8.

1 Introduction
Communication is one of the most important part of human life as well as mean of business
expansion. In the business sector various communication methods are used to promote a
product or services, or organization; it is also used to deliver information and receive
information from others. It is also a means of relaying between a supply chain, for example the
consumer and manufacturer. The word Communication comes from a Latin word
“communicare” which means to share or participate.

In simple words Communication is the process of transmitting information and common

understanding from one person to another. In this article, I discuss the communication process,
barriers to communication, and improving communication effectiveness.

Business Communication
Communication is neither transmission of message nor message itself. It is the mutual exchange
of understanding, originating with the receiver. Communication needs to be effective in
business.

There are various definitions of communication out of that some definitions are as follows;

 American Management Association defines, ‗Communication is any behavior

that results in an exchange of meaning‘.
 Peter Little defines communication as, ‗Communication is the process by
which information is transmitted between individuals and/or organizations so that
an understanding response result‘

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. But now with advent of
technology, we have cell phones, video conferencing, emails, and satellite communication to
support business communication. Effective business communication helps in building goodwill
of an organization.

Importance of Business Communication

Business communication is one of the important part of business. Even success of business also
depends on communication between employees and owner, Owner and manager, manager and
employees, salesman and customers etc. However, we can define the importance of business
communication as follows;

a) Instructions Motive: To giving instructions to the particular person or receive instruction

from someone business communication is required. In this, instructions basically flow from top
to the lower level.

b) Integration Motive: There are number of integrated activities in business which required to
better performance of the particular business. 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.

c) Information Motive: Providing information to the employees or persons involved in the

management of the business is also important motive in the business communication. Business
communication helps to share, gather and distribute the information

d) Evaluation Motive: 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.

e) 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.

f) 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.

Characteristics of business communication

he characteristics of business communication can be identified as:

Business communication is goal-oriented

Business communication has a definite and practical purpose which is instrumental in initiating
the process. This purpose is practical as it changes with time and needs.

Business communication is all pervasive and inevitable

Business communication is essential socially, psychologically, formally or informally within and
without the organization. Therefore it is believed that-‘Business communication is the life-blood
of the organization”.

Business communication is dynamic

The methods, means and type of communication keep changing according to the changing
situations in business. A manager in a day communicates differently when taking an interview,
when attending a meeting, when briefing a subordinate, when negotiating or when resolving a
conflict. At times manager adopts assertive style or authoritative or even cooperative style of
communication. Therefore, communication is contextual and ever-changing.

Communication is continuous

Though communication is dynamic yet it does not end. Once a predetermined objective is
achieved communication reaches another level to achieve another objective. For instance, an
organization invites application for the vacant posts; communication moves to the next stage
when screening of the applicants takes place. After screening and short listing, the next stage is
interviews. Once the selection process is over communication takes place to train the newly
appointed employees. This establishes the fact that business communication is continuous; it
never ends but adapts itself to the situation. Therefore, it is also said that communication is
flexible.

Business communication is time-bound

Communication in a business organization varies with time. Every objective, assignment or

project is to be achieved in a stipulated time period. For instance, the companies manufacturing
electronic goods change their marketing and sales strategies every festive season, in the pre-
budget as well as post budget period. They offer discounts, attractive offers during the festive
season to entice the consumer. During the pre-budget period these companies attract the
consumers to buy the goods before the price hike.

Business communication is based on internal and external organizational activities

In an organization, routine work is carried out through internal and external activities. Internal
organizational activities are carried out within the confines of the organisation like training,
meeting, instructing whereas, external activities relate the organization with other organizations,
government, consumers, masses. Collaboration of two companies, one company taking over the
other or the manufacturing company hiring an external agency to advertise and market the
manufactured products are examples of external business activities.

Business communication flows in a fixed direction

Information either formal or informal an organization floats in a specific direction. In formal

communication, the information flows in vertical, horizontal or crosswise direction. Informal
communication can be cluster chain, single chain, etc.

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.

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.

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.

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.

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 labor-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 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.
These characteristics make business communication distinct from communication.

Types of Business Communication

Business communication is somewhat different and unique from other types of
communication since the purpose of business is to make money. Thus, to develop profitability,
the communicator should develop good communication skills. Knowing the importance of
communication, many organizations train their employees in communication techniques.

1) Internal Communication

Communication within an organization is called Internal Communication‖. It includes all

communication within a specific organization. It may be informal or a formal function of the
firm. Upward Communication, Downward Communication and Horizontal Communication is
major types of Internal Business Communication.

a) Upward Communication: Upward communication is the flow of information from

subordinates to superiors, or from employees to management.

b) Downward Communication: Information flowing from the top of the organizational

management hierarchy and telling people in the organization what are important mission and
what is valued policies. Downward communication generally provides enabling information
which allows a subordinate to do something.

c) Horizontal/Literal communication: Horizontal communication normally involves

coordinating information, and allows people with the same or similar rank in an
organization to cooperate or collaborate. Communication among employees at the same level
is crucial for the accomplishment of work.

2) External Communication

Communication with people outside the company is called external communication‖.

Supervisors communicate with sources outside the organization, such as vendors and customers.