BUSINESS COMMUNICATION

Submitted By:- Submitted To:-

Khushboo Rawat Prof. Maninder Singh

Rohit Kumar

Shivani Khurana

Sandeep Sharma

Dishant Sharma

Apurva Bajpai
 COMMUNICATION
Communication is an essential aspect of business life. Everyday business persons have to
communicate with people at different levels of the organization or with people external to the
organization. And in this globalized environment they also have to communicate with people
from different countries, with different cultural backgrounds.
Poor or inaccurate communication can lead to conflict and negativity in the workplace. It could
even lead to the cancellation of a deal or the loss of customer goodwill. In this competitive
environment, businesses cannot afford such losses.

“Business Communication examines verbal, nonverbal and written communication in the world
of business. Through numerous examples the art of effective speaking, writing, negotiating and
interviewing is explored.”

Types of communication
The basic types of communication are-

 Verbal communication- Verbal communication can be in the form of meetings,

speeches or writing, gestures or expressions.

 Non-verbal communication- It is a primitive form of communication that does not

involve the use of words. It rather uses gestures, clues, vocal qualities, spatial
relationships etc. to convey a message. It is commonly used to express emotions like
respect, love, dislike, unpleasantness, etc.

Non-verbal communication is less structured compared to its verbal counterpart and is most
often spontaneous. As it is not planned, it is sometimes considered more reliable than verbal
communication, as it reflects the communicator’s true feelings. Non-verbal communication
enhances the effectiveness of the message as gestures and body language are registered easier
and quicker with the audience than verbal communication.

Non-verbal communication, when combined with verbal communication, makes a presentation

more effective and has greater impact on the audience.

Verbal communication

However, non-verbal communication has its limitations. Many complex ideas, thoughts or
messages have to be communicated sequentially to be meaningful. Verbal communication
involves the arrangement of words in a structured and meaningful manner, adhering to the rules
of grammar. The message is then conveyed to the audience in either spoken or written form.

Business communication

“Business Communication is the type of communication used to promote an organization,

service, and product; and to impart information towards employees”.

It is very vital in every business to have a medium in order to communicate with employees,
clients, service providers and others. For example It is not a simple call from the telephone as if
you are talking to your friend or writing a letter to your loved one. There is a standard rule to
follow in order to be professional enough to deal with calls and writing letters.

What makes business communication distinct from other types of communication is its
formality. It makes it stand out from the rest since there is this sense of professionalism,
formality and etiquette that should be followed in order to convey the right message or
information that needs to be conveyed to the other person on the line

Types of Business Communication

There are two types of business communication in an organization:

 Internal Communication
 External Communication

 Internal Communication

Communication within an organization is called “Internal Communication”.

It includes all communication within an organization. It may be informal or a formal

function or department providing communication in various forms to employees.

Effective internal communication is a vital mean of addressing organizational concerns.

Good communication may help to increase job satisfaction, safety, productivity, and
profits and decrease grievances and turnover.

Under Internal Business Communication types there come;

1) Upward Communication
2) Downward Communication
3) Horizontal/Literal communication
1) Upward Communication

Upward communication is the flow of information from subordinates to superiors, or

from employees to management. Without upward communication, management works in
a vacuum, not knowing if messages have been received properly, or if other problems
exist in the organization.

By definition, communication is a two-way affair. Yet for effective two-way

organizational communication to occur, it must begin from the bottom.

Upward Communication is a mean for staff to:

o Exchange information
o Offer ideas
o Express enthusiasm
o Achieve job satisfaction
o Provide feedback

2) Downward Communication

Information flowing from the top of the organizational management hierarchy and telling
people in the organization what is important (mission) and what is valued (policies).

Downward communication generally provides enabling information – which allows a

subordinate to do something.

e.g.: Instructions on how to do a task.

Downward communication comes after upward communications have been successfully
established. This type of communication is needed in an organization to:

o Transmit vital information

o Give instructions
o Encourage 2-way discussion
o Announce decisions
o Seek cooperation
o Provide motivation
o Boost morale
o Increase efficiency
o Obtain feedback

Both Downward & Upward Communications are collectively called “Vertical

Communication”

3) Horizontal/Literal communication

Horizontal communication normally involves coordinating information, and allows

people with the same or similar rank in an organization to cooperate or collaborate.
Communication among employees at the same level is crucial for the accomplishment of
work.Horizontal Communication is essential for:

o Solving problems
o Accomplishing tasks
o Improving teamwork
o Building goodwill
o Boosting efficiency
 External Communication

Communication with people outside the company is called “external communication”.

Supervisors communicate with sources outside the organization, such as vendors and
customers.
It leads to better;

o Sales volume
o Public credibility
o Operational efficiency
o Company profits

It should improve

o Overall performancee
o Public goodwill
o Corporate image

Ultimately, it helps to achieve

o Organizational goals
o Customer satisfaction
 The Process of Communication

Communication goes through a process, involving the following phases:

• Sender- Sender is the first person who starts the communication by transmitting his thoughts or
message to through a channel to the receiver.

• Message- The idea or concept to be communicated is termed as message.

• Channel- The medium through which the communication is taking place. May be a person or
things like letter, texts, notice board etc.

• Receiver- The person who is ultimately receiving the message from the sender through
different channels.

• Feedback

This process can be explained by the following diagram

o Thought: First, information exists in the mind of the sender. This can be a concept,
idea, information, or feelings.
o Encoding: Next, a message is sent to a receiver in words or other symbols.
o Decoding: lastly, the receiver translates the words or symbols into a concept or
information that he or she can understand.

Communication Skills

Skills a person should posses in order to communicate the message more clearly and well
explained to the receiver. The most important is to be clear. In order to obtain that clarity a
person should have a good command over language, analytical thinking, posture, gesture, voice
modulation and it should be more beleivable.

Following can be catagorised as the qualities a person should posses

 Interest

 Enthusiasm

 Positive attitude
  Proffesionalism

 Self confidence

 Leadership

 Sensitivity

 Flexibility

These communication skills are required to make an effective communication.

Barriers to Business Communication

Anything that prevents understanding of the message is a barrier to communication. Many

physical and psychological barriers exist:

o Culture, background, and bias - We allow our past experiences and cultural
influences to change the meaning of the message. Our culture, background, and bias can
be good as they allow us to use our past experiences to understand something new, it is
when they change the meaning of the message that they interfere with the communication
process.

o Noise - Equipment or environmental noise impedes clear communication. The sender

and the receiver must both be able to concentrate on the messages being sent to each other.

o Ourselves - Focusing on ourselves, rather than the other person can lead to confusion
and conflict. The "Me Generation" is out when it comes to effective communication. Some
of the factors that cause this are defensiveness (we feel someone is attacking us),
superiority (we feel we know more that the other), and ego (we feel we are the center of
the activity).
o Perception - If we feel the person is talking too fast, not fluently, does not articulate
clearly, etc., we may dismiss the person. Also our preconceived attitudes affect our ability
to listen. We listen uncritically to persons of high status and dismiss those of low status.

o Message - Distractions happen when we focus on the facts rather than the idea. Our
educational institutions reinforce this with tests and questions. Semantic distractions occur
when a word is used differently than you prefer. For example, the word chairman instead
of chairperson, may cause you to focus on the word and not the message.

o Environmental - Bright lights, an attractive person, unusual sights, or any other

stimulus provides a potential distraction.

o Smothering - We take it for granted that the impulse to send useful information is
automatic. Not true! Too often we believe that certain information has no value to others
or they are already aware of the facts.

o Stress - People do not see things the same way when under stress. What we see and
believe at a given moment is influenced by our psychological frames of references - our
beliefs, values, knowledge, experiences, and goals.

These barriers can be thought of as filters, that is, the message leaves the sender, goes through
the filters, and is then heard by the receiver. These filters muffle the message. And the way to
overcome filters is through active listening and feedback.

Scope of communication
Following are the major scopes of communication:
 (i). Information sharing:
The main purpose of communication is to transmit information from a source to target individuals or
groups. Various types of information are transmitted in the organization: policies and rules and changes
and development in the organization etc. There may be need for fast diffusion of some information in the
organization, special rewards and awards given, settlements with the union and major changes in the
organization.

(ii). Feedback:
There is a need to give feedback to the employees on their achievements to the departments on their
performance and to the higher management on the fulfillment of goals; and difficulties encountered in the
communication of feedback helps in taking corrective measures and making necessary adjustments and it
motivates people in developing challenging and realistic plans.

(iii). Control:
The management information system is well-known as a control mechanism. Information is transmitted to
ensure that plans are being carried out according to the original design. Communication helps in ensuring
such control.

(iv). Influence:
Information is power. One purpose of communication is to influence people. The manager communicates
to create a good working environment, right attitudes and congenial working relationships. All these are
examples of influencing.

(v). Problem-solving:
In many cases communications aim at solving problems. Communication between the management and
the unions on some issues (negotiation) is aimed at finding a solution. Many group meeting are hold to
brainstorm alternative solutions for a problem and to evolve a consensus.
 (vi). Facilitating change:
The effectiveness of a change introduced in an organization depends to a large extent on the clarity and
spontaneity of the communication. Communication between the managers and employees helps in
recognizing the difficulties in the planned change and in taking corrective action.

(vii). Gate keeping:

Communication helps to build linkages of the organization with the outside world. The organization can
use its environment to increase its effectiveness.

(viii). Decision-making:
For arriving at a decision several kinds of communication are needed, exchange of information, views and
available alternatives etc, communication helps a great deal in decision-making.

The Grapevine

Grapevine is Informal Communication in general is exchange of information, a discussion that adheres less to
the rules and standards. It is on the dimension of the Project Communication Management. For example, a
Project Sponsor might have a meeting with the Project Manager to discuss about the progress of the project and
can give much better feedback that another type of communication (other types may include emails, hard copy
reports etc.). Informal Communication is more effective for discussing sensitive information in a project.

Four types of informal communications have been identified:

 1. Single strand: In single strand network the individual communicates with the other individual through
intervening persons. In other words each person tells s the other in sequence, one tells one.
2. Gossip: In gossip one individual tells others on a non-selective basis, one tells all.
3. Probability: In probability the individual tells other individuals randomly according to the law of
probability.
4. Cluster: In cluster type network the individual communicates with only those individuals whom he
trusts. Research shows that out of the four, cluster chain is the most popular form of informal
communication.

It is not possible to establish a particular type of informal communication in an organization. However attempts
may be made indirectly to influence the result of informal communication. Keith Davis has found certain
predictable forms of informal communication which can be of great use to the management in this respect. For
instance individuals talk most when news is recent they talk about things which affect their work, and they talk
about people they know. In addition people who are working with each other and who contact each other in the
formal chain are likely to be on the same grapevine. It should be recognized that informal communication is as
important as the informal organization and that it is not identical with false rumour. Therefore, the management
can profitably utilize the informal system in the attainment of organization goals.

According to Robbins, the grapevine in an organization has three significant characteristics.

 It is not controlled by formal management.

 Most employees perceive it to be more believable and reliable than formal communication issued by top
management.
 It is largely used for the self-interests of the people within the organization.
 Guide to Effective Listening

Following are the points which make like a guide to good effective listening:

1. Listen patiently to what the other person has to say even though you may believe it to be wrong or
irrelevant. Indicate simple acceptance (not necessarily agreement) nodding your head or perhaps
interjecting an occasional “um-hm” or “I see.”

2. Try to understand the feeling the person is expressing as well as the intellectual content. Most of us have
difficulty talking clearly about our feelings. So careful attention is required.

3. Restate the person’s feelings briefly but accurately. At this stage you simply serve as a mirror and
encourage the other person to continue talking. Occasionally make summary responses such as you
think you are in a dead-end job but in doing so keep your tone neutral and try not to lead the person to
your pet conclusions.

4. Avoid direct questions and arguments about facts refrain from saying, “That is just not so,” “Hold on a
minute let’s look at the facts,” or “Prove it.” You may want to review the evidence later, but a review is
irrelevant to how the person feels now.

5. Allow time for the discussion to continue without interruption and try to separate the conversation from
mere official communication of company plans. That is, don’t make the conversation any more
“authoritative” than it already is by virtue of your position in the organization.
 6. When the other person does touch upon a point you do want to know more about, simply repeat
statements as a question. For instance, if he remarks, ‘nobody can break even on his expense account’,
you can probe by replying, and “You say no one breaks even on expenses?” With this encouragement he
will probably expand on his previous statement.

7. Listen for what is not said evasions for pertinent points or perhaps too ready agreement with common
clichés. Such an omission may be a clue to a bothersome fact the person wishes was not true.

8. If the other person appears genuinely to want your view point, be honest in your reply. But at the
listening stage try to limit the expression of your views, since these may condition or repress what the
other person says.

9. Don’t get emotionally involved yourself. Try simply to understand first and defer evaluation until later.

10. Listen “between the lines.” A person does not always put everything that is important into words. The
changing tones and volume of his voice may have a meaning. So may his facial expression the gestures
he makes with his hands and the movements of his body.

11. Better results can be achieved if the superior gives less emphasis to explaining and more emphasis to
listening.

Communication feedback

When individuals work together and interact, the need to communicate effectively their feelings, impressions
and views on various matters becomes important. Equally important is how these are received. When we
communicate our reactions and perceptions to a person, especially regarding his behaviour, style of working.
We call it feedback. Feedback, in simple terms, is the communication of feelings and perceptions by an
individual to another individual about the latter’s behaviour and style of working. Such interpersonal feedback
is involved in everyday life in various situations; for example, the boss sits with his subordinate and gives him
necessary counselling about his achievements his strengths as well as areas in which he can improve further.
We tell our peers what we think about their style and ways of behaviour so that they may be able to benefit from
such communication. A subordinate may also do the same. If his boss pulled him up in the presence of others he
may go and tell him how bad he felt about such a happening. This may help the boss to improve his ways of
communicating such matters to his subordinates.

The main function of giving feedback is to provide data about a person’s style of behaviour and its effect on
others. Such data can be verified by the individual by either collecting more data from other sources or by
checking some aspects with others. The feedback also provides several alternatives to the individual out of
which he can choose one or two to experiment on. Interpersonal feedback contributes to the improvement of
communication between two persons involved in feedback through the establishment of a culture of openness
and promoting interpersonal trust. Continuous feedback will help in establishing norms of being open.

Similarly, receiving of feedback fulfils several purposes. It primarily helps the individual (one who receives
feedback) to process behavioural data he has received from others (the perceptions and feelings people have
communicated to him about the effect of his behaviour on them). It helps him to have better awareness of his
own self and behaviour. Getting information about how his behaviour is perceived and what impact it makes on
others, increases his sensitivity, his ability to pickup cues from the environment that indicate what perceptions
and feelings people have about his behaviour.

Giving Feedback Receiving Feedback

Provides verifiable data Helps in processing behavioural
Encourages collecting data from several Increase self- awareness
sources
Suggests alternatives to be considered Increase sensitivity in picking up cures
Improves interpersonal communication Encourages experimentation with new behaviour
Establishes culture of openness Helps in building an integrated self
Promotes interpersonal trust Encourages openness
Facilitates autonomy Develops mutuality