Lesson 1:

Fundamentals of
Business Communication
Course Code: MBA 1305

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Fundamentals of Business Communication

Overview:
Introduction,
Definition,
Nature,
the Communication Situation,
Importance,
Scope,
Principles,
Functions,
Barriers, and
Process of Business Communication
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Introduction to Business
Communication

Communication

is the giving and

receiving of feedback between
individuals and/or groups for the
purpose of exchanging information.

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Definition of Business Communication

1.

2.

Business communication is the giving and

receiving of feedback between individuals and/or
groups for the purpose of exchanging information
and altering or enhancing performance.
The process by which information and feelings
are shared by people through an exchange of
verbal and non-verbal messages. The successful
transmission of information through a common
system of symbols, signs, behavior, speech,
writing or signals. The creation of shared
understanding through interaction among two or
more agents.

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Definition of Business Communication

3.

Communication is the process of exchanging

information, usually through a common system of
symbols. It takes a wide variety of forms from two
people having a face to face conversation to hand
signals to messages sent over the global
telecommunication networks. Common forms of
communication include speaking, writing, gesturing
and broadcasting. Therefore, communication means
to inform, tell, show, or spread information. When a
person communicates, he/ She establishes a
common ground of understanding. In the
organizational context, it brings about a unity of
purpose, interest and effort.

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Nature of Business Communication

It

is a process
It is inevitable
Meaning based
Communication can be
intentional and unintentional
Communication is
systematic
A two-way traffic
Communication is a social
process
A Dynamic process
A Continuous process

Communication

involved
interaction and transaction
Needs proper
understanding
Leads achievement of the
organizational objectives
Dispels misunderstandings
It is the lifeblood of the
business.
Has Four skills
Reading, writing, speaking
and listening

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

The Communication Situation

Memorandum
Notice
Telegram
Telex
Circular
Minutes
Letters
Emails
Telephone/Mobile/Cellular

phone Calls

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Importance of Business
Communication
The

importance of communication to an organization

is critical to the-success of any organization and has
a very significant impact on the ultimate
effectiveness of the whole organization.
Business Communication is a means by which
behavior is modified, change is effected, information
is made productive and goals are achieved.
Business communication can be internal when it is
directed to persons within the organization such as
superiors, co-workers or subordinates. Business
communication can be external when directed to
customers, suppliers, government, public, etc.
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Importance of Business
Communication

Internal Communication

Rapid

technological
advancements
deeply affect not
only the methods
of work but also the
composition of
groups. In such a
situation, proper
communication
between superiors
and subordinates
becomes very
necessary.

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

Importance of Business
Communication
INTERNAL COMMUNICATION
Effective internal communication works towards
establishing and disseminating of the goals of an
enterprise, evolving plans for their achievement,
organizing human and other resources in an efficient way.
It helps in selecting, developing and appraising members
of the organization, in motivating and encouraging people
to put in their best, and in controlling their performance.
Growth in the size and multiple locations of organizations
require keeping in touch with employees spread over
different states of a country or over different countries.
Sending directions and getting feedback from them would
be possible only through effective communication.
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Importance of Business
Communication
EXTERNAL COMMUNICATION
External communication relates an
organization to the environment outside. No
enterprise can thrive in a vacuum. It has to
be aware of the needs of the customers, the
availability of suppliers, regulations of the
government and the concerns of a
community.
Only through effective communication can an
organization become an open system
interacting with its environment.
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Scope of Business Communication

The

normal functioning
area of this subject.
Since communication is
essential in every
sphere of human life, its
scope is wide and
pervasive.
No human being or any
business concern can
survive without
communicating. In the
following slides a brief
discussion on scope of
communication is
discussed:

Scope
Personal
Social
The
Industrial
Management
Business
International
Religion
State
Life
of Life
Business
Relations
Affairs
Affairs
Communication

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Scope of Business Communication

Communication

in business: Today, we cannot think of business

without communication. Communication is the lifeblood of business as
it provides necessary information in formulating business plans and
policies. It also ensures effective performance of business activities like
production, distribution, finance, warehousing etc. Thus; ultimate
success of the business depends onsuccessful communication.
Communication in management: Management is the means of
achieving organizational goals. Efficiency and effectiveness of
management depend on effective communication with the various
internal and external parties. Every function of management depends
on communication. In fact, without information; plans cannot be
formulated, activities cannot be organized, directives cannot be issued
and control cannot be ensured.
Communication in religion: Communication is also present in
preaching and circulating various religious doctrines. Religious thinkers
perform the duty of preaching through tested skills of communication.
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Scope of Business Communication

Communication

in personal life: Communication is

closely related with every sphere of human life. From
dawn to dusk, a person communicates with others. This
reveals that communication is the part and parcel of
human life.
Communication in social life: Human civilization lives
in an integrated society. In social life, people need to
develop social bondage. Communication helps us in
creating and strengthening this social bondage.
Communication in the state affairs: Communication
also pervades all areas of state affairs. Without it, state
neither can administer its various wings nor can maintain
relationships with the other part of the world. Due to
revolutionary change in communication technologies, the
whole world has turned into a global village.
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Scope of Business Communication

Communication in industrial relations: communication is

essential in labor management relationship in the industry or in an
organization. Congenial industrial relation is a precondition
forbusiness success.On the other hand, free and fair
communication is a pre-requisite for creating good industrial
relation. Free flow of information lessens doubt, confusion and
controversies between workers and management. As a result,
harmonious relationship develops in the organization.

Communication in international affairs: In this age of

globalization, communication is not merely confined within the
national boundary. Countries are exchanging their cultural,
economical, social, political, educational and technological affairs
with each other continuously. In order to facilitate cooperation and
communication among countries, various regional and international
bodies namely the United Nations, World Bank, NAFTA, SAFTA,
ASEAN, SAARC, EU etc. have been formed. Through these bodies,
counties communicate various bilateral and multilateral issues
among them.

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Principles of Business Communication

Using

Tone to Build Goodwill

Be respectful not demanding

Be modest not arrogant
Be polite not sarcastic
Be positive and tactful, not negative and
condensing

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Principles of Business Communication

Managing

Your Mail/E-mail Content

Reducing Overload/Cutting down Unnecessary
Information
Instant Messaging Privacy and Security
Restrict contact lists on professional IM accounts to
business associates to avoid inadvertently sending
a personal message to an associate.
Be alert as of possible virus infections and security
risks with messages, attachments, and contact
lists.
Save significant IM exchanges (or logs) for your
future reference if the software does not do so
automatically.
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Functions of Business Communication

Information

refers to the role of

communication in facilitating decision making
and problem solving. Control: In the
organizational context,
Control refers to the power to influence peoples
behavior.
Motivation refers to the fostering of motivational
spirit among the employees.
Emotional Expression relates to the function of
communication in expressing or letting out the
feelings and emotions of employees under various
circumstances.

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Barriers of Business
Communication
If

the senders message does not reach

the receiver as it is meant to, then there
must be some barrier or hindrance. What
can it be? And how to avoid such
barriers?
Good organizers of communication need
to anticipate the barriers and remove
them. The barriers range from a poor
microphone to an emotional attitude that
rejects the message before it is received.
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Barriers of Business
Communication

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Barriers of Business
Communication
For convenience of analysis, we may
classify the barriers into five types:

Mechanical barriers
Physical barriers
Psychological barriers
Semantic and language barriers
Status barriers

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Barriers of Business
Communication

1. Mechanical Barriers/Faulty Mechanism

2. Physical Barriers

Sometimes

communication may not reach properly if

the mechanism that carries it breaks down.
If the computer typing has been done in
Bijoy Bangla Font, and while taking the
printout the computer is in the Roman
mode, not a single letter would be
understood.
Similarly, if the mirror image of a letter is
sent by some mechanical fault, it will be
hard to decipher.
Other problems can be:
weak microphone or poor sound system at the
meeting place
Defective telephone lines
Electricity/computer breakdown
Poor printing /paper quality
Atmospherics on radio or TV, especially in a
cloudy weather

background
noise, whether in a face-toface meeting or at either
end of the telephone,
reduces the audibility of the
spoken word.
If the listener is too far from
the speaker, s/he may not
be able to hear him, in which
case distance is the barrier.
The time taken for the
message to reach its
destination can become a
barrier, e.g. a telegram
delivered too late

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Barriers of Business
3. Psychological barriers:
Communication
A person of weak hearing or eyesight cannot always receive the
communication in full.

The age of the listener puts its own limitations on his ability to
receive messages. One may be too young or too old to understand
certain things.
A persons educational level governs his understanding. Some
background knowledge is required to understand certain messages.
A wandering mind cannot fully gather the inputs given to it. While
roving is a natural tendency of the mind and the attention span of a
listener is limited, there may be other causes of inattention too.
These may be visual or audio distractions gaudy pictures or songs
in the neighborhood.
Ideological loyalties may form a barrier to communication. One may
have a political party membership, a philosophical principle (like
hedonism, i.e. devotion to sensory enjoyment), and a religious
affiliation that has already bound the way one thinks. Such a person
may not be receptive to the ideas counter to his ideology.
Loyalty to a brand or an organization is also a barrier. One who is
loyal to a certain brand may not be receptive to a rival products add.
One may not be receptive to the praises of an organization or a
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University
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team other than ones countries, etc.

Barriers of Business
3.
Psychological barriers (continued):
Communication

Emotional states of a person can act as barriers. If someone is in a fit

of anger, s/he may not listen to reason. There is a spillover effect
the emotion generated by one transaction spilling over into an
unrelated transaction.
Ones prejudices (a judgment formed without proper information) act
as a hindrance to reason. One may have a racial or a caste prejudice
and so on. This is the opposite of an open mind. A liberal education is
necessary to remove such irrational prejudices.
Personality limitations, too, put a barrier. These are similar to
ideological barriers, as some personalities are naturally attracted to
certain ideologies.
Ones aspirations, viewpoints, analyses make one open or closed to
certain messages.
Fixed images about other people stand as barriers to see them in a
new role. A comedian coming in as a hero of a film may not be
acceptable to an audience which sees him typed in comedy roles.
Poor retention power is a barrier. If one fails to take timely notes
when instructions are given, hoping to remember them all, often
leads to forgetting part of the message.

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Barriers of Business
4. Semantic and language
Communication
barriers:

Semantics is the study of how

words convey meanings. What
happens if the speaker/writer
means one thing and the
listener/reader takes it in another
meaning?
One has to ask, is the word
conveyed in its proper context?
Words are indeed so tricky to use
that one can hardly ever convey
the same thing to all receivers in
given words.
Yet in business life, dealing with
matter-of-fact situations,
semantic barriers arise from the
inability to read the receivers
mind. If the sender knows the
receivers level of understanding,
fine.

Semantic barriers arise when:

The

senders experience with words

differs from the receivers.

Words

from one environment may not

fit in into another environment.

An

abstract word is used (in order to

be more general and safer) when a
concrete word is required. One may
want to say that some young men may
be impatient, but one might say Youth
is impatient.

Complex

phrases and long

constructions are used.

Idioms

are meant to be understood in

the idiomatic sense but are taken in
the literal sense.
e.g., tick your ts and cross your fs.
(t=true and f=false)

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Barriers of Business
Communication
4. Semantic and
Advertisement:
Bad Dog for Sell

language
barriers
(Continued):
An

advertiser offered
to sell a big, bad
dog. While the word
bad is meant to
convey its attacking
power to guard a
house, some readers
may take it
otherwise. The
context changes the
meaning of the
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladeshword.
Open University
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Barriers of Business
Communication
5. Mechanical Barriers
A

type of psychological barrier.

The higher or lower social status of a party disables the other from expressing ones
meaning fully.
E.g. A modest farmer may feel nervous in expressing his problems to a high-ranking official or
politician.
Status

symbols (e.g. luxury, power, property) may halt communication.

Cultural barriers are a special case of collective psychological barriers. A culture
brings its own habits, modes of dressing, greeting, eating, food preferences etc.
Most people have an element of xenophobia (fear or aversion of foreigners).
The Time Magazine once commented: American businessmen need to allow for
differences between American culture and Oriental culture. Only then would they be
able to do business with eastern countries.
This advice can be universalized. Media power which the English speaking countries
enjoy tends to give them a false sense of universal acceptability of their culture. In
Bangladeshi business, it is a general rule that Bangla words and culture are freely
used. Exposed to native speakers of English, Bangladeshi businessmen are often at
a loss.
Resistance to the written word exists as a barrier. The written word demands a
commitment. People prefer to listen (if possible in their regional language) and act.
Letters remain unreplied while personal visits or telephone calls server the purpose.
Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Process of Business
Communication

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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Process of Business
Communication

Ms. Adiba Anis, Lecturer (Marketing), School of Business, Bangladesh Open University

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