MGT 201 - Business Communication

Communication

 Communication is the act of giving, receiving, and sharing information.

Why do we Communicate?

 Because we use communication to share information, comment, ask questions, express

wants and needs, develop social relationships, social etiquette, etc. Communication is
much more than wants and needs. Our main reasons for communication change over
time just slightly. ... Exchanging information grows through the years.

When do we Communicate?

 We communicate every second, minute, hours. Whatever we do whenever we do it we

communicate. But?

How do we Communicate?

 We can communicate through oral/verbal, non-verbal like drawing, hand/body language,

or through writing.

Communication as a dynamic and complex process

 Communication is a multidimensional process. As a basic social process communication

is essential to the growth and development of the individual, to the formation and
continued existence of groups or organizations, and to the interrelationship among groups
or organizations.

Definition of Business Communication

 Business communication is the process of sharing information between people within and
outside a company.

 According to Sharma (1991), it is a process of linking superior and subordinates in

various department of an organization to one another and to management.

 According to James (1970), It is a private written communication which designed to

accomplish a specific purpose. As a rule, letters are individually dictated, typewriters or
encoded and signed. Finally, they collective emphasized that even from letters duplication
in large numbers are private in the sense that they are enclosed envelopes addressed to
individual.

Elements of Communication

The principal elements of the communication process are the following:

1. Sender - is the originator or the source of the message / information. He encodes the
message to an intended listener / reader (receiver).

2. Receiver - refers to the intended recipient of the message communicated or sent by

the sender. He decodes or interprets the message received.

3. Message - is a transmissible combination of information. It serves as a link, which

connects both the sender and the receiver toward meaningful understanding.

4. Channel - is the medium used by the receiver to transmit the idea after being encoded
into a message
 5. Noise - refers to all kinds of disturbance or distractions that prevent a gap in the
communication process during the transmission of the message from the sender to
receiver.

The result of noise is generally a loss or distortion of meaning of the message, which
can affect the reception. There are two general types of noise, namely:

a) Channel Noise - includes any disturbance, which interferes with the physical
transmission of a message.

b) Semantic Noise refers to the disturbance, which interferes with the receiver’s
interpretation of the meaning of the message sent (semantics is the study of changes
in the meaning of words).

The following give rise to semantic noise, which results to misinterpretation of

messages:

i. Words and subjects that are too difficult for the receiver to understand;

ii. Differences in selected denotative meaning of words between the message sender and
receiver (denotative meaning points to objects).

iii. Differences in connotative meaning of words between message sender and receiver
[connotative meaning is the association implied by a word in addition to its literal
meaning].

iv. Sentence patterns which are confusing to the receiver.

v. Poor organization of the message, which confuses the receiver; and

vi. Cultural differences between sender and receiver.

6. Feedback - is the reaction or response of the receiver, which is communicated to the

sender.

Characteristics of effective business letters

1. Definite Purpose - the businessman should write a letter only when he has a definite
purpose and can clearly identify the response he seeks.
2. Consideration for the Reader - since it is the intention of every correspondent to
produce results beneficial to his company, he must be aware of faction influencing the
reader such as courtesy; use language that can be readily understood by the readers
and the ability to see every transaction from the reader’s point of view.
3. Natural Style - in addition to presenting his ideas clearly, the businessman’s language
should dispose the reader toward the writer and his form.
4. Correct Usage and Form - an effective letter is free from sentence structure errors.
5. Attractive Appearance - a neat letter will understandably attract favorable attention
and, therefore, has a letter chance of success as compared to a slovenly written one.

Basic criteria of effective business communication

1. It is clear – The meaning the reader gets is the meaning the writer intended.

2. It is complete – All the reader’s questions are answered and the reader has enough
information to evaluate the message adequately and to act upon it.

3. It is correct – All the information in the message is accurate.

4. It saves the reader’s time – The information’s can be read, understood, and acted
upon as quickly as possible.
 5. It builds goodwill – the message presents a positive image of the writer and fosters
a good relationship between the writer and the reader.

Four considerations of a business letter

There are four areas to be taken into consideration when writing a business letter
according to Dugger (1994). These are: subject, audience, purpose, and style and
organizations.

1. Subject. Every piece of writing in a business letter or a short story revolves around a
subject matter. In business writing, the subject should be specific. It is either given by a
superior or a colleague, or shaped/dictated by a situation such as hiring or
congratulating an employee.
2. Audience. This area is crucial. It is fraught with dangers since most often, the
audience is not known. Sometimes, a letter containing a request or call for action may
be addressed to Juan Dela Cruz, but may be read by other people in the firm. Thus, if
the intended audience is not known, assume that they are educated, reasonable
people, until the audience is already recognized.
3. Purpose. The purpose must be well-defined. Numerous letters are sent to many
people with specific subject matter and audience in mind. Yet they are not clear with
their purpose.

As the senders, you should ask yourself the following basic questions. Why am I sending
the letter? Will it be to give information or to seek information? Will it be to persuade and call
for a decisive action?

4. Style/organization. The first three areas alone dictate the content, direction, and
emphasis of the letters.
a) know what you are writing – subject
b) know who you are writing for – audience
c) know why you are writing – purpose

The basic organization for the body of a business letter is as follows:

a) Part 1 – state your purpose.

b) Part2 - explain what you want to happen or explain the information you have; and
c) Part 3 – request action, conclude, or thank the reader for his response.

The Goals of Business Communication

1. It carries a message of importance. The recipient of the letter should readily

understand whether he is going to say “yes” or “no” to what is proposed in the letter
that is really important. This may be achieved when the message depicts truth,
individuality, and power.
2. It must deliver the message promptly so that the recipient of the letter will reply
favorably at once. This may be accomplished when the letter is impressive and its
contents are plain, interesting and compact to enable the reader to act in the shortest
possible time and with the least possible effort.
3. It should sell either goods, goodwill or both, or pave the way for future business
transactions. Every business letter should be fundamentally a sales letter.
4. It is a business letter. The letter is less expensive than the sales representatives and
it can reach the supposed recipient on time.