BUSINESS

COMMUNICATION.
BY MS HAFSA FAROOQ.
BUSINESS COMMUNICATION.
INTRODUCTION.
DEFINITIONS.
IMPORTANCE.
COMMUNICATION SKILLS.
FUNCTIONS OF BUSINESS
COMMUNICATION.
INTRODUCTION:
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.’
DIFFERENT SCHOLARS
HAVE GIVEN DIFFERENT
DEFINITIONS OF BUSINESS
COMMUNICATION.
DEFINITIONS:

“ A system that is responsible to affect change throughout

the whole organization.”

OR

“Business Communication is exchanging business-related

different views, ideas, and news within the related parties.”

OR

“When the communication occurs between either two or

more than two business people for the purpose of effective
organization and administration of business then it is
considered as Business Communication.”
IMPORTANCE:LIFE
BLOOD OF AN
ORGANIZATION.
Communication plays a crucial role in the functioning of
organizations. In fact, what an organization requires mainly is
communication. It is an inseparable, essential and continuous
process just like the circulatory system in the human body. As a
result, communication effectiveness becomes a very vital factor in
determining the efficiency with which an organization performs as a
whole. The existence of an organization depends upon a number of
things like unity of command, delegation of authority and
responsibility, teamwork and leadership, each one of which entails a
strong support of interpersonal communication. Interpersonal
communication, therefore, becomes the lifeblood of an organization.
IMPORTANCE OF
BUSINESS
COMMUNICATION:
Importance of business communication in an organization
can be seen as:
1. 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, the scope of
doing mistakes or errors during their work minimizes due to
effective communication.
2. Helps in increasing customers:
Customers are an important part of any business and
effective business communication can facilitate in attracting
new customers and retain the current customers. A well-
defined marketing strategy and public relations campaign
run by an organization generates the interest of customers
in its goods or services and helps in building the corporate
image in customers.
3. 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.

4. 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 the
performance of the sales team, market acceptance of the
product, fast delivery of products in the market, etc.
 .
6. Preparation of plans and policies:
Through effective business communication, organizations
can make their plans and policies properly. Relevant
information is required for preparing these plans and
policies. Through communication, different managers
source information through reliable channels.

7. Execution or implementation of plans and

policies:
To implement or execute the prepared policies and plans in
a timely manner, managers are supposed to communicate
these throughout the organization. Through effective
communication, they are able to disseminate plans and
policies to the internal and external stakeholders.

8. Boost the efficiency of employees: Effective

business communication plays a key role in increasing the
efficiency of staff. Through communication, different plans
and policies, critical issues, goals of an organization, etc.
9. Goals achievement:
Through effective business communication employees
become attentive and productive in doing their jobs
that result in the timely accomplishment of their tasks
and easy goals attainment.

10. Helps in solving problems or issues:

Through different communication channels, managers
get information about different routine and non-
routine issues and based upon that they can take
required actions to sort out those issues.

11. 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.
12. Improves worker-management industrial
relations:
In the workplace, workers and management have an
industrial relation. The success of any business depends
upon the healthy industrial relation. Business
communication plays a significant role in maintaining
harmony in this.
13. Helps in brand and product/service promotions:
In today’s competitive business environment, lots of
companies offer similar kinds of products or services. To
sell their products in a good manner, businesses need
better communication to promote products and services
in an effective way.
14. Reduces chances of conflicts:
Through effective communication different business
parties can exchange information in a smooth way. This
results in fewer conflicts, controversies, arguments
between them.
15. Increases employee satisfaction level:
Effective communication which is fair and smooth
creates better mutual bonding and the
understanding between employees and
management. This helps in increasing the
satisfaction level among employees who put their
maximum efforts to achieve the goals.

16. Increases employee loyalty:

Through effective business communication,
employees are well informed about their
performance from time to time. Also, employees get
appreciation, rewards in both monetary and non-
monetary terms for their better performance. This
enhances their loyalty towards the organization.
17. 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.
18. Proper functioning of different departments:
If information is shared smoothly and effectively in inter-
departments and intra-departments then different
departments of any business like accounts, finance,
purchase, operations, HR, IT, and production, etc. can do
their tasks more accurately and timely.
COMMUNICATION SKILLS:
When two people get together
communication skills are required.
Professors,leaders,doctors,politicians,teac
hers,singers,professionals,religious
leaders, all require effective
communication skills for success in their
career.
The following communication ability and
skills are required for success in business
career.
 Must be able to communicate effectively with all
levels of management.
 Must have substantial experience, training in oral
and written communication and demonstrate good
writing skills.
 Be able to prepare special analyses, research
reports, and proposals.
 Need ability to compose effective correspondence.
 Must have ability to communicate and sell ideas,
firms, and products.
 Must be able to cultivate and maintain good
customer relations.
 Need skills in gathering, analyzing, and
interpreting data and in writing analytical reports.
FUNCTIONS OF BUSINESS
COMMUNICATION:
The communication involves a mutual exchange
of understanding. It is the basic functions of
business
management. The function of communication
includes staffing, directing, planning, organizing
and controlling.
Communication is necessary for the effective
functioning of both internal and external
activities of the organization.
1. Information function:
The basic requirement of adjusting oneself to the
environment is the information. There must be some
information about what is going on in the
environment which concerns the people. The direct
or indirect receiving or giving of information
underlines all communication functions.

2. Command or instructive function:

The command or instructive function is the purpose
of informing their subordinates about what to do,
how to do and when to do. The command and
instructive functions of communication are more
effective and observable in formal organizations
than in informal organizations.
3. Interaction function:
Communication is essential for employees who work
together on a project during the training process.
Communication helps the employees to interact with
the customers and each other. Interaction is
necessary for all the employees. A customer service
department communicates with customers to help
them resolve issues. In the past, a business letter
can be used to introduce a company to a potential
customer.

4. Influence or persuasive function:

The purpose of communication is to influence people
and lead them in the desirable direction. The
persuasive function of communication helps to direct
and motive the employees in their respective field .
5. Integrative function:
A major function of communication is to integrate any
disintegration at the interpersonal and at the
organizational level. This helps in maintaining
individual, societal and organizational stability. It also
helps to establish identity of the organization.

6. Motivational function:
Managers use communication to motivate workers
and to achieve peak performance. The
communication can help
companies to reach the specific objectives, by
clarifying the expectations of employees and
providing incentives for
meeting and exceeding expectations.
7. Control function:
A company uses communication as a method to maintain
control over employees and their work environment. The
policies and procedures of human resources indicate how
employees are allowed to act in the workplace. The
parameters of an employee's job functions are outlined by
job descriptions. Performance reviews control whether an
employee receives a raise or attains a promotion.

8. Providing feedback:
Communication allows the employees, managers, and
business owners to give and receive feedback on the
changes that are being considered. For example, if a small
business owner is considering a purchase of new
computer system, he may first consult with his employees.
They determine what features the system should include
and what help they may need in learning the system.