Statement 1: In order to complete the process of communication it is necessary for the receiver to agree with the message. Statement 2: In communication process encoding precedes decoding.

Statement 1 is incorrect because communication does not require agreement - only understanding. Statement 2 is correct because encoding (converting thoughts to transmittable form) happens at the sender's end before decoding (interpreting the message) at the receiver's end. The correct sequence is encode → transmit → decode.