Business communication

By Gayatri Padegaonkar

BUSINESS COMMUNICATION

MEANING OF COMMUNICATION

 The term ‘communication’ is derived from
the Latin word ‘communis’ which means
common.

 Communication stands for sharing of
ideas in common.

 Communication of ideas establishes a
common ground for understanding

DEFINITIONS OF COMMUNICATION

• Communication is the process of
passing information & understanding
THEO from one person to another.
• It is the process of imparting ideas &
HAIMANN making oneself understood by others.

AMERICAN
• Communication is any behaviour that
MARKETING results in an exchange of meaning.
ASSOCIATION

THREE ASPECTS OF COMMUNICATION

Subject Matter
( Order( Sender Element of
Information, Id &Receiver ) Understanding
eas & feeling)

OBJECTIVES OF COMMUNICATION

 INFORMATION  EDUCATION

 ADVICE  WARNING

 ORDER  RAISING MORALE

 SUGGESTION  MOTIVATION

 PERSUASION

IMPORTANCE OF COMMUNICATION

PROPER BETTER
PLANNING ADMINISTRATION

BETTER MUTUAL TRUST &
COORDINATION CONFIDENCE

IMPORTANCE OF COMMUNICATION
Contd…

Building Binding
Morale Force

Basis for
Decision Motivation
Making

Smooth Business
Functioning & Maximum Productivity
Establishing Better with minimum cost
labour Relations

Imp. Of
Buss.Comm.

Need for Competitive Improving Business
Information & System & Moulding
Democratic Functioning Attitudes

COMMUNICATION PROCESS

FEEDBACK
SENDER

RECEIVER-
MESSAGE
DECODING

CHANNEL ENCODING

MODELS OF COMMUNICATION

LINEAR MODEL
• Aristotle’s Model, Mathematical
Model, David Berlo’s & Harold’s Model

INTERPERSONAL MODEL
• Two-way Communication or
Interactional Model

Aristotle

Mathematical
LINEAR David
MODEL

Harold

ARISTOTLE MODEL OF
COMMUNICATION
 He developed the first communication
model.

 It was easy, simple & elementary model of
the communication.

 SPEAKER
As per him, there are 3 mainAUDIENCE in
SPEECH ingredients
any communication event :--

MATHEMATICAL MODEL OF
COMMUNICATION
 It was developed by C.E. Shannon & W. Weaver in
1949.
 They considered the theory as strictly
mathematical & identified the technical aspects of
communication.
 According to them, there are 5 basic elements in any
communication :--
 Information
 Transmitter
 Channel
 Receiver
 Destination

DAVID K. BERLO’s MODEL OF
COMMUNICATION
 His theory is one of the basic theories for all
communication theorists. The following nine components
are included in his model :-
 Source
 Encoder
 Message
 Channel
 Receiver
 Decoder
 Meaning
 Feedback
 Noise

HAROLD’s MODEL OF COMMUNICATION

 It gives rise to five basic & important
questions :--
WHY? WHAT?

HOW? WHO?

WHEN?

INTERPERSONAL MODEL OF

COMMUNICATION
Also known as “circular” or “cyclical” model. It introduces the
element of feedback which was absent in the linear models.

 Following are the elements under the interpersonal model :--

 Message or Idea
 Sender or transmitter or communicator
 Encoding
 Channel
 Medium
 Receiver
 Decoding
 Action or behaviour change
 Feedback

COMMUNICATION PROCESS MODEL

ENCODING CHANNEL DECODING

IDEA
IDEA RECEIVED
MESSAGE ( Receiver
( Sender ) MESSAGE
)

FEEDBACK

EFFECTIVENESS, LIMITATIONS & MEDIA

CHANNELS OF COMMUNICATION

CHANNELS OF COMMUNICATION

 A channel of communication is the path
through which information is transmitted
throughout the organization.
 Channels of communication are divided into
FORMAL
two types :---

INFORMAL

FORMAL COMMUNICATION
 It refers to official communication which takes place
following the chain of command.
 Formal channels include the paths of communication which
are institutionally determined by the organization
 Formal communication usually takes the form of written
communication such as notes, memos, letters, reports &
statements.
 Formal communication are of 4 types :-
 DOWNWARD
 UPWARD
 HORIZONTAL
 DIAGONAL

Formal Communication

President

Instructions and directives
Information

Vice Vice
President President

Manager Manager Manager Manager

Efforts at coordination

DOWNWARD COMMUNICATION

DOWNWARD MD DOWNWARD

DEPTT.
HEADS
OPERATIVE
EMPLOYEES

OBJECTIVES OF DOWNWARD
COMMUNICATION

POLICIES & JOB
FEEDBACK
PROCEDURES INSTRUCTIONS

JOB MOTIVATION &
RATIONALE TRAINING

UPWARD COMMUNICATION

MANAGING
UPWARD DIRECTOR

DEPTT. HEADS

OPERATIVE
EMPLOYEES

MODES OF UPWARD COMMUNICATION

SUGGESTIONS

QUESTIONNAIRES GRIEVANCES

OPEN DOOR
OMBUDSPERSON
POLICY

DOWNWARD v/s UPWARD
COMMUNICATION
DOWNWARD
COMMUNICATION UPWARD COMMUNICATION

 Represents flow of  Represents flow from
information from top level lower level to top level
to lower levels.
 Its purpose is to  Its purpose is to keep the
communicate policies, superiors informed about
procedures & orders to the the progress of work.
subordinates.
 It takes the form of written
 It takes the form of activity
& oral instructions, letters,
reports, suggestions etc.
co’s publications etc.

HORIZONTAL OR LATERAL
COMMUNICATION
 It refers to the transmission of information
among persons of the same level & status.
 It generally takes place among dept. heads for
achieving coordination in the enterprise.
 Objectives of lateral communication are :--
 COORDINATION
 SOLVING PROBLEMS
 RESOLVING CONFLICT
 EXCHANGING INFORMATION
 PROMOTING SOCIAL RELATIONS

HORIZONTAL COMMUNICATION

M.D.

Divisional Divisional
Manager Manager
( Steel ) ( Cement )

Production Marketing
Finance Head
Head Head

DIAGONAL COMMUNICATION

 It takes place b/w people who work in different
departments & at different levels within an
organization.

 It involves committees, teams or task forces
that are created to solve problems or complete
special projects

PROS & CONS OF FORMAL
COMMUNICATION
 Communication is  It is a slow moving
systematic . process
 Source of
communication can be  Personal warmth &
easily located. involvement may be
 Facilitate control lacking
 Easy fixation of  Accurate information
responsibilities. may not be
transmitted.

INFORMAL COMMUNICATION

 Communication b/w individuals & groups
which are not officially recognized is known
as informal communication.
 It consists of exchange of ideas & information
resulting from social interaction among
members of an organization.
 Also known as Grapevine Communication.

CHARACTERSITICS OF GRAPEVINE

Transmits It is unrestricted by
information laterally formal policies &
& diagonally procedures.

GRAPEVINE

It extends beyond the
It is selective
formal hierarchy.

TYPES OF GRAPEVINE NETWORKS

 SINGLE STRAND CHAIN ( Communication
through intervening persons in a strand )
 GOSSIP CHAIN ( One person non-selectively
communicates with everyone. )
 PROBABILITY ( Random communication
with others as per the probability law. )
 CLUSTER CHAIN ( Selective communication
with those trusted ones )

DIFFERENCE b/w FORMAL *
INFORMAL COMMUNICATION
FORMAL COMMUNICATION INFORMAL COMMUNICATION

 It follows the official chain  It is independent of the
of command. authority relations in the
organization.
 Carries messages at a fast
 Slow moving process speed.
 Easy to pinpoint the  May not be easy to fix
responsibility. responsibility.
 It is orderly & systematic.  It is unsystematic & erratic.
 Serves org. needs  Serves both org. & social
needs.

BARRIERS TO COMMUNICATION

SEMANTIC PERSONAL PSYCHOLOGICAL

TECHNOLOGICAL,
ORG. CULTURAL &
STRUCTURAL MECHANICAL
BARRIERS

Types of Barriers
 Physical Noise
 Technical Noise
 Psychological Noise
 Poor Timing
 Perceptual Bias
 Lack of Interest
 Psychological Bias
 Information Overload

Physical Noise
 Physical noise occurs when
the sender and receiver try to
communicate in a situation
that is noisy
 For example, the bus stop.
The noise produced by the
passing buses create what is
known as ‘physical noise’.

Technical Noise
 Technical noise occurs when the
sender and the receiver use a
tool to communicate for
example, a phone.
 When 2 people are
communicating using the
phone, and one person steps
into an elevator, the signal will
be lost and the communication
will fail. The break down with
the tool used to communicate is
known as ‘technical noise’.


Psychological Noise
Psychological noise occurs when the
receiver of the message is thinking of
something and not concentrating on
the message itself, for example,
having class in a park.
 While this may sound like a nice and
comfortable situation to be in the
message may be lost if the receiver of
the message is thinking about if the
grass is wet or if there are any harmful
bees around.
 As the receiver loses concentration on
what is being transmitted by the
sender, so we have ‘psychological
noise’.

Poor Timing
 Poor timing usually happens
when the sender is not aware
of the mood of the receiver
when sending the message.
 For example, approaching
your employer for a raise when
he/she has just made an
announcement that the
company is almost bankrupt.

Perceptual Bias
 Perceptual bias occurs when the sender is not aware
of the rules of first impression.
 For example, when you attend an interview there is
an appropriate dress code.
 Failure to follow that dress code may result in you
being prejudiced against. If you go for an interview
for an accounting position dressed in jeans and a t-
shirt, don’t be surprised if you don’t get the job.

Lack of Interest
 Sometimes, there are some
things that we are just not
interested in. Of all the subjects
that students learn to complete
their degree, they cannot love all.
 There will be the ONE or TWO
subject that we have to suffer to
stay awake for. A lack of interest
in what someone has to say will
definitely lead to a breakdown in
communication.

Psychological Bias
 Ever heard of prejudices?
Someone doesn’t like you
because you are
male/female,old/young, ric
h/poor.
 There are biases. A bias is
something that the sender
cannot fix. There is no
solution to this problem.
Just be prepared.

Information Overload
 Information overload occurs
when you try to absorb too
much information over a short
period of time.
 If you try to study continuously
for hours without a break, or
introduce too many new
concepts to your learning in
one period of time, your mind
will become confused and this
can lead to a break down in
communication.

7 Cs of Effective
Communication
 CLARITY  COMPLETENESS

 CREDIBILITY  CHANNEL

 CONTENT  CAPABILITY

 CONTEXT

PRINCIPLES OF EFFECTIVE
COMMUNICATION
 SPEEDY  ECONOMY
TRANSMISSION
 CLARITY OF  SECRECY
MESSAGE
 CREATION OF
 SAFETY
IMPRESSION
 CREATION OF
FEEDBACK  TWO-WAY TRAFFIC

 ACCURACY

Two-way channel Mutual Trust

Overcoming
Barriers

Timely Message Clarity of Message

Consistency of
Good Relations
Message

Overcoming
barriers

Empathetic Listening Feedback

Business communication

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