Meaning
Business Communication isthe process of exchanging information, ideas, and messages
between individuals or groups within and outside an organization to achieve specific business
objectives. It serves as the backbone of any organization by ensuring the effective flow of
information, which is critical for decision-making, collaboration, and overall success.
Definition of Business Communication
Business communication can be defined as: "The sharing of information between people within
and outside a company to ensure its commercial success and smooth functioning."
Facilitates Decision-Making: Provides relevant and timely information to aid
management decisions.
Enhances Coordination: Ensures alignment of goals and activities across
departments.
Strengthens Relationships: Builds trust and understanding with internal and external
stakeholders.
Increases Efficiency: Streamlines operations by reducing errors and
misunderstandings.
Promotes Brand Image: Effective communication reflects professionalism and
enhances reputation.
Meaning of communication
communication refers to the process of exchanging information, ideas, thoughts, feelings, or
messages between individuals or groups. Communication can take many forms, such as verbal
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(spoken or written),nonverbal (body language, gestures, facial expressions), visual (images,
symbols, charts), or digital (emails, social media, texts).
Definition of Communication
Communication is the sum of all things, a person does when he wants to create an
understanding in the minds of another. It involves a systematic and continuous process of
telling, listening and understanding” – Louis Allen
“Communication is a process by which people create and share information with one another
in order to reach common understanding” – Rogers
Nature of Business Communications
1. Formal and Professional
Business communication typically follows a formal and professional tone. This helps ensure
clarity and prevents misunderstandings. It is structured, often following specific protocols,
formats, and standards, especially in written communication (e.g., emails, memos, reports).
2. Goal-Oriented
The primary purpose of business communication is to achieve specific business goals, such as
informing, instructing, persuading, or reporting. It is outcome-focused, ensuring that the
message serves the purpose of solving a problem, advancing a decision, or facilitating
collaboration.
3. Clear and Concise
Effective business communication is direct, to the point, and easy to understand. It avoids
unnecessary jargon or ambiguity. The clarity of a message ensures that the receiver
understands it correctly and responds appropriately.
4. Two-Way Process
Communication in business is typically interactive, with both the sender and receiver
involved in the process. Feedback is an essential part of business communication, as it helps
assess the effectiveness of the message and encourages dialogue or adjustment as needed.
5. Formal Channels
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Business communication followsformal channels, including emails, meetings, reports,
presentations, telephone calls, and corporate memos. These channels ensure messages are
communicated within the proper context and to the right audience.
6. Internal and External
Internal communication occurs within the organization, such as between departments, teams, or
employees. It can include memos, team meetings, and internal reports. External
communication involves messages exchanged between the organization and outsiders, such
as customers, suppliers, investors, and the media.
7. Written and Oral
Written communication is often preferred for formal and recordable purposes (e.g., contracts,
emails, reports). Oral communication is more immediate and is often used for meetings,
presentations, and phone calls. It allows for direct interaction and the opportunity for
immediate feedback.
8. Multidimensional
Business communication is not only about exchanging verbal or written messages; it also
involves nonverbal communication, including body language, gestures, facial expressions,
and even tone of voice.These nonverbal cues are particularly important in face-to-face or
video communications.
9. Persuasive
Business communication often aims to persuade or influence others, such as convincing a
customer to purchase a product, motivating employees, or persuading investors. It involves
presenting compelling arguments and data to support a particular viewpoint or decision.
10. Continuous
Communication in business is a continuous process. It is vital at every stage of business
operations, from planning and decision-making to execution and evaluation. Regular
communication fosters cooperation and coordination among different business units and
external stakeholders.
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Objectives of BusinessCommunication
1. To convey clear messages: The primary objective of business communication is to
ensure that the message is conveyed clearly and accurately. The message should be
concise and easy to understand.
2. To foster relationships: Business communication is also used to build relationships
between people in the organization. It can help to foster trust and understanding
between colleagues and help to build strong working relationships.
3. To promote understanding: Business communication can help to promote
understanding between different departments and individuals in the organization. It
can help to ensure that everyone is on the same page and that everyone understands
the goals and objectives of the organization.
4. To motivate employees: Business communication can be used to motivate employees
by providing them with feedback and recognition. It can also be used to provide
employees with information about new projects and initiatives.
5. To inform and educate: Business communication can be used to inform and educate
employees about new policies, procedures and changes in the organization. It can also
be used to provide employees with training and development opportunities.
6. To facilitate decision making: Business communication can be used to facilitate
decision making. It can be used to provide information and data to help make
informed decisions.
7. To increase productivity: Business communication can help to increase productivity
by providing employees with clear instructions and expectations. It can also be used
to provide feedback and recognition to employees to help motivate them to work
harder.
8. To resolve conflicts: Business communication can be used to resolve conflicts
between employees. It can be used to provide information and data to help resolve
disputes and disagreements.
9. To create a positive work environment: Business communication can help to create
a positive work environment by providing employees with a sense of belonging and
purpose. It can also be used to foster collaboration and teamwork.
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10. To increaseefficiency: Business communication can help to increase efficiency by
providing employees with clear instructions and expectations. It can also be used to
provide feedback and recognition to employees to help motivate them to work
smarter.
Elements /process /steps involved in communication
1. Sender
The person who conveys his thoughts, message or ideas to the receiver is known as the sender.
He is at the starting point of the communication system and represents the source of
communication. E.g., In a classroom, a teacher is a sender.
2. Message
The subject matter of communication is termed as messages. It includes ideas, feelings,
suggestions, order, etc., which a sender wants to convey to the receiver.
3. Encoding
The process of converting messages into communication symbols, which may be understood by
the receiver. It includes words, pictures, gestures, symbols, etc. Encoding translates the
internal thought of the sender into a language which can be understandable.
4. Media
The path, channel or medium through which encoded message is transmitted to the receiver is
known as media. It is the carrier of the message. It can be in written form, face to face,
through telephone, letter, internet, etc.
5. Decoding
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The process oftranslating the encoded message into an effective language, which can be
understood by the receiver is known as decoding. In this, the encoded symbols of the sender
are converted.
6. Receiver
The person who receives the message of the sender is known as the receiver. E.g., Students are
receivers in the classroom.
7. Feedback
In order to complete the process of communication, feedback is essential. The process of
reversal of communication in which the receiver expresses his reaction to the sender of the
message is known as feedback. Feedback ensures that the receiver has received and
understood the message.
8. Noise
Any construction or hindrance which hampers the communication process is known as noise.
The hindrance may be caused to the sender, message or receiver. It acts as a barrier to
effective
communication and because of this message is interpreted differently by the receiver.
Barriers to communication
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Barriers to communicationare obstacles that prevent the effective exchange of information
between individuals or groups. These barriers can distort the intended message and lead to
misunderstandings, confusion, or ineffective communication. They can occur at any stage of
the communication process, including encoding, transmission, reception, and decoding of the
message.
Types of Communication Barriers:
Mechanical barriers in communication refer to obstacles that arise due to technical
issues, equipment failure, or problems with the medium through which
communication occurs. These barriers hinder the smooth exchange of messages and
can cause misunderstandings or delays in communication. Problems with
communication technologies like email, phone lines, or video conferencing platforms
can disrupt the flow of information.
Physical Barriers: Noise, poor acoustics, or physical distance can hinder the clarity
of communication. For instance, background noise in a busy office or a poor phone
connection can distort the message.
Psychological Barriers: Different people perceive information differently, which can
lead to misunderstandings. Prejudices, biases, or assumptions can affect how
messages are interpreted. Strong emotions such as anger, frustration, or anxiety can
cloud judgment and affect how the message is sent, received, or understood.
Language Barriers and Semantic Barriers: Specialized language or terms may not
be understood by people outside a particular field, causing confusion. The use of
ambiguous, vague, or overly technical words can lead to confusion. Words might
have different meanings for different people.
Organizational Barriers: In rigid hierarchical organizations, communication may be
hindered by strict lines of authority, which can prevent open communication between
different levels. Without clear communication protocols, messages may get lost or
misinterpreted, especially in large organizations.
Cross-cultural barriers: In cross-cultural communication, different languages,
dialects, and cultural norms can result in misunderstandings. Idioms or phrases in one
culture might be offensive or meaningless in another.
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Interpersonal barriersin communication refer to obstacles that arise due to personal
factors or dynamics between individuals that hinder the effective exchange of
information. These barriers can impact the clarity, understanding, and flow of
messages, leading to misunderstandings, conflicts, or breakdowns in communication.
Principles of effective communication
1. Conciseness
Concise communication is the ability to convey a message in a few words while still being clear
and comprehensive. It involves using simple, direct language, and avoiding unnecessary
words, jargon, or filler words. Concise communication is more comprehensible for the
audience, saves time, and is non-repetitive.
2. Correctness
Correctness means the accuracy of thoughts, figures, and words. If the given information is not
correctly conveyed, the sender will lose reliability. While communicating we should be
careful about the correct use of grammar, message composition and appropriate words.
Successful communication depends on the correct use of language & grammar.
3. Concreteness
While communicating one should be very specific. Concreteness is an important aspect of
effective communication. It is about being specific and definite rather than general.
4. Clarity
Clarity is one of the principles of formal communication. Whatever we speak/communicate
should have clarity. The idea of the message should be very clear in the mind of the sender.
The sender must be careful about the clarity of thought and objective of communication.
5. Completeness
Effective communication depends on the completeness of the message. Incomplete messages
create ambiguity in the audience. A complete message brings the desired results without any
expense or additional information. Therefore, each and every message which is sent by the
sender should be complete.
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6. Consideration
It isan act of consideration. While sending a message the sender should look from the angle
of the audience. The sender should understand the feelings and emotions of the receivers. It
shows that in communication we should consider the audience.
7. Courtesy
Courtesy means polite behavior. While communicating everybody should show politeness
towards others. It facilitates communication. The polite messages help to strengthen
relationships and to create goodwill, which helps in expanding the business.
Types of communication
Verbal Communication
Verbal communication is the exchange of information, ideas, and messages through spoken
or written words. It is one of the most common and direct forms of communication, enabling
clear expression of thoughts and emotions. It can be either oral communication or written
communication.
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Non-Verbal Communication
Non-verbal communicationis those communications where the sending or receiving of
messages are done through wordless messages. It means that communication is established
other than oral and written. It is all about the body language of the speaker and does not make
use of words. There are many distinct areas involved in this type of communication.
Proxemics is the study of how physical space and distance are used in communication.
Intimate Space (0 to 1.5 feet): Reserved for close relationships such as family and
close friends.
Personal Space (1.5 to 4 feet): Used for conversations with friends or colleagues.
Social Space (4 to 12 feet): Common in formal or professional settings.
Public Space (12+ feet): For public speaking or addressing a larger audience.
Kinesics: The word kinesics comes from the root word kinesis, which means
"movement," and refers to the study of hand, arm, body, and face movements. the use
of gestures, head movements and posture, eye contact, and facial expressions
all are kinesics.
Paralanguage refers to the non-verbal elements of speech that accompany spoken
language and convey meaning, emotion, or emphasis. It includes vocal qualities,
sounds, and non-lexical cues that provide context to the words being spoken
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Formal Communication
Formal communicationrefers to the exchange of information in a structured and official manner,
typically within an organization or between individuals in professional settings. It follows
specific channels, rules, and formats, ensuring clarity, accountability, and professionalism.
This type of communication is often written, though it can also be verbal.
Informal communication / Grapevine communication
Informal communication refers to the exchange of information that occurs outside of official or
prescribed channels, typically in a casual, unstructured manner. It is often spontaneous and
not bound by formal rules or protocols, allowing for a more relaxed flow of information.
Dimensions Of Communication
Downward communication
Upward communication
Horizontal communication
Diagonal or Cross-wise communication
Downward communication refers to the flow of information from higher levels of an
organizational hierarchy to lower levels. It is a critical part of formal communication in
organizations, ensuring that instructions, policies, feedback, and decisions are conveyed from
managers or leaders to subordinates. This type of communication helps employees understand
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their roles, expectations,and the organization's goals, as well as how their work contributes to
the overall success of the organization.
Upward communication refers to the flow of information from lower levels of an
organization to higher levels. This type of communication allows employees or subordinates
to share feedback, reports, suggestions, concerns, and ideas with their superiors. Upward
communication is essential for maintaining a healthy organizational environment, as it helps
management understand employee needs, address issues, and make informed decisions.
Horizontal communication, also known as lateral communication, refers to the exchange
of information between individuals or groups at the same level within an organization. Unlike
upward or downward communication, which flows between different hierarchical levels,
horizontal communication happens between peers or colleagues across departments or teams.
This type of communication is essential for coordination, collaboration, and problem-solving
among employees who share similar responsibilities or goals.
Diagonal communication refers to the exchange of information between individuals or
groups at different levels and in different departments within an organization. Unlike upward
or downward communication, which flows within the same department or between
hierarchical levels, diagonal communication cuts across both hierarchy and functional areas.
This type of communication helps bridge gaps between departments, improving efficiency
and enhancing collaboration.