Business Administration University of Information Technology & Science Motijheel Campus, Dhaka-1000 Dear Madam, In connection of our practical orientation in IFIC Bank Ltd, we would like to submit our report to you. We have prepared this report on the basis of our practical exposure of business communication system at IFIC Bank Ltd. , Head Office, Motijheel, Dhaka. It is great pleasure for us to present this report. IFIC Bank provides various communication systems in banking under the various departments and for this they communicate in different ways.

We acknowledge our shortcomings but we have given our maximum efforts to gather as much relevant information as possible and present it in more representative way. We shall be very glad if the report can serve its actual purpose and we are ready to explain any things to you if necessary. Sincerely yours Md. Kamruzzaman Md. Shamim Ahmed M. M. Arif Pasha Ms. Halima Jahan Chapter-1 INTRODUCTION 1. 1 Introduction “The meaning of your communication is the response you get”-an NPL presupposition. Communication is neither transmission of message nor message itself.

It is the mutual exchange of understanding, originating with the receiver. Communication needs to be effective in business. Communication is essence of management. The basic function of management (planning, organizing, staffing directing and controlling) cannot be performed well without effective communication. Business communication is any communication use to build partnership, intellectual resources, to promote an idea, a product, service or an organization-with the objective of creating value for your business. Business communication involves constant flow of information. Feedback is integral part of business communication.

Organizations these days are verily large. It involves number of people. There are various level of hierarchy in an organization. Greater the number of levels, the more difficult is the job of managing the organization. Communication here plays a very important role in process of directing and controlling the people in the organization. Immediate feedback can be obtained and misunderstandings if any can be avoided. There should be effective communication between superiors and subordinated in an organization, between organization and society at large (for example between management and trade unions).

It is essential for success and growth of an organization. Communication gaps should not occur in any organization. Business communication is goal oriented. The rules, regulations and policies of a company have to be communicated to people within and outside the organization. Business communication is regulated by certain rules and norms. In early times, business communication was limited to paper-work telephone calls etc. But now with advent of technology, we have cell phones, video conferencing, emails and satellite communication to support business communication.

Effective business communication helps in building goodwill of an organization. Economic history shows that development has started everywhere with the Banking system and its contribution towards financial development of a country is the highest in the initial stage. Schumpeter (1933) regarded the Banking system as one of the two main agents (other being entrepreneurship) in the whole process of development. Keynes also emphasized the role of banking services in the process of economic development of a country. Modern Banking system plays a vital role for a nation’s economic development.

Over the last few years the Banking world has been undergoing a lot of change due to deregulation, technological innovations, globalization etc. These changes in the Banking system also brought revolutionary changes in a country’s economy. Present world is changing rapidly to face the challenge of competitive free market economy. It is well recognized that there is an urgent need for better, qualified management and better-trained staff in the dynamic global financial market. Bangladesh is no exceptions of this trend.

Banking Sector in Bangladesh is facing challenges from different angles though its prospect is bright in the future. 1. 2 Background of the Report Our course instructor Ms. Afrins Farid, Faculty, School of Business, UITS, Motijheel, Dhaka, Bangladesh, assigned this report paper to us. This is part of the curriculum of the course “Effective English for Business Communication” offered to us during the MBA program. This is prepared on Communication process of IFIC Bank (Head Office). 1. 3 Objectives of the Report The purpose of this report relates to the course assignment.

The objective is to gather practical knowledge and experiencing the corporate working environment with the close approximation to the business firm and the experts who are leading and making strategic decisions to enhance the growth of a financial institution. To this regard this report is contemplating the knowledge and experience accumulated from course programme. With the set guidelines and proposal by the University of Information Technology and Sciences and with the kind advices of the organization and Course Teacher & Faculty Member of UITS Ms.

Affrins Farid, this assignment gives us a chance to Co-ordinate with theoretical knowledge and the practical experience. Following are of objectives for assignment in the Bank: The broad objective of the report is: ? To evaluate and analyze the Business Communication System of the Bank. The Specific objectives are: ? To evaluate the General Banking activities ? To analyze the service procedure ? To apply theoretical knowledge in the practical field, 1. 4 Scope of the Report This report gives a narrative overview of Communication Process of IFIC Bank Ltd. nd more specifically its general Banking Operations in Bangladesh. Any development of IFIC Bank Ltd. thereafter is out of the scope of the report. This report also explains the internal & external communication procedure of IFIC Bank Ltd. 1. 5 Types and sources of information Necessary information is gathered from both primary and secondary sources to accomplish the report objectives and for preparing this report. These data is gathered from Annual Reports of IFIC Bank, IFIC Bank’s website (www. ificbankbd. om) and policy documents, prospectus, Newspapers, Publications and the Bank’s internal records. Information is also collected from the existing employees of the Bank, which were very helpful for the report. 1. 5. 1 Primary sources i) Face to face conversation with the officer ii) Direct observations. iii) Face to face conversation with the clients iv) Consultation with the Bank’s Personnel 1. 5. 2 Secondary sources: i) Annual Report of IFIC Bank Ltd. ii) Files & Folders iii) Memos & Circulars iv) Various publication on the Bank v) Websites. 1. Methodology The secondary information collected on the practice of effective communication of IFIC Bank Ltd. from their web site, brochures, leaflet, magazines and news papers. Primary data is collected from the survey conducted by us at IFIC Bank Ltd. This study is explorative at IFIC Bank’s communication process. 1. 7 Layout of the Report All necessary parts of conventional formal report have been followed. The organization of this report is quite simple. It has main parts and the ending part which are then further divided into chapters.

The second chapter presents an overview of the Banking History; this part gradually comes down to describe Communication System of the Bank. The report has been presented is the way that a person can get an overall idea about the communication procedure of IFIC Bank Ltd. 1. 8 Limitations of the study While conducting this report we have faced some constrains which we think might interfere with the quality and accuracy of this report. For example: o The analysis is based on some limited data, so it has become difficult to draw a complete figure. The most elementary limitation of this study is the limited number of respondents interviewed. o We have offset with the quality due to time constraint. o The Bank is a busy one having heavy rush of people, whom officers need to deal with them. So allocation of time is very much tough for the officers of the Bank. o Lack of available information and documents to support our study. Chapter-2 Evolution of the Banking Sector 2. 1 Evolution of the Word Bank The word Bank originated from Italian word “Banca” which means long bench.

In ancient time Italian Jews merchant used to do business of lending money by sitting on the bench. It is assumed that the word “bank” derived form the word “Banca”. To meet the expense of war of 1171 A. D on type of credit certificate was launced in Italy at an interest rate of 5%. It was called as “Monte” in Italian language and “Banke” in German language when German language was widely used in Italy. As a result the word “banke” gradually changed to the word “Banca” from which the word “Bank” originated. 2. 2 The Emergence of Modern Banking

The linguistics and etymology suggests an interesting story about banking origins. Both the old French word “Banque” and the Italian word “Banch” were used centuries ago to mean a bench or money changers table. This describes quite well what historians have observed concerning the first Bankers, who lived more that 2000 years ago. They were money changers, sitting usually at table or in a small shop in the commercial district, aiding travelers who came to town by exchanging foreign coins for local money or discounting commercial notes for a fee in order to supply merchants with working capital.

The first bankers probably used their own capital to fund their activities, but it was not long before the idea of attracting deposit and securing temporary loans from wealthy customers became a source of bank funding. Loans were then made to merchants’ shippers and landowners at rates of interests low as 6 percent per annum to as high as 48 percent a month for the riskiest ventures. Most of the early bank was Greek in origin. The Banking industry gradually spread outward from the classical civilizations of the Greece of Rome into northern and western Europe.

The early bank in Europe were places for safe keeping of valuable items (such as gold and silver bullion) as people were fearing loss of their asset due to war, theft, or expropriation by government. When Colonies were established in North and South America, old world banking practices were transferred to the new world. 2. 3 Banking Sector in Bangladesh Since early British rule, the history of banking in Bangladesh territory shows that the traditional trade-networks developed before the banks’ invaded rural areas.

And the Banking services have slowly flourished in Bangladesh territory. Even today, in many places, moneylenders provide credit services. Small shopkeepers and businessman use informal credit at high interest rate, traditional Mahajan’s money lending business gradually declined due to expansion of bank and the Micro Credit programs of NGO’s Co-operative banks and government agencies. 2. 4 An overview of IFIC Bank Limited International Finance Investment and Commerce Bank Limited (IFIC Bank) is a banking company incorporated in Bangladesh with limited liability.

It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government held 49% shares and the rest 51% were held by the sponsors and general public. In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The Government of the People’s Republic of Bangladesh now holds 35% of the share capital of the Bank.

Leading industrialists of the country having vast experience in the field of trade and commerce own 34% of the share capital and the rest is held by the general public. 2. 5 Mission of IFIC Bank To provide services to clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make its position unique in giving quality service to all institutions and individuals. Committed to the welfare and economic prosperity of the people and the community, for it drive from them its inspiration and drive for onward progress to prosperity.

To be the leader among banks in the country and make its indelible mark as an active partner in regional banking operating beyond the national boundary. In an intensely competitive and complex financial and business environment, bank particularly focuses on growth and profitability of all concerned. 2. 6 Management Structure of IFIC Bank Board of Directors of the Bank is a unique combination of both private and Government sector experience. Currently it consists of 13 Directors (excluding Managing Director). The Board is headed by Chairman. The Bank has 2,197 employees and it has 93 branches all over the Bangladesh.

The Bank also affiliated with 3 foreign Banks. The Bank maintains its communication with all the branches as well as with foreign Banks. The thirteen members of the Board of Directors are responsible for the strategic planning and overall policy guidelines of the Bank. Further, there is an Executive Committee of the Board to dispose of urgent business proposals. Besides, there is an Audit Committee in the Board to oversee compliance of major regulatory and operational issues. The CEO and Managing Director, Deputy Managing Director and Head of Divisions are responsible for achieving business goals and overseeing the day to day operation.

The CEO and Managing Director is assisted by a Senior Management Group consisting of Deputy Managing Director and Head of Divisions who supervise operation of various Divisions centrally and co-ordinates operation of branches. Key issues are managed by a Management Committee headed by the CEO and Managing Director. This facilitates rapid decisions. There is an Asset Liability Committee comprising member of the Senior Executives headed by CEO and Managing Director to look into all operational functions and Risk Management of the Bank. Fig.

Map of Bangladesh Showing location of Branches of IFIC Bank Ltd. Chapter-3 BUSINESS COMMUNICATION PROCESS OF IFIC BANK 3. 1 Business Communication system Communication systems are the various processes, both formal and informal, by which information is passed between the managers and employees within a business, or between the business itself and outsiders. Communication—whether written, verbal, nonverbal, visual, or electronic—has a significant impact on the way business is conducted. The basic process of communication begins when a fact or idea is observed by one person.

That person (the sender) may decide to translate the observation into a message, and then transmit the message through some communication medium to another person (the receiver). The receiver then must interpret the message and provide feedback to the sender indicating that the message has been understood and appropriate action taken. The goal of any form of communication is to promote complete understanding of a message. But breakdowns in communication can occur at any step in the process. Business managers need to understand and eliminate the common obstacles that prevent effective communication.

Some of the causes of communication problems in business settings include: differing expectations and perceptions; selectivity (the tendency for individuals to pick and choose what they retain when they receive a message from another person); and distractions (such as ringing telephones, scheduled meetings, and unfinished reports). According to Herta A. Murphy and Herbert W. Hildebrandt in their book Effective Business Communications, good communication should be complete, concise, clear, concrete, correct, considerate, and courteous.

More specifically, this means that communication should: answer basic questions like who, what, when, where; be relevant and not overly wordy; focus on the receiver and his or her interests; use specific facts and figures and active verbs; use a conversational tone for readability; include examples and visual aids when needed; be tactful and good natured; and be accurate and nondiscriminatory. Unclear, inaccurate, or inconsiderate business communication can waste valuable time, alienate employees or customers, and destroy goodwill toward management or the overall business. Your jobs, promotions, and professional reputation often depend on the success or failure of your written and oral communication,” Murphy and Hildebrandt noted. “Especially if your career requires mainly mental rather than manual labor, your progress will be strongly influenced by how effectively you communicate your knowledge, proposals, and ideas to others who need or should receive them. ” 3. 2 History of Business Communications In the early years of corporate America, business managers operated on a strict basis of top-down communications. Whatever the boss or owner of the company said was the law.

In most cases, strategies for doing everything from selling product to dealing with employees would be discussed behind closed doors. Once those decisions were made by managers, lower-level employees were expected to put them into effect. Employees had little input; they did as they were told or found work elsewhere. Such management attitudes, particularly when they applied to worker safety issues in such places as coal and steel mines, led to the growth of labor unions. If nothing else, unions had the power in many cases to slow or shut down production until management listened to demands.

In reaction to union demands, corporations eventually set up communication systems where rank and file members could speak their minds through union representatives. Although the unions provided the impetus for corporate managers to implement such systems, managers eventually realized that employees could have meaningful input into solving company problems. When presented with the opportunity to contribute, many employees jumped at the chance. This sort of feedback came to be called bottom-up communication. In today’s business environment, most corporations encourage employees to take an active role in the company.

Employees who notice ways to improve production are encouraged, and usually rewarded, for passing those ideas on to managers. Employees who submit ideas that withstand intense study can be rewarded with a percentage of the savings to the company. Employees who are harassed on the job are strongly encouraged to report such harassment as far up the chain of management as necessary to stop it. Regular employee meetings are held where the lowest-level employee can stand up and ask the highest-level manager a direct question with the full expectation that a direct answer will be offered in return.

Business managers have also developed a method of monitoring how the company is running while meeting employees halfway. Sometimes called “management by walking around,” this method of communication calls for top managers to get out of their offices and see what is happening at the level where the work is performed. Instead of simply reading reports from subordinates, business owners visit factories or service centers, observe employees on the job, and ask their opinions.

Although the practice is both praised and denigrated regularly by business management experts, this form of communications does serve to keep the boss in touch. 3. 3 Communication Media There are two main media used for communication: written and oral. “If your message requires an immediate answer, an oral channel may be the better choice,” Murphy and Hildebrandt stated. “But if the message contains complicated details and figures or if its subject requires filing for future reference, a written communication is necessary. Written communication systems that might be used within a business include memos, reports, bulletins, job descriptions, posters, employee manuals, and electronic mail. Outside of the business, examples of written communication might include letters, reports, proposals, telegrams, faxes, postcards, contracts, advertisements, brochures, and news releases. Internally, business-people might communicate orally through staff meetings, personal discussions, presentations, telephone calls, or the informal employee grapevine.

Oral communication with those outside of the business might take the form of face to face meetings, telephone calls, speeches, teleconferences, or videoconferences. In addition to written and oral communication, individuals may also communicate through nonverbal means. Each of these types of communication is described below. 3. 3. 1 Written Communication Written communication is very common in business situations, so it is important for small business owners and managers to develop effective written communication skills.

The basic principles of written communication are similar to those for overall communication, such as determining the purpose for writing, analyzing the audience, organizing the message, and proofreading. Since written communication does not usually receive immediate feedback, it is particularly important when using this medium to use simple words and short sentences, and to avoid technical jargon and cliches. Some of the most important business uses of written communications involve persuading the receiver to take some action, such as invest funds in a small business or agree to purchase a product or service.

Persuasive letters have a special organization. According to Murphy and Hildebrandt, they should:1) attract favorable attention from the reader; 2) arouse interest; 3) convince the reader and create desire; and 4) describe the action the reader should take. When the purpose of the letter is to make a sale, it is also important to include facts about the product and a clear central selling point. Above all, it is important that any type of written communication that originates from a business create or enhance goodwill. 3. 3. Oral Communication Small business owners and managers are frequently called upon to make presentations, conduct interviews, or lead meetings, so oral communication skills are another important area for development. Presentations might be made to employees for training purposes, or to potential customers for sales purposes. In either case, good presentation techniques can generate interest and create confidence. Interviewing skills might be needed for hiring new employees, conducting performance appraisals, or doing market research.

Meetings or conferences can be important tools for relating to employees or to interested parties outside of the organization in order to solve problems or set goals. The same principles that apply to other forms of oral communication also apply to telephone calling. It is important to plan business calls by determining the purpose, considering the audience (including the best time to call), and deciding the ideas to be included and the questions to be asked. When answering the telephone in a business setting, it is important to answer promptly and to state your name and department in a clear, pleasant voice.

Communication over the telephone can create impressions that are vital to small business success. An often overlooked element of oral communication is listening. Good listening skills can be vital in finding a solution to grievances or even in making sales calls. Listening involves showing an interest in the speaker, concentrating on the message, and asking questions to ensure understanding. It helps to be prepared for the discussion, to avoid arguing or interrupting, to take notes as needed, and to summarize the speaker’s statements. 3. 3. 3 Nonverbal Communication

Nonverbal communication—such as facial expressions, gestures, posture, and tone of voice—can aid in the successful interpretation of a message. “Sometimes nonverbal messages contradict the verbal; often they express true feelings more accurately than the spoken or written language,” Murphy and Hildebrandt noted. In fact, studies have shown that between 60 and 90 percent of a message’s effect may come from nonverbal clues. Therefore, small business owners and managers should also be aware of the nonverbal clues in their own behavior and develop the skill of reading nonverbal forms of communication in the behavior of others.

There are three main elements of nonverbal communication: appearance, body language, and sound. The appearance of both the speaker and the surroundings are vital in oral communications, while the appearance of written communications can either convey importance or cause a letter to be thrown out as junk mail. Body language, and particularly facial expressions, can provide important information that may not be contained in the verbal portion of the communication. Finally, the tone, rate, and volume of a speaker’s voice can convey different meanings, as can sounds like laughing, throat clearing, or humming. . 4 Communications Technologies Although the form and content of business communications has remained fairly constant in recent years, technology has improved the way management and employees keep in touch with each other. Almost all companies have some regular method of keeping in touch with employees through bulletin boards, newsletters, or magazines. Larger, more technically proficient and geographically spread out companies may also use corporate-produced television shows, interactive Internet sites, or copy-only messages transmitted by closed circuit television.

Some companies distribute electronic mail (E-mail) newsletters or messages, which can be instantly transmitted and placed in every computer wired into the company’s network. Bulletin boards are one of the oldest forms of corporate communications. In the early days, bulletin boards were frequently the only communication that management had with employees. Everything from demands for longer hours to the announcement of new plant openings would be announced on the boards. Today, bulletin boards are not always found in businesses.

Some companies use them for nothing more important than posting legal requirements such as wage and hour rates. Other companies try to make bulletin boards a force for employee recognition and information. The challenge all companies face with bulletin boards is that they fade in the consciousness of employees who get used to seeing them every day. Unless the information is changed regularly and presented in an attractive way, employees can ignore it. Company newsletters and magazines try to address the inability of management to speak to each employee personally.

These forms of written communication explain management policies, announce new products or initiatives, answer questions, and provide each employee with a reminder of what the company is all about. The increased availability and simplicity of desktop publishing systems has made newsletters and magazines an option even for small businesses. In the meantime, closed-circuit, satellite, and videotape-based television have become popular with some larger corporations. Some corporations have spent millions of dollars in developing a television presence that would be difficult to distinguish from the quality produced by regular television networks.

Television is immediate and can quickly grab the attention of employees. For example, a CEO who had to make an emergency announcement to employees could do so within minutes over a television system, while a newsletter or magazine takes weeks to produce. The latest and fastest growing method of corporate communications is electronic mail. E-mail is instantaneous and is available to anyone with a computer terminal. E-mail can be customized to be sent to an individual or to a group of people with a common interest, such as the members of a committee or task force.

It can help internally with scheduling, as well as with exposing managers to employee comments and complaints. E-mail can also be used to communicate with people external to the organization, as can other electronic tools like Internet home pages. 3. 5 The Importance of Good Communication All forms of communication, even the lack of it, can have a significant impact on business dealings. A stiffly-worded, official-sounding memo to employees telling them not to talk to the press about impending litigation could be interpreted as admitting that the company did something wrong.

Management’s repeated “no comments” to employees and the press on a rumored merger may launch dozens of informal discussions about company suitors, how much the company will sell for, and how many employees will be laid off. In order to avoid the negative effects of such scenarios, small business owners should make it a practice to communicate as much and as often as possible. They should think twice before eliminating the company newsletter as a cost saving measure, keep bulletin boards up-to-date, and hold meetings in which employees can ask questions of management.

In addition, they should develop their skills so that all business communications are easily understandable. Management terms and jargon, stiff or flowery language may contribute to the impression among employees that management is talking down to them. It is also helpful to obtain and analyze feedback. Asking employees what they think of communication efforts, which methods are most effective, and whether they want more information can open valuable channels of communication. 3. 6 Types of Business Communication There are two types of business communication in an organization: 1. Internal Communication 2. External Communication . Personal Communication 3. 6. 1 Internal Communication Communication within an organization is called “Internal Communication”. It includes all communication within an organization. It may be informal or a formal function or department providing communication in various forms to employees. Effective internal communication is a vital mean of addressing organizational concerns. Good communication may help to increase job satisfaction, safety, productivity, and profits and decrease grievances and turnover. Under Internal Business Communication types there come; a) Upward Communication b) Downward Communication ) Horizontal/Literal communication 3. 6. 1. 1 Upward Communication Upward communication is the flow of information from subordinates to superiors, or from employees to management. Without upward communication, management works in a vacuum, not knowing if messages have been received properly, or if other problems exist in the organization. By definition, communication is a two-way affair. Yet for effective two-way organizational communication to occur, it must begin from the bottom. Upward Communication is a mean for staff to: o Exchange information o Offer ideas o Express enthusiasm o Achieve job satisfaction Provide feedback Upward Communication in IFIC Bank (Head Office) If any executives need any decision, he then initiates a file from his division and describes the subject with proper information. The file then placed to the decision maker level through proper channel. This is the way of upward communication. 3. 6. 1. 2 Downward Communication Information flowing from the top of the organizational management hierarchy and telling people in the organization what is important (mission) and what is valued (policies). Downward communication generally provides enabling information – which allows a subordinate to do something.

Downward communication comes after upward communications have been successfully established. This type of communication is needed in an organization to: o Transmit vital information o Give instructions o Encourage 2-way discussion o Announce decisions o Seek cooperation o Provide motivation o Boost morale o Increase efficiency o Obtain feedback Downward Communication in IFIC Bank (Head Office) After making/taking, the decision from the specific decision makers, he wrote it on the file note then send it to the related division for execution. 3. 6. 1. 3 Horizontal/Lateral communication

Horizontal communication normally involves coordinating information, and allows people with the same or similar rank in an organization to cooperate or collaborate. Communication among employees at the same level is crucial for the accomplishment of work. Horizontal Communication is essential for: o Solving problems o Accomplishing tasks o Improving teamwork o Building goodwill o Boosting efficiency Horizontal Communication in IFIC Bank (Head Office) To execute some decision, it needs to involve more than one division. Sometimes for perfection the specific division need help from another division for their inter-related task.

Thus the communication between the division to division is known as horizontal communication. 3. 6. 2 External Communication Communication with people outside the company is called “external communication”. Supervisors communicate with sources outside the organization, such as vendors and customers. It leads to better; o Sales volume o Public credibility o Operational efficiency o Company profits It should improve o Overall performancee o Public goodwill o Corporate image Ultimately, it helps to achieve o Organizational goals o Customer satisfaction External Communication in IFIC Bank (Head Office)

For smooth operation and for better service, the bank has to need to communicate with other banks, organizations or even with their valuable clients. This is the part of external communication of the bank. 3. 6. 3 Personal Communication The Top Level Management, Executives, Officers and staffs of IFIC Bank worked like a team. They took advices from others for making perfect decision about the organization. They consult with each other for smooth execution and ever they communicate with their colleagues about their personal problems. 3. 7 Communication Network of IFIC Bank

The Bank is a unique Combination of 2,197 employees. It has 93 branches all over the Bangladesh. The Bank also affiliated with 3 foreign Banks. The Bank maintain its communication with all the branches as well as with foreign Banks. 3. 7. 1 Formal Communication: The main lines of operational communication are the formal communication. The Reports from different division to Top Level Management, information for perfect decision from down to up and order, instruction and messages from up to downward includes formal communication. Sometimes the bank needs to communicate with other bank, organization formally. . 7. 2 Informal Communication: In the bank, sometime execution level need advices for smooth execution of the decision. For this reason, execution level community with the Top Level Management or even with their colleagues informally. 3. 7. 3 Grapevine: Sometimes the executives are directly communicate with the staffs not through the Officers informally. On the other side Officers are directly communicated by Top Level Managements for effective execution. 3. 8 Use of 7’c at IFIC Bank (Head Office) IFIC Bank (Head Office) is significantly a large, reputed and dynamic organization operating business.

Every day, it has to communicate with its client, sales representative, banks, insurance offices, employees, media or business partner through the use of business letter reports, or memorandums. Managers in IFIC Bank (Head Office) applies some of the specific writing principles of 7’c. 3. 8. 1 Courtesy Courtesy is more important and advantageous in business writing than it is in face to face communication or conversation. Courteous message strengthen present relations and make new friends. From the observation, it is found that the employee of the Bank maintain courtesy properly in its all communication process. 3. 8. 2 Consider

Consideration refers to attitude sympathy the human touch and understanding of human nature. Consideration means the message with the receiver in mind. Sender should try to visualize readers their desires problems emotions circumstances and possible reaction to the request. The Bank is considerate in its all communication process. 3. 8. 3 Clear Clarity demands that the business message should be correct concise complete concrete and with consideration. All the type of communication of the Bank is clear. 3. 8. 4 Concise Business executives are dead-busy. They don’t have time to go through unnecessarily lengthy messages.

The writer is a loser if he writes wordy messages because it involves more time and money to type and read. Conciseness makes the message more understandable and comprehensible. The Employee of the Bank maintains concise form of communication. 3. 8. 5 Concrete The business writing should be specific definite unambiguous and vivid rather than vague and general. Concrete form of communication is also maintained by the Bank. 3. 8. 6 Correct To be correct in communication the following principles should be borne in mind. It is found that the Bank communicate correctly. 3. 8. 7 Complete

The message should be complete to bring desirable results. It should include everything the reader needs for the reaction desire. One must know what information reader wants or needs one should be able to know the reader’s background viewpoint needs, attitudes and emotions. The Bank delivers complete type of massage. 3. 9 Barriers in Effective Communication at IFIC Bank (Head Office) The communication model and discussion of barriers to communication provide the necessary knowledge to the Managing Director and employees to take better decision and perform their communication in and outside of the organization.

Any thing that prevents successful communication from taking place is called barriers to communication. Among many, the barriers which affect the dimension of effective business communication at IFIC Bank (Head Office) are briefly described below: 3. 9. 1 Informational Overload The communication environment at IFIC Bank (Head Office) some times becomes over loaded with too much information. This is a bad kind of communication practice that affects the employees to lose concentration on most important orders, activities and messages. 3. 9. 2 Language Barrier Language is itself a barrier in communication at IFIC Bank (Head Office).

Customers from different countries of the world possessing different type of languages face problem with the local employees of the bank. For example a customer from Nepal asking for a special service in an unfamiliar language is not conceived by the front desk Officer. Such kinds of inability to understand the customer’s language sometimes create barriers in the bank communication process. 3. 9. 3 Inability to recognize the receiver’s need Sometimes the Managing Director at IFIC Bank (Head Office) become unable to recognize the needs of their customers, suppliers or other stakeholders.

For example the need and requirements of some specific customers or suppliers are not understood by employees of the bank. Again, if a customer or supplier asking for a unfamiliar service which is not understood by the bank Managenet, there appear another kind of communication barrier. 3. 9. 4 Inadequate feedback Premature evaluation of results is one of the barriers in effective communication. Managing Director at IFIC Bank Limited (Head Office) often assume results on the basis of initial facts and figures which lead to miscommunication.

For example, sometimes IFIC Bank (Head Office) has to take quick decision on some plans and projects like – arranging a “Fair” or cultural event without any prior notices to the event management unit. Because of insufficient time in managing situations like these, premature evaluations disrupt effective communication. 3. 9. 5 Not Listening Again, if a customer looking for or asking for some kinds of service which was not listened accurately by the managers who were thinking about something else at that time. Instead of listening, Managing Director at IFIC Bank Ltd. Head Office) start thinking of ways to enhance their image dominate, to win. This is also generates a different kind communication barrier. 3. 9. 6 Perceptual Barriers The problem with communicating with others is that we all see the world differently. If we didn’t we would have no need to communicate. Similarly, as everyone in IFIC Bank (Head Office) environment- employees, customers, suppliers, sales representatives, media partners, Public Relation Officer, adviser posses an individual way of perceiving and receiving information, they face problem in communication. . 9. 7 Emotional Barriers One of the Chief barriers to open and free communications at IFIC Bank (Head Office) is the emotional barriers. It is comprised mainly of fear, mistrust and of others lie in our childhood and infancy where we were taught to be careful about what we said to others. Chapter-4 SUGGESTIONS & CONCLUSION 4. 1 Suggestions for more effectiveness After surveying IFIC Bank’s communication environment and its barrier, we have suggested to apply the following strategies to achieve Effective Business Communication in the organization like IFIC Bank Ltd.

Facts and figures Employee and managers should be driven by having all the facts and figures to go along with message to perform effective communication. They should not avoid any small details which may be perceived as insignificant. For example, in times of issuing any new orders and instructions, managers should write down all the details of the message to be sure to avoid premature evolutions disturbing effective communication in the bank. Be Complete Managers and employee should try to be complete in all respects of the message whether it is a written message or oral message.

Clients must be provided with the complete picture of any specific services and facilities so that one is able make decision. Listening Clients Listening displays commitment to the client’s needs and wants at business environment at IFIC Bank Ltd. managers and employee should listen first and then speak with the clients to meet their needs and wants. Try to be innovative Manager and employee should always try to be innovative in their ideas, so that they can capture clients or listener’s attention. They should analyze their entire communication processes and find ways to differentiate them from the traditional.

Think before speak Employee and managers must be sure that they have a clear idea about the message they want to convey. It’s better to make an outline in the mind before the words spoken. Be careful with acronyms and technical language Manager and employee should be careful on using common acronyms, words and phrases within their communication environment. If employee or managers dealing with customers, supplier or other related business partners they should try to avoid acronyms and technical words. So those, the level of understanding between the customers and the mangers remain fruitful.

Know the audience Communication at workshops or seminars managers of IFIC Bank Ltd must analyze their audience and receive feedback on whether they are receive feedback whether they are receiving their message from their eye contacts, movements , silence, noise from elsewhere. This will improve active participation, better decision making and enhanced work morale. Patience really is virtue Mangers must be patient with the clients or suppliers while communication some technical or critical facts or feature or at the time of cancellation of different clients service.

It will enforce effective communication to take place in the organization. Put yourself in customers shoes Executives and managers must put shoes themselves in the customer’s shoes in order to identify their needs and problem. It is through the communication that the employees submit their work report, comments, grievances and suggestions to their senior or management. Organization should have effective and speedy communication policy and procedures to avoid delays, misunderstanding, confusion or distortions of facts and to establish harmony among all the concerned people and department. . 2 Conclusion “Any act by which one person gives to or receives from other person information about that person’s needs, desires, perceptions, knowledge, or affective states. Communication may be intentional or unintentional; it may involve conventional or unconventional signals, may take linguistic or non-linguistic forms, and may occur through spoken or other modes. ” Or in simple words; Communication is the exchange of ideas, opinions and information through written or spoken words, symbols or actions.

Communication is a dialogue, not a monologue. In fact, communication is more concerned with a dual listening process. For communication to be effective, the message must mean the same thing to both the sender and the receiver. A communication-oriented approach to understanding human thought and  behavior in organizations must analyze dynamic interaction processes and feature language and meaning as the materials about which people think and with which they make judgments and know which enactments to make.

This point is brought into focus by realizing that enactments cannot be random or without meaning if they are to allow people to engage in the activity of organizing. On a day-by-day basis, as people interact, they gain insight into what is going on in each organization-its priorities and expectations often expressed in reward systems. This information is presented in countless conversations, memos, meetings, and corporate communication vehicles, such as employee newsletters.

Each organization comes alive and becomes meaningful through communication. Drawing conclusions about quality organizations is easy, but knowing how to  implement them is difficult because explanations of why people act as they do can become a tangle of variables and generalizations. Attempts to derive research-based conclusions people can use to guide their behavior, including communication activities, are frustrated by qualifications; what works under one condition may not work under all circumstances.

One objective of organizational studies, then, must be to reduce complex issues to manageable observations that are theoretically sound, testable through research, and built around variables that truly make a difference. This reduction, however, must avoid the kind of simplicity characteristic of lists of “do’s and don’ts” of effective management. EXECUTIVE SUMMERY This report covers the details of the communication systems of IFIC Bank Ltd. Finally the report incorporates an evaluation of the different aspects regarding communication procedure of Bank and makes some recommendations.

Effective business communication is an important element of business and commerce. Communication is variable taken for granted so that much of what employees do each workday may not seem to depend on their ability to communicate but rather on their performance of work tasks such as operating machine and creating and storing information. People do not overtly and intentionally engage in communication, what they do-such as operate a machine-and how they do it serves as information and have impact on other people, internal and external to each organization.

Actions are meaningful and speak loudly; communication occurs when the actions of one person affect another. IFIC Bank Ltd. also provides services to it’s customers through, Credit Risk Management Division and International Division. General Banking Department comprises Account Opening Section, Local Remittance Section, Online service, Deposit Schemes Section, Clearing Section, Collection Section, Cash Section & Accounts Section. Through these sections the department establishes Banker Customer relationship, collects bills for customers remit funds of customers from one place to another, honor cheques.

General Banking Department provides these services in a faster and better manner. IFIC Bank Ltd. also provides services like Retail Banking, Corporate Banking, Trade Finance, Capital Market Operation, Project Finance, SME Finance, Lease Finance, Consumer Finance, Agriculture Finance, Syndication, Financing, Bank Guaranty, Credit and debit Cards etc. During the study it is observed that effective communication systems play a vital role for bank’s effective growth and expansion of business.

Computerization and real time Online banking solution at all branches of IFIC Bank Ltd. is a very bold, positive and progressive step towards modern technology and in the race of survival. IFIC Bank Ltd. is practicing internal , external as well as formal and informal communication in their day to day activities. During study we have found IFIC Bank Ltd. , is facing some communication barriers like information overloads, language, inability to recognize the receiver’s need , premature evaluation and not listening , perceptual and emotional barrier.

Necessary steps has been taken to overcome those barriers including specific facts and figure to complete communication process, improve listening skills, and try to understand customers need and service. We generally hope that our report will aid in understanding about the over all banking operations and communication system of the Bank. ———————– In-Charge, Marketing Dept. In-Charge, Corporate Banking Dept. In-Charge, General Banking Dept. In-Charge, Central Accounts Dept. In-Charge, Support Service Dept. In-Charge, Corporate Communication Dept. SEVP, CC & SS Division

SEVP, Finance & Accounts Division SEVP, Corporate Banking & Marketing Division Deputy Managing Director Managing Director In-Charge, Marketing Dept. In-Charge, Corporate Banking Dept. In-Charge, General Banking Dept. In-Charge, Central Accounts Dept. In-Charge, Support Service Dept. In-Charge, Corporate Communication Dept. SEVP, CC & SS Division SEVP, Finance & Accounts Division SEVP, Corporate Banking & Marketing Division Deputy Managing Director Managing Director In-Charge, Marketing Dept. In-Charge, Corporate Banking Dept. In-Charge, General Banking Dept. In-Charge, Central Accounts Dept.

In-Charge, Support Service Dept. In-Charge, Corporate Communication Dept. SEVP, CC & SS Division SEVP, Finance & Accounts Division SEVP, Corporate Banking & Marketing Division Deputy Managing Director Managing Director Clients Media Lawyer Tax Deptt. Central & Others Bank Fig. Downward communication in IFIC Bank. Insurance Co. Shareholders Vendor Fig. Formal & Informal Communication in IFIC Bank. IFIC Bank Ltd. Fig. Upward Communication in IFIC Bank. Fig. Horizontal Communication in IFIC Bank. Fig. External Communication in IFIC Bank. ( Formal Communication ( Informal Communication

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