BUSINESS

COMMUNICATION
KMBN 107
Introduction: Role of communication
Defining and classifying communication

Purpose of communication

Process of communication, Characteristics of successful

communication

Importance of communication in management

Communication structure in Organization
Barriers of Communication, communication in crises
 ROLE OF COMMUNICATION

1. EXCHANGING INFORMATION:
Communication is important to exchange information between two or more parties. Whether it is your client or
your supplier and employees, you’ll need to share information with them to keep them updated. It is not
essential for information purposes only. Rather you also need it for getting the right thing done in the right
manner.

2. GOAL ACHIEVEMENT:
If you are working with a group of people or anyone other than you, you’ll need to share your opinion and
goals to ensure that everyone else is on the same page. Without synchronization of your goals, you cannot
expect results to go in your favor. 
3. DECISION MAKING:
The decision-making regarding the business is dependent on information that you would collect regarding
the particular aspect of the business. How do you expect to collect this information and formulate strategy?
You’ll have to communicate with someone to collect information or discuss it for making strategies. Even
if you think you can manage the process up till here on your own, you’ll still need to communicate your
decision to the others for implementation. So, there is no way out without realizing the role of
communication in business.

4. MARKETING BUSINESSES:
Either you are selling a B2B product or a B2C product, you’ll need to tell your customers about these
products or services. This, in simple terms, is “marketing”. It involves the communication of the right kind
of message to the right audience. Without this communication, you cannot expect to sell your products or 
reach your audience in an effective manner. 
 DEFINING COMMUNICATION
The term ‘communication’ is derived from the latin word “communis” and
“communicare” which means common. thus communication stands for sharing of
ideas in common.

Communication is the process of passing information and understanding from one

person to another. It is the process of imparting ideas and making oneself understood
by others. -Theo Haimann

Communication is the sum of all things, one person does when he wants to create
understanding in the mind of another. It involves a systematic and continuous process
of telling, listening and understanding.- Louis A.Allen

‘Business communication differs from other types of communication, not by its

means of communicating but by its objectives’
 NATURE OF COMMUNICATION

1. Two-way process:
Communication is a two-way process of understanding between two or more persons – sender and receiver. A
person cannot communicate with himself.

2. Continuous process:
Exchange of ideas and opinion amongst people is an ongoing process in business and non-business organisations.
Continuous interaction promotes understanding and exchange of information relevant for decision-making.

3. Dynamic process:
Communication between sender and receiver takes different forms and medium depending upon their moods and
behaviour. It is, thus, a dynamic process that keeps changing in different situations.
4. Pervasive:
Communication is a pervasive activity. It takes place at all levels (top, middle, low) in all
functional areas (production, finance, personnel, sales) of a business organisation.

5. Two people:
A minimum of two persons — sender and receiver — must be present for communication to
take place. It may be between superiors, subordinates and peer group, intra or inter se.

6. Exchange:
Communication involves exchange of ideas and opinions. People interact and develop
understanding for each other.
7. Means of unifying organisational activities:
Communication unifies internal organisational environment with its external environment. It also integrates
the human and physical resources and converts them into organisational output.

8. Verbal and non-verbal:

Though words are active carriers of information, gestures can sometimes be more powerful than words.
Facial expressions, sounds, signs and symbols are the non-verbal forms of communication.

9. Mutual understanding:
Communication is effective when sender and receiver develop mutual understanding of the subject.
Messages conveyed should be understood by the receiver in the desired sense.

10. Goal-oriented:
Communication is goal-oriented. Unless the receiver and sender know the purpose they intend to achieve
through communication, it has little practical utility.
11. Foundation of management:
Though communication is a directing function, it is important for other managerial functions also.
Designing plans and organisation structures, motivating people to accomplish goals and controlling
organisational activities; all require communication amongst managers at various levels.

12. A means, not an end:

Communication is not an end. Effective communication is a means towards achieving the end, that is,
goal accomplishment. It smoothens managerial operations by facilitating planning, organising, staffing,
directing and controlling functions.

13. Human activity:
Since communication makes accomplishment of organisational goals possible, it is essential that people
understand and like each other. If people do not understand each others’ viewpoint, there cannot be
effective communication.

14. Inter-disciplinary:
Communication is the art of how communicators use knowledge of different fields of study like
anthropology, psychology and sociology. Making best use of these disciplines makes communication
effective. It is, thus, an inter-disciplinary area of management.
 CLASSIFICATION OF COMMUNICATION
On the basis of number of persons

• Intrapersonal communication
• Interpersonal communication
• Group communication
• Mass communication

 On the basis of Medium or Expressions

• Verbal communication
• Non Verbal communication
 VERBAL COMMUNICATION

It means communicating with words, written or spoken. Verbal communication consists of speaking,
listening, writing and reading. When messages or information is exchanged or communicated through words
is called verbal communication. Verbal communication may be two types: written and oral communication.

In oral communication spoken words are used. It includes face to face conversation, speech, voice chats. In
oral communication, communication is influence by pitch, volume, speed & clarity by speaking.
In written communication, written sign or symbols are used to communicate. A written messages may be
printed or hand written.it is transmitted via email, letter, report etc. it is influenced by vocabulary & grammar
style and clarity of language used.

NONVERBAL COMMUNICATION

Nonverbal communication includes all unwritten and unspoken messages, both intentional and unintentional.
SLIDE TITE
 On the basis of Relationship

FORMAL COMMUNICATION:

Formal communication refers to the official communication which follows the formal channel. Formal
channels are the paths of communication that are institutionally determined, that is, they are established by
the organization.
Formal communication can be oral or written.
Oral communication can take the form of interviews, meetings, presentation, and so on.
Written communication can take the form of notes, memos, letters, reports, and so on.

 Downward Communication
 Upward Communication
 Horizontal or Lateral Communication
 Interactive Communication (Diagonal or Crosswise Communication)
 INFORMAL COMMUNICATION

Informal communication refers to communication between individual and groups, which does not follow
the official recognized channel. It is a result of social interaction among the various members of the
organization. The transfer of information may be related to work or other matters and it cuts across
official lines of communication.

The network or pathway of informal communication is called grapevine. The untrue path of the
grapevine is called rumor.
The following are some of the characteristics of grapevine:

• In grapevine, the flow of information take place in all direction.

• Transmission of the information is rapid because the chain of command is not followed.
• It is selective about people who receives the information.
• It extends beyond the formal hierarchy system.
 GRAPEVINE

Grapevine is an informal corporate communication route. Grapevine communication is defined as communication that
occurs in an organization without adhering to a prescribed framework. As a result, grapevine communication can be
defined as an informal and unofficial means of communication with in an organization.

TYPES OF GRAPEVINE:

a) Single-strand chain: In this type of chain ‘A’ tell something to ‘B’ who tell it to ‘C’ and so on it goes down the line.
This chain is the least accurate in passing on the information.

b) Gossip Chain: In it person seeks out and tell everyone the information he or she has obtained. This chain is often
used when information or a message regarding an interesting but ‘non-job-related’ nature is being conveyed.

c) Probability Chain: In this type of chain individuals are indifferent to, or not really interested in, the persons to whom
they are passing some information. They just tell at random, and those people in turn tell others at random. This chain
is found when the information is somewhat interesting but not really significant.

d) Cluster Chain: In this type of chain ‘A’ tells something to a few selected individuals, and then some of these
individuals inform a few other selected individuals.
MERITS OF THE DEMERITS OF GRAPEVINE
GRAPEVINE
 Less credible information
 Speedy transmission
 Never carry complete
 Feedback value information

 Psychological satisfaction  Rumors ( can spoil the image

of the organization)

 Leak of confidential
information
Characteristics of successful communication (7 C) :-

1) Complete:- The message must be complete. It should convey all the facts required by the
audience. The sender of the message must take into consideration the receiver and should
communicate all the facts and figures related to the message.

2) Conciseness:- Conciseness means communicating what you want to convey in least possible
words. Conciseness is a necessity for effective communication. Concise communication has
following features: ◦ It is both time-saving as well as cost-saving. ◦ It underlines and highlights
the main message. ◦ Concise communication provides short and essential message in limited
words to the audience. ◦ Concise message is more appealing and comprehensible to the
audience.

3) Consideration:- Consideration implies “stepping into the shoes of others”. Effective

communication must take the audience into consideration, i.e, the audience’s view points,
background, mind-set, education level, etc. Make an attempt to envisage your audience, their
requirements, emotions as well as problems. Ensure that the self- respect of the audience is
maintained and their emotions are not at harm.
1) Clear:- Clear message makes use of exact, appropriate and concrete words Clarity implies emphasizing on a
specific message or goal at a time, rather than trying to achieve too much at once. Clarity in communication has
following features: ◦ It makes understanding easier. ◦ Complete clarity of thoughts and ideas enhances the meaning
of message. 

2) Concrete:- Concrete messages are not misinterpreted Concrete communication implies being particular and clear
rather than fuzzy and general. Concreteness strengthens the confidence. Concrete message has following features: ◦
It is supported with specific facts and figures. ◦ It makes use of words that are clear and that build the reputation. 

3) Courtesy:- Courtesy in message implies the message should show the sender’s expression as well as should respect
the receiver. The sender of the message should be sincerely polite, judicious, reflective and enthusiastic. Courteous
message has following features: ◦ Courtesy implies taking into consideration both viewpoints as well as feelings of
the receiver of the message. ◦ Courteous message is positive and focused at the audience. ◦ It makes use of terms
showing respect for the receiver of message. 

4) Correctness:- Correctness in communication implies that there are no grammatical errors in communication.
Correct communication has following features: ◦ The message is exact, correct and well-timed. ◦ If the
communication is correct, it boosts up the confidence level. ◦ Correct message has greater impact on the audience/
readers. ◦ It checks for the precision and accurateness of facts and figures used in the message. ◦ It makes use of
appropriate and correct language in the message.
PROCESS OF COMMUNICATION
SLIDE TITE
Sender: The sender or the communicator is the person who initiates the conversation and has conceptualized the idea that
he intends to convey it to others.

Encoding: The sender begins with the encoding process wherein he uses certain words or non-verbal methods such as
symbols, signs, body gestures, etc. to translate the information into a message. The sender’s knowledge, skills, perception,
background, competencies, etc. has a great impact on the success of the message.

Message: Once the encoding is finished, the sender gets the message that he intends to convey. The message can be
written, oral, symbolic or non-verbal such as body gestures, silence, sighs, sounds, etc. or any other signal that triggers
the response of a receiver.

Communication Channel: The Sender chooses the medium through which he wants to convey his message to the
recipient. It must be selected carefully in order to make the message effective and correctly interpreted by the recipient.
The choice of medium depends on the interpersonal relationships between the sender and the receiver and also on the
urgency of the message being sent. Oral, virtual, written, sound, gesture, etc. are some of the commonly used
communication mediums.

Receiver: The receiver is the person for whom the message is intended or targeted. He tries to comprehend it in the best
possible manner such that the communication objective is attained. The degree to which the receiver decodes the message
depends on his knowledge of the subject matter, experience, trust and relationship with the sender.
 Decoding: Here, the receiver interprets the sender’s message and tries to understand it in the best possible
manner. An effective communication occurs only if the receiver understands the message in exactly the same
way as it was intended by the sender.

Feedback: The Feedback is the final step of the process that ensures the receiver has received the message and
Decoding: Here, the itreceiver
interpreted interprets
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the sender. to understand
increases it in the best
the effectiveness possible
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communication occurs only if the receiver understands the message in exactly the same way as it was intended
permits the sender to know the efficacy of his message. The response of the receiver can be verbal or non- by the sender.
verbal.

# The Noise shows the barriers in communications. There are chances when the message sent by the sender is
not received by the recipient.
 IMPORTANCE OF COMMUNICATION IN
MANAGEMENT
 Necessary for planning

IMPORTANCE BasisOF COMMUNICATION IN MANAGEMENT

of co-ordination
Necessary for planning
Basis of co-ordination
 Establishment of effective leadership
Establishment of effective leadership
Increasesmanagerial
Increases efficiency
managerial efficiency
Promotes Co-operation and industrial peace
Basis of Decision-making
 Promotes Co-operation and industrial peace
Morale Building and Motivation
Smooth Working
 Basis of
of Enterprise
Decision-making
Job satisfaction
 Morale Building and Motivation

 Smooth Working of Enterprise

 Job satisfaction
COMMUNICATION STRUCTURE IN

SLIDE TITE
ORGANIZATION

• Chain structure: The "chain" or "line" communication structure

involves direct lines of communication between members of each rank
directly above and below the message's origin point but not with
members on any other point in the chain.

• Circle structure: The "circle" structure resembles the chain

structure, in that each link only connects to the two links on either
side.

The difference is that two links in the chain "close" to form the circle.
The circle structure is less concerned with hierarchy than the chain
structure, so the circle does not have the authoritarian weight found in
the chain.
• Star structure: Under star communication network all members of the group communicate with each other
and exchange information. This network is a must for group communication or where teamwork is involved.

This network channel of communication is open to all members of the group. The members communicate with
each other without hesitation.

• Circuit Network: Under this network two persons communicate with each other. Say Mr. ‘A’ sends message
to Mr. ‘B’. After receiving message Mr. ‘B’ communicates the feedback message to Mr. ‘A’. So
communication takes the form of a circuit. Therefore it is known as circuit network.

It is similar to vertical network but in circuit network ‘A’ and ‘B’ are not necessarily superior and subordinates. It
is similar to vertical network but in circuit network ‘A’ and ‘B’ are not necessarily superior and subordinates.

• Wheel Network: Here all subordinates receive commands from one superior. This is highly centralized type
of communication network where each subordinate receives commands or instructions from a single authority
or superior ‘A’ and wants the immediate feedback.
 BARRIERS TO COMMUNICATION

 Noise
 Lack of planning
 Wrong/ Unclarified assumption
 Semantic problems
 Cultural barriers
 Social-psychological barriers
 Emotions
 Selective perception
 Filtering
 Information overload
 Loss by transmission
 Poor retention
 Poor listening
 Insufficient period for adjustment
 Goal- Conflicts
 Offensive style of communication
COMMUNICATION IN CRISIS

SLIDE TITE
Crisis communication is a sub-specialty of the public relations
 profession that is designed to protect and defend an individual,
company, or organization facing a public challenge to its reputation.
Crises can be defined as "the perception of an unpredictable event that
threatens important expectancies of stakeholders and can seriously
impact an organization's performance and generate negative outcomes"
Crisis: Any situation that is threatening or could threaten to harm
people, interrupt business, damage reputation or negatively impact the
bottom line.
The following are the steps of crisis communications:
1. Anticipate crisis: One should be proactive and prepare in advance all the potential crisis that could
occur in the organization. The organization can have a Crisis Response Plan.

2. Identify your crisis communications team: A small team of senior executives should be identified to
serve as your organization's Crisis Communications Team.

3. Identify and train spokespersons: Any organization should ensure that only authorized spoke persons
should speak in the times of the crisis.

4. Spokesperson Training: All stakeholders, internal and external are just as capable of misunderstanding
or misinterpreting information about your organization as the media, and its the responsibility of the crisis
management team to minimize the chance of that happening.
5. Establish Notification and Monitoring Systems: It is essential to have notification system even before
the actual crisis takes place which will help the organization to reach out to a wide audience and interest
holders using one medium, e.g. By using Twitter, Facebook etc.

Having a monitoring system in place helps to keep the organization aware of what is being said about them
among the customer or the stakeholders. Customer care executives act as the direct monitoring machines for
an enterprise reporting them about the negative trend if any spreading among buyers.

6. Identify and know your stakeholders: Every employee is a potential PR representative and crisis
manager for your organisation whether you want them to be or not. So its up to you to ensure that they
receive the messages you would like them to repeat elsewhere.

7. Make a strategy and assess the crisis situation: Reacting without adequate information or strategy can
hamper the whole crisis situation.