Paper: 07, Business Communication

Module: 02, Types of Communication

Prof. S P Bansal
Principal Investigator Vice Chancellor
Maharaja Agrasen University, Baddi

Prof YoginderVerma
Co-Principal Investigator Pro–Vice Chancellor
Central University of Himachal Pradesh. Kangra. H.P.

Prof. IpshitaBansal
Paper Coordinator Department of Management Studies
BPSMV, KhanpurKalan, Sonipat

Prof. IpshitaBansal
Content Writer Department of Management Studies
BPSMV, KhanpurKalan, Sonipat
Items Description of Module
Subject Name Management
Paper Name Business Communication
Module Title Types of Business Communication
Module Id Module -2
Pre- Requisites Understanding of the basic concepts and process of business communication
Objectives To study the main forms/ types of business communication
Keywords Communication, Business Communication, Se0nder, Receiver, Channel
 QUADRANT-I

1. Module 2: Types of Business Communication

2. Learning Outcome
3. Introduction to Types of Communication
4. Non- verbal Communication
5. Verbal Communication
6. Summary

1. Module 2: Types of Business Communication

2. LEARNING OUTCOMES:
After completing this module the students will be able to-
 Understand the various types of Business Communication.
 Identify the types of corporate communication

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3. Introduction to Types of Business Communication

To understand the business communication properly it is very essential to understand the types
of business communication.
Communication can be Internal i.e. within the organisation like memos, notices, policy
statements, office orders etc. or it could be External i.e. with parties outside the organisation
like advertisements, sales presentations, business letters, annual reports etc. Communication
can also be Formal like official correspondence, notices, CEO’s address to the employees etc.
or Informallike casual discussions or conversations between colleagues or grapevine ( word of
mouth dissemination of information across the organisation which may or may not be true). But
broadly, all the above stated types of communication fall in either of the 2 categories of Verbal
or Non Verbal communication.
 Types of
Business
Communication

Non - Verbal Verbal

Communicati Communication
on

Oral Written
Communication Communication

4. Non- Verbal Communication

Non-Verbal Communication is the most basic form of communication in which the person
transits the idea without the use of the words. Non verbal communication means the
communication which takes place between the two individuals without the use of the words. Non
verbal Communication is the integral part of the communication. It helps in effectively
communicating. The use of the non-verbal communication is prevalent from the ancient times.
Our ancestors used the various symbols and signs which constitute the nonverbal
communication. For example: Our ancestors gritted their teeth to show anger, they smiled and
touched one another to show love, affection and sympathy.
In our day to day life we are using non-verbal communication all the time whether knowingly or
unknowingly. We use the non verbal communication to show our likes, dislikes, love, affection,
dependence, superiority and other feelings. For example, Theway we position ourselves, hold our
hands, tilt our heads, etc. depict our feelings and attitude.

4.1 Meaning
NonVerbal Communication is dissemination of messages through a medium other than
speech or writing.

4.2 Types of Non-Verbal Communication

The non-verbal communication is categorised in the two categories i.e. Signs & Symbols
and Body Language.

Signs, Symbols Body Language

• Traffic lights. • Kinesis

• Blowing of Sirens • Oculesics:
• Road pictograph • Haptics
• Telephone Ring • Proximics
• Hand Indications • Chronemics
• Meaning of Colors • Paralinguistics
• Physical Appearance

4.2.1 The types of signs and symbols are but not limited to the following:

i. Traffic Lights: Red, green and yellow lights denote Stop, Go and Slow
Down respectively which is very clear to all the vehicle drivers enabling the
traffic to go smoothly.
 ii. Sirens and Whistles: Different types of sirens and whistles have meaning
attached to them which enables the listeners to understand what they have to
do once they hear a particular siren or whistle. For example siren of an
ambulance denotes that way has to be given to the vehicle so that it can reach
the hospital with speed, so that life of the patient can be saved.Employees in
a building are made aware that a particular siren denotes that there is fire
hazard and they have to immediately vacate the building.
iii. Road Pictographs: Another importantform of signs is road pictographs
which gives an indication to the traveller what to expect ahead or what he can
or can not do in the area.

iv. Telephone Ring: Long ringing bell of thetelephone on the receiver’s side
indicate disinterest where as if the phone is picked up immediately this
indicate the receiver is interested in what the sender wants to say. Hence the
companies train their customer care employees to receive the calls
immediately as this shows the company’s commitment to serve their
customers well.
v. Hand Indications:In many fields like traffic control, army tactics, sports,
construction, excavation, dance etc hand signals or movements have specific
meaning which are enough to convey the message with out speaking.

vi. Meaning of colors: Colors used at different occasions or by different people

carry meaning. For example red color denote danger , white denotes peace
and purity, green denotes environmental friendlyetc.

4.2.2 The components of Body language are the following:

 i. Kinesics: It is the study of facial expressions, postures & gestures.
ii. Oculesics: It is the study of the role of eye contact in non verbal communication.
iii. Haptics: It is the study of touching. Acceptable level of touching vary across cultures.
iv. Proxemics: It is the study of measurable distance between people as they interact.
v. Chronemics: It is the study of use of time in non verbal communication. Keeping someone
waiting for long may give a hint to that person that he is not welcome or respected.
vi. Paralinguistics: It is the study of variations in pitch, speed, volume, and pauses to convey
meaning. Interestingly, when the speaker is making a presentation and is looking for a
response, he will pause. However, when no response is desired, he will talk faster with
minimal pause.
vii. Physical Appearance:One’s physical appearance always contributes towards how people
perceive you. Neatly combed hair, ironed clothes and a lively smile will always carry more
weight than words.

Source: http://managementstudyguide.com/non-verbal-communication.htm

4.3 Functions of Non-Verbal Communication

According to Bovee andThill –Non-Verbal Communication performs the following

functions:
4.3.1 Provide information
Non- Verbal Communication helps to send or receive information when the
sender does not want to speak or write or it is not possible to do due to
limiting circumstances.
For example:
If the teacher in the class room puts finger on the lips it means he/she is
instructing the students to sit silently in the class room. There are many more
examples of this kind like raising finger toward someone means pointing that
individual.

4.3.2 Effective flow of Communication

Non-verbal communication helps to regulate the flow of the communication.
For Example:
If the receiver of the message does not show any facial expressions or body
movement, the sender will understand either he is not listening or if listening
then he is not interested, and if he is listening and interested then surely he is
notunderstanding. So, non-verbal communication helps to regulate the flow
of the communication.

4.3.3 Express Emotion

Non-verbal Communication helps to express the emotions and feeling of the
human being. We use the non- verbal cues to express love, affection,
superiority, dependence, liking, disliking, respect and many other feelings.

4.3.4 Compliments & Expand Verbal Messages

Non-verbal cues compliments the verbal communication and attaches more
meaning and clarity to it. Through the non-verbal cues of facial expressions
and body language one can deliver one’s message very effectively. Non-
verbal cues also help to provide the feedback to receiver. For example:
 Nodding of head or raising of thumb helps the sender to understand that the
receiver likes his idea.

4.3.5 Control & Influence others

Through non-verbal communication you can make your message effective
and it helps the sender to impress and influence the audience too.

4.4 Advantages of Non-Verbal Communication

Non-verbal communication provides us the following benefits due to which it is very
important to learn non-verbal cues.

4.4.1 Reliability
Non-Verbal Cues are the taken as the most reliable source for believing that
the message delivered by the sender is real and actual. As the words can be
easily controlled by the person but the controlling the facial expression and
body language is quite hard. So by giving attention to the non-verbal cues we
can have a better understanding of the message and even
protect ourselves from cheating ordeceit.

4.4.2 Efficiency
Non-verbal communication is important for both the
parties involved in the process of communication. Non-
verbal communication is efficient from both the sender’s
and as well as receiver’s point of view as through the
non-verbal communication more meaning is conveyed in
lesser time and through lesser words.

4.4.3 Credibility
Non-verbal cues play a very important role in establishing the credibility of
the speaker. The speaker in such cases may be a leader, a teacher, a sales
executive, a CEO, a priest or just any one performing any life role. Through
learning how to control the facial expression, body language, voice and
appearance, one can manage one’s credibility.

4.4.4 Accurate Understanding

As we discussed earlier that the non-verbal cues are the source of reliability
and can helponeto understand the real personality and attitude of the other
party. After learning how to interpret their underlying meaning, and
intentions of the verbal message, the individual can gauge the accuracy of
the communication.

4.5 Limitations of Non-Verbal Communication

Some limitations are also attached with the benefits. These are the following limitations
of non-verbal communication.

4.5.1 Lack of secrecy

4.5.2 Not suitable for lengthy messages
4.5.3 Can be misunderstood
4.5.4 Can be used only during face to face communication
4.5.5 Lack of written proof
4.5.6 More difficult to study

5. Verbal Communication
Verbal communication is the communication which is conveyed through words.
Verbal communication is classified under the two heads:
 Verbal
Communication

Oral Written

5.1 Oral Communication

Oral communication is that communication in which the parties involved in the

communication transmit the message through spoken form. In the general sense, oral
implies anything relating to mouth. In the oral communication the sender and the receiver
both exchanges their idea via speech through any of the channels used for communication
such as face to face communication , conference, seminar, telephonic talk, video
conferencing etc.

There are mainly two components of the oral communication-

i. Words which are used while communicating.
ii. Manner in which the message is delivered.
For example: there can be a lot of difference between the presentation given by
anexperienced professional and a young intern. Professionals use their skills such as tone
of the voice, facial expression and the body language to their advantage which impress
and influence the audience. An intern may not be able to show much sophistication.

5.1.1 Levels of Oral Communication

There are two levels of oral communication:

Levels http://www.article-junction.blogspot.com

First Second

5.1.1.1 First Level

The first level of communication is face to face communication. This is the
popular form of communication which is used. The reason behind the popularity
of this channel is the benefits associated with
this channel.
 One you can provide and
receive the immediate feedback.
 Second you can see the
facial expression and the body
language / gestures of the other
party.
 One can judge the reality
of the message by analysing the
content of the message and the body
language/ facial expression/
gestures of the other party. And you
can take immediate actions.
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ephonic+talk&source=lnms&tbm=isch&sa=X&ved=
0CAcQ_AVqfQoTCMjy_rf_IsgCFdMejgodKhAD9w
5.1.1.2 Second Level
 The second level of the communication is the oral communication via the
technology. In this level of communication the sender and the user both use the
technological resources. The sender and receiver use the channel of
communication such as computer, telephone, public address system. This
channel is also popular as the physical existence of the sender and the receiver is
not required at single place to transmit message. Most suitable for the time the
sender and the receiver are at different and distant places.
Yet the second level of oral communication is not as much impactful as first
level oral communication because of lack of proximity and the absence of all the
elements of non verbal communication like body language, facial expression,
gestures, immediate feedback etc.

5.1.2 Forms/Kinds of Oral Communication

5.1.2.1 Face to face Conversation

Face to face communication is that communication in which both the
sender and the receiver are present at a single place and transmit the
message. Face to face communication is very effective as it provides
the immediate feedback.
5.1.2.2 Lectures
Lectures are also form of the oral communication. In this kind of oral
communication, there is single sender and many receivers of the
message. Class room lectures are the best examples of this kind of
communication. Immediate feedback from each audience may not be
possible in this case.
5.1.2.3 Meeting and conference
Board Meeting, Special Meeting, General Annual Meeting are the
example of this form of communication. In this form of
communication one is the speaker and others are the listeners. All the
members presented in the meeting, conference participates in the
meeting one by one as speaker simultaneously while rest of the
members listen.
5.1.2.4 Interviews
Interview is the special kind of oral communication in which the
parties involved in the process of communication hold the
relationship of the interviewer and interviewee. In this form of
communication interviewer asks the questions and interviewee gives
reply to the questions. The purpose of interviews is generally
selection for a position or ascertaining the appropriateness of an
individual to carry an assignment or assume a role in the
organisation.
5.1.2.5 Telephonic talk
Everyone is familiar with this kind of communication. In our day to
day life we are using this form of communication. Telephonic
conversation can be defined as the use of speech for formal/ informal
exchange of views or ideas or information over the telephone. The
effectiveness of communication here is limited due to inability to
view the body language, gestures and facial expressions. Only words
and the tone of voice has to be relied upon in understanding the
message fully.

5.1.2.6 Grapevine
Grapevine communication is
the informal form of
communication which is
 defined as the supplementary channel of official communication. It is
a means of passing the information unofficially. It is a very fast
medium of communication.

5.1.2.7 Seminars
Seminar is the form of the discussion in which the results of some
research or view point/s are presented by the means of speech to a
select audience with a purpose to provide information, enhance
knowledge or share a point of view. Furthermore, a seminar is may
be considered as a form of academic instruction, either at an
academic institution or offered by a commercial or professional
organization.

5.1.2.8 Radio
Radio is very popular and accessible means of communication.
Because of its wider reach it can be effectively used as a medium to
convey one’s ideas, share information, advertise products and
services.
5.1.2.9 Television
Television is the most popular form of oral communication. This
form of communication offers a very creative way for the exchange
of ideas and information. Since, besides listening the words, the
receiver of the message can also view the images and visuals , it
become a very powerful medium of oral communication. Television
is being used extensively by the business houses promotion of their
goods and services as well managing their goodwill.

5.1.3 Utility of Oral Communication

Oral communication provides the following utilities:

5.1.3.1 Confidentiality
When the information is to be kept confidential then oral
communication serves this purpose. The information is kept secret
between the parties involved in the communication as both the
parties are interacting directly, no intermediary is involved in this
form of communication.

5.1.3.2 When written form is not possible

When the circumstances are such that written communication is not
suitable or possible the best way of passing and exchanging the
information is oral communication as it is speedy and in most of the
circumstance provide immediate feedback.

5.1.3.3 When audience is large

When the audience is large and the message has to be circulated
quickly and immediate feedback is required then oral communication
is a very suitable option.

5.1.3.4 When receiver is illiterate.

Oral communication is most suitable when the audience is not able to
read and write. In the oral communication the speaker can change the
words and the language as per the understanding of the receiver/
audience.

5.1.4 Advantages of Oral Communication

 The following advantages are provided by the oral communication.

5.1.4.1 Rapid Transmission of ideas

Oral Communication provides the rapid exchange of information no
matters how far speaker/sender or listener/receiver is.

5.1.4.2 Quick Feedback

Oral communication provides the quick feedback as both the parties
involved in the communication are in direct contact with each other.
It also helps the speaker/sender in measuring the level understanding
of listener/receiver through the facial expression/ body language/
gestures/ feelings of receiver.

5.1.4.3 Flexible
Oral communication has the feature of flexibility. It offers the
flexibility in expressing the idea and using the power of words and
the language according to the understanding level of the receiver.

5.1.4.4 Economical Source

Oral communication is economical source of the communication as
the sender and receiver are exchanging information orally.

5.1.4.5 Personal Touch

Oral communication provides personal touch to the communication
which is likely to help in building mutual trust and confidence
between both the parties resulting in the better flow of information
and ideas.

5.1.4.6 Minimizes misunderstanding

Oral communication provides the chance to both the sender and the
receiver to remove misunderstanding as that there is no intermediary
between the sender and the receiver.

5.1.4.7 Motivating
Oral communication is very useful for managers in motivating their
employees. Through oral communication seniors when interact with
their people with respect to decisions to be taken, listening to their
grievances, appreciating them employees feel integral part of the
organization which acts as the source of motivation for them.

5.1.5 Limitation of Oral Communication

Despite many advantages,oral communication has the following limitations too-

5.1.5.1 Not Suitable for lengthy messages

Oral communication is more useful and suitable for short messages
because it is not possible for the receiver to remember the lengthy
messages.

5.1.5.2 Not suitable for Policy matter

Oral communication is not useful for the important matters like
policies, rules, technical information because this information is
required to be preserved as record and complied with.

5.1.5.3 Lack of evidence

 There is lack of evidence in the written form during the oral
communication which can be referred to later. Hence such messages
are not suitable with respect communication of rules and regulations,
contracts etc.
5.1.5.4 Lack of clarity
Whenever the sender or receiver is in hurry then it will lead to
misunderstanding. The lack of clarity can be due to many reasons in
the oral communication such as noise coming from outside, voice not
audible, mike clarity, noise in the telephone network etc.
5.1.5.5 Wastage of Time
Sometimes the speaker and the listener (specially in meetings) may
distract from the agenda of the meeting and undergo lengthy
conversation which leads to the wastage of the members time.

5.1.5.6 Presence of both parties is necessary

In the oral communication the presence of both the parties is
necessary otherwise the process of communication cannot be
completed.
For example: Mr Dixit phoned Mr. Verma for informing him about
the change in the date and venue of the meeting but Mr. Verma was
busy at that time and could not attend the call. Since message could
not be transmitted, process of communication remained incomplete.

5.2 Written Communication

Written Communication is considered the second basic form of the communication.
The exchange of facts, information, ideas in written from is known as written
communication. The written communication is considered as formal communication.
With the passage of time the technology has become advanced which has broadened
the scope of written communication. BusinessCommunication done via written form
can be preserved as record and presented as proof anywhere such as profit statements
presented before the government , shareholders and the other interested parties.

5.2.1 Forms of Written Communication

As stated earlier any exchange of idea in written form is written

communication.Following are the forms of written communication -

5.2.1.1 Email
The message transmitted by the electronic means from one computer
user to one or more recipients via a network is termed as email. Email is
defined as electronic mail. In modern times email has taken the place of
postal letters. The advantage of emails over postal mails is that at one
click of the key the message gets transferred to single or multiple
recipients in seconds and reply can be received immediately saving
precious time and expediting the work manifold.

5.2.1.2 Fax
Fax is the medium by which the exact copy of a document is made by
electronic scanning and transmitted as data by telecommunication link.
A fax machine is use to transmit the document. It is an input device
connected to a telephone which transmits the scanned and printed
document to a telephone number associated with a printer or other output
device.
 5.2.1.3 Business Letters
Business Letter is usually a document which is written by one company
to another company or by the company to its clients, customer or other
external parties. Business Letter may be of different kinds according to
its content (message). For example: A business letter can be a request to
other party to supply a specific material or a reply to request etc.

5.2.1.4 Memorandum
A memorandum is a written informal brief, note, record, reminder or
summary used as means of communication, or to outline the terms of an
agreement.

5.2.1.5 Circulars & Notices

A circular is a kind of written announcement that is distributed to large
number of people to convey any commercial or non-commercial
message at the minimum time, costs and efforts.
In the words of Prof. W. J. Weston, “A circular letter is one which is
meant to be read by a number of correspondents. It is of the nature of an
advertisement and is usually a business announcement or an attempt to
advance business.”
Source: http://www.businesscommunicationarticles.com/circular-
letter-definition/

5.2.2 Utility of Written Communication

Written communication is useful in the following situation:

5.2.2.1 Message is of permanent nature.

When the message is of permanent nature and has to be kept for a long
time then written communication is suitable. Written communication is
accepted as record and evidence such as policies, rules, guidelines,
technical information etc.

5.2.2.2 When receivers are at different places.

When the receivers of the message are located at different and distant
places then via written communication the same message can be
transmitted to all receivers without any distortion.

5.2.2.3 When message is long

When the message is lengthy and not possible for the sender to explain it
orally and also it hard for receiver to remember then written
communication becomes important.
For example a company’s Article of Association or its Memorandum of
Association or policy booklet.

5.2.2.4 When message contains graphics

When the message requires pictures, images and figures then written
communication is suitable.

5.2.3 Advantages of Written Communication

The major advantages of written communication are as follows:

5.2.3.1 Suitable for lengthy messages

Written communication plays important role in clearly communicating
and making clear understanding of the lengthy messages.
 5.2.3.2 Written proof
Written communication provides the feature of record keeping as some
documents are kept for future references.

5.2.3.3 Clear message

When the message is long then written communication helps in clear
understanding of the message. Written communication also helps in
better understanding of the message by the use of graphics (Images,
graphs ,figures).

5.2.3.4 Less expensive &time saving method

Written communication proves to be less costly when the receivers are
located at the distant places. Via.the use of email we can send the
message globally in the minimum time and with minimum expenses.

5.2.3.5 Presence of both parties not necessary

In the written communication the presence of both the parties of
communication is not necessary. The message will be delivered to the
receiver whenever he is available. As in the example of Mr. Dixit
&Mr.Verma, if the Mr.Dixit had given the message to Mr.Verma in
writing via fax, notificationor email then the message would have been
delivered to Mr.Verma later whenever he checked his fax machine or
email.

5.2.3.6 Accurate and effective

As we know written communication serves as the proof for future
references , so the sender must double check the content of the message
which results into the more accurate and effective message.

5.2.4 Limitation of Written Communication

Some limitations of the written communication are as follows:

5.2.4.1 Unfit for uneducated person

Whenever audience is illiterate then written communication is not
suitable as they are not able to read and write.

5.2.4.2 Lack of secrecy

As the message is in the written form if the message delivered in the
wrong hands then the message loses its confidentiality and can result into
a big loss to sender as well as to intended receiver.

5.2.4.3 Wastage of time

The drafting of the message in the written form takes lot of time.
Whenever it becomes a compulsion like mostly in government systems
to sends each and every message in the written form then it leads to
wastage of time and resources because every message is not so much
important that it is required to be preserved.

5.2.4.4 Delayed Feedback

As in the oral communication after knowing the reaction of the receiver
the sender can easily alter the message or the way of presenting the
message but the written communication lacks this feature due to delayed
feedback.
 5.3 Difference between the Oral and Written Communication

S.No. Basis Oral Communication Written Communication

1 Feedback In the oral Communication, the As the written communication
receiver can provide immediate follows the formal procedure so
feedback either orally or by body there is delay in providing the
language and facial expression. feedback.
2 Sentence & In the Oral Communication the While in the Written
Words sender and the receiver both use Communication the sender and
the shorter and easy the receiver both use the Longer
understandable sentences and the sentences & words Instead of
words. shorter ones because of formal
nature of communication.
3 Form Oral Communication is the While Written Communication is
conversational form of the formal Communication.
communication
4 Focus Oral Communication focus on Written communication focus on
the kind of relationship between the content of the message.
the sender and the receiver.
5 Action In the oral communication the While in the written
sender and the receiver promptly communication there is delay in
takes the action. the action.

6 Technical Oral communication is not useful Written communication is more

Information for providing the technical suitable for providing the
information and instructions. technical information and
instructions.
7 Suitability Oral communication is not Written communication is
suitable for longer message. suitable for long messages.
8 Record & Due to absence of record & Written communication serves
Evidence evidence in oral communication, this purpose, due to this reason
it is not suitable for the message written messages acts as the
which may be reported as proof permanent record for future.
in future.
9 Review No review is possible of what Possibility of review is possible
you said. in written communication.

6. Summary: To ensure effective communication it is necessary to understand the types of

communication. Communication can be internal or external. It can be formal or informal.
Whatever kind, communication has broadly two types verbal and non verbal. Verbal
communication is written or oral whereas nonverbal communication consists of body
language and sign & symbols. Each type of communication has its own importance as
per the demands of the situation.