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Business Communication
Definition
• Communication is the:
• Process of sending & receiving
message. It is effective only when
message is understood and when it
stimulates action or encourages the
receiver to think new ways.
• Imparting or exchange of information,
ideas or feelings.
 Definition
• Sum of all the things one person does
when s/he wants to create
understanding in the mind of another.
• Systematic and continuous process of
conveying messages (facts, ideas,
attitudes and opinions) from one
person to another so that they are
understood
• Sharing information between two or
more individuals or groups to reach a
common understanding.
 Definition
• Communication is the exchange of
message meaning within a person and
between people.
– It is a continuous process that occurs in
various contexts and uses cultural symbols.

– It is the process that purposefully uses

spoken, nonverbal, and visual symbols.
 Purpose of Communication
• Initiate action
»Request or Persuade
• Impart knowledge
»Inform or explain
• Establish relations
»Build goodwill
 Areas of Communication
• Intrapersonal
• Interpersonal
• Small Group
• Organizational
• Public
• Mass
 Types of Communication
• Nonverbal
• Verbal
»Oral
»Written
• Technological
 IMPORTANCE OF COMMUNICATION
• President Gerald Ford of USA once said,
that if he had second chance at college
he’d concentrate on learning to write and
learning to speak before audience.
• Developing excellent communication skills
is extremely important to ‘your’ life
• Survey of employers often show that
communication skills are critical to
effective job placement, performance,
career advancement, and organizational
success
 Importance of Communication
• In making hiring decisions, employers often rank
communication skills among the most desired
competencies.

• Infact, many job advertisements specifically ask for

excellent oral & written communication skills.

• In a recent poll of recruiters, oral & written

communication skills were far and away the ‘top skill
set’ sought in applicants.

• Result of another survey indicated that ‘writing skill’

topped the list which job candidates lack
 Importance of Communication
• Writing skill is particularly important today because we
are transmitting message more rapidly, more often,
and to greater number of people that ever before.

• The world of work is changing dramatically. The kind

of work ‘you’ will do, the tools ‘you’ will use, with form
of management you’ll work under, the environment in
which you’ll work, and the people with whom you’ll
interact—all are undergoing a pronounce
transformation. Many of changes in this dynamic
workplace revolve around processing and
communicating information. As a result the most
successful players in this new world of work will be
those with highly developed communication skills.
 Importance of Communication
• Communication involves and affects nearly every
disciplinary field, including business
• Virtually all forms of business messages– from “simple
greetings to customers” to “formal memos”, “reports”,
and “presentations” – all require solid communication
skills.
• We communicate to:
– Sell ideas, Products, Making Plans, Hire, Train &
Motivate workers, Coordinate Manufacturing and
Delivery, Persuade customers
– Communication is the way people get their points
across and get work done.
 Importance of Communication
– Even entry level jobs require high level skills
in reasoning, mathematics and
communication.

– Communication ability ranked first among the

qualities that employers look for in college
graduates.

– People loose promotion because they could

not write a proposal or make presentation.
 Importance of Communication
• Good communication skills are crucial for changing
job.

• What is core in Managerial Function of collecting and

conveying information, Managerial Decision Making
and Interpersonal Unity –COMMUNICATION

• According to results of a survey communication

yielded 235% return on investment.

• 88% of American businesses currently train their

employees in some type of communication skills.
 Business Trends-Require Excellent
Communication Skills

• Heightened global competition

• Cross Culture, FedEx’s Money back offer South America

• Flattened management hierarchies

• Quick decision making, no secretaries, Mattel red 6 layers

• Expanded team based management

• Cross Functional Teams, multiple roles

• Innovative communication
technologies
• E-mail, Voice Mail, Fax, Video conferencing
 Business Trends-Require Excellent
Communication Skills

• New work environments

• Home Office, cost cutting, more productivity

• Increasingly diverse workforce

• Race, ethnicity , gender, age, diverse experience

• Thriving in the age of knowledge

• Education/ability is paid, life time security, predictable
promotions
 Benefits

• Improve productivity & quality.

• Better problem solving & decision making.
• Reduction in grievances, errors and
wastage.
• Increase creativity & idea generation.
• Improved working relationship and morale.
• Greater personal fulfillment & satisfaction.

• Quality of Life = Quality of Communication

 Benefits
• BUSINESS : SUM TOTAL OF SEVERAL
DECISIONS.

• DECISION - OUTCOME OF COMMUNICATION

PROCESS.
• GOOD COMMUNICATION MEANS GOOD DECISIONS
AND GOOD DECISIONS LEAD TO SUCCESSFUL
BUSINESS.

• BAD COMMUNICATION MEANS BAD DECISIONS

AND BAD DECISIONS LEAD TO LOSS OF
OPPORTUNITIES.
 Process of Communication
Feedback
travels to
sender
Noise

Sender Sender Receiver Receiver

has Channel carries message “understands”
encodes decodes
idea message message message

Noise
Possible additional
feedback to
receiver
 Process
How may the sender encode a Verbally or nonverbally. By speaking,
message? writing, gesturing.
What kinds of channels carry Letters, e-mail, memos, TV,
messages? telephone, voice, body. Others?
How does a receiver decode a Hearing, reading, observing.
message?
When is communication successful? When a message is understood as the
sender intended it to be.
How can a communicator provide for Ask questions, watch responses,
feedback? don’t dominate the exchange.
 Communication Networks
• Formal Channels
• Through Hierarchy of command
• Downward Flow
• Upward Flow
• Horizontal Flow

• Informal channels
• Grapevine
 Formal Network
• As our body has arteries, organization has well-
established channels of information flow. These
are formal channels of communication--the main
lines of organization’s internal communication.

• These include reports, records and other forms

that supply working information to the various
parts of the organization, the orders, instructions
and messages flow up and down and horizontal.

• These main channels do not just happen, they are

carefully thought or at least they should be
 Hierarchy of Command

CEO

VP VP VP VP
MARKETING PRODUCTION FINANCE HUMAN RESOURCE

SALES PLANT ACCOUNTS PERSONAL

MANAGER MANAGER MANAGER MANAGER

REGIONAL MAINTANENCE PRODUCTION SENIOR TRAINING

SALES MGR SUPERVISOR SUPERVISOR ACCOUNTANT MANAGER

AREA
ACCOUNTANT
MANAGER

SAES OFFICER SAES OFFICER SALES OFFICER SALES OFFICER

 Forms of Communication Flowing
Through Formal Channels
Written Oral Electronic
• Executive memos, letters
• Annual report • Telephone • E-mail
• Company newsletter • Face-to-face • Voicemail
• Bulletin board postings
• Orientation manual • conversation • Instant Messaging

• Company meetings • Intranet

• Team meetings • Videoconferencing

 Downward Flow
CEO →Higher management → Middle management →Workers

• Modes
• Policies
• Procedures
• Job plans
• Instructions etc.
 Downward Flow
• Disadvantages
– Lack of communication skills
– Distortion
– Human element/understanding
– Time loss
• Remedies
– Small operating units
– Direct communication
– News letters, announcements, meetings
 Upward Flow
• Most essential
• Workers → Middle Management →Higher Management →CEO
• Feedback
• Integral part of decision making
• Completing tasks
• Obstacles encountered
• Customer feedback
• Modes
• Phone, memos, reports, meetings, e-mail,
suggestion box
 Upward Flow
• Disadvantages
– Lack of trust
– Fear of reprisal
– Lack of communication Skills
• Remedies
• Improving communication skills of employees
• Regular reports / feedback mechanism
• Regular Meetings
• Creating non threatening open environments
 Horizontal Flow
• Task co-ordination
• Information sharing
• Problem solving
• Skills and knowledge sharing
• Disadvantages
• Poor Communication Skills
• Ego
• Prejudice
• Leg pulling
• Competition
• Remedies
• Teamwork, Training (Communication, Teamwork)
• Participation
 Grapevine
• Informal communication network is also known as
grapevine.

• Far more effective than it may first appear. It is

probably one of the most prevalent and reliable
forms of communication.

• Grapevine starts when employees feel it safe to

venture their feelings or opinion to peers. It
consists of gossip and rumor, since this is the
nature of human conversation.

• Grapevine carries far more information than does

the formal communication system and on many
matters it is more effective in determining
organization’s course.
 Point of Differentiation
Activities/Time Allocated-Spent