LECTURE-1 FUNDAMENTALS OF BUSINESS COMMUNICATION

Objective:
Define business communication
Explain the communication process
Explain the significance of business communication
Understand the difference between Business Communication and Business English
Identify the basic patterns found in business communication

Why study business communication?

A recent survey of 1,000 largest employers in the United States reveals that 96 percent of their
executives believe that employees must have good communication skills to advance professionally
(Robert Half International, 1998). Another survey of 90 graduate programs shows that the deans of
those programs see communication as one of the greatest teaching priorities of an MBA program
(Jones Graduate School of Management, Rice University, 2000).

The father of Management by Objective, Peter Drucker, says, “Colleges teach the one thing that is
perhaps most valuable for the future employee to know. But very few students bother to learn it. This
one basic skill is the ability to organize and express ideas in writing and speaking. As soon as you
move one step from the bottom, your effectiveness depends on your ability to reach others through the
spoken or the written word. And the further away your job is from manual work, the larger the
organization of which you are an employee, the more important it will be that you know how to
convey your thoughts in writing and speaking. In the very large organization…this ability to express
oneself is perhaps the most important of all the skills a person can possess.” (Lesiker, 2012)

Importance of effective communication

Getting the job you want
Gaining promotion
Providing leadership
Being productive on the job
Relating positively to others
Solve problems
Assuring the success of your organization

History of Business Communication as a Subject

The business communication is closely linked with the histories of communication and that of
business operations. It is directly related to subjects like management, marketing, consumer behavior,
and advertising. The Association for Business Communication (ABC), a society of practitioners in
the field of business communication, was founded in 1936 and currently located at Stephen F. Austin
State University in Nacogdoches, Texas. It began to be taught as a separate subject after the WW2
era. George Burton Hotchkiss (1884-1953), Professor of Business English in NYU, wrote numerous

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books that address the topics found in modern business communication courses. He was the foremost
experts on marketing, advertising and business writing of his time.

What is business communication?

Business communication is the process of establishing a common understanding between people
within a professional environment through exchange of ideas and information. It is a transactional
process. Directly or indirectly this communication contributes to an organization’s goals and
objectives. It is synonymous with professional communication. Managerial or corporate
communication, leadership communication is part of the business communication.

Goals of business communication

1) Receiver’s understandings
2) Receiver’s response or reaction
3) Favorable relationship
4) Organizational goodwill

Personal or social communication among family members and friends does not have overarching
organizational goals that are found in business communication.

The communication process within a specific environment:

Message
Channel

Receiver
Sender

Feedback

Barrier

The communication process pictured above has several elements including sender, receiver, message,
feedback, barriers, and channels:

Sender is the person who initiates the message. It could be a speaker, writer, or a presenter. The
role of a sender includes:
1. Determining the need for the message
2. Selecting the channel (phone call, email, face to face meeting, etc)
3. Analyzing the receiver (level of receiver’s knowledge, status, interests, etc)
4. Composing the message (preparing, editing, etc)
-Receiver must understand
-Must encourage the receiver to reply or respond
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 5. Removing communication barriers

Receiver is the person who gets the message. It could be a listener, a viewer, or an audience. The
role of a receiver includes:
1. Listening, watching or reading the message
2. Be open to new or different ideas
3. Analyze the message and make notes if necessary
4. Ask question to clarify the message
5. Provide feedback to the sender

The receiver becomes a “sender” when he or she provides a feedback and adds new message.

Message is the information or data that is transmitted. This message could be verbal or nonverbal.
Anything that uses word, either spoken or written, is verbal. Anything that conveys information or
message without using a word is nonverbal. Symbols, signs, and body language use no word to
express information or ideas. [The word verbal came from the Latin word verbum, meaning word]

Channel is the media by which the message is delivered. It could be face-to-face meeting,
telephone, online teleconference or social media.

Feedback is the receiver’s answer, response or reaction to the message.

Barriers are elements that distort the message or create obstacles for clear communication. Two
types of barriers are physical and non-physical barriers. Physical barriers are easy to identify and
remove. For example, poor sound, space between the receiver and the sender, poor handwriting.
Non-physical barriers are often difficult to identify and remove. Listner’s lack of interest or
motivation, speaker’s lack of language skills, cultural differences between the sender/receiver area are
examples of non-physical barriers.

READING: Eight Essential Components of Communication (page 8, textbook), Two Models of

Communication (page 12, 13, textbook)

Some patterns or found in Business Communication:

Internal communication (Internal-operational communication): Communication that takes
place within an organization as part of a job requirement. A telephone conversation between a CEO
and the MD of a company about a project is an example of internal communication.

External communication (External-operational communication): Communication that takes

place with outside customers, clients, media or government. Formality and message contents differ in
external and internal communication. An example of external communication would be the press
release written by the Public Relations Department to the media announcing a charity event.

Formal communication: It means official, planned or structured exchange of information or ideas.

Speech made by the Chairperson of a company at the Annual General Meeting (AGM) and the GM
presenting a report before the Board of Directors are examples of formal communication. Weekly
meeting of department could be less formal platform for communication.

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Informal communication: Unofficial and unplanned communication including rumors
(grapevine) related to personal or business issues. This type of communication is mostly oral. It is a
necessary part of professional environment. It helps to develop and maintain positive relationships
and fills in the gaps that exist within the formal communication system.

Serial Communication: It involves three or more individuals one after another or in a serial.
Sender should keep the message simple and request feedback. The receiver should take notes and
repeat the message to ensure he/she clearly understood the message that is to be delivered to a third
person.

KISS: The business message should be easy to understand. Most professionals are pressed
for time. To avoid miscommunication with the reader/listener, you should not compose a
complex or unnecessarily lengthy message. The message should not have unnecessary
information. Language trainers often call this the KISS principle (Keep it Short and Simple),
whereas a bored listener calls this “Keep it Short Stupid”.

Audience Oriented: Clear speaking or writing begins with adapting your message to your
specific readers or audience. Often you will need to write or speak at levels lower than your
own because your target audience (receiver) does not know much about the subject of your
message, or his/her vocabulary is limited, or he/she is not educated. The need for adaptation
or composing the message according to the audience’s belief, interest, knowledge (etc.)
becomes challenging when there are different readers/listeners with different backgrounds
and you are not fully aware of each audience’s qualification or capacities. The most effective
strategy under such circumstances includes
 Keeping the message specific, short and simple
 Using examples, illustration, visual aide to explain a statement or claim
 Leave opportunities for a feedback
(see previous recommendations for effective writing and speaking)

The 7 Cs of Communication: All of us spend almost our entire day communicating. We

can boost productivity by saving time in communication especially if it repetitive. After
composing a message, some people like to use a check list known as 7Cs to ensure it is
professional. According to this list, the message must be

1. Clear
2. Concise
3. Concrete (not vague or ambiguous)
4. Correct
5. Coherent
6. Complete
7. Courteous

READING: How effective is your business communication skill? By Martin Zwilling,

Forbes (Article 1)

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Questions and short answers
1. Why is business communication referred to as transactional?
Business communication is called transactional because it involves a give-and-take relationship
between the message’s sender and the receiver. Ideas or information are shared or exchanged between
two parties.

2. Why does receiver understanding the most important goal of business communication?
The receiver must understand the message as the sender intended. Only a clear understanding could
ensure the receiver’s appropriate action or reaction to the message.

3. What is meant by you-viewpoint?

When composing a message, the sender should take into consideration the receiver’s knowledge,
interests, attitudes and possible emotional reaction. This will ensure the message is suitable and clear
for the receiver, or the message is audience oriented.

4. Serial communication could be unreliable. Why?

Serial communication involves a message exchanged among three or more people in a serial or in
sequence (one after the other). There are great chances that each sender may knowingly or
unknowingly omit, modify, or add some extra information to the message. The last receiver may not
get the original message as intended.

5. Why is e-mail a better choice for serial communication than an oral message?
E-mail is a better choice for serial communication because the message can be forwarded to the next
receiver without the sender paraphrasing it. Each receiver can simply forward the written message to
the next person.

6. What are the differences between formal and informal communication?

Absence or presence of a plan determines whether a communication is formal or informal in a
professional setting. Formal communication is planned. For example, a job interview. Informal
communication is unplanned or relatively less planned. For example, two colleagues talking about
the Eid holiday during the lunch, or exchanging mobile phone numbers. Such spontaneous
communication is not profession related but helps to improve work environment that ultimately helps
the organization. Often the term “official” is synonymous with “formal.”

7. What is included in the "communication environment"?

The communication environment includes all thing perceived by those who participate in the
communication process. It includes all things perceived by the senses--sight, hearing, touch, taste,
and smell.

8. Discuss the role of the sender and receiver in the communication process.
The sender initiates the message and is primarily responsible for the communication success. The
sender analyzes the receiver, selects the message type and channel, uses the you-viewpoint, provides
for feedback, and removes communication barriers. The receiver's role includes listening or reading
carefully, being open to different types of senders and to new ideas, making notes when necessary,
providing appropriate feedback to the sender, and asking questions for clarification.

9. Discuss factors the sender should consider when selecting message type and channel.
The sender should consider whether a permanent record is needed; whether receivers will readily
accept the message; where and how large the audience is; the length, complexity, and urgency of the
message; whether immediate feedback is necessary; and whether credibility is a concern.

10. Describe how to analyze a receiver.

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Message senders should analyze receivers in four areas: (a) Knowledge--education, experience, and
vocabulary level; (b) Interests--concerns, needs, and motivations; (c) Attitudes--values, opinions,
biases, and viewpoints, and (d) Emotional Reaction--happy, neutral, or angry.

11. Explain how the appearance of a message can be a barrier to effective communication.
The appearance of a message affects its readability and the overall impression it makes on the
receiver. When it distracts the reader, the appearance of a message becomes a communication
barrier. Appearance has an effect not only in print messages but also in electronic messages such as e-
mail and web pages.

12. Explain the statement:

Communication is the process of conveying intended meanings from one entity or group to another
through the use of mutually understood signs and rules. - Prof. Bringi Dev, Indian Institute of
Management, Bangalore, 2019

MCQ
1. Business communication can be described as
a. all contacts inside and outside an organization.
b. establishing a common understanding within a business environment.
c. preparing letters and memos.
d. the transmission of data and information in the business environment.
2. Formal communication in an organization
A. flows in all directions. B. is essential for effective personal
relationships.
C. is not essential for the operation of a business. D. is not planned by the
organization.
3. The sender analyzes the receiver’s knowledge so that the sender can
A. avoid making a negative impression. B. choose the approach to use in the
message.
C. compose the message at the proper level. D. emphasize receiver benefits.
4. The grapevine is another name for
A. informal communication. B. Interoffice communication.
C. network communication. D. serial communication.
5. The casual or informal way in which English is used is known as
A. colloquial language B. conversation
C. denotation D. slang

Exercise: True or false?

1. To be successful, an organization needs effective internal and external communication.
2. The sender and receiver have equal responsibility for achieving the goals of business
communication.
3. In business communication, senders and receivers strive to establish a common understanding.
4. The most important goal of business communication is that the receiver understands the message
as the sender intends.
5. Citing receiver benefits in a message not only fosters a favorable relationship between the sender
& the receiver but also demonstrates use of the you-viewpoint.
6. Achieving the fourth business communication goal--organizational goodwill--is a corporate, not an
individual, responsibility.
7. An individual’s status within an organization has no effect on the communication process.
8. Serial communication may follow a horizontal path as well as a vertical path.

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9. Efforts to suppress an organization’s open, honest, complete grapevine communication can lead to
low employee morale.
10. Babu Chandranath works for Dacca Bank. When Babu communicates with Salma, a
representative of the Bangladesh Bank, he is engaging in internal communication.
11. Once established, an organization’s culture is static.
12. Office politics may be positive or negative. See article:
https://www.forbes.com/sites/forbescoachescouncil/ 2019/03/11/why-you-should-be-playing-
positive-office-politics/#76a59f9b59a7
13. As part of the communication process, the sender must encourage feedback and the receiver must
provide feedback.
14. The two main types of communication are written and verbal. [Verbal=words]
15. A sender can initiate a message with written words, spoken words, or gestures.
16. Analyzing a receiver’s knowledge will assist a writer in deciding whether to use the direct or
indirect plan when organizing a message. [Next lecture]
17. Using the you-viewpoint means eliminating writer-centered words from a message.
18. When speakers use connotative words, they risk having the receiver infer a meaning different
from what was intended.
19. A sender's credibility is based solely on the content of his or her message.