INTRODUCTION TO BUSINESS COMMUNICATION

Meaning, Elements and Features

What is communication?

Meaning of communication- The word communication has been derived from

the Latin word communis, which means to share or participate. Thus,
communication stands for sharing or transmission of information, an idea, an
opinion, an emotion, a fact or an attitude. It includes both, the act of
communicating as well as the message to be communicated.
Attempts have been made by different authors to define communication. A few
are enumerated below:

“Communication means to share in, to give to another, or the

interchange of thoughts, opinions or information.” Webster

“Communication is an exchange of facts, ideas, opinions, or emotions

by two or more persons.” W.H. Newman and C.F. Summer Jr.

“Communication in its simplest form is conveying of information from

one person to another.” Hudson

“Communication is the process of passing information and

understanding from one person to another.” Keith Davis

“Communication is a continuing and thinking process dealing with the

transmission and interchange with understanding of ideas, facts and courses
of action.” George R. Terry

“Communication is the transmission of information, ideas, emotions,

skills, etc. by the use of symbols, words, pictures, figures, graphs, etc. It is the
act or process of transformation that is usually called
communication.” Berelso and Steiner

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Introducing Business Communication
As communication is the process of transmitting information and understanding from one
person to another or from one unit to other unit to get the desired response from the receiver,
it is through this process that we can achieve the desired effect in the behaviour of another
person or another unit.

Communication is thus important both in social and in professional settings. In the corporate
world, communication enables a two-way channel for transmitting ideas, feelings, plans,
commands, instructions, reports and suggestions that influence the attitude towards an
organisation’s objectives. The communicator’s goal is to convey the meanings or ideas without
distortion. And in this sense, communication is important as

Success of the leader and the enterprise depends upon adequacy of communication.
It is the responsibility of the managers to establish and maintain the channels whereby they can
convey their own thinking and policies to the subordinates and can receive their reactions and
an account of their problems.

In their book “Business Communication Today” C. L. Bovee, J. V. Thill and B. E. Schatzman write:
“Communication is the process of sending and receiving messages. However, communication is
effective only when the message is understood and when it stimulates action or encourages
the receiver to think in new ways.”

While communication made among persons to convey their personal information, message or
thought refers more to personal communication, exchange of information, facts and ideas
relating to business may be termed as Business Communication. It is a process through which
information, facts, ideas, orders, advices, decisions, etc. are conveyed, sent or exchanged
between/among the persons associated with business.

Business Communication refers to the communication relating to business activity which means
providing goods and services to the consumers with a view to earning profit.

The success of a business enterprise depends largely upon good communication. Effective
communication wipes out the hindrances in achieving the target of a business enterprise.
Ineffective communication or communication failure may cause loss of money, time, energy,
opportunity and even goodwill of a business.

In this age of globalisation every business enterprise, big or small, requires proper
communication for its existence. The success of any business concern largely depends upon
successful communication.

In this age of speed, complexity and competition, sending of information regarding the product
to the ultimate consumer is very important. Unless they know about the product of the business
enterprise, it is not possible for them to make contact and buy the product. Communication
plays a vital role in this sphere.
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 Elements of Business Communication:
Business communication involves six basic elements. They are as follows:

1. Message:

This is the subject-matter which is transmitted or passed by the sender to the other party or
group of persons. This might be opinion, order, suggestion, attitude, feeling, view, etc.

2. Sender:

He/she is the person who intends to make contact for passing information and understanding to
other person.

3. Receiver:

The person to whom the message is meant for is known as receiver or communicator.

4. Channels:

Information is transmitted through certain channels (e.g., radio, television, telephone, letter, e-
mail, etc.). The media is selected by the sender considering various factors.

5. Symbols:

These are the words, actions and signs which are passed on by the sender while communicating
with the receiver.

6. Feedback:

When the receiver acknowledges the message of the sender and responds back to him/her,
feedback takes place. Without feedback communication is incomplete.

 What do you think is missing in the following diagrams? Draw a diagram describing the
interaction of these elements in the process of communication.

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 Features of Business Communication:

Business Communication has certain features or characteristics which enable us to

distinguish it from other communication.
To become business communication, a communication must be:

1. Practical:

Effective business communication deals with the practical aspect of the

information explaining why, how, when and the like queries. It avoids
impractical, imaginary, unnecessary or repetitive information to eliminate waste of
time. It conveys important information to the receiver.

2. Factual:

In general, a business message contains facts and figures in place of overall idea.
Important date, place, time, etc. should be clearly mentioned in a business
communication.

3. Clear and Brief:

The language used in business communication should be simple, clear, brief and
without ambiguity. Sometimes charts, photographs, diagrams, etc. are used to
condense or clarify the information.

4. Target-Oriented:

A business communication must have a specific objective and must be planned

properly so that the objective can be achieved.

5. Persuasive:

Business communication often plays a persuasive role. It persuades an employee to

perform his/her duties, a customer to buy a product or service etc. The basic
characteristics mentioned above are related to the message or information of the
communication.

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 CHARACTERISTICS OF BUSINESS COMMUNICATION PROCESS
The process of Business Communication has certain other characteristics.

1. Integral Part of Management Process:

Communication encompasses those activities by which the ideas, opinions and decisions of the
managers are conveyed to the subordinates of different ranks. It also involves the exchange of
facts, feelings, suggestions and responses between the superiors and subordinates.

Communication, in this way, puts the people into action, guides and directs their activities,
regulates and co-ordinates them for proper work performance. A manager, thus, performs the
management functions through communication and managerial positions become the
communication centres to receive information from various sources for its transmission to
relevant points.

2. Two-Way Traffic:

Communication does not only mean its downward movement from superior to the subordinates
it implies both the transmission and reception. So, when conveying any information, a manager
should know its reactions and responses. Otherwise, managerial task of guiding and directing
will be ineffective.

A man should, thus, not only speak, inform and order, but should also be able to listen, answer
and interpret. Communication, therefore, involves two-way traffic from the managers to the
employees and from the employees to the managers. It is not complete unless the message has
been correctly understood by the receiver and its response becomes known to the sender.

3. Mutual Understanding:

The basic purpose of business communication is to bring about understanding between

individuals in the organisation. It is an important element for establishing human relationships.
A leader can lead and a manager can direct effectively by establishing perfect understanding
with the subordinates, peers and superiors in the organisation.

The greater the degree of understanding presents in the communication the more possibility
that human action will proceed in the direction of accomplishing the goals.

4. Pervasive:

The subject-matter of business communication covers a wide range and extends to all
functions—purchases, production, sales, finance, recruitment, wages, dividends, market
standing, innovation, productivity, etc. It also moves through all levels of management—
upward, downward and sideways. Business communication is, thus, said to be a pervasive
function.

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5. Continuity:

Communication is an ever-present activity and without it an organisation cannot exist. Communication

is as necessary to an organisation as blood circulation in a living body. Therefore, the managers should
ensure that adequate and smooth communication flows in all directions.

Breakdown of communication results in misunderstanding, creation of unfavorable attitudes, hostility

and conflict. So, communication must be a continuous process and move up, down and sideways for
active participation of all concerned.

6. Specific:

A business communication is generally specific in nature. It means that a particular communication

should deal with a single subject at a time. This is necessary for the effectiveness of communication.
Multiplicity of subject in a communication has the possibility of creating confusion which is dangerous
to sound management. It must be specific with regard to the information intended to be conveyed or
received.

7. Result and not Cause:

Sound communication is the result of competent management, not the cause of it. Business
communication is a means to an end and acts as a tool in the hands of the managers. Successful handling
of this tool depends upon the competence of the managers. It is not an independent activity, rather an
essential ingredient of managerial function.

So, good communication does not produce good manager. But good manager is nearly always a good
communicator. Misconception of management process often leads to poor communication.

8. Internal and External:

Business communication is primarily internal. It is, thus, a part of administrative function and intended to
apply to the members belonging to an organisation. Orders, instructions, suggestions and even public
notice announcing the annual general meeting of a company are some of the examples of internal
communication.

But nowadays, many communications move beyond the organisational horizons and touch the outside
population exceeding the organisation’s own (e.g., advertisement). Business communication may thus be
internal and external.

9. Different Types:

Business communication may be of different types—formal, informal, upward, downward, sidewise,

written, oral, etc.

10. Feedback:

A communication cannot be complete unless and until feedback or response of the recipient is made.
Feedback may be written, oral or gestural. Sometimes mere silence may also constitute a feedback.

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 Levels of Business Communication:
Levels of business communication may be determined on the basis of direction of communication and
the ranks or positions of the persons with whom communication is being made.

It may be classified as (i) Lower Level Communication; (ii) Upper Level Communication; and (iii) Horizontal
or Side-wise or Lateral Communication.

1. Lower Level Communication:

When information flows from the persons occupying higher positions to those at lower levels, it is called
‘Lower Level Communication’. It is usually conveyed through oral or written orders, reports, manuals, etc.
and is the most common practice in all business organisations.

In an organisation, people at lower levels have a high degree of loyalty, faith, respect and sometimes a
mixed feelings of fear and obedience towards the people of higher levels. This leads to high degree of
acceptance of the communication.

In the lower level communication there is a possibility of distortion of information through gossip or
‘grapevine’ communication. In such a case the ultimate objective of communication is lost. So, care
should be taken to send the information, message or order and receive feedback without any loss,
alteration or distortion of information.

2. Upper Level Communication:

When communication moves upward from the subordinates to the superiors, it is called ‘Upper Level
Communication’. The means of upper level communication includes the submission of reports and
suggestion, opinions and attitudes, complaints and grievances, etc.

The upper level employees can understand the pulse of the lower level employees through such
communication. But, it is less common because it is less favoured by the top managers due to its
troublesome and perplexing nature.

The effectiveness of such communication depends upon good superior-subordinate relationship and
intention of the superiors to remove the grievances and honour the emotions of the subordinates. The
subordinates should also be co-operative and avoid unnecessary criticism, fault-finding attitude,
complaining for fake or baseless grievances, etc.

3. Horizontal or Side-Wise or Lateral Communication:

‘Horizontal or Sidewise or Lateral Communication’ takes place between the people of same level in the
positional hierarchy of the organisation through oral or written method. Communication between the
employees or supervisors or managers of the same department or another department is examples of
horizontal or lateral communication. It helps to promote understanding and co-ordination in the
organisation. It is especially important in large or decentralised organisation.

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 Importance of Business Communication:

Business communication is increasing in significance and the business world of today cannot move
smoothly without the help of communication. It makes a business enterprise dynamic and increases
its efficiency. It can be used as a device for controlling the business activities to ensure the
achievement of organisational goals.

The significance of business communication may be stated point- wise as follows:

1. Movement of Information - Communication helps to move information from one place to

another and from one person to another. It develops a chain of understanding among the workers of
different levels in a business enterprise.

2. Efficient and Smooth Running of Enterprise - The smooth and efficient functioning of an
enterprise entirely depends upon the effectiveness of the system of communication. It provides the
basis of direction and actuates people to action in accordance with the desires of the management
authority. According to G. R. Terry: “Communication serves as the lubricant fostering the smooth
operation of the management process.”

3. Promotion of Management Efficiency - Communication encircles all the functions of business

management. So, without it, no function of business management can proceed towards its desired
goal. It is the tool of managerial efficiency. The managerial efficiency depends upon getting things
done through other people by making them know and understand what the manager wants them to
do. It is the work of communication to keep the employees informed of everything necessary for
smooth work performance.

4. Proper Planning - Communication is very helpful in planning the activities of business. It provides
the managers information and ideas necessary for sound planning. According to Theo Haimann “Only

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through good communication can company policies and practices be formulated and administered.”
Secrecy of information creates suspicion among the workers and separates them. Understanding of
the common problems unites them for showing a better record of their performance.

5. Basis of Decision-Making - Communication helps the managers to take essential decisions and
conduct vital operations. The quality of decisions made in an organisation entirely depends on the
volume and quality of information available to the management authority. In the absence of
effective communication, it may not be possible for top management personnel to come in closer
contact with their subordinates.

6. Basis of Co-Operation - By promoting mutual understanding and meeting of minds,

communication paves the way for co-operation. Communication creates condition for mental
acceptance of the work before its actual performance. This mental acceptance is the will- to-do
before actually doing it. Communication involves understanding and willing acceptance of orders and
instructions and acts as the basis for individual and co-operative efforts.

7. Means of Co-Ordination - Co-ordination implies orderly group efforts to provide unity of action.
This unity of action is the result of team work which, in turn, depends, to a great extent, upon clear
understanding of the organisational goals, the mode of their achievement and situation of the work.
The function of the business communication is to get the workers fully informed of everything
relating to the work and bring a perfectly tuned harmony in their work.

8. Job Satisfaction - Proper communication system extends mutual trust and faith. It thus creates
confidence in the ability of their manager, promotes their loyalty to the enterprise and stimulates
their job interest. Proper communication system enables the subordinates to bring to the notice of
the managers their viewpoints, grievances and troubles. This facility raises the morale of the workers
and, ultimately, leads to job satisfaction for high performance.

9. Establishment of Public Relations - A business enterprise comes into contact with several
social groups, e.g., customers, investors, trade unions, government and the local commu-nity. It
must maintain cordial relations with each of these groups to develop a favourable image. It must
continuously strive to convince the public in general that its actions are taken in the interest of the
society. No public relation can be established without communication.

10. Establishment of Effective Leadership - Effective leadership is established through

communication. The ideas, orders, instructions, direction, etc., of the leader or manager is
transmitted to the subordinate employees through communication. The manager can influence
them and create a healthy relation by wiping out misunderstanding and distrust between
management authority and subordinates through communication.

11. Assisting Motivation - Communication creates motivation. Through it the managers and
employees are well-acquainted with the latest information relating to the organisation. This leads to
avoidance of hostility, acceptance of reality, change of attitude, consciousness of responsibility
and—ultimately—motivation to work.

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12. Loyalty - The confidence and loyalty of the lower employees on the management personnel
increases as they become aware of the competence of efficiency of their boss through
communication. It helps to strengthen mutual trust.

13. Accomplishment of Goals - Communication fulfills the organisational objectives through co-
operation and co-ordination among the managerial and working staff. Inter-connections between
the managers and subordinate employees are established through effective communication system.

14. Industrial Peace - Workers’ unrest is a problem today. It is communication which can establish
peace in the industry. Two-way communication helps to develop mutual co-operation and
understanding. Through downward communication the management personnel send their orders,
instructions, directions, etc. to the subordinates. On the other hand, the upward communication
helps the subordinates to convey to their superiors their demands, grievances, complaints,
suggestions, etc. Thus, through communication of facts and information between the superiors and
subordinates, industrial peace can be established.

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