Effective Business Communication

Principles of Effective
Communication

 Communication is a two way process of
exchanging ideas and information.
 1. b. What is the significance of
communication in the present day business
environment?
 Answer - Good communication matters
because business organizations are made up
of people. As Robert Kent, former dean of
Harvard Business School has said, “In
business, communication is everything.”

 Research spanning several decades has
consistently ranked communication skills as
crucial for managers. Typically, managers
spend 75 to 80 percent of their time engaged
in some form of written or oral
communication. Although often termed a
“soft” skill, communication in a business
organization provides the critical link between
core functions.

 Flatter organizations, a more diverse employee
base and greater use of teams have all made
communication essential to organizational
success. Flatter organizations mean managers
must communicate with many people over
whom they may have no formal control. Even
with their own employees, the days when a
manager can just order people around are
finished. The autocratic management model of
past generations is increasingly being replaced
by participatory management in which
communication is the key to build trust, promote
understanding and empower and motivate
others.

 Because today’s workforce is growing more
diverse, an organization can no longer
assume its employee constituencies are
homogeneous. Employees reflect differences
in age, ethnic heritage, race, physical abilities
and gender orientation. Diversity is not just a
matter of social responsibility; it is also an
economic issue. Companies are realizing the
advantage of making full use of the creativity,
talents, experiences and perspectives of a
diverse employee base.

 Teams are the modus operandi in the 21st
century workplace. In a recent survey of
Fortune 1000 companies, 83 percent
reported that their firms use teams; teams are
all about communication. The collaboration
that allows organizations to capitalize on the
creative potential of a diverse workforce
depends on communication.

List benefits of effective
business communication
The benefits include:
 Stronger decision making and faster problem
solving
 Earlier warning of potential problems
 Increased productivity and steadier workflow
 Stronger business relationships
 Clearer and more persuasive marketing messages
 Enhanced professional images for both employers
and companies
 Lower employee turnover and higher employee
satisfaction
 Better financial results and higher return for
investors

Characteristics of effective
business communication
 Provide Practical Information: Give recipient useful
information to help them perform a desired action or
understand a new policy of the company.
 Provide facts: Use concrete language, specific
detail, clear and ethical information.
 Provide concise information: Highlight the important
information instead of overloading the recipient with
information. Clarify and summarize effectively.
 Clarify expectations and responsibilities: State
clearly what you want from your audiences.
 Offer persuasive messages: Show how readers can
benefit from your message the way they want to.

Communication Skills for Job
Seekers
 Organizing ideas and information logically and completely
 Expressing ideas and information coherently and
persuasively
 Listening to others effectively
 Communicating effectively with people from diverse
backgrounds and experiences
 Using communication technologies effectively and
efficiently
 Following accepted standards of grammar, spelling and
other aspects of high-quality writing and speaking
 Communicating in a civilized manner that reflects
contemporary expectations of business etiquette
 Communicating ethically

Throughout the internal formal network, information flows in
three directions: downward, upward and horizontal. It helps
increase job satisfaction, safety, productivity, and profits
and decreases absenteeism, grievances, and turnover.
 Downward Communication – instructions are given to
subordinates through this channel.
 Upward Communication – this helps management obtain
feedback from employees on results achieved and
problems encountered.
 Horizontal Communication – it is communication between
people or groups at the same level. It helps in task co-
ordination, problem solving, information sharing and
conflict resolution.

Informal Communication
Informal channels of communication include
grapevine, rumour and gossip. These are
referred to as informal and are likely to flourish
when down ward communication is not proper or
when there are communication gaps. Uncertain
situation, animosity and new information give
rise to this channel of communication. Smart
managers know that a particularly active
grapevine is a sign that formal communication
network is not providing the information
employees believe they need.

External Communication
External communication flows into and out of
the organization by both formal and informal
means. Effective communication to people
outside the organization can help create a
good reputation and have a positive impact
on its ultimate success.

Components of communication
Process of communication
Communication cycle (Murphy P 11 to 14)
 Context: A broad field that includes country, culture,
organization, internal/external stimuli
 Sender-encoder: The sender of information who
seeks the desired response from the receiver
 Message: Core idea you wish to communicate
 Medium: Printed word, electronic mail or sound
 Receiver-decoder: A person who receives
information
 Feedback: Refers to response or reaction of the
receiver to a particular communication

Problems of Communication M-15-21
(Distortion, Noise, Redundancy) PBP 12-13
Distortion: When meaning of communication is
lost while handling it or when the
language is not properly understood by the
receiver, it is called distortion
Conventions of Meaning: Miscommunicated
instructions (bi-monthly), denotation,
connotation
Perception of reality: Abstracting, Slanted statements
(not factual, reveal bias)
Values, attitudes and opinions
-favorable info, incomplete info, closed minds,
sender’s credibility

Noise: Distraction in environment in which
communication takes place
Physical Noise: noisy fan, cooler, loud music
Technical Noise: weak signal, phone line
Social Noise: interference due to difference in
personality, culture, education
Psychological Noise: emotions, prejudice
Redundancy: Using more than one channel of
communication. Phone, meeting, verbal instructions

Effective Business Communication

Perception
 As each human mind is a unique filter,
therefore each one of us has his own ‘world’,
his own way of looking at and understanding
the environment and people within it.

 Internal factors:
 Sensory limits – Human sensory systems
have limits – we cannot see for miles or hear
distant sounds. As unique filters we also
differ in terms of the amount of sensory
information we need to reach our own
comfortable equilibrium. At a party some may
term music as loud whereas others may treat
it as a part of the total enjoyment.
 Psychological factors – such as personality,
learning and motives will also affect what is
perceived.

 Language – we can label and distinguish our
environment with our language which also
determines our thinking pattern. A person
intending to have a house built may not be
familiar with the terminology used by
architects and builders for example, trusses,
dowels, parapet etc.
 Cultural differences – the way things are
done in one place may altogether differ from
the way things are done elsewhere.

 Intensity – the more intense the external
stimulus, the more likely it is to be perceived.
Loud noise, strong odor and bright light will
get noticed.
 Size – the larger the object, the more likely it
will be perceived. A huge bill board will get
attention more than an A-4 size page posted
on the wall.
 Contrast – the external stimuli that stand out
against the background will be noticed. Black
lettering on a yellow plate will get noticed.

 Repetition – the repeated external stimulus is
more attention getting than a single one.
Over and over again instructions given to
workforce is an example.
 Motion – moving objects are more noticeable
than stationary ones. LCD screens used by
advertisers are more attention catching than
ordinary boards.
 Novelty or familiarity – new objects or familiar
ones are attention gainers. A new car model
is quickly noticed by commuters. Similarly a
person may quickly recognize the model of a
car he owns.

Feedback
 It is the reaction of the receiver which
indicates successful (or unsuccessful)
receipt, understanding and interpretation of
message by the intended recipient.

Importance
 Feedback is of vital importance in
communication. It helps the sender make
sure that:
 The message has been received by the
intended recipient and not lost or ignored.
 The message has been correctly understood
and interpreted by the recipient i.e. in the
same form and context in which it is sent
 The message has achieved it’s purpose

Characteristics of effective
feedback
 It is timely, a feedback given too late may no
longer be useful for the sender
 It is appropriate and user targeted i.e. it suits
the specific needs of the sender of the
message e.g. providing only requested
information.
 It is clear and not prone to misinterpretation
e.g. does not signify dual meaning

 It does not represent bias on the part of the
person initiating it
 It appears to be from the intended recipient of
the original message
 It provides some new information, receipt of
information already known may lead to
frustration

Types of feedback
Motivational Feedback:
 It is used to reward and support positive behavior e.g.
your employee performs good and to motivate him you
appreciate his work, this is motivational feedback.
Developmental Feedback:
 It is given when a particular area of performance needs
to be improved e.g highlighting the areas of your
subordinates performance which needs improvement.

Types of feedback
Constructive feedback:
 It is given so that to encourage the development of the
individual towards which it is directed.
Intrinsic feedback:
 It is feedback from one’s own self e.g. a person engaged
in thinking and pondering over ideas, evaluating options
and assessing their outcomes.
Extrinsic feedback:
 It is feedback which a person receives from others e.g.
customer’s response to a payment request.

 Some other common types of feedback
include:
 Negative feedback
 Positive feedback
 Immediate feedback
 Delayed feedback

Effective Listening (M 399-403)
PBP 25, 33-35)
 Generally a neglected skill. No formal training
at school or college level like speaking and
writing
 Considered an important skill in the business
context in particular

Faults in listening
 Poor listening habits
 Studies agree – listening efficiency no better than 25
to 30 %
 Prejudice against the speaker
 External distractions (physical)
 Thinking speed (speaking 80-160, thinking 400-800)
 Pre-mature evaluation
 Semantic stereotyping (we know what the speaker is
going to say)
 Monotone of the speaker

Basic principles of effective
listening
 Aim – look for key words, signals or ideas
 Activity – take interest, think about questions
 Alertness – focus on what is being said
instead of what the speaker has said earlier
or is going to say next
 Accuracy – No premature evaluation

Types of listening
 Listening for contents
 Critical listening
 Empathetic listening

How receptivity of a message
can be enhanced? (P-5)
 Under ordinary circumstances no surety of
communication received or otherwise
 Receptivity of audience to be taken into account.
Can be enhanced:
 Share common vision
 Message related to needs
 Message confirm our ideas, beliefs
 Accessible and understandable
 Source of the information
 Message is challenging, information interesting

Effective Business Communication

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