Downward Communication in Business

Downward Communication

Downward communication in business usually dealt with job instructions, rationale, information and feedback. Downward communication is a supervisory communication, which is initiated by the upper management. It flows downward through lithe hierarchy of command. The effective downward communication is crucial to the success of the organization. The management or the supervisory staff has to communicate with the subordinates in order to organize, coordinate and direct the operational aspects of the organization. It is a very suitable channel to the organization in which the ‘chain of command’ is arranged in the ranks that are distinctly one below the other.

Media of Downward Communication

Oral media dominates the downward flow of communication.… Read the rest

Upward Communication in Business

Communication is a process where a message sender intentionally stimulates a desired message in the mind of a receiver. Sometime the speaker’s purpose is to inform, to entertain, and to persuade or is a combination of all three. Understanding from the outset that the intent is to persuade, the communicator will entertain and inform while influencing the receiver to select a specific course of action. Traditional administrators always understood the importance of communication skills. To be successful, they sent messages that clearly outlined what they wanted and how it should be done. They practiced their communication skills daily by sending messages upward, downward and horizontally in the organization.… Read the rest

Consensus and Its Significance in Business

What is Consensus?

The concept of consensus has become quite familiar and desirable means of informal business communication not only in the political fields but also in the commercial spheres as well. It is a common agreement of opinion on a given problem among the majority of people in a group or community. The board meeting of commercial organizations takes certain decisions through consensus. Sometimes, merely a copy of resolution is circulated among the members of a particular group to get their approval. When the decisions are taken unanimously, the unity of the group is recognized. It projects a good image of the business house and the status of the organization is raised.… Read the rest

Composition and Importance of Money Market

Composition of Money Market

The money market is not a single homogeneous market. It consists of a number of sub-markets which collectively constitute the money market. There should be competition within each sub-market as well as between different sub-markets. The following are the main sub-markets of a money market:

  • Call Money Market.
  • Commercial Bills Market or Discount Market.
  • Acceptance Market.
  • Treasury bill Market.

Indian money market was highly regulated and was characterized by limited number of participants. The limited variety and instruments were available. Interest rate on the instruments was under the regulation of Reserve Bank of India. The sincere efforts for developing the money market were made when the financial sector reforms were started by the government.… Read the rest

Money Market – Definition, Features and Instruments

As per the definition of Reserve Bank of India, money market is “a market for short terms financial assets that are close substitute for money, facilitates the exchange of money in primary and secondary market”.

Indian money market was highly regulated and was characterized by limited number of participants. The limited variety and instruments were available. Interest rate on the instruments was under the regulation of Reserve Bank of India. The sincere efforts for developing the money market were made when the financial sector reforms were started by the government.

Money markets are the markets for short-term, highly liquid debt securities.… Read the rest

Characteristic features of a developed Money Market

In every country of the world, some type of money market exists. Some of them are highly developed while others are not well developed. Prof. S.N. Sen has described certain essential features of a developed money market.

  1. Highly organized banking system: The commercial banks are the nerve centre of the whole money market. They are principal suppliers of short-term funds. Their policies regarding loans and advances have impact on the entire money market. The commercial banks serve as vital link between the central bank and the various segments of the highly organized banking system co-exist. In an underdeveloped money market, the commercial banking system is not fully developed.
Read the rest