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BUSINESS
COMMUNICATION

Module - 1
 Business communication is communication that
is intended to help a business achieve a fundamental
goal, through information sharing between employees
as well as people outside the company.
 Business communication is the process of sharing
information between people within the workplace and
outside a company.
Business communication is the transmission and
exchange of information between people in an
organization to facilitate business activities.
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INTRODUCTION
Communication is conveying of messages by exchanging
thoughts or information via speech, visuals, signals,
writing, or behaviour.
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 Derived from “communis”(Latin) meaning “common”.

 It stands for natural activity of all human beings to
convey opinions, feelings, information and ideas to
others through words (written or spoken), body
language or signs.
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 Communication is the exchange of ideas, opinions and

information through written or spoken words, symbols
or actions.
Communication is a dialogue, not
a monologue
 Communication is more concerned with a dual
listening process. For communication to be effective,
the message must mean the same thing to both the
sender and the receiver. Communication is something
we do all the time, mostly without thinking about it.
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 In business, though, thinking about it is very

important because all forms of interaction
between people and companies are built and
maintained through some form of
communication. It is, therefore, vital that
communication is effective and the messages
between firms, their customers, clients, and those
between workers in the same organization –
especially between management and staff – are
clear and properly understood.
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DEFINITIONS
George Vardman –book: “Effective Communication
of Ideas” defines communication as
 “Purposive interchange, resulting in workable
understanding and agreement between the sender
and receiver of a message”
Robert Anderson:
 “Communication is interchange of thoughts,
opinions, or information by speech, writing or
signs.”
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DEFINITIONS
Keith Davis:
“The transfer of information and
understanding from one person to another
person. It is a way of reaching others with the
facts, ideas, thoughts and values. It is a bridge
of meanings among people so that they can
share what they feel and know.
By using this bridge a person can cross safely
the river of misunderstanding that sometimes
separates people”.
CHARACTERISTICS OR NATURE OF
SUCCESSFUL COMMUNICATION
 Inevitable: Communication is a social and psychological
activity. If a person has all comforts but if he is unable to
communicate, he will be incapable of performing any
tasks.
 Continuous process: Communication is an on going
process and not an art or time- base event. It includes
various events and actions that are inter-connected and
dependent on each other.
 Two way process: Communication is said to be incomplete
if the receiver is unable to understand the message.
Feedback is very essential for effective communication.
 Universal phenomenon: Communication takes place
everywhere. Not only human beings, but birds, animals also
communicate.
 Contextual: Communication always takes place in a particular
context. Similar words may lead to different meanings if spoken
in different contexts.
 Needs proper understanding: The message should be clearly
and briefly expressed.
 Leads to the achievement of organizational goals:
Communication creates a sense of objectivity.
 Eliminates misunderstanding: Misunderstandings occur
when there is a failure to understand or interpret words or
actions correctly. Communication removes this
misunderstanding.
 Communication is a social process:- Human being is a
social animal. He/She cannot live in isolation.
Communication is a process which helps to interact
and socialize making it a social process.
 Communication is a dynamic process:-
Communication is not a constant or one time event. It
is dynamic process, which is ever changing all the
time.
SCOPE OF COMMUNICATION
 In personal life: Communication is present
throughout a person’s life and is strongly related to all
the activities performed by him.
 In social life: Human beings live in society and are
social in nature. They build connections with each
other. Communication preserves and makes these
connections stronger.
 In industry: In an industry, to coordinate and
combine all 5 aspects of production (man,
machine, material, money and method ) , effective
communication is necessary.
 In business: Business organizations can fulfil the
demands of the public through communication
only.
 In organizational behaviour: To build a healthy
relationship among employee, employer and the
organization, communication is necessary. This
relation is formed through formal and informal
communication channels.
 In management: The process of management
includes planning, organising, implementing,
decision-making and controlling. Communication acts
as the soul of the whole management process.
 In politics: The different forms of communication
include – government policies, proposals of political
parties, and manifests of political parties.
 In international relations: This is the era of Globalization. Every
country shares its economic, cultural, technological and other issues
with the other countries.
 In industrial relations: Labour is the backbone of an organization. It is
the responsibility of the HR department to motivate and control them
appropriately. Communication is significant to make the relation
between Labour and management stronger and healthier.
 In decision making: Decision-making is a daily routine for both
individuals and organizations. For taking best decisions, it is necessary
to have complete information about an issue and communication is the
best source for any information.
 In publicity: Organizations need to promote their products and
services through publicity. To ensure proper flow of organization action
through mass media, an organization needs effective communication.
 In information: It is understood that information is
the essence of communication. People and
organization communicate to get information.
Communication contributes by providing meaningful
information to relevant parties.
ROLE OF COMMUNICATION
 Managing complexity all around: Proper communication between
various departments like production, marketing and HR is necessary.
Otherwise, it may lead to misunderstandings.
 Better understanding and cooperation: Mutual trust and
confidence will prevail to a great extent if open communication
channels exist. Too many barriers and hesitations can hamper the
open atmosphere and lead to misunderstandings. Eventually,
business will suffer.
 Management of large organizations: All organizations try to grow
in terms of profit, employees, image building etc. Businesses are
always diversifying. We live in the age of Globalization. Companies
open branches all around the world. If there is no proper
communication among these branches, confusion may prevail.
 Enhance Cohesion: The current focus worldwide is to integrate
employees into one unit and make them function as one big family.
Companies insist on more employee interaction so that they can
develop a family feeling get emotionally attached to it.
 Image of the company improves: if people are cared for, it
shows. The performance of the organization goes up. Outsiders
notice when employees are bound to a company.
 Profitability increases: If business communicates properly,
losses are reduced. Double work gets avoided. Time is not wasted
and profits can go up.
 Employee turnover is less: Employee turn over refers to the
number of people who keep leaving any organization. If the
communication channels are open, employees feel free to discuss
all issues that are pleasant.
 Customer interaction is better: If companies invest in better
communication, there are higher chances that they will have a
satisfied customer base and eventually higher profits.
 Dissemination and collection of information is
easier: Information is required for everything. Better
decisions can be taken, better raw materials can be
used and better customer service and improved after-
sales service is possible.
PURPOSE OF COMMUNICATION
 To give and receive information: Communication is used by
organizations to convey the important information to employees about
goals, policies and rules through meetings, telephone, notices,
handbooks and bulletins.
 To convey the right message: Transmitting the right message to the
right person is an objective of communication. It should also be
ensured that the person receiving the message understands it.
 To provide advice: Advice can be given on both personal and official
matters. Generally, advice in business, given by supervisors to
subordinates is on matters related to handle machines and equipment.
 To receive suggestions: In an organization, suggestions are welcome
to avoid ambiguity. It is a voluntary task and sometimes, an anonymous
effort. Suggestions act as a form of feedback and signify a smooth form
of communication.
 To persuade people: The art of influencing the attitudes,
opinions and actions of people is known as ‘ persuasion’. It
is an essential goal of communication and needs efficient
speaking and writing skills. Face- to – face conversation
makes persuasion more effective.
 To motivate people: Motivation is the process of making
people work hard for accomplishing organizational goals. A
lot can be achieved through motivational force. To achieve
this, a secure, mutually cooperative and trustful
environment is required which can be built through
communication.
 To provide counselling: Counselling is a
systematic and focussed activity that needs
professional know-how and objectivity. When an
employee faces personal/family problems, his
efficiency comes down and he needs counselling.
 To issue orders and instruction: For getting
things done, the manager issues orders and
instructions to the employees. An order is a
command to do something. An instruction tells
the way of carrying out the order.
ELEMENTS OF COMMUNICATION
 Sender/Encoder: The creator of an idea or message is
known as the source. It is also known as sender who could
be an individual or a group. The sender is the transmitter
of the message.
 Message: Message refers to the stimulus that the sender
has transferred to the receiver. Messages are made up of
symbols which have certain and specific meaning to both
the parties- the sender and the receiver.
 Medium/channels: Channel plays an important role as a
means of transmitting the message. Mostly, the channels
are in written or oral form , but as technology is developing
rapidly, visual channels are becoming more popular and
common.
 Receiver/ decoder/listener: The person who receives the
message , understands it and interprets its meaning is
known as ‘receiver’. The next element that comes after
selecting the right communication channel is decoding the
message. Decoding is done by the receiver.
 Feedback: The most significant element of
communication is feedback. Feedback helps in effective
communication process. If there is no feedback, the sender
cannot verify that the receiver has understood his message
effectively.
 COMMUNICATION PROCESS
 Communication is a 2- way process which deals with the exchange and
succession of ideas towards a direction that is mutually accepted. The
communication process takes place with 2 participants via a medium that
transmits the message holding a specific objective and which is understandable
to both the participants; the sender and the receiver.
 Source/sender: The individual, group or organization that starts the
communication is known sender or encoder. The whole responsibility
of communication rests upon the shoulders of sender.
 Message: The encoded idea that is transferred by the sender is called
the message. It is something that a sender wants to communicate or
transfer to the specific receivers.
 Encoding: It is a method by which the idea or the thought of the
message is converted into symbols that can be transmitted.
 Channel: The medium by which the message moves from sender to
receiver is known as channel.
 Receiver : The targeted recipient of a message is known as ‘ receiver’.
 Decoding : It is the stage where the receiver decodes the encoded
message. He interprets and comes out with the meaning of the
message.
 Feedback: At the end, the receiver responds to the communication
that has been transmitted by the sender. The interpretation can be
done clearly .
Noise:
Noise is that interruption in the communication
process which hinders it . It is a negative component in
communication channel .
7Cs/ Principles of
Communication
 Conciseness: One should be very specific and be able to
communicate in least possible words without letting go the
other virtues of the other Cs.
 Correctness : Using proper language, accurate facts,
figures and words are very essential. If the information
communicated is not correct, the sender loses his
trustworthiness.
 Concreteness: It suggests being specific, exact, and clear
rather than being unclear or general.
 Clarity: The principle of clarity implies 2 branches- 1)
clarity of thought & 2) clarity of expression.
 Completeness: When a business message is included with
facts and information that the receiver requires to know in
order to react in a desired manner, it is considered as a
complete message.
 Consideration: Consideration means allowing. Here, one
should think and see from the point of view of the receiver.
The sender should understand the emotions , needs and
sentiments of the receiver.
 Courtesy: It means friendly and caring attitude towards
others. The communication can be enhanced with polite
manner. A message with courtesy increases business
relations.
COMMUNICATION STRUCTURE IN
ORGANIZATION
 In business organizations, the effectiveness of a
communication system depends upon the extent to which
the necessary information reaches the concerned person at
the right time. This network of information supports the
overall functioning of management by integrating and
coordinating the work force for achieving organizational
objectives.
 Hence, every organization creates a network ( channel) for
information to pass through its different levels of authority.
Chart
 IMPORTANCE OF COMMUNICATION IN
MANAGEMENT
 Basis of decision-making and planning: The quality of the
decision taken by the management is based on the quality of
communication.
 Ensures continuous and efficient working:
Communication makes it possible for the managers to modify
and regulate the activities of employees towards the required
path.
 Ensures proper coordination: Communication helps in
uniting the actions through interchanging thoughts and
information for achieving a common objective. It also
promotes coordination and brings people together.
 Improves managerial efficiency: A manager’s efficiency
depends on his capabilities to communicate effectively with
other employees in the organization.
 Promotes cordial IR: Communication develops mutual understanding
and faith among employees. It facilitates cooperation between employees
and employers.
 Helps in establishing effective leadership: It helps in developing
leadership and brings the leader ( manager) and followers (subordinates)
close to each other.
 Motivates and boosts morale: Transformation is brought about through
communication . It is in the behaviour of employees.
 Ensures effective control: Communication is a tool of control.
Communicating the plans, measuring the performances, providing
information, taking remedial actions, etc are carried out through effective
communication systems.
 Provides job satisfaction: It raises the level of confidence and mutual
trust between employees and the employers.
 Facilitates democratic management: It allows workers to participate in
various functions of management.
 Improves Public relations: A company can
portray a good corporate image to external users
only through communication. Good relations
between management , their employees,
customers, suppliers, shareholders, government
and community can be maintained through
effective communication.
Communication in a cross-cultural
setting
FACTORS AFFECTING COMMUNICATION IN
CROSS-CULTURAL SETTING
 Language : The services of a good translator becomes
absolutely essential while dealing with cross- cultural
business clients.
 Gross translation problems
 Subtle distinctions from language to
language
 Cultural- based variations among
speakers of the same language
 Environment & Technology: The ways in which people
use the resources available to them may vary considerably
from culture to culture. Culturally- ingrained biases
regarding natural and technological environment can
create communication barriers.
 Social organization & history: Social organizations are
culturally determined. The views of one culture on issues
such as educational values, class structure, gender, religion,
job status, racism, attitude towards work etc may be
different from the other cultures.
 Conceptions of authority: Different cultures often view
the distribution of authority in their society differently.
Views on authority affects communication in the business
environment significantly, as it shapes the view of how a
message is received based on the status of the sender to its
receiver.
 Non verbal communication: Knowledge of a culture
conveyed through what a person says represents only a
portion of what that person ahs communicated. Body
language, clothing choices, eye contact, touching
behaviour, personal space- all these communicate certain
information.
 MAKING EFFECTIVE COMMUNICATION IN CROSS
CULTURAL SETTING
 Assume differences until similarity is proven: Most of us
assume that others are more similar to us than they actually are.
But people from different countries are often very different from
us.
 Emphasise description rather than interpretation or
evaluation: One should always rely on description rather than
interpreting or evaluating what someone has said or done.
 Empathy : Before sending a message, put yourself into the
recipient’s shoes. What are his values, experiences, background?
 Be patient: Communication may be tiresome or lengthy. The
behaviour may be inappropriate.
 Establish rules: This is necessary when working in a truly
intercultural team. There is a need to set some ground rules.
 Ask questions: Asking questions stops you from making
assumptions and helps you build on your cultural knowledge.
 Respect : By showing respect, you earn respect and help create
more open relations.
 Humour : Always make sure humour doesn’t become another’s
insult.
 Be positive: When confronted with inter-cultural conflicts, stay
positive, analyze the problem, and work as a team to build
strategies and solutions to ensure things turn out well.
 Self reflect: A good intercultural communicator looks inwards.
Take time to reflect on your own communication and
management style and look for improvements.
Communication in conflict
resolution
What is conflict?
 According to Follet, “ Conflict is the appearance of difference,
difference of opinion and of interests”.
Conflict is a psychological state of mind when people are in a
state of dilemma whether to do a particular task or not. The
domain of work and organization constitutes an arena in which
diverging aims & interests provide sources for conflict.
What is Conflict Resolution?
It is the process of resolving a dispute by meeting at least some
of each side’s needs and addressing their interests. It refers to a
range of processes aimed at alleviating or eliminating sources of
conflict.
 CAUSES OF CONFLICT
 Group identification and intergroup bias: This is the tendency of people to
develop a more positive attitude of their own ‘in group’ and a less positive view
of ‘out group’ of which they are not a member. This tendency appears to develop
even when group membership is essentially arbitrary.
 Interdependence: When individuals or sub units are mutually dependent on
each other to accomplish their own goals, the potential for conflict exists. The
potential for abuse of power in such relationships and the ongoing need for
coordination are potential problem areas.
 Differences in power, status and culture conflict:
 If dependence is not mutual, but one way, an imbalance in power can arise
and the potential for conflict increases.
 When a reversal of expected roles occurs
 When two or more different cultures develop in an organization, clash in
beliefs can result.
 Ambiguity: Ambiguous goals, jurisdictions, or performance
criteria can lead to conflict. Under such condition, the formal and
informal roles that govern interaction break down and it may be
difficult to determine responsibility.
 Scarce resources: Differences in power are magnified when
common resources are in short supply. Resources may also act as
buffers in sufficient quantities, which when removed, allow
conflict to surface.
 COMMUNICATION IN CONFLICT
RESOLUTION
 Communication in conflict resolution plays a key role. It is the most
effective tool to resolve real issues arising between two people or
groups.
 One of the most important reasons for conflict is that groups are not
willing to discuss.
 Meetings or discussions can help people identify real causes of
conflicts and they show the way to resolve issues.
 If two parties continue meeting regularly, the need for third party
mediation doesn’t arise.
 War or aggression has not solved any conflicts between any two
countries, table talks help countries resolve long standing disputes.
 The process of dialogue to settle disputes is the only way out
 Similarly, in running the affairs of the organization, the importance of
communication cannot be overlooked.
CONFLICT RESOLUTION STYLES/
TECHNIQUES
 In the 1970s, Kenneth Thomas and Ralph
Kilmann identified F I V E main styles of dealing
with conflict that vary in their degrees of
cooperativeness and assertiveness. They argued
that people typically have a preferred conflict
resolution style.
 Avoiding: People tending towards this style seek to evade the
conflict entirely. This style is typified by delegating controversial
decisions, accepting default decisions and not wanting to hurt
anyone’s feelings. This is considered as weak and ineffective
approach to follow.
 Accommodation: This style indicates a willingness to meet the
needs of others at the expense of the person’s own needs. The
accommodator often knows when to yield to others, but can be
persuaded to surrender a position even when it is not warranted.
 Competing: A competing style tends to maximize assertiveness
for one’s own position and minimize cooperative responses. This
may result in win-lose outcome. Utmost importance is given to
one’s own goals, facts, and procedures.
 Compromising: Compromise combines immediate levels of
assertiveness and cooperation. Thus it is itself a compromise
between pure competition and pure accommodation.
 Collaborating : In the collaborating mode, both assertiveness
and cooperation are maximised in the hope that an integrative
agreement occurs that fully satisfies the interests of both parties.
It probably works best when the conflict is not intense and when
each party has information that is useful to the other.
 Effective collaboration takes time. But it enhances productivity and
achievement.
 CONFLICT RESOLUTION STRATEGIES
1) Discussion: Often, conflict arises due to lack of
communication. If one feels that his employees are
having conflict because of lack of discussion, then
set a fixed time for it. Encourage the employees to
talk through the problem.
2) Written communication: If an issue has escalated
or one of the employees is causing the problem,
written communication may be a more effective way
of breaking down the wall and resolving the
conflict. Ask each employee to write a letter to the
other, outlining the problem. Letter writing provides
a means to document this communication easily.
3) Mediation : Sometimes, two individuals in a conflict cannot
work it out together without the help of the third party. If your
workers’ conflict has escalated to a point where outside
intervention is necessary, set up a mediation session.
4) Compromise: Ask each person to give a little and take a little
by arranging a compromise between the two. By arranging a
compromise, it can be ensured that both parties’ interests are
satisfied.
5) Voting: The majority always wins. If two employees argue over
a certain issue, set up a vote and allow other employees to have
their say. The numbers will solve the conflict.
COMMUNICATION IN CRISIS
 Communication in a crisis situation requires a high
degree of agility in order to respond to the demands of
the media, as well as particular sensitivity individuals
affected by the situation.
 Maintaining trust is a very essential element in
communication during crisis. This happens especially
in negative and unforeseen events.
 With this point in mind, it is very important to
gather information before making any
communication during crisis. People expect
answers and solutions and situation can turn into
stressful if enough information is not provided.
 Care should be taken to avoid speculations
 Rumours have to be ignored
 If the authorities do not provide the necessary
information, the mass media will try to obtain it
from the other sources.
 Communication ( public relations, issue management,
community relations, media relations ) is associated
with post-crisis management and response.
 Post- crisis management includes the following:
 Providing warnings
 Communicating with various agencies
 Providing clarifications
 Responding to accusations
 Managing the unified public response to the crisis
 FACTORS INFLUENCING COMMUNICATION IN
CRISIS
 Psychology : Cognitive functions are significant in crisis response and coping.
The way a person perceives stressful events influences how that person feels
about these events. When there is no match between a person’s perception of
the meaning of the event and the event itself, it leads to conflict.
 Sociology: Society and its sub-cultures have a great deal of influence over
sociological factors affecting communication in crisis. Status, role, gender,
political and economic factors are key issues here.
 Cultural anthropology: Ethnocentrism fosters a person’s cultural identity
and a sense of belongingness to a social group. But exaggerated ethnocentrism
leads to community problems. These kinds of attitudes may also interfere with
effective communication in crisis situations.
 Ecology : The environment in which help is offered during a crisis plays a huge
role in its success. For example, a busy hospital emergency ward cannot
guarantee a successful crisis communication during crisis.
 Socio-linguistics: Social factors have a great impact on Language. Language is
a window to culture. It is the most observable way to ascertain ideas, values,
beliefs, thoughts and opinions. Insensitivity towards this may prove harmful
during a crisis.
 Communication Barriers
1. Linguistic Barriers:-

The language barrier is one of the main barriers

that limit effective communication. Language is the
most commonly employed tool of communication.

The fact that each major region has its own

language is one of the Barriers to effective
communication.

Sometimes even a thick dialect may render the

communication ineffective.
2. Psychological Barriers
There are various mental and psychological issues
that may be barriers to effective communication.
Some people have stage fear, speech disorders,
phobia, depression etc.
All of these conditions are very difficult to manage
sometimes and will most certainly limit the ease of
communication.
3. Emotional Barriers
The emotional IQ of a person determines the ease and
comfort with which they can communicate. A person who is
emotionally mature will be able to communicate effectively.
On the other hand, people who let their emotions take over
will face certain difficulties.
4. Physical Barriers
They are the most obvious barriers to effective
communication. These barriers are mostly
easily removable in principle at least.
They include barriers like noise, closed doors,
faulty equipment used for communication,
closed cabins, etc. Sometimes, in a large
office, the physical separation between
various employees combined with faulty
equipment may result in severe barriers to
effective communication.
5. Cultural Barriers
As the world is getting more and more
globalized, any large office may have people
from several parts of the world.

Different cultures have a different meaning for

several basic values of society. Dressing,
Religions or lack of them, food, drinks, pets, and
the general behaviour will change drastically
from one culture to another.
6. Organisational Structure Barriers
There are many methods of communication at
an organizational level. Each of these methods
has its own problems and constraints that may
become barriers to effective communication.

Most of these barriers arise because of

misinformation or lack of appropriate
transparency available to the employees.
7. Attitude Barriers
Certain people like to be left alone. They are the introverts
or just people who are not very social. Others like to be
social, both these cases could become a barrier to
communication. Some people have attitude issues, like
huge ego and inconsiderate behaviours.
8. Perception Barriers
Different people perceive the same things differently.
This is a fact which we must consider during
the communication process. Knowledge of the
perception levels of the audience is crucial to effective
communication.
9. Technological Barriers & Socio-religious Barriers:-
The technology is developing fast and as a result, it becomes
difficult to keep up with the newest developments. Hence
sometimes the technological advance may become a barrier.
10. Information Overload
Information overload (also known as infobesity, infoxication,
information anxiety, and information explosion) is the
difficulty in understanding an issue and effectively making
decisions when one has too much information (TMI) about
that issue, and is generally associated with the excessive
quantity of daily information.
11. Poor Retention
• Forgetfulness
• Low Retention.
• Loss of important points of the message.
12. Goal Conflicts

The conflict caused by competing goals could have

both positive and negative features.
It occurs when two or more motives block each
other.
This restricts an individual from taking a decision
about the goal to be achieved either due to the
positive or the negative features present in the
goals.
13. Abstracting :-

Abstracting is the mental process of

evaluating thoughts in terms of the relative
importance of ideas in the context of the total
message. Abstracting acts as a barrier when
a listener approaches a message from a
particular point of view and focuses his or her
attention on selected aspects of the
conversation.
14.Slanting:-
Slant is the biased presentation of a matter by
the speaker. Instead of straight and honest
communication, the speaker may adopt an oblique
manner that could verge on telling a lie.