Business Communication

Objectives

• To Learn
– Public Speaking

– Business Presentation

– Group Discussion

– Interview Skills
Text Book to be Referred
 What is Communication?
• Communication is the
process of exchanging
information, usually
through a common
system of symbols
 What is Communication?

• The process by which information and

feelings are shared by people through an
exchange of verbal and non-verbal
messages.
Effectiveness of Spoken
Communication
 What is Business
Communication?
• The use of effective language to convey a
clear business message to achieve a
predetermined objective
 Characteristics
• A two way traffic

• Continuous process

• Needs proper understanding

• Leads to the achievement of the

organizational objective

• Dispels misunderstanding
 Benefits of Effective
Communication
• Effective Communication
– Better quality of documents
– Enhanced professional image
– Increased productivity
– Stronger decision making
– Quicker problem solving
– Healthier business relationships
– Improved customer relations
– Increased awareness among employees
– Lesser misunderstanding
 Functions of
Communication
• Information
– Refers to the role of communication in facilitating decision making and problem solving

• Control
– Refers to the power to influence people’s behaviour

• Motivation
– Refers to the fostering of motivational spirit among employees

• Emotional Expression
– Relates to the function of communication in expressing the feelings and emotions of
employees under various circumstances
 Roles of a Manager
• Interpersonal
– Figurehead, Leader, Liaison

• Informational
– Monitor, Disseminator, Spokesperson

• Decisional
– Entrepreneur, Disturbance Handler, Resource
Allocator, Negotiator
 Managerial Roles
• Interpersonal roles
– Figurehead
• Performs activities which are ceremonial or
symbolic nature
– Leader
• Leading and motivating the subordinates
– Liaison
• Acts as a connecting link
 Managerial Roles
• Informational roles
– Monitor
• Constantly updates his information about
internal and external factors affecting his
activities
– Disseminator
• Distributes the information to the subordinates
– Spokesperson
• Interacts with the external environment on
behalf of organization
 Managerial Roles
• Decisional Role
– Entrepreneurial
• Assumes risks
– Disturbance handler
• Manages the factors which disturb the
organizational equilibrium
– Resource allocator
• Allocates the resources to various units
– Negotiator
• Negotiates with various interest groups
 A Model of the
Communication Process

--medium--

Ram Sham
Communication Process
 Communication Basics
• Step 1: Sender conceives an idea depending on the purpose of
Communication

• Step 2: Sender chooses appropriate symbols and encodes the idea

and formulates the message

• Step 3: Sender sends the message through a suitable channel

• Step 4: Receiver receives the message

• Step 5: Receiver decodes the symbols, and comprehends and

interprets the message

• Step 6: Receiver sends response that is observed by the sender

 Communication Networks

• Communication in organizations follows certain path

• The organizational structure influences the flow of

communication

• Organizational structure is the formally prescribed

pattern of inter-relationships existing between its
various units
 Communication Networks

• Formal Network
– Vertical Communication
• Upward
• Downward
– Horizontal Communication
– Diagonal Communication

• Informal Network
– Grapevine or Rumours
 Formal Communication
Network
• The process of sharing official information
with others who need to know it,

• According to the prescribed patterns

depicted in an organization chart
 Formal Communication
Network
• Information may travel down, up, and
across an organisation’s formal hierarchy

• It may be
– Vertical Communication

– Horizontal OR Lateral Communication

– Diagonal OR Spiral Communication

Formal Communication
Network
 Vertical Communication

• Communication that flows up and down

the organization, usually along formal
reporting lines

• Takes place between managers and

subordinates and may involve several
levels of the organization
 Downward Communication
• Downward communication starts with top
management and flows down through
management levels to line workers and non-
supervisory personnel
• Downward communication is to advise, inform,
direct, instruct, and evaluate employees
• And to provide organization members with
information about organizational goals and
policies
 Upward Communication

• The main function of upward

communication is to supply information to
the upper levels about what is happening
at the lower levels. This type of
communication includes progress reports,
suggestions, explanations, and requests
for aid or decisions
 Horizontal Communication

• Communication flows sideways in the

organization chart
 Horizontal Communication

• Communication takes place among the

– members of the same work group,
– members of work group at the same level,
– managers at the same level or
– any laterally equivalent personnel

• Messages are characterized by efforts at

coordination or attempts to work together
 Diagonal Communication

• Communication also flows in a circular or

diagonal direction

• Communication flows between persons

who belong to different levels of hierarchy
and who have no direct reporting
relationship
 Informal Communication

• Deviation from the planned communication

structure
– Direction of the flow of information
– Leaving out people in the communication line
– Integrating people into the communication line
– information shared without any formally imposed
obligations or restrictions
 Informal Communication

Y E
C
K
H
G I
E
D G
X
F F B D
D H I
C
C J
B J
J
A K
B A B
Gossip I
Probability
A
D
Chain C F
Cluster A
 Grapevine

• It refers to the informal communication

flowing in an organization

• If used judiciously, this form of

communication can benefit the
organization
 Differences
Informal Formal
– Usually used with – Used in a
friends and family Professional Setting

– Contains shortened – No Slang

version of words

– Contains slang – Pronounce words

words correctly
 Effective Internal
Communication (Downward)
• Ensure that every employee receives a copy of the strategic
plan
• Ensure that every employee receives an employee handbook
that contains updated personnel policies
• Develop a basic set of procedures for how routine tasks are
conducted
• Ensure that every employee has a copy of the job description
and the organizational chart
 Effective Internal
Communication (Downward)
• Regularly hold management meetings, even if there is nothing
pressing to report
• Hold full staff meetings every month to report
• Leaders and managers should have one-to-one meeting with
employees at least once a week
• Regularly hold meetings to celebrate major accomplishments
• Ensure that all employees receive yearly performance reviews
 Effective Internal
Communication (Upward)
• Ensure that all employees give regular status reports
to their supervisors
• Ensure that all supervisors meet one-to-one at least
once a month with their subordinates
• Use management and staff meetings to solicit
feedback
• Act on feedback from others
• Respect the grapevine
 Miscommunication

• It refers to serious shortcoming of the

encoder –decoder account of human
communication

• Shortcomings or barriers may arise

because of several reasons, causing
failures in communication
 Causes of
Miscommunication
• Organizational Structure
• Difference in Status
• Lack of Trust
• Closed Communication Climate
• Incorrect Choice of Medium
• Information Overload
• Message Complexity
• Message Competition
• Unethical Communication
• Physical Distraction
 Organizational Structure
• In large organization, feedback is not guaranteed
• Flat structure organization have intricately knitted
communication network
• Tall organizations have vertical communication
links
• Rigid hierarchical structure usually restricts the
flow of communication
 Difference in Status
• Employees at lower levels of hierarchy are overly
cautious while sending messages to managers
• People of higher status may distort messages by
refusing to discuss anything that would tend to
undermine their authority
• Limiting oneself to a particular department or being
responsible for a particular task can narrow one’s point
of view
 Lack of Trust

• Subordinates may not know whether their

manager will respond in a supportive or
responsible way

• Without trust, free and open

communication is effectively blocked
 Closed Communication
Climate
• Communication climate is influenced by
management style

• Directive, authoritative style blocks free

and open exchange of information

• One should spend more time listening

than issuing orders
 Incorrect Choice of Medium

• Select an appropriate medium for each

message
– There is no one “best” medium.

• Consider information richness: the amount of

information a medium can carry.
– Medium with high richness can carry much
information to aid understanding.
 Medium of Communication
• Medium of communication implies a tool of
communication, instrument adopted or applied to
transmit a message
• Need to consider the needs of the sender, the nature
of the receiver and the aims of the communication
• Inappropriate medium can be a barrier to effective
communication
Information Richness and
Media Type
High
Richness

Face-to-face
communication
Verbal communication
electronically
transmitted

Personally addressed
written communication

Impersonal written
commun-
Low ication
Richness
 Media of Business
Communication
• Face to Face Communication & Video Conferencing
• Verbal Communication Electronically Transmitted –
Telephone
• Personally Addressed Written Communication –
Letters, Fax & E-mail
• Impersonal Written Communication – Newsletters &
Reports
 Face to Face

• Highest Information Richness

– It can take advantage of verbal and nonverbal
signals

– Provides for instant feedback

 Video Conferencing
• Videoconferencing is the conduct of a videoconference by a
set of telecommunication technologies which allow two or
more locations to communicate by simultaneous two-way
video and audio transmissions
• Videoconferencing can enable individuals in distant locations
to participate in meetings on short notice, with time and
money savings
• Reduce travel costs and meeting times
 Telephone
• Telephone is a telecommunications device that transmits
and receives sounds, usually the human voice.

• Telephones are a point-to-point communication system

whose most basic function is to allow two people
separated by large distances to talk to each other

• There is no visual nonverbal cues; Do have tone of

voice, sender’s emphasis and quick feedback
 Personally Addressed
Written Communication
• Lower richness than the verbal forms, but
still is directed at a given person
• Personal addressing helps ensure receiver
reads it
• Cannot provide instant feedback to sender
but can get feedback later
 Fax
• Fax, sometimes called telecopying, is the
telephonic transmission of scanned printed
material normally to a telephone number
connected to a printer or other output device.
• Although businesses usually maintain some kind
of fax capability, the technology has faced
increasing competition from Internet-based
alternatives
 E-Mail
• Electronic mail, also known as e-mail, is a method of
exchanging digital messages from an author to one or more
recipients
• E-mail etiquettes
– Words in all CAPITALS are seen as “screaming” at the receiver.
– Punctuate your messages for easy reading and don’t ramble
on.
– Pay attention to spelling and treat like a written letter
 Information Overload

• Message loaded with too much

information

• It reduces the audience ability to

concentrate on the most important part of
the message
 Message Complexity

• Message which is dry and difficult in

nature is complex to understand
 Message Competition

• Message have to compete with variety of

interruption

• Message may not have the undivided

attention of the receiver
 Unethical Communication

• Barriers arising out of unethical conduct

may affect communication

• Message should contain all the factual

information

• Information should be adequate and

relevant
 Physical Distractions
• Bad connections
• Poor acoustics
• Illegible copy
• Uncomfortable chair
• Poor lighting
• Visual and hearing impairment
 Effectiveness in Managerial
Communication
• Appropriate Communication Style
• Audience-centered Approach
• Understanding of Intercultural
Communication
• Commitment to Ethical Communication
• Proficiency in Communication Technology
• Control over the Flow of Communication
• Reducing the Number of Messages
• Appropriate Communication Style
– Management style of manager
• Directive style
• Supportive style
• Participative style

– Participative Style promotes and establishes

open communication climate
• Audience-centered Approach
– Successful communication by making it
meaningful for the audience, enhanced credibility
and staving off uncountable ethical questions

– Make a practice of anticipating audience’s

expectations
• Understanding of Intercultural Communication
– Necessary to understand the laws, customs and business practices of the host
countries

– Understanding cultural differences in perception, greetings, and gestures is

critical

– Not enough, if able to speak a language, must also be able to communicate

effectively
• Commitment to Ethical Communication
– It includes all relevant information, is true in
every sense and not deceptive in any way

– Avoid language that manipulates,

discriminates or exaggerates
• Proficiency in Communication Technology
– Not only adapt themselves to technology but
also motivate subordinates to adapt to
technology

– Technology helps managers to perform the

tasks necessary to succeed in business
• Control over the Flow of Communication
– Ensure that all communication messages flow
efficiently across and outside their organization

– Information may not flow efficiently because of

information overload, lack of efficiency in
preparing messages, lack of adequate training
• Reducing the Number of Messages
– To reduce the number of messages is to think
twice before sending one

– Important messages letter, memo is a good

idea; otherwise face to face or quick
telephone call
 Strategies for Improving
Organizational Communication
• Encourage Open Feedback
• Use Simple Language
• Avoid Overload
• Walk the Talk
• Be a Good Listener