Unit 5: Communication
5.1 Communication
 Communication refers to the exchange of
information and messages between individuals or
groups within or between organizations, with the
purpose of achieving common goals, improving
business performance, and building professional
relationships.
 It involves the use of various communication tools
and channels, such as emails, memos, reports,
presentations, meetings, and social media, to convey
ideas, opinions, instructions, and feedback in a clear,
concise, and effective manner.
5.2 Process of Communication
The whole communication process consists of the
following
5.3 Types of Communication
There are several types of communication, including:
A. Communication-based on parties involved:
1. Internal communication: flow of information to
internal participants of an organization.
a) Vertical communication: between superiors and
subordinates
i. Downward communication: superiors to
subordinates
ii. Upward communication: subordinates to
superiors
b) Horizontal communication: among persons
holding the same position or rank
2. External communication: communication with
outside parties such as customers, suppliers,
investors, bankers, insurance companies,
government agencies, and local communities.
B. Communication-based on formality:
1. Formal communication: follows prescribed rules and
procedures of the organization.
2. Informal communication: does not follow any
prescribed rule or procedure.
D. Communication based on the method of delivery:
1. Verbal Communication: Communication through the
use of spoken or written words.
2. Nonverbal Communication: Communication through
facial expressions, body language, tone of voice, and
gestures.
3. Visual Communication: Communication through
visual aids such as graphs, charts, diagrams, and
videos.
E. Communication based on purpose:
1. Informational Communication: To provide
information or knowledge to others.
2. Persuasive Communication: To convince or persuade
others to take a certain action or change their beliefs.
3. Instructional Communication: To provide
instructions or guidance to others.
F. Communication based on channel:
4. One-to-one Communication: Communication
between two people, typically in a face-to-face
setting.
5. One-to-many Communication: Communication from
one person or source to many people, such as
through a speech or mass media.
6. Manyto-many Communication: Communication
between many people or sources, such as in a group
discussion or online forum.
5.4 Importance of communication system
The importance of a communication system in any
organization cannot be overstated. Here are some key
reasons why communication systems are important:
1. Improves coordination: Communication systems
facilitate the sharing of information and ideas,
enabling teams to work together more effectively
towards common goals.
2. Increases efficiency: Effective communication
systems can help to reduce errors, redundancies, and
delays, thereby improving overall productivity.
3. Promotes innovation: Good communication systems
encourage creative thinking and the exchange of
ideas, leading to new and better ways of doing things.
4. Builds relationships: Communication systems help to
build strong relationships within and outside the
 organization, creating a sense of community and 5.6 Listening to People
shared purpose.
Listening to people is crucial in business for various
5. Facilitates decision making: With timely and
reasons:
accurate communication, decision making becomes
faster and more effective. 1. Building relationships: Active listening helps in
building and strengthening relationships with clients,
6. Enhances customer satisfaction: Good
customers, employees, and stakeholders. When
communication systems help to keep customers
people feel heard and understood, they are more
informed about products and services, and enable
likely to trust and work with you.
organizations to respond quickly to customer needs
and feedback. 2. Understanding customer needs: By actively listening
to customers, businesses can understand their needs
7. Promotes transparency: Open and honest
and preferences, which helps in developing products
communication helps to build trust and credibility,
and services that align with their requirements.
and fosters a culture of transparency and
accountability. 3. Resolving conflicts: Effective listening can help in
resolving conflicts and misunderstandings. It allows
people to express their concerns and opinions, which
5.5 Barriers to Communication can lead to finding common ground and solutions.
Barriers to communication refer to factors or obstacles 4. Improving decision-making: Listening to different
that hinder effective communication between individuals perspectives and ideas can provide valuable insights
or groups. Some common barriers to communication and help in making informed decisions. It allows
include: businesses to consider all options before finalizing a
decision.
1. Language barriers: Differences in language, dialects,
or jargon can make it difficult for individuals to 5. Enhancing productivity: Listening to employees can
communicate effectively, especially if they do not help in identifying areas of improvement,
share a common language. understanding their challenges and limitations, and
providing necessary support and resources. This can
2. Cultural barriers: Differences in cultural backgrounds
lead to increased productivity and efficiency in the
can lead to misunderstandings and
workplace.
misinterpretations of messages, particularly in terms
of body language, tone of voice, and social norms. 6. Building trust: When you actively listen to people in
business, it shows that you value their input and
3. Physical barriers: Physical factors such as distance,
perspective. This helps to build trust and rapport
noise, and interruptions can make it difficult for
between you and your colleagues, employees, and
individuals to communicate effectively.
clients.
4. Psychological barriers: These can include emotional
7. Encouraging innovation: Listening to people with
or attitudinal factors such as fear, anxiety, anger, or
different perspectives can help to spark innovation
lack of interest, which can interfere with effective
and creativity. By encouraging employees to share
communication.
their ideas and listening to their feedback, you can
5. Organizational barriers: These can include factors create a culture of innovation in your business.
such as hierarchical structures, formal policies and
Overall, listening to people is an essential aspect of
procedures, and lack of feedback mechanisms that
can impede communication between individuals or communication in business, and it can contribute to the
groups. success and growth of the organization.
6. Technological barriers: These can include problems
with equipment, connectivity issues, or problems
with accessing or sharing information electronically.
7. Personal barriers: These can include factors such as
a lack of listening skills, poor communication skills, or
a lack of trust between individuals or groups.
5.7 The Power of Talk 9. Motivating employees: Effective communication can
motivate employees to perform better, achieve their
The power of talk refers to the impact that effective goals, and contribute to the success of the business.
communication skills can have on personal and
10. Building a strong brand image: The way you
professional success. In business, effective
communicate with your customers and clients can
communication through talk can help build strong
shape your brand image. Clear and consistent
relationships with clients, colleagues, and employees,
communication can establish a positive brand image
leading to increased productivity, better teamwork, and
and differentiate you from your competitors.
improved customer satisfaction. Some ways in which the
power of talk can be utilized in business include: 11. Closing deals: Effective communication is essential
for closing deals and sealing business partnerships.
1. Making a good first impression: The first impression
Good talk can help you to persuade and influence
that you create through your communication can
your customers, clients, and partners, leading to
make or break a deal. A good talk can create a lasting
successful deals and partnerships.
impression that can set the tone for future
interactions.
2. Persuasion: The ability to communicate persuasively 5.8 Personal selling
is a key skill in business. By effectively conveying
Personal selling is a promotional technique in which a
your ideas and influencing others through talk, you
salesperson directly interacts with potential customers to
can help gain support for your initiatives and drive
persuade them to purchase a product or service. Here are
success.
some points about personal selling:
3. Negotiation: Talk is a powerful tool in negotiations,
1. Personal selling is a face-to-face communication
as it allows you to clarify your needs, understand the
process between the seller and the buyer.
other party's perspective, and work towards
mutually beneficial solutions. 2. It involves building a relationship with the potential
customer and identifying their needs.
4. Leadership: Effective communication skills are
essential for successful leadership. Leaders who can 3. The salesperson provides information about the
articulate their vision, provide clear guidance, and product or service and tries to persuade the
inspire their team through talk can create a strong customer to make a purchase.
sense of direction and purpose within the 4. Personal selling is typically used for high-ticket items
organization. or complex products where the buyer needs more
5. Collaboration: Communication through talk is critical information and support.
for effective collaboration. By sharing ideas, 5. It allows for customization of the sales pitch to the
addressing concerns, and working together towards specific needs and preferences of the buyer.
common goals, teams can achieve greater success 6. Personal selling requires skilled and trained
than individuals working alone. salespeople who are knowledgeable about the
6. Customer service: Talk plays a crucial role in product or service.
providing excellent customer service. By actively 7. It can be more expensive than other promotional
listening to customer concerns, addressing their techniques, but it can also yield higher returns on
needs, and providing clear and helpful guidance, investment if done effectively.
businesses can build strong customer relationships
and drive loyalty. 8. Personal selling can also lead to repeat business and
positive word-of-mouth referrals from satisfied
7. Establishing relationships: The way you talk to your customers.
customers, clients, employees, and partners
determines the quality of your relationships. Positive
and effective communication can establish strong
relationships that can benefit your business in the
long run.
8. Building trust: Communication that is honest,
transparent, and empathetic can build trust with
your employees, customers, and partners. Trust is
essential for any business to thrive.
5.9 Risk Taking and Resilience
 Risk taking refers to the willingness to take risks or
try new things, even if there is a chance of failure or
loss. Resilience, on the other hand, refers to the
ability to bounce back from setbacks, adapt to
change, and keep moving forward despite obstacles
or difficulties. Both risk taking and resilience are
important qualities in business.
 Here are some key points on the importance of risk
taking and resilience in business:
1. Innovation: Taking risks and trying new things is
often the key to innovation and finding new ways
to grow and improve a business.
2. Competitive advantage: Businesses that are
willing to take risks and adapt quickly to change
often have a competitive advantage over those
that are more cautious and resistant to change.
3. Growth: Risk taking and resilience can be
important drivers of growth, allowing businesses
to explore new markets, launch new products or
services, and expand their operations.
4. Learning from failure: Failure is often a necessary
part of the path to success, and risk taking and
resilience can help entrepreneurs learn from their
mistakes, make adjustments, and try again.
5. Overcoming obstacles: Resilience is particularly
important when facing obstacles or challenges,
allowing entrepreneurs to stay focused and
determined in the face of adversity.
6. Building confidence: Taking risks and bouncing
back from setbacks can help build confidence and
resilience, allowing entrepreneurs to take on
bigger challenges and pursue their goals with
greater conviction.
Overall, risk taking and resilience are essential qualities
for any entrepreneur or business owner who wants to
grow and succeed in today's rapidly changing business
environment.
5.10 Negotiation
 Negotiation is the process of discussing and reaching
an agreement between two or more parties who
have different interests or goals. It is a critical skill in
business, as it allows parties to come to a mutually
beneficial agreement, rather than just one party
getting what they want.
 Here are some key points about negotiation:
1. Goals: Negotiation requires a clear understanding
of the goals and objectives of each party involved.
2. Preparation: It is essential to prepare for
negotiations by researching the other party,
identifying their interests and goals, and
anticipating potential obstacles.
3. Communication: Good communication skills are
essential for successful negotiation. Parties need
to be able to listen actively, ask questions, and
express their thoughts and feelings clearly.
4. Compromise: Negotiation often involves
compromise, where both parties give up
something to reach an agreement.
5. Trust: Trust is an essential element of negotiation.
Parties need to trust each other to be honest and
transparent throughout the process.
6. Importance of a win-win outcome: Negotiation
should aim to achieve a win-win outcome where
both parties feel satisfied with the result. This can
lead to a more positive ongoing relationship and
future opportunities for collaboration.