BUSINESS COMMUNICATI ON

Introduction
The term communication is derived from the Latin word COMMUNIS which means COMMON. Thus communication stands for sharing of ideas in common.`

 Communication is an exchange of facts, ideas, opinions or emotions by two or more person.

-W.H. Newman & C.F. Summer

Definitions

Communication is the process of passing information and understanding from one person to another.
- Keith Davis

Communication is the transmission and interchange of facts, ideas, feelings, or course of action.
Leland Brown

Communication is the sum of all the things one person does when he wants to create

Features
Two way process. Information sharing and understanding Verbal and Non-verbal Circular flow Goal oriented Continuous process Pervasive activity

Large size of organization Global business Technological advancement Need for information Need for better human relations Need for better public relations

Need of Communication

Merits And Demerits Of Upward Communication Merits

Feedback Creative ideas Better relations Overcome resistance to change Increases motivation.

Demerits
Fear & apprehension Filtration Greater possibility of distortion

Horizontal communication Communication people on the between departments or the same level in the managerial hierarchy of any organization. Objectives:
To To To To To coordinate resolve conflicts solve problems exchange information promote social relations

Modes And Merits Of Horizontal Communication Modes:

Face-to-face Discussion Telephonic Talks Periodical Meetings

Merits:
It speeds up the flows of work in the organization. It facilitates problem solving It helps in reviewing activities It helps in developing mutual trust and confidence

It follows no set lines nor any definite rules, but spreads, like the grapevine.

Grapevine Communication

Importance:
Emotional relief Harmony & cohesiveness organization A fast channel Supplement to other channel Provides feedback Demerits: Distortion Incomplete information in the

Consensus
Consensus is the process of arriving at agreement through consultation. Merits: Consensus decision are easy to accept Promotes harmony, checks conflicts and splits. Demerits: Dissent is often stifled in the name of consensus May degenerate into process of mutual accommodation May project a false image of management

Barriers to communication
Wrong choice of medium Physical barriers Semantic barrier Different comprehension of reality Socio-psychological barrier.

1. Wrong choice of medium: Each communication must be transmitted through an appropriate medium. An unsuitable medium is one of the biggest barrier to communication.

Physical Barriers Noise Time and Distance

Semantic barrier

Interpretation Of Words Bypassed Instructions Denotations And Connotations

Different Comprehension of Reality

Abstracting Slanting Inferring

Socio-Psychological Barrier
Attitudes & Opinions Emotions Closed Mind Status Consciousness The Source Of Communication Inattentiveness Faulty Transmission Poor Retention Unsolicited Communication

Unit II

NON-VERBAL COMMUNICATION

Listening Skills
Listening is a positive act, requiring will power. It is not a simple passive exposure to sound -Keith Davis Listening involves paying close attention to the sounds that come in combination Listening involves analyzing speech sounds, organizing them in recognizable patterns, interpreting the patters & then understanding the message by inferring the meaning. Listening Process

Awareness

Reception

Decoding

Responding

Remembering

Comprehending

TYPES OF LISTENING
Active Or Attentive Listening: in this case the listener makes a conscious effort to listen attentively, decode the message & absorb it through a participative process. Attentive listening is said to be effective listening. Passive Or Pretending Listening: in this no conscious effort is made to receive the message. Quite often the listening process stops at hearing it also means pretending through facial expression that message is listened. But it is not listened or heard. Selective Listening: in this listening is done partially or selectively i.e. selecting the desired part & ignoring the undesired part.

Barriers To Listening
Distraction of mind Lack of motivation Wandering mind Emotional state Noise Poor-perception Selective listening Listening only words Lack of interest Closed minds Transmission failure

 It helps to make better policies It helps to know the organization Listening mollifies complaining employees listening is important for success of open door policy Listening helps to spot sensitive areas Helps to obtain information Helps to solve problems To share experience

Importance Of Good Listening

Essentials of Good Listening

Stop talking Make eye contact Put the speaker at ease Remove distraction Upright postures Be patient Hold your temper Avoid arguments and criticism Ask questions and elicit more Dont over talk Empathize with the speaker Stop talking again

Communication skills
Communication skills is the set of skills that enables a person to convey information so that it is received and understood. It Includes: What to communicate What is the objective of communication How to communicate Whom to address When to communicate How often to communicate How to get feedback How to evaluate communication

Interpersonal Communication
Definition
It is the process of transmitting, exchanging or sharing of goal-oriented information between two or more sources or persons, which lays emphasis on transfer of message from one person to another.

Basic elements
The process involves four basic elements. Sender; person who sends information. Receiver; person who receives the information sent. Message; content of information sent by sender. Feedback; response from receiver.

 Interpersonal communication is the basis of most interaction in the business organization. Persons in such organizations interact with the others within their own groups or departments, across groups or departments, and across various levels- top, middle and lower levels of management. The smooth and streamlined functioning and operations of a business organization largely depend on the effectiveness and efficiency of its interpersonal communications. Such communication help in successful planning, organizing, staffing, motivating, decision making, leading coordinating, supervising and controlling in the organization in order to accomplish desired organizational goals.

Role of Interpersonal Communication

Interpersonal Skills
Interpersonal skills are the abilities which enable a person to understand others and to make others understand him, it is essential for the individuals to learn and sharpen their interpersonal skills. These are also called people skills or human skills.

Types of Interpersonal skills Speaking Skills

Listening Skills Persuasive Skills Conflict Handling Skills

III UNIT

BUSINESS LETTERS

Business Letters
Business letters is a important form of written communication.

Essential Characteristics Of A Good Business Letters

Accuracy, completeness and clarity Promptness Knowledge of the subject Appropriateness Correctness Courtesy Tact Persuasion or convincing Conciseness Salesmanship Appearance Originality Simplicity

Parts Of Business Letters

Letter head Make an announcement Reference Line Date Line Inside Address Attention Line Salutation Subject Line Message Closing Line Post Script

Kinds of Business Letters

A. 1. Enquiries and replies 2. Orders and their execution 3. Complaints and adjustments 4. Credit and status enquiries B. 1. Circular letters 2. Sales Letters C. 1. Bank Correspondence 2. Insurance Correspondence 3. Import- export Correspondence 4. Agency correspondence D. 1. Application Letters 2. Interview letters, references, testimonials, letter of appointment, confirmation, promotion, retrenchment, resignation

E. 1. the correspondence of a company secretary 2. Correspondence & state and central government F 1. letters to the Press G. Others Official Letters Demi-official Internal letters or memos Form Letters

Tenders, Quotations And Orders Following specifications should be provided during framing of orders, tenders and quotations: Number Or Quantity Quality Or Specification Delivery Time Additional Unit Response Time Other Aspect

1. 2. 3. 4. 5. 6.

TENDERS
A tender is an offer or a proposition made for acceptance, such as an offer of a bid for a contract. A tender is something that is offered in return for a specific payments. They are invited by large organizations especially Government & its undertakings, for supply of items, constructions for buildings, roads etc maintenance activities & other such relatively high value works. Important points that needed to be covered in a tender are as follows: Name of the organization and address Tender Number & date Captions such as o Tender notice o Tender notifications o Notice inviting tenders o Sealed tenders invited Who can apply o Class I civil contractors o Established contractors having custom house agency license o Manufactures or their authorized Indian agents etc.

 o o o

Experience requirements With experience in completing similar work Satisfying the eligibility criteria mentioned below Who have supplied the tendered items successfully to other Government organizations etc Brief description of work or items/material to be supplied Contract period or delivery schedule Earnest money deposit Contract address or authority o For further details please contact/write to o Tender document can be obtained fro Date of issue of blank tender forms Cost of tender documents- mode of payment Last date for receipt of sealed tenders- time Time & date of tender opening Other relevant tender details such as (1) amount of tender, (2) average turnover (annual) for the last 3 years, (3) technical bids & commercial bids, (4) websites Authority issuing the tender notice

Quotations
Quotation is a specific offer for sale. It is made in response to an enquiry from a particular person or a business house. It Includes
Description Covering Quantity & Quality Rates And Discounts For Orders Etc Modes & Terms Of Payment Delivery Time Taxes, Duties & Charges Transportation & Delivery Samples & Approval Insurance, Breakage Allowed Etc Guarantee Period And After Sales Services Annual Maintenance Contract (AMC) Details

 Orders are placed by business organizations for purchase to be made by them. It may be for purchase of commodity or rendering of services, installation & maintenance. It Includes:
Thank the seller for his quotation Give specifications of the goods Exact trade name catalogue number, size, style, design, color etc. Price and discount Quantity desired of each items Alternative goods, if acceptable. Give shipment or forwarding direction, goods to be sent by parcel, post; goods or passenger train, truck or ship. Give special instructions if any for packaging, marking, insurance etc. State the manner of payment

Orders

 Cont.
Cash to be paid on delivery (C.O.D.) Invoice to be sent by post or through a bank Bill to be drawn by seller Close with what you want to emphasize a) Quality b) Prompt execution c) Discount d) Time factor

Sales Letters
Sales letter are intended to perform salespersons function of educating & persuading customers to buy specified. Functions Attracting attention Arousing attention Educating & convincing Stimulating desires Securing action by the customers It includes Begin your letter in a striking manner in order to arouse the readers curiosity & tempt him to read further. Give a vivid description/explanation of the product, services or proposition being offered. Make an appeal to the reader by telling him how the articles benefits him. Highlight the plus points: economy, durability, low cost, pride in possession, satisfactory performance etc.

Contd.

Convince the reader by giving the evidence profits testimonials, references to users experience. Induce the reader to act at once by offering different types of inducements or by forceful & convincing words. Close the letter by telling exactly what to do & how to do so that the action becomes easy.

Enquiry Letters
When a buyer wishes to get some information about the quantity, price, availability etc of goods to be purchased or about the terms of sale etc he writes a letter of enquiry to the seller. Enquiries can be solicited, unsolicited, for some favor or a routine enquiry. Solicited Enquiry: an enquiry made in response to sellers advertisement or publicity Unsolicited Enquiry: enquiry made at the buyers own initiative For Some Favor: an enquiry not about goods but some other information, may be about some special prize or some favorable terms Routine Enquiry: an enquiry made by an old buyer in the usual course of business.

A letter of enquiry should be Straight forward, compact and courteous Positive & confident in tone Brief & to the point yet clear, compact and correct.

Specifications
State the purpose of your letter whether you need products, services or information Request for price list or catalogue etc Ask for samples or demonstrations if needed Tell the seller how you got his name whether someone personally recommended him or you learnt about him through an advertisement. State the details of your business and what are you interested in Ask for terms relating to discount, credit, mode of delivery, packing etc Give the quantity you need in order to enable the supplier to quote the possible price If you are asking for consession give reasons- large & continous orders, your ability to promote more sales in your area etc.

Complaints
Sources of mistakes giving rise to complaints: Incomplete or defective order Wrong directions to the dispatch section Mistakes by accounts section in preparing the invoice Dispatch section carelessly dispatches (1) goods of wrong quality, size, brand, pattern, color etc (2) defective pieces The article supplied may have some inherent manufacturing defect not detected at the time of inspection Defective packing that might lead to the damage of goods in transit Abnormal delay in sending the consignment etc Complaints Letters Specifications: Make a clear statement in clear, courteous & matter of fact style The claim should be specific, clearly identify whether the falut lay in the goods supplied or services rendered. A reference to the order or quotations or date & time of arrival of goods etc is also necessary. Explain the nature & extent of inconvenience or damage caused in terms of money, sales, service or goodwill

 State the steps necessary to rectify the situation Appeal to the suppliers sense of fair-play & pride. Make a courteous but firm request that the matter should be attended to promptly. Be definite about what you are asking for.

Internal communication
Letters from one department to another department, branch or office. Letters from employees to the manager and viceversa, within a branch, office or department. Letters from controlling branch to controlling office vice-versa Letters from controlling office to another controlling/administrative unit Letters from one branch to another Letters from one functional department to another in an administrative office The flow if correspondence within the organization takes various forms: letters, circulars, memos, interdepartmental notes, information reports, periodical reports and so on.

Advantages
It had the following advantage:

When a letter is sent, a record of the message is created. The reader gets an opportunity to read at a convenient time. It enables the letter writer to bring in clarity and intensity to relate the message specifically to the addressee Availability of faster modes of transmission like email, fax etc has shortened the time involved. if the message is complex the letter can append annexure, covering charts, tables, diagrams etc.

Memos

Memorandum is more popularly known as memo. The literal meaning of the word memorandum is a note to assist memory. It is used for internal communication between executives & sub-ordinates. It is never sent outside the organization. It can be used: To issue instruction to staff To communicate policy changes to the staff To give/seek suggestions To request help or information To confirm a decision arrived at on the telephone To intimate granting with holding permission to do something To seek explanation on some matter of conduct etc. The Memo Format Name of the person sending the memo Name of the recipient & the designation or department of both the persons References Writers signature

Eg Letter Head Date.

No.. To Sub:

Copies to Signature Advantages of memos Simplest form of communication It is convenient It is inexpensive It can be used for future reference

Circulars
Office circulars are meant to convey the same information to a large number of people. Such information is usually of general nature and not confidential. It can be used for following purpose: 1. To emphasize certain aspects of office conduct. 2. To intimate changes in the working hours of the office library, canteen etc. 3. To invite applications from employees for production tests etc. 4. To inform the employees, changes in the rules. The subject of the circulars must be mentioned at the top. Circular No. . date: Subject:

Letters to Staff
Letters to staff in business organization emanate at various levels within a branch, office or department, from the divisional office to the controlling office, from the corporate office or a specific unit. Staff in business organization are often categorized into various hierarchical level; subordinate, clerical, supervisory, managerial and executive. All the employee are important stakeholders of any organization every effort should be made to take them into confidence and keep them into confidence and keep then posted on everything in the company that affects their welfare. Letters to staff within the organization have their own sensitivity especially when they are from personnel, inspection and other such department the matter becomes more important when the issue relates to disciplinary matters calling for explanations depriving benefits, pointing out deficiencies & so on. Every word assumes a meaning & hence with such letters, the letter writer should ensure that while the message is

Contd . 1. From Personnel Administration Transfer and posting Leave sanction Disciplinary matters seeking explanations Salary Interviews, tests and promotion related matters Performance appraisal, appreciation of performance, drawing attention to weakness etc Staff deployments, work distribution etc. Sanction and refusals. 2. From Marketing New products and services Customer service initiatives and concerns Competition market related developments Talking points on schemes and services Employee contests, suggestion, schemes Product promotion Additions to customer base Customer complaints & redressal

3.

Cont d. From Accounts Loan and related matters Tax related issues Recovery of amount Provident funds, pension etc Payments etc

4. From Inspection Irregularities and deviations Fraud and unethical practices Omissions

Office Notes
Office notes are used for horizontal communication. They are exchanged between departments or between offices of almost equal rank asking for suggestions or seeking or giving information about some matter concerning their respective departments. Company Name Date Ref No From.. To.. Subject..

Name Designation Copy

Representations and Suggestions

Representation is an act of explaining to an authority certain problems or issues or the consequences of a certain rule or law or act. Representation can also be protest against someone or something. Problems can be: Pay scales, retierment benefit, other policies related to employment Working conditions Tax laws accounting procedures licensing and credit policies of the government Civic problems Prejudiced or partial conduct of a superior Unfair or a little too harsh disciplinary action Structure: The representation should be preferably be drafted on the letter head Date The inside address has got to be clearly written & it must have a official designation of the addressee. It must be addressed to only that person who has the authority to redress the grievance. The best form of salutation is Sir/ Madam The subject line is invariably inserted before the main body of the representation.

Contd

The body of representation should now be written in a appealing, convincing and effective tone & style Whenever necessary, the writer may also request for a personal interview with the addressee. This would give him an opportunity to elaborate the case more effectively Original representations not responded to, will have to be followed up repeated representations.

Suggestions
Suggestion on the other hand refers to a theory or plan proposed for acceptance or rejection Suggestions can be oral or written Suggestion can be made by the staff members, managers, customers or any one interacting within the organization Suggestion may be formal or in formal The receiver may accept the suggestion or reject it depending upon its merit and other relevant considerations.

Cont d. Some of the common areas in which suggestion are made in business organization are as follows: Design of new schemes or services Changes in systems and procedures Work simplification Measures aimed at cost reduction Changes in stationary, forms etc. Changes in personnel policies Naming of new product etc.

Motivational Communication
Morale in an organization at its best when individual goal converge towards organizational goal. To be effective motivational communication it should meet following requisites: The communication should be addressed by the CEO or any senior officer. Due importance should be given in drafting, designing and distributing such communication. The words chosen should carry the required weight & force. The language of communication, the personal touch, the quality of paper and the physical appearance etc needs attention. It should carry positive & authentic facts & figures. Motivational communication should exhibit a high degree of transparency & sincerity To the extent possible the better should be addressed with name case of large number of employees such communication may be addressed as Dear colleagues & sent to branch head or unit head. In order to make motivational communication effective the manager should know the needs of the employees in order to satisfy them.

Letters From Top Management

Large organization in any business are largely hierarchical structure. These are different hierarchical layers with in the organizations. People in top management are in-charge of steering the towards its goals & objectives as such will have to communicate with the rest of the staff on an ongoing bases. Letters from top management covers areas such as goals objectives, achievements, failures and others They refers to plans & prospects, strength & weakness, opportunities & threat. They may refer to the vision of the organization, the mission to be pursued at the future They are often aimed at sharing of information & endeavor to enlist commitment, participation & involvement They may include launching of a new product, take over, of another unit crossing of milestone, mid term review, with focus on non achievement of specific goals etc. Some specific occasions when such letters would be appropriate are as follows: Winning of awards & prizes ISO certification & other such quality gains

Contd.

Rankings & ratings, positive and negative developments Successful motivation Pursuit of excellence Performance highlights Threats of competition Need for strengthening the image

Reminders and Follow-up Reminders and follow-up letters consume considerable time in banks & other business organizations Considerable time is wasted in waiting for reminders Reminders and follow-up letters are by very nature, avoidable & wasteful Reminders and follow-up beyond & reasonable limit should be discouraged Organizations must consciously strive towards a responsive work culture.

Employee Newsletters
Employee newsletters constitute a beneficial medium of communication through which information & development of relevance are shared with the employees on a periodic basis. Very large organization where thousands of people are employed, regularly bring out newsletters which serve a very useful purpose. There may be an economic newsletter, personnel newsletter, training newsletter, & so on. Employee newsletter constitute another useful method of internal communication through which events are shared with concerned employees. Depending on the skills of the people associated with bringing out such newsletters the design format & presentation are made only informative & educative but also appealing.

Unit IV INTERACTIVE COMMUNICATION

MEETINGS
A meeting is a get-together of a group of persons to discuss ways & means to deal with a specific time bound task assigned Meetings are the most commonly used form of platform for discussion in modern organization. They differ in size, structure, organization, purpose & procedure.

Why Meetings Are Held To convey information to the member To gather information To exchange ideas & experiences among the members To brief members on plans, working & performance & to instruct members To discuss problems & issues of common interest To persuade members to accept changes To resolve conflicts & confusion To take decision of matters affecting the group or the organization To generate a positive attitude among the participants

Importance Of Meetings
The purpose of a meeting may be to solve problems, to get feedback, to exchange information to teach or train recruits, to consider proposals, to arrive at a consensus etc Meetings provides a channel or upward, downward & lateral communication, & facilitate exchange of ideas, suggestion & points of views. It means of coordinating the solutions to problems faced by the organization Meetings are held by those who have common work, interests or goals A meeting is a purpose of conducting business on matters which are of common interest to all of them.

I. Procedure Of Convening A Meeting The following are the procedure for convening a meeting: Proper Notice: 1. A proper notice of the meeting should be given to every member entitled to attend the meeting 2. The notice should be in writing & must be given before the specified number of days from the date the meeting. The notice must specify the date, time & place of the meeting.

Letter Head Date.. Notice Agenda Authority II. AGENDA Agenda means things to be done or business to be transacted at a meeting. A copy of the notice must be sent to the members along with the agenda of the meeting. All items included in the agenda to be serially arranged. The agenda is prepared by the secretary in consultation with the chairman. It should be clear explicit, should be in summary form, should include all the items of meetings.

III. Arrangement For A Meeting

The time & venue decided for the meeting should be conveyed to all & decided before the dispatch of notice The venue for the meeting is decided depending on the number of participants. Be All the equipments should be checked in advance Lighting etc should be also be checked.

CONFERENCES
The word conference has been derived from confer that means to consult together, compare opinions, carry on a discussion by bringing together . So a conference is essentially a gathering of people of a particular area of interest or related areas of interest to exchange information & views. The silent features of a conference are as under: A conference may be held to exchange views on some problems being faced by the organization & some other issues related to it, & it may even suggest a solution Conferences may sometimes be held to give training to new employees. The employees may be exposed to a conference where necessary information about organization is imparted to them The type of preparations & attentions for details in relation to the conference are by & large same as those of meetings. They also help to promote public relation and enhance the prestige of the organization Conferences disseminate information, stimulate creative flow of ideas, pool of knowledge & experience.

Contd.

For organizing a conference an organizing committee has to be constituted the committee would spell out in advance the subject of the conference , the date, the venue, the invitations, the specialist, the resource persons, the expenditure, the material to be circulated the arrangements for boarding guest are to be made.

PRESENTATION SKILLS
Presentation skills have to be carefully cultivated. A good presentation requires a good mix of subject knowledge, confidence, communicative ability & interpersonal skills. It also calls for advanced planning & preparedness. Presentations are made in classrooms, seminars, conferences & to groups of persons on certain scheduled topics. The objective here is to present all relevant details to the interested target audience on a specific topic or audience on a specific topics. During any presentation on various products & services, demonstrations covering the functioning & operation of new products are introduced The person making presentation has to develop various types of interactive skills like: One should be a good communicator & should learn to express oneself self clearly and forcefully One should not be afraid of facing an audience & should be well-versed in using different type of audio-video aids. One should synchronize verbal delivery & narration with the visual message The audio-visual aids forming a part of the presentation kit would include slides or transparencies, handouts, screen projectors, pointers etc.

Contd . Apart from the verbal message, the attire & confidence level of the speaker & body language during the presentation assume relevance in creating the right impact. The audio-visual equipment should be checked in terms of (a) clarity of pictures & charts,(b) color appeal, (c) readability of words & figures from any corner of hall, (d) adequacy of time, (e) use of pointer, (f) audibility of spoken words, (g) synchronization of verbal & visual message. For making presentation effective following points should be kept in mind: Prepare for a presentation Know your audience a tailor the comment to suit them Update facts and figures & identify those that need emphasis Rehearse & practice till you are confident Anticipate questions & be in readiness to respond to probable or frequently asked questions Establish rapport and win over your audience Make the presentation participative involve the audience Be at the venue in advance & familiarize yourself with lighting, seating etc.

 Avoid being grim, sport a smile Confess what you dont know, be humble Conclude recap the main points.

ORAL COMMUNICATION
Oral communication is a method of communicating with use of words. Formal oral communication includes interpersonal communication, both face to face by telephone, interviews, meetings, negotiations, seminars, conferences, speeches, lectures, presentation etc. The essentials of effective oral communication are as follows: Speakers Personality Know Your Audience Speech Preparation Art Of Speaking: Invention, Arrangement, Style, Memory & Delivery Voice Modulation Pauses & Punches Listeners Participation Summarizing & Conclusion Great Delivery Speaking Without Hurting

TELEPHONIC CONVERSATION
On telephone people exchange message there is no visual contact. There are two crucial aspect of telephonic conversation listening and speaking. Developing Telephonic Skills Preparation for call: the receiver should have appropriate knowledge of the organization. Controlling the calls: (1) avoid waiting, holding the caller. (2) during a telephonic conversation we should be very particular about jotting down all the information about the caller. Follow-up: it is in regard with the promises made to the caller. Skills For Telephonic Conversation Do not allow the telephone to ring, lift the receiver before 3 or 4 ring Put your company first announce the name & greet the caller Dont shout, be polite Use your natural voice wait till you hear fully from the other end In all types of call never waste time on personal talks

 If the person called is not available make a note of the caller's name, telephone no. & message. End the conversation with a thank or a good day.