Unit No.

-1 Introduction of Business Communication

Introduction:
Business Communication is a wider concept which includes two different terms
'Business and 'Communication'. Business is a combination of two concepts i.e.
Industry and Commerce. Again, Industry is divided into three categories. 1)
Primary industry 2). Secondary industry 3) service industry. Commerce includes
trade and aids to trade; thus, business is wider concept. As far as the word
communication is concern it has several meanings some people take
communication as the means of transport while other treat it as the source of
exchange of ideas facts, opinions, etc. from one person to another. In short
communication is something which transfers ideas, data, facts and opinions from
one place to another and from one person to another.
Meaning:
A history of word "Communication" tells us that it has been derived from the Latin
word "Communis" or "Communico” that means “Sharing information".
Communication is transmission of information from person to person.
Communication is possible only if there are two persons - a speaker and a listener.
Perfect or effective communication includes the response from the listener.
Communication enables human beings to acquire, exchange, store and process of
information. In short, communication takes place in society. So, it is a social affair.
No life is possible without communication. In other words, communication is
backbone of human life.
Definitions:
1) Peter Little:
"Communication is the process by which information is transmitted between
individuals and /or organisation so that an understanding response results.”
2) Newman and Summer:
"Communication is an exchange of facts, ideas, opinions, emotions by two or more
persons."
3) Theo Haiman:
“Communication is the process of passing information and understanding from
one person to another. It is the process of imparting ideas and making oneself
understood by others.
Characteristics/Features of Business Communication:
1) Segmented:
Even in small organizations, it is wrong to assume that all employees will have the
same needs, interests and desires when it comes to business communication.
Effective business communication is segmented to meet the needs of specific
audiences.
2) Specific:
Generic business communication does not meet the needs of anyone. Effective
business communication is specific.
3) Accurate:
Effective business communication is accurate in terms of the content
conveyed and in terms of simple things that include grammar, spelling and
punctuation.
4) Timely:
Employees need to know what is going on in their organizations--and in the
external environment that impacts them.
5) Frequent:
It cannot be assumed that a message has gotten across if it is sent just one time.
Effective business communication occurs frequently to ensure that it has been
received by all employees. Employees leave and new employees join the company
and employees transfer from one role to another, thus requiring new and updated
information.
6) Multi-Channel:
Effective business communication needs to be sent through a broad variety of
channels to ensure that it is received by employees in different settings. Businesses,
fortunately, have a variety of channels to choose from the traditional (print, bulletin
boards, meetings) to the new-technology (email, blogs & social media sites).
7) Face-to-face:
Face-to-face communication is still the most effective, and should be used
whenever possible and practical. In very large organizations this can be
challenging, but even then, alternatives may include video conferencing or the use
of webinars.
8) Two-Way:
Employees need the opportunity to share their feedback, opinions and thoughts
with managers and employers. Effective business communication offers the
opportunity for two-way communication to benefit employees and employers.
Importance / Need of Business Communication:
1) Information to Management:
Employees make available to the management relevant information and facts etc.
It is one the basis of such information and facts that management takes those
decisions which are helpful to its growth and progress.
2) Information to Employees:
The management makes available to the employee’s relevant information. How a
particular task is to be performed, what is required to accomplish it, how the
employees will be rewarded on completion of the task etc. are important
information that can be obtained through business communication.
3) Improvement in Moral:
By providing detailed information regarding all tasks and individual issues to
employees business communication helps improve their morale. Business
communication performs this function very effectively. In short internal
communication helps increase job satisfaction, safety, productivity and profits and
at the same time it decreases absentee, grievances and inefficiency.
4) In Building Business Relations with the Suppliers:
Business communication establishes relations with outside suppliers. It is through
business communication that suppliers are informed about which raw material is
required and when, in what quantity and of what quality the same is required.
5) Sale of Goods and Services:
A business approaches the prospective customer quipped with information
regarding its all through business communication i.e. shareholders, product, its
importance, quality etc.
6) Report to Owner:
Shareholders are the owners of the business and so must be kept informed about
each and every information of the business. This function is fulfilled efficiently by
business communication.
7) Report to Government:
Business communication is also used to render necessary reports to the
government and to render various returns as per requirement of existing law.
8) Creates Goodwill for the Business:
Every business survives and progresses on its goodwill. Business communication
performs an important function to create and maintain goodwill for the business.
9) Ensures Efficiency:
Business communication can play an important role in ensuring the efficiency and
success of any organisation. Business organisation functions through planning,
organising, staffing, directing and controlling. In fact, these are the main and basic
functions of business management. Without communication, management is not
possible. Modern business is very complex.
10) Maintains Co-ordination:
Business enterprises have to open the branches at various places. In order to have
a proper co-ordination between branches and head office, the concerned officer
has to keep liaison through different types of communication methods.
11) Maintains Harmony:
Managers in the modern business try to maintain harmonious relations with their
staff. It is very essential to minimise the chances of industrial disputes. The
continuous dialogue would surely improve the labour management relations.
Training, meeting and discussion always boost the morale of the workers.
12) Builds Corporate Image:
Business communication helps to build the corporate image of the organisation.
Image of the organisation largely depends upon the quality of communication.
13) Bridges Gap:
Proper and meaningful communication can bridge the gap between planning and
execution. Many times, good plans don't see the light of a day because of non-
cooperation on the part of executives.
Principles of Effective Communication:
1) Clarity of Objective:
The objective of communication should be known to the communicator. Why
communication is necessary? He should be completely able to answer this
question. Ethical communication should be true, honest, clear, accurate and
sincere. It should not be deceptive.
2) Proper Message:
The communicator should construct the message in meaningful manner. Encoding
of thoughts is an intellectual task and it has to be done with proper care and
thinking.
3) Knowledge of Communicatee:
The message sent by the communicator should be understood by the
communicatee. Effective communication is dependent on level of knowledge of
communicatee and his status in the organisation.
4) Selection of Media /Method:
In order to have effectiveness in terms of cost and benefit, proper selection of
method is essential. Again, it depends upon the nature of communication and
urgency.
5) Removal of Barriers:
Sometimes misinterpretation of message may cause confusion in the organisation.
All possible hurdles are removed. Noise is also the barrier of communication.
6) Feedback:
Respond /Reply is a core part of communication. Communicatee is expected to
react to the message. Feedback helps to complete the communication cycle.
7) Communication Climate should be Open:
Communication climate depends upon factors such as nature of business,
organisational set up, people in the organisation and management style of it. Open
communication climate should be created and maintained because only in such a
climate managers spend more time in listening than issuing orders.
8) Communication Should Have Ability to Use and Adopt Technology:
To succeed, managers should make sure that they can understand, use and adopt
to technological tools of communication.
Process of Communication:
Communication is the process of passing information from one person to another.
It is the art of transmitting information, idea and attitudes from one person to
another person. Communication is a wider term. In simple words communication
is the process of passing information from one person to another.

B) Steps in Communication Process:

1) Message:
A Message is information. Information may be written or spoken by its nature. It
is to be sent from one person to another. It may represent individual or group of
individuals.

2) Sender:
Sender is a person who transmits, spreads or communicates message. Sender is a
person who conceives and initiates the message with the purpose of information
pursued, influencing, changing the attitudes, opinion or behaviour of the receiver
of the message

3) Response:
The response may be immediate or deferred, favourable or unfavourable. He may
send a letter of hearty congratulation to a friend on his success in sports activity
and receive an immediate reply.
4) Encoding:
'Encoding' means changing the message in to symbols. It means that the message
from its 'Mental Form' is changed in to different patterns of words, pictorial forms
or signs of a specific visual language. In other words, encoding means putting
ideas, facts, feelings and information in to symbols which can be words, signs,
actions, picture and audio visuals.
5) Channel:
Channel is a medium of conveying message to the receiver. It may be written, oral,
audio, visual or live projections. The written medium can be in the forms of letter,
means, reports, manuals, circulars, questionnaires etc.
6) Receiver:
The receiver is the directed audience of the message. He gets the message
interprets it and tries to pursue the total meaning or exact meaning of the message
transmitted by sender.
7) Decoding:
'Decoding' means an art of translating symbols of communication in to their
meaning. Once receiver succeeds in translating symbols, he may receive
meaning of message sent by the sender.
8) Acting:
Communication manipulates the receiver to act in a desired manner when the ser
receives the response of the other person; he comes to know whether the receiver
understood the message or not.
9) Feedback:
This is the loop that connects the receiver in the communication process with the
sender. The sender acts as a feedback receiver. In communication process,
feedback plays an important role. It helps the communicator to know that if there
are any corrections or changes are to be made in the proportionate action. It also
ensures that the receiver has received the message and understood it as intended
by the sender.

Barriers to Communication:
A) Physical Barriers:
While performing the process of communication, some problems are with speaker
or listener. Such problems are related to speaker and listener. These problems are
called physical barriers. The physical barriers to communication are as follows:
1) Subjective Stress:
Sometimes the listener can't listen properly. The listening or interpreting of the
person is disturbed by illness, sleeplessness or mood variation. Personal stress or
individual state of mind or subjective stress may be called physical barrier in
communication.
2) Environmental Stress:
Sometimes inadequate ventilation, humidity, strong glare, and loud sound disturb
the smooth communication. Environmental stress is also physical barrier.
3) Competing Stimulus:
In this case, another conversation may be going on within hearing distance,
music, traffic noise, etc.
4) Ignorance of Medium:
Sometime, the receiver, who is not familiar with the use of medium, may be barrier
in understanding. Such barriers include the factors like mobility to read maps,
graphs, charts and other things like them. Ignorance of medium is also physical
barrier. All above discussed are physical barriers in Communication. So for
effective communication such barriers should be avoided for perfect or effective
Communication.
B) Mechanical Barriers:
Mechanical barriers are different from physical barriers. A list of mechanical
barriers can be given as follows:
1) Failure of loudspeakers; mechanical disturbance in devices.
2) A defective device such as telephone etc.
3) The absence of communication facilities.
4) Difficulty in reception.
C) Semantic Barriers:
There is always a possibility of misunderstanding the feelings of the sender of the
message or getting a wrong meaning of it. The words, signs, and figures used in
the communication are explained by the receiver in the light of his experience
which creates doubtful situations. This happens because the information is not sent
in simple language.
1) Badly Expressed Message:
This barrier is created because of the wrong choice of words, in civil words, the
wrong sequence of sentences and frequent repetitions. This may be called
linguistic chaos.
2) Symbols or Words with Different Meanings:
A symbol or a word can have different meanings. If the receiver misunderstands
the communication, it becomes meaningless. For example, the word 'value' can
have different meanings in the following sentences:
a) What is the value of computer education these days?
b) What is the value of this mobile set?
c) Value our friendship.
3) Faulty Translation:
A manager receives much information from his superiors and subordinates and he
translates it for all the employees according to their level of understanding. Hence,
the information has to be moulded according to the understanding or environment
of the receiver.
4) Technical Jargon:
Generally, it has been seen that the people working in an enterprise are connected
with some special technical group who have their separate technical language.
5) Body Language and Gesture Decoding:
When the communication is passed on with the help of body language and
gestures, its misunderstanding hinders the proper understanding of the message.
For example, moving one's neck to reply to a question does not indicate properly
whether the meaning is 'Yes' or 'No'.
D) Psychological or Emotional Barriers:
The importance of communication depends on the mental condition of both the
parties. A mentally disturbed party can be a hindrance in communication.
Following are the emotional barriers in the way of communication:
1) Premature Evaluation:
Sometimes the receiver of information tries to dig out meaning without much
thinking at the time of receiving or even before receiving information, which can
be wrong.
2) Lack of Attention:
When the receiver is preoccupied with some important work he/she does not listen
to the message attentively. For example, an employee is talking to his boss when
the latter is busy in some important conversation. In such a situation the boss may
not pay any attention to what subordinate is saying.
3) Loss by Transmission and Poor Retention:
When a message is received by a person after it has passed through many people,
generally it loses some of its truth. This is called loss by transmission. This happens
normally in case of oral communication. Poor retention of information means that
with every next transfer of information the actual form or truth of the information
changes. According to one estimate, with each transfer of oral communication the
loss of the information amounts to nearly 30%.
4) Distrust:
For successful communication the transmitter and the receiver must trust each
other. If there is a lack of trust between them, the receiver will always derive an
opposite meaning from the message. Because of this, communication will become
meaningless.
E) Organisational Barriers:
1) Organisational Policies:
Organisational policies determine the relationship among all the persons working
in the enterprise. For example, it can be the policy of the organisation that
communication will be in the written form. In such a situation anything that could
be conveyed in a few words shall have to be communicated in the written form.
Consequently, work gets delayed.
2) Rules and Regulations:
Organisational rules become barriers in communication by determining the subject
matter, medium, etc. of communication. Troubled by the definite rules, the senders
do not send some of the messages.
3) Status:
Under organising all the employees are divided into many categories on the basis
of their level. This formal division acts as a barrier in communication especially
when the communication moves from the bottom to the top. For example, when a
lower-level employee has to send his message to a superior at the top level there is
a lurking fear in his mind that the communication may be faulty.
4) Complexity in Organisational Structure:
The greater number of managerial levels in an organisation makes it more
complex.
results in delay in communication and information gets changed before it reaches,
we receiver.

5) Organisational Facilities:
Organisational facilities mean making available sufficient stationery, telephone
translator, etc. When these facilities are sufficient in an organisation, the
communication will be timely, clear and in accordance with necessity. In the
absence of these facilities’ communication becomes meaningless.
F) Cultural Barriers:
It is a fact that effective communication is the key to success in both personal and
business relationships. In the absence of proper communication between two
people, actions will not be in tandem with the actual motive. Many a time, the
reason behind the lack of effective communication between two individuals is, the
cultural differences between them.
1) Social and Economic Conditions:
Individuals may not communicate with each other due to a difference in the status
they hold in society. For example, people holding higher ranks or posts or those
with a higher position in society may experience difficulty in communicating with
individuals holding lesser ranks or those on a lower social status. In the same way,
those in a good economic condition may not communicate openly with people in
a relatively lower financial status. This is observed at both personal and
professional levels
2) Cultural Background:
People coming from different countries may not find comfort in communicating
of coordinating easily with one another. When people from different countries
come together, their way of thinking varies. Some might be shy to communicate,
while others open for communication. Owing to the difference in their cultural
backgrounds, there is a difference in their upbringing, due to which there's a
difference in their views and beliefs.

3) Language and Accent:

Language is one cultural barrier that is observed in people coming from different
part of the world. Many people hesitate to communicate with a foreigner because
many of them are unable to understand their language or accent. For example, An
Asian may not feel comfortable talking to an Australian, owing to his/her heavy
English accent.
4) Behaviour and Nature:
Behaviour and human nature can be barriers in communication. Culture influences
one's personality and the persona in turn impacts the way one thinks, behaves and
communicates. For example, egoistic people may keep themselves away from
communicating with the others around. Similarly, people with an inferiority
complex may find it difficult to communicate freely.
5) Religion:
Being from different religions or castes can act as a barrier to communicate on a
personal or professional level. Sometimes, a person may feel uncomfortable
communicating with people from other religions. This is mainly because of the
difference in the beliefs they share: Religious views impact the way one thinks and
can lead to differences of opinion.
Remedies to overcome the Barriers to Communication:
1) Clarify Ideas before Communication:
The person sending the communication should be very clear in his mind about
what he wants to say. He should know the objective of his message and therefore,
he should arrange his thoughts in a proper order.
2) Communicate According to the Need of the Receiver:
The sender of the communication should prepare the structure of the message not
according to his own level or ability but he should keep in mind the level,
understanding or the environment of the receiver.
3) Consulting Others before Communication:
At the time of planning the communication, suggestions should be invited from all
the persons concerned. Its main advantage will be that all those people who are
consulted at the time of preparing the communication plan will contribute to the
success of the communication system.
4) Being Aware of Language, Tone and Content of Message:
The sender should take care of the fact that the message should be framed in clem
and beautiful language. The tone of the message should not injure the feelings of
the receiver.
5) Conveying Things of Help and Value to the Listener:
The subject matter of the message should be helpful to the receiver. The need and
interest of the receiver should specially be kept in mind. Communication is more
effective in such a situation.
6) Ensure Proper Feedback:
The purpose of feedback is to find out whether the receiver has properly
understood the meaning of the information received. In the face-to-face
communication, the reaction on the face of the receiver can be understood. But in
case of written communication or some other sort of communications some proper
method of feedback should be
adopted by the sender.
7) Consistency of Message:
The information sent to the receiver should not be self-contradictory. It should be
in accordance with the objectives, policies, programmes and techniques of the
organisation. When a new message has to be sent in place of the old one, it should
always make a mention of the change otherwise it can create some doubts.
8) Follow up Communication:
In order to make communication effective the management should regularly try to
know the weaknesses of the communication system. In this context effort can be
made to know whether to lay more stress upon the formal or the informal
communication would be appropriate.
9) Being a Good Listener:
Communication that both the sender and the receiver should be good It is the
essence of communication that both the sender and listeners. Both should listen to
the each other's point of view with attention positive attitude.