Chapter 1

Effective Communications in
Business
Communication
“Communication is the sister of leadership.”
- John Adair
• Communication is a two way process of exchanging ideas and
information.
• There are two types of communication:
Verbal
Non verbal
• Communication is considered effective when it achieves the
desired reaction or response from the receiver.
Effective Communication
• Effective communication combines set skills including
nonverbal communication, attentive listening, the ability
to manage stress in the moment and the capacity to
recognize & understand your own emotions and those of
the person you’re communicating with.
Effective Communication Skills

• Listening
• Nonverbal communication
• Managing stress
• Emotional awareness
Importance of Effective Communication

• Lifeblood of every organization

• Communication in organization
Internal communication
Downward communication
Upward communication
Horizontal communication
External communication
Effective communication to people outside
organization helps create a good reputation &
have a positive impact.
Communication cost
Poor communication can cost an organization
time and money.
Benefits of Effective Communication
• Your job, promotion, professional reputation depend on
doing well in written & oral communication.
A valuable job requirement
Your progress will be strongly influenced by how well you
communicate your knowledge, proposals and ideas to others.
An essential for promotion
Communication is rated as one of the important aspects of
business leadership.
 Requisites for a Promotable Executive
Ability to
communicate

Ambition
College
education
Sound
decision-
making
Self -
confidence

Good
Appearance
Ability to get
things done
Capacity for
hard work
Challenges of Communication
• Developing the right attitude
“to the customer, you are company.”
Your ability to communicate orally and in writing affects your company’s
public image.
• Preparing adequately
Careful, sound judgment while choosing ideas
Patience & understanding
Integrity, backed with code of ethics
Reasonable English language competence
Applied knowledge of comm. Process
Knowledge of your audience’s cultural conventions
Challenges of Communication cont.

• Becoming flexible

Workplace diversity is an important factor in today’s dynamic

organizations.
• One of the sensitive issues is language

• Effective comm. in such organizations takes flexibility &

awareness of components of communication:
How to address various audience

Choose effective communication channels & information

Components of Communication
• Context
Broad field: country, culture, organization, external internal
stimuli.
Plan, design and communicate your message based on the context
• Sender- Encoder
A sender of a message is encoder: Using symbols (words, graphics or
pictures) that express your message and create the desired
response.
• Message
What your message is
What content to include
Consider the context & receiver of the message
• Medium
Printed words
Electronic mail
Sound
Choice of medium influenced by:
Receiver
Urgency of message
Cost
Amount of information
Receiver’s culture in case of message to the
international audience
• Receiver – Decoder
Receiver of message is also known as decoder, influenced by
context and by his/her mental filter
Your message can have more than one receiver – decoder
• Feedback
The reaction of the receiver upon receiving the message is the
feedback
Desired: Based on clear understanding of the message
Undesired: Because of miscommunication
Feedback can be an oral or written message, an action or simply
silence.
Concepts & Problems of Communication

1. Conventions of meaning

A symbol used to send the message must hold the same

meaning in both sender’s and receiver’s minds.
• Communication problems

Miscommunication occurs when the sender and the receiver

have different meanings for the symbols used.
To avoid errors: Be sure to use words that convey the
intended meaning to the recipient
• Denotations and Connotations
Denotation is usually a dictionary definition of a word.
Example: desk, book, house
A connotation is an implication of a word or a suggestion
separate from the usual definition. Connotative meanings
arouse qualitative judgment and personal reactions.
 House: Mansion, villa, cottage
 Student: Bookworm, scholar, dropout

To communicate effectively, you must be aware of the

connotative meanings of your words.
Concepts & Problems of Communication
contd.
2. Perception of Reality
Each individual has their own reality
Sensory perceptions (touch, sight, hearing, smell, taste)
are limited and each person has a unique mental filter
• Communication problem
 Abstracting: Focusing on some details and omitting
others.
Necessary: Due to limited time, expense, space,
purpose
Slanted statements: Whether the facts are truly
representative of the whole.
 Inferring: Inferences are conclusions drawn from
evidence; we make assumptions, draw conclusion.
Necessary: For analyzing materials, solving problems,
planning procedures.
Risks: May be incorrect or unreliable and anticipate the
risk before acting on them.

3. Values, Attitude, Opinions

A receiver’s attitude toward a message can determine
whether it is accepted, rejected, distorted or avoided.
• Communication problems
 Favorable or Unfavorable information
 Inadequate or Incorrect information
People react according to their attitudes toward a situation
rather than to the facts.
 Closed Minds
 Sender’s Credibility
Credibility in the sender is important in getting a favorable
reaction.
 Other Circumstances
Attitudes may be affected due to stress, etc.
Nonverbal Communication
• Sometimes nonverbal messages contradict the verbal;
often they express feelings more accurately than the
spoken or written language.
1. Appearance
 Written: The format, neatness and language of the
written message, e.g. size, color, weight, spelling,
grammar, punctuation.
 Oral
Personal appearance: clothes, hairstyles, neatness,
posture, gestures, stature.
Surroundings: room size, furnishings, locations, wall
décor, floor, lighting, windows, view, etc.
2. Body language
Includes facial expressions, gestures, postures, movement,
smell, voice and sound.
 Facial expressions: eyes and facial expressions are
important and can hinder or enhance your verbal
message.
 Gestures, postures & movements: Hands gestures may
differ in meaning in different cultures.
o Posture & movement can convey self-confidence, status
or interest.
 Smell and Touch

o Odors & fragrances affect the reactions of the receiver.

o Touching people communicate friendship, love approval, hatred,

anger or other feelings; e.g. slap on the back, pat on the shoulder, etc.

 Voice and Sound

o Voice quality & the extra sounds you make while speaking are also

part of the nonverbal communication called paralanguage. E.g.

Loud voice: urgency

Speaking fast: nervousness

Too much variation may sound artificial and overly dramatic

3. Silence, Time & Space
 Silence
o Rejection
o Negative response
 Time
Concept of time and space are culture specific.
 Space
Effective communicators must learn to adapt to both
senders’ and receivers’ expectations regarding space. The
key to success is to be aware of the differences.
Barriers to effective communication
• Language Barriers
• Psychological barriers
▫ Fear of phobia, stage fright, stress, etc.
• Emotional barriers
▫ Anger, humor, emotional maturity, etc.
• Physical barriers
▫ Room, furnishing, close doors, etc.
• Cultural barriers
• Perception barriers
• Technological barriers
Barriers to effective communication
• Physiological Barriers
▫ Pertaining to the physique of the communicator,
e.g. shrill voice, dyslexia, etc.
• Socio-religious barriers
▫ Patriarchal society, e.g. women face difficulties
and barriers while communicating at workplace,
glass ceiling, etc.
• Organizational Structure barriers
▫ Different structures, i.e. taller organization, leaner
▫ Method of communication on organization level