Meaning of Business Communication

Network:
The routes or paths through which communication takes place
are called ‘channels’ and the sum total of the channels is known
as ‘communication network’.

It refers to the pattern of channels of communication between

the participants.

A business communication network means the pattern of

channels built up in communicating the messages relating to
business. Persons related to business such as managers,
employees, creditors, debtors, suppliers, shareholders,
government, and so on exchange information, ideas, facts, news,
etc. among themselves for carrying out day-today work of the
business.

Innumerable and continuous flow of communication takes place

daily within and outside the organisation, and at the personal and
group levels of persons related to business by formal and
informal means. Business communication network is often
compared to the artery in the human body.

As blood flows all over the body through the artery messages,
orders, instructions, information, proposals, reports, etc. are
communicated to different persons working in various positions
in a business organisation through the communication network.
It is very important in as much as the success of an organisation
is concerned.

Classification of Business Communication Network:

Business communication network can be divided into the

following two parts:
i. Formal network.

ii. Informal network.

i. Formal Business Communication Network:

Formal business communication network is one which follows

recognised official channels in the organisation chart. Orders,
instructions, messages, etc. are sent from top to the bottom level
following the positional hierarchy. When direction is given by the
manager to the deputy manager, the deputy manager to the
supervisor, the supervisor to the worker—these are the cases of
formal network.

Managers of two departments or supervisors of different

departments may need to communicate through horizontal
channels as a part of their official duty. Thus,-formal network of
communication includes the channels of all directions—
downward, upward, and horizontal.

This network helps to keep control on, allocate specific

responsibility to and perform routine work by the employees. The
superiors can concentrate on other important work assigning the
routine work to the subordinates through this network. Flow of
information in this network may be obstructed and interrupted at
various centres and the desired result may not be obtained.

ii. Informal Business Communication Network:

No structured pattern is followed in such a network. It works side

by side with the formal network. While formal network is the
artery, informal network is like that of veins in a human body.
Informal network is unorganised and complex in nature. A social
relationship with a number of people working together develops
and a large number of informal communications take place.

The subject- matter of such communication includes any topic

starting from domestic problem to official scandal. This is why
informal communication is called ‘grapevine’ as it may swiftly
spread in any direction like grapevine.

The speed of communication in an informal network is very high.

Rumors, stories, scoop news, secret and confidential information
are spread easily and speedily through this network. Care should
be taken to prevent the damaging effect of this network.

Formal Communication: Meaning,

Characteristics, Advantages
Limitations and Types

Formal communication refers to interchange of information

officially. The flow of communication is controlled and is a
deliberate effort. This makes it possible for the information to
reach the desired place without any hindrance, at a little cost
and in a proper way. This is also known as ‘Through Proper
Channel Communication.’
Characteristics

Following are the chief characteristics of the formal

communication:

(1) Written and Oral:

Formal communication can both be written and oral. Daily works

are handled through oral communication, while the policy
matters require written communication.

(2) Formal Relations:

This communication is adopted among those employees where

formal relations have been established by the organisation. The
sender and the receiver have some sort of organisational
relations.

(3) Prescribed Path:

The communication has to pass through a definite channel while

moving from one person to another. For example, to convey the
feelings of a worker to the manager, the foreman’s help has to be
sought.

(4) Organisational Message:

This channel is concerned with the authorised organisational

messages only and the personal messages are out of its
jurisdiction.

(5) Deliberate Effort:

This channel of communication is not established automatically

but effort has to be made for its creation. It is decided keeping in
view the objectives of the organisation.

Advantages

The formal communication has the following advantages:

(1) Maintenance of Authority of the Officers:

Formal communication maintains constant relations among the

superiors and the subordinates as a result of whom the dignity of
the line superiors is maintained. Consequently, it is convenient to
control the subordinates and fix their responsibility which is
absolutely needed for effective and successful control.

(2) Clear and Effective Communication:

In formal communication, there is a direct contact among the

managers and the subordinates. Both understand the capability,
habits, feelings, etc. of one another. Managers know as to when
and under which conditions their subordinates need information.
In this way, this communication is capable of making available
timely information. Hence, it is clear and effective.

(3) Orderly Flow of Information:

The information has to pass through a definite route from one

person to another. Hence, the flow of information is systematic.

(4) Easy Knowledge of Source of Information:

In this type of communication, the source of each information

can be easily located.

Limitations

Following are the disadvantages or limitations of the formal

communication:

(1) Overload of Work:

In a modern business organisation much information, many

messages and other things have to be communicated. Under
formal communication, they are routed through a definite channel
and this consumes much of the time of the superiors and thus
some other important works are left unattended.

(2) Distortion of Information:

This method can be a hindrance in the flow of information.

Sometimes the distance between the sender and the receiver is
so big that the information has to pass through many hands and
by the time it reaches the receiver it is distorted. Thus it fails to
serve its purpose.

(3) Indifferent Officers:

The officers do not pay much attention to the suggestions and

complaints of the subordinates. In such a case a subordinate may
come lose his faith in the effectiveness of communication.

Types of Formal Communication

Formal communication is of two types:

(1) Vertical Communication:

(i) Downward Communication

(ii) Upward Communication

(2) Horizontal Communication.

(1) Vertical Communication

Vertical communication is of the following two types:

(i) Downward Communication:

The communication by top hierarchy with their subordinates is

called downward communication. This communication includes
orders, rules, information, policies, instructions, etc. The chief
advantage of the downward communication is that the
subordinates get useful timely information which helps them in
their work performance,

(ii) Upward Communication:

This is quite the reverse of the downward communication. This

flows from the subordinates to the superiors. The subject-matter
of this communication includes suggestions, reactions, reports,
complaints, etc. This sort of communication helps the superiors
in taking decisions.
(2) Horizontal Communication

Horizontal communication takes place when two individuals of

the same level exchange information. Horizontal communication
is used by the same level officers to solve the problems of similar
nature and profit by the experience of other people. The subject-
matter of horizontal communication includes information,
requests, suggestions, mutual problems and coordination-related
information.

Formal Communication Network

The way in which formal communication is done, is known as

formal communication network. Formal communication can be
done in different ways-it may be vertical communication or
horizontal communication. The different forms of formal
communication network have been shown in the following
diagram:

(1) Chain Communication:

Chain communication refers to the communication between a

superior and a subordinate. All the people in an organisation from
top to bottom are linked with the help of a scalar chain as has
been shown in diagram (1). A is placed at the highest rank, B is a
subordinate of A, C is the subordinate of B, D is the subordinate
of C and E is the subordinate of D.
(2) Wheel Communication:

In this form of communication, all the subordinates of a superior

talk to one another through his medium. The superior works as a
hub of a wheel. In the diagram (2), A is the superior and B, C, D
and E are the subordinates. All the four subordinates
communicate through the medium of A.

(3) Circular Communication:

This communication takes place among the members of a group.

Every member of a group can communicate with the nearest two
members. In the diagram (3), A can have communication with B
and E. Similarly, B can have communication with A and C. The
same applies to all the members of the group. In this case the
communication moves at a slow speed.

(4) Free Flow Communication:

This form of communication also takes place among the different

members of the group. Its special feature is that every member of
the group can talk to all the other people in the group.

This has been clarified in diagram (4). A can talk directly to B, C,

D, E. In the same way B can talk directly to A, C, D, and E. The
same applies to all the members of the group. In this case, the
communication moves at a rapid pace.

(5) Inverted ‘V’ Communication:

In this form of communication, a subordinate is permitted to
communicate with the boss of his boss. In this form of
communication the messages move at a rapid speed, In the
diagram (5), C and D are the subordinate of B who, in turn, is a
subordinate of A. Here C and D can talk directly to A who
happens to be the boss of B.

Informal Communication Network; types.

Definition: The Informal Channel Network or Grapevine Network

shows the pattern of the communication, i.e. how the informal
communication passes from person to person.

Specialists have identified four distinct types of informal

communication network, which are listed below:

Single Strand Network: Under this communication pattern, the

information flows from one person to the next person in the
network. Such as, one person will give information to another
person who will communicate it to the next person and similarly the
third person will also communicate the same message to the next
person in the network and so on. This type of chain is less reliable
and accurate to pass on the message. Here, the communication
process is linear.

Gossip Chain Network: In the gossip chain network, there is an

individual who tells the message to all other members in the
network directly. He is generally the central person who seeks out
and transmits information to all that he has obtained. Here, every
person in the network communicates with each other informally.
This network is often used when the subject matter is unrelated to
the nature of the job.

Probability Chain Network: Under this communication pattern the

information passes randomly from persons to persons. Such as,
there is an individual who acts as a source of message selects any
person randomly in his network to communicate the message. That
second person will again, select another person randomly and
passes on the message to him, likewise the communication flows to
different people chosen randomly. Here, the source of information
for each member of the network is different. This communication
pattern is used when the information is interesting, but not
significant.

Cluster Chain Network: In the cluster chain network, there is an

individual who, acts as a source of a message, transmits
information to the pre-selected group of individuals out of whom few
individuals again tell the same message to other selected group of
individuals. Likewise, the chain continues, and the message
reaches to all in the network. This pattern is similar to the
telephone tree, wherein one person calls other two persons, then
these two persons call other three persons and again these three
persons are expected to call other three persons. Likewise, the
information gets transmitted to all persons connected to the
telephone network. This is the most common form of informal
communication network.

Thus, several informal communication networks get created in an

organization when people interact with each other irrespective of
their hierarchical positions.

What is the meaning of online

information and database
access or retrieval services?
Online information and database access or retrieval services
means services whose delivery is mediated by information
technology over the internet or an electronic network and the
nature of which renders their supply essentially automated and
involving minimal human intervention and impossible to ensure in
the absence of information technology and includes electronic
services such as. –
i. advertising on the internet;
ii. providing cloud services;
iii. provision of e-books, movie, music, software and other
intangibles through telecommunication networks or internet;
iv. providing data or information, retrievable or otherwise, to any
person in electronic form through a computer network;
v. online supplies of digital content (movies, television shows,
music and the like);
vi. digital data storage;
vii. online gaming;

Place of supply for online information and database access or

retrieval services is location of recipient of services.

Electronic bulletin boards

Electronic bulletin boards (also known as message boards or
computer forums) are communication systems online where one
can share, request, or discuss information on just about any
topic. While e-mail is a way to converse privately with one or
more people over the Internet, electronic bulletin boards are
totally public. Any message posted on one can be read (and
responded to) by anyone else in the world who has access to the
Internet or the particular online service that is providing the
message board. A large collection of electronic bulletin boards is
known as a newsgroup. Thousands of newsgroups exist on the
World Wide Web, each dedicated to a single topic, making it
easier for one to navigate through the information contained on
it.
Electronic bulletin boards operate in a very simple manner. Any
person can start a discussion on a particular topic and then wait
for replies. These lines of discussion are known as threads. Some
threads can go on endlessly, while other posts run the risk of
getting no replies at all. The longer threads tend to find people
responding to not only the original post, but to the subsequent
replies as well. This can often lead to some confusion, since later
posts in longer threads often have nothing to do with the original
subject.
The main advantage of electronic bulletin boards is the fact that
they are so public. Because of their accessibility, they give users
the opportunity to get information from a huge number of
sources, each with the possibility of a unique, original, and even
global perspective. There are several disadvantages to electronic
bulletin boards as well. Since they are so public and often
unedited, they are almost like an open invitation for
troublemakers whose sole intention seems to be to stir things up.
The proliferation of unwanted ads (also known as spamming) is
another problem for computer forums. Some online providers like
AOL have board hosts whose sole job is to keep the peace and
weed out irritating posts and threads. Also, most electronic
bulletin boards do not keep an archive of each thread and post.
Some may disappear over a period of time as new threads are
started.

ELECTRONIC BULLETIN BOARDS AND THE

SMALL BUSINESS OWNER
While electronic bulletin boards are often used for educational
and recreational purposes, they also can come in handy for small
business owners and self employed persons. Small businesses
can discuss strategies and trends in the marketplace, recruit
workers, place ads, get technical support, and share information
on just about any subject that is pertinent to their business.
Businesses can also set up their own electronic bulletin boards
to help their operations run a bit more smoothly, but should be
aware that messages posted there could lead to a variety of legal
problems, including libel and sexual harassment.
Small business owners are also standing up and taking notice as
to how electronic bulletin board messages are affecting their
companies' standing in the stock market, as well as their
reputations and branding image. Negative posts (whether they
are true or not) can seriously affect the stock value of a
company. As Patrick Collinson mentioned in an article that
appeared in Retail Financial Strategies , a British company
called IBNet is about to start marketing software which will alert
a company each time any mention of it appears anywhere on the
Internet. When the company learns that the information is false,
they can request that it be removed and seek to identify who is
posting the information. Collinson also mentions that Internet
detectives can be employed to track down where such
information is originating