Business Communication

Dr.Durga wati Kushwaha

Assistant Professor
 Introduction
• Derived from Latin word ‘communis’ which means ‘common’

• Communication can be expressed as a process in which individuals (two or more)

share their views, suggestions, evidences, thoughts and feelings.

• Communication is complete when the receiver understands in the same sense and
sprite that the communicator intends to convey.

• “communication is the sum of all things a person does when he wants to create
understanding in the mind of another. It is a bridge of meaning.

• It involves a systematic and continuous process of telling, listening and

understanding.”
 Contd..

• “Communication is an exchange of facts, ideas, opinions or emotions by two or more

persons”. -Newman and Summer

• “Communications is a process of passing information and understanding from one

person to another”. - Keith Davis

• “Communication is the process by which information is transmitted between

individuals and/or organizations so that an understanding response results”. -Peter Little

• “Communication is the process of passing information & understanding from one

person to another .It is process of imparting ideas & making oneself understood by
others”. - Theo Haimann
 Elements of communication Process

Sender/ communicator
Message
Encoding
Communication channel
Receiver
Decoding
Feedback
Noise
 Nature of Communication

Two way Process

Information sharing & Understanding
Verbal & non-verbal
Circular Flow
Goal Oriented
Continuous Process
Pervasive Activity
 Objective Of Communication
• Exchange of information.
• Issue of orders.
• Advice and counselling.
• Persuasion.
• Suggestion.
• Education.
• Motivation.
• Raising Morale.
• Warning.
 Importance / Role of communication in Management
oFacilitates Planning
oHelps in Decision Making
oBring Co-ordination
oFacilitates Better Administration
oCreation of Mutual Trust & Confidence
oMotivation of Employees
oBinding Force
oFacilitates Effective control
Importance / Role of communication in Management

Employee
Co-ordination
Motivation
Decision Making

Better
Administration
Facilitates
Role of Planning
communication
Better
Administration

Binding Force

Mutual Trust & Confidence Effective control

 Types of communication
On Basis of Parties
Involved

On the basis of
Expression
Types of
Communication On Basis of Channel &
Network

On Basis of Dimension
& Direction
 On Basis of Parties Involved

Top
Management
Internal External
Communication Communication

Interactive
Communication
Customers/
Employees
Publics
 Importance of Communication
Internal communication External communication
• Facilitating Planning.
• Helps in decision making. • Touch with the external
• Brings co-ordination. environment.
• Facilitate better • Handling competition.
administration. • Public relations.
• Creation of mutual trust
and confidence.
• Motivation of employees.
• Building higher employees
moral.
• Binding force.
• Facilitate effective control.
 On the basis of Expression
On the basis of
Expression

Verbal Non- Verbal

communication Communication

Oral Visual

Written Aural
 On Basis of Channel & Network/ Organizational Structure
On the basis of organizational structure the communication can be categorized into
following types:
1) Formal communication, and
2) Informal communication.

Formal Communication
• A kind of communication accomplished through a proper chain of command .
• Method of communication that is generally controlled and directed by the employees
or managers of a company.
• carried-out keeping in mind the organisational hierarchy of the organisation.
• In order to put organisational communication in sequence and to ensure the
uninterrupted, correct and in-time flow of information as and when required, the
communication path is intentionally created
• It can either be in written (memo, report, policy) or in oral (speech, meeting) form
 Contd..
Types of Formal communication Network

Figure : Formal communication Network

 Formal communication: Advantages & Disadvantages
Advantages Disadvantages

Maintains Authority of the Officers. Time consuming

Provides clear and Effective Lack of Personal Touch
Communication.
Maintains Systematic Information Increases Workload
Flow Distortion of message/ Dilutes
Identified Source Accuracy of Messages
Expensive
Answerability of Action
Control
 Develops Strong Relationship
 Informal Communication/Grapevine
• The communication that is beyond the realm of formal communication is known as
grapevine or informal communication.
• It transmit information in every direction throughout organisation laterally &
Diagonally
• It is unrestricted by formal policies & procedure hence information transmission is
quick.
• No Fixed pattern of communication.
• Selective with regard to the person who receives information.
• It can occur off the job.
• It generally occurs orally & arises out of social interactions .
• It is based on people rather than task.
 Types of Informal Communication/Grapevine
• Single Strand Chain :

• Gossip Chain:
 Contd..
• Cluster Chain:

• Probability Chain
 Informal communication: Advantages & Disadvantages
Advantages Disadvantages
• Social Relation • Incomplete Information
• Need Satisfaction • Distortion
• Speed • Unreliability
• Avenue of Expression • Leakage
• Feedback • Lack of authenticity
• Supporting the formal channels • Problem in fixing Responsibility
• Better Human Relations
 On the basis of Direction
• Flow of communication can be in two ways :
Inter scalar/ vertical communication (flow of communication between
two people at different managerial positions)
Intra Scalar/ lateral / horizontal communication (flow of communication
between people at the same of managerial positions in an organisation.)
• Communication can be classified into different types on the basis of
direction:
Vertical communication
i. Upward communication
ii. Downward communication.
Lateral or horizontal communication, and
Diagonal communication.
 Contd..

D B E U
O P
W W
N A
C F
W R
A D
R
D G
D

H O R I Z O N T A L
 Contd..
• Vertical Communication
Downward Communication

Written Communication
Oral
Communication
• Instructions
• Instructions
• Memorandum
• Speeches
• Letters
• Meetings
• Handbooks
• Telephone
• Pamphlets
• Procedure
• Policy Statement
• E-mails
 Contd..

Merits & Limitations of Downward Communication

Merits Limitations

Mission & Goals Distortion

Plans & Policies Incomplete Information
Duty & Authority Time consuming
Job Satisfaction Filtration of Information
 Contd..

Merits & Limitations of Upward Communication

Merits Limitations

Feedback Fears & Apprehensions

Creative Ideas Filtration
Better Relation Time consuming
Overcome Resistance to change Inattention of Superiors
Increased Motivation Low Morale
 Contd..
• Horizontal Communication or Lateral Communication

Managing Director

Divisional Manager (Steel) Divisional Manager (Cement)

Deptt.
Deptt. Deptt.
Deptt. Deptt. Deptt. Head Head
Head Head Head
(Production)
Head (Finance) (Marketing)
(Finance) (Marketing) (Production)

Horizontal or Lateral Communication

[(--------) Denotes Horizontal Communication]
 Contd..

Disadvantage
Advantage
• Lack of control
• Improves Understanding
• Conflict
• Enhances coordination
• Time consuming
• Increases productivity
• Lack of Discipline
• Raises confidence
• Teamwork
 Barriers to Communication

Barriers to Communication

Physical or Socio-
Language Organizational
Mechanical Psychological Personal Barriers
Barriers Barriers
Barriers Barriers
 Contd..
• Physical & Mechanical Barriers:
Noise
Distance
Time
Information Overload
Physical Barriers
Use of words with Different meanings
Denotations & Connotations
 Contd..
• Language Barriers: • Socio-Psychological Barriers :
Unclear Message Differences in Perception
Faulty Translation Differences in Attitude
Specialist Language Emotions
Unclarified Assumptions Inattention
Closed minds
Premature Evaluation
Distrust
Resistance to change
Cultural Differences
 Contd..
• Organisational Barriers : • Personal Barriers:
Status Relationship Attitude of superiors
One-way Flow Lack of confidence in Subordinates
Organisation structure Insistences on Proper channel
Rules & Regulation Ignoring communication
Distance Barriers Filtering of information
Physical Barriers Lack of time
Mechanical Barriers Message overload
Barriers in subordinates
Miscellaneous Barriers
 Strategies for Overcoming Barriers
• Two-Way Communication
• Reinforcing the Communication Network
• Use of Appropriate Language
• Mutual Trust
• Clarity of Message
• Timely Message
• Consistency of Message
• Good Relations
• Feedback
• Empathetic Listening
• Flexibility
Seven C’s of Effective Communication
• Completeness
• Conciseness
• Consideration
• Clarity
• Concreteness
• Courtesy
• Correctness
 Contd…

Completeness - The communication must be complete. It should convey all facts required
by the audience. The sender of the message must take into consideration the receiver’s
mind set and convey the message accordingly. A complete communication has following
features:
• Complete communication develops and enhances reputation of an organization.
• Moreover, they are cost saving as no crucial information is missing and no additional
cost is incurred in conveying extra message if the communication is complete.
• A complete communication always gives additional information wherever required. It
leaves no questions in the mind of receiver.
• Complete communication helps in better decision-making by the
audience/readers/receivers of message as they get all desired and crucial information.
• It persuades the audience.
 Contd…

Conciseness - Conciseness means wordiness, i.e, communicating what you want to

convey in least possible words without forgoing the other C’s of communication.
Conciseness is a necessity for effective communication. Concise communication
has following features:

• It is both time-saving as well as cost-saving.

• It underlines and highlights the main message as it avoids using excessive and
needless words.
• Concise communication provides short and essential message in limited words to
the audience.
• Concise message is more appealing and comprehensible to the audience.
• Concise message is non-repetitive in nature.
 Contd…

Consideration - Consideration implies “stepping into the shoes of others”.

Effective communication must take the audience into consideration, i.e, the
audience’s view points, background, mind-set, education level, etc. Make an
attempt to envisage your audience, their requirements, emotions as well as
problems. Ensure that the self-respect of the audience is maintained and their
emotions are not at harm. Modify your words in message to suit the
audience’s needs while making your message complete. Features of
considerate communication are as follows:

• Emphasize on “you” approach.

• Empathize with the audience and exhibit interest in the audience. This will
stimulate a positive reaction from the audience.

• Show optimism towards your audience. Emphasize on “what is possible”

rather than “what is impossible”. Lay stress on positive words such as jovial,
committed, thanks, warm, healthy, help, etc.
 Contd…

Clarity - Clarity implies emphasizing on a specific message or goal at a time,

rather than trying to achieve too much at once. Clarity in communication has
following features:

• It makes understanding easier.

• Complete clarity of thoughts and ideas enhances the meaning of message.
• Clear message makes use of exact, appropriate and concrete words.

Concreteness - Concrete communication implies being particular and clear

rather than fuzzy and general. Concreteness strengthens the confidence.
Concrete message has following features:

• It is supported with specific facts and figures.

• It makes use of words that are clear and that build the reputation.
• Concrete messages are not misinterpreted.
 Contd…

Courtesy - Courtesy in message implies the message should show the sender’s
expression as well as should respect the receiver. The sender of the message
should be sincerely polite, judicious, reflective and enthusiastic. Courteous
message has following features:

• Courtesy implies taking into consideration both viewpoints as well as feelings of the
receiver of the message.
• Courteous message is positive and focused at the audience.
• It makes use of terms showing respect for the receiver of message.
• It is not at all biased.

Correctness - Correctness in communication implies that there are no

grammatical errors in communication. Correct communication has following
features:
• The message is exact, correct and well-timed.
• If the communication is correct, it boosts up the confidence level.
• Correct message has greater impact on the audience/readers.
• It checks for the precision and accurateness of facts and figures used in the message.
• It makes use of appropriate and correct language in the message.
 Principles of Effective Communication
• Speed
• Clarity of Message
• Creation of impression
• Two way traffic
• Credibility
• Content
• Completeness
• Capability
• Accuracy
• Economy
• Secrecy
• Safety