Business Communication

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Business Communication

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<Author>2015

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Business Communication

Introduction
The word communication is derived from a Latin word Communis which means
common. There are four steps of communication process, which includes encoding, transmission,
decoding and feedback. All these steps combined results in effective communication. It can also
be defined as transmission of useful information. Encoding involves selection of accurate words
to communicate exact meaning, then encoder selects a medium to communicate. When message
received, decoder interprets the message and gives feedback to complete process of
communication (O'Hair et al., 2007).
Business Communication
Business by and large, alludes to the exercises that are coordinated toward creating or
acquiring wealth through making, purchasing or supplying products or administrations.
Notwithstanding, activities directed to the creation of things for individual, utilization don't fall
inside of the domain of business. Business communication can be characterized as a stream of
data that happens inside of this business environment. For the survival and advancement of any
association, a businessperson needs to keep up a connection with a large group of individuals, for
example, clients, suppliers, lenders, government and his own hierarchical individuals. Such
support of connection for business reason for existing is Business Communication. For
effective operations of everyday business exchanges additionally a businessman needs to trade
sentiment, feeling, and information. With the populace he could call his own association as a
well as outside the organization (Louhiala-Salminen, 1996). Effective business communication
occurs when decoder accurately decodes message and gives feedback to encoder.

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This study is conducted to determine the impact of effective communication on business.

Communication in businesses plays a vital role in their success or failure. General electric is
engaged in making appliances of power, aviation and healthcare and so on. From last few years,
profitability of GE has declined, though they are 26th largest organization in United States. GE
has started restructuring to sustain their market position and to improve their profitability.
Traditional structure of organization involved downward communication, whereas matrix
structure of general electric involves upward communication. They have brought change in the
communication to improve the efficiency and effectiveness of their operations (Guffey & Loewy,
2010).
Nature of Business Communication
Corporate associations which comprise of the human component, use data based
frameworks like Management Information System (MIS), Decision Support System (DSS) and
Strategic Information System (SIS) to run businesses effectively. Communication is an
indispensable piece of human presence. Communication contributes vastly to the achievement or
disappointment of each human movement. Communication is basically the capacity of one
individual to reach another and to make him caught on. Since man is a social creature, it is
indispensable that he expresses his sentiments and feelings, get and trade data. It is here that
communication becomes possibly the most important factor (Beamer & Varner, 2008). In the
event of associations, it turns out to be much more essential as individuals working in diverse
divisions need to accomplish normal destinations. The working of between individual
connections is conceivable just through communication.
Aside from tying its different parts inside, communication is the thing that connections
and association with the outer world. Accordingly, communication is viewed as the establishment
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of an effective association. No gathering can exist without communication. Communication has a

critical effect on a definitive intensity of an association. It is just through communication that
thoughts, data, demeanors or feelings get passed on starting with one individual then onto the
next. At the individual level likewise, powerful communication aptitudes are in charge of
achievement. As per an overview of America's best supervisors by a main American magazine,
Fortune, phenomenal communication aptitude was one of the prime determinants of progress
(Varner, 2000).
Methods of Business Communication
In the present day business world, individuals convey by content, telephone, email,
composed correspondence and verbal communication. In compelling communication, you must
pick the communication strategy most appropriate for the message. Businesspeople who are
eloquent speakers may not be well-spoken scholars, so the message in email and composed
correspondence can now and again be misinterpreted. The same goes for authors who can art
itemized communications in composed structure, however gag with regards to verbalizing.
Figuring out how to be smooth with all types of communication techniques may not be the least
demanding assignment, but rather the successful communicator knows her constraints and picks
the medium to coordinate the message (Gibson, 2002).
Types of Business Communication
In businesses, generally two types of communications are used. It includes internal and
external communication. Internal communication is further divided into two three categories i-e
downward communication, upward communication and horizontal communication (Goldkuhl,
1998).

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Downward Communication
In downward communication information flows from top to bottom, mostly top
management use this type of communication to inform employees regarding firm values and
policies. This type of communication involves instructions and guidance, which help employees
in completing tasks. Mostly organizations use downward communication to communicate
policies, instructions, decisions, to motivate employees and for getting feedback on some task.
General electric had used this type of communication in their rigid structure (Locker &
Kaczmarek, 2013).
In restructuring of organization, GE has change the type of communication used, they
have shifted from downward communication to upward communication. There were numerous
reasons, which led to change in communication type. Firstly downward communication flows
through hierarchy, so it was taking time in communicating important information to low level
workers. Distortion of information was another factor, sometimes low level employees needed
explanation, and this problem was also an issue in change in communication type. Reduction in
relationship with employees and feedback had reduced efficiency of employees.
Upward Communication
This type of communication is the procedure of transmitting data from the base levels of
an association to the top levels. It incorporates judgments, estimations, recommendations,
protestations, grievance, requests, reports, and so forth from subordinates to bosses. It is vital in
light of the fact that it serves as the reaction on the accomplishment of descending
communication. Administration comes to know how well its approaches, arrangements,
methodologies and goals are received by those working at lower levels of the organization.

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Upward data stream can be extremely useful for an association, particularly when it is
empowered by the administration. At the point when a chief is interested in upward
communication, they help foster collaboration, increase bolster, and lessen disappointment
(Meijer & Kleinnijenhuis, 2006).
The channel of communication is an exceptionally noteworthy variable in the upward
communication process. Channel alludes to the method for which messages are transported. It
can be up close and personal, via phone, composed, and so forth. Communication channel
influences subordinate's general fulfillment with upward communication. Certain channels are
barely noticeable, which can leave subordinates less fulfilled by upward communication. A
subordinate who is fulfilled by his/her upward communication will be less uncertain about
conveying upward than a subordinate who is unsatisfied with his/her upward communication.
Upward communication provides or keeps updated top management regarding information of
different functions of business. This information helps to management in making effective
decision of business. This communication also helps employees to suggest top management
regarding business operations or to achieve organizational objectives, this mode of
communication has increased motivation level of employees, because in this mode of
communication, employees express their attitude and feeling with the supervisors and top
management (Bove et al., 2005).
It has strengthened the relationship of top management with low level of employees,
which has resulted in good environmental conditions in organization. This type of
communication has also helped in gathering information from lower level of employees to make
plans for improvement of business operations. It has also imposed a good impact on creativity in
organization. Motivated employees give their 100 percent in achieving organizational goals and

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to make the environment healthy and favorable. This also helps in praising managers regarding
their decisions; it helps in improving relationships between employees and top management.
They have made numerous strategies for the betterment of employees, upward communications
helps in improving these strategies because they get instant response from employees of their
policies.
Example
@GESupport is a prime case of client administration done well. They continually react to
adherents on Twitter, whether it's about their electronic items, administrations or different items.
At regular intervals, you can watch them react to another person. This action and responsive
conduct has made them noteworthy. GE is a gigantic organization. They have various sorts of
gear and lines of items that make up their image. While GE deals with various Twitter handles to
oblige adherents intrigued by particular games or store areas, @GESupport is devoted singularly
to reacting to clients who need help. GE used Facebook post to determine customer response on
their new product design. @GESupport posted an image of two products on Facebook. Their
message was We need your help! We are getting ready to launch two new products in market.
Which product do you like best? this message generated a lot of response from customers, they
responded through comments on post. Almost 2000 people left comment on this post. Different
organization can use this strategy to determine the response of customers. It will help in
designing products according to need and demands of the products.
While making your online networking strategy, consider your clients and how you can
make getting help simple for them. Keep in mind, notwithstanding losing a client through poor
client administration; you can likewise lose clients when you make things excessively

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convoluted. By having a solitary Twitter handle committed to noting all client administration
questions, you make the lives of your clients much less demanding. It's about client delight!
GE has also faced criticism on tweeter. A customer contacted to GE for complaint and
asked them to deliver a new product instead of damaged product. After sometime, they
responded and their message was Sorry for the delay in responding, our tweeter feed is open
0900-1700 GMT. Send us your invoice number and we will look into this. In response client
wrote how a billion dollar company has just 8 hours social media support for a business that
operates 24/7. This post on tweeter was read by 76000 members on social media, which resulted
in bad word of mouth. This example doesnt require having social media support for twenty four
hours but they need to make a team to response such matters. Social media is a good mode to
improve the recognition of business. It could also backfire if not handled properly.
Conclusion
We can conclude that from the above examination, we comprehend that, communication
is vital in our daily life and additionally in business. Boundaries will exist in communication.
Yet, we need to overcome the obstructions for smooth & successful communication. And
afterward a business association can run and arrange easily.

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Bibliography
Beamer, L., & Varner, I. I. (2008). Intercultural communication in the global workplace. Boston,
MA: McGraw-Hill.
Bove, C. L., Thill, J. V., & Cross, A. (2005). Excellence in business communication. Prentice
Hall.
Gibson, R. (2002). Intercultural Business Communication: An Introduction to the Theory and
Practice of Intercultural Business Communication for Teachers, Language Trainers, and
Business People. Oxford University Press.
Goldkuhl, G. (1998, June). The six phases of business processes-business communication and
the exchange of value. In 12th biennial ITS conference Beyond convergence(ITS 98),
Stockholm.
Guffey, M. E., & Loewy, D. (2010). Business communication: Process and product. Cengage
Learning.
Locker, K., & Kaczmarek, S. (2013). Business communication: Building critical skills. McGrawHill Higher Education.

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Louhiala-Salminen, L. (1996). The business communication classroom vs reality: What should

we teach today? English for Specific Purposes, 15(1), 37-51.
Meijer, M. M., & Kleinnijenhuis, J. (2006). Issue news and corporate reputation: Applying the
theories of agenda setting and issue ownership in the field of business communication.
Journal of Communication, 56(3), 543-559.
O'Hair, D., Friedrich, G. W., & Dixon, L. D. (2007). Strategic communication in business and
the professions. Allyn & Bacon.
Varner, I. I. (2000). The theoretical foundation for intercultural business communication: A
conceptual model. Journal of Business Communication, 37(1), 39-57.

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