Business Communication

Unit 1
Introduction to Business Communication
Unit 1 - Introduction to Business Communication

Introduction
The need to communicate is universal and transcends the notions of language, location, and lifestyle.

Similarly, an organization is a group of people working together to achieve a common goal, and communication plays a vital role in the
process of its formation and continuance. A group of people working together must interact in order to share their needs, thoughts, plans,
expertise, opinions and so on.

Communication is the means by which information is shared, activities are coordinated, and decisions are implemented. Whether a
banking institution or a multinational company, communicating formal and technical messages is significant for its progress, prosperity,
and sustenance.

Business communication is evolving at a rapid pace with the introduction of new network-based collaborative technologies. These
technologies and tools are making real-time communication a reality, which can improve employee productivity and deliver tremendous
returns for employers. With the phenomenal advancement in technology, accessing and sharing information has come a common
function and communication has assumed more importance than ever before.

As a matter of fact, at every moment of our life, we are engaged in the process of communication, which means all of us without
exception, possess basic communication skills. This chapter aims at providing insight into the process, certain basic concepts and the
importance of communication in business.

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Unit 1 - Introduction to Business Communication

Learning Objectives

At the completion of this unit, you will be able to:

• Identify the need and style of Corporate Communication in the organizations
• Apply the stages of communication
• Choose your unique style and develop it
• Model the style that fits best in different situations
• Illustrate the effectiveness in business communication
• Prepare to handle breakdown in communication
• List the importance of effective listening
• Illustrate ways to become an active listener
• Illustrate and understand the common reasons for Failures in Business Communication

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Unit 1 - Introduction to Business Communication

Table of contents

S.No Details Page No.

1.1 Definition of Communication 7
1.1.1 – Business Communication 8
1.1.2 – Importance of Business Communication in Organization 10
1.1.3 – Functions of Business Communication 11
1.1.4 – Communication Process 13
1.1.5 – Need for Communication in Management 16
1.1.6 – Types of Communication Networks 17
1.1.7 – Communication Concerns of the Manager 21
1.2 Effective Communication 22
1.2.1 – Effective Communication in Workplace 22
1.2.2 – Mehrabian Model 23
1.2.3 – How to achieve Effective Communication? 25
1.2.4 – How Impactful Communicators Deliver their Message 28

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Unit 1 - Introduction to Business Communication

Table of contents

S.No Details Page No.

1.3 Effective Listening 29
1.3.1 – The Process of Listening 29
1.3.2 – Benefits of Listening for Leaders and Teams 30
1.3.3 – Listening as a Crucial Part of the Communication 32
1.3.4 – Why Effective Listening Matters 33
1.3.5 – Skills that Leaders can Learn and Practice to make them more Effective Listeners 34
1.3.6 – Essential Listening Skills 34
1.4 Effective Communication as a Strategy to Achieve your Business Goals 36
1.4.1 – Know Your Audience 36
1.4.2 – Repeat and Remix 37
1.4.3 – Top Down and Bottom Up 37

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Unit 1 - Introduction to Business Communication

Table of contents

S.No Details Page No.

1.5 Managing Breakdown in Communication 38
1.6 Look at Three Common Traps 39
1.7 Communication Failures in Business Communication 40
1.7.1 – Some of the most Common Reasons of Failures in Workplace Communication 40
1.8 Managing Communication Breakdown 42
1.9 Summary 43
1.10 Reference and Further Readings 44

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Unit 1 - Introduction to Business Communication

1. Introduction to Communication
Achieving success in workplace is closely associated with the ability to communicate effectively, both in the workplace and with outsiders.
Unlike in the past, today we face a highly volatile world where everything is in a state of flux. Most of the changes associated with this
transformation revolve around the processing and communication of information.
A number of communication challenges exists at our workplaces. Identifying a problem, arriving at an appropriate solution, developing
products and services, and managing relationships- all these activities call for effectiveness and efficiency in communication.

1.1 Definition of Communication

Communication is the process of exchanging information, usually through a
common system of symbols it takes a wide variety of forms- two people having a
face-to-face conversation to hand signals to the messages sent over global tele-
communication networks.
The process of communication facilitates interaction among people; without it, we
would be unable to share our knowledge or experiences with anybody else. Common
forms of communication include speaking, writing, gesturing, and broadcasting.
Emphasising the various process of communication, Alan Louis says”
Communication is the sum of all the things one person does when he wants to create
understanding in the minds of another; it involves a systematic and continuous
process of telling, listening, and understanding”.
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Unit 1 - Introduction to Business Communication

1.1.1 Business Communication

Communication is an essential element in the success of any business. The process of transferring information from one person to
another, within and outside the business environment, is termed as ‘Business Communication.’ The term ‘Business Communication’ is
derived from general communication which is associated with business activities. In other terms, communication between business
parties or people for business-related tasks is considered as ‘Business Communication.’
Prof. J. Haste stated that when the communication occurs between either two or more than two businesspeople for the purpose of
effective organization and administration of business then it is considered as Business Communication.
There are basically two forms of communication:
i. Business-to-business: The first form of business communication is business-to-business. This is any communication that is done
from one business to another. Any communication between the two businesses is considered business-to-business communication.
For example, if you own a coffee shop and you hire a merchant service company to process your credit cards, all the communication
between your shop and the merchant service company is business to business communication. Business-to-business relationships
are vital for a strong and successful business and can help strengthen your bottom line.
ii. Business-to-employees: Another form of business communication is business-to-employee communication. This is any corporate
communication, whether it is information, correction or encouragement. Most businesses leave this type of communication to the
human resources department for clarity and effective execution. Effective communication to employees is crucial to prevent
misunderstandings and promote unity of thought and process throughout the entire organization. For example, when an organization
adopts a new technology for serving the customer better, the reasons for the change and what the change can achieve for the
organization should be to be clearly and persuasively communicated to the employees.
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Unit 1 - Introduction to Business Communication

1.1.1 Business Communication – Contd.

Illustration:
Business communication involves constant flow of information. Organizations these days are very large and involve large number of
people. There are various levels of hierarchy in an organization. Greater the number of levels, the more difficult is the job of managing the
organization. Communication here plays a very important role in the process of directing and controlling the people in the organization.
Feedback is integral part of business communication. Immediate feedback can be obtained to avoid any misunderstandings. There
should be effective communication between superiors and subordinates in an organization and between organization and society at large
(for example between management and trade unions).
It is essential for success and growth of an organization. Communication gaps should not occur in any organization.
Business Communication is goal oriented. Business Communication is regulated by certain rules and norms. The rules, regulations, and
policies of a company have to be communicated to people within and outside the organization. In early days, business communication
was limited to paper work, telephone calls, etc.
Now with the advent of technology, we have cell phones, video conferencing, emails, and satellite communication to support business
communication. Effective business communication helps in building goodwill of an organization.

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1.1.2 – Importance of Business Communication in Organization

• Enhances business partnerships: Business Communication also improves partnerships in business. It plays a significant role in
dealing with external business clients or vendors. Vendors may be required to communicate on products regularly for improvements.
Also, an effective and harmonious relationship with other businesses determines the further success of an organization. A business
unit that has developed its image as an entity for easy partnership through its effective communication can attract other business units
for forming business relationships with them.
• Helps in increasing productivity: Effective business communication increases the productivity of staff by boosting up teamwork. It
creates a trustworthy and understanding environment among employers and employees. Effective communication is related to
cooperating with employees and understanding their needs and desires. By doing so, employees are able to accomplish their tasks
more effectively and efficiently. Also, scope of doing mistakes or errors during their work minimizes due to effective communication.
• Facilitates innovations in business: Effective business communication helps in business innovations as well as it facilitates
employees to convey their ideas and suggestions openly. Similarly, at the time of launching any new product in the market, effective
communication ensures performance of the sales team, market acceptance of the product, fast delivery of products in the market, etc.
• Enhances efficiency of managers and leads to effective leadership: Effective business communication leads to an increase in the
operational efficiency of managers. With the help of fair communication, managers can perform different managerial functions like
planning, directing, organizing, controlling, etc. smoothly. Moreover, if communication is effective then only effective leadership can be
taken place. For qualitative leadership activities, a proper and smooth system of communication in business is essential.
• Facilitates decision-making: Effective decisions require up-to-date information. Using effective communication, managers can
acquire information from different sources and can utilize it for making correct decisions.
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1.1.3 – Functions of Business Communication

• Communicating Job Functions to Employees: Informing about assigned job roles is a crucial key function of business
communication. Team members having clarity on expected job tasks and how they can contribute to achieving objectives of the
organization by fulfilling their job functions, they can contribute more to the completion of their assigned tasks. In the absence of
clarity of their roles, employees might not be able to complete their work as expected.
• Providing Adequate Feedback: Providing timely and accurate feedback to employees and customers is also an important function of
business communication. The performance of employees can be enhanced by providing regular feedback to them regarding their
work performance and competencies. This helps them to understand their current skill set, strengths and also they can fill any gap in
case of any shortage of required skills. Regular feedback from customers and other stakeholders on products and services of
business facilitates the improvement in the production process and quality. Different informative communication lies in an organization
like job descriptions, assigned targets to achieve, performance management, etc.
• Convincing Clients: Business communication is also often used to convince prospective customers, clients and business partners in
order to finish a business deal or transaction. This type of communication can be in both oral and written form like a Sales Officer may
convince a client on phone call or in written form i.e. providing a mass advertisement in magazine or newspaper for a new product
launch or exciting offers on existing products. Both credibility and emotions are an important element of this function of
communication. Moreover, this type of communication can be utilized in PR (public relations) activities and to build the organization’s
brand image.
• Employee Motivation for better Decision-making: Communication in businesses is used in a strategic form to enhance the
decision-making capability of employees related to their daily activities and for their long-term objectives related to the business.

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1.1.3 – Functions of Business Communication

Like if performance-based bonuses or incentives are communicated among employees effectively then it motivates employees to
contribute to the organization’s growth more efficiently and they can achieve their work expectations in a timely manner.
• Building Social Bonds: Communication has a critical role in supporting employees to build a social circle or bond. Some
organizations have an open culture or work environment in which employees from all levels can communicate with each other and
their superiors freely. Other organizations prefer to follow a hierarchy or chain of command in communication.
When employees have a social bond with people whom they work with like their colleagues, supervisors, clients, etc., then their job
efficiency improves as the team spirit increases.

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1.1.4 – Communication Process

The process of communication is a long one that involves certain elements. Without the major elements of effective communication, the
process cannot be a success.
The following are the elements of the process of effective communication:
1. Sender: The sender lays down the foundation of effective communication. The message is based on the idea and expression of the
sender. Thus, the sender is the initiator of the communication. The sender is the one who encodes the idea that he wants to
communicate in a message that can be understood by the receiver.
2. Message: The message is the idea, thought, speech, symbol, sign, gesture, etc, that is to be communicated to the receiver by the
sender. The mode in which the message will be encoded is decided by the sender based on the nature and type of information. it can
be both verbal and nonverbal in nature.
3. Encoding: Encoding is the process in which the target idea is transformed into a medium so that it can be communicated to the
receiver. encoding is a very important step in the process of communication that if went wrong, can disrupt the whole process of
communication.
4. Channel: The channel is the mode or medium through which the message flows or is transmitted to the receiver. The channel is the
mode through which the sender and receiver are connected and the message flows through it. The choice of a proper channel is
paramount considering the advantages and disadvantages of each channel.
5. Decoding: Decoding is done by the receiver who interprets the underlying meaning of the message. The receiver comprehends the
message and tries to understand it most effectively.
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6. Receiver: The receiver is the person for whom the message was intended. The receiver should be an active listener so that he can
well interpret the meaning of the message. The receiver needs to correctly comprehend the message based on his knowledge,
experience, and skills.
7. Feedback: Feedback is the end aspect of communication. Feedback is the response of the receiver that he sends to the sender in
connection with the message. Feedback makes sure that the communication is effective and that the messages are properly
interpreted and understood by the receiver.

3. Encoding 5. Decoding

1. Sender 2. Message 4. Media 6. Receiver

NOISE

7. Feedback

Communication Process
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Business communication can be thought of as a problem-solving activity in which individuals may address the following
questions:
• What is the situation?
• What are some possible communication strategies?
• What is the best course of action?
• What is the best way to design the chosen message?
• What is the best way to deliver the message? Verbal – 35%

• Facial Expressions
• Tone of Voice
Nonverbal • Movement
65% • Appearance
• Eye Contact
• Gestures
Source: www.imprinttraingcenter.blogspot.com • Posture

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1.1.5 Need for Communication in Management

Today, from the small to multinational enterprise, every organization needs an effective communication system to enable it to
function and flourish in an organization, communication is a means:
• To increase employees’ job performance and effectiveness by updating their knowledge.
• To promote employees’ sense of belonging and commitment.
• To effect changes smoothly.
• To motivate and create a sense of identification with organization’s goals.
• To inform and convince employees about decisions and the reasons behind those decisions.
• To develop employees’ clear understanding of their roles and future growth opportunities in the organization.
• To empower employees with information on development and activities.
Hence, an active communication system is vital for the good health of an organization. If there is a continuous sharing of ideas and
interactive meetings between the management and workers, the overall atmosphere of understanding and goodwill would prevail in the
workplace.
If decision-making is transparent, employees would understand reasons for those decisions and accept and implement them even if they
affect them adversely.

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1.1.6 Types of Communication Networks

a. Upward Communication:
Upward communication is the line of communication through which subordinates can convey information, to their seniors. Upward
communication is the process by which lower-level company employees can directly communicate with upper management to
provide feedback, complaints or suggestions regarding the day-to-day operations of the company.it can contain information,
requests, reports and proposals.
Upward communication is very vital and crucial source of information for the upper management to make their business decisions. It
assists them to alert the senior most management regarding the changes required in the organization. Managers can gain feedback
from employees that can aid in enhancing the development of organization. Employees who are motivated and urged to provide
feedback feel a sense of belonging and respect that their opinion matters.
Upward communication is participative because it encourages lower-level employees to voice their opinions.
Advantages of Upward Communication:
• Increases mutual trust.
• Improves workplace procedures.
• Helps managers identify areas for self-improvement.
• Makes employees feel valued.
• Creates an inclusive environment within an organization.
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1.1.6 Types of Communication Networks – Contd.

b. Downward Communication:
Downward communication is the formal chain of command established to direct subordinates and convey information, instructions,
directions and orders, i.e., messages instructing subordinates what they should be doing. In this type of communication, formal
messages are conveyed to the employees via a chain of command. Downward communication is basically the opposite of upward
communication. It is the process of sending a message from the top level management to the employees. These messages are
authoritative and normally contain information concerning procedures, policies and vital notices that are important to the organization.
Downward communication follows the hierarchy of organization, which means member compliance and organizational discipline is
easier to preserve. It also provides proficiency as the information and instructions come from the upper management who are in
power that can manage activities in the organization.
In other words, messages and orders start at the upper levels of the organizational hierarchy and move down toward the bottom
levels. Responses to downward communications move up along the same path
Advantages of Downward Communication:
• Organizational discipline.
• Efficiency.
• Effective communication of goals.
• Ease of delegation.
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1.1.6 Types of Communication Networks – Contd.

c. Horizontal Communication:
Refers to the interactions that occur between employees that work at the same hierarchical level. Also known as lateral
communication, this type of communication includes employees who work together in the same area, as well as employees who work
in different departments.
Horizontal communication is commonly used when employees collaborate on projects. This type of communication is important in
organizations in facilitating efficiency in the workflow. Having clear communication within the team can help to reach organization
goals effectively.
Advantages of horizontal communication:
• Promotes teamwork and a company-wide sense of unity
• Decreases misunderstandings because the same information is shared with everyone
• Improves problem-solving skills and boosts creativity
• Makes it easier to coordinate teams and tasks
• Helps employees feel empowered
• Boosts transparency

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1.1.6 Types of Communication Networks – Contd.

d. Diagonal Communication:
Is a type of business communication where the exchange of information occurs between individuals or teams, not on the same
department or level in the organization. It is also known as crosswise communication.
The diagonal flow of communication instigates cutting across departmental lines by letting people from different departments who
have no direct reporting relationship interact with each other.
Diagonal communication in an organization is used to ensure different teams in the organization are adhering to the overall goals of
the company.
Advantages of horizontal communication:
• A direct, fast, and selective method of communication.
• Spreads messages quicker as compared to other methods of communication.
• It enables capable and smart individuals from other departments to contribute and provide assistance with problems.
• It facilitates interdependence between different departments leading to better cooperation for carrying out large goals.
• Diagonal communication can be used to interlink high-performing individuals from different departments and create task teams for
special objectives.

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1.1.7 Communication Concerns of the Manager

In business, a manager spends maximum time either speaking or writing to his colleagues, his seniors, his juniors, or his clients. A
manager’s success depends largely on his ability to communicate to his colleagues such objectives as what has to be done, and why it is
to be done.
To be able to do this, the manager has to devote his time to:
• Receive and interpret information from other managers and departments.
• Send information to other department managers.
• Pass information and suggestions on new plans or projects upwards to senior/top management.
• Send information downwards.
• Develop a positive attitude.

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1.2 Effective Communication

Effective Communication is defined as communication between two or more persons in which the intended message is:
• Properly encoded
• Delivered through appropriate channel
• Received
• Properly decoded and understood by the recipient(s)
Business managers with good verbal, nonverbal and written communication skills helps facilitate the sharing of information between
people within a company for its commercial benefit
1.2.1 Effective Communication in Workplace
Effective communication in the workplace can help you in the following manner:
• It can help you to build an efficient team and manage the team members and other employees if required.
• It can enhance your innovation and creativity and you can reap its fruits as multiple benefits.
• It can help you to grow your company at a fast pace as good communication will help you to get better results.
• You can retain more and more sincere employees in your company with the help of effective communication.
• It will help you to build strong relationships among employees and get more opportunities for your company.
• It increases the engagement of employees in their work and also establishes responsibility toward their team.
• Another important benefit of effective communication is that it increases customer satisfaction.
• It helps to easily make decisions and carry out discussions that are goal oriented.
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1.2.2 Mehrabian Model

Mehrabian’s 7-38-55 Communication Model
We are often told that tone, body language, nuance and facial expressions play a huge role in the our communications. And that this is
particularly the case when we are communicating in situations where understanding emotions and attitudes is important.
Professor Mehrabian believes that there are three core elements in the effective face-to-face communication of emotions or
attitudes:
• Nonverbal behaviour (facial expressions, for example)
• Tone of voice, and the
• Literal meaning of the spoken word.
These three essential elements, Mehrabian argues, account for how we convey our liking, or disliking, of another person. His particular
focus is on the importance of such nonverbal ‘clues’ when they appear to conflict with the words used and/or the tone in which they are
spoken. Mehrabian developed his early theories on this subject during the 1960s.
Drawing on the findings of two experiments he conducted in 1967, he formulated the 7-38-55% communication rule.
Mehrabian believes that the person receiving a communication trusts the element which most accurately reflects the communicator’s true
feelings towards them.

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1.2.2 Mehrabian Model – Contd.

The Mehrabian’s 3V Rules:
• Verbal – Words, Content – 7%
• Vocal – Tone, Pitch, Intonation – 38%
• Visual – Body Language, Facial Expression, Gestures – 55%
Your
Words
Mehrabian’s 7-38-55 Communication shown as a pie chart: Your Tone of 38%
Voice
38%

Your Body Language

55%

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1.2.3 How to achieve Effective Communication?

Just remember, not all relationships will be great; but you can make sure that they are, at least workable.
Effective communication occurs when a complete message is sent and entirely received and understood by an audience. Good
communication is to be able to send the right message to the right person using the right medium at the right time. The audience may
then have the opportunity to engage in a productive discussion on the message based on the nature of the message.
Effective communication guarantees that you are being heard. You can then influence your environment as per our own objectives and
needs. Others might find it difficult to know or understand what you need if you are not able get your message across effectively.
To avoid missed opportunities and prevent broadcasting messages that weaken your service or generate misinterpretation, you need to
take control of the communication process. You need to communicate with clarity to raise the profile of your service, its nature and
purpose.
Effective communication brings unanimity in sending out the same messages by all the service staff. It terminates the possibility of
confusion and creates a strong overall message. However, good communication does not need to be a difficult task. If you have a clear
vision and robust evidence, you can then adapt for diverse audiences.
Sometimes this is to be done in an extremely formal way, such as reporting into a departmental body, while many a times the
communication can be informal and startling such as a chance meeting in a lobby or at a function.
You always have a chance to raise awareness about your service whenever you interact with someone. You can create opportunities for
communication—taking control of the communication process.
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1.2.3 How to achieve Effective Communication? – Contd.

Largely, effective communication can achieve the following:
i. Impacts on decision-making by putting across a strong viewpoint and nurturing mutual understanding
ii. Conveys decisions and solutions by sharing accurate, timely, and relevant information
iii. Enables solutions that are mutually beneficial
iv. Encourages trust and understanding leading to healthy relationships

The 7Cs for Effective Business Communication

i. Clarity
ii. Completeness
iii. Conciseness
iv. Consideration (The ‘You’ Attitude)
v. Correctness Accuracy
vi. Concreteness
vii. Courtesy
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1.2.3 How to achieve Effective Communication? – Contd.

Crucial elements to be taken into consideration are:
• KISS—keep it short and simple. Since you may only have one opportunity to deliver the message, you must be clear, concise and
complete.
• Accurate and factual content of the message is necessary.
• A mix of factual and psychological aspects makes the message highly impactful.
• The concerns of the audience should be addressed in the message.
• The choice of language according to the audience and the communication medium must be appropriate.
• Technical language and jargons should be avoided unless talking to another professional.
• The message should be positive and focused on solutions rather than stating problems.
• Use of participative and encouraging language, where appropriate, helps achieving desired results.
• Choice of medium should be appropriate according to the intended audience, the context, and the expected response.
• The right person/stakeholder should send out the message—for example, a higher authority will have more impact on trustees than a
junior member of staff.
• The message should be sent at the right time for the audience to have some time to understand and act on.

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1.2.4 How Impactful Communicators Deliver their Message

• Before communicating
• They focus on preparation of message and arguments
• They have complete knowledge of the message
• They ensure full understanding of the message
• At the time of Delivery
• They are confident and display positive body language and communicate energetically
• They use facts and honest opinions, not rumour
• They remain concise
• They articulate well and/or use persuasive writing
• They are focused on solutions and not the problems
• While responding to the Recipient
• They understand the recipient’s viewpoint
• They actively listen to the response
• They defend the message confidently
• They are prepared to seek clarification
• They are flexible in developing a collaborative solution and not a competitive one
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1.3 Effective Listening

Effective listening is the process of analyzing sounds, organizing them into recognizable patterns, interpreting the patterns and
understanding the message by inferring the meaning.
Many of the problems we experience with people in our daily lives are primarily attributable to ineffective listening or lack of listening.
Effective listening is the process of actively absorbing the information given to you by a speaker. Delivering verbal communication, like
presenting a white paper or a report after an investigation, involves in choosing right words and nonverbal cues to convey the message
ensuring it to be interpreted the way that you intend to. Effective listeners show speakers that they have been heard and understood.
They also provide feedback to the speaker so that the speaker knows the message was received.
1.3.1 The Process of Listening
In order to be a good listener, it is necessary to understand the various stages of listening. These are:
i. The Sensing/selecting stage: The listener selects, from among a multiple of stimuli, the only one that seems important at that point
in time and converts into a message.
ii. The Interpreting stage: The listener is engaged in the act of decoding the message. It is at this stage that the listener is faced with
multiple barriers that could be semantic, linguistic, psychological, emotional or environmental.
iii. The Evaluating stage: A great deal of critical listening takes place at this stage. The listener assigns a meaning to the message,
and seeks accuracy of information and evidence. Often, the listener is disturbed by prior experiences, beliefs, and emotions, which
often come in the way of the evaluation process.
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iv. The Responding stage: This is the stage when the listener is ready to respond. In addition, this feedback stage is important for a
speaker. The listener’s non-verbal signals tell the speaker whether he or she has been understood or not. The speaker also has to
be able to understand whether the listener is faking attention.
v. The Memory stage: This is the final stage of listening. Effective listening helps listeners retain chunks of what they have heard.
‘Memorability’ (the quality or stage of being memorable) is an important index for listeners to test how much matter has been stored
in their memory banks. Unfortunately, no matter how brilliant the speaker is, most listeners can retain only 10-25% of a talk or a
presentation the day after. That is why good speakers must always make it a point to organize their matter sequentially, supported
by good visuals, so that listeners have a higher recall rate at the end.

1.3.2 Benefits of Listening for Leaders and Teams

Besides the deep implications of listening for leadership, and explored leadership models, listening has a number of direct and
practical benefits for executives, managers, and team members.
The following are the immediate tangible benefits of effective listening in the workplace:
i. Listening forms a bond of respect: Genuine listening generates respect, rapport, and trust between the speaker and the listener.
In particular, employees like and respond to, supervisors who they think are listening to them.
ii. Listening helps know the organization: Listening, especially carefully listening to the grapevine, will tell you what the members of
the staffs think about the company’s policies and activities. Hence, it will help you understand organization better. The ‘listening
manager’, because he/she listens well, has his/her mental stethoscope on the heartbeat of the organization and can usually predict
what changes are needed.
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iii. Listening increases productivity: Productivity will be higher, and problems will
be solved more quickly if people working on solving problems are encouraged to
explain problems and start working towards solutions findings before ‘advice-
giving’ begins.

iv. Listening helps to spot sensitive areas before they become explosive: If
management listens to each other properly they will in a better position to spot
sensitive areas, find the solutions before they became explosive, and problems
that could have led to serious disputes would arise.

v. Listening increases accuracy: Better listening leads to a better recollection of

important facts and issues, resulting in fewer miscommunications and mistakes.
Thus, good listening techniques are even more important when complex issues
are involved.

vi. Listening mollifies complaining employees: Very often, employees have

certain grievances. It is quite possible to come across an employee who has been
boiling inside for a long time. All that he/she needs is a listener. If you listen to
him/her patiently and sympathetically, his/her anger will be drained out and he
/she will leave mollified. Harvey Mackay, a Minneapolis businessman, author, and
columnist says, ‘You can win more friends with your ears than with your ears’.

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1.3.3 Listening as a Crucial Part of the Communication

Listening skills are equally important in delivering the message. Listening skill
ensures complete understanding of the response to your point of view and pave
way to building strong relationships.
A good listener fully understands and constructively responds to what the other
party is communicating. Ironically, everyone believes that he or she is an active
listener and thus very few of them work on the need to develop active listening
skills. It is not that listening effectively is so difficult but, in fact, most of us never
thought of developing the habits that would make us effective listeners.

Research has found that by listening effectively, you will:

• Get more information from the people you manage
• Increase others’ trust in you
• Reduce conflict
• Understand how to motivate others
• Inspire a higher level of commitment in the people you manage

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A study of over 8,000 people employed in businesses, hospitals, universities, military, and government agencies found that virtually all of
the respondents believed that they communicate as effectively as or more effectively than their co-workers.

However, research shows that the average person effectively listens at only about 25%. While most people agree that listening
effectively is a very important skill, most people do not feel a strong need to improve their own skill level.

1.3.4 Why Effective Listening Matters

To a large degree, effective leadership is effective listening. A study of managers and
employees of a large hospital system found that listening explained 40% of the
variance in leadership. Effective listening is a way of showing concern for
subordinates, and that fosters cohesive bonds, commitment, and trust.
Effective listening tends to reduce the frequency of interpersonal conflict and
increases the likelihood that when conflicts emerge they will be resolved with a “win–
win” solution.
In addition, if you listen to the people, you manage; you will learn “what makes them
tick”. When you know what makes them tick, you will be more effective at motivating
them. You can encourage them when they need encouragement, and you will know
what kinds of things they value as rewards for a job well done (e.g., public praise,
autonomy, challenge, etc.).

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1.3.5 Skills that Leaders can Learn and Practice to make them more Effective Listeners
1. The first step to becoming a more effective listener is to act like a good listener.
2. The second step to effective listening is to look at the speaker, watch the speaker closely and once eye contact is made with the
speaker, send nonverbal signals to the speaker, which allow him to understand that you are engaged in the conversation.
3. Use receptive language when listening; for example, use phrases such as “yes” and “uh huh.”
4. Finally, concentrate on what the speaker is saying. Listen to their point of view, and do not mentally argue with the speaker.

The benefits of listening effectively are far reaching to the manager. This skill can foster trust, reduce conflict, and increase the level of
commitment among followers.
1.3.6 Essential Listening Skills
1. Avoid doing other activities such as doodling.
2. Ensure that you give other party your full attention.
3. Look at the speaker directly, which helps in understanding their body language.
4. Ask open-ended questions, encouraging them to speak.
5. Nodding, paraphrasing (repeating what they have said in your own words) show that you are genuinely listening

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1.3.6 Essential Listening Skills

6. Use phrases like — “I’d feel the same way if I were in your position …” which shows that you are acknowledging their feelings
7. Ask for clarification, when you do not understand
8. Try to understand their viewpoint and not judge, based on your own perceptions
9. Give them time to express their point of view and without interrupting—letting them finish before you react.
10. Don’t express your opinion if it is not appropriate
11. React in a timely manner to the other party’s responses

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1.4 – Effective Communication as a Strategy to Achieve your Business Goals

Irrespective of how powerful, well charted and well thought-out your goals are, if they are not effectively communicated, they almost
assuredly will fail.
An organization can move forward only if the team knows in which direction they are headed. Communicating the goals effectively is the
only way to make the workforce work coherently and proficiently by eradicating confusion, streamlining efforts, and ensuring overall
inclusion right from the front-line workers to upper-level executives.

1.4.1 Know Your Audience

Customizing how and what you communicate based on your audience is an important part of effective communication. The way you
discuss your goals with your top leadership staff differs from the rest of your staff.

From the disclosure of privileged information to the nitty-gritty details, it is your job to understand who needs to know what.

The way you communicate during ongoing, in-person meetings with your leadership team to clearly outline the goal and aid in fine-tuning
your big picture ideas has to be entirely different when you communicate with the executing teams.

It is important that executing teams are included in the vision of the company’s future but everything from choice of words, medium, tone
and language should be according to the audience to make sure everyone understands his or her role in the company’s goals, it leads to
working more effectively to contribute to that end.

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1.4.2 Repeat and Remix

One can easily lose sight of big picture goals with different priorities across your business. Repeating your goals frequently can be helpful
for the goals to remain at the top of everyone’s to-do list. However, unchanged manner and medium leads to dullness, so it’s important to
mix it up. Learning styles differ greatly, so spreading the word both audibly and visually should prove fruitful.
Communicating your goals using a wide variety of channels and in different forms, will help reaching a wider audience. A formal memo
might work for some staff, while a concise tweet will for others can be a good mix. It is important to remember that as your goals progress
and change, your communication content and strategy must evolve with time and responsibility.

1.4.3 Top Down and Bottom Up

The communication strategy must include every employee, and the communication needs to flow in both directions: top–down and
bottom–up communication must be linked. Everyone likes to feel valued, right from the interns to the top management, and
understanding the all-encompassing goals of the organization inspires productive efforts. In addition, a clear understanding of the role
that they play in the bigger purpose can help bring a team together and achieve the desired outputs.
The progress on the goal might come to a crushing halt because if one channel of communication is not in accord with the other. The
importance, of the role that communication plays in setting and achieving goals is crucial. However, “communication” is much more than a
mass email or the monthly corporate newsletter. One must strategize and experiment to identify the most effective communication plan
for the organization.
This will ensure that the team is working in unison and everything is moving in the right direction.

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1.5 – Managing Breakdown in Communication

Have you ever worked for an organization wherein communication was not an issue and everything looked perfect? If yes, you’ve been a
part of an exception. Larger organizations in particular have always found it hard to deal with the challenges of communications.
For example, one study suggested that adding just one more member in a small team of four increased potential interactions from 44 to
100; and that adding one member to a seven member’s squad the total jumped from 490 to 1080.
Apart from face-to-face communication for conveying information, most companies invest in full-time communications professionals.
Consequently, such organizations constantly communicate with their people using a wide range of modes and media ranging from
newsletters and magazines, emails, town halls , and videos apart from traditional meetings. But communications are still a problem.

The greatest problem with communication is the assumption that it has taken place.”
George Bernard Shaw, Playwright

Everyone would agree that communications are important; then why do organizational communications continue to break down despite
all the investment and generally good intention?

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1.6 – Look at Three Common Traps

1. Lack of Context: We often receive a messages but do not know what is behind it or why it is important. Recently, the Leadership of
a large organisation decided to launch some very critical initiatives, and assigned project leaders from their areas. When it didn’t
seem to work, the CEO called all the project leaders only to discover that they lacked a common understanding of the initiatives: their
urgency, their impact on the overall business, and their interconnectedness. Without the right context, most project leaders were
treated this as just another assignment.
2. Lack of Questions and Dialogue: During an “all-hands” meeting for a department of a major bank, departmental and corporate
leaders delivered well-prepared, useful presentations with slides, graphs, and videos etc. End of it, the departmental manager asked
if anyone had any questions none of the 150 people raised their hands. A week later, when asked for feedback about the meeting,
most agreed that it was “useful” but very few could remember any specific takeaways. Without questions, it is hard for the audience
to digest the content as only discussions, and communications don’t ensure that the content is absorbed.
3. Lack of Connection: The first stimulus that everyone uses to understand a message is: “What does it mean for me?” which can lead
to the message being interpreted differently depending on the person. For example, an executive visited a manufacturing plant to
render a “bad news” that the plant was going to be gradually shut down over the next few years. Surprisingly, some were happy that
they would get a payoff and retire early; most were indifferent as they did not think it would really happen; and most thought it was
too early to worry about. Same message but individual interpretations and the executive found himself unprepared for their reactions.
If you are a manager, major part of your job demands strengthening the communication to, from, and between your team members. You
need to take the time to provide context, encourage questions, and stay sufficiently connected to do this effectively. There is a lot more to
effective communication than just these factors, but for most managers, it is a good place to start.
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1.7 – Communication Failures in Business Communication

Effective communication is essential for any business. Almost all departmental functions like sales, HR and recruitment, marketing, rely
extensively on exchange of information, collaboration, and decision making.
Businesses constantly experience that flow of information is not always as smooth and seamless as it should be. Communication
breakdowns result in poor morale, strained relationships, missed opportunities and lost profits.

1.7.1 Some of the most Common Reasons of Failures in Workplace Communication

• Excessive Emailing: Even if companies have phone calls, text messages, chat services, and social networks to get in touch with
employees, most companies still use email as their primary method of communication. According to a research, an average person
receives 120 to 150 emails per day. The possibility of a person misplacing, deleting or not even reading a specific email is huge and
therefore one could miss vital information. Employees can become overwhelmed by the huge amount of information that they need to
process via their inboxes, especially when most of the information is full of confusing industry jargons.
• Limited or No Control over External Situations: In circumstances related to market or economy that affect your business, you need
to explain the situation to your employees, before they hear it from an external source. Jennifer Connelly, founder and CEO of public
relations firm JCPR, said that some businesses make the mistake of letting external sources control the message their workers and
stakeholders receive, instead of becoming a source of news for them. “When it comes to internal communication, I often see
businesses taking a laissez-faire, wait-and-see approach,” Connelly said. “This is a huge mistake, one that opens the door to
misinformation, rumour and innuendo—all of which pose significant harm to a brand. It is critical for companies to communicate
openly and freely, anticipating and answering questions before they are asked.”

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• Communicative Silos: Silos occur because of non-collaborative behaviours displayed by individuals or executive teams when they
focus only on their own goals, and without considering a fresh perspective on the “big picture.” which others could provide. This vastly
tends to happen in larger businesses, but it can happen at smaller businesses too.
• Lack of Communication: According to About.com survey in 2014, the top three reasons of dissatisfaction of employees with their
jobs are all communication-related:

• This raises a serious issue in communication strategies that the leaders are
adopting to circulate information.
• “Messages are sent and received whether or not companies choose to
communicate,” said Tim Eisenhauer, co-founder and president of enterprise
social network platform Axero. “Lack of communication can send a strong
message too.” It should come as no surprise, then, that employee
engagement can take a serious hit if you are not regularly checking in with
your staff.
• It is often assumed that employees know what is going on or, they can figure
it out by themselves while mostly, this does not hold true. Given the fact that
smallest and medium-sized businesses do not have a dedicated human
resources department, employee communications and engagement issues
lay at the bottom of the priority list.

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1.8 – Managing Communication Breakdown

To avoid the reasons for communication failures, you probably need to review and fix the way information is being shared and discussed.
Following steps should be considered to get your business communications going in the right direction again.
• Reduce Internal Emails: Try to minimize the number of internal emails being shared as E-mails often go unnoticed when there are
too many of them. Chained conversations over emails should be avoided at all costs.
• Use Alternate Means of Communication: Apart from phone and email, it is important to adopt information-sharing tools on corporate
social intranet platforms such as built-in chat functions, company updates, notifications and posting capabilities, which need to be
integrated into your daily routine to help improve internal communication.
Using social networks like Facebook and LinkedIn including mobile apps and video conferencing for communicating with employees is
also a good idea. This helps you adapt to various work styles and keeps everyone involved, whether in the office, on the road, or
working from home.
• Encourage Regular Communication: Relying on technology to improve your internal communications is not enough. To lead by
example and encourage employees to open up, both with leadership and with each other is the need of the hour. Maintaining open
dialogue with teams, sharing as much information as possible and encouraging employees to raise their concerns or questions will
lead to a trusted, engaged, and dedicated workforce.
As a leader, your availability for conversations and encouraging questions is ideal. Effective communication through such behaviour
sets it right for the entire organization, where employees do not hesitate before reaching out to each other and higher authorities.

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1.9 – Summary
Here are the key points what we learnt in this unit.
• Business communication is the sharing of information between people within an enterprise that is performed for the commercial
benefit of the organization.
• Business communication can be thought of as a problem-solving activity.
• There are basically two forms of communication, business-to-business and business-to- employees.
• Effective communication occurs when a complete message is sent and entirely received and understood by an audience.
• The 7Cs for effective business communication are Clarity, Completeness, Conciseness, Consideration, Correctness, Concreteness
and Courtesy.
• The three stages of effective communication are:
• Prepare the content
• Focus on solutions while delivering the message
• Provide opportunity to receiver to respond
• Listening skill ensures complete understanding of the response to your point of view and pave way to building strong relationships. A
good listener fully understands and constructively responds to what the other party is communicating.
• Some of the most common reasons of failures in workplace communication are Excessive Emailing, Limited or No Control over
External Situations, Communicative Silos and Lack of Communication.
• You can manage breakdown in communication by reducing internal emails, using alternate means of communication and encouraging
regular communication.
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1.10 – Reference and Further Readings

http://www.articlesbase.com/business-articles/importance-of-communication-in-an- organization-97064.html

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