COMMUNICATION IN BUSINESS

1.0 Types of Communication

There are two types of business communication in an organization:
 Internal Communication
 External Communication
1.10 Internal Communication
Under Internal Business Communication types, there come:
i) Upward Communication
Upward Communication is a mean for the staff to:
 Exchange information, Offer ideas
 Express enthusiasm, Achieve job satisfaction
 Provide feedback
ii) Downward Communication
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
Both Downward & Upward Communications are collectively called “Vertical Communication”

iii) Horizontal/Literal communication

Horizontal Communication is essential for:
 Solving problems
 Accomplishing tasks
 Improving teamwork
 Building goodwill
 Boosting efficiency

1.20 External Communication

Communication with people outside the company is called “external communication”.
Supervisors communicate with sources outside the organization, such as vendors and customers.
It leads to better:
 Sales volume
 Public credibility
 Operational efficiency
 Company profits
It should improve:
 Overall performance
 Public goodwill
 Corporate image
Ultimately, it helps to achieve:
 Organizational goals
 Customer satisfaction

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2.0 COMPONENTS OF COMMUNICATION
Communication consists of six components or elements.
 Context
 Sender/Encoder
 Message
 Medium
 Receiver/Decoder
 Feedback

i) 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.

ii) 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.
iii) 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.

iv) 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.

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  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.

v) 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.

vi) 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.

3.0 FEATURES/CHARACTERSITICS/ SEVEN C’S OF EFFECTIVE BUSINESS COMMUNICATION

i. Correctness

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 ii. Clarity
iii. Conciseness
iv. Completeness
v. Consideration
vi. Concreteness
vii. Courtesy
i. Correctness
Correctness means ,use the right level of language, Correct use of grammar, spelling and
punctuation, Accuracy in stating facts and figures
Correctness in message helps in building confidence.
ii. Clarity
Clarity demands the use of simple language and easy sentence structure in composing the
message. When there is clarity in presenting ideas, it’s easy for the receiver/decoder to grasp
the meaning being conveyed by the sender/encoder.
Clarity makes comprehension easier.
iii. Conciseness
A concise message saves time of both the sender and the receiver. Conciseness, in a business
message, can be achieved by avoiding wordy expressions and repetition. Using brief and to
the point sentences, including relevant material makes the message concise. Achieving
conciseness does not mean to loose completeness of message.
Conciseness saves time.

iv. Completeness
By completeness means the message must bear all the necessary information to bring the
response you desire. The sender should answer all the questions and with facts and figures.
and when desirable, go for extra details.
Completeness brings the desired response.

v. Consideration
Consideration demands to put oneself in the place of receiver while composing a message.It
refers to the use of You attitude, emphases positive pleasant facts, visualizing reader’s
problems, desires, emotions and his response.
Consideration means understanding of human nature.

vi. Concreteness
Being definite, vivid and specific rather than vague, obscure and general leads to
concreteness of the message. Facts and figures being presented in the message should be
specif.
Concreteness reinforces confidence.

vii. Courtesy
In business, almost everything starts and ends in courtesy. Courtesy means not only thinking
about receiver but also valuing his feelings.Much can be achieved by using polite words and
gestures, being appreciative, thoughtful, tactful, and showing respect to the receiver.

Courtesy builds goodwill.

4.0 Barriers to Effective Communication in organizations
1. Lack of Sensitivity to Receiver.

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  Recognizing the receiver’s needs, status, knowledge of the subject, and language skills
assists the sender in preparing a successful message.  If a customer is angry, for example, an
effective response may be just to listen to the person vent for awhile. 

2. Lack of Basic Communication Skills. 

The receiver is less likely to understand the message if the sender has trouble choosing
the precise words needed and arranging those words in a grammatically-correct
sentence. 
3. Insufficient Knowledge of the Subject. 
If the sender lacks specific information about something, the receiver will likely receive an
unclear or mixed message.

4. Information Overload. 
If you receive a message with too much information, you may tend to put up a barrier
because the amount of information is coming so fast that you may have difficulty
comfortably interpreting that information. 

5. Emotional Interference. 
An emotional individual may not be able to communicate well. 

6.  Physical Distractions.
  A bad cellular phone line or a noisy restaurant can destroy communication. 
viii. Conflicting Messages. 
Messages that cause a conflict in perception for the receiver may result in incomplete
communication. 
ix. Channel Barriers.
If the sender chooses an inappropriate channel of communication, communication may
cease. 
Detailed instructions presented over the telephone, for example, may be frustrating for
both communicators. 

5.0 Benefits Of Effective Communication At Various Levels In Managing An Organization

1. Improved Employee Relations

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Effective communication of information and decision is an essential component for
management-employee relations.The manager cannot get the work done from employees
unless they are communicated effectively of what he wants to be done?

2. Employee Motivation
Communication is also a basic tool for motivation, which can improve morale of the
employees in an organization.
3. Increased productivity:
Effective communication helps in the maintenance of good human relation in the
organization .Encouraging ideas or suggestions from employees or workers and
implementing them whenever possible,
4. Giving feedback to employees
It is through the communication that employees submit the following to their seniors or
management work reports, comments, grievances ,suggestions
5.Communication also plays a crucial role in management of change
6. Communication assists in controlling process.
7. Aids Managerial performance

MANAGEMENT OF CHANGE

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1.0 Major areas of change

The major areas of changes in a company's internal environment include:

1. Strategic:
Adjusting a company's strategy may involve changing its fundamental approach to doing
business:
 the markets it will target,
 the kinds of products it will sell,
 how they will be sold,
 its overall strategic orientation,
 the level of global activity,
 its various partnerships and other joint-business arrangements.
2. Structural:
Structural changes involve:-
 the hierarchy of authority,
 goals,
 structural characteristics,
 administrative procedures,
 management systems.

3. Process-oriented:
 Organizations may need to reengineer processes to achieve optimum workflow and
productivity.
 Process-oriented change is often related to an organization's production process or
how the organization assembles products or delivers services.
 The adoption of robotics in a manufacturing plant
 Adoption of laser-scanning checkout systems at supermarkets

4. People-centered:
This type of change alters the:-
 attitudes,
 behaviors,
 skills,
 performance of employees in the company.
Changing people-centered processes involves:-
 communicating,
 motivating,
 leading,
 interacting within groups.
This focus may entail changing:-
 how problems are solved,
 the way employees learn new skills,
 the very nature of how employees perceive themselves, their jobs, and the
organization.
2.0 Drivers Of Organizational Change.

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1. Inadequate Financial Performance:

 Companies that fail to achieve financial benchmarks are forced to evaluate their
business objectives and processes.
 This is one of the most important drivers of organizational change.
 If a new competitor enters the market with cheaper labor or a superior technology,
companies that formally enjoyed prosperity can suddenly find a cannibalization of
their market share.
 A failure to maintain a competitive presence in the market place can stress
company resources and force a rethink of the opportunity cost of capital and
resource redeployment.

2. Change In strategic Objectives:

 If a company shifts its focus form a product centric to a customer centric orientation,
new processes are required to facilitate this re-orientation.
 This can result in redundancy to existing staff or manufacturing processes.
 Company restructuring from this is a primary driver of organizational change as the
old is replaced with the new

1. End of the Product Development Life Cycle:

 A product can reach the end of its product life cycle and companies are forced to cut
production and operating costs or exit the market.
 At this stage some companies sell out or merge with existing competitors.
 This results in structural changes to a companies business processes to either
maintain profitability or refocus on new opportunities
2. New technology:
 New technology can be a significant driver of organizational change.
 Consider the effect the internet is having on old style media and print companies.
 As internet access levels increase on a worldwide scale, companies are forced to
adapt their existing operations to shifting consumer preferences.
 Companies that neglect rising trends face a diminishing market share to competitors
who better understand and address the demands of their customers.

3. Mergers and Acquisitions:

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  When companies merge or consolidate operations, significant costs cutting and a re-
engineering takes place.
 Redundancy and restructure to align with management objectives drives
organizational change.
 The integration of two companies creates significant challenges to streamline
operations and integrate existing IT operations into a centralized structure.
 Consider the implications of merging two independent billing systems which use
different platforms and infrastructure.
 The careful dedicated planning required to bring this to fruition is part of the change
management process.
 As business and markets evolve, so too do business processes.
 The above represents some of the pertinent drivers of organizational change.
6. Action by competitors
7. Introduction of new laws by the government
1.0 Why Employees Resist Change

The following are some of the various factors that cause organizational changes
 Threat of power on an individual level.
 Threat of power on an organizational level.
 Losing the control by employees.
 Increasing the control on the employees.
 Economic factors.
 Image, prestige and reputation.
 Threat of comfort.
 Job’s security.
 Reallocation of resources.
 Too much dependence of others.
 Misunderstanding the process.
 Mistrust to initiators of change.
 Different evaluation and perception.
 Fear of unknown.
 Habits.
 Threat to interpersonal relations.
 Weakness of the proposed changes.
 Limited resources.
 Selective information processing.
 Uninformed employees.

4.0 How change can be introduced successfully in an organization

1. Communication

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 2. Training
3. Organizational strategic planning
4. Organizational restructuring
5. Changing organizational culture
6. Performance management
7. Organizational Development
8. Introduction of policies, rules and regulations
9. Use of symbols, rituals

CORPORATE SOCIAL RESPONSIBILITIES

1.0 Introduction

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Companies need to answer to two aspects of their operations.
1. The quality of their management - both in terms of people and processes (the inner
circle).
2. The nature of, and quantity of their impact on society in the various areas.
Outside stakeholders are taking an increasing interest in the activity of the company.

DEFINITIONS
"Making Good Business Sense" by Lord Holme and Richard Watts, used the following definition.

"Corporate Social Responsibility is the continuing commitment by business to behave ethically and
contribute to economic development while improving the quality of life of the workforce and their
families as well as of the local community and society at large"
Traditionally in the United States, CSR has been defined much more in terms of a philanthrophropic
model.
 Companies make profits, unhindered except by fulfilling their duty to pay taxes.
 Then they donate a certain share of the profits to charitable causes.
 It is seen as tainting the act for the company to receive any benefit from the giving.
The European model is much more focused on:-
 operating the core business in a socially responsible way,
 complemented by investment in communities for solid business case reasons. Personally,
3.0 EMERGING ISSUES IN CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility is not a peripheral issue in a business
It is a critical/critical component of a business entity
Customer satisfaction is not only about price and service .
The following are Some of the Emerging Issues in Corporate Social Responsibility
3.10 Marketplace
 What are the risk factors connected to the product you make?
 Which are the stakeholders about to boycott you because of the service you provide?
Critical Issues to pay attention to in the of Market Place
 The impact on society of your core products and services
 Ethical trading
 Ethical advertising
 Treatment of, and vetting of, suppliers
3.20 Environment
 Anyone with children has a stake in future generations and the ability of the
environment to support life.
 But environmental good practice is also about business efficiency - it's about the best
use of valuable raw materials, and feeding the benefits of action straight through to
the bottom line.
Critical Issues which needs attention on the Environment
 Contribution to greenhouse gas emissions through energy use and other parts of
your process
 Use of raw materials, both nonrenewable resouces which by definition are not
sustainable in the long term, and as importantly renewable resources which are
produced in a fashion which is not currently sustainable.
 Potential for environmental accidents - releases of pollutants into air, water or land.

3.30 WORKPLACE
 Your people are your greatest asset - or so you say.

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  Do you really treat them like your greatest asset?
 Do you erect barriers to their development based on prejudice?
 Do you nurture their pride in the company
 Do you simply burn their energy in every waking moment as they plan to migrate to
your more family-friendly competitor?
Following issues can be a big minus to a company
 Discriminating or provide soul destroying meaningless work that takes no account of your
people's right to a private life.
 If people are your company's greatest asset, you need to invest seriously to begin to realise
the returns.
Things to ponder about your treatment of employees in an organization
 How much do you really get from the employees ?
 If you pay out good money to recruit talent, but then find you can't keep hold of it, it may be
that you're missing out on a basic truth of human nature - people need to be developed, and
challenged, and nurtured for them to be motivated to meet your business goals.
3.40 COMMUNITY
 If you don't invest in the community, it may not provide you with the suppliers, or the
educated staff you need to operate.
 If you don't build a positive relationship with the community, it may not be so supportive
when you need to expand.
 A successful company needs to operate in a healthy, thriving community - the kind of
community your employees will want to live in, with the kind of schools they will want to
send their kids to.

2.0 CSR DRIVERS

1. The shrinking role of government

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Shrinking government resources, coupled with a distrust of regulations, has led to the exploration of
voluntary and non-regulatory initiatives instead.
2. Demands for greater disclosure
There is a growing demand for corporate disclosure from stakeholders, including; customers,
suppliers, employees, communities, investors, activist organizations.

3. Increased customer interest

There is evidence that the ethical conduct of companies exerts a growing influence on the
purchasing decisions of customers.
4. Growing investor pressure
Investors are changing the way they assess companies' performance, and are making decisions
based on criteria that include ethical concerns.
5. Competitive labour markets
Employees are increasingly looking beyond paychecks and benefits,Seeking out employers whose
philosophies and operating practices match their own principles.
In order to hire and retain skilled employees, companies are being forced to improve working
conditions.

6. Supplier relations
As stakeholders are becoming increasingly interested in business affairs,many companies are taking
steps to ensure that their partners conduct themselves in a socially responsible manner.Some are
introducing codes of conduct for their suppliers, to ensure that other companies' policies or
practices do not tarnish their reputation.
7. Increased Affluence
CSR becomes more relevant as economies grow and stabilize.Therefore, the greatest attention to
CSR is found in developed countries. Stable work and security provide the luxury of choice and
socially responsible activism.No such luxury exists when basic needs are in question.

8.Ecological Sustainability
Perhaps the most obvious and most talked about of the drivers, concerns over pollution, waste,
natural resource depletion, climate change and the like continue to fuel the CSR discussion and
heighten expectations for proactive corporate action. After all, it is in the best interest of firms to
protect for the sustainable future the long-term availability of the resources on which they depend.
9.Globalization
Globalization has had considerable impacts.
First, the increased wealth and power of multinational corporations has led to questions on the
decreased authority of the nation-state, especially in developing areas. Further, cultural
differences have added to the complexity of CSR as expectations of acceptable behavior
vary regionally. With increased power comes increased responsibility and globalization has
fueled the need to filter all strategic decisions through a CSR lens to ensure optimal
outcomes for diverse stakeholders.
10.Free Flow of Information
The Internet and other electronic mediums the flow of information has shifted back to the
stakeholders, especially in the case of three important groups ,consumers, NGOs the general media.
11.The Power of the Brand
Brands are today the focal point of corporate success and much of the health of the brand depends
on public perception of the corporation. In other words, reputation is key and honest CSR is a way to
protect that reputation and therefore the brand.

3.0 Merits And Demerits Of Csr

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Positive benefits of CSR in an Organization

Company benefits:
 Improved financial performance;
 Lower operating costs;
 Enhanced brand image and reputation;
 Increased sales and customer loyalty;
 Greater productivity and quality;
 More ability to attract and retain employees;
 Reduced regulatory oversight;
 Access to capital;
 Workforce diversity;
 Product safety and decreased liability.

Benefits to the community and the general public:

 Charitable contributions;
 Employee volunteer programs;
 Corporate involvement in community education, employment and homelessness
programs;
 Product safety and quality.

Environmental benefits:

 Greater material recyclability;

 Better product durability and functionality;
 Greater use of renewable resources;
 Integration of environmental management tools into business plans, including life-
cycle assessment and costing, environmental management standards, and eco-
labelling.

Employee Benefits
 Improved employee relations
 Improved health and safety at work
 Equality if treatment of employees
 Improved communication translating into clear understanding of instructions

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4.0 Arguments for and against csr
Case for social responsibility

The following are the arguments in support of social responsibility:-

 Social actions are profitable
 It is ethical for an organization to carry out acts related to social responsibility
 It is in the interest of business to improve and promote society where it is operating
 It leads to good corporate image
 It enables an organization to avoid government penalties
 Organizations are viewed to have more resource to help solving some problems of
the society
 It is the society which gives the company charter to exist since organizations do not
operate in a vacuum
 The society provides immediate market for goods produced
 The society provides raw materials and labour for the organization

Case Against Social Responsibility

The following are the arguments against Corporate social responsibility:-
 Business plus the government equals monolith
 Social responsibility programs are expensive to business organizations]
 Business organizations do not have experience of running social programs
 Social responsibility programs dilutes business major motives of profit maximization
 Business organizations end- up engaging in illegal business
 Many social responsibility programs make the government unpopular since people
feel the government has failed to provide services covered by Social responsibility
programs

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