Business Communication

1. Introduction
 Dear student this learning task will give you general information about
basics of business communications.
 The first section is concerned with overview of business communication.
It discusses the meaning of communication, characteristics of
communication, function of communication.
 The second section will give you the information about the models and
process of communication.
 The third section explains types of communication
 the fourth section discusses principles of effective communication and
 the last section discusses legal, intercultural and intercultural aspects of
business communications in general.
 Conti…
Objectives
• After studying this learning task, you will be able to:
 Explore what is business communication is all about.
 Explain what is models and process of communication in
details.
 Identify the known principles of communication.
 Differentiate legal, cultural and intercultural aspects of
communications.
 Meaning and definition of communication
Business communication has been, and can be defined in several ways.
 This is mainly because people can define it from different perspectives
depending on their professional backgrounds and work behaviors
 Before we use the term any further, we should establish a common
understanding of its definition.
Some known definitions of communication are as follows:
 Communication is
- the exchange of messages in writing, speaking, or images ,
- it is the transfer of information from one person to another.
- it is the exchange of meanings between individuals using a common
symbol system and
- it can be the process whereby one person transmits a message through a
channel to another person
 Conti…..
 The word 'communication' is derived from communis (Latin)
meaning 'common'.

 It stands for a natural activity of all human beings to convey

opinions, feelings, information and ideas to others through
words (written or spoken), body language, or signs.

 In other words, communication is an act of imparting ideas and

making oneself understood by others .
 Cont…..
 George Vardhaman defines effective communication
as "purposive interchange, resulting in workable
understanding and agreement between the sender and
receiver of message".

 Robert Anderson adds the element of medium in his

definition communication is interchange of thoughts,
opinions, or information by speech, writings, or
signs".
 Conti……
 It is a way of reaching others with facts, ideas,
thoughts and values.
 It is a bridge of meanings among people so
that they can share what they feel and know.
By using this bridge, a person can cross safely
the river of understanding that sometimes
separate people”.
 Conti….
• Then, based on the above definitions of communication
‘Business communication’ is communication that occurs in an
organizational context in order to:
 exchange information, ideas, plans, strategies, offer the best
of customer services and make decisions, rules, proposals,
contracts, and agreements, etc.
 Thus, communication literally means ‘sharing of ideas in
common’.
 In business management ideas, objectives, instructions,
suggestions, etc. have to be exchanged among the
managerial staff for the purpose of planning and executing
the business policies. In fact, communication is regarded as
the “lifeblood” of every organization.
 Conti….
 In addition to understanding, communication
involves sharing, interacting between people
in order to exchange meaning
 When you use language, meaning facilitates an
appropriate response that indicates that the
message was understood.
 For example, you ask for a drink, the other person
gives you one. Your mind constructs meaning as
you interpret the message sent.
 Basic Characteristics of communication
1. Communication is a Process
 Communication involves an interaction between or among people.

 On its most basic level, communication involves someone who initiates the
exchange, usually called a sender or source.

 The sender has something to communicate and sends a message to a second person,
the receiver.

 In this case, many messages were sent, and both people played the role of sender
and receiver.

 Messages sent used a variety of media, or physical bases, for carrying messages.
 Speech was the medium in the case of the words, and
 light waves were the medium for the nonverbal messages.
 Conti…..
2. Communication is Symbolic
 The most familiar and widely studied symbols
are linguistic – written and spoken words – but
there are other important symbol systems as
well.
 Foremost among these are the nonverbal
languages –
body movement, facial expression, gestures, and
the like-and the languages of the arts.
 Conti…
 Symbols do not have any actual connection to what they
represent

 the use of them in communication implies that the sender and

the receiver share a common symbol system. Without this
commonality, a sender and receiver would be unable to
exchange information
 Conti…..
3. Communication is Contextual
 The shared or common symbols system is part of what we refer to when we say
that communication occurs in a context.

 All English speakers, for example share a certain basic understanding of the
world. Other languages provide different contexts. When we learn a language we
are learning to name and recognize all those things that our culture feels are
worth attending. Sharing the same basic language- English, Afan Oromo,etc- is
one way that communication is contextual.

• Sharing specialized languages associated with our jobs, hobbies, class, and
educational levels is another type of context that makes communication
possible.

• What we say to a person in a bank is determined in part by our needs for being at
the bank and in part by what we know about communication behavior in banks.
 Conti…..
 Each culture and social group has special
communication rules that vary from context to
context.
 Many miscommunications and
misunderstandings arise because the sender
and the receiver do not share the same context.
 Conti….
4.Communication is Purposive
 Generally, communication is done for a
purpose. We have some motivation for
communicating, even if we are not consciously
aware of it
 In other words, we have some motivation
behind our communication efforts.
 Conti…
 Understanding that communication is purposive and motivational
helps to explain some of the behavior of both the sender and the
receiver.

 What motivates the sender to speak may not be what motivates the
receiver to listen

 Individual differences play a big role in understanding

communication as purposive.

 What motivates one person may not motivate another, and what
motivates one person one day may not motivate him or her another
day.
 Conti…
5. Communication is Two-Way
 The existence of both a sender and a receiver in
a communication activity presupposes that the
communication process is, generally speaking,
two ways.
 Even intrapersonal communication, when we
are talking to ourselves either aloud or in the
privacy of our own brains, communication is
essentially two ways because we are acting both
as sender and receiver.
 Conti…..
6.Communication is Irreversible
 At one time or another, we have all wished we could take back
words we regretted uttering. Unfortunately, this is not
possible.

 Our words and deeds are recorded in others’ memories, and we

can’t erase them. As the old saying goes, “people may
forgive, but they don’t forget”.
 Conti…….
7. Communication is not a Panacea
 Although communication can smooth out the bumps and straighten the road
to success, it will not always get you what you want.

 If the quality of communication is poor, the results are likely to be

disappointing..

 Misunderstandings and ill feelings can increase when people communicate

badly.

 Even effective communication will not solve all problems: there are some
situations in which the parties understand one another perfectly and still
disagree.
 These limitations are important to understand as you begin to study
communication on the job.
 Communication skills
Communication is part of the three major skills needed by
managers (human skills, conceptual skills, technical skills).
A. Technical skills
 Technical skills are those skills necessary to accomplish
specific tasks within the organization. Assembling a computer,
developing a new formula for a frozen food additive, and
writing a press release each require technical skills.
B. Interpersonal skills
 Interpersonal skills comprise the manager’s ability to
communicate with, understand, and motivate individuals and
groups. As we have already noted, managers spend a large
portion of their time interacting with others.
 Cont…
C. Conceptual skills
 Conceptual skills refer to the manager’s ability to think in the
abstract.
 A manger with strong conceptual skills is able to see the “big
picture.” That is, she or he can see potential or opportunity
where others see roadblocks or problems.
 Managers with strong conceptual skills can see opportunities
that others miss.
 Functions of Communication

 Communication has many functions in the day to day activity of

organizational businesses. Most on-the-job communication serves at least
one of the four purposes.
 To Tell: communication that presents information is common in most jobs.
-Sometimes this means explaining how to do a job-for example, how to fill in
a purchase requisition to order supplies, how to use the computer terminal
to see whether and order has been shipped, or how to approach potential
customers about a new product your company has developed.

 To sell: while as telling deals almost exclusively with facts, selling on the
other hand involves feelings and attitudes. You don't have to have the word
"sales" your job title to be a salesperson. In fact, everyone needs to be
persuasive communicator at one time or another. Convincing the boss that
you deserve a raise or more responsibility calls for selling.
 Conti..
 To Learn: The ability to understand others might be less obvious and dramatic
than telling or selling skill, but it is no less important. Take a moment to recall
the most effective on- the-job communicators you have known, and you will see
that they were almost certainly good listeners.

 To Decide: As you advance in your career, the number and importance of

decisions you face will grow.
-What is the best approach to the new job?
-How can we handle these people?
-Where should we put the resources we have?
-Even the highest decision-makers in the biggest companies do not make judgments
like these on their own.
-They trade ideas with others, testing and evaluating.

In other words, good decisions require good communication.

•
The Role of Communication in Business

 Communication is the most vital element of any

organization.
 Organizational effectiveness depends upon the quality
of communication.
 Managers have to communicate with subordinates
and superiors. They spend more than 75% of their
effective time in communicating. It is
communication, which gives life to organizational
structure.
 Conti..
 Communication is vital for the very existence of the
organization.
 Organizations have to communicate with external organizations,
agencies and incorporate various inputs for survival and growth.
 An effective communication is an essence of successful
managers.
 As the organization grows, the role of communication becomes
more critical. Therefore, there is a need for adjustment in the
communication systems according to shape, size, performance,
location and the services that the organization offers.
 Effective management is an output of effective communication.
 Conti…
 Effective communication is essential for
management to successfully perform its functions.
• It is an essential ingredient in management –
employee relationship.
• Action in every field – management, marketing,
accounting, finance and all other areas - is
facilitated by efficient and effective
communication.
 Communication in Management

 Everyone in a business organization is part of

management in one way or another, whether managing
people, managing projects, or managing his or her own
activities.
 Mangers at all levels plan, organize, direct, and control
organizational activities.
 If you supervise other people you will also have staffing
and hiring responsibilities. Each of these functions relies
heavily on communication to achieve goals.
 Communication in Agri- Business

 Agri-business more involves

recognizing a consumer’s need,
developing a product and services to satisfy that need,
delivering them to the right place, and
offering them at a price the consumer will pay.
 Market research helps an organization to answer
questions about what products and services it should
use its resources to create.
 Conti….
• For example, companies may conduct demand
analysis to collect accurate information about their
potential customers’ needs.
 The “4p’s” are (1) product development, (2)
promotion, (3) pricing, and (4) distribution (placing);
these make up the marketing mix.
 Communication plays a crucial role in each of these
activities, as discussed in the following paragraphs:
 Conti…
 Product: Companies are constantly revamping current
products and developing new ones to stay competitive
and meet customer needs.
-They use information from market research, sales
reports, and other sources, and implements new
technologies and ideas.
-Beyond knowledge of the product development process,
a central skill in achieving goals is communication
skills.
 Promotion: A company promotes products and services
through advertising, personal selling, and publicity.
 Conti….
 Price: The price of a product or service sends a nonverbal
message to customers. Price reflects the cost of predicting a
product or providing a service. It also sends a message about
value and quality.
 Place: Distributing products and services to consumers also
involve strong communication skills.
 Determine the most cost-effective method of delivery involves
 (1) identifyingthe choices,
 (2) investigating the various possibilities,
 (3) negotiating arrangements for distribution, and
 (4) monitoring the entire process.
 Communicating in Accounting

 Accounting involves recording transactions, measuring

performance, analyzing deviations in performance, and
reporting results to management or to other interested
parties.
-Each of these activities requires good communication.
• In examining the financial picture of a company,
accountants must report what is found-both good and bad.
• Strong communication skills can help accountants present
their results in an objective manner, and recommend
useful courses of action.
 SECTION 2: Model and Process of Communication

Models of Communication
• There are many different models of the
communication process. We use one here that draws
on the familiar conventions of radio transmission.
• It represents a way in which information is regularly
transmitted in the real world.
• Language works in a similar way to a radio
transmission system.
• The information is encoded, transmitted, received,
and decoded.
 Conti….
• In an ideal system, the decoded information would match the
original exactly.
• In the real world, encoding and decoding are liable to distortion,
the medium is not entirely transparent, there is noise or
interference, and feedback is needed.
• Noise; interference with effective transmission and reception of a message. For example;
– physical noise or external noise which are environmental distractions such as poorly
heated rooms, startling sounds, appearances of things, music playing some where else,
and someone talking really loudly near you.
– physiological noise are biological influences that distract you from communicating
competently such as feeling sick, exhausted at work, the ringing noise in your ear, being
really hungry.
– semantic noise are word choices that are confusing and distracting
• The centre of communication is the medium, which links the
transmitter and the receiver.
 Conti….
• The original model consisted of five elements:
 An information source, which produces a message;
 A transmitter, which encodes the message into signals;
 A channel, to which signals are adapted for transmission;
 A receiver, which decodes (reconstructs) the message from the
signal;
 A destination, where the message arrives.
• The strengths of Shannon and Weaver’s model are its
 Simplicity
 Generality, and
 Quantifiability
• The model is presented below.
Conti….
 Process of Communication

 The word process indicates that it is an activity that is

connected with a series of steps that are deliberately
undertaken to reach a goal.
 Communication means the process of passing information
and understanding from one person to another.
 It is defined as “the process of exchange of information,
ideas and opinions which bring about integration of
interests aims and efforts among the members of a group
organized for achievement of predetermined goals.
 Conti…
1. Source (sender): is the person or organization of a communication that has information to
share with another person or group of people.
-source may be an individual (say, a salesperson or hired spokesperson, such as a celebrity,
who appears in a company’s advertisements) or a nonperson entity (such as the
corporation or organization itself).
2. Encoding: begins when the source selects words, symbols, pictures, etc, to represent the
message that will be delivered to the receiver(s).
– Encoding involves putting thoughts, ideas, or information into a symbolic
form.
– The sender’s goal is to encode the message to be understood by the receiver
using words, signs, or symbols that are familiar to the target audience.
– Many symbols have universal meaning, e.g., the familiar circle with a line
through it denotes no parking, no smoking, etc.
 Cont…
3. Message: is developed in the encoding process and contains the
information or meaning the source hopes to convey.
• May be verbal or nonverbal, oral or written, or symbolic.
• Message is the content of the communication; it is an idea,
thought, feeling or emotion that is organized or composed by the
sender.
• The symbols that represent the message are called codes.
• Nonverbal codes: are all intentional or unintentional codes other
than words or written materials by which a person transmits a
message.
Example: facial expressions, movements of hands, eye contact,
clothing and other body gestures, which can represent
nonverbal communication.
 Cont…
4. Channel: is the medium in the communication process that the sender uses to
transmit the message to the receiver. In transmitting a particular message, one
medium may be more effective than the other.

• Illustration: assume that an individual desires an immediate reply to a question.

Although the message could be in either an oral or a written form,
– the oral medium most likely will be more effective because of the immediacy,
if required.
 In selecting an appropriate channel, the sender must assess the following
factors:
• need for immediate transmission of message, (fax instead of letter)
• need for immediate feedback, (phone instead of fax)
• need for permanent record of the message, (written rather than oral)
• degree of negotiation and persuasion required, (personal meeting – face-to face)
• destination of the message, and (far flung area – letter only)
• nature of the content of the message(has to be a contract –written)
 Conti…
 In addition, the sender should consider
his/her and that of the receiver’s skill in using
each of the alternative channels.
 Communication rarely takes place over only
one channel; two or three even four channels
are normally used simultaneously.
 Cont…
• 5. Receiver: The receiver is the person(s) with
whom the sender shares thoughts or
information. Generally, receivers are any
person who read, hear, and/or see the
marketer’s message and decode it.
 Cont…
6. Decoding: is the process of transforming the sender’s
message back into thought.
It is heavily influenced by the receiver’s frame of
reference or field of experience, which refers to the
experiences, perceptions, attitudes, and values he or
she brings to the communication situation.
-For effective communication to occur, the message
decoding process of the receiver must match the
encoding of the sender. Simply put, this means the
receiver understands and correctly interprets what the
source is trying to communicate.
 Cont…
• 7. Response/Feedback: The receiver’s set of reactions after seeing,
hearing, or reading the message is known as a response.
• Receivers’ responses can range from non-observable actions such
as storing information in memory to immediate action such as
dialing a toll-free number to order a product advertised on
television.
• Senders are very interested in receiver’s feedback
• Feedback, which may take a variety of forms
• For example, in a personal-selling situation, customers may pose
questions, comments, or objections or indicate their reactions
through nonverbal responses such as gestures and frowns. The
salesperson has the advantage of receiving instant feedback through
the customer’s reactions.
 Barriers to communication

• conducting effective communication is not an easy

activity, Since it is a process.
• it may be broken-down at any point in time. You;
therefore, have to learn the causes of communication
barriers and methods of tackling the same.
• Why is it important to know the causes of communication
breakdown? You might have questioned. The answer is
simple.
• It is because you should know what types of barriers you
might face in business communication; so as to conduct
the whole process effectively.
 Conti…
• Several factors may disrupt the communication
process or serve as barriers to effective
communication.
• A communication breakdown or barrier may
occur at any point in the communication process.
– The cause may be ascribed to the sender, the
message, the channel or the receiver.
• Furthermore, a barrier may arise from the
environment in which the communication takes
place.
 Conti…
• There are various problems that hinder the message does
not reach the receiver such as,
– the problems of encoding and decoding,
– faulty selection of channel,
– wrong language or
– the interpretation of the message.
• These problems are called ‘noise’ in communication.
• This unplanned distortion or interference is known as
noise.
• Errors or problems that occur in the
– encoding of the message,
– distortion in a radio or television signal, or
– distractions at the point of reception are examples of noise.
 Conti…
• When you are watching your favorite commercial on TV
and a problem occurs in the signal transmission, it will
obviously interfere with your reception, lessening the
impact of the commercial.
• Noise may also occur because the fields of experience of
the sender and receiver do not overlap.
• Lack of common ground may result in improper encoding
of the message— using a sign, symbol, or words that are
unfamiliar or have different meaning to the receiver.

• The more common ground there is between the sender and

the receiver, the less likely it is this type of noise will occur.
 Barriers in relation to the sender’s idea

 The world constantly bombards us with

information: Sights, sounds, scents and so on.
 Our minds filter Stream of sensation and organize
it into a mental map that represents our perception
of reality.
 As you view the world, your mind absorbs your
experiences in a unique and personal way.
-For example, if you and a friend go out for
lunch, each of you will mentally grasp different
things.
 Cont…
 Because your perceptions are unique, the ideas
that you want to express differ from other
people.
 Even when two people have experienced the
same event, their mental images of that event
will not be identical.
 As a communicator, you filter out the details
that seem unimportant and focus your
attention on the most relevant and general, a
process known as abstracting.
 Barriers in transforming idea to message

 the idea in your mind is transformed into words; you decide such issues
as length, organization, tone, and style of the message.
 You can express an idea in an almost infinite number of ways, but
something makes you choose one approach over another
 Your choice of words depends on your subject, your purpose, your
audience, and your personal style or mood.
 To some extent, your choice of words also depends on your cultural
background.
 When you choose your words, you signal that you are member of a
particular association and that you know the code. The nature of your
code-your language and vocabulary-imposes its own limits on your
message.
 For example, the language of a lawyer differs from that of an
accountant or a doctor, and the difference in their vocabularies affects
their ability to recognize and express ideas.
 Conti…
 Several things can go wrong when you’re
formulating a message.
 Typical problems involve
 indecision about message content,
 lack of familiarity with the situation or the
receiver,
 emotional conflicts, or difficulty in expressing
ideas.
 Conti…
Indecision about Content
 Deciding what to say is the first hurdle in the communication
process.
 Many people make the mistake of trying to convey everything
they know about a subject.
 When a message contains too much information, it is difficult to
absorb.
 If you want to get your point across; therefore, you have to
decide what to include and what to leave out, how much detail
to provide, and what order to follow.
 If you try to explain something without first giving the receiver
adequate background, you will create confusion.
 Conti…
Lack of familiarity with the situation or the receiver
 Creating an effective message is difficult if you don’t know how it will be
used.
 Let’s say you’re writing a report on the market for sports equipment.
 If you don’t know the purpose of the report, it’s hard to know what to say.
 What sort of sports equipment should you cover? Should you include
team sports as well as individual sports?
 Should you subdivide the market geographically or according to price
ranges? How long should the report be? Should it provide conclusions
and recommendations or simply facts and figures?

 Unless you know why the report is needed, you really can’t answer these
questions intelligently.
 Conti…
 Lack of familiarity with your audience is an equally serious
handicap.
 You need to know something about the biases, education, age,
status, and style of the receiver to create an effective message.
 for example, If you’re writing for a specialist in your field, you
can use technical terms that might be unfamiliar to a layperson.
 If you’re addressing a lower-level employee, you might approach
a subject differently than if you were talking to your boss.

 Decisions about the content, organization, style, and tone of

your message, all depend, at least to some extent, on the
relationship between you and the audience.
 Conti…
Emotional Conflicts
 Another potential problem in developing the message arises
when the sender has conflicting emotions about the subject
or the audience.
 For example, you’ve been asked to recommend ways to
improve the organization of your department. You conclude
that the best approach is to combine two positions. But this
solution will mean eliminating the job of one of your close
associates. As you prepare your report, you find yourself
apologizing for your recommendation. Even though you
believe your position is justified, you cannot make a
convincing case.
 Conti…
Difficulty of Expressing Ideas
• Lack of experience in writing or speaking can also prevent a person
from developing effective messages. Some people have limited
education or a lack of aptitude when it comes to expressing ideas.
• Perhaps they have a limited vocabulary or are uncertain about
questions of grammar, punctuation, and style. Or perhaps they are
simply frightened by the idea of writing something or appearing
before a group. In any case, they are unable to develop an
effective message because they lack expertise in using language.
• Problems of this sort can be overcome, but only with some effort.
The important thing is to recognize the problem and take action.
Taking courses in communication is a good first step.
Barriers while the Message is transmitted

• The Third step in the communication process is physical

transmission of the message from sender to receiver.
• The channel may be nonverbal or verbal, written or
spoken. Beyond that, you can convey a message by phone,
computer, letter, memo, report, face-to-face exchange, or
other medium.
• The transmission channel and the medium you choose
depend on the message you want to convey and on other
factors, such as the location of your audience, the need for
speed, and the formality of the situation.
 Conti…
 When problems arise during the transmission
phase of the communication process, they re often
physical: bad connections, poor acoustics, and
illegible copy.
 Although defects of this sort (called “noise”) seem
trivial, they can completely block an effective
message.
 For this reason, you should exercise as much
control as possible over the physical transmission
link.
 Conti…
 Aside from conflicting signal, perhaps the most
troublesome transmission problem arises when the
communication chain has too many links. Because
everyone’s mental map is different, some distortion is
likely when messages are transferred from person to
person.
 The original message is interpreted and retold
differently by each person.
 By the time the message reaches the end of the line, it
may have only a vague resemblance to the original
version. The longer the chain, the bigger the problem
 Barriers while the Receiver Gets the Message

 For communication to occur, the receiver has to get the message.

 If you send a letter, the recipient has to read it before she or he
can understand it.
 If you’re giving a speech, the people in the audience have to be
able to hear you, and they have to be paying attention.
 But physical reception is only the first step.
 The receiver also has to absorb the message mentally.
 In other words, the message has to be understood and stored in
the receiver’s mind.
 If all goes well, the message is interpreted correctly: The receiver
assigns the same basic meaning to the words as the sender
intends and responds in the desired way.
 Conti…
 Like transmission problems, problems during the reception
phase often have a physical cause.
 The receiver may be distracted by competing sights and sounds,
an uncomfortable chair, poor lighting, or some other irritating
condition. In some cases, the barrier may be related to the
receiver’s health.
 for example, Hearing or visual impairment, or even a headache,
can interfere with reception of messages. These annoyances
don’t generally block communication entirely, but they may
reduce the receiver’s concentration.
 Perhaps the most common barrier to reception is simply lack of
attention on the receiver’s part.
Barriers while the receiver reacts and gives feedback to the sender

 Feedback is the final link in the communication chain. After

getting the message, the receiver responds in some way and
signals that response to the sender. The signal may take the
form of a smile, a long pause, a spoken comment, a written
message or an action. Even a lack of response is, in a sense, a
form of response.
 It is a key element in the communication process because it
enables the sender to evaluate the effectiveness of the
message.
 Feedback plays an important role by indicating significant
communication barriers: differences in background, different
interpretations of words, and differing emotional reactions.
 Conti…
Different backgrounds
 Differences in background can be one of the hardest communication
barriers to overcome. When the receiver’s life experience differs
substantially from the sender’s, communication becomes more difficult.
 If you’ve ever tried to explain something to someone distinctly different
from yourself, you know the problem. Age, education, gender, social
status, economic position, cultural background, temperament, health,
beauty, popularity, religion, political belief, even a passing mood can all
separate one person from another and make understanding difficult.
 Communicating with someone from another country is probably the
most extreme example of how background may impede
communication.
 Conti…
Different interpretations of words
• Another communication barrier results from differing interpretations of words.
• Part of the problem in understanding messages is built into language, which
uses words as symbols to represent reality.
• Language is an arbitrary code that depends on shared definitions. But there is a
limit to how completely any of us can share the same meaning for a given word.
• Obviously, the fuzziness of words is not an insurmountable problem. People
manage to communicate with one another all the time, despite the limitations
of language.
• But it’s useful to remember that words, by themselves, don’t mean anything.
Their meanings depend on the ideas they evoke in people’s minds, and no two
minds are identical.
• Try to overcome differences in the interpretation of words by using the most
specific and accurate language possible.
 Conti…
Different emotional reactions
 Finally, different emotional reactions can be serious barriers to
communication.
 Interestingly enough, one person may react differently to the
same words on various occasions.
 A message that might be perfectly clear and acceptable in one
situation can lead to confusion and hostility in another, depending
on the emotional relationship between receiver and sender.
 Every message contains both a content meaning, which deals with
the subject of the message, and a relationship meaning, which
suggests the nature of the interaction between sender and
receiver.
 Conti…
 Communication can break down when the receiver reacts
negatively to either of these meanings. For example, When the
boss says, “Get that monthly report on my desk by five o’clock
tonight,” the employee may become angry on two counts:
Finishing the report on time may be difficult, and the boss has the
power to make unreasonable demands. Although the employee
may understand the message perfectly, communication suffers
because the message creates hostility.
 As you know from your own experience, discussing something
with another person is difficult when either of you is upset. An
upset person tends to ignore or distort what the other person is
saying and is often unable to present his or her own feelings and
ideas effectively.
 Conti…
Complexity of the message
 Although all communication is subject to misunderstandings, business
communication is particularly difficult.
 The material is often complex and controversial, yet both the sender
and the receiver may face distractions that divert their attention.
 Furthermore, the opportunities for feedback are often limited, making
it difficult to correct misunderstandings.
 Business messages are often hard to formulate. For one thing, you
must communicate both as an individual and as a representative of an
organization. Thus, you must adjust your own ideas and style so that
they are acceptable to your bosses. In fact, you may be asked,
occasionally, to write or say something to someone that you disagree
with personally.
 Conti…
 For example, suppose that you work in the personnel
department as a recruiter for your firm. You have interviewed a
person who you believe could make an excellent employee, but
others in the firm have rejected this person’s application. Now
you are in the position of having to write a letter, telling the
candidate, in effect, “Sorry, we don’t want you”. That’s tough
assignment. Even when you agree with the message, you may
have emotional reservations about expressing it.
 You may know that you are doing the right thing, which you have
no choice but to fire this or that program, but you also would
rather avoid causing hardship or disappointment. Organization is
full of difficult decisions like these, decisions that affect people’s
lives.
 Conti…
Difficult conditions for transmission and reception
 Assuming that you succeed in preparing the message, you still have to get
through to your audience.
 In many business organizations, the filters between you and the receiver are
many; secretaries, assistants, and receptionists. Just getting through by
telephone can take a week if you’re calling someone who’s protected by layers
of gatekeepers. Worse yet, your message may be digested and distilled, and
probably distorted, before it is passed on to the intended receiver. Those same
gatekeepers may also translate, embellish, and augment the receiver’s ideas
before passing them on to you. When the message finally does reach the
receiver, he or she may be unable to digest it in peace. You may have to
compete with a variety of interruptions: The phone rings every five minutes,
people intrude, meetings are called, and crises arise. In short, you rarely have
the benefit of the receiver’s undivided attention. Your message may be picked
up and put down several times.
 Conti…
Differences between sender and receiver
• Your biggest problem is the gulf between you
and your receiver. In your work, you often
communicate with an unknown and unseen
audience. And even when you know the other
party, you may be separated by differences in
function, status, age, or allegiance.
• These differences make communication very
difficult indeed.
 Group assignment
• Group 1- Business letter writing
• Group 2- Memo and report writing
• Group 3- Telephone vs face to face communication and
active listening
• Group 4- Speech and interview
• Group 5-Non verbal communication
• Group 6-The difference between effective and non-
effective communication
• Group 7-Write on the legal aspect practiced in the
business organization relating to agribusiness
 Section 3
 Types of Communication
 Formal Communication
 Formal networks are systems designed by
management to dictate who should talk to whom to
get a job done.
 In a small organization, networks are so simple that
they may hardly be noticeable; in a larger
organization, networks become more intricate.
 Organizational charts-sometimes called tables of
organization- represent formal networks.
 Organizational charts describe who has authority
over whom.
 Conti…
 People from different departments work together
daily in most organizations, and flow charts provide
a kind of road map that guides them through
complicated task.
 And since someone is ultimately responsible for
getting a job done well organizational chart helps
to know where that responsibility lies.
 The formal communication network consists of
downward, upward, and horizontal
communications
 Conti…
Downward Communication
 downward communication takes place
whenever a supervisor sends a message to
one or more subordinates.
 Conti…
Types of downward messages
There are several types of downward communication:
 Job instructions: Directions about what to do or how to do it. E.g, “When you
restock the shelves, put the new merchandise behind the old stock.”
 Job rationale: Explanations of how one task relates to another task. “We rotate the
stock like that so the customers won’t up with stale merchandise.”
 Procedures and practices: Information about rules, regulations, policies, and
benefits. “Don’t try to argue with unhappy customers. If you can’t handle them
yourself, call the manger.”
 Feedback: Information about how effectively a person is performing. E.g, “You’re
really catching on fast. If you keep up the good work, you’ll be an assistant
manager by the end of the year.”
 Indoctrination: Information aimed at motivating employees by impressing the
mission of the organization upon them and specifying how they should relate to it.
 Conti…
 Problems with Downward Communication
• Even the best organizations often don’t use downward
communication as effectively as possible.
• In some cases there isn’t enough information, and in
others the messages that do travel down aren’t clear
or complete.
• These problems fall into several categories.
 Lack of awareness.
 Insufficient or unclear messages.
 Message overload.
 Conti…
Upward Communication-occurs when messages flow from subordinates to
superiors. Many leading businesses attribute their success to the emphasis on
upward communication in their organization.
• Types of upward messages
• Upward communication can convey four types of messages.
 What subordinates are doing: “We’ll have that job done by closing time
today.”
 Unsolved work problems: “We are still having trouble with the air conditioner
in the accounting office.”
 Suggestions for improvement: “I think I’ve figured a way to give people the
vacation schedules they want and still keep our staffing up.”
 How subordinates feel about each other and the job: “I’m having a hard time
working with Lemma. He seems to think I am mad at him.” Or “I’m getting
frustrated. I’ve been in the same job for over a year now, and I’m itching for
more responsibility.”
 Conti…
Problems with Upward Communication
• Three factors create problems with upward
communication.
 Risk.
 Distortion.
 Status differential.
 conti…
• Most of the responsibilities for improving upward
communication rest on managers.
• A number of vehicles facilitate upward messages; to
name a few, an “open door” policy, grievance
procedures, periodic interviews, group meetings, and
the suggestion box, to name a few.
• Informal types of contact can often be most effective;
chats during breaks, in the work place, or at social
gatherings can sometimes tell more than planned
sessions.
 Conti…
Horizontal Communication- (sometimes called “lateral”)
communication consists of messages between members
of an organization with equal power.
 The most obvious type of horizontal communication goes
on between members of the same division of an
organization; office workers in the same department, co-
workers on a construction project, and so on.
 In other cases, lateral communication occurs between
people from different areas; accounting call maintenance
to get a machine repaired hospital admissions calls
intensive care to reserve a bed, and so on.
 Conti…
Types of horizontal messages
Horizontal communication serves five purposes:
 Task coordination: “Let’s get together this afternoon, and set up a
production schedule.”
 Problem solving: “It takes three days for my department to get reports
from yours. How can we speed things up?’
 Sharing information: “I have just found out that a big convention is
coming to this town next week, so you ought to get ready for lost of
business.”
 Conflict resolution: “I’ve heard that you were complaining about my
work to the boss. If you’re happy, I wish you’d tell me first.”
 Building rapport: “I appreciate the way you got that rush job done on
time. I’d like to say thanks by buying you lunch when it’s convenient.”
 Conti…
Factors inhibiting horizontal communication
• Despite the importance of these five functions,
several forces work to discourage communication
between peers.
 Rivalry.
 Specialization.
 Lack of motivation.
 Information overload.
 Physical barriers.
 Informal Communication
 Alongside the formal networks, every
organization also has informal networks-
patterns of interaction that follow neither the
lines of authority described in both tables of
organization, nor the functions that flow
charts picture.
 Conti…
 There are several reasons why informal networks are so important.
 Informal networks carry a tremendous amount of information.
 In one study, researchers analyzed the communication of general
managers over periods of six months to a year. They found that the
managers spent a great deal of time with people who were not direct
subordinates, superiors, or peers. Many of these people seemed
relatively unimportant to outsiders: secretaries, lower-level
subordinates, and supervisors with little power.
 Despite their unrelated job descriptions and low official status,
successful managers all seemed to cultivate these contacts.
 Speed- Since they are not forced to follow official channels, these
informal sources often provide information much faster than official
methods.
 Conti…
 Accuracy- Informal contacts often provide more
accurate information than official channels.
 Research has demonstrated that informal networks are
consistently accurate-between 80 and 90 percent according
to many studies.
 Informal messages are relatively accurate because their
face-to–face nature allows more clarification than the
written, one-way, serially transmitted messages that
come via formal channels. However, as the emotional
impact of a message grows, the chances of its being
distorted increase.
 Conti…
 Informal networks develop for several reasons.
Some are based on physical proximity.
 Despite their distance on an organizational chart,
some people communicate simply because they spend
time close to one another.
 some networks are based on personal friendships.
 Sometimes these friendships would exist even if there
were no working relationship between the members.
 Functions of informal communication
 Not all informal messages are idle rumors. As the
following examples show, informal
communication can serve several useful functions.
 Confirming- Some informal communication
confirms formal messages. You have probably
heard this sort of confirmation yourself: “The boss
is really serious about cutting down on long–
distance calls this time. I heard him yelling about
it when I walked past his office.”
 Conti…
• Expanding- Informal communication can fill in the gaps left by
incomplete formal messages. You might say to an experienced
co–worker: “The invitation to the office says ‘casual dress.’ What
does that mean-jeans and T-shirt or sport coat and tie?”
• Expediting- Informal networks can often deliver messages more
quickly than official channels.
• Contradicting- Sometimes informal networks contradict official
messages.
• Circumventing- Informal contacts can sometimes help you bypass
official channels that are unnecessarily cumbersome and time-
consuming.
• Supplementing- Sometimes even a management realizes that
informal communication can get the job done better than the
more formal variety.
 Forms of communication

• This subsection can be seen as medium of transmission which

classified into two: verbal (oral & written) and non-verbal.
• Oral Communication
• Speech
• Speech is the planed transmission of a specific message.
Speaking on a particular subject in front of a group of people
can be termed as speech. In other world, delivering an oral
presentation before an audience is known as speech.
 Types of Speeches

• Informative Speeches:
• Demonstrative Speeches:
• Persuasive Speeches:
• Inspirational Speeches:
• Graduation Speeches:
• Celebration Speeches:
• Political Speeches:
 Parts/structure of a good speech

• Every speech, good or bad has the following components.

• An introduction: Introduction is good; it captivates
audiences' attention and stirs up interest: sends
questions, expectations and anxieties running in the
minds of the audience. Since poor introduction, kill their
appetite.

• The body: All the points you may have gathered in the
research will now be knit together beautifully and well
explained to answer the questions your audience are
likely to be asking. Your points must be well explained
and objectively convincing enough that at the end, your
audience will be left in no doubt but rather have clear
understanding of your impressions.
 Cont…
• The conclusion: the last line of a good presentation
should leave a lasting impression on people's minds.
The conclusion should be food for thought, something
people should remember long after they may have
forgotten everything else, including the speechmaker.
•
 Guidelines for effective speech

• Identification of purposes: Without proper selection of the objectives,

speeches become meaningless.
• Analyzing the audience: The natural of the audience must be evaluated to
take proper strategy.
• Planning the speech: Like written messages, speeches also should be
preplanned. After evaluation the audience the main idea, detailed
description and length of the speech must be fixed.
• Prepare outline: Outline of a speech helps the speaker to present the
speech in an orderly manner. The chance of omitting major points can be
minimized.
• Careful about length of speech: Appropriate length of speech should be
determined carefully by considering the purpose of the speech and time
available for such speech.
• Appropriate style: Generally, a casual style is followed for small audience
and style that is more formal is followed for big audience.
• Overcoming fears: It is very important for a speaker to overcome fears to
ensure effective speech.
 Face-to-face communication (ffc)

• All ffc is oral but all oral communications may not

be face to face. Telephonic conversation and
chatting through internet are oral
communication but cannot be termed as ffc.
When two or more persons communicate each
other through oral media in their physical,
presence is known as face-to-face
communication. In the words of Thill and Bovee,
“ffc is the richest medium because it is personal,
it provides immediate feedback, it transmits
information from both verbal and non-verbal
case, and it conveys the emotion behind the
message.”
 Active listening

• In our daily life, we cannot make difference

between ‘hearing’ and ‘listening’.
• However, listening means interpretation of
hearing.
• That is it involves understanding of a message. In
the words of Ricks and Gow “Listening involves
decoding the message so that its content can be
used.” Thus, it can be stated that listening starts
with hearing and ends with interpreting and
evaluating the message.
• Listening is "the process of receiving, attending
to and assigning meaning to aural stimulus".
 Guidelines for effective listening

• Stop talking: when we are not talking, we are inclined to concentrate on what to say nest
rather than on listening to what is being said. Therefore, you must stop talking before you
can listen.
• Put the talker at ease: If you make the talker fell at ease, she or she will do a better job of
talking. Then you will have better input with which to work.
• Show the talker you want to listen: If you can convince the talker that you are listening to
understand rather than to oppose, you will help create a climate for information
exchange.
• Remove distraction: Certain activates can also distract the talker. So do not drawing, tap
with your pencil, shuffle papers or the like.
• Empathize with the talker: If you place yourself in the talker’s position and look at things
from her or his point of view, you will help create a climate of understanding.
• Be patient: You will need to allow the talker plenty of time. Remember that not everyone
can get to the point as quickly and clearly as you.
• Hold your anger: From our review of the workings of our mental fitters, we know that
angry minds do not contribute to communication. Angry people build walls among
themselves. They harden their positions and block their minds to other’s words.
• Go easy on argument and criticism: Argument and criticism tend to put the talker on the
defensive. Thus, he or she tends to “clam up” or get angry. Even if you win the argument,
you lose. Rarely does either party benefit from such controversy.
• Ask Questions: By frequently asking questions. You display an open mind. You show that
you are listening. You also help develop the message and ensure correctness of meaning.
 Causes of poor listening

• Boredom or lack of interest.

• The listener’s dislikeof the personality or physical appearance of the
speaker.
• A desire to change rather than accept the speaker.
• A willingness in the listener to hear only that part of the message they
agree with.
• A perception by the listener that the speaker lack credibility.
• Physical Barriers: a noisy typewriter, duplicating machine, someone's
loud voice etc.
• Personal Barriers: Illness, fatigue, and discomfort make us unable to
concentrate.
• Psychological distractions: Personal problems such as finances, buying
a house etc.
• Attitudinal biases against the speaker are another type of
psychological block to listening.
• Semantic Barriers: Semantic means "meaning of words".
 Written Communications
• 1. Business letters
• A letter is a formal piece of writing used to
exchange information of various types.
• Perhaps letter is the most widely used means of
written communication.
• Letters used for business purposes can be
termed as business letter.
• W. J. Weston said, “Business letter is the
process of accomplishing business transaction
in written form.”
 Memo and Report Writing

• Memo
• A memorandum (known as ‘memo’ in short form) is
by definition, “a written statement that you prepare
specially for a person or committee in order to give
them information about a particular matter”.
• It ensures quick and smooth flow of information in
all directions. It also enables officers to maintain
good business relationships. A memo will come to
your aid when you wish to avoid coming into
personal contact with certain colleague. Another
useful function of a memo is to establish
accountability.
 Cont…
• Report
• In the words of Dr. S. M. Aminuzzamn “Report is
document in which a given problem is examined for the
purpose of conveying information, reporting findings,
putting forward ideas, and sometimes making
recommendation. “Thus, it can be stated that a report is
a formal presentation of facts based on investigation,
which generally provides recommendations. Business
reports are analytical vehicles, which help managers in
to run the business smoothly.
• Business reports are a management tool, which enables
the managements to solve problems and make effective
decisions.
 Classification of Business Report

A. Based on mode of presentation

– Oral report: When report on a matter presented
verbally or through oral media then it is known as
oral report.
– Written report: when reports are presented in
written form then it is called written report.
B. Based on degree of formality
I. Formal
II. Informal
C. On the basis of length
1. Short Report
2. Long report
 Elements of a formal report
• A. Prefatory Parts
– Cover
– Title fly
– Title page
– Letter of authorization
– Letter of acceptance
– Letter of transmittal
– Table of contents
– List of illustrations
– Synopsis or executive summary
B. Text of the report
– 1. Introduction
– 2. Body of the text report
– 3. Summary of report
– 4. Conclusion of the text report
– 5. Recommendation of the text report
– 6. Notes of the text report
C. Supplementary parts
– Appendix
– Index
– Bibliography
 Non-Verbal Communication

Types of non-verbal communication

A. Paralanguage
B. Kinesics
– 1. General physical movement
– 2. Posture and gesture
– 3. Discrete physical movements
– 4. Facial reactions
– 5. Slight body responses
– 6. Silence
C. Proxemics
D. Chronemics
E. Environment
F. Clothing and personal appearance
 Section 4. Principles of Effective Communication
Effective Communication
• Effective communication is the act of influencing and inducing others to act in the manner
intended by the speaker or writer. Effective communication ensures that all persons and
organizations understand the message sent.
Benefits of Effective Communication:
• Steady Workflow: if the message is completely conveyed and received it will results in
positive feedback of steady workflow.
• Problem Solutions: Effective business communication helps in providing solutions to any
problem.
• Achieving Goals: Organizational goals can only be attained through effective business
communication. It makes the business relations more strong
• Enhance Productivity: It enhances productivity of both monetary and human capital in
terms of performance. People get clearer picture of what they have to give as output which
increase output in any organization.
• Global Market: You can overcome the challenges in global market only through effective
business communication. Developing right attitude is crucial to effective communication in
international markets.
• Decision making: Only through effective business communication one can make decision
making easy and timely for both customers and investors.
 Guidelines for Effective Communication
• Effective communication skills are necessary for smooth
relations with other people. They can be your family,
friends, colleagues or even strangers.
o Be Exact
o Use the word “is” carefully
o Avoid Overgeneralization
o Be sensitive to connotative meaning:
o Do not to overuse you or your
o Count from 1 to 10:
o Recognize that you don’t know all the answers to all questions
o Always remember that what others may not mean the way we
think they mean it:
o Focus on common interests rather than differences
o Think positive
 Principles of Effective communications

• These principles provide guidelines for choice of content and style

of presentation, adapted to the purpose and receiver of your
message.
• Called the “seven C’s” they are completeness, conciseness,
consideration, concreteness, clarity, courtesy and correctness.
1. Completeness
• Your business message is complete when it contains all facts the
reader or listener needs for the reaction you desire.
• Provide all necessary information: answering the five W’s
helps make messages clear:
– What you want and how much?
– When you need it?
– Where it is to be sent?
– To whom it is to be sent?
– How payment will be made?
 Cont…
• Your message is complete when it contains all facts the receiver
needs.
• Incomplete messages:
– Result in additional expenses
– Spoil goodwill
– Lead to confusion and debates
2. Conciseness
• Conciseness is saying what you have to say in the fewest possible
words.
• To achieve conciseness, observe the following suggestions:
– Eliminate wordy expressions: use single word in place of phrases. For
example, use ‘now’ instead of ‘at this time’.

– Include only relevant material: delete irrelevant words and rambling

sentences.

– Avoid unnecessary repetition: it leads to dullness.

 Cont…
– Limit repetition
• Repeating a word or an idea is one way to emphasize it.
Use a shortened form of noun and use a pronoun in place
of a noun.
 Cont…
• Emphasize Verbs
– Verbs are more powerful words in the English
Language. Stressing verbs make writing concise, clear
and powerful.
 Cont…
• Use the Active Voice
– The active voice tells who is doing what. The passive
voice tells what was done by or to whom or what.
• Active: Isabirayit will conduct a cost-benefit analysis.
• Passive: A cost-benefit analysis will be conducted by
Isabirayit.
• Active: The members elected Negash.
• Passive: Negash was elected by the members.
• Active: You have not paid your April Bill.
• Passive: Your April bill has not been paid.
 3. Consideration

• Consideration refers to giving thoughtful attention to the receiver/

sender.
• You have to prepare every message with the receiver in mind and
try to put yourself in his/her place.
• Three specific ways to indicate consideration are:
o Focus on ‘you’ instead of ‘I’ or ‘We’. People are usually concerned about
themselves than about others. They are likely to read your messages
when they see their names and the pronoun ‘you’ rather than ‘I’ or ‘we’.
o Show interest in readers/ listeners or show reader benefits. Your message
should show interest in and concern for the reader’s needs or viewpoints.
Whenever possible and true, show how your receivers will benefit from
whatever the message asks or announces.
o Emphasize the positive, pleasant facts. For most people negative words
like no, impossible, I cannot etc. have unpleasant emotions
o Apply integrity and Ethics- integrity refers to high moral standards as
honesty, sincerity, decent character etc.
 4. Concreteness

• Communicating concretely means being specific, definite, and vivid rather than
vague and general.
• Often it means using denotative (direct, explicit, often dictionary-based) rather
than connotative words (ideas or notions suggested by or associated with a
word or phrase).
• The following guidelines should help you compose concrete, convincing
messages.
• Use specific facts and figures: whenever possible, use an exact, precise
statement or a figure in place of a general word to make your message
more concrete.
• Put action in your verbs: active verbs help make your message more
specific, personal, concise and emphatic.
• Choose vivid, image-building words: business writing uses less
figurative language than does the world of fiction.
•

• Concrete words convey one and only one meaning and

more understandable than abstract words. Abstract words
have different meaning to different people.
 Cont…

• To create concrete paragraphs you should be careful

about:
– Unity
• Sentences and paragraphs have unity when they
have one main idea and other information in the
sentence supports that main idea.
– Coherence
• Unified messages are also coherent. They flow
naturally and the ideas in them relate to each other.
– Transitional Words and Phrases
• Writers use transitional words and phrases as
bridges to join ideas.
 Cont…

•Repetition: Repeating words and using pronouns in place of nouns are

other ways to achieve coherence.

•Structure: Sentence structure can make a message more interesting an

enhance clarity
 5. Clarity

• Clarity means getting your message across so that the receiver

will understand what you are trying to convey.
• Follow the following guidelines:
– Choose short, familiar, and conversational words. Avoid
Greek, Latin or other technical words.
 Cont…
• Construct short sentences and paragraphs. Generally, short
sentences and paragraphs are preferred;
• Unity: Have one or main idea in sentence, and any other points or
ideas must be closely related to it. Similarly, in paragraph, have
one main idea.
• Coherence: Words should be correctly arranged so that they
clearly express the intended meaning.
• Include examples, illustration, and visual aids when desirable.
Some important statements, words, or phrases may be underlined
numbered, typed in capital or italics.
 6. Courtesy

• Courtesy is a combination of consideration and showing good

manners.
• You can be courteous in your business communication by being
thoughtful, appreciative, and sincerely tactful.
o Avoid expressions that irritate, hurt or belittle others
o Do not ignore answering customers’ or employees’ inquires no matter
how busy you are. Sometimes silence (neglect) may be considered
significantly discourtesy. Totally ignoring inquires communicates
unfavorable nonverbal messages that may lead to loss of business or
employee morale.
o Avoid blunt behavior. Blunt behavior is common cause of discourtesy.
 7. Correctness

• The correctness principle is more than proper grammar, punctuation and

spelling.
• Though mistakes are never intentional, they spoil our image.
• Errors in the messages fall in the following categories:
– Use the right level of language,(formal, informal)
– Check the accuracy of words, figures and facts. The following words are often
confusing: a and an, anxious, eager, between and among, counsel, and council
etc.
– Maintain acceptable writing mechanisms. This refers to:
• Spelling errors
• Punctuation marks
• Capitalization
• Grammatical accuracy
• Sentences and paragraph structures
• Format for memos, letters, reports etc.
– Choose non-discriminatory expressions
– Equal treatment of sexes
– Use humankind rather than mankind
– Use chairperson rather than chairman.