Firm | Enterprise | Organisation |

Cooperative | Services | Customers|

Profit | Professional
 A person, partnership, or corporation
engaged in commerce, manufacturing, or a
service; profit-seeking enterprise or concern.
 An organisation designed to provide goods

and/or services to consumers.

 The management of individuals to maintain

collective productivity to accomplish

particular creative and productive goals
(usually to generate profit)
 Businesses are classified in many ways. One
of the most common focuses on the primary
profit-generating activities of a business:
1. Agriculture and mining businesses
2. Financial businesses
3. Manufacturers produce products
4. Real estate businesses
5. Retailers and Distributors
6. Service Businesses
7. Transportation businesses
8. Utilities
 The study of the efficient and effective
operation of a business is called
management.
 Management, among others focus on

organisational behavior to achieve individual

and group dynamics in an organizational
setting.
 It is through this context that communication

plays a significant role in shaping the way

people communicate in business setting.
Transfer information | Process |
Sender | Receiver | Meaning |
Understanding | Message
 Transfer of information from one source to
another
 Two-way process
 A process whereby information is encoded

and imparted by sender to a receiver via a

channel/medium
 A process by which we assign and convey

meaning in an attempt to create shared

understanding
“Communication is a process to create,
maintain or demolish meaningful
contact between sources and receivers
through speaking, writing or signaling”
 The following principles apply:
1. Communication is a process
2. Communication involves meaning
3. Communication may be positive, negative or
neutral
4. Communication may involve one or more
channels
1. Source
2. Encoding
3. Message
4. Channel
5. Decoding
6. Receiver
7. Feedback
8. Noise
1. Sources
◦ Any process of communication must begin with a source 
the initiator (a speaker / writer)
◦ For communication to occur, someone must originate the
message i.e. the source
◦ All message by the source will go through a process of
encoding
2. Encode
◦ ‘Raw’ entity, in the form of idea
◦ Translation process of the intended message
◦ Communication process cannot occur until the source
translate what is within to an external message.
3. Message
◦ An information which is sent from a source to a
receiver.
◦ Any thought or idea expressed and prepared in a
form suitable for transmission by any means of
communication.
Continued…
◦ 2 types of message:
a) Verbal
 A verbal message is an exchange of information using
words. Examples include face-to-face communication,
telephone calls, voicemails, etc.
b) Nonverbal
 A nonverbal message is communicated through actions
or behaviors rather than words. Examples include the
use of body language and the actions made by an
individual or idea.
4. Channels
◦ Medium through the message is sent.
◦ Electronic channels: telephones, television, radio,
e-mail, etc.
◦ Written channels: letters, memos, magazines,
reports, manuals, books, etc.
◦ Oral channels: conversation, discussion, facial
expression, tone of voice, etc.
5. Decode
◦ At the receiver’s end.
◦ Converting the idea into words or gestures that
will convey meaning.
6. Receiver
◦ The recipient of the message.
◦ Receivers may be the readers of the letters,
memos, or listener of oral communication during
the meeting.
7. Feedback
◦ Response from the other party to the message
sent by the speaker.
◦ 5 characteristics of feedback:
a) Type : verbal / nonverbal
b) Time: immediate / delayed
c) Channel: oral / written
d) Direction: positive / negative / neutral
e) Quality: clear / ambiguous
8. Noise
◦ Anything that disrupts communications process.
◦ 3 types of noise:
 Physical – loud music, people talking loudly, etc.
 Psychological - preconceived notions we bring to
conversations, such as racial stereotypes,
reputations, biases, and assumptions.
 Semantic - cause by the sender. i.e, the encoder and
occur by speaking grammar that the decoder cannot
understand and by speaking technical language
Business communicators create and exchange knowledge that are critical to
fostering innovation. This act of exchanging information is executed by
communicating internally and externally.
Definition of Business Communication
 90% of all business transactions involve written
communication.
 Most managers and executives in today’s business
setting now write their own email, memos and
letters on their computer as it is faster and more
efficient.
 As such, the requisition and skill in business
communication has become the essential for all to
acquire.
 In the challenging world of business, a
company must always remain competitive.
 To keep it in line with others, the ability to

create and exchange innovative knowledge is

crucial.
 The act of exchanging information is

mediated through communication – by means

of internal or external
according to different audiences and in different
contexts with the aim at building awareness to
the audiences
 The sender has primary responsibility for
communication process:

1. Receiver understanding
2. Receiver response
3. Favourable relationship
4. Organisational goodwill
 Internal Communication Pattern
◦ Organisational communication flows in all directions.
◦ Network may be planned or unplanned.
 Formal Communication
◦ Business related.
◦ Planned.
◦ Flows in all directions.
 Informal Communication
◦ Is not planned by the organisation
◦ Flows in all directions.
◦ Develops and maintains positive human relationships
 Serial Communication
◦ Chain transmission of information.
◦ Messages are usually changed ~ as they are sent
from one member of the chain to another.
◦ Each sender may omit, modify, or add details to the
messages.
◦ Four techniques to assist in maintaining the
accuracy of the message:
SENDERS SHOULD: RECEIVERS SHOULD:
Keep the message simple Take notes
Request Feedback Repeat the message
 External Communication Patterns
◦ Organisations communicate with many external
publics.
◦ External communication can be formal or informal.
◦ E.g. customers, suppliers, competitors, the media,
governmental agencies, and general public.
◦ May be oral or written.
 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, satellite communication to
support business communication. Effective
business communication helps in building
goodwill of an organization.
 Oral Communication - An oral
communication can be formal or informal.
Generally business communication is a formal
means of communication, like : meetings,
interviews, group discussion, speeches etc.
An example of Informal business
communication would be - Grapevine.
 Written Communication - Written means of

business communication includes - agenda,

reports, manuals etc.
 Oral communication implies communication
through mouth.
 It includes individuals conversing with each other,

be it direct conversation or telephonic

conversation. Speeches, presentations, discussions
are all forms of oral communication.
 Oral communication is generally recommended

when the communication matter is of temporary

kind or where a direct interaction is required. Face
to face communication (meetings, lectures,
conferences, interviews, etc.) is significant so as to
build a rapport and trust.
 Thereis high level of understanding
and transparency in oral
communication as it is interpersonal.

 Thereis no element of rigidity in oral

communication. There is flexibility for
allowing changes in the decisions
previously taken.
 The feedback is spontaneous in case of
oral communication. Thus, decisions can
be made quickly without any delay.
 Oral communication is not only time

saving, but it also saves upon money and

efforts.
 Oral communication is best in case of

problem resolution. The conflicts, disputes

and many issues/differences can be put to
an end by talking them over
 Oral communication is an essential for
teamwork and group energy.
 Oral communication promotes a

receptive and encouraging morale

among organizational employees.
 Oral communication can be best used

to transfer private and confidential

information/matter.
1) Relying only on oral communication
may not be sufficient as business
communication is formal and very
organized.
2) Oral communication is less authentic
than written communication as they
are informal and not as organized as
written communication.
3. Oral communication is time-
saving as far as daily interactions
are concerned, but in case of
meetings, long speeches
consume lot of time and are
unproductive at times.
4. Oral communications are not
easy to maintain and thus they
are unsteady.
5. There may be misunderstandings as the
information is not complete and may lack
essentials.
6. It requires attentiveness and great
receptivity on part of the
receivers/audience.
7. Oral communication (such as speeches) is
not frequently used as legal records except
in investigation work.
 Written communication has great significance
in today’s business world.
 It is an innovative activity of the mind.

Effective written communication is essential

for preparing worthy promotional materials
for business development.
 Speech came before writing. But writing is

more unique and formal than speech.

 Effective writing involves careful choice of
words, their organization in correct order
in sentences formation as well as cohesive
composition of sentences.

 Writing is more valid and reliable than

speech. But while speech is spontaneous,
writing causes delay and takes time as
feedback is not immediate.
1. Written communication helps in
laying down apparent principles,
policies and rules for running of
an organization.

2. It is a permanent means of
communication. Thus, it is useful
where record maintenance is
required.
3. It assists in proper delegation of
responsibilities. While in case of oral
communication, it is impossible to fix and
delegate responsibilities on the grounds of
speech as it can be taken back by the
speaker or he may refuse to acknowledge.

4. Written communication is more precise

and explicit.
5.Effective written communication
develops and enhances an
organization’s image.

6. It provides ready records and

references. Legal defenses can
depend upon written communication
as it provides valid records
1) Written communication does not save upon the
costs. It costs huge in terms of stationery and the
manpower employed in writing/typing and
delivering letters.
2) Also, if the receivers of the written message are
separated by distance and if they need to clear
their doubts, the response is not spontaneous.
3) Written communication is time-consuming as the
feedback is not immediate. The encoding and
sending of message takes time.
4) Effective written communication requires
great skills and competencies in language
and vocabulary use. Poor writing skills
and quality have a negative impact on
organization’s reputation.

5) Too much paper work and e-mails

burden is involved.
1. Convey Messages
 communication allows a process to take
place. The sender sends a message through
a medium. The receiver receives it, processes
it and then gives a feedback which completes
the communication process.
 Without this process, no two people could
ever communicate effectively. There would
be no information dispatched and hence no
work done
2. Clarity of Ideas

 When one communicates with another in a business

scenario, it is important to understand that the
message has to be conveyed in such a way that
there is complete clarity in what is being said. The
message should be so clear that all doubts and
vague and unclear thoughts will be dispelled.

 The communication process also allows for the

person who has received the message to give a
feedback and therefore the communication format
achieves a 360 degree solution.
3. Get Work Done

 It is only through the adaption of the varied

communication processes like speech,
body language, gestures and other feedback
mediums that any work can be expected to get
done.

 An instruction, for example, that is given by a

boss to his subordinate needs to be carried
through till the final stage of execution. If the
process of communication and feedback is
missing, an end result is never possible.
4. Avoid Misunderstandings

 When two people work together, there is bound to

be miscommunication at times, which can lead to
misunderstandings and other
problems in the workplace. Which naturally affects
the work adversely and the business suffers.

 Communication offers a platform whereby all the

misunderstandings can get cleared and one can
hope for solutions. This is crucial if there has to be
a success made of the plan.
5. Increase Productivity and Efficiency

 When there is a proper communication

process taking place then the productivity
and efficiency of the employees increases.

 This is because the right information is

dispelled and the correct action executed.
Therefore there is no, or very less scope for
mistakes to happen.
6. Employee Job Satisfaction

 When there is scope for open communication

at the work place.

 There is a clear path provided, whereby the

seniors and subordinates can talk and solve
workplace conflicts amongst themselves.