B.

COM PART 2
BUSINESS COMMUNICATION
SET 1
COMPILED BY SIR M. UMER.NISAR
 Communication

The word communication is derived from the Latin word COMMUNUS, means common or to
share. It is Two-way process of reaching mutual understanding, in which participants not only
exchange (encode-decode) information, news, ideas and feelings but also create and share
meaning. In general, communication is a means of connecting people or places. In business, it is
a key function of management--an organization cannot operate without communication between
levels, departments and employees.
Prof. Harold Janis says:
We define communication as the process by which message effect response.
Greek Philosopher Aristotle says:
Communication as the search for all available means of persuasion.
The oxford dictionary defines:
Communication as the action of conveying or exchanging information and ideas.
G.G. Brown define as:
Communication is transfer of information from one person to another, whether or not it causes
confidence. But the information transferred must be understandable to the receiver.
Fred G. Meyer define as:
Communication is the intercourse by words, letters or messages.
Effective Business Communication
Effective business communication skills are vital to successful co-worker and customer
interactions. Both the speaker and the listener share responsibility of making the message clear,
but effective communication goes far beyond simple speech and hearing. Body language, tone of
voice, word choice, message clarification and communication style all come into play, and can
make the difference between success and failure in interpersonal transactions and interactions.

Objectives of communication
The objectives of business communication is wide and large. Information, Order, permission,
Warning, Motivation, Advice and Raising morale are activated through the means of
communication. The objectives of business communication are stated below:

1. To Exchange Information:
The prime objective of communication is to exchange information internally and externally i.e.
to deal within the organization and outside the organization.

2. To Achieve Goal:
The goal of the organization can be obtained through effective organizational communication.
Everybody tries to acquire such goal and therefore it requires effective organizational
communication.

3. To Solve Problem:
 Communication can remove the gap between employees and employer. Fruitful communication
ensures a network in an Organization to solve problems. Conflict arises and exists in an
Organization. Fruitful communication ensures a network to solve conflict. It also remove the gap
between employee and employer.

Importance of Communication in an Organization

Life blood of every organization:
Organizational activities require the people exchange information, ideas, plans, proposal, etc.
through oral and written communication, therefore effective communication both within and
outside the organization is its lifeblood.
Internal communication is the transmission of information between organizational members or
parts of the organization. It takes place across all levels and organizational units of an
organization.

Downward communication (senior to junior)

Downward communication is that communication in which information flows form superior to
subordinates. Through downward communication, managers communicate organizational goals,
policies, procedures, orders, instructions, decisions etc. to their subordinates.

Upward communication (junior to senior)

The communication channel which pushes the flow of information upward is known as upward
communication. Managers of the business organizations have to receive information continually
form the lower levels below them to know about the progress of works. It occurs when
information flow upper the hierarchy form subordinates to superiors. Media of these types of
communications are meetings, suggestions, direct letters, direct communications etc.

Horizontal communication (same rank)

Horizontal communication refers to the interaction among people within the same level of
hierarchical structure in organizations. Horizontal communication includes the relay of
information between and among individuals, units and departments that fall into the same level
of experience and expertise. This is in contrast to vertical communication, which involves
communication between individuals and groups at different levels within companies.

External communication
External communication includes messages from an organization to stakeholders outside the
company, via such media as television, radio, print and digital tools. The goal is to build
awareness and promote products to potential customers, and to generate positive goodwill from
communities and public officials.

Components /Process/Elements/Factors/ of Communication:

The main components of communication process are as follows:

1. Context - Communication is affected by the context in which it takes place. This

context may be physical, social, chronological or cultural. Every communication
proceeds with context. The sender chooses the message to communicate within a context.

2. Sender / Encoder - Sender / Encoder is a person who sends the message. A sender
makes use of symbols (words or graphic or visual aids) to convey the message and
produce the required response. For instance - a training manager conducting training for
new batch of employees. Sender may be an individual or a group or an organization. The
views, background, approach, skills, competencies, and knowledge of the sender have a
great impact on the message. The verbal and nonverbal symbols chosen are essential in
ascertaining interpretation of the message by the recipient in the same terms as intended
by the sender.
3. Message - Message is a key idea that the sender wants to communicate. It is a sign that
elicits the response of recipient. Communication process begins with deciding about the
message to be conveyed. It must be ensured that the main objective of the message is
clear.

4. Medium - Medium is a means used to exchange / transmit the message. The sender
must choose an appropriate medium for transmitting the message else the message might
not be conveyed to the desired recipients. The choice of appropriate medium of
communication is essential for making the message effective and correctly interpreted by
the recipient. This choice of communication medium varies depending upon the features
of communication. For instance - Written medium is chosen when a message has to be
conveyed to a small group of people, while an oral medium is chosen when spontaneous
feedback is required from the recipient as misunderstandings are cleared then and there.

5. Recipient / Decoder/Receiver - Recipient / Decoder is a person for whom the

message is intended / aimed / targeted. The degree to which the decoder understands the
message is dependent upon various factors such as knowledge of recipient, their
responsiveness to the message, and the reliance of encoder and decoder.

6. Feedback - Feedback is the main component of communication process as it permits

the sender to analyze the efficacy of the message. It helps the sender in confirming the
correct interpretation of message by the decoder. Feedback may be verbal (through
 words) or non-verbal (in form of smiles, sighs, etc.). It may take written form also in
form of memos, reports, etc.
7. Noise and Barriers- While transmitting the information to the receiver, the sender
faces lots of barriers. These noise and barriers are explained as under:

(a) On sender’s side:- Noise and barriers may take place during the process of encoding.
Some of them may be caused by distraction, lack of concentration, typing mistake, poor
language etc.

(b) In the medium:- Some barriers are caused by medium such as poor transmission on T.V.
and radio misprinting in newspapers etc.

(c) On receiver’s side:- The receiver can also create certain barriers to the receiving of
message such as poor reading ability, emotions, lack of concentration etc.

Barriers to Communication/Problems

However, even when communicating in the same language, the terminology used in a message
may act as a barrier if it is not fully understood by the receiver(s). For example, a message that
includes a lot of specialist jargon and abbreviations will not be understood by a receiver who is
not familiar with the terminology used.

Psychological Barriers:
The psychological barrier of communication is the influence of psychological state of the
communicators (sender and receiver) which creates an obstacle for effective communication.

Communication is highly influenced by the mental condition that the communicators are in and
is disturbed by mental disturbance. If the people involved in communication are not emotionally
well, they won’t be able to communicate properly.

Physiological Barriers:
Physiology is the state of human body and mind. Physiological barriers of communication occur
due to the physical condition of sender or receiver which might even be physical disabilities. It
includes physical dysfunction and other physical dysfunctions.Effective communication requires
proper functioning of the senses in both the sender and the receiver. Limitation of human body
and mind adds up to the physiological barrier causing interruption in message from reaching its
destination or having meaning.

Physical Barriers:

Physical barrier is the environmental and natural condition that act as a barrier in communication
in sending message from sender to receiver. Organizational environment or interior workspace
design problems, technological problems and noise are the parts of physical barriers. When
messages are sent by the sender, physical barriers like doors, walls, distance, etc.

Semantic Barriers:

Semantic is the study of meaning, signs and symbols used for communication. The word is
derived from “sema”, a Greek word meaning signs. Semantic barriers to communication are the
symbolic obstacles that distorts the sent message in some other way than intended, making the
message difficult to understand. The meaning of words, signs and symbols might be different
from one person to another and the same word might have hundreds of meanings.

TYPES OF COMMUNICATION:

Verbal communication refers to the form of communication in which message is

transmitted verbally; communication is done by word of mouth and a piece of writing. Objective
of every communication is to have people understand what we are trying to convey. In verbal
communication remember the acronym KISS (keep it short and simple).

When we talk to others, we assume that others understand what we are saying because we know
what we are saying. But this is not the case. Usually people bring their own attitude, perception,
emotions and thoughts about the topic and hence creates barrier in delivering the right meaning.
Verbal Communication is further divided into:

 Oral Communication
 Written Communication

Oral Communication
In oral communication, Spoken words are used. It includes face-to-face conversations, speech,
telephonic conversation, video, radio, television, voice over internet. In oral
communication, communication is influence by pitch, volume, speed and clarity of speaking.

Written Communication
In written communication, written signs or symbols are used to communicate. A written message
may be printed or hand written. In written communication message can be transmitted via email,
letter, report, memo etc. Message, in written communication, is influenced by the vocabulary &
grammar used, writing style, precision and clarity of the language used.

Written Communication is most common form of communication being used in business. So, it
is considered core among business skills.

Memos, reports, bulletins, job descriptions, employee manuals, and electronic mail are the types
of written communication used for internal communication. For communicating with external
environment in writing, electronic mail, Internet Websites, letters, proposals, telegrams, faxes,
postcards, contracts, advertisements, brochures, and news releases are used.

Nonverbal Communication
Nonverbal communication is the sending or receiving of wordless messages. We can say that
communication other than oral and written, such as gesture, body language, posture, tone of
voice or facial expression, is called nonverbal communication. Nonverbal communication is all
about the body language of speaker.
Nonverbal communication helps receiver in interpreting the message received. Often nonverbal
signals reflect the situation more accurately than verbal messages. Sometimes nonverbal
response reverses verbal communication and hence affects the effectiveness of message.

Nonverbal communication may be divided into the following three categories.

1) Appearance:
Appearance effect the quality of written and spoken messages follow.

a) Written Message:

The overall appearance size, color, weight, postage and the letters overall appearance length
stationary, enclosures layout, etc.

b) Spoken Message:

Personal appearance of the speaker clothing, jewelry, hairstyle. Neatness etc., may tell about the
age, sex, occupation, nationality, social, economic and job status.

2) Body Language:
Facial expression, posture gestures smell, touch, voice etc. are included in body language.

a) Facial Expression:

The eyes and face may express the hidden emotions e.g. anger, fear, joy love, surprise, sadness,
interest etc.

b) Posture and Gesture:

The messages can effectively be communicated by actions. Deaf people and traffic constable
make use of actions.

c) Smell

Good or bad smell often express the situation e.g. smell because of oil. Similarly, fragrance and
perfume convey emotions and feelings better than spoken or written words.

3) Silence:
Silence is an effective medium of expressing serious feeling and emotions e.g. death of relative
or loss in business.

4) Time:
Time communicates in many ways, e.g. waiting for a long time may indicate interest or love.

5) Sound:
Human sound (cleaning the throat, laughing, crying etc.) and non-human sound (bell, rain etc.)

PLANNING STEPS:
1. Knowing the purpose of the message.

2. Visualizing the reader (receiver).

3. Choosing the ideas to be included.

4. Getting all the facts to back up the ideas.

5. Outlining and organizing the message.

1. Knowing the purpose of the message:

Purpose is the primary reason to write or speak. Its identification leads to determination of the
contents of the message. Each message must have a specific purpose e.g. asking for negotiation
on defective goods, announcing clearance sale, awakening inactive amount, making inquiry,
seeking job etc. in addition to the specific purpose, the general purpose of every business
message must be to establish goodwill and good relations. For example, the purpose of a
collection letter should be two-fold i.e. asking for money and at the same time maintaining good
relations with the customer.

2. Visualizing the Reader:

It is very important to adapt the message to the reader’s views. But writer often does not know
much about the reader. However, attempt should be made to know about the following points.
a. What relationship is with the reader? Is the reader a customer or a supplier, a boss or a
subordinate?

b. What is position of the reader? Is reader an engineer or an accountant, a supervisor or an

executive?

c. What is reading level of the reader? It can be guessed by noting the educational qualification,
technical training, professional status and experience of the reader.

d. What are interests of the reader relating to job and social activities?

e. How much reader knows about the subject matter and its background?

f. Is the reader prejudiced or biased on religious, political and social issues?

g. What are reader’s unspoken needs for information? This can be known by reading between
the lines.

3. Choosing the Ideas:

The next step is to choose the ideas. The ideas to include depend upon the message being
communicated. For example. A welcome letter to a customer, should include the following ideas:
a. Welcoming and tanking the reader for opening the account.

b. Stating the services and facilities offered to regular customers.

c. Mentioning the working hours.

d. Informing about the credit terms and discount rates.

e. Assuring to help in solving the customer’s problems.

4. Getting all the Facts:

The facts and figures to be stated in a message may be certain names, dates, address,
percentages, statements etc. for some messages all the facts may be in the writer’s mind, but for
others extensive primary and / or secondary research may be needed for collecting the required
data.
Primary Research:

Primary research data may be collected by any of the following research methods.

a. Experimental Research Method: Which seeks to determine whether a change in one factor
causes change in another.

b. Observational Research Method: Which involves either human or mechanical viewing of

the actions or results of some-hearing, touching, smelling etc.

c. Survey Research Method: Which requires the researcher collect data from respondents
through questionnaires.

d. Combination of the Various Research Method: May also be used when any one of the
above methods is not appropriate.

Secondary Research:

Secondary research data may be collected from the following sources.

a. Company Publications: Newsletters, bulletins, brochures, pamphlets, handbooks, manuals

and company records and reports.

b. Books: Relating to the topic under research.

c. Periodicals: Magazines, journals and newspapers published at regular intervals.

d. Other Sources: Radio and T.V. programs, publications of other companies and professional
association.

5. Outlining and Organizing the Message:

Before writing a message, it should be outlined and organized either on paper or mentally. There
are four different organizational plans – the direct request, good news, bad news and persuasive
request. The first two use the direct approach and the last two, the indirect approach.

OR maybe

6. Revising and Editing and Proof Reading:

The draft should be read paragraph by paragraph, sentence by sentence and word by word to
check the continuity of ideas and grammatical, punctuation and spelling mistakes. While revising
and editing the message it must be ensured that the message meets all the principles of good
business communication. A careful proof reading is essential after the revised and edited
message has been finally typewritten. Before it is mailed, it should be read by responsible and
reliable person, because errors, if left uncorrected, may result in loss of goodwill, sales, income
and even lives.

Differentiate between formal and informal language:

BASIS FOR FORMAL INFORMAL

COMPARISON COMMUNICATION COMMUNICATION
Meaning A type of verbal A type of verbal
communication in which communication in which
the interchange of the interchange of
information is done information does not
through the pre-defined follow any channels i.e.
channels is known as the communication
formal communication. stretches in all
directions.

Another Name Official Communication. Grapevine

communication.
Reliability More Comparatively less
Speed Slow Very Fast
Evidence As the communication is No documentary
generally written, evidence.
documentary evidence is
present.

Time Consuming Yes No

Advantage Effective due to timely Efficient because
and systematic flow of employees can discuss
information. work related problems,
 this saves time and cost
of the organization.

Disadvantage Distortion due to long Spread of rumors.

chain of communication.
Secrecy Full secrecy is It is difficult to maintain
maintained. the secrecy.
Flow of Information Only through predefined Can move freely.
channels.

Formal Communication:
Formal communication refers to official communication which takes place through a chain of
commands. It flows in formally established channels & is concerned with work related matters.
Members of the enterprise and expected to communication with one another strictly as per
channels laid down in the structure. The formal communication may be divided into three
categories which are given as follows:
a) Downward Communication:
Under this system, the flow of communication from the top management downward to be
operating level. It may also be called a communication from a superior to a subordinate. It
follows the line of authority from the top to the bottom of the organization hierarchy. Downward
communication consists of plans & policies, orders and instructions, procedures & rules etc.
b) Upward Communication:
It means the flow of information from the lower levels of the organization to the higher level of
authority. It passes from subordinate to superior as that from worker to foreman, foreman to
manager. From manager to general manager & so on. This communication includes opinions,
ideas, suggestions, complaints, grievances, appeals, reports etc.
c) Horizontal Communication:
The transmission of information and understanding between people on the same level of
organization hierarchy is called the horizontal communication. This type of communication is
also known as lateral or sideward or crosswise communication. Usually, it pertains to inter
departmental managers working at the same level of organization or among subordinates
working under one boss.

2 Informal Communication:
There is also a great deal of informal communication in an organization. This communication
flows through informal channels and may or may not be work related. Informal communication
cuts through the formal organizational structure. Most of us are familiar with the term
‘grapevine’ used to describe a network of informal communication. Grapevines are present in all
organizations. In fact, in large organizations, there are many grapevines moving up, down and
across departments. Grapevines flourish because communication is a natural human tendency.
People who know each other in the organization talk together informally. One thing they have in
common is the organization they work for, so they talk about the happenings in the organization.

Advantages of formal communication:

1. It has clearly specified communication pathways.

2. It involves legal rational authority of supervisors .
3. It allows permanent record.
4. It is more clear and universal.

Disadvantages of formal communication:

1. True feelings are not expressed.

2. Strict adherence to rules.
3. Distortion of message along the path.
4. Unnecessary delay because of lacking of “proper channel”.

Advantages of Informal communication:

1. Under this communication, the messages move fast and their effect is equally great on the
people.
2. Informal communication is done in a free environment.
3. Informal communication saves the employees from tension.
4. There is more freedom in informal communication which helps the solution of difficult
problems.

Disadvantages of Informal communication:

1. This communication is absolutely unsystematic.

2. Most of the information received through this communication is undependable and no
important.
3. Informal communication networks do not follow any set of rules.
4. Sometimes, confusion develops among the persons involved in informal communication.