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Lecture 1: Introduction to Business Communication

What is Communication?

Communication is the process of transferring information and meaning between senders and receivers using one
or more written, oral, visual, or electronic channels. The communication is effective only-
 when the message is understood by the receiver, and
 when it encourages action or helps the receiver to think in new ways.

Business communication is the communication required of an organization in both its external and internal
environment.

Communication is important to your career:

Improving your communication skills is the most important step you can take in your career. You can have
greatest ideas in the world, but they are no good to your company or to your career if you can’t express them
clearly and persuasively. As you take leadership and management roles, communication becomes even more
important. The higher you rise in organization, the less time you will spend using the technical skills of your
particular profession and the more time you will spend communicating. Top executives spend most of their time
communicating, and business people who can’t communicate well don’t stand much chance of reaching the top.
The Benefits of Effective Communication

Our ability to communicate increases productivity, both our organization’s and ours. It shapes the impression
we make on our colleagues, employees, supervisors, investors, and customers. It allows us to understand the
needs of these stakeholders and to respond to those needs. Whether we run our own business, work for an
employer, invest in a company, or raise money for charities, our communication skills determine our success.

1) Quicker problem solving in which less time is spent on understanding problems and more is spent on
creating solutions
2) Stronger decision making based on timely reliable information
3) Increased productivity and lower costs
4) Enhanced professional images for both employees and companies
5) More persuasive marketing messages.
6) Earlier warning of potential problems, from rising business costs to critical safety issues.
7) Better financial results and higher return for investors.
8) Greater employee engagement with their work, leading to higher employee satisfaction and lower
employee turnover.
9) Effective communication strengthens the connection between a company and all its stakeholders,
employees, customers, shareholders, suppliers.

Characteristics of Effective Business Messages

Effective business messages have a number of common characteristics. They-

 Provide practical information: Business messages give useful information, whether it’s to help the
audiences perform a desired action or understand a new company policy.
 Give Facts rather than vague impressions: To make the message effective we must use concrete
language, specific detailed information that is clear, convincing, and accurate. When we give opinion,
we have to present compelling evidence to support our conclusion.
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 Present information in a concise, efficient manner: We have to highlight the most important
information, rather than dumping everything on the reader. Business messages frequently use tables,
charts, photos, or diagrams to clarify or condense information.
 Clarify expectations and responsibilities: Business messages clearly state what we expect from
audience members of, or what we can do for them.
 Persuade others and offer recommendations: Business messages frequently persuade employers to
take a plan of action, and customers to purchase a product or service.

The Basic Forms of Communication

Nonverbal Communication: The most basic form of communication that enables people to communicate
without words is nonverbal communication. It includes all the cues, gestures, facial expressions, clothing,
attitude, and personal space. It is less structured than verbal communication. When you communicate
nonverbally, you sometimes do so unconsciously.

Verbal Communication: Verbal communication consists of words arranged in meaningful patterns. To create a
thought, we arrange words according to the rules of grammar. We then transmit the message in spoken or
written form and we expect that someone will hear or read that message.

Communication in Organizational Settings

 Internal Communication
Internal communication refers to the exchange of information and ideas within an organization. Managers and
co-workers continuously collect and exchange information to do their jobs. In most businesses, much
information can be exchanged internally by phone, e-mail, fax, memo, or company intranet. There are both
formal and informal communication network inside an organization.

Internal Formal Communication Network is the official structure of an organization. Information may travel
down, up, across an organization’s formal hierarchy.
 Downward flow. Organizational decisions are usually made at the top and then flow down to the people
who will carry them out.
 Upward flow. To solve problems and make intelligent decisions, managers depend on lower level
employees for accurate and timely information.
 Horizontal Flow. Communication also flows from one department to another, either laterally or
diagonally.

Apart from formal communication network, every organization has an internal Informal Communication
network- a grapevine- that supplements official channels. Employees have casual conversations among each
other in the office. The grapevine is important for an organization because about 80% of the information that
travels along grapevine is relevant to business, and 75% to 95% of it, is accurate.

 External Communication
External Communication carries information into and out of the organization. Companies constantly exchange
messages with customers, suppliers, distributors, competitors, investors, and journalists.

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Formal External Contact with outsiders: A marketing or public relation team creates and manages the flow
of formal messages to outsiders. They handle messages such as statement to the press, letters to investors,
advertisement, and price increase announcements. Moreover, when a crisis, such as accidents, strikes, and
product failure- hits the company, the public relations team helps the company to communicate honestly, and
openly.

Informal External Contact with outsiders: As a member of an organization, we are automatically an informal
channel for communication with customers, investors, and other outsiders. In the course of our daily activities,
we talk to our friends and family members. During a trip to shopping mall, we notice how a competitor’s
products are selling. Thus, we communicate informally with the external environment.

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The Communication Process

Communication is a dynamic process that can be broken into seven stages.

1. The sender has an idea. We form an idea and want to share it.
2. The sender encodes the idea. When we put our idea into a message that our receiver will understand,
we are encoding it.
3. The sender produces the message in a transmittable medium. With the appropriate message to
express idea we then need some way to present the message to the intended audience. Selecting the best
medium for each message is an important communication skill
4. The sender transmits the message through a channel. Technology continues to provide new
communication channels to transmit messages. The distinction between a medium and a channel is that
the medium is a form the message takes, and the channel is a system used to deliver the message. The
channel can be a face -to -face conversation, the internet, another company- any method or system
capable of delivering messages.
5. The receiver gets the message. The receiver must first get the message. If we send a letter, the receiver
has to read it before understanding it. If we give a speech, the listeners have to be able to hear us.
6. The receiver decodes the message. The receiver then decodes- absorb and understand- the message.
The decoded message must be stored in the receiver’s mind.
7. The receiver responds to the message and sends feedback to the sender. Feedback is the receiver’s
response to us. It enables us to evaluate our message’s effectiveness.

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