Business Communication

Introduction to Communication
• The word Communication is derived from the Latin ‘Communis’ which means
–
Common
• “Communication in the simplest form is conveying of information from
one
person to another
• In words of Allen, “Communication is the sum of all the things, one person does
when he wants to create understanding in the mind of another. It is a bridge of
meaning. It involves a systematic and continuous process of telling, listening
and understanding”.
• In a nutshell – Communication is an interchange of thoughts, information, facts,
ideas and viewpoints which brings about commonness of interest, purpose &
efforts
 Features of Communication
• Two – way Process
• Information Sharing and Understanding
• Verbal and Non-verbal
• Circular Flow
• Goal – Oriented
• Continuous Process
• Pervasive Activity
• Dynamic
• Involves Feedback
 Purpose of Communication
• Exchange of information
• Issue of Orders & Instructions
• Education
• Advice & Counselling
• Persuasion
• Suggestions
• Motivation
• Raising Morale
• Warning
 Importance / Role of Communication
• Facilitates Planning
• Basis for Decision Making
• Achieves Effective Co-ordination
• Facilitates Better Administration
• Creation of Mutual Trust & Confidence
• Motivation of Employees
• Building Employee Morale
• Binding Force or Commitment
• Facilitates Effective Control
 Need for Business Communication

• Giant Organizations
• Global Business Environment
• Technological Advancement
• Timely Information
• Better Human Relations
• Better Public Relations
Communication Process
 Elements of Communication

• Sender or Communicator
• Encoding of Message
• Communication Channel
• Receiver
• Decoding
• Feedback
• Noise
 FEEDBACK
• According to Berher, “Feedback is a message that indicates the understanding
or agreement between two or more communicators in response to an original message”
• Feedback may be direct or indirect
• Even Silence is a kind of feedback as a certain message does not get conveyed in the
process
Functions of Feedback

Helps in Evaluation of what To know whether audience is

is write and what is wrong in interested in the subject – Helps in reinforcing,
a particular communication matter or not giving rewards or
punishments
 Characteristics / Types of Feedback
Characteristics Types

Persona Self Feedback

l Observation
Element
Listener’s Feedback
Detailed &
Specific Tone
Positive Feedback

Approach Negative Feedback

 Purpose of Feedback

Purpose Results
• Provide information about the • Improves or
work ‘Accuracy understanding’
• Facilitate understanding • Creating an image of self in the eyes
of organizational goals by the lower of the sender of the original message
levels
• It affects Performance
• Inform subordinates about
their • Affects the attitude of
performance the
communicator
• Give specific directives to
the subordinates
• Give information about organizational
procedures & practices
 Importance of Feedback

Confirmation of  Overall Coordination

Transmission  Higher Productivity
Seeking Solutions to Development of
Problem Employees
Identification of Change  Psychological
Required Satisfaction
 Better Understanding
 Better Planning
Principles of Effective Communication

Clarity of Creation Two – way

Speed Message
of
Traffic
Impression

Complet
Credibility Content Capability
e
ness

Accuracy Economy Secrecy Safety

 Forms / Channels of Communication

Types of
Communication

Channel /
Direction Method
Network
Downw Horizon
Formal Informal Upward Vertical Oral Written Non-
ard tal Verbal
 Channels of Communication
• It is the path through which information is transmitted throughout
the organization.
• It represents various contacts or linking points which exist between
different individuals or departments in the organization

Channel /
Network

Formal Informal
 Formal Communication

• Formal Communication refers to the official communication which

takes place following the chain of command in the organization
• The organization structure reflecting superior subordinate
relationship determines the flow of formal communication
• The scalar chain of authority established by the organization
provides the channels for official communication between the
members of the organization and the parties outside the
organization like government, suppliers, customers & so on
• Examples – Memos, Letters, reports, statements
 Formal Communication

Advantages Disadvantages
• Orderly Flow of • Time Consuming
Information. • Lack of Personal Touch
• Identified Source. • Distortion
• Authentic Information.
• Expensive
• Answerability for Actions
• Control
 Informal Communication

• Communication between individuals and groups which are

not officially recognised is known as informal communication
• It consists of exchange of ideas & information resulting from social
interaction among the members of an organization
• The necessity of information arises among people to satisfy their
social needs, which is not possible through formal communication
• Informal Communication is also known as “Grapevine”
 Informal Communication

Advantages Disadvantages
• Social relations • Incomplete Information
• Need Satisfaction • Distortion
• Speed • Unreliability
• Avenue of Expression • Leakage
• Feedback • Lack of Authenticity
• Supporting the formal channel • Problem in Fixing
• Better Human Relations responsibility
 Difference: Formal Vs. Informal
Formal Informal Communication
• Follows officially established chain
• Independent of the authority relations in the
of command & lines of Communication
organization
• Slow – moving process
• Carries message at fast speed
• Easy to pinpoint the responsibility
• Not possible to fix responsibility
• It is task oriented
• It is people oriented
• Consists of work-related matters
• Consists of work related as well as social messages
• Orderly & systematic as regards to direction of
flow • Unsystematic & erratic as regards to direction of flow
• Serves organizational needs • Serves not only organizational needs but also social
needs
• Flows in vertical, horizontal, and of the people
diagonal
directions • Flows in every possible direction
• Can be oral or written • It is mostly oral
• Messages cant be considered as authentic
 GRAPEVINE

• The network or the pathway of informal communication is known

as ‘Grapevine’
• In the organizational context, the informal communication is
called Grapevine because the origin & direction of the flow of
informally conveyed messages cannot be easily traced
• Grapevine cut across formal channels of communication i.e.
neither do they follow the same pattern not do they necessarily
coincide with the formal channels of authority &
communications
 GRAPEVINE: Features

• It transmits information in every direction throughout the organization

i.e. laterally / diagonally.
• Unrestricted by formal policies & procedures thus information spreads
rapidly.
• Grapevine is selective with regard to the person who receives the
information.
• It extends beyond the formal hierarchy system.
• It generally occurs orally.
• Grapevine is based on people rather than task.
• It does not follow a fixed pattern of communication.
 Types of Grapevine
• Single Strand Chain

• Gossip Chain

• Probability Chain

• Cluster Chain
 RUMOUR

• Rumour is a grapevine information which is communicated

without authentic standards of evidence being present
• It is untrue part of grapevine
• Rumour also serves as a means of wish fulfilment or applying
pressure upon the management
• It gets twisted and distorted when it passes from one mouth to
another
• The details given at the beginning of a rumour are lost after few
transmissions because people reduce it to a rememberable
number of a details about items of interest them
 COMMUNICATION NETWORK
• There is a social dimension when communication occurs in the organization; this is called
“Social Communication” through a particular system or networks
• “A network of communication represents the pattern of contacts among the members
of an organization”
• It mainly depends on the nature of channels of communication and the number
of persons involved in the communication process
• There are five types of network Communication:
 Single Strand
 Wheel network
 Circular Network
 Free Flow Network
 Y Network
 DIRECTION / FLOW OF COMMUNICATION

• Downward Communication
• Upward Communication
• Horizontal or Sideward Communication
• Diagonal or Vertical Communication
 DOWNWARD COMMUNICATION

• It represents the flow of communication from top level of the organization to

the bottom levels
• A major part of the formal communication takes the form of
Downward Communication
• It can take place through verbal or written orders, instructions,
circulars,
letters, memos, posters, publications, group meetings & so on
• The objective of downward communication are:
 To give instructions about what to do & how to do
 To explain organizational policies, programmes & procedures
 To effectively how effectively a person is performing his job
 To motivate employees
 To train subordinates
 MODES of DOWNWARD COMMUNICATION

• Handbooks & Pamphlets

• Posters and Bulletins
• House Journals
• Pay Interests & Direct Mails
• Annual Reports
• Special Meetings
 MERITS / DEMERITS:
DOWNWARD COMMUNICATION

Merits DEMERITS
• Missions & Goals • Distortion
• Plans & Policies • Incomplete Information
• Duty and • Time Consuming
Authority • Filteration of Information
• Job Satisfaction
 UPWARD COMMUNICATION

• It signifies the flow of communication from the lower levels to the

higher levels of the organization
• The purpose of upward communication are :
 To keep the superiors informed about the progress of the work&
difficulties faced in executing orders & suggest measures for
improvement
 To communicate grievances
 To create a feeling of belongingness through participation
• Examples: Activity reports, suggestions, recommendations,
grievances & so on
 MODES of UPWARD COMMUNICATION

• Suggestion System
• Grievance Procedure
• Open door Policy
• Questionnaires
 MERITS / DEMERITS:
UPWARD COMMUNICATION

MERITS DEMERITS
• Feedback • Fears & Apprehensions
• Creative Ideas • Filtrations
• Better Relations • Time Consuming
• Overcomes Resistance to • Inattention by superiors
Change • Low morale
• Increased Motivation
 Difference
Downward vs. Upward Communication
Basis Downward Communication Upward Communication

Flow of Message Top to lower levels Lower to top levels

Purpose To communicate policies, To keep the superiors informed

procedures, orders & about the progress of the work
instructions to subordinates and difficulties faced in the
execution of orders

Use To get the things done through To give reports & convey
the subordinates reactions of subordinates to the
management
Form of Message Written and oral – instructions, It takes form of activity reports
letters, memos, company , suggestions, grievances &
publications so on
 HORIZONTAL COMMUNICATION
• It refers to the transmission of information among persons of the same level. It
generally
tales places among departmental heads, who are responsible for different functional areas of
the business
• It objectives are:
 To coordinate among various individuals or departments
 To solve problems which involve the efforts of various specialists
 To resolve conflicts among various employees
 To exchange information among employees of various departments
 To promote social relations among employees
• Horizontal communication can take place between
 Members of a particular work group
 Members of different work group
 Members of different departments operating at the same level
 MERITS / DEMERITS:
HORIZONTAL COMMUNICATION

MERITS DEMERITS
• Speeds the flow in • Personal likes / Dislikes may
up obstruct free flow of
• organization
Facilitates solving communication
problem amongst • Difference in perceptions &
• members
Reviewing Activities assigned to attitudes
people at identical levels • Lack of specialised knowledge
• Mutual Trust & Confidence may hamper communication
• Reduces top level burden process
 DIAGONAL / VERTICAL COMMUNICATION

• It Cuts across different functions and levels in the organization

• Diagonal communication helps in increasing the efficiency of
organizational activities
• Facilitates cross cordial relationships among employees of
different departments
• Problem: Departs from normal chain of command
 ORAL COMMUNICATION

• It involves exchange of message with the help of spoken words. It takes place:
 Face to face contacts
 Through Mechanical devices
• Examples: Oral Orders, personal interviews, lectures, group discussions, social
gatherings & so on
 MERITS / DEMERITS

Merits Demerits
• Less Expensive • Not possible when parties are
• More Effective at distant places
• Quick Response • May not be reliable
• Can be supported with • Cannot serve as an authentic
Gestures piece of record
• Faster • May give rise to conflicts
• Message may be ignored
 Barriers to Communication

Physical /Mechanical Language Socio - psychological

• Noise • Unclear Message • Difference in
• Distance • Words or Symbols with Perception
• Time Multiple Meanings • Difference in
• Information Overload • Technical Words or Attitude
• Physical Barrier Jargons • Emotions
• • Faulty Translations • Inattention
Use of words with
Different • Body Language • Closed Minds
Meaning and • Premature
Gestures Evaluations
• Distrust
• Resistance to
 Barriers to Communication

Barriers in
Organizational Personal Subordination
• Status relationships • Attitude of Superiors • Dislike to show
• Lack of Confidence in interest
• One-way Flow Subordinates
• Complex • Insistence of Channel
• People Generally
Organizations • Ignoring Communication resist new ideas
Structures • Filtrating of Information • Unwillingness to
• Rigid Rules and • Shortage of Time communicate upward
Regulations • Message Overload • Lack of incentives &
• Distance • Barriers in Subordination encouragement
• Miscellaneous Barriers • Supress Information
Barriers
• Physical relating to their
Barriers failures
 Measures to Overcome Barriers / Gateways
to Effective Communication

• Two – Way Channel

• Mutual Trust
• Clarity of Message
• Timely Message
• Consistency of Message
• Good Relations
• Feedback
• Empathetic Listening
• Flexibility
 Presentations: Group & Individuals

• Presentation means speaking on a topic before a selected audience

• It is a form of oral communication with an audience on some formal occasion

Features:
• Made formally before a selected audience
• Clear structure with an introduction, explanation and conclusion
• Well defined format
• Uses audio visual aids to represent facts & figures (Tables, graphs, charts, etc.)
and colours are used to make presentations attractive
• Reflects an understanding of the audience needs
 Elements of a Presentation

• Presenter
• Audience
• Specific Information (Content) to achieve a purpose

Key Points
• The whole burden of communication falls on the presenter to keep the
audience informed & interested
• The presenter has to fill the gap of silence-grasp-breaks- to answer
questions
• Making presentations is difficult for the one who has a stage fear as it
 Occasions of Presentation

• Launching a new product / service

• Presenting a new Business Plan
• Making a Sales Proposal
• Launching a training course
• Holding a conference / Seminar
• Negotiating a business deal
• Creating awareness among the members of the audience
 Planning A
Presentation
Attributes of the Audience –
number, gender, age, education,
Who To inform, To persuade,
To Influence, To Educate,
personality, status, knowledge &
so on
To Empathise or To
Entertain
M.M.
What Monipally Why
Refers to the content / explained
Scope & Need or the the
Subject Matter of the
presentation concept of
5 W’s
Time and
Context of the
presentation
When Where
 Designing a Presentation
• Introduction
• Main Body or text of the presentation
• Conclusion
• Question & Answers Session

• INTRODUCTION
 Captures listener’s attention
 Give your audience a reason to listen
 Establish your competence
 Introduce your topic & preview of your presentation
 Set proper tone for the topic & setting
 Designing a Presentation
• Main Body of the Presentation
 Consists of the key ideas, facts, figures, and any supporting material
 Should be right sequence & Logical order
 Acceptability & authenticity should be kept in view
 Points should be organised in order of importance followed by subsidiary points
• Conclusion
 Provides last chance to sell the idea
 Should be well panned & well delivered
 Several ways of concluding presentation – main key points should be summarised,
technical aspects should be taken care of
 Benefits of ideas to the audience must be highlighted in the final stage
 Designing a Presentation

• Question & Answer Session

 Encourage the audience to ask questions
 Listen to the questions carefully
 Persons who ask questions should be appreciated & complimented
 Those who ask questions for the sake of asking only should be handled
carefully
 Do not let few members to dominate the Q&A session; encourage others
to participate
 Essentials of A Good Presentation

• Right Contents
• Suitable Language
• Preparation & Mastery
• Brevity
• Logical Sequence
• Lively Delivery
• Right Humour