Business Communication Notes
Business Communication Notes
1.1 INTRODUCTION
The word “communication” derived from the Latin word ‘communicare’ that means to impart, to
participate, to share or to make common. It is a process of exchange of facts, ideas, opinions and as a
means that individual or organization share meaning and understanding with one another. In other
words, it is a transmission and interacting the facts, ideas, opinion, feeling and attitudes.
It is the ability of mankind to communicate across barriers and beyond boundaries that has ushered
the progress of mankind. It is the ability of fostering speedy and effective communication around the
world that has shrunk the world and made ‘globalization’ a reality. Communication had a vital role to
play in ensuring that people belonging to a particular country or a culture or linguistic group interact
with and relate to people belonging to other countries or culture or linguistic group. Communication
adds meaning to human life. It helps to build relationship and fosters love and understanding. It
enriches our knowledge of the universe and makes living worthwhile.
Exhibit: 1
PURPOSE OF COMMUNICATION
1. 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.
2. For integration: It is consolidated function under which integration of activities is
endeavoured. 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.
3. 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 proceduresetc. 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 inform
others is the main purpose of communication.
4. For evaluation: Examination of activities to form an idea or judgement 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.
5. 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.
6. 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.
7. 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.
8. 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.
9. 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.
Fig. 1.1: Purpose of Communication
10. Other: Effective decision-making is possible when required and adequate information is
supplied to the decision-maker. Effective communication helps the process of decision-
making. In general, everyone in the organization has to provide with necessary information
so as to enable to discharge tasks effectively and efficiently.
Decoding
Feedback
Brain drain
16. Decoding: Decoding is the process of interpretation of an encoded message into the
understandable meaning. Decoding helps the receiver to drive meaning from the message.
17. Feedback: Communication is an exchange process. For the exchange to be complete the
information must go back to whom from where it started (or sender), so that he can know
the reaction of the receiver. The reaction or response of the receiver is known as feedback.
18. Brain drain: On whole process there is a possibility of misunderstandings at any level and
is called brain drain. It may arise on sender side if they do not choose the adequate medium
for delivery of message, by using default channel and it may also arise when receiver does
not properly decode the message. In other words, we can say that it is breakdown of cycle at
any level.
FORMS OF COMMUNICATION
Communication is divided into external and internal communication. External communications are
those communications which are occurring outside the organization like communication with other
companies, with government, general public etc. Internal communications are those which are inside
the organization. Internal communications are further divided into two parts, formal or official and
informal.
• Formal: Formal communication flows along prescribed channels which all members
desirous of communicating with one another are obliged to follow.
• Informal: Along with the formal channel of communication every organization has an
equally effective channel of communication that is the informal channel often called
grapevine, because it runs in all directions—Horizontal, Vertical, Diagonal. It flows around
water cooler, down hallways, through lunch rooms and wherever people get together in
groups.
Formal Communication
ADVANTAGES
1. It passes through line and authority and consequently ensures the maintenance of authority
as well as accountability of the executives’ in-charge.
2. It helps to develop intimate relations between immediate boss and his subordinates.
3. It keeps uniformity in the dissemination of information.
COMMUNICATION
FORMAL INFORMAL
VERBAL NON VERBAL
PROBABILITY
CONSENSUS
DISADVANTAGES
BENEFITS
9. It develops mutual trust and confidence amongst employees of same level which help in
maintaining or promote understanding between similar position holders of different depart-
ments.
10. If employees at similar position communicate to each other for a given task it will create or
develop the feeling of co-ordination among various departments.
PROBLEMS
1. Sometimes it creates rivalry among employees of various departments.
2. Proximity shows the liking and disliking of an employee who is near by another in respect
of space. Like in any organization HR department and Marketing department are near to
each other then Manufacturing department. So proximity exists between HR and Marketing
department and they favour each other as compared to Manufacturing department.
3. Biasing shows the liking and disliking of an employee due to religion, caste, family back-
ground, personality etc.
Methods of horizontal communication
1. Face-to-face discussion: When individual communicate directly to another. Face-to-face
communication minimises the problem of misinterpretation and quick feedback makes the
communication more effectively.
2. Telephonic conversation: When the employees are busy with their work or they are sited
far from each other then telephonic conversation become more relevant against face to face
conversation. It saves time but sometimes congestion or disturbance and any other obstacles
create delay and distort the message.
employees on weekly, monthly, quarterly, annually basis where all the members
3. P
are assembled and discuss on pre-determined issues.
e
4. Memorandum: Memorandum is a written form of communication which
r
transmits between different departments in the same organisation. It is also
i
called inter office letter.
o
d Consensus
i When a number of people irrespective of their status, sit down and confer with one
c another to arrive at a decision acceptable to all, it is called consensus. The format of these
a communications is predeter-mined and can not be altered.
l Consensus involves consultation
m
11. Chief executive takes up the problem and analysis it to understand.
e
12. Collect additional facts and information.
e
t 13. Try to find out various means to solve it.
i 14. Find alternatives.
n 15. He contacts the members individually or invites them to a meeting.
g 16. Problem is spelled out to the members.
: 17. To carefully listen all members view.
P 18. Arrived at solution.
e ADVANTAGES
r 1. Decisions are taken after consultation among various members; they find it easy
i to accept them.
o 2. It promotes harmony among the members of the group. If any conflict and split
d exits between members it will be carefully find out and try to solve it.
i
DISADVANTAGES
c
1. Member is forced to subscribe to a view he doesn’t hold.
a
l 2. Sometimes it may project the false image of management because members
think that management may not be able to handle their problem efficiently.
m
e 2.1.2 Grapevine/Informal Communication
e Factor responsible for the grapevine phenomenon
t 1. Feeling of certainty or lack of direction when the organization is passing
i through a difficult period.
n 2. Feeling of inadequacy or lack of self confidence on the part of employee,
g leading to the formation of gaps.
m 3. Formation of a clique or favoured group by the managers, giving other
e employees a feeling of insecurity or isolation.
a
nMERITS:
s
m
e
e
t
i
n
g
b
e
t
w
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1. Under grapevine message travel or transmitted faster than any other form of communica-
tion because group formation is based on individual’s own liking and disliking.
2. It supports other channels of communication.
3. Feedbacks are quickly comes out from this type of communication.
4. When an individual communicates with other individual through grapevine it will develop
the cohesiveness and maintain or promote harmony between members of group.
5. By using grapevine communication, employees feel emotional relief. Because they can
communicate with other without the feeling of inadequacy and without threat of higher
authority.
DEMERITS
1. There is a great possibility of distortion of message between members of group.
2. Transmission of message depends upon willingness of sender and what method they used in
grapevine which causes sometimes transmission of incomplete information.
How to make effective
1. The managers should try to spot the leaders. So the harmful rumours do not reach the
employees.
2. Involve the workers in the decision making process.
3. The management should immediately use the official channels to contradict the rumours.
Verbal communication
Verbal communication is when we communicate our message verbally to whoever is receiving the
message. It is of two types oral and written which had their own advantages and disadvantages.
Oral communication: Oral communication is the communication where the message or
information exchanges by spoken words. It can be done by both face to face and also through
mechanical devices. For more details please refer to chapter 5.
Written communication: Written communication is the communication where the message or
information exchanges by written words. Letter, telegraph, fax, e-mail are examples of written
communication. Written communication guarantees that everyone concerned has the same
information. It provides a longlasting record of communication for future. Written instructions are
essential when the action called for is crucial and complex. To be effectual, written communication
should be understandable, brief, truthful and comprehensive. For more detail please refer to chapter
no. 6.
Non-verbal communication
Non-verbal communication is usually understood as the process of communication through sending
and receiving wordless messages. Such messages can be communicated through gesture; body language
or posture; facial expression and eye contact; object communication such as clothing, hair styles or
even architecture; symbols and infographics. Speech may also contain non-verbal elements known as
paralanguage, including voice quality, emotion and speaking style, as well as prosodic features such as
rhythm, intonation and stress. Likewise, written texts have non-verbal elements such as handwriting
style, spatial arrangement of words, or the use of emotions. For more details please refer chapter no. 6.
BARRIERS OF COMMUNICATION
1. Wrong Choice of Medium
Each communication must be transmitted through an appropriate medium. An unsuitable medium
is one of the biggest barriers to communication.
Examples: When communication takes place in big organisation and departments or division are
far from each other. If any manager wants to communicate with others for confidential matter than
they opt written communication as compared to other medium of communication. So, it is required
that medium should be accurate and if wrong or unsuitable medium is selected than it leads to the
biggest barrier to communication.
2. Physical Barriers
• Noise—In factory, oral communication is rendered difficult by the loud noise of machines.
• Electronic noise interferes in communication by telephone or loud speaker system.
• The word noise is also used to refer to all kind of physical interference like illegible hand
writing, bad photo-copies etc.
• Time and distance.
— Congestion in telephone and network facilities.
— People working in different shifts.
— Faulty seating arrangement in a hall.
3. Semantic Barriers
• Interpretation of words
A person interprets same word in a different meaning and this will cause barrier between
the communications. Murphy and Peck in their book ‘Effective Business Communication’
mentioned, the little word ‘run’ has
71 meanings as a verb
35 as noun
4 more as an adjective.
• Bypassed instructions
Bypassing is said to have occurred if the sender and the receiver of the message attribute
different meanings to the same word or use different words for the same meaning.
“Take it to be our stockroom and burn it”
In official language burn it means to make more copies of the same document.
• Denotation & Connotations
Words have two types of meanings denotative and connotative. Denotative—
The literal meaning of a word is called its denotative meaning. It must
inform and names objects without indicating any positive or negative.
Connotative—It allows qualitative judgments and personal reactions.
Like—Honest, cheap, sincere etc.
Ex:—“He gave us cheap material”.
“At this shop, they sell things cheap”.
First one is favourable connotation and second is unfavourable.
To avoid this problem (By passed instruction and connotative meaning of words) the
followings can be used:
❖ Prefer words which are familiar to the receiver.
❖ If words are unfamiliar to the receiver, we should make meanings clear the very first time
we use it.
❖ We should choose words with positive rather than negative connotation.
4. Socio-Psychological Barriers
• Attitude and opinions
The information which agrees with opinion and attribute of the individual is favourable for
that particular individual.
• Emotions
It plays an important role in the act of communication.
If the sender is perplexed, worried, excited, afraid, nervous then he will not be able to
organize his message properly.
• Closed Mind
A person with a closed mind is very difficult to communicate with. We hold our opinion so
rigidly that we just refuse to listen.
• Status-consciousness
We are over-conscious of our lower or higher rank and do not express ourselves candidly.
• The source of information.
We react according to the trust we repose in the source from which the communication
originates.
• Faulty transmission
Most of part in the message is lost in transmission.
(In oral communication, something in the order of 30% of the information is lost in each
transmission.)
• Poor retention
Oral message in particular are lost due to poor human retention ability.
(Employees retain only about 50%)
Barriers of Communication
SEVEN Cs OF COMMUNICATION
Seven Cs of Written Communication
1. Clarity
Clarity of thought: It comes from a careful consideration of the objective, content and
medium of communication.
Clarity of Expression:
1. Use simple word, easy to understand words:
Avoid them Use them
Compensate Pay
Facilitate Help
Utilise Use
2. Use Single words for long phrases:
Long Phrases Single Words
At all times Always
For the purpose of For
Previous to Before
On account of Because
3. Use verbs for nouns (its brings about simplicity and clarity):
Using Nouns Using Verbs
(Difficult) (Simple)
Come to a conclusion Conclude
Make a decision Decide
Submit a proposal Propose
Take into consideration Consider
4. Avoid double entry
Double entry Simple
Actual fact Fact
End result Result
Period of one week One week
Previous experience Experience
5. Avoid ambiguity: If your message can mean more than one ambiguous. Faulty
punctuation causes the ambiguity.
Go. slow work in progress
Go slow. work in progress
6. Use short sentences: Use one sentence to express only one idea. If a sentence runs
beyond 30 words, it is better to break it up into two sentences.
2. Completeness
While answering a letter or in communication with other make it sure that you have
answered the all question.
Checking for the five w’s questions.
• Who
• What
• When
• Where
• Why
3. Conciseness
• Include only relevant facts
• Avoid repetition
• Organise your message well.
4. Consideration
• Adopt the you-attitude
We-attitude You-attitude
I want to express my Thank you for
Sincere thanks for your kind words.
The good words…..
• Avoid gender bias
Avoid Use
Chairman Chair person
Policeman Police Sir/Madam
5. Courtesy
In business we must create friendliness with all those to whom we write. Friendliness is
inseparable from courtesy.
• Answer the letters promptly.
• Omit irritating expressions.
(You neglected, you irresponsible, you are unaware).
• Apologise sincerely for an omission/thank enormously for a favour.
6. Correctness
• Give correct facts.
• Send your message at the correct time.
• Send your message in the correct style.
7. Concreteness
• Always use specific fact and figures.
• Message should be definite and vivid.
• Avoid exaggeration.
Fig. 2.5: 7 Cs of Written Communication