Chapter -Two

Meaning of Business
Communication
Definition of Business Communication
Business can not exist without communication. Communication in
the business and for the business can be termed as business
communication. Managers make decisions by collecting data from
lower level employees. In other words, employee provides
information to the management for decision making. Whatever it is
the fact is organizations can not move or run without
communication.
⚫ Prof. Lesiker and Pettit said that-“Business communication is the
ingredient that makes organization possible. It is the vehicle
through which the basic management functions are carried out.”
⚫ Prof. Ricks and Gow- “Business communication is a link that
allows organization to function as a system.”
In the light of above discussion it can be said that business
communication is a continuous process through which business
related information, ideas, and opinions are transferred from one
party to another.
Objectives of Business Communication
Communication is the lifeblood of an organization. It is the vehicle that
ensures proper performance of organizational functions and achievement
of organizational goals. As a separate field of study,
business communication has the following objectives:

⚫ To exchange information: The main objective of

business communication is to exchange information with the internal and
external parties. Internal communication occurs within the organization
through orders, instructions, suggestions, opinions etc.
⚫ To develop plans: Plan is the blueprint of future courses of actions. The
plan must be formulated for attaining organizational goals. In order to
develop a plan, management requires information. In this regard, the
objective of communication is to supply required information to the
concerned managers.
Objectives of Business Communication
⚫ To implement the plan: Once a plan is prepared, it is to be
implemented. Implementation of a plan requires timely
communication with the concerned parties. Thus,
communication aims at transmitting a plan throughout the
organization for its successful implementation.
⚫ To facilitate policy formulation: Policies are guidelines for
performing organizational activities. Policies are also termed as
standing decisions to recurring problems. Every organization
needs to develop a set of policies to guide its operation.
Preparing policies also require information from various
sources. Therefore, the objective of communication is to collect
necessary information for policy formulation.
Objectives of business communication
⚫ To achieve organizational goal: Collective efforts of both managers
and workers are essential for achieving organizational goals.
Communication coordinates and synchronizes the efforts of
employees at various levels to achieve the stated goals of the
organization.
⚫ To organize resources: Various kinds of resources are available in
organization such as human resources, material resources, financial
resources and so on. In organizing these resources in an effective and
efficient way is a key challenge to the managers. Communication is
the vehicle to overcome this challenge.
⚫ To coordinate: Coordination is a basic management function. It
involves linking the various functional departments of large
organizations. Without proper and timely coordination, achievement
of organizational goals is impossible. Therefore, the objective of
communication is to coordinate the functions of various departments
for the easy attainment of organizational goals.
Objectives of business communication
⚫ To direct the subordinates: The job of a manager is to get the
things done by others. In order to get the things done,
management needs to lead, direct and control the employees.
The performance of these managerial functions depends on
effective communication with subordinates.
⚫ To motivate employees: A pre-requisite of employee motivation
is the satisfaction of their financial and non-financial needs.
Financial needs are fulfilled thorough monetary returns.
However, in order to satisfy non-financial needs, management
must communicate with employees on a regular basis both
formally and informally.
⚫ To create consciousness: Employees of an organization must be
conscious regarding their duties and responsibilities.
Communication supplies necessary information and makes them
conscious about their duties and responsibilities.
Objectives of business communication
⚫ To bring dynamism: Organizations should be dynamic to cope
with the internal and external changes. Bringing dynamism
requires finding new and better ways of doing things. For this
purpose, communication helps to seek new ideas and
suggestions from the internal and external parties.
⚫ To improve labour-management is relationships: Harmonious
relationship between workers and management is a prerequisite
for organizational success. In this regard, the objective of
communication is to ensure the free and fair flow of
information and to create good understanding between them.
⚫ To increase efficiency: In order to increase employee
efficiency, they should be provided with necessary information
and guidelines. Communication supplies such information and
guidelines for them.
Objectives of business communication
⚫ To increase job satisfactions: Communication
enhances job satisfaction level of employees. It
creates a friendly environment where employees can
express themselves. As a result, they become more
satisfied with their job.
⚫ To convey employee reaction: Communication
conveys employees’ reactions, opinions, suggestions
and complaints to their superiors about the plans,
policies, programs and strategies of the company.
⚫ To orient employee: Communication orients the new
employees with the company’s policies, rules,
regulations, procedures etc.
Communication Network
⚫ There are different types of network of communication.
Communication network means the channels by which
information flows. Networks can be of two types :
1. Formal Network and
2. Informal Network.

Formal Network : Formal network are used for task-related

communications. These are generally vertical type and
follow the authority chain. Widely used formal networks are
as follows :
⚫ Chain network
⚫ Wheel network
⚫ Star network.
Formal communication network
Chain Network:
⚫ This network of communication follows the
organisational hierarchy and chain of
command. All subordinates receive
commands or instructions from their
superior. B, C, D and E, F, G are the
subordinates to A in the organisational
hierarchy and receive commands from ‘A’
which follows the way shown in the
diagram.
Chain Network
Formal Communication Network
⚫ Wheel Network:
Here all subordinates receive commands
from one superior. This is highly
centralized type of communication
network where each subordinate receives
commands or instructions from a single
authority or superior ‘A’ and wants the
immediate feedback.
Wheel Network
Formal communication network
⚫ Star Network:
Under star communication network all
members of the group communicate with
each other and exchange information. This
network is a must for group communication
or where teamwork is involved. This
network channel of communication is open
to all members of the group. The members
communicate with each other without
hesitation.
Star Network
Informal communication network
Informal Network : Informal networks do
not follow authority chain. Here
information-
⚫ Free to move in any direction.
⚫ Able to skip authority levels.
⚫ Satisfy group member’s social needs
⚫ Helps with task accomplishments.
Informal communication Network
⚫ Example of an informal network :
Grapevine :
⚫ Not controlled by the management
⚫ Trusted more by employees
⚫ Is used to serve self interest of members.
Social networking :
⚫ External rather than internal
⚫ Distribute and find information
⚫ Share and discuss
⚫ Connecting and growing.
Barriers to Communication
For the convenience of study the different barriers can be divided into
four parts:
(1) Semantic Barriers
There is always a possibility of misunderstanding the feelings of the
sender of the message or getting a wrong meaning of it. The words,
signs, and figures used in the communication are explained by the
receiver in the light of his experience which creates doubtful situations.
This happens because the information is not sent in simple language.

The chief language-related barriers are as under:

(i) Badly Expressed Message:
Because of the obscurity of language there is always a possibility of
wrong interpretation of the messages. This barrier is created because of
the wrong choice of words, in civil words, the wrong sequence of
sentences and frequent repetitions. This may be called linguistic chaos.
Barriers to Communication
ii) Symbols or Words with Different Meanings:
A symbol or a word can have different
meanings. If the receiver misunderstands the
communication, it becomes meaningless. For
example, the word ‘value’ can have different
meanings in the following sentences:
(a) What is the value of computer education
these days?
(b) What is the value of this mobile set?
(c) Value our friendship.
Barriers to Communication
(iii) Faulty Translation:
A manager receives much information from his superiors and
subordinates and he translates it for all the employees according to
their level of understanding. Hence, the information has to be
moulded according to the understanding or environment of the
receiver. If there is a little carelessness in this process, the faulty
translation can be a barrier in the communication.
(iv) Unqualified Assumptions:
It has been observed that sometimes a sender takes it for granted
that the receiver knows some basic things and, therefore, it is
enough to tell him about the major subject matter. This point of
view of the sender is correct to some extent with reference to the
daily communication, but it is absolutely wrong in case of some
special message,
.
Barriers to Communication
(v) Technical Jargon:
Generally, it has been seen that the people working in an
enterprise are connected with some special technical group who
have their separate technical language.
Their communication is not so simple as to be understood by
everybody. Hence, technical language can be a barrier in
communication. This technical group includes industrial engineers,
production development manager, quality controller, etc.
(vi) Body Language and Gesture Decoding:
When the communication is passed on with the help of body
language and gestures, its misunderstanding hinders the proper
understanding of the message. For example, moving one’s neck to
reply to a question does not indicate properly whether the meaning
is ‘Yes’ or ‘No’.
Barriers to Communication
(2) Psychological or Emotional Barriers
The importance of communication depends on the mental condition of both
the parties. A mentally disturbed party can be a hindrance in communication.
Following are the emotional barriers in the way of communication:
(i) Premature Evaluation:
Sometimes the receiver of information tries to dig out meaning without
much thinking at the time of receiving or even before receiving information,
which can be wrong. This type of evaluation is a hindrance in the exchange
of information and the enthusiasm of the sender gets dampened.
(ii) Lack of Attention:
When the receiver is preoccupied with some important work he/she does
not listen to the message attentively. For example, an employee is talking to
his boss when the latter is busy in some important conversation. In such a
situation the boss may not pay any attention to what subordinate is saying.
Thus, there arises psychological hurdle in the communication.
Barriers to Communication
(iii) Loss by Transmission and Poor Retention:
When a message is received by a person after it has passed through
many people, generally it loses some of its truth. This is called loss by
transmission. This happens normally in case of oral communication.
Poor retention of information means that with every next transfer of
information the actual form or truth of the information changes.
According to one estimate, with each transfer of oral communication
the loss of the information amounts to nearly 30%. This happens
because of the carelessness of people. Therefore, lack of transmission
of information in its true or exact form becomes a hindrance in
communication.
(iv) Distrust:
For successful communication the transmitter and the receiver must
trust each other. If there is a lack of trust between them, the receiver
will always derive an opposite meaning from the message. Because of
this, communication will become meaningless.
Barriers to communication
(3) Organisational Barriers
Organisational structure greatly affects the capability of the
employees as far as the communication is concerned. Some
major organisational hindrances in the way of communication
are the following:

(i) Organisational Policies:

Organisational policies determine the relationship among all the
persons working in the enterprise. For example, it can be the
policy of the organisation that communication will be in the
written form. In such a situation anything that could be
conveyed in a few words shall have to be communicated in the
written form. Consequently, work gets delayed.
.
Barriers to Communication
(ii) Rules and Regulations:
Organisational rules become barriers in communication by
determining the subject-matter, medium, etc. of communication.
Troubled by the definite rules, the senders do not send some of the
messages.
(iii) Status:
Under organising all the employees are divided into many
categories on the basis of their level. This formal division acts as a
barrier in communication especially when the communication
moves from the bottom to the top.
For example, when a lower-level employee has to send his
message to a superior at the top level there is a lurking fear in his
mind that the communication may be faulty, and because of this
fear, he cannot convey himself clearly and in time. It delays the
decision making
Barriers to Communication
(iv) Complexity in Organisational Structure:
The greater number of managerial levels in an organisation
makes it more complex. It results in delay in communication
and information gets changed before it reaches the receiver.
In other words, negative things or criticism are concealed.
Thus, the more the number of managerial levels in the
organisation, the more ineffective the communication
becomes.
(v) Organisational Facilities:
Organisational facilities mean making available sufficient
stationery, telephone, translator, etc. When these facilities are
sufficient in an organisation, the communication will be
timely, clear and in accordance with necessity. In the absence
of these facilities communication becomes meaningless.
Barriers to Communication
4) Personal Barriers
The above-mentioned organisational barriers are important in themselves
but there are some barriers which are directly connected with the sender and
the receiver. They are called personal barriers. From the point of view of
convenience, they have been divided into two parts:
(a) Barriers Related to Superiors: These barriers are as follows:
(i) Fear of Challenge of Authority:
Everybody desires to occupy a high office in the organisation. In this hope
the officers try to conceal their weaknesses by not communicating their
ideas. There is a fear in their mind that in case the reality comes to light
they may have to move to the lower level,
(ii) Lack of Confidence in Subordinates:
Top-level superiors think that the lower- level employees are less capable
and, therefore, they ignore the information or suggestions sent by them.
They deliberately ignore the communication from their subordinates in
order to increase their own importance. Consequently, the self-confidence
of the employees is lowered.
Barriers to Communication
(b) Barriers Related to Subordinates: Subordinates-related barriers
are the following:
(i) Unwillingness to Communicate:
Sometimes the subordinates do not want to send any information to
their superiors. When the subordinates feel that the information is of
negative nature and will adversely affect them, an effort is made to
conceal that information.
If it becomes imperative to send this information, it is sent in a
modified or amended form. Thus, the subordinates, by not clarifying the
facts, become a hindrance in communication,
(ii) Lack of Proper Incentive:
Lack of incentive to the subordinates creates a hindrance in
communication. The lack of incentive to the subordinates is because of
the fact that their suggestions or ideas are not given any importance. If
the superiors ignore the subordinates, they become indifferent towards
any exchange of ideas in future.
Measures to overcome the barriers of
communication
In order to remove hindrances in the way of communication the following
steps are worth consideration:
(1) Clarify Ideas before Communication:
The person sending the communication should be very clear in his mind
about what he wants to say. He should know the objective of his message
and, therefore, he should arrange his thoughts in a proper order.

(2) Communicate According to the Need of the Receiver:

The sender of the communication should prepare the structure of the message
not according to his own level or ability but he should keep in mind the level,
understanding or the environment of the receiver.

(3) Consult Others before Communication:

At the time of planning the communication, suggestions should be invited
from all the persons concerned. Its main advantage will be that all those
people who are consulted at the time of preparing the communication plan
will contribute to the success of the communication system.
Measures to overcome the barriers of
communication
4) Be Aware of Language, Tone and Content of Message:
The sender should take care of the fact that the message
should be framed in clear and beautiful language. The tone of
the message should not injure the feelings of the receiver. As
far as possible the contents of the message should be brief
and excessive use of technical words should be avoided.
(5) Convey Things of Help and Value to the Listener:
The subject matter of the message should be helpful to the
receiver. The need and interest of the receiver should
specially be kept in mind. Communication is more effective
in such a situation.
Measures to overcome the barriers of
communication
6) Ensure Proper Feedback:
The purpose of feedback is to find out whether the receiver has
properly understood the meaning of the information received. In
the face-to- face communication, the reaction on the face of the
receiver can be understood.
But in case of written communication or some other sort of
communications some proper method of feedback should be
adopted by the sender.
⚫ (7) Consistency of Message:
The information sent to the receiver should not be self-
contradictory. It should be in accordance with the objectives,
policies, programmes and techniques of the organisation. When a
new message has to be sent in place of the old one, it should
always make a mention of the change otherwise it can create some
doubts.
Measures to overcome the barriers of
communication
⚫ (8) Follow up Communication:
In order to make communication effective the management should
regularly try to know the weaknesses of the communication
system. In this context effort can be made to know whether to lay
more stress upon the formal or the informal communication would
be appropriate.
Similarly, suggestions can be invited in respect of the medium of
communication (oral, written and gestural) to know as to which
medium would be more effective and appropriate.
⚫ (9) Be a Good Listener:
It is the essence of communication that both the sender and the
receiver should be good listeners. Both should listen to the each
other’s point of view with attention, patience and positive attitude.
A sender can receive much relevant information by being a good
listener.
Effective communication and
performance of employees
⚫ Every members of an organization is linked by an information
chain. If any employee of any department failed to keep touch
with that information chain, he/she will not be able to perform
as per expectation. Through proper communication, managers
try to explore the potentiality of the employees. Let us now
explain the role of communication in improving the attitude
and performance of employees.
⚫ Defining role: By using communication tools managers define
the role to the employees that what is expected from them.
⚫ Providing training: Proper training boost up the morale of the
employees and helps them to perform better. But success of
training program completely depends on the communication
skill of management.
Effective communication and
Performance of employee
⚫ Providing motivation: Training can helps the employees to learn
how to perform the job. But that is not enough, managers need to
inspired the employees to perform the job enthusiastically. The
inspiration or motivation can not provided without the help of
communication techniques.
⚫ Job satisfaction: When employees become motivated it leads to
job satisfaction. Motivated employees try to give hundred percent
for the organization. But without effective communication, job
satisfaction can not be achieved.
⚫ Better performance: Effective communication ensure proper
motivated and job satisfaction which ultimately lead to better
performance.
Thus it can be said that a good communication system is a
prerequisite for the improvement of the attitude and performance
of the employees.
Thank You