Course Title: Business Communication; Ornate by: Md.

Shohel Rana,
Lecturer, Dept. of Business Administration, European University of Bangladesh.
Email: shohelrana@eub.edu.bd

Module: 01 (Introduction)
1.1 Meaning of Business Communication:
 The word communication has been derived from the Latin word ‘communis’ which means to
share or to participate.
 Business communication is a process of sharing knowledge, abilities, skills, products and
services in order to achieve profit.
 Business communication is a process of sharing information between people within and outside
an organization for the commercial benefit of the organization.
 Business communication is a process of transmitting information and thoughts between various
parts of an organization and also to people outside the organization such as customers,
investors, suppliers etc with a view to earn profits.
1.2 Business Communication Process:

1. Sender: The sender is the person who transmits a message. He is the communicator. He is the one
who gets the entire process of communication started. He wants to get his opinions, ideas, facts,
thoughts or information across to the receiver.
2. Message: A message is the actual information that has to be shared. Messages can broadly be
divided into verbal and non-verbal. The message must be clear, complete, unambiguous and
courteous.

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 Course Title: Business Communication; Ornate by: Md. Shohel Rana,
Lecturer, Dept. of Business Administration, European University of Bangladesh.
Email: shohelrana@eub.edu.bd

3. Encoding: Sender’s thoughts have to be converted into suitable words, pictures, charts or symbols
so that they can be delivered to the receiver. This process of converting thoughts into suitable
words, charts, symbols or any other form in which they can be understood by the receiver is called
encoding.
4. Channel: How does one communicate? This is what a channel deals with. Communication is
achieved through a channel. The channel can be a letter, an email, a fax, a telephone or memos,
reports, bulletins, posters and manuals.
5. Receiver: The person who receives the message, decodes it and understands it or attaches some
meaning to it is the receiver. The receiver has to perform three functions:
(i) Reception of the message: This is the stage when a message sent by the sender is sensorial
taken in by the receiver.
(ii) Decoding the message: After receiving the message, the receiver has to attach some meaning
to it.
(iii)Understanding the message: He then has to interpret it in the same way and in the same sense
as the sender meant it.
6. Feedback: The return of communication from the receiver to the sender is known as feedback. It
is the response, reaction or reply to the communication. Thus, in feedback, the receiver sends his
reply or response to the sender, indicating that he has understood the message received.

1.3 Importance of Business Communication:

1. Exchanging information: Communication is mainly the exchange of information between two or
more parties. Through communication, organizations exchange information with internal and
external parties.
2. Preparing plans and policies: Communication helps in preparing organizational plans and
policies. Realistic plans and policies require adequate and relevant information.
3. Execution of plans: For timely implementation of plans and policies, managers must disseminate
those in the whole organization. In order to disseminate the plans and policies to the internal and
external parties, managers rely on communication.
4. Increasing employee’s efficiency: Communication also helps in increasing the efficiency of
employees. With the help of communication, organizational objectives, plans, policies, rules,
directives and other complex matters.

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 Course Title: Business Communication; Ornate by: Md. Shohel Rana,
Lecturer, Dept. of Business Administration, European University of Bangladesh.
Email: shohelrana@eub.edu.bd

5. Achieving goals: Effective communication helps the employees at all levels to be conscious and
attentive. It ensures timely accomplishment of jobs and easy achievement of goals.
6. Solving problems: Through various communication channels, the managers can be informed of
various routine and non-time problems of the organization and accordingly they take the necessary
actions of steps to solve the problems.
7. Making decisions: Making timely decisions requires updated information. Through effective
communication, managers can collect information from different corners and can make the right
decisions.
8. Improving industrial relation: Industrial relation is the relation between workers and
management in the workplace. Good industrial relation is always desired for business success.
Communication plays a vital role in creating and maintaining good industrial relation.
9. Publicity of goods and services: In the modern age, business is becoming highly competitive.
The organization that can communicate better, can also sell better.
10. Removing controversies: Effective communication allows smooth flow of information among
various parties involved in the negotiation or transaction. As a result, conflicts, controversies and
disagreements can be resolved easily.
11. Enhancing employee satisfaction: If there is free and fair flow of information in the organization,
it will certainly bring mutual understanding between management and workers. Such
understanding enhances the satisfaction of employees.

Module Outline: 01

1. What do you mean by business communication?

2. Graphically explain business communication process.

3. Discuss the importance of business communication.