BUSINESS COMMUNICATION

UNIT 1

Meaning of the term “Communication”

The term communication is derived from a Latin word „communis‟ which means common. This
means establishing a common ground. Now whatever is common is shared by all. But what is that
which is shared by all in communication? It is fact, ideas, understanding, opinions, information etc.

In the words of Newman, Summer & Warren, “communication is an exchange of facts, ideas, and
opinions by two or more persons.”

According to Keith Davis, “Communication is the process of passing information and understanding
from one person to another.”

Nature or Characteristics of Communication

An analysis of various definitions of communication revel the nature or characteristics of
communication which are as follows:

1. Communication Involves At Least Two Persons: Communication involves at least two persons the
sender and the receiver. The sender sends the messages and is known as the communicator. The
receiver receives the message and is known as communicate.

2. Communication is a Two Way Process: Communication is essentially a two way process. It does
not merely means sending and receiving messages. It is not complete unless and until the message
has been understood by the receiver in the same sense.

3. Purpose of Communication: This basic purpose of communication is to create an understanding.

The receiver should understand the message sent and should response accordingly.

4. Form of Communication: Communication may take several form e.g. order, instruction, report,
queries etc. it may be verbal or written. It may be formal or informal.

5. Scope of Communication: communication pervades all human relationship. It is essential in all type
of organizational and at all levels of management.

6. Communication is a Dynamic Process: Communication is influenced by the mood and thinking of

the sender and receiver. The way a message is accepted depends upon the fact that which of the
fine sensory organs of the receiver is active at that time.

7. Communication is Much More Than Words: Communication is not merely sending or receiving
facts, expressed in words. It also involves ideas and emotions. A lot of communication is done
through signs, symbols and gestures.

8. Communication is a Goal Oriented Process: Communication is a goal oriented and effective only
when there is congruence of goals of sender and receiver.

9. Communication is Conversational: Communication sets up a link between facts, ideas and thus
helps the communicator and communicates to progress logically.

10. Communication is an Interdisciplinary Science: Communication to be effective derives knowledge

from several sciences like anthropology (study of body language), sociology (study of human
bahaviour), psychology (study of attitude) etc.
Objectives of Business Communication

The objectives of business communication is wide and large. Information, Order, permission,
Warning, Motivation, Advice and Raising morale are activated through the means of communication.
The objectives of business communication are stated below:

1. To Exchange Information: The prime objective of communication is to exchange information

internally and externally i.e. to deal within the organization and outside the organization.

2. To Achieve Goal: The goal of the organization can be obtained through effective organizational
communication. Everybody tries to acquire such goal and therefore it requires effective
organizational communication.

3. To Maintain Co-ordination and Co-operation: Co-ordination and co-operation among three levels
i.e. corporate level, divisional level and functional level of an Organization are maintained through
communication.

4. To Plan: Planning decides what is to be done in future. All the information and data which are
required to make a plan for business can be obtained or gathered through communication.

5. To Facilitate Direction and Motivation: The boss gives direction or order to his subordinate. And
managers need to motivate their employees to increase the concentration and productivity. Hence,
communication helps to facilitate direction and motivation.

6. Communication can provide information regarding past and present. It also helps to anticipate
about future. So, Communication increase efficiency of the workers by providing instant information.

7. To Solve Problem: Communication can remove the gap between employees and employer. Fruitful
communication ensures a network in an Organization to solve problems. Conflict arises and exists in
an Organization. Fruitful communication ensures a network to solve conflict. It also remove the gap
between employee and employer.

8. To Create Consciousness: Communication helps both employer and employee to be conscious

about their respective roles, duties and activities. As a result, responsibility and accountability is
located among the concerned persons.

9. To Increase Job Satisfaction: Job satisfaction requires better job environment and better job
environment is possible if there exists communication chain. Strong chain helps to overcome job
related stress.

10. To Improve Employer-Employee Relationship: To achieve the Organizational objectives, there

must be good relationship between employee and employer. And to improve such relationship, there
must be effective communication.

11. To Manage Human Resources: To recruit, train-up & motivate human resource properly, There
must be effective communication. Skilled manpower are professional and work for achievement and
development.
 12. To Attract Customer: To knock the door of potential customers with new product and service of
an enterprise, there should exist an efficient communication. So better communication will cause
more customers and more customers will cause more profit.

 The four basic types of business communication are internal (upward), internal
(downward), internal (lateral) and external.
Internal, Upward Communication

This type of business communication is anything that comes from a subordinate to a manager or

an individual up the organizational hierarchy. Leaders need information to flow upwards to have a

true pulse on the operations of the company. Most communication that flows upward is based on

systematic forms, reports, surveys, templates and other resources to help employees provide

necessary and complete information.

For example, a sales report might include the total number of pitches, along with the actual sales. It

may also ask for feedback such as a summary of problems or successes that management would

like to track.

Internal, Downward Communication

This is any type of communication that comes from a superior to one or more subordinates.

Communication might be in the form of a letter, a memo or a verbal directive. Leaders should keep

communication professional and clear with subordinates. For example, a memo regarding a new

operations procedure might involve safety requirements and new regulations. There should be no

room for interpretation of the safety requirements; the language should concisely explain exactly

what needs to happen.

Internal, Lateral Communication

Lateral communication is the talking, messaging and emailing among co-workers in the office.

This might be cross-department communication or just internal department dealings. An example of

a scenario involving cross-department communication is where the fulfillment manager has a

question about a special order, and is requesting clarification from the sales representative via an

email or office messaging system. Those in the same department might communicate to provide
updates on status reports and coordinate schedules. Co-workers should always be encouraged to

communicate in a respectful and professional tone when at work.

External Communication

External communication is any communication that leaves the office and deals with customers,

prospects, vendors or partners. It could also involve regulatory agencies or city offices. Sales

presentations or marketing letters need to be exciting to generate interest from the customer but

they also need to be factually based. When corresponding to outside entities for partnerships or

other business administration needs, state the purpose and be concise in communication, whether

oral or written. Respect people's time by getting to the point and stating your request.

COMMUNICATION PROCESS
From the preceding discussion, you would have observed that the process of communication is dynamic,
ongoing and ever changing.
We also used some terms such as sender, message, channel, receiver, noise and feedback. These are
known as Elements of Communication that makes it a continuous process. Now let us examine these
elements in some detail and understand the type of interrelationship that exists among them.

Source: The source of communication is the sender who has a message to impart. The sender has to
decide how to communicate a message, which channel is to be selected for the message and what type
of strategies should be planned so that the message makes the desired response. The sender provides
verbal or non-verbal cues that can be received, interpreted and responded to by the receiver.

Message: Message is a set of signs and symbols which are given by the source to create meanings for
the receiver. Simply put, message is the content which is shared between the participants in the
communication process. To make the message effective, the sender has to understand the nature and
profile of the receiver of the message, his/her needs and expectations and possible response to the
message. This is important in both face-to-face as well as mediated situations.

Channel: Channel is the medium used to communicate a message from the sender to receiver. The
channel could be spoken word, printed word, electronic media, or even non-verbal cues such as signs,
gestures, body language, facial expressions, etc. In modern communication parlance, the word 'channel'
mostly refers to mass communication media such as newspapers, radio, television, telephone,
computers, internet etc. The selection of an appropriate channel is crucial for the success of
communication.
 Receiver: Communication cannot take place without a receiver for whom the message is meant. We
receive a message, interpret it and derive meaning from it. You have already studied that for successful
communication, the receiver should receive the message in the same way it was meant by the sender. In
interpersonal communication, the receiver shares a close relationship with the sender which gradually
gets diluted in group and mass communication.

Shannon Weaver Model

Sender (Information source) – Sender is the person who makes the message, chooses the
channel and sends the message.
Encoding (Transmitter) –Sender encodes the message i.e. sequence the message to be sent.
Channel –Channel is the medium used to send message.
Decoding – Receiver decodes the message i.e. try to interpret the message according to
his/her own knowledge.
Receiver (Destination) –Receiver is the person who gets the message or the place where the
message must reach. The receiver provides feedback according to the message.
Noise –Noise is the physical disturbances like environment, people, etc. which does not let
the message get to the receiver as what is sent.

Barriers to Effective Communication

The process of communication has multiple barriers. These barriers will often be disturbed and
distorted leading to a condition of misunderstanding and failure of communication. The barriers to
effective communication could be of many types like linguistic, psychological, emotional, physical,
and cultural etc.
 1. PHYSICAL BARRIER: They include barriers like noise, closed doors, faulty equipment
used for communication, closed cabins.

a. Noise- Any noise distracting the receiver from sender.

b. Space: Distance between the sender & receiver. The greater the distance, More will be
barrier.

c. Time: Sender & Receiver sitting in different time zone create the barrier, hence distort the
message or reduce the importance of message.

2. SEMANTIC BARRIER: a. Language- The language barrier is one of the main barriers
that limit effective communication. Language is the most commonly employed tool of
communication. Hence sender must be aware of the language in which receiver is
comfortable with.

b. Jargons: Avoid using technical words (jargons). Every profession has its own jargons
which can be suitable to that particular profession only not for everyone in the audience.

3. TECHNOLOGICAL BARRIERS:

Other barriers include the technological barriers. The technology is developing fast and as a result, it
becomes difficult to keep up with the newest developments. Hence sometimes the technological
advance may become a barrier. In addition to this, the cost of technology is sometimes very high.
Most of the organizations will not be able to afford a decent tech for the purpose of communication.
Hence, this becomes a very crucial barrier.

4. ORGANISATIONAL STRUCTURE BARRIERS:

As we saw there are many methods of communication at an organizational level. Organization

hierarchy becomes the barrier especially in big organizations like MNC, where it becomes difficult
to raise your issues to the senior management.

5. PSYCHOLOGICAL BARRIERS:

There are various mental and psychological issues that may be barriers to effective communication.
Some people have stage fear, speech disorders, phobia, depression etc.

a. Emotional barrier: The emotional IQ of a person determines the ease and comfort with
which they can communicate. A person who is emotionally mature will be able to
communicate effectively. On the other hand, people who let their emotions take over will
 face certain difficulties. A perfect mixture of emotions and facts is necessary for effective
communication. Emotions like anger, frustration, humour, can blur the decision-
making capacities of a person and thus limit the effectiveness of their communication.
b. Attitude barrier: Some people have attitude issues, like huge ego and inconsiderate
behaviours.
c. Perception barrier: Different people perceive the same things differently. This is a fact which
we must consider during the communication process. Knowledge of the perception levels of
the audience is crucial to effective communication.

6. CULTURAL BARRIER: As the world is getting more and more globalized, any large office
may have people from several parts of the world. Different cultures have a different meaning for
several basic values of society. Dressing, Religions or lack of them, food, drinks, pets, and the
general behaviour will change drastically from one culture to another. Especially the nonverbal
communication varies from culture to culture which includes signs, symbols, dress.
 UNIT 2

Formal communication
Formal communication refers to the flow of official information through proper, predefined
channels and routes. The flow of information is controlled and needs deliberate effort to be
properly communicated. Formal communication follows a hierarchical structure and chain of
command. The structure is typically top down, from leaders in various departments and senior
staff in the organization, which funnel down to lower level employees. Employees are bound to
follow formal communication channels while performing their duties.
Formal communication is considered effective as it is a timely and systematic flow of
communication.
Informal communication
In comparison, informal communication refers to communication which is multi-dimensional.
Informal communication moves freely within the organization and is not bound by pre-defined
channels and communication routes. Informal communication is particularly quick. Informal
communication is far more relational than formal communication and is by nature, a very
natural form of communication as people interact with each other freely and can talk about a
diverse range of topics, often extending outside of their work duties. Due to the inherent
nature of informal communication, it moves a lot faster and does not have a paper trail.
Informal communication in the workplace is often called the ‘grapevine’ and generally begins
with employees through social relations. In many cases informal communications can turn to
formal communication if they are added in to the formal communication information flow of a
company.
Informal communication is considered effective as employees can discuss work-related issues
which saves the organization time and money. It also helps to build more productive and
healthy relationships in the workforce.

Key differences between formal and informal communication

Here’s a brief list of some of the key differences between formal and informal communication:
Reliability: Formal communication is the more reliable form, as there is a paper trail. Compared
to informal communication which has comparatively less reliability, and is very unlikely to have
a paper trail.
Speed: Formal communication is slower, sometimes feeling unbearably slow due to
bureaucracy. On the other hand, informal communication is very quick, often being
instantaneous.
Time-Consuming: Formal communication requires a number of different processes before the
whole communication flow is complete, whereas informal communication requires very little
process time.
Information Flow: Information through formal communication is only through predefined
channels, whereas information through informal communication moves freely.
Secrecy: Secrecy is maintained with formal communication, whereas informal communication
makes it hard to maintain full secrecy due to its reliance on individuals.
Types of formal communication
Below we provide a comprehensive list pertaining to the types of formal channels of
communication:

 Memos

 Intranet

 Meetings

 Conferences

 Formal One-on-Ones

 Bulletin Boards

 Handouts

 Letters

 Presentations

 Speeches

 Notice Boards

 Organizational blogs

 Emails from managers and leaders

Types of informal communication

Below we provide a comprehensive list pertaining to the types of informal communication:
 GRAPEVINE : is informal workplace dialogue in its purest form: it is characterized by
conversations between employees and superiors that do not follow any prescribed
structure or rule-based system. Grapevine communication spreads rapidly and likely
touches each person throughout the organization. Therefore, it is found in all
organizations. It does not follow any prescribed or predetermined rule and spreads any
information quickly.
 Through the grapevine, information flows in different directions linking almost every
one of an organization.
 It is governed by social and personal relationships rather than officially recognized rules
and formalities.
 Grapevine operates both in internal and external informal channels. It passes opinions,
suspicions, and rumors that generally do not move through formal channels.

Advantages of Grapevine Communication

1. Grapevine channels carry information rapidly. As soon as an employee gets to know

some confidential information, he becomes inquisitive and passes the details then to his
closest friend who in turn passes it to other. Thus, it spreads hastily.
2. The managers get to know the reactions of their subordinates on their policies. Thus,
the feedback obtained is quick compared to formal channel of communication.
3. The grapevine creates a sense of unity among the employees who share and discuss
their views with each other. Thus, grapevine helps in developing group cohesiveness.
4. The grapevine serves as an emotional supportive value.

Disadvantages of Grapevine Communication

1. The grapevine carries partial information at times as it is more based on rumours. Thus,
it does not clearly depicts the complete state of affairs.
2. The grapevine is not trustworthy always as it does not follows official path of
communication and is spread more by gossips and unconfirmed report.
3. The productivity of employees may be hampered as they spend more time talking rather
than working.
4. The grapevine leads to making hostility against the executives.
5. The grapevine may hamper the goodwill of the organization as it may carry false
negative information about the high level people of the organization

 Gossip

 Single Strand – a form of informal communication wherein each person communicates with

the next in a single sequence.

 Cluster - a very common form of informal communication, in cluster networks a person will

receive information and choose to pass it on to their cluster network or keep the

information to themselves. Each individual will pass on the information to the next cluster

network

 Probability Chain – each individual randomly tells another individual the same piece of

information.

What does formal communication look like?

Formal communication can sound rather complex and convoluted, but generally formal
communication is governed by a chain of command and follows organizational convention.
Within the organizational set-up, formal communication can make up any of these forms:
1. Downward Communication
Downward communication represents the most stereotypical form of formal communication.
Information flows from management level down to lower levels. It is the most common form of
formal communication. Downward communication includes orders and instructions
represented in oral or written format. Reports, emails, letters and manual communication are
commonly used downward communication tools.
2. Upward Communication
Upward communication contains information which passes from subordinate levels up to
management and senior levels. Common forms of upward communication include (from
employees to managers and above) reports, suggestions, requests, instructions and complaints.
3. Horizontal Communication
Horizontal communication refers to communication between individuals who are at the same
or similar levels within an organization but have different areas of responsibility. Horizontal
communication is slightly more fluid and dependent on cross-individual communication. Typical
examples exist as communication between managers of different departments (HR, Marketing,
Sales, etc.).
4. Diagonal Communication
This occurs when employees of different departments at different levels communicate with
each other irrespective of the chain of command. Communication between a floor manager and
a Sales team is a prime example of diagonal communication.
 7 C’s of Communication: The 7 C’s of Communication is a checklist that helps to improve the
professional communication skills and increases the chance that the message will be
understood in exactly the same way as it was intended.

1. Consideration: The sender must take into consideration the receiver’s opinions, knowledge,
mindset, background, etc. in order to have an effective communication. In order to
communicate, the sender must relate to the target recipient and be involved.
2. Clear: The message should be clear and easily understandable to the recipient. The purpose of
the communication should be clear to sender then only the receiver will be sure about it. The
message should emphasize on a single goal at a time and shall not cover several ideas in a
single sentence.
3. Correct: The message should be correct, i.e. a correct language should be used, and the sender
must ensure that there is no grammatical and spelling mistakes. Also, the message should be
exact and well-timed. The correct messages have a greater impact on the receiver and at the
same time, the morale of the sender increases with the accurate message.
4. Complete: The message should be complete, i.e. it must include all the relevant information as
required by the intended audience. The complete information gives answers to all the
questions of the receivers and helps in better decision-making by the recipient.
5. Concrete: The communication should be concrete, which means the message should be clear
and particularly such that no room for misinterpretation is left. All the facts and figures should
be clearly mentioned in a message so as to substantiate to whatever the sender is saying.
6. Concise: The message should be precise and to the point. The sender should avoid the lengthy
sentences and try to convey the subject matter in the least possible words. The short and brief
message is more comprehensive and helps in retaining the receiver’s attention.
7. Courteous: It implies that the sender must take into consideration both the feelings and
viewpoints of the receiver such that the message is positive and focused at the audience. The
message should not be biased and must include the terms that show respect for the recipient.