What is Business Communication?

Communication is neither the transmission of a message nor the message itself. It is

the mutual exchange of understanding, originating with the receiver. Communication
needs to be effective in business. Communication is the essence of management. The
basic functions of management
(Planning, Organizing, Staffing, Directing and Controlling) cannot be performed well
without effective communication.

Business communication involves constant flow of information. Feedback is integral

part of business communication. Organizations these days are verly large and involve
large number of people. There are various levels of hierarchy in an organization.
Greater the number of levels, the more difficult is the job of managing the organization.
Communication here plays a very important role in process of directing and controlling
the people in the oragnization. Immediate feedback can be obtained and
misunderstandings if any can be avoided. There should be effective communication
between superiors and subordinated in an organization, between organization and
society at large (for example between management and trade unions). It is essential for
success and growth of an organization. Communication gaps should not occur in any
organization.

Business Communication is goal oriented. The rules, regulations and policies of a

company have to be communicated to people within and outside the organization.
Business Communication is regulated by certain rules and norms. In early times,
business communication was limited to paper-work, telephone calls etc. But now with
advent of technology, we have cell phones, video conferencing, emails, satellite
communication to support business communication. Effective business communication
helps in building goodwill of an organization.

Business Communication can be of two types:

1. Oral Communication - An oral communication can be formal or informal.

Generally business communication is a formal means of communication, like :
meetings, interviews, group discussion, speeches etc. An example of Informal
business communication would be - Grapevine.
2. Written Communication - Written means of business communication includes -
agenda, reports, manuals etc.

Importance of Communication in an Organization

Effective Communication is significant for managers in the organizations so as to perform
the basic functions of management, i.e., Planning, Organizing, Leading and Controlling.

Communication helps managers to perform their jobs and responsibilities.

Communication serves as a foundation for planning. All the essential information must be
communicated to the managers who in-turn must communicate the plans so as to
implement them. Organizing also requires effective communication with others about their
job task. Similarly leaders as managers must communicate effectively with their
subordinates so as to achieve the team goals. Controlling is not possible without written
and oral communication.

Managers devote a great part of their time in communication. They generally devote
approximately 6 hours per day in communicating. They spend great time on face to face
or telephonic communication with their superiors, subordinates, colleagues, customers or
suppliers. Managers also use Written Communication in form of letters, reports or memos
wherever oral communication is not feasible.

Thus, we can say that “effective communication is a building block of successful

organizations”. In other words, communication acts as organizational blood.

The importance of communication in an organization can be summarized as

follows:

1. Communication promotes motivation by informing and clarifying the employees

about the task to be done, the manner they are performing the task, and how to
improve their performance if it is not up to the mark.
2. Communication is a source of information to the organizational members for
decision-making process as it helps identifying and assessing alternative course
of actions.
3. Communication also plays a crucial role in altering individual’s attitudes, i.e., a
well informed individual will have better attitude than a less-informed individual.
Organizational magazines, journals, meetings and various other forms of oral and
written communication help in moulding employee’s attitudes.
4. Communication also helps in socializing. In todays life the only presence of
another individual fosters communication. It is also said that one cannot survive
without communication.
5. As discussed earlier, communication also assists in controlling process. It helps
controlling organizational member’s behaviour in various ways. There are various
levels of hierarchy and certain principles and guidelines that employees must
follow in an organization. They must comply with organizational policies, perform
their job role efficiently and communicate any work problem and grievance to their
superiors. Thus, communication helps in controlling function of management.

An effective and efficient communication system requires managerial proficiency in

delivering and receiving messages. A manager must discover various barriers to
communication, analyze the reasons for their occurrence and take preventive steps to
avoid those barriers. Thus, the primary responsibility of a manager is to develop and
maintain an effective communication system in the organization.
Components of Communication Process
Communication is a process of exchanging verbal and non verbal messages. It is a
continuous process. Pre-requisite of communication is a message. This message must
be conveyed through some medium to the recipient. It is essential that this message must
be understood by the recipient in same terms as intended by the sender. He must respond
within a time frame. Thus, communication is a two way process and is incomplete without
a feedback from the recipient to the sender on how well the message is understood by
him.

The main components of communication process are as follows:

1. Context - Communication is affected by the context in which it takes place. This

context may be physical, social, chronological or cultural. Every communication
proceeds with context. The sender chooses the message to communicate within
a context.
2. Sender / Encoder - Sender / Encoder is a person who sends the message. A
sender makes use of symbols (words or graphic or visual aids) to convey the
message and produce the required response. For instance - a training manager
conducting training for new batch of employees. Sender may be an individual or a
group or an organization. The views, background, approach, skills, competencies,
and knowledge of the sender have a great impact on the message. The verbal and
non verbal symbols chosen are essential in ascertaining interpretation of the
message by the recipient in the same terms as intended by the sender.
3. Message - Message is a key idea that the sender wants to communicate. It is a
sign that elicits the response of recipient. Communication process begins with
deciding about the message to be conveyed. It must be ensured that the main
objective of the message is clear.
4. Medium - Medium is a means used to exchange / transmit the message. The
sender must choose an appropriate medium for transmitting the message else the
message might not be conveyed to the desired recipients. The choice of
appropriate medium of communication is essential for making the message
effective and correctly interpreted by the recipient. This choice of communication
medium varies depending upon the features of communication. For instance -
Written medium is chosen when a message has to be conveyed to a small group
 of people, while an oral medium is chosen when spontaneous feedback is required
from the recipient as misunderstandings are cleared then and there.
5. Recipient / Decoder - Recipient / Decoder is a person for whom the message is
intended / aimed / targeted. The degree to which the decoder understands the
message is dependent upon various factors such as knowledge of recipient, their
responsiveness to the message, and the reliance of encoder on decoder.
6. Feedback - Feedback is the main component of communication process as it
permits the sender to analyze the efficacy of the message. It helps the sender in
confirming the correct interpretation of message by the decoder. Feedback may
be verbal (through words) or non-verbal (in form of smiles, sighs, etc.). It may take
written form also in form of memos, reports, etc.

8 Characteristics of Business Communication

Business owners are constantly communicating ideas and directives to staff, customers
and strategic partners. The more effective you are in communicating ideas, the more
successful you will be in inspiring and influencing others. Taking time to understand the
characteristics of business communication can make you a stronger leader, whether
you're presenting an idea to a big crowd or writing a letter to a potential client. Read on
to learn the eight characteristics of business communication. An effective communicator
in business:

Organizes Ideas for Clarity

No matter how well you know your subject matter, take the time to outline your ideas. This
enables you to go from one idea to the next without jumping around. It helps the audience
follow the story, rather than trying to figure out how one point relates to another.

Is Clear for Better Comprehension

Strive for clarity. Use simple words and avoid jargon or industry acronyms when speaking
to groups outside your industry. Although you know that POS refers to "point of sale" in
the retail industry, your audience might not be familiar with that acronym. Don't put them
in a position where they might be distracted from your message.

Is Concise and Punctual in Meetings

Whether writing a letter, pitching to a client or speaking to a group be mindful of becoming
too wordy or taking too long. Business correspondence should be succinct and to the
point. Read through your draft and remove anything that is vague, pompous, outdated or
flowery. Meetings should start and end on time. While you don't want to be looking at your
watch every few minutes, set a clock you can easily see, so you can ensure that you're
punctual.

Follows Ethical Standards

Great communication follows ethical standards. As a business leader, your reputation is
based on what you do and say. First, your actions show who you are. Then, your words
show who you are. Make sure that all claims or research you present are valid and
accurate.
If you find that you've made a mistake, own up to it. Don't let your ego get in the way of
your ethics.

Speaks Directly to People

Great communicators speak to people – not at them. This means that you understand
your audience and that you write or speak in a manner they'll understand. You don't want
your audience to feel as if they're sitting in a graduate level physics class as a first-year
undergrad where every concept is so complex that they feel lost almost immediately.
Avoid being condescending; be the expert in a way that others feel that you're working to
help them understand everything.

Respects Others and Wants Them to Understand

When someone is respectful, respect seems to be seems to be part of everything he
does; this behavior is integrated into who he is. This means that you are mindful of the
advantages of brevity, and that you truly want people to understand what you are saying.
Don't let your passion and enthusiasm for your topic override your sense of what the
audience is feeling. Sarcasm and insults can be quick ways to make a point, but the
audience takes this behavior negatively.

Is Trustworthy and Willing to Take Criticism

Every business owner should strive to be trusted by everyone he meets: Employees,
customers, community members and partners. Being trustworthy starts with making sure
that you are a master of the information you are presenting. You're also humble, and
you're willing to take criticism without becoming defensive.

Is Eager for Feedback

Effective communication is as much listening as it is presenting your ideas. Take
opportunities when writing or speaking to ask for input, feedback and questions from your
audience. In a letter, this is often at the end before the closing. When presenting, it is wise
to check with your audience throughout a presentation.
You don't want to be talking about point nine, when the audience is still stuck on point
two, and has missed everything from point three and after.

Fundamental Elements of Business Communication

Business communication appears in many forms within an organization. Companies

communicate with clients via websites, reports or periodicals. Internal communications
include phones, voice mail, company newsletters and the in-house email system, to name
a few. In all cases, whether business communication is internal or external to the
company, three elements fundamental for its success are clarity, structure and knowing
your audience.

Clarity
Writing or communicating with clarity is perhaps the most important element of
communication. Effective business communications get right to the point, say exactly
what is meant without inserting double-speak and are conveyed in the simplest terms
possible. Use of the common vernacular, instead of industry acronyms known only to a
few, makes the communication more available to the listener or the reader and is easily
understood.

Structure
Like good storytelling, business communication requires a beginning, a middle and an
end. Following this logical structure is easy for a reader or a listener, as it is one that most
people have been taught to understand. Use this structure for any kind of communication
media, reports, emails or voice mail; also employ it during company meetings. Be succinct
and avoid getting overly wordy, and your message should get across.

Audience
Understand your audience. When you communicate with a customer, choose the
vernacular that he will understand, rather than terminology that is outside his knowledge.
The same concept applies when talking to peers or other in-house team members.
Acronyms may save space, but most people will not know what they mean; resulting
written communications look like alphabet soup. Address your topic to your audience --
do not force your audience to fit the topic.

Consistency
Be consistent in your communications; do not take opposing stances, which serves only
to confuse the listener or the reader. Choose the side of the issue that you intend to back
and stick to it. Using a consistent voice and style helps the audience to engage with the
message and develop trust in your company or product. People are unlikely to trust the
information contained in a message that is inconsistent or contradictory.

Medium
Use the right medium to address your audience. If the message calls for a personal letter
or an email, use that medium for the message. If it requires voice-to-voice or face-to-face
communications, however, email is the wrong choice. The medium used for business
communication lends credibility to the message, so stick with the medium that supports
the message.

Nature of Communication

Following are the essential features of communication:

1. Communication can take place only when there are atleast two persons namely,
receiver and sender. Sender must have the ability to convey the message in clear terms.
The receiver must understand it in the same sense in which the sender proposes to
convey.
2. A communication must convey some message If there is no message there. is no
communication at all.
3. Communication means not only oral or written messages but also every thing done to
convey meanings from one person to another. Sometimes, message is conveyed by
waving the hands, shaking the hands, moving the lips, twisting the face, etc.
4. There are two basic channels of communication namely Formal Communication,
and Informal Communication.
1. Formal channels are designed as part of organizational structure of authority and
activity relationships. It consist of vertical, horizontal and diagonal information flows.
2. Informal channels, on the other hand, are channels which naturally and normally
emerge in organizations over a period as part of informal group dynamics.
5. Communication travels downward from a superior to his subordinates and upward from
subordinate to a superior. It also travels from. one person to another person operating at
the same level of authority.
6. Communication is used by all levels of management and in all operational areas.
7. Communication must be made continuously because only through communication,
messages are exchanged between the people in the organization.

Objectives of Purposes of Business Communication.

Communication has many objectives. Its primary objective is to exchange ideas,

opinions, thoughts, beliefs and information between human beings. In the fields of
business, the main objective of communication is to help managers in performing all
managerial functions smoothly. Different objectives of communication are discussed
below; Business Communication Objectives.

1. Achieving organization goals: The main objective of communication is to help

managers in achieving organization goals. It helps managers to perform all managerial
functions and to achieve predetermined goals. Objectives of business
communication.

2. Exchanging of information: Another objective of communication is to exchange

information between employees of an organization. It helps to make contact with the
external forces of an organization. Business Communication Purposes.

3. Formulation and execution of plans: Communication supplies information to the

managers who prepares effective plans for the organization. Managers collect
information from different sources and prepare and execute organizational plans
through the help of communication. Business Communication Objectives

4. Increasing efficiency: Communication helps to increase the efficiency of the

employees of an organization by supplying information timely relating to the work.

5. Directing the subordinates: An important objective of communication is to give

effective direction to the employees of an organization. Communication helps to reach
executive orders to the subordinates. Objectives of business communication.

6. Create consciousness: Another remarkable objective of communication is to create

consciousness among the employees about their duties and responsibilities by
supplying various information.
7. Coordination and cooperation: Another important objective of communication is to
help in coordinating and cooperating the activities of various work groups and
departments working within the organization. Business Communication Objectives.

8. Persuasion: To persuade the employees to work hard for the organization and the
buyers to buy organization’s products are two other important objective of
communication. Business Communication Purposes.

9. Facilitating joint effort: No organization can achieve its goal by individual effort. It
requires joint effort. Communication helps in taking joint effort in the organization.

10. Education and training of employees: Communication helps to provide education

and training of employees of the organization.

11. Develop labor-management relations: Another objective of communication is to

improve relationship between management and workforce within the organization. It
removes misunderstanding. Between the two parties and helps to develop and maintain
better relationship. Objectives of business communication.

12. Creating relationship with external parties: Communication helps to create good
relationship with external parties of the organization.

13. Monitoring and controlling the activities: Monitoring and controlling the activities
of the subordinates is other important objective of organization communication.

14. Solving problem: One of the most important objectives of communication is help
solving different organizational problems. It creates bases for discussion by supplying
information which helps in removing the differences among the disputed
parties. Business Communication Purposes.

15. Initiate to change: Another objective of communication is to initiate change within

the organization. Communication supplies various information to the employees which
helps in changing their attitude and brings changes in the organization.

16. Decision making: Communication helps managers to take decisions. It helps in

exchanging ideas and opinions with others which help managers to take appropriate
decisions. Business Communication Objectives.

17. Making aware of future change: In earth everything in changing continuously. To

adopt with the changing environment management has the initiate different
organizational change. Here communication helps to make employees aware of future
change.

18. Building image: Strong image of the organization helps to gain competitive
advantage in the market. Communication helps to build up image of the organization
through timely contact with the stakeholders, advertising etc.