Principles of Communication in

Business
Chapter 1

Learner Outcome
 Understand and know how to apply the principles
which govern the transmission of information in
business situations.
 Apply knowledge of the purposes of communication.
 Explain why a particular medium is appropriate or
inappropriate in a given situation.
 Explain how relationships between people affect
communication
 Describe simple communications structures.

Purposes of Communication
 Communication is natural – we all do it from the time
of birth
 What is business communication?
 Apply the skills that you already have to a business
context
 Learn new skills

Factors affecting communication







Medium – written, verbal or non-verbal
Formal or informal
Individual or group
Audience diversity
Time available
What time of day
Where are the participants located
How well do we know the person

Factors affecting communication  Is this the first time we have communicated with the person  Status relative to us – superior. attitudes  Why is the communication taking place? . equal  Language skills  Gender. subordinate. age. race. cultural background. nationality.

always ask yourself  WHAT DO I WANT TO ACHIEVE? Clarify Inform PURPOSE Co-operate Instruct Request Persuade Buy / Sell Advertise .Purpose of Communication  Before you begin to communicate.

Using an appropriate Medium or Channel  MEDIUM – Nature of the expression of communication  Written  Oral / Verbal  Non-Verbal MEDIUM  CHANNEL – Actual way the message is passed  Written message – Letter  Oral message – Telephone Call  Non-verbal – Road Sign CHANNEL .

Choice of Medium Factors affecting the choice of communication medium  Formality of message  Formal message – written or oral?  Why?  Amount of detail  Detailed message – written or oral?  Why? .

Choice of Medium Factors affecting the choice of communication medium  Urgency of message  Urgent message – written or oral?  Why?  Size of audience  Large number of people  Orally – speech / television/ radio  Written – Notice / email / newspaper .

Communication Channels Written Oral Informal Note Unplanned Encounter Memo Meeting on individuals Notice Briefing Meeting Letter Full staff/workers meeting Email Interviews Report Formal lecture or presentation Press release Telephone call Questionnaire Teleconference . Videoconference Skype Skype Text messaging Press conference .

Advantages and Disadvantages Read study Manual page 4 to 9 Channel : Advantages Disadvantages .

Characteristics of Written Communication Advantages Disadvantages Permanent Record Permanency can sometimes be a disadvantage Expression can be controlled more carefully Lacks the personal touch Personal feelings is removed from Written words can be the exchange misinterpreted A meeting is not needed Lack of feedback .

Characteristics of Oral Communication Advantages Disadvantages Feedback ensures comprehension No written record Use of body language Time-consuming Immediacy Emotional Involvement Courtesy .

com/2012/12/05/communication/ .temporary There is little time urgency There is time urgency You do not need immediate feedback You need immediate feedback The ideas are complicated The ideas are simple or can be made simple with explanations http://agilevietnam.Written vs Oral Communication Use Written Communication When: Use Oral Communication When: Conveying facts Conveying emotions and feelings The message needs to become part of a permanent file The message does not need to be permanent .

Non-verbal Communication  Body Language  Appearance and grooming  Physical Surrounding .

Relationships and Communication  Autocratic Management Style     In control Does not consult staff before making decisions Does not give staff independence or responsibility Shares information on a “need to know” basis Advantages Decisions are taken faster and staff are less likely to question them Disadvantages Manager may be insecure hence not a good leader Staff will respect or fear manager Decisions lack “check and balance” Staff tend to work hard Staff are not close to manager hence grapevine can develop .

may waste managers time with trivial matters .Relationships and Communication  Democratic Management Style  Consults and involves staff in decision making  Friendly Advantages Disadvantages Seen as part of a tem Staff do not fear manager and may lose respect Staff will feel involved and can become more motivated Staff may work less efficiently Staff feel free to approach manager because of relaxed relationship Staff may become too familiar with the manager and difficult to discipline Because manager is easy to approach.

smile. easy to understand language .Relationships and Communication  A good first impression helps develop a good relationship  Make a good first impression  You and your requests will be taken seriously  Oral  Speak clearly. open body language  Written  Neat. use warm friendly tone. well organized. legible.

com/blog/creative-modern-officedesigns/  Open.hongkiat.plan or Cellular .Relationships and Communication  Office Layout  http://www.

Open – plan Office Layout Advantages Creates a sense of team teamwork Disadvantages Lots of noise and disturbance People can talk to each other and Conflicts and petty talk more interact very easily .Easy to likely motivate each other Easy for manager to supervise staff Manager does not have privacy to do confidential work Easy for staff to approach manager Staff can become too familiar with manager and lose respect .

Cellular Office Layout Advantages Disadvantages Easy to concentrate on your work Isolates colleagues hence lack of interaction Separate rooms give privacy Difficult to supervise staff hence staff may not work as hard Fewer casual time-wasting conversations Less staff interaction hence less opportunity for creative interaction .

Furniture and Equipment .

g.Communications Cycle To inform Written E. Letter Purpose NonOral Verbal E. Meeting To initiate action Gestures Information Encoding Sender Message Decoding Medium / Channel Message Receiver Feedback Positive Negative Motivation .g.g. To influence E.

Communications Systems  Vertical Communication  Horizontal Communication  Diagonal Communication .

report.Communications Systems Formal Communication  Any message sent and received through official channels using the established office communication channels  Memo. official meeting  Advantage  Carries authority  Detailed messages can be passed  Stored as a permanent record  Disadvantage  May not be the best way to motivate employees and close knit groups . letter.

Communications Systems Informal Communication  Usually verbal  Used to pass unofficial information between individuals and small groups  Has no legal force  Grapevine .

Communications Systems Grapevine  Office gossip  Information in grapevine is usually distorted .

 To sound out opinion before action is taken.  To encourage "open door" availability at all levels of staff to discuss issues that are worrying them.Grapevine  Does not contain the authority stamp so management can use grapevine for their advantage  Management can use the informal network of communication:  By using informal groups in a semi-formal capacity to "brainstorm" new ideas.  To encourage participation in decision-making and to get feedback about current situations and problems at the workplace. .

Grapevine Advantages Disadvantages Information is carried rapidly Mostly rumors so may damage goodwill of the company Creates a sense of unity among employees Conflicts within employees Can be used by managers to test opinions and changes before introducing formally Employees may become unproductive since lots of time wasted in gossip .

Communication Networks  The actual pattern and flow of communication connecting senders and receivers  Networks of communication may be:  Centralised .each member of the group has access to the ideas of all other members.where a leader directs the flow of communication  Decentralised . .

The Wheel  Figure of authority (A) passes information to others  A has complete control  Each person can only communicate with A  Most structured and centralised  Advantage  Saves time in decision making  Disadvantage  Low job satisfaction .

The Chain  Seen in vertical communication  A cannot check whether E received the message until feedback is received through the chain  Can produce distortion as the message is passed along the chain  Very slow  Example: Teacher reports to department head. Principle reports to Superintendent . department head reports to principal.

The Y  Information shared at the same time through two channels A and B  C plays a central role  More like the wheel but slightly less centralised .

The Circle  Similar to chain but feedback is direct  Communication can pass in either direction  More democratic  Symbolic of horizontal and decentralised communication  Every member given equal communication opportunity .

The Star  Most decentralised  No clear leader. all parties free to communicate with any or all of the others  Feedback is fast  Can be an informal network grapevine .

Chain) more effective in accomplishing simple tasks  Decentralised networks are more effective in complex tasks  Group morale in decentralised networks are higher than in centralised networks .Communication Networks  What network is the best?  Depends on the situation  Centralised networks (Wheel. Y.

Communication Networks  The structure of the network influences      Speed Accuracy Morale Leadership Flexibility .

Chow and Dev all report to the same manager at the company's head office. Chow and Dev all work from home. The wheel D. Adam reports to Boris and has no communication with the manager at head office. Boris. Boris. The circle C. The chain B. Any communications between them take place through their manager. Adam. Chow and Dev never contact one another directly. The Y .  The pattern of communication described above is represented by which of the following? A. Boris.

drawings to show how each of the following three communications structures operates. Q1 Successful communication depends on a number of variable factors. (a) Show that you understand what is meant by a “communications cycle” between a sender and a receiver. and explain in detail. labeled drawing to illustrate and make clear what you have written above in your answer to question 1(a). ( 8 marks) (b) Use a neat. stage by stage. and state also a strength or a weakness of each one: ( 9 marks) (i) chain (ii) circle (iii) wheel . how a complete cycle will occur.Dec 2005. (3 marks) (c) Use words and simple. but clear.

June 2008. Q6 (c)Describe a situation in which a “star” communication network is appropriate. Use a simple drawing to illustrate this network. (6 marks) . and say how such a network functions.