This method is a combination of discipline and creativity and is a guide to affective communication. PRIDE is and acronym for five “how – to” elements for skillful planning and carrying out any oral or written communication.

P. The purpose that the sender is trying to achieve : the target of mission of the communication. Unless you know your exact purpose, communication failure is automatic.

R. The receiver (or receivers) to whom the communication is directed : the willingness and ability of the reader or listener to understand and accept your message. You must know the psychology and competence of the receiver in order to get anything across to him.

I. The impact which is needed: how your communication must affect the receiver if you are to achieve your purpose and influence him as needed. In other words, you must know what picture you want into the receiver’s head.

D. The design of the communication: how it should be organized and develop to achieve the desired impact. Obviously, you must design your communication in light of the specific situation your confront.

E. The execution of communication : the actual carrying out of your plan from the four preceding steps) to a successful conclusion, Even if you have succeeded in planning purpose, recognizing the receiver, knowing the needed impact and constructing the appropriate design, communication will fall unless it is properly carried out.

The proper use of PRIDE can help in developing method useful throughout the life once this method is learnt and its sequence become habitual.

The communication that takes place within groups – informal channels is called the grapevine. It is a carrier of news and gossips and affects the affairs of the organization in a big way. Some managers considered grapevine as an evil because they think that it spreads rumors and can destroy the morale of the employees. But since grapevine can not be eliminated we must learn to live with it. We can not control it completely but we can certainly influence grapevine.

The main characteristics of grapevine are :
(i) Speed:
As compared to formal communication, the speed of grapevine is fast. In a study it was found that in the case of manager who had an addition in his family at a local hospital at eleven O’ clock at night, by 2 P.M. next day 46% of the whole management group knew of the event. The news had traveled via the grapevine, coffee break in the morning contributing the most.

(ii) Degree of Selectively:
Contrary to general belief grapevine shows a highly selective and discriminating path way. It chooses what interests it.

(iii) Locale of operation:
The company grapevine mostly operates at the place of work, Since management has control over work environment, this phenomenon can be made use of tremendously in influencing worker opinion.

(iv) Relation to Formal Communications:
Formal and informal communication systems trend to be jointly active or inactive. If formal communication is slow, grapevine is slow too. The two supplement each other; formal communications step into stamp seal of authority to it.

Grapevine has certain advantages like the grapevine chain is highly flexible and it travels very fast. Managers should not try to abolish grapevine as it is the nervous system of the communication process in an organization.

What is business environment?
A business organization can not exist a vacuum. It needs living persons, natural resources and places and things to exist. The sum of all these factors and forces is called the business environment.

Business environment is of two types-
(i) Micro environment or the internal environment
(ii) Macro environment or the external environment

(i) Micro environment / Internal Environment of Business
Micro environment comprises of the factors in the immediate environment of the company that affect the performance of the company. In includes the suppliers, competitors, Marketing intermediaries, customers, pressure groups and the general public. Supplier form an important factor of the micro environment of business as the importance of reliable sources of supply are obvious. Supplier include the financial labor input. Stock holders, banks and other similar organizations that supply money to the organization are also termed as suppliers. Managers always strive to ensure a study flow of inputs at the lowest price. Customers are also an important factor in the internal environment of business. The customers or the clients absorb the output of an organization and a business exists to meet the demands of the customers. Customers could be individuals, industries, government and other institutions. Labor force is also an important part of the internal environment of business. Other than these the business associates, competitors, regulatory agencies and the marketing intermediaries are also a part of the micro business environment.

Macro environment / External environment of Business :
The forces and institutions out side of the organization that can potentially affect the performance of the organization come under the external environment of Business. The macro environment of business consist of the economic, demographic, natural, cultural and political forces. The external environment of business is often categorized into the economic environment, political and government environment, socio cultural environment and the international environment.

Socialism is a type of economic system in which the state totally owns or controls the resources and means of production. The basic stress is on the use of these resources for the overall welfare of all members of the society.

The socialistic system followed in Communist countries is characterized by state capitalism but in the democratic socialistic nations a dominant private sector is also present. Under the socialistic system the workers in sectors like industry, agriculture and transport become the joint owners of the means and results of production. As the non-human resources of production are mainly owned by the state or the society it ensures better allocation and utilization of these resources, elimination of unemployment and class struggle. It also reduces the inequality in income. On the other hand socialism can increase Red-tapism, corruption and Bureaucratization.

Capitalism is followed by a large number of countries these days. The countries like USA that are following the capitalist system are leading the world in terms of the level of economic development.

Capitalism follows four basic principles
(i) The doctrine of self interest
(ii) Laisseze Faire policy
(iii) Theory of competitions
(iv) Profit Motive.

Free enterprise, competitions and private ownership of property are some of the features of capitalism. It is also known as the free enterprise economy. A policy of non-interference is adopted by the government in this system. Trade and industry are allowed to take their own course and the government is mainly concerned with the maintenance of law and order in the country.