BUSINESS COMMUNICATION

Meaning of Business Communication

Communication is defined as The flow of material information perception, understanding and imagination
among various parties.
Characteristics of Communication
1) It involves two persons. 2) It is essential component of communication 3) It is to inform a certain point of
view. 4) It is a two way process 5) It is a dynamic process 6) It is a systemic process.
Importance of Communication
Different employees and officials in an organization need to communicate to each other. This internal
communication with its importance is shown in the following way:
1. Setting goals and Objectives of the organisation: Communication enables all the persons in an organization
to work towards a common purpose.
2. Making and Implementing decision:- Communication is required to making and implementing Decisions.
3. Appraisal:- Communication is essential to appraisal the performance of the employees.
4. Growth of business: It ensures growth of the business.
5. Interaction between employer & employee:-Communication plays a vital role in the interaction of employer
and employee.
External Communication:
1. Hiring the employees:- The whole process of hiring the employees requires communications.
2. Dealing with customers:- Communication also plays a part in such customer related functions as credit
checking, billing, and handling complaints and questions.
3. Negotiating with suppliers and financiers:- Communication plays an important role to obtain necessary
supplies and services.
4. Informing the investors:- Balance sheet, income statement, and ratio analysis are used to inform the
investors regarding performance of business.
5. Interacting with Govt.:- Government agencies make certain rules to regulate the economy. These rules are
communicated to organizations through various papers
Significance of communication to Management
(1) Helps in getting a desired job (2) Help in maintaining social relationships (3) Helps in getting on the job
promotion (4) Helps in solving others problems
Various types of communication
(1) Formal Communication: Official Communication which follows the formal channel.
Types of Formal Communication: 1) Downward Communication 2) Upward Communication 3) Horizontal or
lateral Communication 4) Diagonal Communication
Advantages of Formal Communication:
1) Increase overall efficiency 2) Easy communication system 3) Permanent record 4) Quick accomplishment
of work 5) Maintenance of discipline 6) Ease of cooperation and coordination 7) Use as reference 8) Ease of
delegation of authority. 9) Free from mistakes

Disadvantages of Formal Communication:

1) Wastage of time 2) Inflexibility 3) Lack of initiative.4) Authoritarian attitude 5) Costly 6) Slow moving 7)
Impersonal
(2) Informal Communication: Communication between individuals and groups which does not follows the
formal channel. It is also called Grapevine or rumours.
Characteristics of grapevine: 1) It is an informal channel of communication.2) Primarily a channel of
communication of horizontal communication, it can flow even vertically and diagonally.
It is of 4 types:
Single strand: Flows like a chain.
Gossip: One person tells everyone else.
Probability: Information may move from anybody to anybody.
Cluster: Moves through selected group.
Advantages of Informal Communication:
1) It helps in creating informal groups. 2) It helps to get feedback from the employees. 3) It helps to spread
message fast 4) It is easier for employees express their feelings.
Disadvantages of Informal Communication:
1) It does not carry complete information. 2) The information may be distorted. 3) It is unreliable information.4)
Confidential information leaked out.
Difference between Formal and informal communication
Bases
Channel
Process
Source of
information
Matter
Direction of
flow
Serves

Formal
Official Channel
Slow
Easy

Informal
Unofficial Channel
Fast
Difficult

Work related
Orderly

Work and social related

disorderly

Organisational needs Organisational and Social needs

Method of Communication
1. Verbal Communication: Communication by the use of language, written or oral.
Types : 1) Oral 2) Written
2. Non -verbal Communication: Communication through the use of sign and symbol.
Types: 1) Visual 2) Audio
Oral Communication: Includes face to face conversation, conversation over the telephone, interview, and group
discussion.
Advantages : Saves time Saves money Immediate feedback Can be informal Immediate clarification
Disadvantages : Not possible for distant people in the absence of mechanical devices. Unsuitable for lengthy
messages. Message cannot be retained for long No legal validity Greater chances of misunderstanding
Not easy to fix responsibility

Written Communication: It includes letters, circulars, memos, telegrams, reports, minutes, forms and
questionnaires, manuals etc. Therefore, everything in written form falls in the area of written communication.
Advantages : Accurate Precise Permanent Record Legal Document Can reach a large number of people
simultaneously. Helps to fix responsibility.
Disadvantages : Time Consuming Expensive not in terms of postage but of the time of so many people.
Quick clarification is not possible.
Model of the Communication Process
1. Linear Model: One way Process
Categories: 1)Aristotles model 2) The Shannon-Weaver model 3) Laswells model
1. The Greek philosopher Aristotle looked at communication from the rhetorical perspective i.e. speaking to the
masses to influence them and thus persuade them.
Aristotle constructed a model with three elements: Speaker-Speech-Audience in which the basic function of
communication was to persuade the other party.
2. Shannon and Weaver Model (1949): This model (Figure 1) of Claude Shannon and Warren Weaver has
been considered as one of the most important models of communication and it has led to the development of
many other models. It is referred to as the transmission model of communication

as it involves signal

transmission for communication.

Infor
matio
n
Sourc

Transmitte
r

Message

Channel
Tr Transmitted signal
Noise
Sourc
e

Receiver
Received

Destination

Message

Signal

Figure1 Shannon and Weaver Model

In this model, the information source produces a message to be communicated out of a set of possible messages.
The message may consist of spoken or written word
3. Lasswell Model (1948) : One of the early models of communication was developed by the political scientist
Harold D. Lasswell who looked at communication in the form of a question:
Who
Says What
In Which Channel
To Whom
With What Effect

NON-VERBAL COMMUNICATION:
Communication may be verbal by written or spoken symbols (usually words) or it may be non-verbal
without words. Non-verbal messages are sometimes more clear, accurate and effective as compared to verbal
communication, because they are internationally used and understood. Non-verbal communication may be
divided into the following three categories:
1. Appearance
2. Body Language
3. Silence, Time and Sounds
1. APPEARANCE:
Appearance affects the quality of written and spoken messages as follows:
i.Written Messages:
The envelopes overall appearance size, colour, weight, postage and the letters overall appearance length
stationary, enclosures, layout, etc. may convey significant information and impressions.
ii.Spoken Messages:
Personal appearance of the speaker-clothing, jewelry, hair-style, neatness, etc. may tell about the age, sex
occupation, nationality, social, economic and job status. Similarly, appearance of the surroundings room-size,
location, furnishings, lighting, etc. may tell a lot about the message.
2. BODY LANGUAGE:
Facial expressions, gestures, posture, smell, touch, voice etc are included in body language.
i. Facial Expression:
The eyes and face may express the hidden emotions e.g. anger, fear, joy, love, surprise, sorrow, interest etc.
ii. Posture and Gestures:
The message can effectively be communicated by actions. Deaf people and traffic constables make use of
actions. In our daily life clenched fists may indicate anger, leaning forward to the speaker may reveal interest and
repeatedly glancing at the watch may be a sign of being bored.
iii. Smell:
Good or bad smell often expresses the situation e.g. smell because of oil or gas leakage warns the danger.
Similarly, fragrance and perfume convey emotions and feelings better than spoken or written words.
IV Touch:
Touching people in different ways (and places) can silently communicate friendship, love approval, anger or
other feelings.
3. SILENCE, TIME AND SOUNDS
i. Silence:
Silence is an effective medium of expressing serious feelings and emotions e.g. death of relative or loss in
business. A mistake may be admitted by silence. Silence may also confirm a statement.
ii. Time:
Time communicates in many ways, e.g. waiting for a long time may indicate interest or love and giving a short
notice means urgency.
iv. Sounds and Para-language:
The style of speaking and the volume of voice (Intonations and Modulations) of voice may produce variations
between what is said and what is meant, e.g. the words how prompt you are may criticize a person arriving too
late.

Audio- visual communication

Audio-visual communication uses the methods that are seen and heard. It makes use of short films, slides, video
tapes, telecasts etc. Examples are small advertisement films, or documentary films related to social issues etc.
Channel of Audio - visual communication: Television (TV) , Film, Internet/Web/Theatre
Graphic Communication: Communication through graphics and graphical presentation.
Important Concepts in Graphic Communication: Graphics, Visual Communication, Communication design,
Graph design, Graphical representation, Graphic communication education.
Types of Graphical displays: 1) Drawings
2) Etching
3) Line Art
4) Illustration
5) Graphs : a) Column/Bar graphs b) Line graph c) Pie graph d) Scatter plot graph e) Radar Graph f) Bubble
graph g) Stock Graph
6) Diagrams: a) Graph biased diagram b) Chart- like diargram
7) Symbols
8) Maps
9) Photography
10) Computer Graphics
11) Web Graphics
Physical and Psychological Barriers to Communication:
Each communication must be transmitted through an appropriate medium. An unsuitable medium is one of the
biggest barriers to communication.
Physical Barriers:
Noise: Noise in a factory, external disturbance in telecom facilities, poor writing, bad photocopies etc.
Time and Distance: It can also act as a barrier to communication.
Semantic Barriers:
Interpretation of Words: It is quite possible that the receiver of a message does not assign the same meaning
to a word as the transmitter had intended. This may lead to miscommunication.
Words carry different meanings, shades or flavours to the transmitter and receiver.
To minimize semantic barriers, we should Use familiar words, Clarify the shades, As far as possible, use
words with positive connotations.
Barriers caused by different comprehensions of reality are:
Abstracting means picking up few details and leaving out others.
Slanting means giving a particular bias or slant to the reality.
Inferring means drawing inferences from observation.
Socio-Psychological barriers:
Attitude and Opinions: We react favourable or are hostile according to our personal benefit.
Emotions: We cannot transmit nor receive anything correctly if our mind is agitated.
Closed Mind: We hold our opinion so rigidly that we just refuse to listen.
The Source of Communication: We react according to the trust we have in the source of communication.
Inattentiveness: We unconsciously become inattentive if communication contains new idea or if we dont like
an idea.
Faulty transmission: Part of the message is last in transmission and can also act as a barrier.
Poor Retention: Oral messages in particular are lost due to poor human retention.
Status Consciousness: We are over-conscious of our lower or higher rank and do not express ourselves
honestly.