IBAIS University

Department of Business Administration

Program: BBA, Semester: Spring -2016
Final Examination
Course Code: BUS-212
Course title : Business Communication

Total Marks :45 Time: 2.00 Hours

(Answer any Fivefrom the following Questions)

1. (a) What do you mean by communication ? 3

(b) Why Communication is important for an Organization? 6

2. (a) What do you mean by upward and downward communication ? 4

(b) Differentiate between Formal and Informal communication. 5

3. (a) What do you mean by one way and two way communication? 5
(b) Is there any difference between oral and written communication? 4

4. (a) Explain the essential elements of communication process. 3

(b) What do you mean media of communication? 6

5. (a) What is the definition of Communication network ? 3

(b) Describe different types of Communication network. 6

6. (a) Define internal networks and external networks 2

(b) Discuss the factors that lead the members to form an external network. 4
(c) How are the network members and organizations benefited by the network ? 3
Question: 1. (a)What do you mean by Business Communication?

Answer:

Business communication is the sharing of information between people within and outside the
organization that is performed for the commercial benefit of the organization. It can also be defined as
relaying of information within a business by its people.

Business Communication is any communication used to promote a product, service, or organization –

with the objective of making sale. In business communication, message is conveyed through various
channels of communication including internet, print (publications), radio, television, outdoor, and word of
mouth.

Business communication includes all communication that occurs in a business context. A knowledge of
business communication presupposes an understanding of both business and communication. That's a lot
of territory. Although courses in business communication have their roots in the “business English” and
“business correspondence” courses common in the late nineteenth and early twentieth centuries, business
communication has evolved over the years into a broad discipline providing an overview of all
communication that occurs in organizational settings.

Question: 1. (b) Why Communication is important for an Organization?

Effective Communication is significant for managers in the organizations so as to perform the basic
functions of management, i.e., Planning, Organizing, Leading and Controlling.

Communication helps managers to perform their jobs and responsibilities. Communication serves as a
foundation for planning. All the essential information must be communicated to the managers who in-turn
must communicate the plans so as to implement them. Organizing also requires effective communication
with others about their job task. Similarly leaders as managers must communicate effectively with their
subordinates so as to achieve the team goals. Controlling is not possible without written and oral
communication.
Managers devote a great part of their time in communication. They generally devote approximately 6
hours per day in communicating. They spend great time on face to face or telephonic communication with
their superiors, subordinates, colleagues, customers or suppliers. Managers also use Written
Communication in form of letters, reports or memos wherever oral communication is not feasible.
Thus, we can say that “effective communication is a building block of successful organizations”. In other
words, communication acts as organizational blood.

The importance of communication in an organization can be summarized as follows:

1. Communication promotes motivation by informing and clarifying the employees about the task to be
done, the manner they are performing the task, and how to improve their performance if it is not up to the
mark.
2. Communication is a source of information to the organizational members for decision-making process
as it helps identifying and assessing alternative course of actions.
3. Communication also plays a crucial role in altering individual’s attitudes, i.e., a well informed
individual will have better attitude than a less-informed individual. Organizational magazines, journals,
meetings and various other forms of oral and written communication help in moulding employee’s
attitudes.
4. Communication also helps in socializing. In todays life the only presence of another individual fosters
communication. It is also said that one cannot survive without communication.
5. Communication also assists in controlling process. It helps controlling organizational member’s
behavior in various ways. There are various levels of hierarchy and certain principles and guidelines that
employees must follow in an organization. They must comply with organizational policies, perform their
job role efficiently and communicate any work problem and grievance to their superiors. Thus,
communication helps in controlling function of management.

Conclusion:
An effective and efficient communication system requires managerial proficiency in delivering and
receiving messages. A manager must discover various barriers to communication, analyze the reasons for
their occurrence and take preventive steps to avoid those barriers. Thus, the primary responsibility of a
manager is to develop and maintain an effective communication system in the organization.

2. (a) What do you mean by upward and downward communication ? 3

 Upward Communication:
Upward communication is the flow of information from subordinates to superiors, or from employees to
management. Without upward communication, management works in a vacuum, not knowing if the
messages have been received properly, or if other problems exist in the organization. By definition,
communication is a two-way affair. Yet for effective two-way organizational communication to occur, it
must begin from the bottom.
Upward Communication is a mean for the staff to:
•Exchange information
•Offer ideas
•Express enthusiasm
•Achieve job satisfaction
•Provide feedback

 Downward Communication:
Information flowing from the top of the organizational management hierarchy and telling people in the
organization what is important (mission) and what is valued (policies). Downward communication
generally provides information – which allows a subordinate to do something. For example, instructions
on how to complete a task. Downward communication comes after upward communications have been
successfully established.
This type of communication is needed in an organization to:
•Transmit vital information
•Give instructions
 •Encourage 2-way discussion
•Announce decisions
•Seek cooperation
•Provide motivation
•Boost morale
•Increase efficiency
•Obtain feedback

2. (b) Differences Between Formal and Informal communication:

1. Formal communication is also known by the name of official communication. Informal

Communication is also known by the name of grapevine.
2. In formal communication the information must follow a chain of command. Conversely, the informal
communication can move freely in any direction.
3. In formal communication full secrecy is maintained, but in the case of informal communication
maintenance of secrecy is a very tough task.
4. Formal communication is generally written, whereas Informal communication is oral.
5. Formal communication is time consuming as opposed to Informal communication, which is rapid and
quick.
6. Formal communication is more reliable than Informal communication.
7. Formal communication is designed by the organization. Informal communication starts itself due to the
urge of ‘human to talk’.
8. In formal communication the documentary evidences are always available. On the other hand, in the
case of informal communication the documentary evidences are not available.

Differences Between Formal and Informal communication are given below:

BASIS FOR FORMAL COMMUNICATION INFORMAL

COMPARISON
Meaning A type of verbal communication in
which the interchange of information is
done through the pre-defined channels is
known as formal communication.
Another Name Official Communication
COMMUNICATION
A type of verbal communication
in which the interchange of
information does not follow any
channels i.e. the communication
stretches in all directions.
Grapevine communication

Reliability More Comparatively less

Speed Slow Very Fast

Evidence As the communication is generally No documentary evidence.

written, documentary evidence is
present.
Time Consuming Yes No

Advantage Effective due to timely and systematic Efficient because employees can
 flow of information. discuss work related problems,
this saves time and cost of the
organization.
Disadvantage Distortion due to long chain of Spread of rumors
communication.
Secrecy Full secrecy is maintained. It is difficult to maintain the
secrecy.
Flow of Information Only through predefined channels. Can move freely.

Conclusion:

A very deep discussion on the difference between formal and informal communication has been done in
this article. Nowadays, many big Transnational Organizations has started an open-door policy, in which
any employee of any department can communicate directly with the head of an organization, about their
complaints, grievances and requests. This results in reducing the complexity of the formal
communication.

3. (a)What is One-Way and Two Way Communication?

Answer:
In one-way communication, information is transferred in one direction only, from the sender to the
receiver. There isn't any opportunity for the receiver to give feedback to the sender.
Bob is going out of town on a weekend business trip this morning. He wants his secretary to order lunch
for the executive board meeting next week. As Bob heads out the door, he jots down a note for his
secretary and leaves it on her desk.
The model of one-way communication looks like this:
Sender (Bob)-----------> Message (Order lunch) ---------> Receiver (Secretary)
One-way communication is frequently used when the sender wants to give factual information or when
they want to persuade or manipulate their audience and gain their cooperation.
Examples:
Once dressed, Julie heads to the kitchen. She checks the labels on the boxes of cereal and selects the one
that has the lowest calorie count. Then, she grabs the newspaper and sits down at the table. She'll have
just enough time to scan the news while she eats, and then head out the door to class. She doesn't want to
be late. She's looking forward to Dr. Sam's lecture on Tennessee fainting goats.

What Is Two-Way Communication?

Two-way communication is when one person is the sender and they transmit a message to another
person, who is the receiver. When the receiver gets the message, they send back a response,
acknowledging the message was received.
Two-way communication is a form of transmission in which both parties involved transmit information.
Two-Way communication has also been referred to as interpersonal communication. Common forms of
two-way communication are:
 Amateur Radio, CB or FRS radio contacts.
 Chatrooms and Instant Messaging.
 Computer networks. See backchannel.
 In-person communication.
 Telephone conversations.

Two-way communication model:

Two-way communication is essential in the business world. Messages are transmitted between employers,
employees, customers, and other stakeholders, and feedback is required to be certain that the message was
received and understood.

Two-Way Communication Systems:

Many businesses and municipal services rely on two-way communication systems to stay in touch with
their employees on site and in the field. Some of the most common examples of two-way communication
systems are the radio, telephone, and computer-aided dispatch systems used by police, fire, and
emergency response personnel. These systems allow dispatchers and supervisors to keep in touch with
individuals and to coordinate the activities of groups of responders.
Two-way communications systems are also routinely used in the construction and building trades, public
transportation, the trucking industry, and aviation by commercial and non-commercial pilots, just to name
a few.
Two-way communication systems vary greatly in sophistication and special features. They range from
simple handheld two-way transceivers that use a single dedicated channel to more complex systems that
allow a large number of users to share several channels. The type of system chosen depends on many
factors, such as the intended use, the location, the number of users, the frequency band, and the cost of the
system. Regardless of the type of system chosen, the one common feature is that all of the components
must be compatible and work together to support a common purpose.
Examples
Jack is an on-call service technician for a large medical supply company. At 3:00 a.m., he is awakened to
the sound of his BlackBerry signaling an incoming email. The email from the dispatcher alerts him to an
emergency call from a local hospital. The anesthesia cart in the operating room is malfunctioning, and
there is an operation scheduled for 7 a.m. that morning. Jack sends an email back to the dispatcher letting
them know he received the service call, and then he phones the client to get the details and to let them
know he's on the way.
3. (b)What are the differences between Oral Communication and Written Communication?

The following are the major differences between oral communication and written communication:

 The type of communication in which the sender transmits information to the receiver through
verbally speaking the message. The communication mode, which uses written or printed text for
exchanging the information is known as Written Communication.
 The pre-condition in written communication is that the participants must be literate whereas there
is no such condition in case of oral communication.
 Proper records are there in Written Communication which is just opposite in case of Oral
Communication.
 Oral Communication is faster than Written Communication.
 The words once uttered cannot be reversed in case of Oral Communication. On the other hand,
editing of the original message is possible in Written Communication.
 Misinterpretation of message is possible in Oral Communication but not in Written
Communication.
 In oral communication, instant feedback is received from the recipient which is not possible in
Written Communication.

Comparison Chart between Oral communication &Written communication:

BASIS FOR COMMUNICATION ORAL COMMUNICATION WRITTEN COMMUNICATION

Meaning Exchange of ideas, information Interchange of message, opinions
and message through spoken and information in written or
words is Oral Communication. printed form is Written
Communication.
What is it? Communication with the help of Communication with the help of
words of mouth. text.
Literacy Not required at all. Necessary for communication.
Transmission of message Speedy Slow
Proof No record of communication is Proper records of communication
there. are present.
Feedback Immediate feedback can be given Feedback takes time.
Revision before delivering the Not possible Possible
message?
Receipt of nonverbal cues Yes No
Probability of misunderstanding Very high Quite less

Conclusion:
Oral Communication is an informal one which is normally used in personal conversations, group talks,
etc. Written Communication is formal communication, which is used in schools, colleges, business world
etc. Choosing between the two communication mode is a tough task because both are good at their places.
People normally use the oral mode of communication because it is convenient and less time consuming.
However, people normally believe in the written text more than what they hear that is why written
communication is considered as the reliable method of communication.
4.(a) What do you mean media of communication? 3

Media (communication) Media (singular medium) are the storage and transmission channels or tools
used to store and deliver information or data. It is often referred to as synonymous with mass media or
news media, but may refer to any means of information communication.

Communication media refers to the means of delivering and receiving data or information. In
telecommunication, these means are transmission and storage tools or channels for data storage and
transmission. The term is also commonly used in place of mass media or news media.

Types of Communication Medium:

We divide the different types of communication medium into two different categories:

1. Physical media
2. Mechanical media.

This site focus on the internal communication. Our listings of types of communication medium therefore
exclude external media.

1. Physical media:

With physical media we mean channels where the person who is talking can be seen and heard by the
audience. The whole point here is to be able to not only hear the messages but also to see the body
language and feel the climate in the room. This does not need to be two-way channels. In certain
situations the receiver expect physical communication. This is the case especially when dealing with high
concern messages, e.g. organizational change or down sizing. If a message is perceived as important to
the receiver they expect to hear it live from their manager.

2. Mechanical media:

The second of the two types of communication medium is mechanical media. With mechanical media we
mean written or electronic channels. These channels can be used as archives for messages or for giving
the big picture and a deeper knowledge. But they can also be very fast. Typically though, because it is
written, it is always interpret by the reader based on his or her mental condition. Irony or even humour
rarely travels well in mechanical channels.

 E-mail
 Weekly letters or newsletters
 Personal letters
 Billboards
 Intranet
 Magazines or papers
 Sms
 Social media
4. (b) Explain the essential elements of communication process. 6

The Components or elements of Communication:

The communication is a process of transmitting and receiving messages (verbal and non-verbal).
Communication is a dialogue not a monologue. So, a communication is said to be effective only if it
brings the desired response from the receiver.

Communication consists of six components or elements.

Components of Communication:
1. Context
2. Sender/Encoder
3. Message
4. Medium
5. Receiver/Decoder
6. Feedback

1. Context
Every message (Oral or written), begins with context. Context is a very broad field that consists different
aspects. One aspect is country, culture and organization. Every organization, culture and country
communicate information in their own way.

Another aspect of context is external stimulus. The sources of external stimulus includes; meeting, letter,
memo, telephone call, fax, note, email and even a casual conversation. This external stimuli motivates
you to respond and this response may be oral or written.

Internal stimuli is another aspect of communication. Internal Stimuli includes; You opinion, attitude,
likes, dis-likes, emotions, experience, education and confidence. These all have multifaceted influence on
the way you communicate you ideas.
A sender can communicate his ideas effectively by considering all aspects of context mentioned above.
2. Sender/Encoder
Encoder is the person who sends message. In oral communication the encoder is speaker, and in written
communication writer is the encoder. An encoder uses combination of symbols, words, graphs and
pictures understandable by the receiver, to best convey his message in order to achieve his desired
response.
3. Message
Message is the information that is exchanged between sender and receiver. The first task is to decide what
you want to communicate and what would be the content of your message; what are the main points of
your message and what other information to include. The central idea of the message must be clear. While
writing the message, encoder should keep in mind all aspects of context and the receiver (How he will
interpret the message).
Messages can be intentional and unintentional.
4. Medium
Medium is the channel through which encoder will communicate his message. How the message gets
there. Your medium to send a message, may be print, electronic, or sound. Medium may be a person as
postman. The choice of medium totally depends on the nature of you message and contextual factors
discussed above. Choice of medium is also influence by the relationship between the sender and receiver.
The oral medium, to convey your message, is effective when your message is urgent, personal or when
immediate feedback is desired. While, when your message is ling, technical and needs to be documented,
then written medium should be preferred that is formal in nature. These guidelines may change while
communicating internationally where complex situations are dealt orally and communicated in writing
later on.
5. Receiver/Decoder
The person to whom the message is being sent is called ‘receiver’/’decoder’. Receiver may be a listener
or a reader depending on the choice of medium by sender to transmit the message. Receiver is also
influenced by the context, internal and external stimuli.
Receiver is the person who interprets the message, so higher the chances are of mis-communication
because of receivers perception, opinion, attitude and personality. There will be minor deviation in
transmitting the exact idea only if your receiver is educated and have communication skills.
6. Feedback
Response or reaction of the receiver, to a message, is called ‘feedback’. Feedback may be written or oral
message, an action or simply, silence may also be a feedback to a message.

Feedback is the most important component of communication in business. Communication is said to be

effective only when it receives some feedback. Feedback, actually, completes the loop of communication.

5. (a) What is the definition of Communication network ? 3

Answer:
There are a number of ways to organize communications networks, each with different
advantages. Networks of communications may be:

 Centralized-Where a leader directs the flow of communication

 Decentralized -Each member of the group has access to the ideas of all other members.

To communicate appropriately the BSA sometimes acts as a 'hub', providing information to

government, regulators or the media. Other times it acts as a 'rim', providing sector-wide
information (both examples of parts of the 'wheel' network).

On occasions, it provides the forum in which members can carry out discussions (an example of
the circle network). Finally, when it is necessary for it to communicate directly with specific
people or groups it uses the chain or Y network.
New technology enables building societies to reach their audiences efficiently and quickly. The
BSA has a website and an electronic newsletter 'Newsbite'. The website has key areas aimed at
groups such as consumers, the media and its own members.

The e-newsletter is a monthly online update of news, views, statistics and events information.
Online member forums also provide a way of exchanging news and views.

5. (b) Describe different types of Communication network. 6

\Answer:

Defined by their size and complexity, they come in four main types:

(1) Small Networks, used for the connection of subassemblies and usually contained in a single
piece of equipment;

(2)Local Area Networks, or LAN, cables or fibers used to connect computer equipment and
other terminals distributed in a localized area, such as on a college campus;

(3)Metropolitan Area Networks, or MAN, a high-speed network used to interconnect LANs

spread around a small geographic region such as a city;

(4)Wide Area Networks, or WAN, multiple communication connections, including microwave

radio links and satellites, used to connect computers and other terminals over large geographic
distances.
6. (a)What is internal networks and external networks?

Answer:

An Internal Network, also known as a Home Network, is a private and secure

collaboration space where company employees can connect with their coworkers.
Only employees with verified corporate email addresses can join the Home
Network and access its content and users.

An Internal Network or Private network:

In the Internet addressing architecture, a private network is a network that uses

private IP address space, following the standards set by RFC 1918 for Internet
Protocol Version 4 (IPv4), and RFC 4193 for Internet Protocol Version 6 (IPv6).
These addresses are commonly used for home, office, and enterprise local area
networks (LANs). Private IP address spaces were originally defined in an effort to
delay IPv4 address exhaustion, but they are also a feature of IPv6.

Addresses in the private space are not allocated to any specific organization and
anyone may use these addresses without approval from a regional Internet registry.
However, IP packets addressed from them cannot be transmitted through the public
Internet, and so if such a private network needs to connect to the Internet, it must
do so via a network address translator (NAT) gateway, or a proxy server.

What is External Network :

External Network Virtualization involves and actual physical device that caters to
your network. This type of virtualization has been around for some time now, a
typical example of this would be a CISCO networking switch that provides VLAN
(virtual LAN) capabilities through its internal CISCO iOS software. An advanced
CISCO routing example includes providing automatic QOS and packet analyser
service which lets you prioritize network traffic as well as diagnose network
related problems. The advantage of having an external virtualization solution is
that it has a very small footprint due to its “dedicated” nature, its resources are not
shared by other tasks and burdens of your virtualization infrastructure.
6. (b) Differentiate between Internal and External Communication. 4

Answer:

Differences between Internal and External Communication:

Internal communication is the process of exchanging information among the
people of different level or internal participants within the organization.

On the other hand, external communication is an informal exchange of

information and messages between an organization and other organizations, groups
or individuals outside its formal structure.

The differences between internal and external communication are as follows:

Basic Difference Internal Communication External Communication

Purpose Main purpose is to exchange It is done mainly for

information of various maintaining relationship
departments & division of the with external parties.
organization.
Types Two types: Vertical & No such types.
Horizontal.
Frequency It occurs frequently in
It occurs less frequently
performing organizational
than Internal
activities. Communication
Distance No significance distance
Significance distance exists
between sender and receiver. between sender and
receiver.
Coverage It coverage is limited within the It coverage is broad with
organization. eternal bodies
6. (c) How are the network members and organizations benefited by
the network? 3

Answer:

The Benefits of Business Networking:

Business Networking is a really valuable way to expand your knowledge, learn

from the success of others, attain new clients and tell others about your business.

I highly recommend business networking as a way to gain new clients and to build
a sustainable business. Here are the top 9 benefits for business owners of getting
involved in networking:

1.   Generation of referrals/Increased business

This is probably the most obvious benefit and the reason most business owners
decide to participate in networking activities and join networking groups.
The great news is that the referrals that you get through networking are normally
high quality and most of the time are even pre-qualified for you. You can then
follow up on these referrals/leads and turn them into clients. So you are getting
much higher quality leads from networking than other forms of marketing.

The increase in business from networking is the major advantage, but there are
many others as well.

2.   Opportunities

With a motivated group of business owners comes an abundance of opportunities!

There are always lots of opportunities that come from networking and in fact this is
where the benefits of business networking are huge!

Opportunities like joint ventures, client leads, partnerships, speaking and writing
opportunities, business or asset sales… the list goes on, and the opportunities
within networking are really endless.

Just make sure you are jumping on board with the right opportunities and don’t go
jumping into every opportunity that comes your way. The opportunities that you
get involved in should align with your business goals/vision, otherwise you might
find that you are spinning your wheels chasing after opportunity after opportunity
and getting nowhere.

3.   Connections

“It’s not WHAT you know, but WHO you know”. This is so true in business. If
you want a really successful business, then you need to have a great source of
relevant connections in your network that you can call on when you need them.

Networking provides you with a great source of connections, and really opens the
door to talk to highly influential people that you wouldn’t otherwise be able to
easily talk to or find.

It’s not just about who you are networking with directly either – that person will
already have a network you can tap into as well. So ask the right questions to find
out if the person you are networking with knows who you want to know!

4.   Advice
Having like-minded business owners to talk to also gives you the opportunity to
get advice from them on all sorts of things related to your business or even your
personal life and obtaining that important work-life balance.

Networking is a great way to tap into advice and expertise that you wouldn’t
otherwise be able to get hold of. Just make sure you are getting solid advice from
the right person – someone that actually knows about what you need to know and
is not just giving you their opinion on something that they have no or very little
experience in.

5.   Raising your profile

Being visible and getting noticed is a big benefit of networking. Make sure you
regularly attend business and social events that will help to get your face known.
You can then help to build your reputation as a knowledgeable, reliable and
supportive person by offering useful information or tips to people who need it. You
are also more likely to get more leads and referrals as you will be the one that pops
into their head when they need what you offer.

6.   Positive Influence

The people that you hang around with and talk to do influence who you are and
what you do, so it is important to be surrounding yourself with positive, uplifting
people that help you to grow and thrive as a business owner. Networking is great
for this, as business owners that are using networking are usually people that are
really going for it, positive and uplifting.

7.   Increased confidence

By regularly networking, and pushing yourself to talk to people you don’t know,
you will get increased confidence the more you do this. This is really important as
a business owner, because your business growth is very dependant on talking to
people and making connections.

Networking is great for people that aren’t confident as it really pushes them to
grow and learn how to make conversations and lasting connections with people
they don’t know.
I was certainly not confident when I started networking, in fact it completely
petrified me! But as I do it more, the more confident I get and the easier it
becomes, and the more benefit I get from it.

8.   Satisfaction from helping others

I really love helping other people, and networking is a fantastic way that allows me
to do this easily. Networking is full of business owners that have problems or
issues within their business that need solving, and there is great satisfaction from
helping someone to solve a problem they have and get a fantastic result from it.

9.   Friendship

Lastly, this one is more personal related rather than business related, but is a big
benefit none-the-less. Many friendships form as a result of networking because
(mostly) you are all like-minded business owners that want to grow your
businesses, and you meet and help each other regularly, so naturally strong
friendships tend to form. Some of my strongest friendships have been started from
networking.