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Introduction

Effective business communication is a two-way process of listening and speaking, and it's of
foremost importance in all phases of daily business life at your middle market company. Ask one
hundred employees whether they're good communicators, and one hundred will say yes. In
reality, though, all of us need to improve our communication skills.
Effective business communication is a sharing process involving two or more parties sending a
message that is easily understood by each person. Effective communication can significantly
contribute to a company's success. In this lesson, we will learn how to compose effective written
business communications by focusing on professionalism, being concise, and ensuring
information is complete. Understanding and using effective communication, is essential to
becoming a better employer and employee. So, what is Effective Business Communication? It is
the process of two or more people sharing information that sends a clear message, and it is
received, as intended. When we speak for, with, or on behalf of the business, the use of effective
communication, makes work instructions, tasks, information, expectations, along with work
processes, better to understand. On the other hand, if the way we communicate at work is
ineffective, which most are, the company ends up paying for it, literally. Effective
communication is a vital tool for any business owner. Your success at getting your point across
can be the difference between sealing a deal and missing out on a potential opportunity. You
should be able to clearly explain company policies to customers and clients and answer their
questions about your products or services. It is crucial to communicate effectively in negotiations
to ensure you achieve your goals. Communication is also important within the business.
Effective communication can help to foster a good working relationship between you and your
staff, which can in turn improve morale and efficiency. This guide will explain the key aspects of
both verbal and non-verbal communication, how to listen to and understand others, and how to
make the best possible first impression on the people you encounter in and around your business.
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Element of effective business communication

Seven major elements of communication process are: (1) sender (2) ideas (3) encoding (4)
communication channel (5) receiver (6) decoding and (7) feedback.

Communication may be defined as a process concerning exchange of facts or ideas between

persons holding different positions in an organisation to achieve mutual harmony. The
communication process is dynamic in nature rather than a static phenomenon. Communication
process as such must be considered a continuous and dynamic inter-action, both affecting and
being affected by many variables.
(1) Sender:
The person who intends to convey the message with the intention of passing information and
ideas to others is known as sender or communicator.

(2) Ideas: This is the subject matter of the communication. This may be an opinion, attitude,
feelings, views, orders, or suggestions.

(3) Encoding:
Since the subject matter of communication is theoretical and intangible, its further passing
requires use of certain symbols such as words, actions or pictures etc. Conversion of subject
matter into these symbols is the process of encoding.

(4) Communication Channel:

The person who is interested in communicating has to choose the channel for sending the
required information, ideas etc. This information is transmitted to the receiver through certain
channels which may be either formal or informal.

(5) Receiver:
Receiver is the person who receives the message or for whom the message is meant for. It is the
receiver who tries to understand the message in the best possible manner in achieving the desired
objectives.
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(6) Decoding: The person who receives the message or symbol from the communicator tries to
convert the same in such a way so that he may extract its meaning to his complete understanding.

(7) Feedback:
Feedback is the process of ensuring that the receiver has received the message and understood in
the same sense as sender meant it.

Factor of effective business communication

Communication is the exchange of facts, ideas, wishes, and attitudes between or among persons.
Communication in business is the same. Business communication is the expression, channeling,
receiving and interchanging of ideas in commerce and industry. This exchange becomes fruitful
when the receiver understands the meaning of the message in the way the sender encoded.

1. Cultural Diversity

When people from different cultural backgrounds communicate the chance of misunderstanding
and wrong interpretation of the message is higher. Large corporations and MNC’s usually have a
culturally diverse workforce.Also, they deal with many nationalities. Misunderstanding of
messages can lead to a very troubling situation for a company. Companies can take some
measures to avoid this problem.

2. Misunderstanding of Message

Communication in business also fails when people assign different meanings to the same word.
Such a misunderstanding happens when technical words or jargons are used. Moreover, people
may intentionally misinterpret the inner meaning of words. Misunderstanding of the message is a
common thing in communication but it could create a problem for the company. So, messages
must be prepared properly and there should be a feedback system.

3. Emotional Difference
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Emotions and feelings of the parties involved in communication significantly affect the meaning
of communication. For example, physicians are usually less emotional to the patient than those
of the relatives of the patients.

4. Past Experiences

The experience of previous communication strongly determines the effectiveness of further

communication between the same sender and receiver. If either of the parties has a bitter
experience, further communication between them is likely to be ineffective.

5. Educational and Intellectual Difference

The difference in the informal educational and intellectual level of the sender and receiver also
influences the meaning of communication. If they have similar educational qualifications,
communication will be effective. Because they are likely to hold similar perceptions,
understanding, feeling, thinking, view, etc.

Conclusion

Business communication is vital in business success. For communication to be effective it should

embrace good relationships with major stakeholders of a business. One has to establish the
weakness in business communication, address these weaknesses and allow room for listening.
Communication means more than just giving out messages; it involves speaking, listening,
sending and receiving messages. Listening simply means holding back one’s judgment and
allowing answers to come from outside. The next step is to prepare a communication plan that is
proactive. This is a plan that is prepared after defining a business’s success and getting solution
from the listening activities then evaluate the results of the plan . Communication may break
down as a result of many communication barriers that may be attributed to the sender or receiver.
Therefore, effective communication requires familiarity with the barriers. Choosing the right
channel for communication is also important, because choosing the wrong medium undermines
the message.
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