BUW 123

USINESS COMMUNICATIO
By:
Abdul Rahman Abdul
Manaf

CHAPTER 1:
INTRODUCTION TO
BUSINESS
COMMUNICATION

WHAT IS
BUSINESS?

Firm | Enterprise | Organisation | Cooperative |

Services | Customers| Profit | Professional

Definition of Business
A person, partnership, or corporation engaged in
commerce, manufacturing, or a service; profitseeking enterprise or concern.
An organisation designed to provide goods and/or
services to consumers.
The management of individuals to maintain
collective productivity to accomplish particular
creative and productive goals (usually to generate
profit)

Classifications
Businesses are classified in many ways. One of
the most common focuses on the primary profitgenerating activities of a business:
1.
2.
3.
4.
5.
6.
7.
8.

Agriculture and mining businesses

Financial businesses
Manufacturers produce products
Real estate businesses
Retailers and Distributors
Service Businesses
Transportation businesses
Utilities

Management
The study of the efficient and effective operation
of a business is called management.
Management, among others focus on
organisational behavior to achieve individual and
group dynamics in an organizational setting.
It is through this context that communication
plays a significant role in shaping the way people
communicate in business setting.

WHAT IS
COMMUNICATION?

Transfer information | Process | Sender | Receiver

| Meaning | Understanding | Message

Definition of
Communication
Transfer of information from one source to another
Two-way process
A process whereby information is encoded and imparted
by sender to a receiver via a channel/medium
A process by which we assign and convey meaning in an
attempt to create shared understanding

As such
Communication is a process to
create, maintain or demolish
meaningful contact between
sources and receivers through
speaking, writing or signaling

Based on the definition

The following principles apply:
1. Communication is a process
2. Communication involves meaning
3. Communication may be positive,
negative or neutral
4. Communication may involve one or
more channels

Eight Elements
of the Communication Process
1.
2.
3.
4.
5.
6.
7.
8.

Source
Encoding
Message
Channel
Decoding
Receiver
Feedback
Noise

The Communication Process

1. Sources

Elements of
Communication

Any process of communication must begin with a source the

initiator (a speaker / writer)
For communication to occur, someone must originate the
message i.e. the source
All message by the source will go through a process of encoding

2. Encode
Raw entity, in the form of idea
Translation process of the intended message
Communication process cannot occur until the source translate
what is within to an external message.

3.Message

Elements of
Communication

An information which is sent from a source to a receiver.

Any thought or idea expressed and prepared in a form
suitable for transmission by any means of communication.
2 types of message:
a) Verbal

A verbal message is an exchange of information using words.

Examples include face-to-face communication, telephone
calls, voicemails, etc.
b) Nonverbal
A nonverbal message is communicated through actions or
behaviors rather than words. Examples include the use of
body language and the actions made by an individual or idea.

Elements of
Communication
4. Channels

Medium through the message is sent.

Electronic channels: telephones,
television, radio, e-mail, etc.
Written channels: letters, memos,
magazines, reports, manuals, books,
etc.
Oral channels: conversation, discussion,
facial expression, tone of voice, etc.

Elements of
Communication
5. Decode

At the receivers end.

Converting the idea into words or gestures that
will convey meaning.

6. Receiver

The recipient of the message.

Receivers may be the readers of the letters,
memos, or listener of oral communication during
the meeting.

Elements of
Communication
7. Feedback

Response from the other party to the

message sent by the speaker.
5 characteristics of feedback:
a)
b)
c)
d)
e)

Type : verbal / nonverbal

Time: immediate / delayed
Channel: oral / written
Direction: positive / negative / neutral
Quality: clear / ambiguous

Elements of
Communication
8. Noise

Anything that disrupts communications

process.
3 types of noise:

Physical loud music, people talking loudly, etc.

Psychological - preconceived notions we bring to
conversations, such as racial stereotypes,
reputations, biases, and assumptions.
Semantic - caused by the sender. i.e, the encoder and
occur by speaking grammar that the decoder cannot
understand and by speaking technical language

The Communication Process

COMMUNICATING IN
ORGANISATIONS
Business communicators create and exchange
knowledge that are critical to fostering innovation. This
act of exchanging information is executed by
communicating internally and externally.

The process of establishing

a common understanding
between or among people
within business
environment.
-Definition of Business
Communication

Business Communication
90% of all business transactions involve written
communication.
Most managers and executives in todays
business setting now write their own email,
memos and letters on their computer as it is
faster and more efficient.
As such, the requisition and skill in business
communication has become the essential for all
to acquire.

Business Communication
In the challenging world of business, a
company must always remain competitive.
To keep it in line with others, the ability to
create and exchange innovative
knowledge is crucial.
The act of exchanging information is
mediated through communication by
means of internal or external

Internal

The bottom line is to identify the communication needs to

different audiences and in different contexts with the aim at
building awareness to the audiences.

Goals of Business
Communication

The sender has primary responsibility

for communication process:
1.
2.
3.
4.

Receiver understanding
Receiver response
Favourable relationship
Organisational goodwill

Patterns of Business Comm.

Internal Communication Pattern
Organisational communication flows in all directions.
Network may be planned or unplanned.

Formal Communication
Business related.
Planned.
Flows in all directions.

Informal Communication
Is not planned by the organisation
Flows in all directions.
Develops and maintains positive human relationships

Patterns of Business
Comm.
Serial Communication

Chain transmission of information.

Messages are usually changed ~ as they are sent from
one member of the chain to another.
Each sender may omit, modify, or add details to the
messages.
Four techniques to assist in maintaining the accuracy of
theSENDERS
message:SHOULD:
RECEIVERS SHOULD:
Keep the message
simple

Take notes

Request Feedback

Repeat the message

Patterns of Business
Comm.

External Communication Patterns

Organisations communicate with many
external publics.
External communication can be formal
or informal.
E.g. customers, suppliers, competitors,
the media, governmental agencies, and
general public.
May be oral or written.

Type of Business Communication

Business Communication is goal oriented. The rules,
regulations and policies of a company have to be
communicated to people within and outside the
organization.
Business Communication is regulated by certain rules and
norms. In early times, business communication was
limited to paper-work, telephone calls etc. But now with
advent of technology, we have cell phones, video
conferencing, emails, satellite communication to support
business communication. Effective business
communication helps in building goodwill of an
organization.

Business Communication can be of

two types:

Oral Communication - An oral

communication can be formal or informal.
Generally business communication is a formal
means of communication, like : meetings,
interviews, group discussion, speeches etc. An
example of Informal business communication
would be - Grapevine.
Written Communication - Written means of
business communication includes - agenda,
reports, manuals etc.

Oral Communication
Oral communication implies communication through
mouth.
It includes individuals conversing with each other, be
it direct conversation or telephonic conversation.
Speeches, presentations, discussions are all forms of
oral communication.
Oral communication is generally recommended when
the communication matter is of temporary kind or
where a direct interaction is required. Face to face
communication (meetings, lectures, conferences,
interviews, etc.) is significant so as to build a rapport
and trust.

Advantages of Oral
Communication

1. There is high level of understanding and

transparency in oral communication as it
is interpersonal.
2. There is no element of rigidity in oral
communication. There is flexibility for
allowing changes in the decisions
previously taken.

Advantages of Oral Communication

cont
3. The feedback is spontaneous in case of
oral communication. Thus, decisions can
be made quickly without any delay.

4. Oral communication is not only time

saving, but it also saves upon money and
efforts.
5. Oral communication is best in case of
problem resolution. The conflicts, disputes
and many issues/differences can be put to
an end by talking them over.

Advantages of Oral Communication

cont
6. Oral communication is an essential for
teamwork and group energy.
7. Oral communication promotes a receptive
and encouraging morale among
organizational employees.
8. Oral communication can be best used to
transfer private and confidential
information/matter.

Disadvantages/Limitations of Oral Communication

1) Relying only on oral communication may

not be sufficient as business
communication is formal and very
organized.
2) Oral communication is less authentic
than written communication as they are
informal and not as organized as written
communication.

Disadvantages/Limitations of Oral
Communication Cont..
3. Oral communication is time-saving as far
as daily interactions are concerned, but
in case of meetings, long speeches
consume lot of time and are
unproductive at times.
4. Oral communications are not easy to
maintain and thus they are unsteady.

Disadvantages/Limitations of Oral
Communication Cont..
5) There may be misunderstandings as the information
is not complete and may lack essentials.
6) It requires attentiveness and great receptivity on
part of the receivers /audience.
7) Oral communication (such as speeches) is not
frequently used as legal records except in
investigation work.

Written communication
Written communication has great
significance in todays business world.
It is an innovative activity of the mind.
Effective written communication is
essential for preparing worthy promotional
materials for business development.
Speech came before writing. But writing is
more unique and formal than speech.

Written Communication cont

Effective writing involves careful choice of
words, their organization in correct order in
sentences formation as well as cohesive
composition of sentences.
Writing is more valid and reliable than
speech. But while speech is spontaneous,
writing causes delay and takes time as
feedback is not immediate.

Advantages of Written
Communication

1) Written communication helps in laying down

apparent principles, policies and rules for
running of an organization.
2) It is a permanent means of communication.
Thus, it is useful where record maintenance is
required.
3) It assists in proper delegation of
responsibilities. While in case of oral
communication, it is impossible to fix and
delegate responsibilities on the grounds of
speech as it can be taken back by the speaker

Advantages of Written
Communication Cont..
4) Written communication is more precise and
explicit.
5) Effective written communication develops
and enhances an organizations image.
6) It provides ready records and references.
Legal defenses can depend upon written
communication as it provides valid records

Disadvantages of Written
Communication

1) Written communication does not save upon the

costs. It costs huge in terms of stationery and
the manpower employed in writing/typing and
delivering letters.
2) If the receivers of the written message are
separated by distance and if they need to clear
their doubts, the response is not spontaneous.
3) Written communication is time-consuming as
the feedback is not immediate. The encoding
and sending of message takes time.

Disadvantages of Written
Communication Cont..
4) Effective written communication
requires great skills and competencies
in language and vocabulary use. Poor
writing skills and quality have a
negative impact on organizations
reputation.
5) Too much paper work and e-mails
burden is involved.

Importance of Communication in
Business
1. Convey Messages

Communication allows a process to take place.

The sender sends a message through a
medium. The receiver receives it, processes it
and then gives a feedback which completes the
communication process.

Without this process, no two people could ever

communicate effectively. There would be no
information dispatched and hence no work done

2. Clarity of Ideas
When one communicates with another in a
business scenario, it is important to understand
that the message has to be conveyed in such a
way that there is complete clarity in what is being
said. The message should be so clear that all
doubts and vague and unclear thoughts will be
dispelled.

The communication process also allows for the

person who has received the message to give a
feedback and therefore the communication format
achieves a 360 degree solution.

3. Get Work Done

It is only through the adaption of the varied
communication processes like speech, body
language, gestures and other feedback mediums
that any work can be expected to get done.

An instruction, for example, that is given by a

boss to his subordinate needs to be carried
through till the final stage of execution. If the
process of communication and feedback is
missing, an end result is never possible.

4. Avoid Misunderstandings
When two people work together, there is bound to be
miscommunication at times, which can lead to
misunderstandings and other problems in the
workplace. Which naturally affects the work adversely
and the business suffers.
Communication offers a platform whereby all the
misunderstandings can get cleared and one can hope
for solutions. This is crucial if there has to be a success
made of the plan.

5. Increase Productivity and Efficiency

When there is a proper communication process
taking place then the productivity and efficiency
of the employees increases.
This is because the right information is dispelled
and the correct action executed. Therefore there
is no, or very less scope for mistakes to happen.

6. Employee Job Satisfaction

When there is scope for open communication at
the work place.
There is a clear path provided, whereby the
seniors and subordinates can talk and solve
workplace conflicts amongst themselves.

THANK YOU
SEE YOU IN THE NEXT CLASS