Chapter- 1: Business Communication Basics

Index:
Introduction to the course
Communication in the workplace
Understanding why communication matters
Barriers to Communication
Overcoming the Challenges of Communication
Intercultural Sensitivities
Effective Communication Process
Benefits of Effective Communication
Formal communication network/ Communication routes within a business
Nature of Communication: Formal/ Informal/ Somewhere in Between
Key Differences between Verbal and Nonverbal Communication
Nature/Characteristics of Business Message

Introduction to the Course

Business communication involves constant flow of information. Feedback is integral part of business
communication. Organizations these days are very 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:

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 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.

Business Communication: Communication is a process by which two or more persons exchange their
thoughts and ideas among themselves. One can share information, facts, and thoughts through
communication. If the communication is related to business then it is a business communication.

Any communication related to law, administration, finance, trade, management etc. are business
communication. A good communication helps in reaching the target of a business firm. It is a two–way
process. It is a continuous process. There are some elements for making a business communication useful,
and clear.

Elements of Business Communication: It basically consists of six basic elements. They are:

 Message – Information or point to convey

 Sender – He/she makes contact or giving information
 Receiver – The one for which the message is meant for
 A channel – A medium through which the message is transmitted
 Symbols – These are the words, actions, and signs used by the sender while communicating with the
receiver
 Feedback – The last element of business communication. These are basically the responses of the
receiver for the sender

The Objective of Business Communication : There are some purposes of business

communication. They are:

 All round development of an organization

 Improve mutual understanding
 Providing training
 Developing plans
 Giving information
 Increasing efficiency
 Explaining the idea or problem
 Conveying the idea or decision
 Encouraging others to take action
 Getting participation in developing a solution to a problem

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 Supporting employees
 Giving warnings
 Building trustworthiness

Characteristics of Business Communication:

 The business communication must be realistic in nature
 It must avoid the imaginary or useless information for saving time
 Any business communication must have a clear purpose or target. There should be no doubt in
communication.
 The concerned audience must be targeted
 The language used for targeting audience must not be attacking
 It must be a real exchange of information
 One cannot use any metaphor, poetic phrases or creative figures of speech
 It must be clear and brief
 Always use polite and well-mannered words while communicating
 It must be influential
 It must be based on facts and figures
 There must not be any personal opinion
 It must be based on mutual understanding
 One must use the exact format for business writing
 It is for providing information, advice, instruction, support or conveying a suggestion
 It can be used to give a warning or valuing good work

Steps for Effective Business Communication:

 Remove assumptions
 Listen first and then speak
 Find a good place and time for all to be involved in conversation
 Ask questions
 Pay attention to verbal and nonverbal messages
 Be patient

Communication in the Workplace

Workplace communication is the manner by which employees exchange information and ideas within an
organization. Communication is a crucial aspect to achieve organizational objectives and get any job done,
whether in-person or virtually. Workplace communication is the transmitting of information between one-
person or group and another person or group in an organization. It can include emails, text messages,
voicemails, notes, etc.

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Data shows that businesses with an engaged management and strong communication networks are more
likely to achieve their organizational goals. Teams that have good communication help team members
collaborate and participate effectively in achieving defined organizational goals. With everyone on the same
page, a high-performance culture is created, all because of good workplace communication.

Interpersonal communication skills are what can distinguish a manager from a leader in the workplace.
According to Robert L. Katz, an American social and organizational psychologist and creator of the concept of
managerial skills, the three basic types of management skills are: technical skills, conceptual skills, and
human or interpersonal skills. Effective strategies for better workplace communication-

 Use technology to facilitate communications

 Create an open environment
 Provide opportunities for feedback
 Get specific with instructions
 Celebrate achievements and milestones
 Open multiple lines of communication
 Connect across departments

Understanding why communication matters

Reasons Workplace Communication Matters:

 Workplace communication improves productivity.

 Employees who are scored highest in productivity continually receive effective communication ratings
from their superiors.
 Absenteeism and turnover rates decrease when a strong emphasis on workplace communication is
valued within the company.
 Employees feel more secure when they are on the receiving end of truthful communication and updates
from superiors.
 Employees feel valued in sharing ideas, thoughts, and concerns within the organization.
 Companies that provide communication training help reduce barriers due to language and cultural
differences.
 Training of domestic and international employees in effective communication avoids cultural confusion.
 Companies that prepare workers to excel with verbal and nonverbal communications skills find it easier
to enter into global marketplaces, than companies that do not prepare their employees.
 Effective workplace communication helps employees form highly efficient teams.

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 Unhealthy competition between departments decrease, ensuring that employees work together
harmoniously.
 Teams that work together report higher productivity, responsibility, and integrity.
 When everyone in the organization knows his or her role, they feel valued.
 Employee morale is highest when communication happens authentically and effectively.

Barriers to Communication

Any parameter that limits the purpose or channel of communication between the transmitter and the receiver
is a barrier to communication. A communication barrier may limit or reduce the ease at which we
communicate and hence the name barrier. Although the barriers to effective communication may be different
for different situations, the following are some of the main barriers:

 Linguistic barriers: This is one of the most significant barriers to effective business communication. One
can consider as a significant tool of communication. But the varying dialects and languages of different
regions can lead to ineffective communication. The dialects of every two regions keep changing with
every few kilometers. Also, in the workplace, different employees will have different linguistic skills. This
affects the operations of the organization.
 Emotional barriers: A person with strong emotions will be able to communicate effectively as compared
to the person who is not mature emotionally. There should be a perfect blend of emotions to facilitate
efficient business communication. Emotions like anger, frustration, jealousy can limit the decision-
making capacity of a person.
 Psychological barriers: Psychological and mental issues are also barriers to efficient communication.
Speech disorders, stage fears, depression, phobia, etc. everything can degrade the quality of business
communication.
 Cultural barriers: Because of globalization, it is now normal to have employees from different parts of
the world working in the same office. They will differ from each other in terms of dressing, food, religion,
and so on. Thus, it is essential to take into consideration these cultural factors to facilitate effective
communication. In several MNCs, at the orientation phases, they offer special cultural courses so that
people can get up well with one another and understand each other’s cultural preferences.
 Physical barriers: Such barriers include closed doors, faulty equipment, noise, closed cabins, and so on.
Such physical barriers can ruin business communication.
 Organizational barriers: Because of multiple organizational structures in an enterprise, organizational
structure barriers Different structures and setups give rise to misinformation, miscommunication, or lack
of transparency.
 Attitude barriers: Different people carry different attitudes. Some are extroverts, while others are
introverts. Even ambiverts are there. In the same organization, these three different natured employees

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 give rise to the issue of attitude barriers. Ego, pride, inconsiderate behaviors also affect the flow of
communication.
 Physiological barriers: Diseases or disorders can also have an impact on efficient business
communication. Issues like dyslexia, the shrillness of voice, etc. are some common examples of
physiological barriers. It is possible to remove these barriers with proper treatment and practice.
 Perception barriers: People tend to perceive things differently. Therefore, it is essential that you take
into consideration the perception of the audience. While communicating, always think from the
perspective of the audience.
 Technological barriers and socio-religious barriers: Technology is evolving every day and it is
necessary to keep up with the dynamic technology. But not every employee is tech-savvy. Also,
technological advancement often increases the cost of business operation. All these lead to technological
barriers in business communication. Socio religious barriers like partialities to transgender communities,
women, lower caste people are also there.
 The use of jargon: The use of unfamiliar, overcomplicated, or technical terms can generate confusion
and obscure meaning of the sender’s message. The solution is to use clear and concise messages that are
easy to understand.
 Withholding information: Within an organization, some information is kept confidential due to
company policies. Make sure the information that is needed is readily available and easily accessible.
 Chain of command: The maintenance of an organization’s hierarchy is essential, but its very presence
can reduce the flow of communication. To counteract that tendency, it’s important to reduce unnecessary
hierarchical levels and increase departmental interaction and communication.
 Lack of trust: In companies with a competition-driven culture, there may be a lack of trust among
employees, which can hamper communication. Companies should strive to involve their employees in
decisions, emphasize the importance of sharing information, and communicate openly and honestly.
 Physical barriers or disabilities: Hearing, vision, or speech problems can make communication
challenging. Organizations need to be aware of accessibility issues for both internal and external
communication.
 Bias: Preconceptions or prejudice can lead to stereotyping or false assumptions. Using care to choose
unambiguous, neutral language and explain things clearly can help reduce bias.
 Filtering: People may hear what they expect to hear or want to hear, rather than what is said. Because
filters are present in every system of communication, the message that the receiver receives is rarely the
same as the one the sender sends. Some distortion of the message is almost inevitable.
 Language and cultural differences: Language use and social norms vary enormously from culture to
culture. Companies need to educate themselves about cultural sensitivities and gear their messages to
their audiences.

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Overcoming the Challenges of Communication

When constructing a strategy to overcome the challenges to effective communication in the workplace, you
should put the following methods into action:

 Communicate clearly and concisely. The message must be simplified and presented in terms that all
can understand without being patronizing.
 Be consistent in your communication approach, encouraging people to explore and learn your vision
in an environment that helps them to understand how they play a part in delivering it.
 Challenge your leaders and managers to communicate verbally and face to face, especially when it
becomes necessary to communicate your brand strategy through storytelling to deliver change.
 Ensure that jargon is eliminated from your in-house conversations. Make plain language a policy to
be upheld in meetings, emails and other communications.
 Make time to listen to employees and learn from them but also be honest about the process you will
use to act on their feedback and ideas.
 Help your leaders to communicate by initiating and maintaining a communication strategy which
encourages openness and honesty, exchange of ideas and healthy conflict. Be precise on what is
communicated, when and how.

Intercultural Sensitivities

Intercultural sensitivity can be defined as “an individual's ability to develop emotion towards
understanding and appreciating cultural differences that promotes appropriate and effective behavior in
intercultural communication.

Many experts define cultural sensitivity as the willingness to acknowledge cultural differences without
making value judgments about these differences. Culturally aware business organizations operate with
the understanding that not every employee, vendor, or customer will share the same culture.

In good intercultural communication, understanding depends on the ability to perceive, react and
accept differences and similarities. The developmental model of intercultural sensitivity by Milton J.
Bennett explains this in six stages--three of them ethnocentric, and three of them ethnorelative.

The first stage defines ethnocentrism as the attitude or point of view by which the world is analyzed
according to the parameters of our own culture. It often involves the belief that one's own ethnic group
is the most important, or that some or all aspects of our culture are superior to those of other cultures.
The stages of ethnocentrism are:

- Denial: recognizing cultural differences perceived by the naked eye (schedules, holidays, food, dress,
etc.) but denying deeper intrinsic differences.

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- Defense: criticizing other cultures with negative or derogatory terms as a result of feeling
threatened, which leads to negative stereotypes, prejudices and discriminatory attitudes.
- Minimization: thinking that values and behavior are universal principles and are equal to one's own.

The second stage is ethnorelativism, a learned skill, where a person consciously recognizes values and
behaviors as a cultural matter rather than a universal one. The stages of ethno-relativism are:

- Acceptance: recognizing that cultural differences must be respected in order to improve interactions
We may not agree with a specific cultural practice or difference but we respect a co-worker's values.
- Adaptation: to be able to change a cultural outlook or behavior, which improves understanding and
communication in different cultural contexts.
- Integration: an effort to integrate different cultural elements and feel comfortable with multi-
cultural situations.

The concept of developing intercultural sensitivity reflects that our perception is flexible, and we all have
the ability to reformulate our sensitivity according to new experiences.

Effective Communication Process

An effective communication process provides the ability to influence others and their perceptions both
in the workplace and in the greater community.

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Benefits of Effective Communication

There are several benefits that effective workplace communication provides an organization. These
benefits include:

- Mitigated conflict: Effective workplace communication can help reduce conflict or tension at work.
Most conflicts arise due to ineffective communication tactics which lead to individuals
misunderstanding what's being communicated. Misunderstandings can result in employees or other
members of an organization feeling not understood, disrespected, disregarded or simply not
performing in an expected manner.
- Increased employee engagement- Effective communication does more than just ensure information
is accurately received. It also works to connect others and keep open lines of communication
between employees and other members of the organization. This ultimately works to create better
engagement between employees, which can lead to increased employee satisfaction and healthier
company culture.
- Improved productivity: Employees who feel connected to their work and have a clear
understanding of what's expected of them are more likely to be productive and perform efficiently.
When employees don't understand their role or expectations in a position or have limited resources
to perform their duties, they often feel confused or as if they aren't able to perform their job to the
best of their ability. Ensuring information is readily available and communicated in an effective
manner allows employees to accurately perform their duties and can increase productivity
throughout the organization.
- Improved client relations: Good communication in the workplace isn't just relevant to employees of
the organization. Effective communication also directly affects client relations. Organizations that
communicate well with their customers or clients are more likely to build solid relationships and
retain clients versus companies that don't prioritize client communication. Customers look for
companies that value their relationship and keep them up-to-date on changes and are more loyal
when they feel connected to these companies.
- Healthy workplace culture: Effective communication plays an important part in maintaining a
healthy workplace culture. Many workplaces employ people of all different cultures, races and
beliefs, and conflict will naturally arise when so many differences are present. A culture of open
communication fosters a healthy and accepting environment where all employees feel equal and
understood.
- Improved direction for employees: Open communication in the workplace ensures employees
understand their part in the company and have a clear direction in terms of what's expected of
them. This empowers employees to take the appropriate steps needed to complete their duties and
contribute to the organization as a whole.
- Boosted employee job satisfaction: Employees who are part of an organization that practices good
communication in the workplace are more likely to experience increased job satisfaction. A

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 transparent and trustworthy environment supports employee satisfaction by creating a harmonious
workplace that is enjoyable to work in and keeps employees engaged in their positions.
- Increased innovation: Workplaces that encourage employees to communicate their opinions and
ideas tend to foster more innovation than those that don't. Employees who feel empowered to
speak up and think in different ways often contribute meaningful ideas and strategies that help not
only the employees but the organization as a whole.
- Strengthened team building: In order to work effectively together, team members must know they
can trust the other members of their team. Communication is a major component of trust and
ensures everyone is of the same understanding in terms of the expectations and duties of the team.
Clear guidelines that are communicated effectively help team members know how to behave as part
of the team and ultimately bring team members closer to each other for a more synchronized work
effort.
- Improved public impression: Companies that have a good reputation in terms of communicating
both internally and with clients often have a strong and positive public impression. This helps attract
talent to the company and can even increase interest from investors and banks

Formal communication network/ Communication routes within a business

Business communication is a critical aspect of any organization and employees should be able to share
their ideas or suggestions in a coherent and precise manner. Effective communication within an
organization provides a multitude of benefits for the business and its employees. This blog explains the
communication flow within a business and the types of business communication.

- Upward communication - Upward communication refers to a form of communication in which the

flow of information takes place from employees to supervisors, managers or directors. This is usually
done to inform the superiors about the status of work. An example is the weekly status report sent
by a marketing associate to the marketing director.
- Downward communication - In this communication route, messages and information flow down
through a business’s formal hierarchical structure. An example is the weekly tasks assigned by a
marketing director to a marketing associate.
- Horizontal communication - This communication route refers to the exchange of information taking
place between employees on same level of the organizational hierarchy. An example is the sharing
of information between a marketing associate and a social media associate for completing a shared
project.

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Nature of Communication: Formal/ Informal/ Somewhere in Between

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 Verbal Communication: Verbal communication is
perhaps the most obvious and understood mode of
communication, and it is certainly a powerful tool in
your communication toolbox. Put simply, verbal
communication is the sharing of information
between two individuals using words.

- Spoken versus Written Communication: Oral

Communication is the oldest means of
communication, which is most commonly used as
a medium for the exchange of information. It
involves gathering or disseminating information
through spoken words. Written Communication,
on the other hand, is a formal means of
communication, wherein message is carefully
drafted and formulated in written form. It is kept
as a source of reference or legal record.
- Formal versus Informal: We generally use spoken communication informally while we use written
communication formally.

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 Formal Communication: Also termed as official communication, it is a type of communication in
which the sender follows a pre-defined channel to transmit the information to the receiver is known
as formal communication

Informal Communication: Most commonly known as grapevine, the type of communication in which
the sender does not follow any pre-defined channels to transmit the information is known as
informal communication.

- Synchronous versus Asynchronous: Synchronous communication is communication that takes place

in real time, such as a conversation with a friend. In contrast, asynchronous communication is
communication that is not immediate and occurs over longer periods of time, such as letters, email,
or even text messages.

Synchronous communication happens in real time, where at least two individuals are exchanging
information, at the same time with each other. This type of communication can be virtual as well,
either scheduled or a little more impromptu. Examples of synchronous communication: In-person
meeting, Phone call, Video conference (i.e., via Zoom, WebEx, Slack, etc), Asking the teammate
across your desk a quick question, Coffee break conversations.

Asynchronous communication is communication that has a lag between when a message is sent and
when the person receiving it interprets it. This type of communication isn’t generally conducted in
person, nor is it planned for or scheduled. Examples of asynchronous communication: Email, Letters
or direct mail, Project management tools, Text messaging, Direct messaging, Video recordings (i.e.,
via Loom, Vidyard, CloudApp, Drift Video, etc), Asynchronous meetings, Notes and action items in a
Shared stream

- Recorded versus Unrecorded: Written communication is generally archived and recorded for later
retrieval while spoken communication is generally not recorded.

Key Differences between Verbal and Nonverbal Communication

The following points explain the difference between verbal and non-verbal communication in detail:

- The use of words in communication is Verbal communication. The communication which is based on
signs, not on words is Non-verbal communication.
- There are very fewer chances of confusion in verbal communication between the sender and
receiver. Conversely, the chances of misunderstanding and confusion in non-verbal communication
are very much as the use of language is not done.
- In verbal communication, the interchange of the message is very fast which leads to rapid feedback.
In opposition to this, the non-verbal communication is based more on understanding which takes
time and hence it is comparatively slow.
- In verbal communication, the presence of both the parties at the place of communication is not
necessary, as it can also be done if the parties are at different locations. On the other hand, for an
effective non-verbal communication, both the parties must be there, at the time of communication.

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- In verbal communication, the documentary evidence is maintained if the communication is formal
or written. But, there is no conclusive evidence in case of non-verbal communication.
- Verbal communication fulfils the most natural desire of humans – talk. In the case of Non-verbal
communication, feelings, status, emotions, personality, etc are very easily communicated, through
the acts done by the parties to the communication.

Nature/Characteristics of Business Message

Business messages are part of business communication held between professionals and clients.
Discussion with peers, meetings with top executives require face to face interaction but sometimes due
to non-availability, a need for dropping a message is felt to communicate the urgency of a scheduled
meeting. That message should have the characteristics to make the intended person believe that the
upcoming meeting or interaction is important.

1. Provide practical information: Business messages usually describe how to do something, explain why
a procedure was changed, highlight the cause of a problem or a possible solution, discuss the status of a
project, or explain why a new piece of equipment should be purchased.

2. Give facts rather than impression: Business messages use concrete language and specific details.
Information must be clear, convincing, accurate and ethical. You must present hard evidence (not just
opinion) and present all sides of an argument before you commit to a conclusion.

3. Clarify and condense information: Business messages frequently use tables, charts, photos, or
diagrams to clarify or condense information, to explain a process, or to emphasize important
information.

4. State precise responsibilities: Business messages are directed to a specific audience. Therefore, you
must clearly state what is expected of, or what you can do for, that particular audience.

5. Persuade others and offer recommendations: Business messages frequently persuade employers,
customers, or clients to purchase a product or service or adopt a plan of action. To be effective,
persuasive messages must show readers just how a product, service or idea will benefit them
specifically.

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