BUSINESS COMMUNICATION

Part 1:
Foundations of Business
Communication
 Module Overview
This lecture will touch on:
• The Communication Process
• Business Communication: The Basics
 Module Introduction
• Business depends on communication
• Failure / Success in communication =
Failure / Success in business
• Case study: NASA Mars Climate Orbiter
 Communication: The Basics
• The science and art to encode, send,
receive and decode information using
specific channels
• Meaningful exchanges of information
through messages
• Very important part in any organization, as
people communicate to ensure the
organization functions efficiently
 Communication: The Basics
• Divided into two:
Verbal Communication Non-Verbal Communication
Uses words Does not use words

Face-to-face, phone, sms, meetings, Pictures, logos, body language (smiles,

presentation and e-mails gestures)
Examples
Examples
Examples
Examples
Examples
Examples
Examples
Examples
 Communication: The Basics
• For any form of communication, there are
7 components present:
 Sender
 Message
 Receiver
 Feedback
 Channel
 Context or Setting
 Noise or Interference
Communication: The Basics
• To put it simply:
 The Reality
• We communicate everyday, both verbally
or non verbally
• In the working environment, it is still the
same: read task requirements, listen to
instructions, ask questions, solve problems
• You WILL inevitably communicate in both
verbal and non verbal when working
 Communication Abililty =
Promotability
• To rise in career, we must nurture and
practice good communication skills, both
verbal and non-verbal
• Able to talk to a variety of audiences
effectively and gets your message across
• Having specific skills are good but in the
end, communication skills are the final
factors for promotion and career
development
 Business Communication
• Helps organizations and the people inside it
to reach their goals
• Business communication is much more
complex than “normal, everyday”
communication as more information is goes
through more people in a certain amount of
time
• In business, communications are split into
internal and external
 Internal Communication
• Happens WITHIN the organization
• Information passes through two ways:
Formal Informal
Communication Communication
Channels Channels
 Formal Communication
Channels
• The official structure / organization chart
highlights the formal communication
network
• Show lines of authority and how everyone
in the organization are linked to one
another
• The information goes either upward,
downward or horizontally
Formal Communication
Channels
 Formal Communication
Channels
• However, managers that rely heavily on
this channel will risk encountering
distortion / misunderstanding
 Five Minute Break
• To help your brain recharge….
 Informal Communication
Channels
• People talk to one another in the office,
regardless of their position in the
organization chart
• Eg: joke around, discuss family matters,
movies, sports and other people in the
company
• EVERY organization has an informal
communication network (a.k.a. grapevine)
Informal Communication
Channels

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 Informal Communication
Channels
• Around 80% of information along the
grapevine pertains to business, with 75%-
90% of it is accurate
• Some managers are wary of the
grapevines because it may threaten their
power to control information flow
• But attempts to stop it will only make the
grapevines much more active
 External Communication
• Carries information IN and OUT of the
organization
• Usually with customers, vendors,
investors, journalists and government
• Some are fully orchestrated (planned)
whilst most are informal
External Communication
 Organization Documents
• People in organizations produce a large
variety of written documents
• Eg: Proposals, progress reports, meeting
minutes, memos and instructions
• Their basic functions are:
To Inform
To Request or Persuade
To Build Goodwill
 Organization Documents
• Writing costs money & man hours
• A letter will need time to compose,
revised, scrutinized before being approved
(esp. with external letters)
• Therefore good business communication
skills are very crucial
 Organization Documents
• Poor writing skills costs one a combination
or all of these:
 Wasted time
 Wasted efforts
 Lost goodwill
Organization Documents

Criteria for Effective Messages

Clear
Complete
Correct
Saves the Reader’s Time
Builds Goodwill
 Organization Documents
• Benefits of improving writing skills and
correspondence:
 Saves time
 Make efforts more effective
 Able to communicate your points more
clearly
 Build goodwill
 Conclusion
• Communication is unavoidable
• Divided into verbal and non verbal forms
• Communication helps organizations and
the people inside it to reach their goals
• Business communication is divided into
internal and external communication
 Conclusion
• Internal communication is divided into
formal and informal information channels
• Organization documents are important to
organizations
• Continuous effort must be given to ensure
the documentation are right the 1st time,
every time
• To be continued…