BAF 218 –

BUSINESS
COMMUNICATION
INTRODUCTION TO
BUSINESS
COMMUNICATION
• Communication is neither transmission of message nor message itself. It is the
mutual exchange of understanding, originating with the receiver. Communication
needs to be effective in business. Communication is essence of management. The
basic functions of management (Planning, Organizing, Staffing, Directing and
Controlling) cannot be performed well without effective communication. Business
communication involves constant flow of information. Feedback is integral part of
business communication.
• Organizations these days are very large. It involves number of people. There are
various levels of hierarchy in an organization. Greater the number of levels, the more
difficult is the job of managing the organization. Communication here plays a very
important role in process of directing and controlling the people in the organization.
Immediate feedback can be obtained and misunderstandings if any can be avoided.
There should be effective communication between superiors and subordinated in an
organization, between organization and society at large (for example between
management and trade unions). It is essential for success and growth of an
organization. Communication gaps should not occur in any organization.
• Business Communication is goal oriented. The rules, regulations and policies of a
company have to be communicated to people within and outside the organization.
Business Communication is regulated by certain rules and norms. In early times,
business communication was limited to paper-work, telephone calls etc. But now with
advent of technology, we have cell phones, video conferencing, emails, satellite
communication to support business communication. Effective business
communication helps in building goodwill of an organization.
• Business communication skills are critical to the success of any organization
despite its size, geographical location, and its mission. Business communication is
interlinked with internal culture and external image of any organization. So it is the
determining factor to communication inside the organization. Good Business
communication practices assist the organization in achieving its goal of informing,
persuading, favorable relationship, and organizational goodwill. Organizations can
only survive if they accept the rapidly changing global challenges and the
communication processes are structured and delivered.
• The present workforce is dynamic in nature so communication is a challenge when
executed against the backdrop of culture, technology and competition. 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.
Meaning of communication (Authored)
• The word communication has been derived from the Latin word 'communicare' that
means ‘to share’. Communication may be defined as interchange of thought or
information between two or more persons to bring about mutual understanding and desired
action. It is the information exchange by words or symbols. It is the exchange of facts,
ideas and viewpoints which bring about commonness of interest, purpose and efforts.
• According to Keith Davis, ‘The process of passing information and understanding from
one person to another. "Communication is something so simple and difficult that we can
never put it in simple words," says T.S. Mathews. But we do need a definition to
understand the term.
• In his book Communication in Business, Peter Little defines communication as follows:
“Communication is the process by which information is transmitted between individuals
and / or organizations so that an understanding response results.” Another very simple
definition of 'communication' has been provided by W. H. Newman and C. F. Summer Jr:
“Communication is an exchange of facts, ideas, opinions, or emotions by two or more
persons.”
Meaning of communication (Cot’d)
• It is essentially a bridge of meaning between the people. By using the bridge a person
can safely across the river of misunderstanding’. 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.
Meaning of communication (Cot’d)
• However, communication incorporates, besides commonality, the concepts of transfer,
meaning and information. It implies that there must be a receiver if communication is
to occur. The sender of message must consider the receiver while structuring his
message from a technical standpoint as well as in delivering it. When the receiver is
not considered, there is either no response or there is wrong response. Sharing of
understanding would be possible only when the person, to whom the message is
meant, understands it in the same sense in which the sender of the message wants him
to understand.
• Thus, communication involves something more than mere transmission of the
message or transmission and physical receipt thereof. The correct interpretation of the
message is important from the point of view of organizational efficiency. As such, the
greater the degree of understanding presents in the communication, the more the
likelihood that human action will proceed in the direction of accomplishment of
goals.
Purpose of Communication
a) 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.
b) 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.
c) 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.
d) 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.
Purpose of Communication (cot’d)
e) 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.
f) 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.
g) 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.
h) 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.
i) 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.
 Dimensions of Communication
• In an organization, communication flows in 5 main directions-
• Downward
• Upward
• Horizontal /Lateral
• Diagonal
• Grapevine Communication
• Downward Communication: Communication that flows from a higher level in an organization to a
lower level is a downward communication. In other words, communication from superiors to
subordinates in a chain of command is a downward communication. This communication flow is used
by the managers to transmit work-related information to the employees at lower levels. Employees
require this information for performing their jobs and for meeting the expectations of their managers.
Downward communication is used by the managers for the following purposes –
– Providing feedback on employees’ performance.
– Giving job instructions.
– Providing a complete understanding of the employees’ job as well as to communicate them how their
job is related to other jobs in the organization.
– Communicating the organizations mission and vision to the employees.
– Highlighting the areas of attention.
• Organizational publications, circulars, letter to employees, group meetings etc are all examples of
downward communication. In order to have effective and error-free downward communication,
managers must:
• Ensure that the message is accurate, specific and unambiguous.
• Utilize the best communication technique to convey the message to the receiver in right form
• Specify communication objective.
• Upward Flow of Communication: Communication that flows to a higher level in an
organization is called upward communication. It provides feedback on how well the
organization is functioning. The subordinates use upward communication to convey their
problems and performances to their superiors.
• The subordinates also use upward communication to tell how well they have understood the
downward communication. It can also be used by the employees to share their views and
ideas and to participate in the decision-making process. Upward communication leads to a
more committed and loyal workforce in an organization because the employees are given a
chance to raise and speak dissatisfaction issues to the higher levels. The managers get to know
about the employees’ feelings towards their jobs, peers, supervisor and organization in
general. Managers can thus accordingly take actions for improving things.
• Grievance Redressal System, Complaint and Suggestion Box, Job Satisfaction surveys
etc. all help in improving upward communication. Other examples of Upward
Communication are - performance reports made by low level management for reviewing by
higher level management, employee attitude surveys, letters from employees, employee-
manager discussions etc.
• Lateral / Horizontal Communication: Communication that takes place at same
levels of hierarchy in an organization is called lateral communication, i.e.,
communication between peers, between managers at same levels or between any
horizontally equivalent organizational member. The advantages of horizontal
communication are as follows:
i. It is time saving.
ii. It facilitates co-ordination of the task.
iii. It facilitates co-operation among team members.
iv. It provides emotional and social assistance to the organizational members.
v. It helps in solving various organizational problems.
vi. It is a means of information sharing.
vii. It can also be used for resolving conflicts of a department with other department or
conflicts within a department.
• Diagonal Communication or crosswise communication: Communication that
takes place between a manager and employees of other workgroups is called
diagonal communication. It generally does not appear on organizational chart.
• For instance - To design a training module a training manager interacts with
Operations personnel to enquire about the way they perform their task. The Accounts
people of an organization visiting different employees in various departments for
their IT calculation, bonus for workers etc. fall under diagonal communication.
Channels of communication
Formal Channels of Communication
• The formal communication can consist in verbal messages, nonverbal messages,
written, under the shape of letters, telephone messages, radio messages, printed,
internal notes. Even some gestures can consist in formal communication. The
messages are transmitted by the authorized ones: on official channels, these arrive to
the ones who need to react, to people or machines which need to know the content of
these messages.
• Usually, all formal communications are recorded and kept in the organization’s
evidence are retained copies of these by the transmitter, by the receiver, by all of the
desks from the organization which need to know and keep the information. Examples
of formal communications are given by work commands, reports and financial
evidence, reports over sells / inventory, statements referring to the company’s
policies, post descriptions, etc.
• The number of communication channels available to a manager has increased over the last 20 odd
years. Video conferencing, mobile technology, electronic bulletin boards and fax machines are some
of the new possibilities. As organizations grow in size, managers cannot rely on face-to-face
communication alone to get their message across. A challenge the managers are faced with today is to
determine what type of communication channel they should opt for in order to carryout effective
communication.
• In order to make a manager's task easier, the types of communication channels are grouped into three
main groups: formal, informal and unofficial.
• A formal communication channel transmits information such as the goals, policies and procedures of
an organization. Messages in this type of communication channel follow a chain of command. This
means information flows from a manager to his subordinates and they in turn pass on the information
to the next level of staff.
• An example of a formal communication channel is a company's newsletter, which gives employees as
well as the clients a clear idea of a company's goals and vision. It also includes the transfer of
information with regard to memoranda, reports, directions, and scheduled meetings in the chain of
command.
• A business plan, customer satisfaction survey, annual reports, employer's manual, review meetings are
all formal communication channels.
 • Informal Channels of Communication

• Informal communication arises out of all those channels that fall outside the formal channels and it is
also known as grapevine. It is established around the societal affiliation of members of the
organization. Informal communication does not follow authority lines as in the case of formal
communication.
• Informal communication takes place due to the individual needs of the members of an organization and
subsists in every organization. Normally, such communication is oral and may be expressed even by
simple glance, sign or silence. Informal communication, is implicit, spontaneous multidimensional and
diverse. It often works in group of people, i.e. when one person has some information of interest; he
passes it on to his informal group and so on.
• An organization can make efficient use of informal channels to fortify the formal channels of
communication. It acts as a valuable purpose in expressing certain information that cannot be
channeled via the official channels. It satisfies the people desires to identify what is happening in the
organization and offers an opportunity to express dreads, worries and complaints. Informal
communication also facilitates to ameliorate managerial decisions as more people are involved in the
process of decision-making.
• Inspite on many advantages, informal communication has certain disadvantages. Informal
communication contains facts, deceptions, rumors and unclear data. The informal channels of
communication may transmit completely imprecise information that may harm rather than help an
organization. In addition, it is impossible to fix the responsibility for its origin or flow of information.
However, for the efficient working of any organization both formal and informal communications are
required. An example of an informal communication channel is lunchtime at the organization's
cafeteria/canteen. Here, in a relaxed atmosphere, discussions among employees are encouraged. Also
managers walking around, adopting a hands-on approach to handling employee queries is an example
of an informal communication channel. Quality circles, team work, different training programs are
outside of the chain of command and so, fall under the category of informal communication channels.
 FUNCTIONS OF
COMMUNICATION
 – FUNCTIONS OF COMMUNICATION
• The most basic functions of communication in an organization are to inform, control, motivate and
emotional expression.

• Information
• An organization needs a vast amount of information to function and operate a business. The top
management would require timely and accurate information for the various departments to make effective
decisions. Information is dispersed throughout an organization through written or verbal communication.
a) A human resources representative or business owner may send out a memo explaining a change in the
company's health plan.
b) A business meeting may be used as a way to communicate a new office procedure.
c) A webinar allows a company to conduct a meeting over the Internet with employees or customers who
cannot attend in person.
• The idea of informing within an organization is to provide data and information so that employees can
effectively complete their job. Information ensures that an employee is aware of the rules and procedures
of an organization. It also eliminates job uncertainty for workers when they are fully informed.
 Control
• The management of any organization will always have plans with long, medium or long term
objectives for the months and years ahead. To achieve these objectives, the daily & monthly activities
must proceed as planned in order to achieve the objectives for the period.
• Communication acts to control member behavior in several ways:
1. Organizations have authority hierarchies and formal guidelines that employees are required to
follow. When employees, for instance for instances are required to first communicate any job
related grievance to their immediate boss, to follow their job description, or to comply with
company policies, communication is performing a control function.
2. But informal communication also controls behavior. When work groups tease or harass a member
who produces too much (and makes the rest of the group look bad) they are informally
communicating with, and controlling the member’s behavior.
3. A company uses communication as a way to maintain control over employees and their work
environment. Written human resources policies and procedures dictate how employees are permitted
to act in the workplace. Job descriptions outline the parameters of an employee's job functions.
Performance reviews control whether an employee receives a raise or attains a promotion.
 Motivation
• Managers use communication to motivate workers to achieve peak performance. By clarifying the
expectations of employees and providing incentives for meeting or exceeding expectations,
communication can help companies reach specific objectives.
• For example, by communicating to salespeople that they'll receive a 10 percent bonus if they reach
their annual sales goal, it helps the company reach its overall sales goals. Communication fosters
motivation by clarifying to employees what is to be done, how well they are doing and what can be
done to improve performance if it’s subpar. We saw his operating in our review of goal-setting and
reinforcement theories.
• The formation of specific goals, feedback on progress toward the goals, and reinforcement of desired
behavior all stimulate motivation and require communication.
• Emotional Expression and Interdependence
• Emotional appeal is when emotions or arguments are used to persuade others instead of facts or
logic. Organizations can use emotional appeals when delivering bad news.
• Last year, the CEO spoke to the entire company at an emergency meeting. He explained how
devastated he was over the need to have a corporate downsizing. He used emotion to explain that it
was better for the overall security of the company to eliminate some positions.
• For many employees, their work group is a primary source for social interaction. The communication
that takes place within the group is a fundamental mechanism by which members show their
frustration and feelings of satisfaction.
• Communication therefore provides release for the emotional expression of feelings and for fulfillment
of social needs.
T E C H N O LO G Y
AND BUSINESS
C O M M U N I C AT I O N
 – TECHNOLOGY AND BUSINESS • Even medium-scale companies now have a chance
COMMUNICATION to participate in the fierce competition among larger
• Technology has changed business in many ways, but its businesses. This is just one proof that technology in
effect on communication is arguably the most business communication is capable of increasing
significant. The use of technology in daily business worker productivity. If you come to think about, the
operations is constantly evolving, and one such example
advantages do not need an employee to undergo a
is the use of technology in business communication.
radical adjustment. On the contrary, tasks are made
• Being in touch is very important to businesses, that is
simpler and more convenient for the user.
why it is no wonder why a lot of resources is spent in
improving the communication procedures of various
businesses. The revolution of the Internet has allowed - Communication Is Faster
businesses to have more options as far as business
• Whether you need to speak with an employee who is
communication was concerned. It made the technologies
of software, hardware, and network converge into one traveling in another state or country or you need to
cohesive and solid system, which made the optimization communicate with your supplier half way around
of various business procedures faster. the world, technology allows you to do so
• Indeed, the employees and the organizations as a whole instantaneously. In fact, thanks to email and text
greatly benefit from the use of technology in business. messages, you can now send messages to people in
With a feasible business plan, organizations can save a other time zones before you forget without worrying
lot of money and raise the level of productivity of the that you will wake them up. In fact, the Internet has
staff if the use of technology were well-planned and allowed business people to communicate easily
executed. regardless of time zone and language issues.
Expanded Communication Opportunities
• Technology allows individuals to communicate and carry on a business relationship without ever
meeting face to face, so people in all parts of the world now have the chance to interact with a
company in a rural part of India. For example, technology allowed for the emergence of the virtual
assistant, a worker who completes tasks for her client online without having ever met him, in the 20th
century.

Cost-Cutting Procedures
• In addition to migrating to a digital means of communicating, a business can save a lot with
technological advances in business communication. Business software products that combine voice
and data no longer have the need for multiple lines that can add a bulky amount to communication
expenses. In addition, minimal technical support is needed since most of the installation, operations,
and maintenance procedures can be done with little or no supervision at all.
Network Convenience
• The use of modern technology in business communication eradicates the complexity that is involved
in monitoring network traffic. This is because all the communication data travels at the same stream.
Therefore, there is only one network that needs to be monitored, and this lessens the work of network
administrators, giving them more time to work on other tasks.
• The benefits of technology in business communication are almost immeasurable, since its advantages
are long term and ell-encompassing. Businesses can use this to their advantage to increase
productivity, to raise revenues, to build better relationships with customers, and to survive longer in
the business arena.