Business Communication

Module I: Introduction to communication.

Communication means sharing or exchanging information, news, ideas, etc. with someone. The most
common medium of communication is language. Besides, there are other several means of
communication available to us. We use non-linguistic symbols such as traffic lights, road signs, railway
signals to convey information relating to the movements of vehicles and trains. We also use telegraphic
code for quick transmission of messages and secret codes for communication defense and other highly
confidential information.

MEANING OF COMMUNICATION: It is very difficult to define the term ‘Communication` in a

simple way. Different scholars defined communication in different ways. The simplest definition of
communication is “a process of sending and receiving a message between two parties.”
Actually communication is the process of transferring information and understanding from one of more
people one or more people. In the most clear from, communication means interaction between two parties

According to Megginson said, “Communication is the process of transmitting meanings, ideas and

understanding of a person or a group to another person or group.”
According to Newstrom & Keith Davis said, “Communication is the transfer of information form one
person to another. It is a way of reaching others by transmitting ideas, feelings, thoughts, facts and
values.”
According to  Theo Haiman, “Communication means the process of passing information and
understanding from one person to another.”

Characteristics/Nature of Communication:

(i) Interchange of information:

The basic characteristic of human communication is that it aims at exchanging information. It is a two-
way process. The exchange can be between two or more persons. It may be at the individual or the
organizational level.

(ii) Continuous process:

Communication is a continuous process. It is not static. It is constantly subject to change and is dynamic.
The people with whom communication is held, its content and nature, and the situation in which
communication is held – all keep changing.

(iii) Mutual understanding:

The main purpose of communication is to bring about mutual understanding. The receiver should receive
and understand the message in the manner that the sender intended him to.

Business Communication, Module 1 – Prof. Poonam Ranjan

(iv) Response or feedback:
Communication always leads to some response or reaction. A message becomes communication only
when the receiving party understands and acknowledges it, and also reacts and responds to it.

(v) Universal function:

Communication is a universal function, which covers all levels of authority.

(vi) Social activity:

Communication is a social activity, too. The components of a society are into a relationship of sharing, be
it information, feelings or emotions. The same holds true for business communication. It involves the
effort of people to get in touch with one another and to make them understood. The process by which
people attempt to share meaning and relate to one another is, thus, a social activity.

Purpose/objective of Communication:
Management is getting the things done through others. The people working in the organisation should
therefore be informed how to do the work assigned to them in the best possible manner. The
communication is essential in any organisation.

The purpose of the communication can be summed up into the following:

1. Flow of Information:
The relevant information must flow continuously from top to bottom and vice versa. The staff at all levels
must be kept informed about the organisational objectives and other developments taking place in the
organisation. A care should be taken that no one should be misinformed. The information should reach
the incumbent in the language he or she can understand better. The use of difficult words should be
avoided. The right information should reach the right person, at right time through the right person.

2. Coordination:
It is through communication the efforts of all the staff working in the organisation can be coordinated for
the accomplishment of the organisational goals. The coordination of all personnel’s and their efforts is the
essence of management which can be attained through effective communication.

3. Learning Management Skills:

The communication facilitates flow of information, ideas, beliefs, perception, advice, opinion, orders and
instructions etc. both ways which enable the managers and other supervisory staff to learn managerial
skills through experience of others. The experience of the sender of the message gets reflected in it which
the person at the receiving end can learn by analyzing and understanding it.

4. Preparing People to Accept Change:

The proper and effective communication is an important tool in the hands of management of any
organisation to bring about overall change in the organisational policies, procedures and work style and
make the staff to accept and respond positively.

Business Communication, Module 1 – Prof. Poonam Ranjan

5. Developing Good Human Relations:
Managers and workers and other staff exchange their ideas, thoughts and perceptions with each other
through communication. This helps them to understand each other better. They realize the difficulties
faced by their colleagues at the workplace.

6. Ideas of Subordinates Encouraged:

The communication facilitates inviting and encouraging the ideas from subordinates on certain occasions
on any task. This will develop creative thinking. Honoring subordinates’ ideas will further motivate them
for hard work and a sense of belonging to the organisation will be developed. It will provide them with
the encouragement to share information with their superiors without hesitation. The managers must know
the ideas, thoughts, comments, reactions and attitudes of their subordinates and subordinates should know
the same from the lowest level staff of their respective departments.

Functions of communication
The communication involves a mutual exchange of understanding. It is the basic functions of business
management. The function of communication includes staffing, directing, planning, organizing and
controlling. Communication is necessary for the effective functioning of both internal and external
activities of the organization.
1. Information function:

The basic requirement of adjusting oneself to the environment is the information. There must be some
information about what is going on in the environment which concerns the people. The direct or indirect
receiving or giving of information underlines all communication functions.
2. Command or instructive function:

The command or instructive function is the purpose of informing their subordinates about what to do,
how to do and when to do. The command and instructive functions of communication are more effective
and observable in formal organizations than in informal organizations.
3. Interaction function:

Communication is essential for employees who work together on a project during the training process.
Communication helps the employees to interact with the customers and each other. Interaction is
necessary for all the employees. A customer service department communicates with customers to help
them resolve issues. In the past, a business letter can be used to introduce a company to a potential
customer.
4. Influence or persuasive function:

The purpose of communication is to influence people and lead them in the desirable direction. The
persuasive function of communication helps to direct and motive the employees in their respective field .
5. Integrative function:

Business Communication, Module 1 – Prof. Poonam Ranjan

A major function of communication is to integrate any disintegration at the interpersonal and at the
organizational level. This helps in maintaining individual, societal and organizational stability. It also
helps to establish identity of the organization.
6. Motivational function:

Managers use communication to motivate workers and to achieve peak performance. The communication
can help companies to reach the specific objectives, by clarifying the expectations of employees and
providing incentives for meeting and exceeding expectations.
7. Control function:

A company uses communication as a method to maintain control over employees and their work
environment. The policies and procedures of human resources indicate how employees are allowed to act
in the workplace. The parameters of an employee's job functions are outlined by job descriptions.
Performance reviews control whether an employee receives a raise or attains a promotion.
8. Providing feedback:

Communication allows the employees, managers, and business owners to give and receive feedback on
the changes that are being considered. For example, if a small business owner is considering a purchase of
new computer system, he may first consult with his employees. They determine what features the system
should include and what help they may need in learning the system.

Process

Elements of Communication Process or communication process:

Communication may be defined as a process concerning exchange of facts or ideas between persons
holding different positions in an organisation to achieve mutual harmony. The communication process is
dynamic in nature rather than a static phenomenon.

(1) Sender:
Sender is the initiator of the message . The person who intends to convey the message with the intention
of passing information and ideas to others is known as sender or communicator.

(2) Message:

Business Communication, Module 1 – Prof. Poonam Ranjan

This is the subject matter of the communication. This may be an opinion, attitude, feelings, views, orders,
or suggestions.

(3) Encoding:
Encoding refers to the process by which the sender translates his thoughts into a series of verbal and non-
verbal actions that he feels will communicate the message to the intended receiver. For example,
translating the thought into any language. Since the subject matter of communication is theoretical and
intangible, its further passing requires use of certain symbols such as words, actions or pictures etc.
Conversion of subject matter into these symbols is the process of encoding.

(4) Communication Channel:

The person who is interested in communicating has to choose the channel for sending the required
information, ideas etc. A channel connects the sender to the receiver. This information is transmitted to
the receiver through certain channels which may be either formal or informal. The choice of a channel
depends on the communication situation. For instance, when dealing with confidential information, direct
face-to-face interaction or a sealed letter are more effective channels than a telephone conversation.

(5) Receiver:
Receiver is the person who receives the message or for whom the message is meant for. It is the receiver
who tries to understand the message in the best possible manner in achieving the desired objectives. The
receiver is the person to whom the message is transmitted. In order to decode the message, the receiver
has to be ready to receive the message. That is. the receiver should not be preoccupied with other
thoughts that might cause him to pay insufficient attention to the message.

(6) Decoding:
The person who receives the message or symbol from the communicator tries to convert the same in such
a way so that he may extract its meaning to his complete understanding. Decoding refers to the process of
translation of symbols encoded by the sender into ideas that can be understood.

(7) Feedback:
Feedback is the process of ensuring that the receiver has received the message and understood in the same
sense as sender meant it. A message generated by the receiver in response to the sender’s original
message is known as feedback. Feedback is necessary to ensure that the message has been effectively
encoded, transmitted, decoded and understood. It helps a sender evaluate the effectiveness of his message,
so that he can modify his subsequent messages.

(8) Noise
Noise is anything that has a disturbing influence on the message. Since noise hinders communication, the
sender should choose a channel that is free from noise. Noise may occur at the sender’s end, during
transmission, or at the receiver’s end.

Examples of noise include:

i. Faulty encoding

Business Communication, Module 1 – Prof. Poonam Ranjan

ii. A poor telephone connection
iii. An inattentive receiver
iv. Faulty decoding (attaching the wrong meaning to the message)
v. Prejudices obstructing the poor understanding of a message
vi. Gestures and postures that may distort the message

Communication Barriers
There are many reasons why interpersonal communications may fail. In many communications, the
message may not be received exactly the way the sender intended and hence it is important that the
communicator seeks feedback to check that their message is clearly understood. The skills of Active
Listening, Clarification and Reflection, which we will discuss shortly, may help but the skilled
communicator also needs to be aware of the barriers to effective communication. There exist many
barriers to communication and these may occur at any stage in the communication process. Barriers may
lead to your message becoming distorted and you therefore risk wasting both time and/or money by
causing confusion and misunderstanding. Effective communication involves overcoming these barriers
and conveying a clear and concise message. 

Some common barriers to effective communication include:

 The use of jargon. Over-complicated or unfamiliar terms.

 Emotional barriers and taboos.
 Lack of attention, interest, distractions, or irrelevance to the receiver.
 Differences in perception and viewpoint.
 Physical disabilities such as hearing problems or speech difficulties.
 Physical barriers to non-verbal communication.
 Language differences and the difficulty in understanding unfamiliar accents.
 Expectations and prejudices which may lead to false assumptions or stereotyping. People often
hear what they expect to hear rather than what is actually said and jump to incorrect conclusions.
 Cultural differences. The norms of social interaction vary greatly in different cultures, as do the
way in which emotions are expressed. For example, the concept of personal space varies between
cultures and between different social settings.

A skilled communicator must be aware of these barriers and try to reduce their impact by continually
checking understanding and by offering appropriate feedback. 

Types of Communication Barriers

 Language Barriers Clearly, language and linguistic ability may act as a barrier to

communication. However, even when communicating in the same language, the terminology used
in a message may act as a barrier if it is not fully understood by the receiver(s). For example, a
message that includes a lot of specialist jargon and abbreviations will not be understood by a
receiver who is not familiar with the terminology used. As nurses, we are especially prone to
making this mistake. We must remember to use language that can be understood by the receiver. 

 Psychological Barriers The psychological state of the receiver will influence how the message is
received. For example, if someone has personal worries and is stressed, they may be preoccupied
by personal concerns and not as receptive to the message as if they were not stressed. Stress

Business Communication, Module 1 – Prof. Poonam Ranjan

 management is an important personal skill that affects our interpersonal relationships. Anger is
another example of a psychological barrier to communication. When we are angry it is easy to say
things that we may later regret and also to misinterpret what others are saying. More generally,
people with low self-esteem may be less assertive and therefore may not feel comfortable
communicating - they may feel shy about saying how they really feel, or read negative sub-texts
into messages they hear. 

 Physiological Barriers Physiological barriers may result from the receiver’s physical state. For
example, a receiver with reduced hearing may not grasp the entirety of a spoken conversation,
especially if there is significant background noise. 

 Physical Barriers An example of a physical barrier to communication is geographic distance

between the sender and receiver(s). Communication is generally easier over shorter distances as
more communication channels are available and less technology is required. Although modern
technology often serves to reduce the impact of physical barriers, the advantages and
disadvantages of each communication channel should be understood so that an appropriate
channel can be used to overcome the physical barriers. 

 Emotional Barriers Attitudinal barriers are behaviors or perceptions that prevent people from
communicating effectively. Attitudinal barriers to communication may result from personality
conflicts, poor management, resistance to change, or a lack of motivation. Effective receivers of
messages should attempt to overcome their own attitudinal barriers to facilitate effective
communication.

 Organizational barrier : The Organizational Barriers refers to the hindrances in the flow of
information among the employees of an organization.

Overcoming Barriers

Most of the above-mentioned barriers can be overcome by the skilled communicator. Obviously, bridging
gaps in geography and communicating through disabilities are a topic for a different discussion. Below,
we will look at some tools that can be used to bridge barriers in everyday communications. 

 Have Clarity In Your Thoughts: You should be very clear about your objective and what you want to
convey. Arrange your thoughts in a proper order and then communicate accordingly. Systematic
communication and clarity in thought get adequately received and appreciated. Aimless talks can be
misleading so you should always try to show that there is an aim or motive behind your talk.

 Understand the needs of your audience: You should be emotional and sensitive towards the needs of
your receiver. Understand his behavior, nature, culture, and religion, however, it does not mean you
cannot express your feelings or thought, but it simply means that you are showing respect to his
religious beliefs or thoughts and then stating your point of view. Most importantly the message
should also be structured as per his level or ability. If you are conveying the message to a layman
then avoid using technical words and if you are addressing corporate elite, the language should have
professional sophistication and maturity.

Business Communication, Module 1 – Prof. Poonam Ranjan

 Seek the Advice of others before Communicating: If you are going for a high prolific meeting, seek
the advice from your seniors and colleagues on the level and kind of talk that should be given. The
main advantage of this practice is simple, you can get many ideas which can build
your motivation and knowledge and you can then use the same to meet your purpose.

 Take adequate care of your Tone, Language and way you are speaking: Messages should be framed
in a simple and polite tone which attracts the listeners. Care should be taken to keep the sentences
short and simple. Technical words should be used only where they are required the most. The most
important of all the interest of the receiver should be kept in mind and the things that conveyed
should attract the users else you might find your audience or listening yawning while you are
speaking.

 Have a Feedback from the receiver: Avoid asking listener, “Have you understood,” ask them instead
their views about what you have said and the aspects they had grasped from your message. This is a
most polite and best way to have your listener involve in a conversation. This would help you to
have a better understanding of their aptitude and the interest he or she is showing towards the
subject.

 Select the right channel: Communication channel refers to the medium the sender uses to send a
message such as telephone or email. An important communication skill is to simply know what
medium of communication to use.

 Make use of the body language or non verbal communication: During the process of communication
make sure you make the most appropriate use of your body language, Avoid showing too much
of emotions as the receiver might misapprehend the message. Try to always keep a smiling face
while talking and make eye to eye contact with the listener but make sure not to keep your eyes
gazed at the person for more than five seconds and avoid too much of fluttering of eyes which
indicate you are not confident. Sit in an upright position and feel relaxed.

 Reduce the level of noise as far as possible: Always make sure to speak and interact with someone
where there is no noise and least disturbance. Find the source of noise, remove it and then start
conversing.

 Communication chain should be short: You should avoid using the mediocre or send the message
through the third person unless it is very urgent. Try to directly communicate with the person
concerned. The risk of distortion of the facts gets more if message is passed through the third party
and just imagine if there are more people in between the sender and receiver the chances of filtering
of the messages is doubled.

 Develop listening and speaking skills: Being a good listener is one of the best ways to be a good
communicator. Active listening involves paying attention to what the other person is saying.
Through active listening one can better understand what the other person is trying to say and can
respond appropriately. Speaking skills mean to express one’s thoughts in spoken language.

Business Communication, Module 1 – Prof. Poonam Ranjan