BUSSINESS COMMUNICATION

Communication is the process of transforming material, information, point of view from one person to another. When the
transfer of material, information point of view is from one part/member of the organization to other it is called business
communication.in the other word communication is the process by which sender (writer/encoder/ speaker) influence
receiver (reader /decoder / listener) to act according to his desire. Communication can be in the form of order, inquiry,
reply, reminder, instruction, notice, request etc. Communication need medium like letter, fax, telegram, email, SMS,
MMS, TV, radio, phone, book, newspaper, etc.
FACTORS/ ELEMENTS / PROCCESS/FLOW CAHART OF COMMUNICATION
SENDER The process of communication starts with sender. He can be speaker or writer. He is also called encoder. He is
the person who wants to send the idea. Sender faces many problems for example message he wants to send is different
form the message he actual sends. Many times the response of receiver is different from his intention.
MESSAGE The message is the idea or information sender wants to send. Message can be in form of order inquiry, reply,
reminder, instruction, notice, request etc. The process of making a message is called encoding. A sender must follow
principals of effective writing while making a massage. It will make communication successful.
MEDIUM Communication cannot take place without medium. A medium is the way of transferring idea or information
from one person to another. There are two types of medium.
ELECTRONIC MEDIUMS Electronic mediums are modern and require electricity to run. For example,
TV, radio, fax, email, SMS, MMS, etc.
NON ELECTRONIC MEDIUM Non electronic medium are old and do not required electricity to run for
example letter, newspaper, boards, magazines etc.
NOISE AND BARRIERS Noise and barrier breaks the flow of communication and makes communication unsuccessful.
There are physical noises like cars, aero plane, generators, ac, human shouting etc. There are psychological barriers like
lack of trust, concentration or interest difference between background and language of sender & receiver.
RECEIVER The process of communication ends with receiver. He can be listener or reader. He is also called decoder.
He is the person who receives the idea. Receiver faces many problems for example his background, education, age,
culture, belief system, family setup, point of view etc are different from sender so he will never get 100% information
from sender.
FEEDBACK Feedback is the response of receiver to sender. If feedback is according to intention of sender
communication is successful. If feedback is not all to intention of sender communication is not successful.
PLAINNING AND STEPS FOR COMMUNICATIONS
AIM OF COMMUNICATION A sender must understand the aim of communication. It is the first step of planning. The
aim or goal of communication can be sale, goodwill, problem solving, request, inquiry, give information, instruction,
reminder, refusal, interview, persuasion etc.
UNDERSTANDING THE RECEIVER A sender must understand his receivers. He must research their ages, genders,
nationalities, cultures, educations, marital status, employment status, point of views, expectations, desires, education
backgrounds etc. Sender design the message according to receiver.
THE IDEA Now sender knows the aim and receiver. Same message can be communicated in many different ways. He
must choose idea according to aim and receivers of communication. A good idea can make communication successful and
powerful. On the other hand, a bad idea can create misunderstanding and destroy goodwill.
FACTS AND FIGURES We live in a century of information. People do not pay attention if there are no facts and
figures. These facts and figures make communication very effective and authentic. Unfortunately, internet is full of
inaccurate facts and figure. A sender must double check all the facts and figure before using them.
ORAGANISE THE MESSAGE A good research on receiver and facts will not be effective if message is not properly
organized. An organize message must have clear start, middle and end. Unorganized message waste time, money, destroy
reputation and creates misunderstanding.
REVISION After all the five steps a sender must do revision. We human forget most important thing all the time.
Revision is the way by which you will never forget any important thing.
7CS /THE GOLDEN PRINCIPALS OF WRITING/ EFFECTIVE COMMUNICATION/HOW TO BE
EFFECTIVE WRITTER/CHARACTERSTICS OF GOOD WRITING

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COMPLETENESS A message must be complete in every way. Incomplete messages waste time, money. It also has
negative effect on goodwill. Following are the guidelines for completeness.
Think like receiver.
Understand the receiver.
Try to answer all the question of receiver.
CLEARITY A message must be clear. If it is not clear it can create misunderstanding and does not bring desire results.
Following are the guidelines for the clarity.
Pay attention on punctuation (commas, full stop, inverted commas etc.).
Use conversational words.
Avoid double meaning words.
Use graph, diagram, or audio visual aids.
CORRECTNESS A message must be correct. An incorrect message is very bad for sender’s reputation. It can destroy
trust between the parties. Following are guidelines for the correctness.
Always double check all the facts and figure.
Pay attention on spelling and grammar.
CONISENESS We live in a very busy world. Nobody has time to read lengthy messages. Conciseness means delivering
complete message in fewest possible words. Conciseness does not mean sacrifice clarity and completeness. Message must
be clear and complete with small length. Following are the guidelines for the conciseness.
Avoid old and outdated statement.
Include only relevant information.
Organize the message.
Avoid repetitions.
CONCRETENESS Concreteness means message should be vivid or specific. It should not be vague or general.
Concreteness message creates a good relationship. Following are the guidelines for the concreteness.
Use specific words.
Use specific facts and figure.
CONSIDERATION Consideration means “you” attitude not “I” attitude. Receiver must feel that he is the center of
focus. For example, never say “we have passed the loan” always say “your loan has been passed”. Following are the
guidelines for the concreteness.
Use you/your instead of I/we.
Use active sentences instead of passive sentences.
COURTESY A message must be courteous. Courtesy creates good relationship. Golden rule of courtesy is to do to others
as you are wish to be done. Following are the guidelines for the courtesy.
Always be honest and truthful.
Say sorry when you are wrong.
Be humble and gentle.
CHANNELS OF COMMUNICATIONS
Channels of communications are ways in which information pass from one part of the organization to another part.
Following are the types of channels of communications.
INTERNATL COMMUNICAION Internal communication or intercommunication is the way in which communication
flows from one part to the organization to another part within the organization. It can take places between superiors,
subordinates or between superiors and subordinates. Following are the types of internal communication.
HORIZONTAL COMMUNICATION When information passes from one department to another
department it is called horizontal communication. This is type of communication is very useful for the effective working
of organization. If horizontal communication fails departments will not be able to coordinate with each other.
VERTICAL COMMUNICATION When information passes from superiors to subordinates or from
subordinates to superiors it is called vertical communication. This is type of communication is very useful for the effective
working of organization. If vertical communication fails superiors will not be able to guide or motivate and subordinates
will not be able to report. Following are the types of vertical communication.
DOWNDWARD COMMUNICATION When information passes from superiors to
subordinates in the same department it is call downward communication. It usually includes rules, regulations, guidelines,
orders, advices, policies, procedure, notice of meetings, details of salary, promotions, retirements, rights and obligation.
Downward communication must be effective for proper organization of work. Downward channel is used by superiors to
motivate subordinates.

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 UPWARD COMMUNICATION When information passes from subordinates to
superiors in the same department it is call upward communication. It usually includes reports, appeals, request, questions,
queries, problems etc. Upward communication must be effective for good subordinates to superior’s relation.
EXTERNAL COMMUNICATION External communication or intercommunication is the way in which communication
flows from organization to the outside world. External communication take place with customer, government, tax
authorities, supplies, banks etc. External communication can be in the form of letters, reports, proposal etc. It is important
for goodwill, create new customers and overall working of organization.
FORMAL INFORMAL
Formal communication is the exchange of Informal communication is the exchange of information which does
information through pre determine channel. not follow any pre determine channel.
Formal communication is very reliable. Informal communication is not very reliable.
In formal communication exchange of In informal communication exchange of information does not take lot
information takes lot of time. of time.
Formal communication is also known as Formal communication is also known as grapevine communication.
official communication.
In formal communication lot of In informal communication documentation is involved.
documentation is involve for evidence.
In formal communication full secrecy is In informal communication no secrecy is maintained.
maintained.
Formal communication does not include any Informal communication includes lot of rumors.
rumors.

In formal communication slang words cannot In informal communication slang words can be used.
be used.

In formal communication all purpose, general In formal communication all purpose, general or vague words are
or vague words are avoided. commonly used.

IMPORTANCE OF BUSINESS COMUNICATION OR BUSINESS COMUNICATION IS LIFE BLOOD OF

ORGANIZATON OR ROLE OF BUSINESS COMUNICATION INSIDE AND OUTSIDE THE
ORGAMIZATION
Following are importance of business communication.
INSIDE AN ORGANIZTION Following are importance of communication inside an organization.
GOALS AND OBJECTIVES Every organization has many goals and objectives. These goals can be increase of sale,
customer satisfaction, decreasing cost of production, introduction of new product etc. Communication is very important
for clear understanding of these goals. Without communication all members of organization cannot work as team.
DECISION MAKING Decision making is important part of organization. Implementation of decision is more important
than decision making. It requires good communication. Without communication decision cannot bring successful results.
CORDINATION Organization is made up of different departments and each department has its own goals. Department
goals must be unified with overall goals of organization. This unification is called coordination. In large organization it is
more difficult and necessary. Communication is the best way of developing coordination.
EMPLOYMER AND EMPLOYEE RELATIONSHIP Employer gives orders and instructions to employees. He also
defines their duties, procedures, rules, regulations etc. Employees give reports to employer. They also file complains
about working environment. This type of relationship is not possible without communication.
OUTSIDE AN ORGANIZTION Following are importance of communication outside an organization.
HUMAN RESOURCE When organization needs more man power, it gives advertisement, takes interview of candidates,
select best candidates, recruit them, train them, promotes them and ultimately they will be separated from organization.
All these HR activities require communication.
DEALING WITH CUSTOMERS Organization deals with customers. It persuades customers to buy goods and services.
It makes customers loyal by taking feedback. It solves customer’s problems by customer care. All these activities are not
possible without communication.

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CREDITORS Organization needs creditors. These are creditors are supplier, banks, financial institutes and general
public. Negotiations with creditors require communication.
INVESTORS There are 3 types of ownership of organization A) sole proprietor B) partnership and C) company. Both
partnership and company needs investors. In order to persuade investors communication is necessary.
GOVERNMENT Every organization works under government. It has to follow all the laws, rules and regulations made
by government. Communication is important for understanding and interpretation of tax laws, environmental laws and
even international law.
IMPORTANCE OF BUSINESS COMMUNICATION FOR INDIVIDUAL
Following are the importance of business communication for individuals.
JOB OPPORTUNITIES We live in a very competitive world. Job opportunities are very limited. In order to get desire
job an individual must prove that he is unique and talented. Without good communication even a talented individual
cannot get better job.
SOCIAL RELATIONSHIPS Humans are social animals. We live in groups called family or society. An individual plays
many roles in his life like father, mother, brother, sister, husband, wife, friend, son, daughter etc. all these roles have
duties and rights. An individual must be good communicator to perform all these rules.
JOB PROMOTION Promotion in job depends upon how employee performs his duties, how he works with others and
how he follows instructions. All these activities require communication. Without communication promotion in job is not
possible.
OTHER SITUATIONS Individuals face many problems in life. It has been observed that good communicators can solve
these problems better. Any kind of hostile situation can be handled without violence if individual is good in
communication. It also helps in legal matters. It also makes individual popular among friends and family.
OPENING PARAGRAPH
Following are the guide lines for good opening paragraph.
First paragraph must be short. It must be 5 to 6 lines long (17 to 25 words).
First paragraph must be positive. It must focus on pleasant aspect of massage.
First paragraph must contain buffer statement for negative massages. It is not good to give bad news in first paragraph.
First paragraph must answer all the WHs i.e. what, when, where, which, how and why.
First paragraph must avoid repeating. It wastes time and creates bad reputation.
First paragraph must get attention of reader especially in case of persuasive massages.
First paragraph must use familiar, short and conversational words.
First paragraph must be written with receiver in mind.
First paragraph must not be clichéd.
First paragraph must give clear idea about the subject matter of massage.
CLOSING PARAGRAPH
Following are the guide lines for good closing paragraph.
Last paragraph must ask for expected action from receiver.
Last paragraph must contain contact number of sender.
Last paragraph must be positive and friendly. If last paragraph is not friendly, it will damage goodwill and relationship
with receiver.
Last paragraph must not contain thanks in advance.
If there is a pamphlet, booklet, diagram, brochure, templates, CDs etc are attach with the letter, the last paragraph must
mention it.
Last paragraph must contain personal touch in special situations.
Last paragraph must not include outdated phrases like enclosed herewith, as soon as possible, I remain obediently,
thanking you, thanking you in anticipation etc.
Last paragraph must match the tone of entire letter.
Last paragraph must not be clichéd.
Last paragraph must not be lengthy.
MARKET REPORT
A market report is a written document that provides details of all the transactions of a particular market during particular
time periods. Market report contains the name of the market, date, opening rates, closing rates, all the transactions of the
day, summary and forecast. It is a type of business report. It is one of the most important report. There are many types of
market for example oil, cotton, paper, rubber, gold, tin, copper, silver, tea, coffee etc.

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 IMPORTANCE/ADVANTAGES OF MARKET REPORT
Market report shows the volume of all the transactions in a particular market.
Market report provides information about opening rates and closing rates.
Market report helps in making decisions about purchase, sell or ho0dl of stock.
Market report helps businessman to adjust their plans according to changing environment
Market report helps in predicting future price.
Market report helps in decision making.
Market report is medium of advertisement for the company.
Market report provides lot of material for learning.
Market report helps in research.
Market report helps in making investments.
Market report helps businessman in understanding the market.
Market report gives information about economic growth of country.
Market report helps in learning technical language.
Market report provides learning material for business students.
Market report can affect demand and supply of stock.

PARTS OF MARKET REPORT

REFERENCE Reference gives reader information about type of market, city or country of market and date on which
report was made for example: This report is taken from London oil market on 14 Feb.
MEANINGS OF DIFFICULT WORDS This part of market report gives meaning of difficult words which are used in
the report. It also gives full forms of abbreviations used in report.
TENDENCY OF MARKET This part of market report tells reader about tendency of market. For example: The London
oil market showed a downward slope of oil prices.
GOVERNING FACTORS In this part of market report experts try to point out factors due to which market shows
upward or downward trend.
EXPLANATION This part of market gives complete explanation of all activities of a particular market during particular
market during particular day. This is the lengthiest part of repot and gives lot of information.
RATES In this part of market report opening and closing rates are given.
SUMMARY In this part explanation is summarized into small paragraph. It is very helpful for quick reading and future
referencing.
FORECAST In this part of market report experts try to predict prices of future.

BASIC ORGANIZATION PLAN FOR MESSAGE

In writing business messages like reports, letters, memos etc. writer can select. Direct (Deductive) approach for good
news and direct request. Indirect (Inductive) approach for bad news and persuasive requests.
GOOD NEWS A message that contains good news must have following parts.
BEST NEWS Using direct (deductive) approach we will give good news in the first paragraph.
EXPLANATION In the second paragraph explanation of good news is given for example if a person has
been hired for a job, explanation includes salary, office timing and other rules and regulations for sales promotion material
can also be included in this paragraph.
POSITIVE FRIENDLY CLOSE Good news messages must be ended with positive friendly close. If there
is anything that sender mentions it clearly for example a person salary has been raised and management want him to be
more effective, it should be mentioned in last paragraph.
DIRECT REQUEST Direct request messages have following parts.
MAIN IDEA According to direct approach the request must be written clearly in first paragraph.
EXPLANATION In the second paragraph explanation of the request must be given. Explanation must be
clear otherwise reader will not be able to full fill the request some questions, a checklist or instruction can be given in
explanation.

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 COURTEOUS CLOSE Direct request message must have friendly close appreciation to the reader should
be given in last paragraph. Proper deadline must be mention if request is urgent.
BAD NEWS Bad news message has following parts.
BUFFER Bad news messages are written according to inductive approach. It means writer must not give
bad news in first paragraph. First paragraph buffer is used. Buffer is neutral statement for example if a person has been
fired buffer statement will be as you know our economy is facing a recession period due to which unemployment is
raising.
EXAPLATION In the second paragraph writer try to mentally prepare reader for the bad news.
Explanation of the bad new helps reader to understand why this decision have been made.
DECISION After buffer and explanation bad news is given while writing bad news writer must clearly
express the news but tactfully.
POSITIVE FRIENDLY CLOSE It is a very important to close bad news message with positive friendly
close writer should appreciate the reader offer some helps for future gives some material that will help reader.
PERSUASIVE REQUEST For persuasive request like sales letter inductive approach is used. Following steps are
taken in writing persuasive request.
ATTENTION First paragraph of sales letter must attract attention of reader to gain attention of reader
writer can include a short story some fact and figures., quotations of important personalities etc.
INTEREST In the second paragraph writer try to crate interest for the reader. Details and descripti9on of
goods and services can make reader interested.
DESIRE In this part of message writer try to put desire in the heart of reader.
ACTION In the last part writer should expressly show what he wants from reader. For example, visit our
nearest shop.
BARRIERS TO COMMUNICATION
Barriers to communications are the reasons of failure of communication. It is the cause of wastage of money, time and
badly affect business relations. Following are the barriers to communication.
PHYSICAL NOISES Physical noises disturb the process of communication. Physical noises include loud music, car
horns, generators, air plane, people talking etc. these noises can be reduced.
PSYCHOLOGICAL BARRIERS There are many psychological barriers many times receivers cannot concentrate
because of personal problems, tension mental, pressure, over burden of thoughts etc.
DIFFERENT LANGUAGES If sender and receiver speak different languages communication can be failure.
Translators can be used but there is always some communication which is lost in translations.
DIFFERENCE BETWEEN SENDER AND RECEIVER Different between culture, perception, age, gender, belief,
religions, marital status, country, background etc. of sender and receiver cause failure of communication. These
differences can be resolved by effective sender and receiver.
LACK OF TRUST If receivers do not trust sender the communication will be always failure. There are many reasons of
lack of trust for example lack of experience and knowledge in sender.
OTHER BARRIERS In addition to the above-mentioned barriers there are many other barriers for example
Receiver do not have interest in subject.
There is fault in media of communication.
Pre mature evaluation by receiver.
Error of spelling, grammar, punctuations etc. in writing communication.
Lack of planning by sender.
Topic of communication is taboo.
REASONS OF FALIURE OF LISTENING
Following are the reasons of failure of listening.
If speaker and listener used different languages.
If listener is paying attention on the speaker message.
If there are lot of physical noises like loud music, car horns, air planes etc.
If listener do not trust speaker.
If listener do not concentrate because of some personal problems.
If listener is speaking with each of other.

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If listeners are involved premature evaluation.
If culture of speaker and listener is different.
If listener is not interested in the subject.
If speaker has not planned the communication properly.
If listener is disturbed or distraction by something.
If there are difference between speaker and listener for example age, gender, beliefs, religions, marital status,
education, background, perceptions etc.
HEARNING LISTENING
Hearing is the process of receiving sounds through Listening is the process of understanding and analyzing the
ear. message
Hearing is the physical ability Listening is the mental skill
Hearing does not require concentration Listening requires lot of concentration
Hearing is a subconscious act Listening is a conscious act
We cannot control hearing We can control listening
Sometimes there is no reason of hearing Getting knowledge and information is the reason of listening

TEN COMMANDMENTS OF GOOD LISTENING/RESPONSBILITES OF LISTER/HOW TO BE A GOOD

LISTENER
Following are the responsibilities of listeners.
STOP TALKING Stop talking is the first commandment of listening. If listeners are talking, they cannot concentrate on
anything.
DESIRE TO LISTEN Desire to listen is also a responsibility of listeners. Show speaker that you are interested in
message by body language.
REMOVE DISTRACTION Removing distraction is also a commandment of listening. Distractions can be a reason of
poor listening.
EMPATHIZE Empathizing with speaker is the responsibility of listeners. You must understand the feeling of speaker.
BE PATIENT Being patient is also a commandment of listening. Sometimes speakers take time in reaching their basic
message.
BE CALM Being calm is also the responsibility of listener. They should hold their temper if the subject is taboo.
HEALTHY CRITICISM Providing healthy criticism is also a commandment of listener. The purpose of criticism must
be improvement not insult.
ASK QUESTION Asking questions is also a responsibility of listener. Questions motivate and encourage speaker.
STOP TALKING First and last commandment of listening is stop talking. It is included twice because it is very
important while talking person cannot listen anything.
RESPONSBILITIES OF INTERVIEWER
Following are the responsibilities of interviewer divided into three categories. (A) Before interview, (B) During interview
and (C) After interview.
BEFORE INTERVIEW Following are the responsibilities of interviewer before interview.
He must read the C.V of interviewee he must have some basic knowledge about interviewee before the interview.
He must be aware of laws, rules and regulations regarding interview in order to avoid legal problems.
He must plan all the questions in advance.
He should practice interview.
He must pay attention on his appearance (dress, hair etc.)
DURING THE INTERVIEW Following are the responsibilities of interviewer during interview.
He must let interviewee speak.
He must use the language in which interviewee feels comfortable.
He must not interrupt interviewee.
He must maintain eye contact with interviewee. It will increase his confident.
He must avoid arguments with interviewee.
He must keep straight face on both right and wrong answer.
He must use body language to show interviewee that he is interested.

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He must explain question if interviewee does not understand it.
He must control his emotions.
He must be polite.
AFTER THE INTERVIEW Following are the responsibilities of interviewer after the interview.
He must encourage interviewee to ask some questions regarding job or company.
He must make complete record of interview.
He must evaluate the interview without any personal biases.
He must take notes of any specific things he notices in interviewee.
He must send thank you email after interview.

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