Business

Communicatio
n
Unit – I
Prepared By – Ketki
Khera
 Conten
t of
• Meaning & Objective
Business Communication
• Forms of Communication
• Communication model
• Communication Process
• Principles of effective
communication
Communicatio
n The word
"communication' is
derived from Latin word
"communis", which
means common.
Thus, communication
signifies sharing of ideas
in common.
 How do you
• define…
Communication is a process of passing information
and
understanding from one person to another.
-Keith Davis

• Communication is a bridge of meaning. It involves a

systematic and continuous process of telling, listening and
understanding.
-Louis Allen

• Communication is an exchange of facts, ideas, opinions

or emotions by two or more persons.”
-W. H. Newman
Characteristics
Of
Communication
Two-Way Continuous Dynamic
Communication Process Process

Pervasive Goal Oriented Exchange

Mutual
Understanding
 Meaning Of
Business
Communication
• Business Communication is the process of passing
information and understanding from one person to
another. it is the process of imparting ideas and making
oneself understood by others. Communication may be
defined as interchange of thought or information to bring
about mutual understanding and confidence.

• Business communication is one of the important

elements to grow business. The goal of communicators is
to convey their thoughts in the mind of people.
Business communication plays a vital role in the growth
of the business.
Importance Of
Business
Communications
Timely and accurate decisions

Facilitate proper planning and coordination

Overcoming Organizational conflicts

Uninterrupted working

To encourage action and to earn employee

loyalty

Helps in decentralization and delegation of

authority
Participative working

Binding force

Helps in molding attitudes

Means to achieve end

Enables organization to become dynamic

To face emerging challenges

• Timely and accurate decisions: Communication facilitates
business management to take important decisions at the right
time. The management communicates the organizational
policies, rules and procedures to the lower levels and get
feedback about the performance.

• Facilitate proper planning and coordination:

BusinessCommunication facilitates effective planning and
coordination of activities. One of the important preconditions
in planning is to get the things done and this can be possible
through exchange of ideas, plans and policies.

• Overcoming Organizational conflicts: “Most of the conflicts

in business are not basic but are caused by misunderstanding
and ignorance of the facts.”
• Uninterrupted working: Effective channel of
communication ensures smooth functioning of the under
taking.

• To encourage action and to earn employee loyalty: It is

also meant to increase employee morale and to promote
employee loyalty, cooperation and dedication. It is the
method of persuading people towards the achievement of
common objectives of business.

• Helps in decentralization and delegation of authority:

Communication is the means by which the act of delegation
is accomplished. Decentralization needs an increase in the
communication system.
• Participative working: Democratic functioning of
management requires frequent communication so that the
problems and grievances from the workers, consumers,
shareholders, suppliers of materials, and other categories of
the people who have direct interests in the activities of the
organization could be solved in time.

• Binding force: Business Communication is the force that

binds the people of an organization together since it attains a
common view point and understanding among the people to
work together.

• Helps in molding attitudes: It is the effective business

communication that helps in molding the attitudes of the
workers in order to persuade, convince and influence
behaviour. Business Communication helps to increase
cooperation of
employees.
• Means to achieve end: Communication assists in achieving
business goals through inform, connect, educate, stimulate,
persuade, reassure and integrate.

• Enables organization to become dynamic: In today's

business environment organizations must develop ability to
cope with change. Business organization work60 through
mergers, acquisitions, pools, combinations in an
environment where customer loyalty is ever changing,
employees turnover is increasing and capital is moving fast.

• To face emerging challenges: Organizations facing new

situations that ever require a need for new approach to
communication. Due to emerging knowledge, creativity,
innovation and learning- new situations and opportunities
are developing.
Objectives Of
Business
Communication
Internal External
Objectives Objective
s
• Information to • Sale of
management Goods and
• Information to services
employees • Relations with
• Co-ordination suppliers
• Improvement in • Information to
morale other parties.
 Internal
• Objectives
Information to management: The function of Business
Communication is to convey to the management various
important facts and information pertaining to business so
that they are in a better position to take appropriate and
timely business decisions; which ensure the progress of
enterprise.
• Information to employees: Communication creates
harmonious business environment. It is helpful in
developing better relations between management and staff.
Communication is instrumental in conveying the feelings,
sentiments and attitudes of one party towards other party.
• Co-ordination: Communication helps in creating co-
ordination among different groups of people operating
within the business. Individuals and groups come to know,
what others are expecting from them with the help of
communication.

• Improvement in morale: Every business formulates its

own policies and programmes. The information regarding
these policies and programmes is conveyed to employees
through communication. Communication helps in
improving the morale of the employees, once they are made
aware of their role in business firm. This also awakens the
sense of security and provides work satisfaction to
employees.
 External
Objectives
• Sale of goods or services: Most of the profit earned by any
business firm is earned through purchase and sale of goods or
services. These activities take place because of business
communication. The owner is in a better position to
communicate to the customers the quality of the products.
Advertisements, correspondence or encouraging customers at
personal level are not possible without business
communication.

• Relations with Suppliers: Communication helps in conveying

the suppliers the requisite information about the kind of raw
materials, its quantity, time of supply, conditions, payment and
other terms of supply.
• Information to other parties: Business firm has to establish
rapport with banks, government authorities, telephone staff,
researchers and other business establishment during the
course of its business. All this is possible with the help of
business communication.
Principles Of
Communication
Principle of Principle of Principle of
Clarity Attention Feedback

Principle of Principle of Principle of

Informalit Consistency Timeliness

y
Principle of
Adequacy
• Principle of Clarity: The idea or message to be
communicated should be clearly spelt out. It should be
worded in such a way that the receiver understands the
same thing which the sender wants to convey. There
should be no ambiguity in the message. It should be kept in
mind that the words do not speak themselves but the
speaker gives them the meaning.

• Principle of Attention: In order to make communication

effective, the receiver’s attention should be drawn towards
message. People are different in behaviour, attention,
emotions etc. so they may respond differently to the
message. Subordinates should act similarly as per the
contents of the message. For example, if a superior is very
punctual in coming to the office then subordinates will also
develop such habits. It is said that ‘actions speak louder
than words.
• Principle Feedback: T he principle feedback
very
of importantof to make the communicationis effective.
There should be a feedback information from the
recipient to know whether he has understood the
message in the same sense in which the sender has meant
it.
• Principle of Informality: Formal communication is
generally used for transmitting messages and other
information. Sometimes formal communication may not
achieve the desired results, informal communication may
prove effective in such situations. Management should
use informal communication for assessing the reaction of
employees towards various policies. Senior management
may informally convey certain decisions to the employees
for getting their feedback.
• Principle Consistency: T his principle states that
communication
of should always be consistent with the
policies, plans, programmes and objectives of the
organization and not in conflict with them. If the
messages and communications are in conflict with the
policies and programmes then there will be confusion in
the minds of subordinates and they may not implement
them properly.

• Principle of Timeliness: This principle states that

communication should be done at proper time so that it
helps in implementing plans. Any delay in
communication may not serve any purpose rather
decisions become of historical importance only.
• Principle of Adequacy: The information communicated
should be adequate and complete in all respects.
Inadequate information may delay action and create
confusion. Inadequate information also affects efficiency of
the receiver. So adequate information is essential for taking
proper decisions and making action plans.
7C’s Of
Communication
 1.
Clarity
Clarity implies emphasizing on a specific message or goal
at a time, rather than trying to achieve too much at once.
Clarity in communication has following features:

• It makes understanding easier.

• Complete clarity of thoughts and ideas
enhances the meaning of message.
• Clear message makes use of exact,
appropriate and concrete words.
2.
Completeness
The communication must be complete. It should convey all facts
required by the audience. A complete communication has following
features:
• Complete communication develops and enhances reputation
of an organization.
• Moreover, they are cost saving as no crucial information is
missing and no additional cost is incurred in
conveying
• extra message if communication
A complete the communication
always is complete.
gives
information
additional wherever required. It leaves no questions in the
mind of receiver.
• Complete communication helps in better decision-making by
the audience/readers/receivers of message as they get all
desired and crucial information.
• It persuades the audience.
 3.
Conciseness
Conciseness means wordiness, i.e, communicating what
you want to convey in least possible words. Conciseness is
a necessity for effective communication.
• It is both time-saving as well as cost-saving.
• Itunderlines and highlights the main message as
it avoids using excessive and needless words.
• Concise communication provides short and
essential message in limited words to the audience.
• Concise message is more appealing and comprehensible
to the audience.
• Concise message is non-repetitive in nature.
 4.Concretene
ss communication implies
Concrete being particular and
clear rather than fuzzy and general. Concreteness
strengthens the confidence. Concrete message has
following features:

• It is supported with specific facts and figures.

• It makes use of words that are clear and that build
the reputation.
• Concrete messages are not misinterpreted.
 5.
Courtesy
Courtesy in message implies the message should show the
sender’s expression as well as should respect the receiver.
The sender of the message should be sincerely polite,
judicious, reflective and enthusiastic. Courteous message has
following features:
• Courtesy implies taking into consideration both
viewpoints as well as feelings of the receiver of the
message.
• Courteous message is positive and focused at the audience.
• It makes use of terms showing respect for the receiver of
message.
• It is not at all biased.
6.
Correctness
Correctness in communication implies that there are no
grammatical errors in communication. Correct
communication has following features:

• The message is exact, correct and well-timed.

• If the communication is correct, it boosts up the confidence
level.
• Correct message has greater impact on
the
audience/readers.
• It checks for the precision and accurateness of facts
and
figures used in the message.
• It makes use of appropriate and correct language in
the message.
7.
Consideration
Consideration implies “stepping into the shoes of others”.
Effective communication must take the audience into
consideration, i.e, the audience’s view points, background,
mind-set, education level, etc. Modify your words in message
to suit the audience’s needs while making your message
complete. Features of considerate communication are
as follows:
• Emphasize on “you” approach.
• Empathize with the audience and exhibit interest in
the
audience. This will stimulate a positive reaction from the
audience.
• Show optimism towards your audience. Emphasize
on
“what is possible” rather than “what is impossible”.
Lay
stress on positive words such as jovial, committed, thanks,
warm, healthy, help, etc.
7C’s Of Communication Explanation at a glance

Clarity Emphasizing on a specific message or goal at a time

Completeness Should convey all facts required by the audience

Communicating what you want to convey in least

Conciseness possible words.
Being particular and clear rather than fuzzy
Concreteness and general
Message should show the sender’s expression as
Courtesy well as should respect the receiver.

Correctness No grammatical errors in the communication

Consideration Stepping into the shoes of others

Communication
Process
Communication
Process
• Sender: The sender or the communicator is the person who
initiates the conversation and has conceptualized the idea that
he intends to convey it to others.

• Encoding: The sender begins with the encoding process

wherein he uses certain words or non-verbal methods such as
symbols, signs, body gestures, etc. to translate the
information into a message. The sender’s knowledge, skills,
perception, background, competencies, etc. has a great impact
on the success of the message.

• Message: Once the encoding is finished, the sender gets the

message that he intends to convey. The message can be
written, oral, symbolic or non-verbal such as body gestures,
silence, sighs, sounds, etc. or any other signal that triggers
the response of a receiver.
• Communication Channel: The Sender chooses the medium
through which he wants to convey his message to the recipient.
It must be selected carefully in order to make the message
effective and correctly interpreted by the recipient. The choice
of medium depends on the interpersonal relationships between
the sender and the receiver and also on the urgency of the
message being sent. Oral, virtual, written, sound, gesture, etc.
are some of the commonly used communication mediums.

• Receiver: The receiver is the person for whom the message is

intended or targeted. He tries to comprehend it in the best
possible manner such that the communication objective is
attained. The degree to which the receiver decodes the message
depends on his knowledge of the subject matter, experience,
trust and relationship with the sender.
• Decoding: Here, the receiver interprets the sender’s message
and tries to understand it in the best possible manner. An
effective communication occurs only if the receiver
understands the message in exactly the same way as it was
intended by the sender.

• Feedback: The Feedback is the final step of the process that

ensures the receiver has received the message and interpreted it
correctly as it was intended by the sender. It increases the
effectiveness of the communication as it permits the sender to
know the efficacy of his message. The response of the receiver
can be verbal or non-verbal.
Direction Of
Communication
Forms Of
Communication
 A. Based on
•parties
External communication: Internal communication is
the process of exchanging information with the people of
various external or outside parties of the organization.
Generally, these parties are a stakeholder of the
organization.
• Internal communication: Internal communication is
the process of exchanging information among the people
of different level or internal participants within the
organization.
(i) Horizontal communication: Horizontal communication
is the communication where information or messages flows
between or among the parallel or same level or statuses
people of the organizational structure.
(ii) Vertical communication: Vertical communication is the
communication where information or messages flows between
or among the subordinates and superiors of the organization.
• (i) Downward communication: Downward communication
is the communication where information or messages flows
from the top of the organizational structure to the bottom of
the organizational structure.
• (ii) Upward communication: Upward communication is the
communication where information or messages flows from
the down/bottom of the organizational structure to the top
of the organizational structure.
• (iii) Cross or diagonal communication: Diagonal or cross
communication occurs when information flows between
persons at different levels who have no direct reporting
relationship.
 B. Based on
formality
• Formal communication: Formal communication is the
process of exchanging information by following the
prescribed or official rules, procedures, systems formalities,
chain of command etc. in the organizational structure.

• Informal communication: Informal communication is

the process of spontaneous exchange of information
among various people of different status in the
organizational structure.
 C. Based on
•media
Written communication: Written communication is the
process of communication in which messages or information is
exchanged or communicated within sender and receiver through
written form.

• Oral or verbal Oral or

communication
communication: is the process of communication
verbal in which
messages or information is exchanged or communicated within
sender and receiver through the use of spoken word.

• Non Verbal Communication : Nonverbal communication

is the transmission of messages or signals through a nonverbal
platform such as eye contact, facial expressions, gestures,
posture, and the distance between two individuals.
 D.
•Others
Mass communication: Mass communication is a process
of
transmitting information, thoughts, opinions or attitude through
specific channel or media to a large number of
heterogeneous
audiences.

• Personal communication: When people exchanged

information related to their personal life or personal affair is
known as personal communication.

• Interpersonal communication: Interpersonal communication

occurs when two individuals are involved or exchanging
information, ideas, opinions, feelings relating to the personal,
social, organizational, national and international matter who are
located in the same place. It is a process of face-to-face
communication between individuals where messages may be
verbal (that is, expressed in words) or they may not involve
words at all but consist of gestures, facial expressions, and
Communication
Models
 I. Linear
• The
Model
linear
communication
model explains the
process of
one-way
communication,
whereby a
sender transmits a
message and a receiver
absorbs it.
• In its new form, the
message is transmitted
to the receiver, who then
 ARISTOTLE’S
MODEL
A framework for thinking about how to
improve your communication abilities, by
looking at key aspects underpinning a
situation.
 ARISTOTLE’S
• 300BC –MODEL
Model designed to examine how to become a better
and more convincing communicator.

• Five elements of communication:

 Speaker
 Speech
 Occasion
 Target Audience
 Effect
• Three elements that will improve communication:
 Ethos (credibility)
 Pathos (ability to connect)
 Logos (logical argument)
• Aristotle’s model does not pay attention the role
to of
feedback in communication.
 LASWELL’S
MODEL
A basic framework for analyzing one-way
communication by asking five questions:
Who, said what, through which channel,
to whom, with what effects?
 LASSWELL’S
MODEL
• Tries to understand a communication event by asking five important
questions.
 Who created the message,
 What they said,
 Channel they said it through (e.g T.V, Blog)
 Who they said it to
 What effect it had on the receiver

• This model is effective because:-

• Provides a very simple and practical way of critiquing
(evaluate) a message.
• Exploring five important elements that can help explain the event
under analysis in more detail.
LASSWELL’S
MODEL
 SHANNON – WEAVER
MODEL
The Shannon – Weaver model is the
first to highlight the role of “noise” in
communication, which can disrupt or
alter a message between sender and
receiver.
 SHANNON – WEAVER
MODEL
• Sees communication occurring in five key parts
 Sender
 Encoder
 Channel
 Decoder
 Receiver
• Emphasizes the importance of encoding and decoding
messages
for them to be sent (e.g. turning them into written words)
• During the process of encoding, sending and decoding,
“noise”
occurs that can disrupt or cloud a message.
• This model was first to introduce the role of NOISE in the
communication process.
 BERLO’S S-M-
C-R MODEL

S-M-C-R Model explains it in four steps-

Source, Message, Channel and
Receiver.
 BERLO’S S-M-
• In
C-R
1960,
MODEL
Berlo postulated Berlo’s SMRC Model of
communication
David from Shannon Weaver’s
communication. Model of
• He describes factors affecting the individual components in the
communication making the communication more efficient.
• The model also focuses on encoding and decoding which
happens before sender sends the message and before receiver
receives the message respectively.
• Berlo’s model has mainly four components to describe the
communication process. They are Sender, Message, Channel and
Receiver. Each of this component is affected by many factors.
Berlo’s model includes a number of factors
under each of the elements:
I. Source: The source is situated where messag
the e
originates.
• Communication skills – It is the skill of the individual to
communicate. For example, the ability to read, write, speak,
listen etc.
• Attitudes – This includes attitudes towards the audience,
subject and towards oneself. For example, for the student, the
attitude is to learn more and for teachers, it is to help teach.
• Knowledge– Communicating also means that the person
needs to be knowledgeable about the subject or topic. For e.g.
a teacher needs to know about the subject in detail that he or
she teaches so that they can communicate properly such that
the students understand here.
• Social system – The social system includes the various
aspects of society like values, beliefs, culture, religion and a
general understanding of society. It is where the
communication takes place. For example, classrooms differ
from country to country just like people’s behaviours and how
they communicate, etc.
• Culture - Culture of a particular society also comes under
the
social system.
 II.
•Message
Content – The body of a message, from the beginning to the
end, comprises its content. For example, whatever the class
teacher teaches in the class, from beginning to end, is the
content of the message.

• Elements – It includes various things like language, gestures,

body language, etc. They constitute all the elements of a
particular message. Any content is accompanied by some
elements.

• Treatment – It refers to the packing of the message and the

way in which the message is conveyed or the way in which it is
passed on or delivered.
• Structure– The structure of the message refers to how it
is arranged; the way people structure the message into
various parts.

• Code– The code of the message refers to the means

through which it is sent and in what form. It could be, for
example, language, body language, gestures, music, etc.
Even culture is a code. Through this, people give and
receive messages and communication takes place.
III.
Channel
Channel–
the
It refers to the five sense organs. The following are

five senses:
• Hearing: The use of ears to receive the message. For
example, orally transmitted messages, interpersonal
communication etc.
• Seeing: Visual channels, for example, Watching television so
the message is conveyed through the scene/film.
• Touching: The sense of touch can be used as a channel
to
communicate. For example, we touch, buy food, hugging
our
loved ones etc.
• Smelling: Smell also can be a channel to communicate.
For
example, perfumes, food, fragrances etc. Charred
smell
communicates something is burning. People can deduct which
food is being cooked by its smell etc.
 IV.
•Receiver
The receiver needs to think all the contents and
elements of the source, so as to
communicate/responds to sender effectively.;
• Berlo’s model believes that for effective
communication to take place, the source and the
receiver need to be on the same level. Only then
communication will happen or take place properly.
Hence, the source and the receiver should be similar.
• For example, if the communication skill of the source
is good, then the receiver should have equally good
listening skills.
II. The Interactive
Models

Interactive models are best

for explaining impersonal
two-way communication
processes.
THE OSGOOD –
SCHRAMM
MODEL
• The Osgood-Schramm model of communication is defined as
a circular model that shows that messages go in two
directions. The model has four key principles:
(1) Communication is circular not linear;
(2) Communication is usually equal and reciprocal;
(3) Messages require interpretation;
(4) There are three steps for communicating: encoding,
decoding and interpreting.
• This model is best for explaining and examining personal
synchronous communication where feedback is immediate.
(such as face to face discussions)
• As feedback is immediate, noise can be reduced through
ongoing clarifications of message during the conversation.
THE WESTLEY AND
MACLEAN
MODEL
Westlay and Maclean model shows that
our communication is influenced by
environmental, cultural and personal
factors.
 THE WESTLEY AND
MACLEAN
MODEL
• Communication is seen to start with environmental
factors which influence someone to speak.
• It believes the communication process doesn’t start at
sender. Rather, it starts with environmental factors that
the
influence the sender.
• It can account for both interpersonal and mass communication.
• It also acknowledges the role of feedback in communication.
1. Environment (X)
Communication starts with the environment around the speaker. Some stimulus
in the environment will motivate the person to create a message and send it out.
E.g. The culture or society in which you live.

2. Sensory Experiences (XI)

The speaker experiences something in their environment in some way or
another, which motivates them to send their message.
E.g. Watching television, Hearing something from a friend.

3. Source (A)
The source is the person who sends the message. A sender may be a person
talking one-to-one with their friend (interpersonal communication). They may
also be a newscaster sending a message to millions of people (mass
communication).
E.g. Social media influencers, Instagrammers, Bloggers, Teachers sending
a message to their students.
4. Object of Orientation of the Source (X2)
T he object of orientation of the source is the subjective beliefs or
experiences of the person sending the message.
E.g. A feminist (A), who is concerned with how women are represented
in the environment (XI) which impacts how she sends her message.

5. Receiver
The receiver is the person who gets the message.
E.g. A person watching TV receives a message from their television.

6. Object of Orientation of the Receiver (X3)

The object of orientation of the receiver is the subjective beliefs or
experiences of the person receiving the message. The receiver will decode a
message using their own personal perspectives.
E.g. A critical thinker, who is skeptical of the messages they see on TV.
7. Feedback
The Westley-Maclean model sees feedback loops as important for
influencing how messages are sent. This makes this model a circular
model.

8. Gatekeepers
Gatekeepers are more common in mass communication than
interpersonal communication. They are the editors of messages before
they are passed on to the receiver.
E.g. A newspaper editor who makes sure the grammar and spelling
are accurate.

9. Opinion Leaders
Westley and Maclean believe one key person in the mass
communication process is an opinion leader. This person may have an
oversized influence as an environmental factor (X) upon the message
sender (A).
E.g. Celebrities who have large followings of fans.
 III. The Transactional
Models
Transactional Models explain direct personal communication
processes where two-way feedback is immediate.
 BARNLUND’S
TRANSACTIONAL
MODEL
Barnlund’s Transactional Model of
communication highlights the role of
private and public cues that impact our
messages.
 BARNLUND’S
TRANSACTIONAL
• This
feedback
MODEL
model explores interpersonal, immediate-
communication.
• Central to this approach is the idea that feedback for the sender is
the reply for the receiver.
• Also highlights the role of “cues” in impacting our messages.
 Public cues are environmental cues
 Private cues which are person’s personal thoughts
and
background.
 With this emphasis on cues, Bar nlund’s model highlights
the factors that influence that we think and say.
 DANCE ‘S HELICAL
MODEL
Dance’s Helical model sees
communication as a circular process
that gets more and more complex as
communication occurs, which can be
represented by a helical spiral.
 DANCE ‘S HELICAL
MODEL
• Dance’s Helical Model builds on circular models by
explaining how we improve our messages over time by using
feedbacks.
• When we communicate with others, their feedback will
influence our next statement.
• We become more knowledgeable each cycle of
communication, enabling up to ‘expand our circle’,
with
represented by the increasingly wider and wider
as circles.
• The movement the spiral indicates that
communication
up is new and each
practice as communication
previous, different
does not ever perfectly
fromrepeat
itself. the
Thank
you