BUSINESS COMMUNICATION

The Communication Process

Class date: 20 Nov, 2023

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 Business Communication
Communication:

Definition: Communication is a process by which information is exchanged

between individuals through a common system of symbols, signs or behavior. It is
a technique for expressing ideas effectively.

In a simple sentence, communication is a process of sending and receiving

messages. However, communication is effective only when the message is
understood and when it stimulates action or encourages the receiver to think in
new ways.

Another simple definition of communication is-

Communication is an exchange of facts, ideas, opinions or emotions by two or
more persons.
Communication is complete when feedback is received, messages understood, the
receiver assigned the same meaning to the message as the sender or communicator
intended, and action taken.
The main purpose of communication is to inform, or to bring round to a certain
point of view, or to elicit action.

The Communication Process:

Communication does not occur haphazardly in organizations. Nor does it happen
all at once. It is more than a single act. Communication is a dynamic, transactional
(two-way) process which consist of six phases linking sender and receiver-
1. The sender has an idea: The sender conceives an idea and wants to share
it.
2. The sender encodes the idea: The sender encodes the idea into a message.
Encoding means giving the idea into a specific form. The sender decides on
the messages form (word, facial expression, gesture), length, organization,
tone, and style- all of which depend on his idea, his audience, and his
personal style or mood.
3. The sender transmits the message: To physically transmit his message to
his receiver, the sender selects a communication channel (verbal or non
verbal, spoken or written) and a medium (telephone, letter, memo, e-mail,
report, face-to-face exchange). This choice depends on his message, his
audiences’ location, his need for speed, and the formality required.
4. The receiver gets the message: For communication to occur, the receiver
must first get the message.
5. The receiver decodes the message: The receiver must decode (absorb and
understand) the sender’s message. Decoding is the process of interpreting
the meaning of the message sent by the sender. The decoded message must
be stored in the receiver’s mind. If all goes well, the receiver interprets the
message correctly, assigning the same meaning to the words as the sender
intended and responding in the desired way.
6. The receiver sends feedback: After decoding the sender’s message the
receiver sends the feedback. Feedback is the sender’s response; it enables
the sender to evaluate his messages’ effectiveness.
The Communications Process

Communication and Business: Communication enables organizations to

function effectively. Achieving success in today’s workplace is closely tied to
the ability of employees and managers to communicate effectively with each
other and with people outside the organization.
The Benefits of Effective Communication in Organization: Effective
Communication helps the employees and their organizations succeed. Their
ability to communicate effectively increases productivity both theirs and their
organizations’. With good communication skills, the employees can anticipate
problems, make decisions, co-ordinate work flow, supervise others, develop
relationships, and promote products and services. They can shape the
impressions they and their company make on colleagues, employees,
supervisors, investors, and customers in addition to perceiving and responding
to the needs of these stakeholders (the various groups they interact with).

Characteristics of Effective Business Messages: Effective Business

Messages have a number of common characteristics-
Provide practical information: Business messages usually describe how to do
something, explain why a procedure was changed, highlight the cause of a
problem or a possible solution, discuss the status of a project, or explain why a
new piece of equipment should be purchased.
Give facts rather than impressions: Business messages use concrete language
and specific details.
Clarify and condense information: Business messages frequently use tables,
charts, or diagrams to clarify or condense information, to explain a process, or
to emphasize important information.
State precise responsibilities: Business messages are directed to specific
audience.
Persuade others and offer recommendations: Business messages frequently
persuade employers, customers, or clients to purchase a product or a service or
adopt a plan of action.

Achieving success in today’s workplace depends on effective

communication among employees and their managers as well as with people
outside the organisation such as customers, suppliers, government, NGO(non-
governmental organizations),and stakeholders (various groups you interact
with).

Communication challenges in today’s workplace

• Advances in technology: Use of new technological tools (internet, e-mail,
voice mail, faxes, intranet, extranet, e-commerce) increase the speed,
frequency,and reach of communication.
• Market Globalization:Increasing tendency of the world to act as one
market driven by technological advances in telecommunication
• Workforce Diversity: Workforce is made up of people with diverse
cultural and ethnic backgrounds.
• Team-based Organizations:Organizations use teams and collaborative
work groups to make fast decisions required to succeed in a global and
competitive market place.

The Basic Forms of Communication

Communication occurs in many forms. The process is fluid, the form in which
a message is communicated changes constantly. Communication can be verbal
or non-verbal, internal or external, formal or informal, spoken or written. In
fact, it can even be a simple smile.
Non-verbal communication: The most basic form of communication is non-
verbal communication. It is the process of communicating without words. So,
non-verbal communication includes any communication occurring without the
use of words. Facial expression, gesture and posture, body movements, touch,
clothing, grooming, aromas etc. are the forms of non-verbal communication.
Verbal communication: Verbal communication is the process of
communicating with words. Verbal communication consists of words arranged
in meaningful patterns. Verbal includes both spoken and written. In the
business world verbal communication is more effective.
Fundamental differences between non-verbal and verbal communication:
Non-verbal communication is less structured, so it’s more difficult to study
while verbal communication is more structured, appropriate and effective.
 Communication in organizational settings
Whether an organization is large, small, or virtual, sharing information among
its parts and with the outside world is the glue that binds the organization
together. To succeed, organizations must share information with people both
inside and outside the company.
Internal External
Planned communication among Planned communication with
insiders (letters, reports, memos, e- outsiders (letters, reports, memos,
Formal

mail) that follows the company’s speeches, websites and news

chain of command release)
Casual communication among Casual communication with
employees (e-mail, face-to-face suppliers, customers, investors
Informal

conversations and phone calls that and other outsiders(face-to-face

do not follows the company’s chain conversations, e-mail and phone
of command) calls)

Communication is the lifeblood of an organization. It includes the internal and

external structure through which messages pass and the way information is
presented as well as the actual content of the messages themselves. As
employees exchange information with people inside and outside the
organization, they use a variety of formal and informal communication.
Internal communication: Internal communication refers to the exchange of
information and ideas within an organization. In most businesses, much
information can be exchanged internally by phone, e-mail, fax, inter-office
memo, or company intranet.
Internal communication helps employees do their jobs, develop a clear sense of
the organization’s mission, and identify and react quickly to potential
problems. To maintain a healthy flow of information within the organization,
effective communicators use both formal and informal channels.
 Formal Communication Network: Through formal communication network
information may travel down, up and across an organizations formal hierarchy.

Informal Communication Network: The informal communication network

carries information along the organization’s unofficial lines of activity and
power. Every organization has an informal communication network- a
grapevine- that supplements official channels. Employees have casual
conversations with friend in the office about anything (personal and business
matters).

External communication:
The external communication network links the organization with the outside
world of customers, suppliers, competitors and investors. This type of
communication carries information into and out of the organization.

Formal communication network:

(Letter, website, phone, fax, internet, videotape)
Companies use formal external communication to create a favorable
impression.
Marketing or public relations team’s job is to create and manage the flow of
formal messages to outsiders.
Informal communication network:
Employees informally accumulate facts and impressions that contribute to the
organization’s collective understanding of the outside world. Informal contact
with outsiders is important for learning about customers needs.

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