106, S.D.

S Jayasinghe Mw,
Kohuwela. Nugegoda A/S & A/L Cambridge
337/1 Negombo Road, Wattala
Business Communication

Communication in simple is the exchange of information between people or groups.

Communication is effective only if the message has been received and understood by the
receiver, and the sender knows it has been understood. If the message has been sent but there
has been no form of feedback, then the effectiveness of the communication cannot be judged.

In an effective communication, barriers must be reduced.

Why is effective communication important?

The quality and effectiveness of internal communication can have an impact on many areas
of the business.

• Staff Motivation – and thus labour productivity. If staffs are encouraged to participate
through group discussion, for example, then effective communication will aid
motivation. Workers feel out of touch and isolated if there is poor communication.
• The number and quality of ideas generated by the staff – if staff asked for their ideas,
then this can assist with problem solving.
• Speed of decision making – the more people who have to receive and react to a
message, then the slower will be the decision making system.
• Speed of response to market changes – if changes in consumer decisions take a long
time to be communicated to the decision to the decision makers at the head of an
organization, then the business will be slow to respond with appropriate products.

1
Sameer Anis
CIMA Passed Finalist, Post Graduate Diploma (University of West London)
106, S.D.S Jayasinghe Mw,
Kohuwela. Nugegoda A/S & A/L Cambridge
337/1 Negombo Road, Wattala
• Reduces the risk of errors – incorrect understanding of a poorly expressed
message will lead to incorrect responses. This could lead to many internal problems,
such as the wrong product being made or incorrect prices being set.
• Effective coordination between departments – this will be helped by good
communication links between them.

Communication methods.

1) Oral communication

This can be one-to-one conversation, interviews, appraisal sessions or team briefings. It

allows for two way communication and feedback and this should encourage good motivation.
However some oral communication can be ambiguous, there may be no written record of
what was said, it might not be appropriate for complicated and technical matters and it can be
costly in terms of time.

Benefits –

• Two way communication.

• Instant feedback
• Body language can be observed.

Limitations

• No written records and therefore there can be disputes later on.

2) Written communication.

Many managers still like everything to be in writing. They will, therefore, tend to use letters,
memos, notices on board, reports, etc. Written messages can be referred to more than once,
they should be accurate record and they allow or the transmission of detailed. However they
eliminate supporting body language, does not allow for immediate feedback and there is often
no evidence that the message has been received or understood.

2
Sameer Anis
CIMA Passed Finalist, Post Graduate Diploma (University of West London)
106, S.D.S Jayasinghe Mw,
Kohuwela. Nugegoda A/S & A/L Cambridge
337/1 Negombo Road, Wattala
Benefits

• A permanent record is available.

• It can be referred at any time.
• Less chances for dispute.

Limitations

• Slow
• No instant feedback.
• Body language cannot be observed

3) Electronic media.

These have the benefit of speed and are often combined with a written record. Internet and
emails use, intranet, fax messages, video conferencing and mobile telephones have all
revolutionised business communication in recent years.

Benefits

• Very fast
• It’s cost effective. E.g.: Email
• It’s in writing and can be saved for future references
• Can be sent at any time – greater flexibility

Limitations

• Staffs require training.

• There may be less face to face contact which means social needs may not be
completely fulfilled.
• Security issues – e.g.: Hacking, virus
• So much of information is available on the internet, it can create information overload
and employees may not be able to focus on the information they require.

3
Sameer Anis
CIMA Passed Finalist, Post Graduate Diploma (University of West London)
106, S.D.S Jayasinghe Mw,
Kohuwela. Nugegoda A/S & A/L Cambridge
337/1 Negombo Road, Wattala

4) Visual communication

This can be used to accompany and support oral, written or electronic communication.
Diagrams, pictures, charts and pages of computer images can be presented by using overhead
projections, interactive whiteboards, etc.

Benefits

• It captures the attention of the viewer. E.g.: Video

• It stimulates greater interest
• Easy to remember

Limitations

• Sometimes the video may not always be clear.

• If a person is not watching the video closely he may miss something.

Barriers to communication

A barrier is something that causes communication to fail.

1. The medium chosen to communicate may not be appropriate. If an urgent message is

to be sent, a memo will not serve the purpose, instead a mobile phone will help the
sender reach the receiver quickly.
2. The receiver may forget a part of long message.
3. Incomplete message – “meet me”, the specific date is not given nor time.
4. The use of technical jargon/language – when technical language is used a layman
cannot comprehend because he does not know the meaning of technical words.
5. Information overload – there is so much of information. The receiver might overlook
the important items.
6. The channel of communication is too long – takes a long time to reach the destination.
It also tends to get distorted.
7. Lack of trust – if a person is not trusted even if he tells the truth, it may not be
believed.

4
Sameer Anis
CIMA Passed Finalist, Post Graduate Diploma (University of West London)
106, S.D.S Jayasinghe Mw,
Kohuwela. Nugegoda A/S & A/L Cambridge
337/1 Negombo Road, Wattala
8. Demotivated staff – if they are demotivated they may not carry out the
instruction which may lead to communication breakdown.
9. Physical barrier – a meeting cannot be conducted when there is a lot of noise outside.
10. Distance – may not be an issue nowadays because communication technology has
advanced. E.g.: video conferencing.

Reducing communication barriers

In order to communicate effectively and eliminate the barriers the following steps must be
taken.

• The message that is sent should be clear and precise.

• Keep the communication channel as short as possible, to ensure the message is

received quickly and accurately.
• Choose the appropriate medium.
• Make sure you get a feedback from the receiver.
• Avoid using technical jargons.
• Establish trust between sender and receiver.
• Ensure that physical conditions are appropriate, e.g.: no noise outside.
• The leader must consult all his staff and get them to participate in decision making.

Communication direction

There can be 2 directions.

1. Vertical communication
2. Horizontal communication.

5
Sameer Anis
CIMA Passed Finalist, Post Graduate Diploma (University of West London)
106, S.D.S Jayasinghe Mw,
Kohuwela. Nugegoda A/S & A/L Cambridge
337/1 Negombo Road, Wattala
Vertical communication

• This is the communication between superior and subordinate.

• If the superior is giving instructions to his staff – downward communication.
• If the subordinates are giving feedback to the superior – upward communication.

Horizontal communication
• When 2 individuals or departments at the same level communicate, it’s horizontal.
• Horizontal communication leads to increase in team work. Also when departments
communicate horizontally it leads to better coordination.

Relationship between motivation and effective communication

• If staff are motivated they are more likely to listen and act on messages. This leads to
effective communication.

• If there is effective communication between the staff and the management, it’ll lead to
the building of trust and better relationships which will lead to motivation.

• Good communication fulfils Maslow’s social needs.

Factors influencing choice of appropriate media.

Managers will consider these factors before deciding on the best communication method.

• The importance of a written record that the messages has been sent and received, for
example an important new contract.
• Cost – electronic media has a high initial capital investment but once implemented,
emails are very cost effective.
• Speed – electronic means can be very quick
• Quantity of data to be communicated.
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Sameer Anis
CIMA Passed Finalist, Post Graduate Diploma (University of West London)
106, S.D.S Jayasinghe Mw,
Kohuwela. Nugegoda A/S & A/L Cambridge
337/1 Negombo Road, Wattala
Formal communication networks

This means the official communication channel and routes used within the organisation.

1) The chain network.

Message originates at the top and passes down. It resembles autocratic style. One way
communication. People at the lower level of the chain are demotivated. The leader will have
good control. Not much participation, no exchange of information.

2) The vertical network.

The owner has subordinates and communicates with them directly but individually – there is
no group network here. This method could be used in a small department or any situation
with a narrow span of control.

3) The integrated or connected network.

7
Sameer Anis
CIMA Passed Finalist, Post Graduate Diploma (University of West London)
106, S.D.S Jayasinghe Mw,
Kohuwela. Nugegoda A/S & A/L Cambridge
337/1 Negombo Road, Wattala

Each person has access to all others. Therefore the level of participation is very high. There
will be a lot of exchange of information which will help the team to solve complex problems
easily. However, due to the extensive participation there will be much discussion which could
slow down decision making. The level of motivation is very high due to the active
involvement of the staff.

Informal communication

Definition – unofficial channels of communication that exists between informal groups

within an organisation.

This is the unofficial communication in every organisation – it takes place in the rest room or
over the lunch table, in the queue next to the photocopier or in meetings before the official
agenda begins. It may be no more than gossip but a lot of it can be well informed information
about the organisation too.

Some managers want to reduce informal Some managers think informal communication
communication as much as possible. serves a useful purposes.

8
Sameer Anis
CIMA Passed Finalist, Post Graduate Diploma (University of West London)