UNIT 1 - BUSINESS COMMUNICATION

What is communication?

The word communication has been derived from the Latin word communis, which means to share or to participate.

Communication stands for sharing or transmission of information, an idea, an opinion, an emotion, a fact or an attitude. It includes both, the act of communicating as well as the message to be communicated.

Communication involves LISTENING, UNDERSTANDING and RESPONDING.

Thus communication is the process of passing information and understanding from one person to another with three sides to it:

(i) Transmission of subject-matter or message

(ii) Involvement of two parties to complete the process of communication

(iii) The person to whom the message is transmitted understands it in the same sense in which the sender of message wants him to understand it

 What is Business Communication?

The term business communication is used for all messages that we send and receive for official purpose like running a business, managing an organization, conducting the formal affairs of a voluntary organization and so on. 

Business communication is marked by formality as against personal and social communication.

The success of any business to a large extent depends on efficient and effective communication.

It takes place among business entities, in market and market places, within organizations and between various group of employees, owners and employees, buyers and sellers, service providers and customers, sales persons and prospects and also between people within the organization and the press persons.

Business communication can be internal when it is directed to persons within the organisation such as superiors, co-workers or subordinates.

Business communication can be external when directed to customers, suppliers, government, public, etc.

Importance of Business Communication

In business, reputation and credibility need to be built up in order to get clients’ trust and confidence. Having a sense of professionalism will bring a lot to the business, especially in a long term relationship with employees and clients.

·       There is a need to make sure that every business deal is attended to promptly.

·       Business communication encompasses not only communicating with external contacts but also with employees within the organization.

·       This will aid the business in being well-organized and every matter whether it is a problem, an inquiry or a sales letter will be attended to properly and promptly.

The role or importance of business communication is discussed below:

ü  Exchanging information: Communication is mainly the exchange of information between two or more parties. Through communication, organizations exchange information with internal and external parties. Communication also brings dynamism in organizational activities and helps in attaining goals.

ü  Preparing plans and policies: Communication helps in preparing organizational plans and policies. Realistic plans and policies require adequate and relevant information. The managers collect required information from reliable sources through communication.

ü  Execution of plans and policies: For timely implementation of plans and policies, managers must disseminate those in the whole organization. In order to disseminate the plans and policies to the internal and external parties, managers rely on communication.

ü  Increasing employee’s efficiency: Communication also helps in increasing the efficiency of employees. With the help of communication, organizational objectives, plans, policies, rules, directives and other complex matters explain to the employees that broaden their knowledge and thus help them to be efficient. 

ü  Achieving goals: Effective communication helps the employees at all levels to be conscious and attentive. It ensures timely accomplishment of jobs and easy achievement of goals. 

ü  Solving problems: Through various communication channels, the managers can be informed of various routine and non-time problems of the organization and accordingly they take the necessary actions of steps to solve the problems. 

ü  Making decisions: Making timely decisions requires updated information. Through effective communication, managers can collect information from different corners and can make the right decisions. 

ü  Improving industrial relation: Industrial relation is the relation between workers and management in the workplace. Good industrial relation is always desired for business success. Communication plays a vital role in creating and maintaining good industrial relation. 

ü  Publicity of goods and services: In the modern age, business is becoming highly competitive. Almost very competing manufacturer produces products of common consumption. However, all of them cannot sell equally well. The organization that can communicate better, can also sell better. 

ü  Removing controversies: Effective communication allows smooth flow of information among various parties involved in the negotiation or transaction. As a result, conflicts, controversies and disagreements can be resolved easily. 

ü  Enhancing employee satisfaction: If there is free and fair flow of information in the organization, it will certainly bring mutual understanding between management and workers. Such understanding enhances the satisfaction of employees.

ü  Enhancing loyalty: Effective communication helps the managers to be aware of the performance of their subordinates. In such a situation, the subordinates try to show their good performance. Later on, if management praises their performance, it will enhance employees’ loyalty. 

Thus business communication:

ü  Binds people together.

ü  Improves the morale in an organisation.

ü  Helps in proper planning and co-ordination.

ü  Forms the basis for decision-making.

ü  Helps in the efficient running of an organisation.

ü  Helps in achieving increased productivity at lower costs.

ü  Builds up mutual trust and confidence. 

Purpose of Communication

1. For instruction: The instructive function unvarying and importantly deals with the

commanding nature. It is more or less of directive nature. Under this, the communicator transmits with necessary directives and guidance to the next level, so as to enable them to accomplish his particular tasks. In this, instructions basically flow from top to the lower level.

 2. For integration: It is consolidated function under which integration of activities is

endeavoured. The integration function of communication mainly involves to  bring about inter-relationship among the various functions of the business organization. It helps in the unification of different management functions.

 3. For information: The purposes or function of communication in an organization is to

inform the individual or group about the particular task or company policies and procedures etc. Top management informs policies to the lower level through the middle level. In turn, the lower level informs the top level the reaction through the middle level. Information can flow vertically, horizontally and diagonally across the organization. Becoming informed or inform others is the main purpose of communication.

 4. For evaluation: Examination of activities to form an idea or judgement of the worth of task is achieved through communication. Communication is a tool to appraise the individual or team, their contribution to the organization. Evaluating one’s own inputs or other’s outputs or some ideological scheme demands an adequate and effective communication process. 

5. For direction: Communication is necessary to issue directions by the top management or manager to the lower level. Employee can perform better when he is directed by his senior. Directing others may be communicated either orally or in writing. An order may be common order, request order or implied order.

6. For teaching: The importance of personal safety on the job has been greatly recognized. A complete communication process is required to teach and educate workers about personal safety on the jobs. This communication helps the workers to avert accidents, risk etc. and avoid cost, procedures etc.

7. For influencing: A complete communication process is necessary in influencing others or being influenced. The individual having potential to influence others can easily persuade others. It implies the provision of feedback which tells the effect of communication.

8. For image building: A business enterprise cannot isolate from the rest of the society. There is interrelationship and interdependence between the society and an enterprise operating in the society. Goodwill and confidence are necessarily created among the public. Through an effective external communication system, an enterprise has to inform the society about its goals, activities, progress and social responsibility.

9. For employees orientation: When a new employee enter into the organization at that time he or she will be unknown to the organization programs, policies, culture etc. Communication helps to make people acquainted with the co-employees, superior and with the policies, objectives, rules and regulations of the organization.

10. Other: Effective decision-making is possible when required and adequate information is supplied to the decision-maker. Effective communication helps the process of decision-making. In general, everyone in the organization has to provide with necessary information so as to enable to discharge tasks effectively and efficiently.

Hence we can summarise by saying that communication is meant:

v To inform

v To reassure

v To teach

v To deliver news, whether good or bad

v To understand

v To explain

v To persuade

v To transact

v To organize

v To control

v To co-ordinate

v To direct

Nature of Business Communication

1. Communication is related to human activity: Communication exchanges are actually directly linked with every human being’s lifetime. It is very necessary. Taking pleasure in restful lifetime, acquiring person-to-person interactions, creating a flourishing point out and so on. Aren’t probable without having communication exchanges.

2. Communication involves two or more parties: At least, two parties are involved in virtually any communication exchange process. This party exactly who communicates information is known as sender and the party exactly who is provided with the info is known as a device. Even so in some instances some sort of sender could send out a message for you to many receivers.

3.Communication could be one-way or maybe two-way process: Communication might take the design involving two-way or maybe one-way process. With two-way communication, the receiver sends his feedback to the sender after receiving the message. One-way communication means you move involves information receiving. In this particular means of communication receiver doesn’t present his or her reaction to your sender.

4. Success of communication depends on a proper understanding of the parties involved: Powerful communication comes about if your receiver feels your concept you might say your sender posts the idea. If the receiver doesn’t deliver his or her reaction to your sender, your sender is not going to fully grasp your receiver’s view. In this case, your communications are going to be inadequate. As a result, to make your communication prosperous the two senders and receiver got to know your side effects of different.

5. Conversation in organization flows in a variety of styles: With organization, information flows in a variety of recommendations, for example way upward direction, down way, horizontal way and many others.

Nature of Business Communication

• It is a process.
• It is inevitable.
• Meaning based.
• Communication could be intentional and unintentional.
• Communication is systematic.
• A two-way traffic.
• Communication is a social process.
• A dynamic process.
• Continuous process.
• Communication involves interaction and transaction.
• It is contextual.
• Needs proper understanding.
• Leads achievement of the organizational objective.
• Dispels misunderstanding.
• It shares thoughts and ideas, which produce response.
• It is the life blood of the business.

Business Communication Models

Depending on the product or service a company offers, it seeks a communication style that contributes to its process and, therefore, overall success. Business communication experts and leaders say that for success there should be frequent, open and thorough communication. However, variations in situations and goals mean there are numerous ways to handle communication.

Empowerment

Companies that thrive of innovation, creativity and expansion often subscribe to the empowerment model of communication. Empowerment means giving employees more autonomy and latitude to come up with ideas, own responsibility and take on tasks. The foundation of this employee-driven work approach is giving employees a voice by encouraging them to step forward with ideas for new products and processes. Empowerment managers engage employees in conversation, elicit input in decision-making and foster safe environments in which brainstorming and creative thinking are the norm. The empowerment model involves two-way and multi-way conversations.

Controlled

When precise work with significant controls are required, management typically keeps communication controlled and top-down. Work environments with significant security risks typically divide knowledge and duties to prevent enabling anyone from being able to steal or sabotage. Banks are an excellent example. Tellers know how to run specific transactions and very little else about the bank's larger policies and operations. Branch managers oversee teller cash handling and check to make sure there is no theft but have little latitude to change bank product or service policies. 

Until you reach the very top levels, employees and even mid-level managers have specific duties and scopes. The divisions make sure no one is in a position to mishandle or misappropriate large sums of money. Military and scientific research organizations often have similar approaches. People are told what upper management feels they need to know.

Business Communication Models

Direct Marketing

Representatives come to your door. Perhaps you only learn about their product through postcards or mailers. Companies which use direct marketing want to keep the communication between you and them -- no advertising middle-men. There are several reasons companies choose to employ direct marketing and direct sales for their communications model. 

One is to create an intimate relationship between company and customers. Another has to do with cost savings. You can reach more people with direct mail and email blasts than you can with broadcast advertising. Representatives usually only get paid commission -- so their labour is free until it's successful. Whatever the reasoning, it's highly successful for a number of large, well-known cosmetic and home-product companies.

Barriers to Communication

There are many reasons why communication may fail. In many communications, the message may not be received exactly the way the sender intended and hence it is important that the communicator seeks feedback to check that their message is clearly understood.

There exist many barriers to communication and these may occur at any stage in the communication process. Barriers may lead to your message becoming distorted and you therefore risk wasting both time and money by causing confusion and misunderstanding. Effective communication involves overcoming these barriers and conveying a clear and concise message.

Barriers  maybe classified into five types:
I. Mechanical barriers
II. Physical barriers
III. Psychological barriers
IV. Semantic and language barriers
V. Status barriers

 Mechanical barriers: Faulty mechanism:

A communication may not reach properly if the mechanism that carries it breaks down. To take an extreme case, if the computer typing has been done in devnagari, 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.
Some possible mechanical failures are:
(a) A weak microphone or poor sound spread (acoustics) of the meeting place
(b) Defective telephone lines
(c) Electricity/computer breakdown
(d) Poor printing quality or paper spread of ink, overlap of colours
(e) Atmospherics on radio or TV, especially in a cloudy weather

Physical barriers: noise, space, time:

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

Psychological barriers:

These are numerous and require greater effort to overcome:

• 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 person’s educational level governs his understanding. Some background knowledge is required to understand certain messages.
• Loyalty to a brand or an organisation is also a barrier. One who is loyal to a certain brand may not be receptive to a rival product’s add. One may not be receptive to the praises of an organisation other than one’s own, a team other than one’s countries, and so on.
• Emotional states of a person can act as barriers. If someone is in a fit of anger, he /she may not listen to reason. They may also find it difficult to communicate soberly with a person who has not contributed to his anger. There is a spillover effect – the emotion generated by one transaction spilling over into an unrelated transaction.
• One’s prejudices act as a hindrance to reason. A prejudice is a judgment formed without proper information. One may have a racial prejudice, a caste prejudice and so on. This is the opposite of an open mind. A liberal education is meant to remove irrational notions which stay on as prejudices.
• Personality limitations, too, put a barrier. These are similar to ideological barriers, as some personalities are naturally attracted to certain ideologies. However, personality variations are far too numerous.
• Poor retention power is a barrier. If one fails to take timely notes when instructions are given, hoping to remember them all, one has perhaps given away a part of the communication.

Semantic and language 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?
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 word.
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.
The words generate different meanings in different minds, according to their previous associations and language levels. Literary texts, created by master writers and read by expert critics, are continually open to reinterpretations. Some of this conflict with one another.
Yet in business life, dealing with matter-of-fact situations, semantic barriers arise from the inability to read the receiver’s mind. If the sender knows the receiver’s level of understanding, fine. If not, there is a barrier. A good communicator takes the trouble of removing all ambiguity and wrong coloring of words. As a receiver, he tries to read the words and between the lines.

Status barriers:

This again is a kind of psychological barrier, where the higher or lower social status of the other party disables one from expressing one’s meaning fully. A modest farmer, asked to express his problems to a high-ranking official or politician, may feel nervous or ill at ease.
Status symbols (e.g. luxury of the surroundings) may halt communication. A candidate from a modest background may be awestruck to see the glitz and glamour of a multinational company where he has to appear for an interview.
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).
and wrong coloring of words. As a receiver, he tries to read the words and between the lines.

OVERCOMING BARRIERS TO COMMUNICATION

There are a lot of communication barriers faced these days by all. The message intended by the sender is not understood by the receiver in the same terms and sense and thus communication brain drain occurs. It is essential to deal and cope up with these communication barriers so as to ensure smooth and effective communication.

OVERCOMING BARRIERS TO COMMUNICATION

1. Eliminating differences in perception: The organization should ensure that it is recruiting right individuals on the job. It’s the responsibility of the interviewer to ensure that the interviewee has command over the written and spoken language. There should be proper Induction program so that the policies of the company are clear to all the employees. There should be proper trainings conducted for required employees (for eg: Voice and Accent training).

2. Use of Simple Language: Use of simple and clear words should be emphasized. Use of ambiguous words and jargons should be avoided.

3. Reduction and elimination of noise levels: Noise is the main communication barrier which must be overcome on priority basis. It is essential to identify the source of noise and then eliminate that source.

4. Active Listening: Listen attentively and carefully. There is a difference between “listening” and “hearing”. Active listening means hearing with proper understanding of the message that is heard. By asking questions the speaker can ensure whether his/her message is understood or not by the receiver in the same terms as intended by the speaker.

5. Emotional State: During communication one should make effective use of body language. He/she should not show their emotions while communication as the receiver might misinterpret the message being delivered. For example, if the conveyer of the message is in a bad mood then the receiver might think that the information being delivered is not good.

6. Simple Organizational Structure: The organizational structure should not be complex. The number of hierarchical levels should be optimum. There should be a ideal span of control within the organization. Simpler the organizational structure, more effective will be the communication.

7. Avoid Information Overload: The managers should know how to prioritize their work. They should not overload themselves with the work. They should spend quality time with their subordinates and should listen to their problems and feedbacks actively.

8. Give Constructive Feedback: Avoid giving negative feedback. The contents of the feedback might be negative, but it should be delivered constructively. Constructive feedback will lead to effective communication between the superior and subordinate.

9. Proper Media Selection: The managers should properly select the medium of communication. Simple messages should be conveyed orally, like: face to face interaction or meetings. Use of written means of communication should be encouraged for delivering complex messages. For significant messages reminders can be given by using written means of communication such as : Memos, Notices etc.

10.Flexibility in meeting the targets: For effective communication in an organization the managers should ensure that the individuals are meeting their targets timely without skipping the formal channels of communication. There should not be much pressure on employees to meet their targets.

THE COMMUNICATION PROCESS/CYCLE

                                                                                                                                                                                 

•        The transmission of sender’s ideas to the receiver and the receiver’s feedback or reaction to the sender constitute the communication cycle.

•        The process of communication begins when one person (the sender) wants to transmit a fact, idea, opinion or other information to someone else (the receiver).

•        This facts, idea or opinion has meaning to the sender.

•        The next step is translating or converting the message into a language which reflects the idea. That is the message must be encoded. The encoding process is influenced by content of the message, the familiarity of sender and receiver and other situation of factors.

•        After the message has been encoded, it is transmitted through the appropriate channel or medium.

•        Common channel in organization includes meetings, reports, memorandums, letters, e-mail, fax and telephone calls.

•        When the message is received, it is decoded, by the receiver and gives feedback to the

  sender as the conformation about the particular message has been carefully   

  understand or not.

ELEMENTS OF COMMUNICATION

The process of communication involves the following elements:

1. Sender or transmitter: The person who desires to convey the message is known as sender. Sender initiates the message and changes the behaviour of the receiver.

2. Message: It is a subject matter of any communication. It may involve any fact, idea, opinion or information. It must exist in the mind of the sender if communication is to take place.

3. Encoding: The communicator of the information organises his idea into series of symbols (words, signs, etc.) which, he feels will communicate to the intended receiver or receivers.

4. Communication channel: The sender has to select the channel for sending the

information. Communication channel is the media through which the message passes. It is the link that connects the sender and the receiver.

5. Receiver: The person who receives the message is called receiver or receiver is the person

to whom the particular message is sent by the transmitter. The communication process is

incomplete without the existence of receiver of the message. It is a receiver who receives

and tries to understand the message.

6. Decoding: Decoding is the process of interpretation of an encoded message into the

understandable meaning. Decoding helps the receiver to drive meaning from the message.

7. Feedback: Communication is an exchange process. For the exchange to be complete the

information must go back to whom from where it started (or sender), so that he can know

the reaction of the receiver. The reaction or response of the receiver is known as feedback.

8. Brain drain: On whole process there is a possibility of misunderstandings at any level and

is called brain drain. It may arise on sender side if they do not choose the adequate medium

for delivery of message, by using default channel and it may also arise when receiver does

not properly decode the message. In other words, we can say that it is breakdown of cycle at

any level.

Conclusion

In organizations, business communication becomes even more important as people working in different departments have to achieve common objectives. The working of inter-personal relationships is possible only through communication.

Apart from binding its various components internally, communication is what links an organisation with the external world. Thus, communication is regarded as the foundation of a successful organisation. No group can exist without communication.

Communication has a significant impact on the ultimate potency of an organisation. It is only through communication that ideas, information, attitudes or emotions get conveyed from one person to another.