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Chapter One - Business Communication

The document provides an overview of communication, emphasizing its importance in building relationships and achieving organizational goals. It discusses the historical development, definitions, nature, and characteristics of communication, highlighting its dynamic, symbolic, and contextual aspects. Effective communication is portrayed as a vital skill for managers and a fundamental process for human interaction and understanding.

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0% found this document useful (0 votes)
45 views14 pages

Chapter One - Business Communication

The document provides an overview of communication, emphasizing its importance in building relationships and achieving organizational goals. It discusses the historical development, definitions, nature, and characteristics of communication, highlighting its dynamic, symbolic, and contextual aspects. Effective communication is portrayed as a vital skill for managers and a fundamental process for human interaction and understanding.

Uploaded by

Haile
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Communication – An Overview

Chapter One - Communication-An Overview

Introduction
In today’s fast paced, ever-changing business world, communication is a multidimensional skill
that one moment you may be speaking with peers who have a similar educational background
and cultural experience; and the next moment you may be conveying information to someone
from the other side of the world who just happens to be in the office next to you. Communication
is a broad topic that relates to developing relationships based on mutual benefits and built on
trust and respect. Communication skills play a major role in determining your success. You use
them every day to build effective business relationships. And the business world demands good
communication skills.
Possessing the necessary technical knowledge to perform a specific task/ job is a step in the right
direction, but it is not enough, you have to be able to communicate. If you communicate
effectively, you have an important and high valued skill. Communication competence is
important that managers should posses to achieve excellence in business. Without it
organizations cannot function. Organization is a group of people associated for such as business,
political, professional, religious, athletic, social or other purposes. Its activities require human
beings to interact, react or communicate. Effective communication is required inside and outside
of an organization; hence it is the lifeblood of an organization.
Communication is one of the most important skills managers need for effective accomplishment
of management functions. It is when managers effectively communicate with the external and
internal stakeholders that the organizations can achieve their objectives. Therefore, managers at
any level should know elements of communication, methods of communication, barriers of
communication & ways overcoming them. Communication is the means by which people are
linked together in an organization to achieve a common purpose.

Historical Development of Communication


At some stage, the signs and symbols created language. With the growth of business-industry
and commerce, ways of expressing ideas in languages developed. Gradually people were able to
shape their attitudes, norms, values, culture, religion, etc through communication. Science
entered the field and new forms of oral, written and audio visual communication developed.
Thus the development of communication is inseparable from the development of human
civilization. In the present day world of mass production, involving organizations with large
number of personnel with their social and cultural diversifications, and complex industrial
operations and influences, communication is of vital need at every step in industrial and
commercial activities.
Meaning of Communication
The word “communication” derived from the Latin word ‘communicare’ that means to impart,
to participate, to share or to make common. It is a process of exchange of facts, ideas, and
opinions and as a means that individual or organization share meaning and understanding with

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Communication – An Overview

one another. In other words, it is a transmission and interacting the facts, ideas, opinion, feeling
and attitudes.
It is the ability of mankind to communicate across barriers and beyond boundaries that has
ushered the progress of mankind. It is the ability of fostering speedy and effective
communication around the world that has shrunk the world and made ‘globalization’ a reality.
Communication had a vital role to play in ensuring that people belonging to a particular country
or a culture or linguistic group interact with and relate to people belonging to other countries or
culture or linguistic group. Communication adds meaning to human life. It helps to build
relationship and fosters love and understanding. It enriches our knowledge of the universe and
makes living worthwhile.
What is Communication?
You have been communicating all your life, but can you define communication? Some common
answers are:
 It is sending a message.
 It is getting your point across.
 It is sharing ideas and feelings.
When you communicate, you are sending a message; using your words and your listening skills
to build relationships. Communication is about building relationships. It builds relationship
through establishing trust, which developed over a period of time. It relates to the environment in
which it occurs. The environment is constantly changes, thus communication changes or evolves
overtime.
Definition of Communication
Communication has been defined in different ways by different writers or scholars. Some of
these are the following.
Communication is a two-way process of exchanging ideas or information between human
beings. (Murphly and Peck)
Communication is an intercourse by words, letters, symbols or messages and is a way that one
organization members share meanings and understandings with others. (Koontz and O’Donnell)
Communication is the sum of all things a person does when he wants to create understanding in
the mind of others. It involves systematic and continuous process of telling, listening and
understanding. (Louise Allen)
Communication is the process of conveying messages (facts, ideas, attitudes and opinions) from
one person to another so that they are understood. (M.W. Cumming)
Communication is an exchange of facts, ideas, opinions or emotions by two or more persons.
(Newman and Summer)
And also according to Barker Larry L. (1987), communication is:
 Effective self-expression.
 The exchange of messages in writing, speaking or images.
 Sharing information or providing entertainment through words or speeches or their
methods.

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 The transfer of information from one person to another.


 The exchange of meaning between individuals using a common symbol system.
 The process whereby one person transmits a message through a channel to another person
with some effect.
All these definitions of give a good map of communications basic components and help us to
build a working definition.
According to Houseman (1988), communication is defined as the process of understanding and
sharing of meaning. Communication is considered as a process because it is an activity, an
exchange, or a set of behaviors. Communication is not an object we can hold in our hands; it is
an activity in which we participate.
All definitions do have similar meaning. In general, Communication is a process that requires
understanding – perceiving, integrating, and comprehending the meaning of verbal and
nonverbal behavior of others. Communication is the transfer of information from the sender to
the receiver with the information being understood by the receiver.
Communication is the exchange of facts, ideas, opinions or emotions by two or more people. It is
the act of influencing & inducing others to interpret an idea in a manner trended by the speaker
or writer. Understanding of meaning of another person’s message doesn’t occur unless two
communicators can elicit common meanings for words, phrases, and nonverbal codes.
Simply hearing is not communicating. To understand messages, communication also involves
the sharing of information and interacting with people in order to exchange meaning. When we
use language for expression, it is the meaning that is shared for understanding of message. Your
mind constructs meanings as you interpret the message sent.
In organizational settings, we use communication to co-ordinate the efforts of individuals
towards the achievement of objectives. This is called administrative communication.
 Administrative Communication
It is a process which involves the transmission and accurate replication of ideas ensured by
feedback for the purpose eliciting actions which will accomplish organizational goals. (William
Scott)
Administrative communication is a type of communication which managers and others employ
to enable the goals of an organization to be achieved. It is a linking process that would enable us
to provide information for a variety of reasons in an organization, i.e. to achieve a coordinated
action; to express feelings and emotions; and to share information regarding organizational
goals, task directions, results of effort, and decision making. Every management function
involves communication. Therefore, understanding & proper use of communication are essential
to successful management.
 Business communication
Business communication is the sharing of information between people within and outside an
organization/enterprise that is performed for the commercial benefit of the organization.
In addition, business communication can refer to how a company shares information to promote
its product or services to potential customers. It is the way employees, management, and
administration communicates in order to reach their organizational goals.
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Communication – An Overview

For our purposes, however, we can define communication as:


The process by which people attempt to share meaning (ideas, feeling, thought, experience,
knowledge, skill, etc) for some purpose through the transmission of symbolic messages.
Our working definition of communication calls attention to the following five essential points.
1. Communication is a process
Communication refers to a series of activities to be accomplished in a sequence; it does not refer
to incidental events and transactions among people.
2. Communication is purposeful
When senders - receivers communicate the sender originally should have an objective to be
checked at the end of the communication process. Communication is not just the transfer of
messages but purposeful transfer of messages between senders and receivers. Thus it does not
refer to incidental transactions between people.
3. Communication involves people
Communication shows the degree of understanding among senders-receivers and how they relate
to each other. Therefore, it refers to communication among people only and the exchange of
interpersonal behaviors among them.
4. Communication involves shared meaning
This suggests that in order for people to communicate, they must agree on the definitions of the
terms and symbols they are using. The symbols used by the sender should be similarly
interpreted by the receiver in order to ensure equal or similar understanding between them.
5. Communication is symbolic
In communication symbols such as, letters, numbers, words, gestures, sound, etc can only
represent or approximate the ideas they are meant to communicate. In other words symbols are
not perfect representations of our ideas. Thus we have to take care in selecting symbols that best
approximate the sender’s ideas.
Communication is vital to human existence. It is how we pass on to others our thoughts and
feelings, tell them what we want them to do, ask them to help us, share with them our knowledge
and experience. Without communication we would each live as if alone in the world.

Nature of Communication
Dynamism
Every communication event stems from a series of past events and triggers a series of new ones.
Communication is affected by prior attitudes, planned thoughts and people to whom the message
is addressed. It is thus a dynamic phenomenon without beginning, without end, continually
responding, and continually changing.
Uniqueness
Evolving naturally from the notion of dynamism is the concept of uniqueness. No two
communication events are a like because of the change in the sender, the audience, delivery, time
and situation etc.
Transactional Nature

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Communication scholars Weinberg and Wilmot mentioned that in communication all persons are
engaged in sending (encoding) and receiving (decoding) messages simultaneously. Each person
is affecting the other. Each communication transaction involves reciprocal exchanges of feelings,
meanings, ideas and responses.
Characteristics of Communication
Communication exists when there is a sender or transmitter who desires to pass on some
information; there is a receiver to whom the information is passed on; the receiver partly or
wholly understands the message passed on to him and the receiver responds to the message, i.e.
feedback.
Communication is too complex process to sum up in short. There are several characteristics
shared by all communication. The main ones are:
 Communication is a process
 Communication uses symbol
 Communication is contextual
 Communication is purposive
 Communication is two-way
 Communication is irreversible and
 Communication is not a panacea
Communication is a process
Communication is not discrete, static or solitary. As a process communication exists in time and
changes consistently. Communication is complex to study. To study it well you have to be
sensitive to the many things occurring all at the same time as well as over a period of time.
Communication involves as an interaction between or among people. By looking at that activity
of one person during the exchange would not reveal its meaning. Words spoken during
conversation uncover all that went on during the interchange.
Messages are sent and reacted almost instantaneously by both people involved; and they can be
verbal or nonverbal. While speaking the people involved monitor each other’s reactions and
experience a variety of feelings. They respond immediately to each other, and these reactions
shape the next part of the event.
Communication uses symbols
When we are saying communication is symbolic, we are reflecting the nature of messages rather
than to the process of communication. Communication is the exchange of meaning or
transmission of messages. When we define/ consider communication simply as a process, we can
never get an important issue of the exchange of meaning.
Human evolution made it possible for us to develop into complex, interesting creatures by
developing our ability to use symbols. Animals (dog, cat, etc...) can communicate but they are
not naturally symbol users. Considerable effort has been done trying to teach higher primates use
symbol. Symbol using is not an innate capability and did not originate with them as it was with
human beings.

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Symbols stand for something else; they may be objects, written signs or images. The most
familiar and widely studied symbols are linguistics (-written or spoken words) but there are other
symbols systems as well such as the nonverbal languages (- body movement, facial expressions,
gestures, and the like) and the languages of the art. Symbols have freed us from the limitations of
the here and now; they allow us to talk about things and ideas in the absence of any tangible
objects.
Symbols are arbitrary. Their arbitrary nature makes them powerful. Symbols do not have any
actual connection to what they represent, i.e. there is no mystical connection between the word
and the object, e.g. the word horse and the animal. A person who comes from another planet or
place has no way of knowing that the word ‘horse’ represents the animal. The connection
between the word ‘horse’ and the ‘animal’ exists only in the mind of English speakers.
The connection between the word and the thing is strictly mentality, i.e. the connection is
learned. Because of their arbitrary nature, symbols are subject to vary interpretations that you
and I might not mean exactly the same thing when we use the same words. The potential for
misinterpretation would include nonverbal communication, e.g. a gesture made with fingers, in
S. America symbolizes good luck, but in N. America is insulting.
Therefore, what symbols are, how they get their meaning, and how we use them to communicate
are important communication concepts.
Communication is contextual
Communication occurs in a context. The shared or common symbol system is part of context.
Different languages provide different context. When we learn a language, we are learning to
name and recognize all those things that our culture feels are worth attention.
Sharing the same basic language is one way that communication is contextual. Sharing
specialized language associated with our jobs, hobbies, classes and individual level is another
type of context that makes communication possible. The existences of specialized languages
provide contexts in which specialized exchanges of information can occur. A shared language is
not all that we mean when we say that communication is contextual. Communication occurs; the
parties involved have to have a shared vision of what is appropriate in certain situations. Each
culture and social group has special communication rules that vary from context to context. E.g.
every family establishes rules for communication in a variety of contexts, i.e. a mealtime
conversation, when grandparents visit, etc...
The need for occurrence of context in which communication occurs both limits communication
and makes it possible. Unless we share common idea of what is to be done in an organization, we
will not know what is appropriate to say and what is not. Many miscommunications and
misunderstandings could arise if the sender and receiver of a message do not share the same
context.
Communication is purposive
Basically communication is done for a purpose. We have some motivation behind our
communication efforts. Understanding that communication is purposive and motivational would
help us to explain some of the behaviors of both the sender and the receiver. What motivates the
sender to speak may not be what motivates the receiver to listen. Individual differences play a
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big role in understanding communication as purposive. What motivates one person may not
motivate another; and what motivates one person one day may not motivate him the next day.
Communication is two-way
The existence of both a sender and a receiver in a communication activity presupposes that
communication process is, generally speaking, two- way. Even in intrapersonal communication,
when we are talking to our selves, communication is essentially two-way because we are acting
both as sender and receiver. Communication researchers described the two-way nature of
communication exchange by the term ‘interactive’. Interactive is used to describe human
interactions in which a source and receiver exchange massage in a predictable fashion.
Communication is irreversible
Most of the time we all wish to take back words we regretted uttering. Unfortunately this is
impossible. Our words and deeds are recorded in the others’ memories that we cannot erase
them; as the old saying goes “people may forgive, but they do not forget.” Often the more
vigorously you try to erase an act, the more vividly it stands out. This means you should weigh
your words carefully. An offhand comment and critical remark uttered in heat of conflict can
haunt you long afterwards.
Communication is not a panacea
Communication can smooth out the bumps and straighten the road to the success, but it will not
always get you what you want. If the quality of communication is poor, the results are likely to
be disappointing, that is why some problems are growing worse, and the longer they are
discussed.
Misunderstandings and ill-fillings can increase when people communicate badly. Even effective
communication may not solve all problems; there can be some situations in which the parties
understand as you begin to study communication on the job. Boosting your communication skills
can increase your success, but it can’t cure all.
Objectives of Business Communication
 To develop understanding and information among all workers and this is necessary for
group efforts.
 To foster an attitude which is necessary for motivation, co-operation and job satisfaction
 To discourage the spread of misinformation and rumors which can cause conflict and
tension
 To encourage the subordinates to give ideas and suggestions for improving up on the
product or work environment and taking these suggestions seriously
 To prepare workers for a change in methods of operations by giving them necessary
information in advance
 To improve the labor management relations by keeping the communication channels
open and accessible
 To encourage social relations among workers by encouraging inter-communication
 To develop sound intra organizational and inter organizational relations in order to
achieve the desired business goals

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Purpose of Communication
1. For instruction: The instructive function unvarying and importantly deals with the
commanding nature. It is more or less of directive nature. Under this, the communicator
transmits with necessary directives and guidance to the next level, so as to enable them to
accomplish his particular tasks. In this, instructions basically flow from top to the lower
level.
2. For integration: It is consolidated function under which integration of activities is
endeavored. The integration function of communication mainly involves bringing about
inter-relationship among the various functions of the business organization. It helps in the
unification of different management functions.
3. For information: The purposes or function of communication in an organization is to
inform the individual or group about the particular task or company policies and
procedures etc. Top management informs policies to the lower level through the middle
level. In turn, the lower level informs the top level the reaction through the middle level.
Information can flow vertically, horizontally and diagonally across the organization.
Becoming informed or inform others is the main purpose of communication.
4. For evaluation: Examination of activities to form an idea or judgment of the worth of
task is achieved through communication. Communication is a tool to appraise the
individual or team, their contribution to the organization. Evaluating one’s own inputs or
other’s outputs or some ideological scheme demands an adequate and effective
communication process.
5. For direction: Communication is necessary to issue directions by the top management
or manager to the lower level. Employee can perform better when he is directed by his
senior. Directing others may be communicated either orally or in writing. An order may
be common order, request order or implied order.
6. For teaching: The importance of personal safety on the job has been greatly recognized.
A complete communication process is required to teach and educate workers about
personal safety on the jobs. This communication helps the workers to avert accidents, risk
etc. and avoid cost, procedures etc.
7. For influencing: A complete communication process is necessary in influencing others
or being influenced. The individual having potential to influence others can easily
persuade others. It implies the provision of feedback which tells the effect of
communication.
8. For image building: A business enterprise cannot isolate from the rest of the society.
There is interrelationship and interdependence between the society and an enterprise
operating in the society. Goodwill and confidence are necessarily created among the
public. It can be done by the communication with the different media, which has to
project the image of the firm in the society. Through an effective external communication
system, an enterprise has to inform the society about its goals, activities, progress and
social responsibility.

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9. For employees orientation: When a new employee enter into the organization at that
time he or she will be unknown to the organization programs, policies, culture etc.
Communication helps to make people acquainted with the co-employees, superior and
with the policies, objectives, rules and regulations of the organization.
10. Other: Effective decision-making is possible when required and adequate information is
supplied to the decision-maker. Effective communication helps the process of decision
making. In general, everyone in the organization has to provide with necessary
information so as to enable to discharge tasks effectively and efficiently.
Role of Communication in Business
The term business communication is used for all messages that we send and receive for
official purpose like running a business, managing an organization, conducting the formal
affairs of a voluntary organization and so on. Business communication is marked by
formality as against personal and social communication.
The success of any business to a large extent depends on efficient and effective
communication. It takes place among business entities, in market and market places, within
organizations and between various groups of employees, owners and employees, buyers and
sellers, service providers and customers, sales persons and prospects and also between people
within the organization and the press persons. All such communication impacts business.
Done with care, such communication can promote business interests. Otherwise, it will
portray the organization in poor light and may adversely affect the business interest.
Communication is the life blood of any organization and its main purpose is to effect change
to influence action. In any organization the main problem is of maintaining effective
communication process. The management problem generally results in poor communication.
Serious mistakes are made because orders are misunderstood. The basic problem in
communication is that the meaning which is actually understood may not be what the other
intended to send. It must be realized that the speaker and the listener are two separate
individuals having their own limitations and number of things may happen to distort the
message that pass between them. When people within the organization communicate with
each other, it is internal communication. They do so to work as a team and realize the
common goals. It could be official or unofficial. Modes of internal communication include
face-to-face and written communication. Memos, reports, office order, circular, fax, video
conferencing, meeting etc. are the examples of internal communication.
When people in the organization communicate with anyone outside the organization it is
called external communication. These people may be clients or customers, dealers or
distributors, media, government, general public etc. are the examples of external
communication.
• Communication is the life blood of the business. No business can develop in the absence of
effective communication system.
• Communication is the mortar that holds an organization together, whatever its business or
its size.

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• When people within the organization communicate with each other, it is internal
communication and when people in the organization communicate with anyone outside the
organization it is called external communication.
• Ability to work well in teams, to manage your subordinates and your relationship with
seniors, customers and colleagues depends on your communication skill.
Why effective communication is important in business?
Effective communication is extremely important in the field of business because of the following
reasons.
 Business has grown in size
Large business organizations have a number of branches within the country and even abroad. For
their healthy and even growth, it is important the central organization or the head office to
maintain effective and efficient network of communication.
 Business activity has become extremely complex
Now a day activities because of specialization such as planning, production, sales, stores,
advertising, financing, etc are handled by different departments within an organization. If these
departments do not communicate with one another as well as with the management, there will be
no coordination among them.
 Business has become very competitive
Products like cloth, teas, cigarettes, soaps, blades, etc are available in the market with dozens of
brands. All these brands do not sell equally well. Those which can communicate better can also
sell better. The better the salesman, the larger the number of customers he can attract. Therefore,
salesmanship is a primary art of communication.
 Effective communication promotes a spirit of understanding and cooperation
If there is effective communication between the management and the employees, it develops an
atmosphere of mutual trust and confidence. Mutual understanding is extremely beneficial to both
parties. The management gets better return and the employees get job satisfaction. They develop
a sense of belongingness and loyalty to the enterprise.
 Workers are now organized into labor unions
Effective communication between the management and the union is necessary during bargaining
on the rights and dignity of the individual employees.
The Role of Communication in a Managerial Activity
Communication can play a major role in creating favorable and unfavorable impressions. You
are expected to use strong business communication skills in any job you hold. By acquiring
communication skills, you can learn how to organize and use your ideas to get what you want
from others. You will present your message with confidence, and these messages will say what
you want them to say.
Communication conveys your message. Strong communication skills would enhance the way
others view you and make you more valuable employee. They could also open the door to other
opportunities both inside and outside the firm for which you work.

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Strong communication skills are increasingly necessary for success in present and future
business environment. Work at every level of an organization, from the top management to the
worker, requires communication with others inside or outside the organization. Every action, e.g.
marketing, accounting, finance, management, etc… can be facilitated by efficient and effective
communication.
Everyone in a business organization is a part of management in one way or the other; be it
managing people, managing projects, or managing his own activities. Managers’ at all level
plans, organize, staff, direct and control organizational activities. Each of these function/
activities relies heavily on communication to achieve goals. In short, Planning, organizing,
staffing, directing and controlling requires good communication
Planning requires good communication
Planning includes setting goals, determining objectives, and working with others to develop
guidelines and procedures to follow. These activities involve collecting data both inside and
outside an organization, interpreting these collected data, drawing appropriate conclusions from
the interpretations, and recommending the best course of action.
It is the manager’s responsibility to persuade others using both oral and written communication
to support the best course of action for the organization. By effectively explaining the company’s
internal “rule of the game”, the management helps coordinated action among employee’s to
fulfill the company’s objectives. Thus, communication plays a major role in all these activities,
so that the management and employees can monitor and modify them to achieve the desired
outcomes.
Organizing requires good communication
In any organization, organizational chart shows line of authority and responsibility or the chain
of command, i.e. who supervises whom; who reports to whom within the company. Knowing
this information will let you go to the appropriate person for the action you seek.
The organizational chart shows the formal channels of communication. A channel of
communication is the path through which messages should flow. Official directives traveling
downward and official information traveling upward in the organization generally follow formal
lines of communication.
To conduct daily business, people in an organization also deal with one another through informal
communication channels. But organizational chart doesn’t reflect these relationships. As you
become familiar with the people and procedures in the company where you work, you will learn
when it would be possible to communicate informally with people at all levels of the
organization. It can take at any place.
In many businesses today, top managements walk around the workplaces and talk informally
about matters, e.g. work procedures, policies, performances, etc… and this is called ‘
management by walking around’. It gives managers a sense of what is happening in the
company.
Managers are responsible to reorganize the physical workplaces and the flow of work through
the organization. These activities require the manager to examine the situation, investigate

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possible solutions, decide the best solution, and implement the solution. Therefore, all activities
in organizing involve communication.
Staffing requires good communication
Communication is an important part of hiring employees, training them, evaluating their
performances, and changing their status in the organization. Announcing jobs, choosing the best
applicants, training new employees, evaluating employees, changing job positions, conforming
to the terms of an agreement, etc... are handled through communication. Therefore, effective and
efficient communication is crucial in staffing.
Directing requires good communication
Managing other people requires technical, conceptual, human and communication skills.
Managers must be able to compose memos and reports; develop policy statements and workable
procedures; and also be able to speak clearly and concisely. The ability to listen is crucial for all
business people. All these tasks require strong understanding of communication principles and
the ability to apply them.
Controlling requires good communication
The control process normally involves establishing standards; measuring performance; analyzing
deviations from standards, and taking corrective actions. All these steps require strong
communication skills. In general, all management activities depend on effective communication.

Communication is essential to each of the five basic functions of management. In order to plan,
organize, staff, direct and control, managers must be able to communicate with other persons-
and communicate well. Information from others helps formulate plans; information provided to
others defines job assignments and helps organize work; information on standards, progress and
personal factors fulfills the directing function; while information in the form of written and oral
progress reports is a fundamental element in controlling. Communication is a linking process that
enables each of the basic functions of management to be carried. Effective communication is
therefore the “life blood” of every organization.

Importance of Communication for Personal Life


To be specific communication serves the following three purposes in personal or individual life.
Job Success
The two dimensions of management most often cited as the keys to individual and organizational
success are technical ability and understanding of people. Effective communication skills to
listen, speak, and write complement these two dimensions. Therefore enhance ones job success,
a person learn the art of human relations to effectively communicate her/his ideas, experiences,
thoughts, skills and feelings.
Personal Satisfaction
Mastery on a certain area goes beyond vocational success or promotion, i.e. personal satisfaction.
Thus communication skill can be a source of personal satisfaction, particularly in the areas of art
such as writing, painting, etc.
Meeting Social and Ethical obligations

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A person may be in conflict with him/herself, with other people, and/or with the community at
large. With the help of communication people continue adjusting profitably to themselves, to
other people, to the environment in which they live and work. It is a means of winning respect
and confidence from other people or from the community at large.
As you attempt to fulfill yourself in business and in the private aspect of your life, your brain
enables you to identify, classify, relate and solve issues. But in responding to your environment,
you generate both emotions and ideas. You feel as well as think. Through such experiences you
continue adjusting profitably to yourself to other people, to the environment in which you and
they live, cooperate and compete. In brief, effective communication is a key to success in
personal life and in business career.
Significance of Business Communication
 It promotes managerial efficiency
 It is an aid to planning and decision making
 It strengthens control and operations
 It increases co-operation and understanding
 It is a basis of leadership action
 It develops co-ordination
 It leads to job satisfaction
Communication in Management
Communication is central to the entire management process for four primary reasons:
 Communication is a linking process of management. Communication is the way
managers conduct the managerial functions of planning, organizing, staffing,
directing, and controlling. Communication is the heart of all organizations
 Communication is the primary means by which people obtain and exchange
information. Decisions are often dependent upon the quality and quantity of the
information received. If the information on which a decision is based is poor or
incomplete, the decision will often be incorrect.
 The most time-consuming activity a manager engages in is communication.
Managers spend between 70 to 90 percent of their time communicating with
employees and other internal and external customers.
 Information and communication represent power in organizations. An employee
cannot do anything constructive in a work unit unless he or she knows what is to be
done, when the task is to be accomplished, and who else is involved. The staff
members who have this information become centers of power.
The ability to communicate well, both orally and in writing is a critical managerial skill and
a foundation of effective leadership. Through communication, people exchange and share
information with one another and influence one another's attitudes, behaviors, and
understandings. Communication allows managers to establish and maintain interpersonal
relationships, listen to others, and otherwise gain the information needed to create an

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Communication – An Overview

inspirational workplace. No manager can handle conflict, negotiate successfully, and


succeed at leadership without being a good communicator.

The Communication Situation


The communication situation is said to exist when
1) There is a person (sender/transmitter) who wants to pass some information;
2) There is another person (receiver) to whom the information is to be passed on;
3) The receiver partly or wholly understands the message or information passed on to
him;
4) The receiver responds to the message or gives feedback.
These four components are essential for communication.

Compiled by: Getachew A. (MBA) Page 14

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