Business Communication

adapted from

Sehgal & Khetarpal

 INTRODUCTION

• The word communication originates from the Latin word

“communis”, which means “common” and the word
Business stands for any economic activity which is
undertaken with a view to earn profit and the
communication undertaken in the process of this activity
is termed as “Business Communication.

• Definition - Communication is defined as giving,

receiving or exchanging information, opinions or ideas by
writing ,speech, or visual means so that the content or
material communicated is completely understood by
everyone concerned.
 Nature of Communication
- It is a process -Identifiable flow of interrelated events
- It is inevitable - Essential physical, social & psychological
exercise
- It is a dynamic process - Ever changing
- It is meaning based - Link words to create meaning
- It could be intentional / unintentional - Intended /
unintended
- It is systematic -All components are interrelated & affect
one another
- It is a two–way process - Involves 2 people and must
create a response.
- It is a social process - Helps people interact & socialize
- It is a Continuous process - Repeated to achieve desired
results
- It involves interaction and transaction - Share, exchange &
influence
 Cont.d
- Needs proper understanding - for common meaning.
- Leads to achievement of the organizational
objective - helps reach object ( pri. & sec )
- It is contextual - Same Words may give different meanings.
- Dispels misunderstanding - To provide Clear understanding,
and build Camaraderie
- It has four specific skills - Read, Write, Speak & Listen
all equally important.
- It is all pervasive - Important at all levels, types of organizations
- It is spiraling process - Level & Growth not same
it is not linear and static
- It helps share thoughts and ideas, which produce
response - otherwise it will not called communication
- It is the life blood of business - for Existence, Growth & Survival
 Forms of communication

Three broad Categories

1. Internal - Operational
2. External - Operational
3. Personal Communication
Classification of Communication
• Intrapersonal
• Interpersonal
• Group
• Mass
• Verbal - Oral & Written
• Non-Verbal - Body Language , non-verbal Cues
• Meta
• Formal & Informal
• Upward, Downward, Diagonal & Horizontal
 Importance of communication
• Smooth functioning of Business
• Business – To thrive, survive & be viable
• To give directives & achieve results/objectives
• For prompt D/M & Implementation
• To create awareness of products & services and
increase sales thereby ensure business growth.
• To build human relations and enhance morale &
keep employees motivated
• To maintain good external contacts,outside
world.
• Basis for all managerial functions.
 Communication Network
- It is the Flow pattern of communication
- An Analogy of the human body can be drawn

Communication network basis –

1. Direction - Upward ,Downward, Horizontal, Diagonal

2. Expression – Oral & Written
3. Organization Structure – Formal & Informal

Wheel, Y , Chain, Kite, Slash & All channel network.

PROCESS OF COMMUNICATION

The process of communication involves

two or more persons participating through
a medium that carries the information or
message for a particular purpose which is
mutually understood by both the sender
and receiver. Only when these conditions
are fulfilled, a significant communicative
situation will take shape.
 Elements of the Communication
Process

• For the communication process to materialize,

it is essential that the basic elements of
communication be identified. These elements
are:
• Sender/Encoder/Speaker
• Receiver/Decoder/Listener
• Message
• Medium
• Feedback
 Working of the Process of
Communication
• One Way Process
• ONE WAY COMMUNICATION PROCESS
• SENDER ENCODING MESSAGE CHANNEL
DECODING RECEIVER
• Two Way Process
Message

Channel Decoding
Encoding
Receiver
Idea Sender
Encoding of
Decoding of Response
Feedback

Perceived Meaning &

Feedback Internal Response
 SCOPE OF COMMUNICATION

• Communication has unlimited scope which can be understood

under two broad headings:
• External dimension - build relations with external
agencies & stake holders
• Internal dimension- within the firm – Vision,policy,inter
departmental exchange of information

• In addition to external and internal dimensions, the scope of

communication can be further expanded to include:
– Oral and non-verbal communication.
– Interpersonal, intrapersonal and mass communication.
– Human communication.
– Reading, writing, speaking and listening.
 OBJECTIVES/PURPOSE OF
COMMUNICATION
The objectives of business communication would
include the following:
• To inform
• To persuade
• To educate
• To train
• To motivate
• To integrate
• To relate
• To entertain
 FUNCTIONS OF
COMMUNICATION
• Information sharing
• Feedback
• Influence
• Problem solving
• Assists in decision making
• Facilitating change
• Group building
• Gate keeping
• Conveying the right message
• Helps in co-ordination of effort
Cont.d

• Development of managerial skills

• Ensuring effectiveness of policies
• Motivating people Performance
• Feedback
• Job instruction
• Controlling people
• Spreading rumours
• Emotive function
• Good industrial Relations
 7 C’s & 4 S’s of communication
• Courtesy - Politeness to improve relations.
• Clarity - Easy understanding
• Correctness - Ensures confidence
• Consistency - Continuity & Stability
• Concreteness - Confidence reinforcement
• Conciseness - Brevity
• Credibility - Trust Building

1.Simple - Simplicity in Usage of words & ideas

2.Sincerity - Genuine & make believe situation,
3.Short - Economy & brevity, avoid superfluous language.
4. Strength - Conviction of message.
 Benefits of Effective
Communication
• Less misunderstanding
• Increased Awareness
• Improved customer relations
• Healthier business relationships
• Quick Problem solving & Decision –making
• Increased Productivity
• Enhanced Professional image
• Better quality of documents
 EVALUATION OF COMMUNICATION
EFFECTIVENESS

• Communication effectiveness can be

examined in relation to the following
criteria:
• Fidelity of communication
• Economy
• Congruence
• Influence
• Relationship building
 Essentials of effective
communication
• Conceptual clarity
• Language
• Mood & Receptivity
• Planning & Positive approach
• Feedback
• Proper channel
• Cost effective
• Time factor
• Well informed
• Target audience
 ORGANIZATIONAL
COMMUNICATION
• The communication system serves as the vehicle by
which an organization is embedded in its environment. It
keeps the members of the organization informed about
the internal and external happenings which are relevant
and of interest to the organization.

Information to be Communicated in an Organization

Broadly, all business communications can be divided into five
types of informations:
• Statutory information
• Regular work-situation
• Major policy or operational change information
• Information bulletin
• Communication by expectancy
 Importance of Communication in
Management

• Management as a discipline includes

every conceivable form of communication.
• Some Important Functions of Managing
• Forecasting
• Planning
• Organizing
• Instructing
• Coordinating
• Controlling
 Oral Communication
Characteristics
• Instant two-way process
• One off exercise – no record or reference.
• Day to day language used
• Sender & Receiver
• Principles – Clarity, Brevity & Accuracy
• Influence of body language & voice
modulation
• Cannot be rectified/mended
 Methods of oral communication
Individuals
• Face to face conversations
• Interviews
• Telephone conversations
• Grapevine
Groups
 Negotiations
 Meetings
 Lectures , Speeches, Presentations
 Conferences, Speeches & Seminars
 Need for oral communication
• Problem Solving
• Conflict Resolving
• Influencing & Persuading
• Developing Listening skills

“ An individual who can think and not

express what he thinks is at the same level
as an individual who cannot think ”.
Advantages of oral communication
 Immediate feed back
 Better Relationships
 Time Saving
 Tool for persuasion
 Tool for group communication
 Economical & ideal for emergencies
 Check for effectiveness immediately
 Disadvantages of oral
communication
• Lack of retention & documentation
• Distortions
• Legal validity nil
• Possibility of misunderstandings
• Unsuitable for lengthy information
• Constraint of physical barriers
• Difficult to assign responsibility
• Not feasible for a spread out target group.
 Written Communication
Characteristics
• Formal & conventional
• Can document
• Circulation
• Creative Activity
• Presence of sender & receiver not
required at same place & time
• Fewer cycles
• No fixed time limit
 Methods of written communication

• Letters
• Memorandums
• Notices
• Minutes
• Circulars
• Manuals
• Reports
• Contracts
• Complaints
• Manuals
 Advantages
• Ready reference – permanent nature.
• Legal Validity
• Promotes Uniformity
• Mass Access
• Distance communication
• Accuracy with no ambiguity
• Assign responsibility
• Revision & re revision of text.
 Disadvantages
• Limited to literates only
• Time consuming & no immediate
clarification
• Paper work
• Expertise of expression
• Lack of immediate feedback
• Expensive - Stationery, dispatch & man
hours utilized
 Communication Needs in Different Jobs

Job Title Communication Skills

 Secretary  Proficiency and writing skills.

 Finance Associate/Finance  Ability to communicate clearly with clients and others.

 Product Manager  Develop and communicate product strategies.

 Sales Representative  Excellent oral communication, follow up skills and ability to
draft proposals.

 Personnel Manager  General knowledge of proposal preparation: good oral/ written

communication skills.

 Production Manager  Ability to write and read, listening to grievances, ability to

conduct interviews.

 Contracts Administrator  Ability to communicate precisely to employees working under

his supervision.
 Colors Communicate
• Red - Danger, Stop.
• Green - Growth, Go
• Yellow - Friendship
• White - Peace, Purity
• Black - Evil, Dark
• Blue - Calm,Serene
 Non verbal communication
• No words are used.
• Use of symbols, signs, sounds &
expressions
• Communication thru body movements,
physical appearance, voice quality, space
touch & territory.
 Non verbal Communication
characteristics
• Instinctive in nature - Attitudes, Feelings
• No conscious effort – less deliberate
• Subtle – Need skills to understand
• Complements Verbal communication
• Is part of overall communication activity

Many times non verbal communication

speaks louder than words
 CONCLUSION
• Communication is a process of sharing &
understanding information
• Important component of all activities
• Sender, Message, Receiver, Channel &
feedback are elements of communication
process, so also encoding & decoding.
• Reading, Writing, Speaking & Listening are the 4
skills of communication
• Facilitates all management functions
• It is the Lifeblood of an organization.