Subject: Commerce

Class: B.Com.
Year: I Semester 2
Name of Paper: Business Communication
Sub Topic: Definition, Meaning &
Objective ,importance, Process of Business
Communication

Dr. Vandana Sonker

Assistant Professor
Faculty of Commerce
Banaras Hindu University
vandana.sonker @gmail.com
Business communication

Communication is 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.

 Communication here plays a very important role in process of directing and

controlling the people in the organization. Immediate feedback can be obtained and
misunderstandings if any can be avoided.

 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.

Effective business communication helps in building goodwill of an organization.

 Meaning of communication
The word communication has been derived from the Latin word 'communicare'
that means ‘to share’. Communication may be defined as interchange of thought
or information between two or more persons to bring about mutual understanding
and desired action. It is the information exchange by words or symbols. It is the
exchange of facts, ideas and viewpoints which bring about commonness of
interest, purpose and efforts.
 According to Keith Davis , ‘The process of passing the information and
understanding from one person to another.

Peter Little defines communication as follows: “Communication is the process

by which information is transmitted between individuals and / or organizations so
that an understanding response results.”

 W.H. Newman and C.F. Summer Jr: “Communication is an exchange of facts,

ideas, opinions, or emotions by two or more persons.”
Contd.
 However, communication incorporates, besides commonality, the
concepts of transfer, meaning and information. It implies that there must
be a receiver if communication is to occur. The sender of message must
consider the receiver while structuring his message from a technical
standpoint as well as in delivering it. When the receiver is not
considered, there is either no response or there is wrong response.

 Thus, communication involves something more than mere transmission

of the message or transmission and physical receipt thereof. The correct
interpretation of the message is important from the point of view of
organizational efficiency. As such, the greater the degree of
understanding presents in the communication, the more the likelihood
that human action will proceed in the direction of accomplishment of
goals.
IMPORTANCE OF BUSINESS COMMUNICATION
Exchanging information
Preparing plans and policies
Achieving goals
Increasing employee's efficiency
Solving problems
Making decisions
Improving industrial relation
Publicity of goods and services
Removing controversies
Enhancing employee satisfaction
Enhancing loyalty
 Objectives Of Communication
For instruction: The instructive function unvarying and importantly deals with
the commanding nature. It is more or less of directive nature. Under this, the
communicator transmits with necessary directives and guidance to the next level, so
as to enable them to accomplish his particular tasks. In this, instructions basically
flow from top to the lower level.

For integration: It is consolidated function under which integration of activities is

endeavored. The integration function of communication mainly involves to bring
about inter-relationship among the various functions of the business organization. It
helps in the unification of different management functions.

For information: The purposes or function of communication in an organization

is to inform the individual or group about the particular task or company policies
and procedures etc. Top management informs policies to the lower level through the
middle level. In turn , the lower level informs the top level the reaction through the
middle level. Information can flow vertically, horizontally and diagonally across the
organization. Becoming informed or in form others is the main purpose of
communication.
 Contd.
For evaluation: Examination of activities to form an idea or judgment of the
worth of task is achieved through communication. Communication is a tool to
appraise the individual or team, their contribution to the organization. Evaluating
one’s own inputs or other’s outputs or some ideological scheme demands an
adequate and effective communication process.
For direction: Communication is necessary to issue directions by the top
management or manager to the lower level. Employee can perform better when he
is directed by his senior. Directing others may be communicated either orally or in
writing. An order may be common order, request order or implied order.
For teaching: The importance of personal safety on the job has been greatly
recognized. A complete communication process is required to teach and educate
workers about personal safety on the jobs. This communication helps the workers
to avert accidents, risk etc. and avoid cost, procedures etc.
 Contd.
For influencing: A complete communication process is necessary in influencing
others or being influenced. The individual having potential to influence others can
easily persuade others. It implies the provision of feedback which tells the effect of
communication.

For image building: A business enterprise cannot isolate from the rest of the
society. There is interrelationship and interdependence between the society and an
enterprise operating in the society. Goodwill and confidence are necessarily created
among the public. It can be done by the communication with the different media,
which has to project the image of the firm in the society. Through an effective
external communication system, an enterprise has to inform the society about its
goals, activities, progress and social responsibility.

For employees orientation: When a new employee enter into the organization at
that time he or she will be unknown to the organization programs, policies, culture
etc. Communication helps to make people acquainted with the co-employees,
superior and with the policies, objectives, rules and regulations of the organization.
Elements of Communication process
1) Communicator / Sender

2) Encoding

3) Message

4) Medium of Communication / channel

5) Communicatee / Receiver

6) Decoding

7) Reaction / feedback

8) Barriers/Noise
Process of communication

Feedback

Sender Encoding Message Decoding Receiver

Barriers
 Verbal Communication

 When messages or information is exchanged or communicated

through words is called verbal communication.
 Verbal communication may be two types: written and oral
communication.
 Verbal communication takes place through face-to- face
conversations, group discussions, counseling, interview, radio,
television, calls, memos, letters, reports, notes, email, etc.
 Types of Verbal Communication

 Formal Communication: Also termed as official communication, it is

a type of communication in which the sender follows a pre-defined
channel like lectures, phone calls, seminars, letters, e- mail, SMS,
etc. to transmit the information to the receiver.
 Informal Communication: Most commonly known as grapevine, the
type of communication in which the sender does not follow any pre-
defined channels to transmit the information is known as informal
communication.
 Non-verbal Communication

When messages or information is exchanged or communicated

without using any spoken or written word is known as nonverbal
communication.
It is usually understood as the process of communication
through sending and receiving wordless messages.

Much of non-verbal communication is unintentional people are

not even aware that they are sending messages.

Non-verbal communication takes place though gestures,

facial expressions, eye contact, physical proximity, touching,
symbols, etc.
 Types of Non-verbal Communication
 Chronemics: The use of time in communication is chronemics, which speaks
about the personality of the sender / receiver like punctuality, the speed of
speech, etc.

 Vocalics: The volume, tone of voice and pitch used by the sender for
communicating a message to the receiver is known as vocalics or paralanguage.

 Haptics: The use of touch in communication is the expression of feelings and

emotions.

 Kinesics: It is the study of the body language of a person, i.e., gestures,

postures, facial expressions, etc.

 Proxemics: The distance/ space maintained by a person while communicating

with others, communicates about the relationship of the person with others like
intimate, personal, social and public.

 Artifacts: The appearance of a person speaks about his personality, i.e. by way
of clothing, carrying jewellery, lifestyle, etc. This kind of communication is known
as artifactual communication.
 Non-verbal Communication: Kinesics

 The aspects of kinesics are face, eye contact, gesture, posture,

body movements.

 Face: The face and eyes are the most expressive means of body communication.
It can facilitate or hamper feedback.
 Eye contact: It is the most powerful form of non-verbal communication. It builds
emotional relationship between listener and speaker.
 Gesture: It is the motion of the body to express the speech.
 Posture: The body position of an individual conveys a variety of messages.
 Body movement: Used to understand what people are communicating with their
gestures and posture
Body Language
Dimensions of Communication

 The dimensions are:

1. Downward Communication

Downward communication refers to flow of information from higher to lower levels of

the organizational hierarchy. Information flows from top-most authority to the bottom-
most persons (workers) through various levels. This flow of information generally
prevails where autocratic style of management is dominant.

2. Upward Communication

Flow of information from lower-levels to higher-levels is known as upward

communication. Employees respond to directions and instructions through
upward communication. This flow of communication is suitable where democratic or
participative style of management is prevalent.

Matters such as subordinates’ work-related problems, suggestions, ideas, opinions, feelings

about their superiors and co-workers etc. flow through upward communication.
 Dimensions of Communication
3. Horizontal or Lateral Communication

Flow of information amongst people at the same level is known as horizontal communication. It
is interaction amongst peer groups. It involves communication with people at the same level.
Most common horizontal communication happens amongst functional heads. Marketing
manager and production manager interact with each other to coordinate demand with
production schedules.
Horizontal communication can be oral and written. Oral communication takes place amongst
people of the same level — when they meet during lunch break, after office hours, meetings
and conferences or talk over telephone written communication takes place through reports,
bulletins, boards, letters, memos, reports etc.

4. Diagonal or Cross-Wise Communication.

Flow of information amongst people of different departments at different levels is known as

diagonal communication. When regional sales manager talks to workers of finance or
production department, diagonal communication is said to have taken place. People who are
generally not in contact, come close to each other through diagonal communication.