What is Business Communication?

Communication needs to be effective in business. Communication is the essence of management.

The basic functions of management (Planning, Organizing, Staffing, Directing and Controlling)
cannot be performed well without effective communication.

Business communication involves constant flow of information. Feedback is integral part of

business communication. Organizations these days are verly large and involve large number of
people. There are various levels of hierarchy in an organization. Greater the number of levels, the
more difficult is the job of managing the organization. Communication here plays a very important
role in process of directing and controlling the people in the organization. Immediate feedback can
be obtained and misunderstandings if any can be avoided. There should be effective
communication between superiors and subordinated in an organization, between organization and
society at large (for example between management and trade unions). It is essential for success
and growth of an organization. Communication gaps should not occur in any organization.

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.

Business Communication can be of two types:

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.

Components of Communication Process

Communication is a process of exchanging verbal and non verbal messages. It is a continuous

process. Pre-requisite of communication is a message. This message must be conveyed through
some medium to the recipient. It is essential that this message must be understood by the recipient
in same terms as intended by the sender. He must respond within a time frame. Thus,
communication is a two way process and is incomplete without a feedback from the recipient to the
sender on how well the message is understood by him.

The main components of communication process are as follows:

Context - Communication is affected by the context in which it takes place. This context may be
physical, social, chronological or cultural. Every communication proceeds with context. The sender
chooses the message to communicate within a context.

Sender / Encoder - Sender / Encoder is a person who sends the message. A sender makes use of
symbols (words or graphic or visual aids) to convey the message and produce the required response.
For instance - a training manager conducting training for new batch of employees. Sender may be an
individual or a group or an organization. The views, background, approach, skills, competencies, and
knowledge of the sender have a great impact on the message. The verbal and non verbal symbols
chosen are essential in ascertaining interpretation of the message by the recipient in the same terms
as intended by the sender.

Message - Message is a key idea that the sender wants to communicate. It is a sign that elicits the
response of recipient. Communication process begins with deciding about the message to be
conveyed. It must be ensured that the main objective of the message is clear.

Medium - Medium is a means used to exchange / transmit the message. The sender must choose an
appropriate medium for transmitting the message else the message might not be conveyed to the
desired recipients. The choice of appropriate medium of communication is essential for making the
message effective and correctly interpreted by the recipient. This choice of communication medium
varies depending upon the features of communication. For instance - Written medium is chosen
when a message has to be conveyed to a small group of people, while an oral medium is chosen
when spontaneous feedback is required from the recipient as misunderstandings are cleared then
and there.

Recipient / Decoder - Recipient / Decoder is a person for whom the message is intended / aimed /
targeted. The degree to which the decoder understands the message is dependent upon various
factors such as knowledge of recipient, their responsiveness to the message, and the reliance of
encoder on decoder.

Feedback - Feedback is the main component of communication process as it permits the sender to
analyze the efficacy of the message. It helps the sender in confirming the correct interpretation of
message by the decoder. Feedback may be verbal (through words) or non-verbal (in form of smiles,
sighs, etc.). It may take written form also in form of memos, reports, etc.

Written Communication - Meaning, Advantages and Disadvantages

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. Also, writing is more valid and
reliable than speech. But while speech is spontaneous, writing causes delay and takes time as
feedback is not immediate.

Advantages of Written Communication

Written communication helps in

laying down apparent principles,
policies and rules for running of an
organization.

It is a permanent means of communication. Thus, it is useful

where record maintenance is required.

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.

Written communication is more precise and explicit.

Effective written communication develops and enhances an

organization’s image.

It provides ready records and references.

Legal defenses can depend upon written communication as it

provides valid records.

Disadvantages of Written Communication

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.
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.
Written communication is time-consuming as the feedback is not immediate. The encoding and
sending of message takes time.
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.
Too much paper work and e-mails burden is involved.

Effective Writing for Results

While writing to a friend, colleague, client, or a business partner, the content must be clear, concise,
persuasive, accurate, and confident. Read on to know some tips for making the letter / memo /
presentation worthwhile.

Avoid being verbose: Choose shorter words and sentences. For e.g. “I wanted to bring to your notice
that the meeting has been cancelled”. [10 words] This sentence could be rephrased as “Please note
the meeting has been cancelled”. [7 words]

Use objective subject lines: The subject of the memo / letter / e-mail should be objective and should
reflect the content of the message. For e.g. “Tips on Effective Writing for Business” conveys to the
reader that the message content will be related to information on effective writing.

Decide your audience: It is advisable to write to one set of audience as writing to different
professionals would require choosing correct verbiage which is understood by different
professionals in the same way. Also, do not use words which are very technical and can be
understood only by a specific audience.

Request for action: Never leave the reader guessing “what next ?” He or she should know what is
expected out of him / her. Close your mail / letter with the action you are expecting the reader to
take.

Share companywide messages with a strategy: Do not overload employees with a lot of text heavy
mails. Divide the message. For e.g. If a company has set up a videoconference room, the Corporate
communication Team should sent out the first message announcing the launch, the second message
on how to use the equipment, and the third message on how to block the conference room for client
meetings and calls.

Logically format a document: Ensure that the content in the message is linked to the subject and to
the content below and above it. There should be a logical connection in various paragraphs included
in the document.

Be Persuasive: Address one reader rather than many as it increases the focus and also creates
accountability of the reader.

Engage the audience: Talk to the audience. For e.g. Rather than saying, “There will be two ways for
calculating the cost.” The sender of the message could say, “Financial Analysts can choose one of
two procedures to calculate the cost.”

Check before you send: Always proofread the mail / memo / document that is to be sent. Remember
the first draft is not always the final draft. Do not only check for content, but also, check for
formatting, subject lines, audience, and attachments.

Execute with confidence: Do not be fearful while sending the communication. If a reminder needs to
be sent, it should be sent. Do not try to send it to a group, rather send it to those who haven’t sent
the reports so far. For e.g. In case you are following up on a report you asked for, address the
audience as “Thank You X, Y, Z for sending the reports. We are still awaiting reports from A, B, and C.
Request you to send them latest by 4:00 PM today.”

Seven C’s of Effective Communication

Completeness - The communication must be complete. It should convey all facts required by the
audience. The sender of the message must take into consideration the receiver’s mind set and
convey the message accordingly. A complete communication has following features:

Complete communication develops and enhances reputation of an organization.

Moreover, they are cost saving as no crucial information is missing and no additional cost is incurred
in conveying extra message if the communication is complete.

A complete communication always gives additional information wherever required. It leaves no

questions in the mind of receiver.

Complete communication helps in better decision-making by the audience/readers/receivers of

message as they get all desired and crucial information.

It persuades the audience.

Conciseness - Conciseness means wordiness, i.e, communicating what you want to convey in least
possible words without forgoing the other C’s of communication. Conciseness is a necessity for
effective communication. Concise communication has following features:

It is both time-saving as well as cost-saving.

It underlines and highlights the main message as it avoids using excessive and needless words.

Concise communication provides short and essential message in limited words to the audience.
Concise message is more appealing and comprehensible to the audience.

Concise message is non-repetitive in nature.

Consideration - Consideration implies “stepping into the shoes of others”. Effective communication
must take the audience into consideration, i.e, the audience’s view points, background, mind-set,
education level, etc. Make an attempt to envisage your audience, their requirements, emotions as
well as problems. Ensure that the self-respect of the audience is maintained and their emotions are
not at harm. Modify your words in message to suit the audience’s needs while making your message
complete. Features of considerate communication are as follows:

Emphasize on “you” approach.

Empathize with the audience and exhibit interest in the audience. This will stimulate a positive
reaction from the audience.

Show optimism towards your audience. Emphasize on “what is possible” rather than “what is
impossible”. Lay stress on positive words such as jovial, committed, thanks, warm, healthy, help, etc.

Clarity - Clarity implies emphasizing on a specific message or goal at a time, rather than trying to
achieve too much at once. Clarity in communication has following features:

It makes understanding easier.

Complete clarity of thoughts and ideas enhances the meaning of message.

Clear message makes use of exact, appropriate and concrete words.

Concreteness - Concrete communication implies being particular and clear rather than fuzzy and
general. Concreteness strengthens the confidence. Concrete message has following features:

It is supported with specific facts and figures.

It makes use of words that are clear and that build the reputation.

Concrete messages are not misinterpreted.

Courtesy - Courtesy in message implies the message should show the sender’s expression as well as
should respect the receiver. The sender of the message should be sincerely polite, judicious,
reflective and enthusiastic. Courteous message has following features:

Courtesy implies taking into consideration both viewpoints as well as feelings of the receiver of the
message.

Courteous message is positive and focused at the audience.

It makes use of terms showing respect for the receiver of message.

It is not at all biased.

Correctness - Correctness in communication implies that there are no grammatical errors in

communication. Correct communication has following features:

The message is exact, correct and well-timed.

If the communication is correct, it boosts up the confidence level.

Correct message has greater impact on the audience/readers.

It checks for the precision and accurateness of facts and figures used in the message.

It makes use of appropriate and correct language in the message

LETTER

Letters are the most widely used from of written communication. They are used mostly for
external communication. A letter has a complex layout which has to be carefully followed as each
part of the layout has a purpose and is needed for reference. It is typed/ printed on the company’s
letterhead. It may be sent by mail, speed post, courier or hand delivery.

MEMO

MEMO (Short form of memorandum) is usually an informal message between members of an

organization and generally relates to daily work. Instructions can be conveyed by a memo. Many
organizations provide pads of memo forms (with blank sheets of carbon copies) for the exchange of
short messages among individuals. Memo forms are usually small and used for brief messages. The
forms may have the company’s name printed on the top; spaces are provided for date, sender’s
name and department, and the receiver’s name and department. Top executives of an organization
may have personal memo pads with their name printed on the top, for use within the department. A
memo may or may not be signed.

NOTICE

A notice is used when people in the organization have to be given the same information. It is the
most common method of mass communication with in an organization. A notice is short; the
language is simple, and the type is large and well spaced for easy reading. A notice is put up on the
notice board.

CIRCULAR

A circular is a detailed document giving information, instructions or orders on a specific matter. A

circular has a number and a date for reference, and is signed by the authorized signatory of the
issuing office. Circulars are generally issued by the government departments and other official
bodies like councils, universities and had offices of the organization. Circulars are sent by mail or fax
to the various offices that are to be given the information.

REPORT

A report is a document prepared by an individual or a committee entrusted with the task of

collecting information on a given subject. It requires careful research, collection of data and
presentation of the findings, conclusions and recommendations. Reports are of varying length and
may be anything from two pages to a full book divided into chapters.

MINUTES

Minutes are the written record of decisions taken at a meeting. Different bodies have their own
convention of recording the discussion and the decisions. Minutes may be written by hand or typed
and pasted in a minute book, or typed and fild in a minute file. Minutes are a legal document.

FUNCTIONS OF WRITTEN COMMUNICATION

• Written message can wait for the attention of the receiver while speech requires immediate
attention.

• It is now possible to use Dictaphones and leave voice mail on the telephone which will be heard by
the other person later.

• Written communication serves as a record and can be used for future reference. It is a

document proof, and can b used as legal evidence.

• Written communication is very precise and accurate.

• Written communication is also known as non-verbal communication.

• Anything that is understandable to the minds of the receiver can be considered as written
communication.

• To provide a convenient and inexpensive means of communication without personal contact.

• To seek or give information to the reader.

• To furnish evidence of transactions entered in the communication.

• To provide a record for future reference.

• It also helps in building goodwill by creating in the mind of the reader an impression of the writer’s
organization as one that is efficient, reliable and anxious to be of services.

• Written communication has a lasting impression on the reader’s mind because it stays with
him, goes with him and does its work efficiently very time it is read.

• Written communication widens the approach between the businessmen and his

representatives.

• Written communication acts as an authoritative proof and it can be treated as a valid

document that can be produced as evidence in the court of law in case of dispute.

• Written communication is an indispensable form of communication for industry and

commerce.

• Any form of communication should make an impression on those who receive them.

• The 2 forms of non-verbal communication are visual and aural which are used consciously by
skilled communicators.

ADVANTAGES OF WRITTEN COMMUNICATION

1. Non-verbal methods have an almost instant effect because of quicker grasp by the receiver; it
takes less time to see a color or a picture and to hear a horn or a bell than to read or hear and
understand words and sentences.

2. Speed in conveyance and response makes non-verbal methods extremely useful in critical
situations like traffic signs and signals.

3. Visual, non verbal methods aid verbal communication; maps, charts and graphs are necessary
for conveying information or plans related to geography, locations, data, and most of the sciences.

4. A large amount of complex data can be presented in a compact form: one page can convey
information that would need several pages of words. It makes information available conveniently.at
a glance for comparisons.

5. Response to visuals and plains sounds is more powerful than language.

6. A cry of agony arouses stronger response than a sad story; a film is more effective than a written
story. TV news is more interesting than of radio.

7. It is the best method to convey information to illiterate people. Containers of poisons are marked
with a skull and cross-bones as a warning; illiterate drivers manage with the non-verbal traffic
signals.

8. Films are used to explain process to people who may not follow oral explanations easily.

9. Non-verbal communication can overcome the barrier of language.

LIMITATIONS OF WRITTEN COMMUNICATION

1. Written communication can take time to deliver.

2. Written information can be lost by the receiver.

3. Written communication is not 100% sure of security.

4. It can easily be opened and read or sent to the wrong address.

5. Takes time to produce letter and can be inconvenient if an urgent message has to be delivered.

6. No guarantee or assurance that message has been received unless feedback has occurred.
7. If recipient does not understand any information, then they have to reply to the message stating
the problem and then wait for another message reply from the sender.

8. Rival companies can gain access to this information to increase competition between the
organizations.

9. A report is a formal method of communication and is therefore time consuming to prepare.

10. If a reader of the report wanted to give feedback, then the process for this would be long.
Causing the barriers of communication to occur.

11. Annual reports have to be produced every year even if the company had a bad year.

12. Annual reports have open channels of communication because they can be read by any one at
any time.

13. The notice can easily be taken down to be read by an employee or covered up by another notice.

14. It can take time to distribute the notices around the organization.

15. If they don’t look attractive, people tend not to look at them as they may think from their first
impressions that it doesn’t seem very interesting.

CIRCULAR LETTERS

INTRODUCTION

A circular is a letter or memorandum addressed to a number of persons or intended for general

circulation. This form of communication is very commonly used both within organizations and for
sending out information from the organizations. Circular letters are, therefore, the letters conveying
the same information from a businessman or a business organization to a large number of customers
and suppliers.

Circular letters are mostly written in the following situations:-

1. Introducing a new product or service.

2. Opening a new shop, branch, or regional office.
3. Expansion of an establishment.
4. Change of address.
5. Appointment of a sole-selling agent.
6. Seasonal discount.
7. Increase in prices.
8. Announcing a prize scheme.
9. Change in the constitution of the firm.
10. Partnership information.
11. Retirement or death of a partner / associate.
Types of business messages:

• Good will messages.

• Positive messages.
• Persuasive messages.
• Negative messages.

GOODWILL MESSAGES

Goodwill messages are those which include thanks, recognition, and sympathy. Finding the right
words to express feelings is something more difficult than writing ordinary business document.
These messages are easier to write whn the situation is fresh in our mind.

Functions:

1. Self less
The focus of the message should solely be on the receiver, not the sender .We should not talk about
ourselves.

2. Specific
Personalize the message by mentioning specific incidents or characteristics of the receiver. Take care
to verify names and other facts.

3. Sincere
Let your words show genuine feelings, Rehearse in your mind how you would express the message
to the receiver orally. Then transform that conversation language to your written message.

4. Spontaneous
Keep the message fresh and enthusiastic. Avoid canned phases. Strive for directness and
naturalness. Not creative brilliance.

5. Short
Although good-will messages can be as long as needed, try to accomplish your purpose in few
sentences. What’s most important is remembering an individual.

Uses

1. To Express Thanks.
2. Response.
3. Sympathy.

Objectives :

1. To Express Thanks for a Gift.

2. To Send Thanks for a Favour.
3. To Extend Thanks for hospitality.
4. To Answer a Congratulatory Note.
5. To Respond to a Pat on the Back.
6. To Express Condolences.

Positive Messages

In an informative or positive message, you expect the audience to respond neutrally to the
message or to be pleased. Negatives are minor; they are not the main point of the messages. We
must convey information but are not asking the audience to do anything.

Functions

Functions of positive messages are :

1. Acceptances.

2. Positive answers to reader requests.

3. Information about procedures, products, services, or options.

4. Announcements of policy changes that are natural or positive.

5. Changes that are to the reader’s advantage.

6. Even a simple information or good news message usually has several purposes.

Uses

Uses of positive message are :

1. To build a good image of the writer.

2. To build a good image of the writer’s organization.

3. To cement a good relationship between the writer and reader.

4. To reduce or eliminate future correspondence on the same subject so the message doesn’t create
more work for the writer.

Objectives

Objectives of positive messages are :

1. To give information or good news to the reader or to reassure the reader.

2. To have the reader read the message.

3. To deemphasize any negative element.

Negative Message

In a negative message, the basic information is negative; we expect the reader to be disappointed
or angry. Few people like to give bad news-and even fewer people like to get it-but negative
messages are common in business. How we present negatives and what we write or say can affect
how audiences respond to our messages, as well as how they view us and our organization.

Functions

Negative messages are :

• Rejections and refusals.

• Announcements of policy changes that do not benefit customers or consumers.

• Requests the reader will see as insulting or intrusive.

• Negative performance appraisals and disciplinary notices.

• Product recalls or notices of defects.

A negative message always has several purposes.

Uses

• To build a good image of the writer.

• To build a good image of the writer’s organization.

• To reduce or eliminate future correspondence on the same subject so the message does not create
more work for the writer.

Even when it is not possible to make the reader happy with the news we must convey, we still want
readers to feel that

• They have been taken seriously.

• Our decision is fair and reasonable.

• If they were in our shoes, they would make the same decision.

Objectives

*To give the reader the bad news.

* To have the reader read, understand, and accept the message.
* To maintain as much goodwill as possible.
Persuasive Messages

In the 21st century, businesses depend more and more on persuasion and “buy—in” to get quality
work done. You can command people to make widgets. You can’t command people to be creative.

Functions

Functions of persuasive messages are:

• Proposals and recommendations.

• Sales and fund- raising letters.

• Job applications letters.

• Reports, if they recommend actions.

• Efforts to change people’s behavior, such as collection letters, criticisms or performance appraisals
where you want the subordinate to improve behavior, and public-service ads designed to reduce
drunken driving, drug use, and so on.

All persuasive messages have several purposes.

Objectives

* To have the reader act.

* To provide enough information so that the reader knows exactly what to do.
• To overcome any objections that might prevent or delay action.

Method

1. To build a good image of the writer.

2. To build a good image of the writer’s organization.

3. To cement a good relationship between the writer and the reader.