BBA-104 (BBA SEM-I)

MEANING

Communication is the act of sharing or exchanging information, ideas or feelings.

Business communication refers to the exchange of information, ideas, and messages within and outside a
business or organization. It encompasses various forms of communication, including verbal, non-verbal,
written, and digital methods, and is essential for ensuring that business operations run smoothly and
effectively.

Definition:-

Business communication is the process of sharing information and messages within and outside an
organization to achieve business objectives. It involves the exchange of ideas, instructions, feedback, and other
forms of communication between employees, management, clients, suppliers, and other stakeholders.

VARIOUS DEFINATIONS OF COMMUNICATIO BY EXPERTS:

  Louis Allen: Communication is a bridge of meaning. It involves a systematic and continuous process of
telling, listening and understanding.
 Peter Little: Communication is a process by which information is transmitted between individuals and
organizations so that an understanding response results.
 W.H. Newman and C.F. Summer Jr: “Communication is an exchange of facts, ideas, opinions, or
emotions by two or more people.” It is essentially a bridge of meaning between the people and by using
the bridge a person can safely cross the river of misunderstanding'.
 G.G. Brown : Communication is transfer of information from one person to another, whether or not it
elicits confidence. But the information transferred must be understandable to the receiver.
 Fred G. Meyer : Communication is the interconnection by words, letters or messages.
 Brennan: Business communication is the expression, channelling, receiving and interchanging of ideas
in commerce and industry.
 Mcfarland: “The process of meaningful interaction among human beings in known as communication.”
More specifically it is the process by which meanings are perceived and understanding is reached
among individuals and groups.

COMMUNICATION PROCESS

The communication process is the steps we take in order to successfully communicate. Components of the
communication process include a sender, encoding of a message, selecting of a channel of communication,
receipt of the message by the receiver and decoding of the message. The communication is a dynamic process
that begins with the conceptualizing of ideas by the sender who then transmits the message through a channel
to the receiver, who in turn gives the feedback in the form of some message or signal within the given time
frame.

ELEMENTS OF COMMUNICATION PROCESS:

1) Sender: The sender or the communicator is the person who initiates the conversation and has
conceptualized the idea that he intends to convey it to others.
2) Encoding: The sender begins with the encoding process wherein he uses certain words or non-verbal
methods such as symbols, signs, body gestures, etc. to translate the information into a message. The
sender’s knowledge, skills, perception, background, competencies, etc. has a great impact on the success
of the message.
 3) Idea & Message: Once the encoding is finished, the sender gets the message that he intends to convey.
The message can be written, oral, symbolic or non-verbal such as body gestures, silence, sighs, sounds,
etc. or any other signal that triggers the response of a receiver.
4) Media or Communication Channel: The Sender chooses the medium through which he wants to
convey his message to the recipient. It must be selected carefully in order to make the message effective
and correctly interpreted by the recipient. The choice of medium depends on the interpersonal
relationships between the sender and the receiver and also on the urgency of the message being sent.
Oral, virtual, written, sound, gesture, etc. are some of the commonly used communication mediums.
5) Receiver: The receiver is the person for whom the message is intended or targeted. He tries to
comprehend it in the best possible manner such that the communication objective is attained. The
degree to which the receiver decodes the message depends on his knowledge of the subject matter,
experience, trust and relationship with the sender.
6) Decoding: Here, the receiver interprets the sender’s message and tries to understand it in the best
possible manner. An effective communication occurs only if the receiver understands the message in
exactly the same way as it was intended by the sender.
7) Reply or Feedback: The Feedback is the final step of the process that ensures the receiver has received
the message and interpreted it correctly as it was intended by the sender. It increases the effectiveness
of the communication as it permits the sender to know the efficacy of his message. The response of the
receiver can be verbal or non-verbal.
8) Noise: In communication, noise is anything that interferes with the interpretation or transmission of a
message. The Noise shows the barriers in communications. There are chances when the message sent
by the sender is not received by the recipient.

KEY ASPECTS OF BUSINESS COMMUNICATION:

1. Internal Communication: This involves communication between members of the organization. It

includes meetings, memos, emails, reports, and any other form of interaction that helps employees
collaborate, share information, and work towards common goals.
2. External Communication: This pertains to interactions between the organization and external parties,
such as clients, suppliers, investors, and the public. It includes marketing materials, press releases,
customer service interactions, and social media engagement.
3. Formal and Informal Channels: Formal communication follows established protocols and often
includes official documents and structured meetings.
4. Informal communication can be more spontaneous and includes casual conversations and unofficial
messages.
5. Purpose and Goals: The purpose of business communication is to ensure that all parties involved have
a clear understanding of tasks, expectations, and objectives. Effective communication helps in decision-
making, problem-solving, and maintaining relationships.
6. Clarity and Efficiency: Successful business communication aims to be clear, concise, and efficient to
avoid misunderstandings and to facilitate prompt and accurate information exchange.

Functions of Business Communication

1. Information Sharing: Facilitates the exchange of important data, updates, and insights among
employees, departments, and stakeholders.

2. Decision-Making: Provides the necessary information and feedback needed for effective decision-
making at all levels of the organization.

3. Coordination and Collaboration: Promotes teamwork and collaboration by ensuring that everyone is
aligned on goals, tasks, and projects.
 4. Problem-Solving: Helps identify issues and generate solutions through discussions, meetings, and
reports.

5. Relationship Building: Fosters connections among employees, management, clients, and partners,
enhancing trust and collaboration.

6. Motivation and Engagement: Engages and motivates employees through clear communication of
goals, recognition, and feedback.

7. Crisis Management: Provides timely information and strategies during crises to manage and mitigate
risks effectively.

8. Branding and Marketing: Communicates the brand’s message to customers, enhancing visibility and
customer engagement.

9. Training and Development: Facilitates the sharing of knowledge and skills, supporting employee
development and on-boarding.

10. Feedback Mechanism: Encourages feedback from employees and customers, allowing the organization
to improve products and processes.

OBJECTIVES OF BUSINESS COMMUNICATION

1) To exchange information: The main objective of business communication is to exchange information

with internal and external parties. Internal communication occurs within the organization through
orders, instructions, suggestions, opinions etc.
2) To develop plans: Plan is the blueprint of future courses of actions. The plan must be formulated for
attaining organizational goals. In order to develop a plan, management requires information. In this
regard, the objective of communication is to supply required information to the concerned managers.
3) To implement the plan: Once a plan is prepared, it is to be implemented. Implementation of a plan
requires timely communication with the concerned parties. Thus, communication aims at transmitting a
plan throughout the organization for its successful implementation.
4) To facilitate policy formulation: Policies are guidelines for performing organizational activities.
Policies are also termed as standing decisions to recurring problems. Every organization needs to
develop a set of policies to guide its operation. Preparing policies also require information from various
sources. Therefore, the objective of communication is to collect necessary information for policy
formulation.
5) To achieve organizational goal: Collective efforts of both managers and workers are essential for
achieving organizational goals. Communication coordinates and synchronizes the efforts of employees
at various levels to achieve the stated goals of the organization.
6) To organize resources: Various kinds of resources are available in an organization such as human
resources, material resources, financial resources and so on. In organizing these resources in an
effective and efficient way is a key challenge to the managers. Communication is the vehicle to
overcome this challenge.
7) To coordinate: Coordination is a basic management function. It involves linking the various functional
departments of large organizations. Without proper and timely coordination, an achievement of
organizational goals is impossible. Therefore, the objective of communication is to coordinate the
functions of various departments for the easy attainment of organizational goals.
8) To direct the subordinates: The job of a manager is to get the things done by others. In order to get
the things done, management needs to lead, direct and control the employees. The performance of these
managerial functions depends on effective communication with subordinates.
Importance of Business Communication:

1) Building Better Teams

2) Preventing Misunderstandings and Conflicts
3) Improving Customer Service
4) Meeting Goals and Earning
5) Promoting Creativity and Innovation
6) Advancing Individual Career Prospects
7) Implements Efficient Operations
8) Boosts Team Collaboration
9) Leads to Better Decision Making
10) Builds Healthy Connections
11) Fosters Effective Leadership
12) Ensures Compliance

7 C’S OF COMMUNICATION

Definition: The 7 C’s of Communication is a checklist that helps to improve the business communication skills
and increases the chance that the message will be understood in exactly the same way as it was intended.

1) Clear: The message should be clear and easily understandable to the recipient. The purpose of the
communication should be clear to sender then only the receiver will be sure about it. The message
should emphasize on a single goal at a time and shall not cover several ideas in a single sentence.
2) Correct: The message should be correct, i.e. a correct language should be used, and the sender must
ensure that there is no grammatical and spelling mistake. Also, the message should be exact and well-
timed. The correct messages have a greater impact on the receiver and at the same time, the morale of
the sender increases with the accurate message.
3) Complete: The message should be complete, i.e. it must include all the relevant information as required
by the intended audience. The complete information gives answers to all the questions of the receivers
and helps in better decision-making by the recipient.
4) Concrete: The communication should be concrete, which means the message should be clear and
particularly such that no room for misinterpretation is left. All the facts and figures should be clearly
mentioned in a message so as to substantiate to whatever the sender is saying.
5) Concise: The message should be precise and to the point. The sender should avoid the lengthy
sentences and try to convey the subject matter in the least possible words. The short and brief message
is more comprehensive and helps in retaining the receiver’s attention.
 6) Consideration: The sender must take into consideration the receiver’s opinions, knowledge, mindset,
background, etc. in order to have an effective communication. In order to communicate, the sender
must relate to the target recipient and be involved.
7) Courteous: It implies that the sender must take into consideration both the feelings and viewpoints of
the receiver such that the message is positive and focused at the audience. The message should not be
biased and must include the terms that show respect for the recipient.

Business Communication Channels

A communication channel is the medium, mean, manner or method through which a message is sent to its
intended receiver. The basic channels are written (hard copy print or digital formats), oral or spoken, and
electronic and multimedia. Within those channels, business communications can be formal, informal, or
unofficial.

Communication channels can be categorized into three principal channels:

(1) Verbal

 Written
 Spoken

(3) Non-verbal

Verbal Communication

Verbal Communication is a type of communication where we use spoken and written words to get our message
and information across to the other person. In other words, whenever we use our words to express ourselves,
our feelings, and our thoughts, we are verbally communicating.

 Written Communication - Written communication refers to the exchange of information through

written words, such as emails, letters, or faxes. It is essential to be clear, concise, and accurate in written
communication to avoid misinterpretation and create a permanent record of the interaction.
 Spoken Communication - Spoken communication refers to the use of verbal language to convey
messages between individuals. It is a natural and primary form of human interaction, allowing for
hands-free communication from a distance and without the need for additional learning.
Non-verbal Communication

Nonverbal communication encompasses a diverse range of signals that go beyond spoken language, such as
gestures, facial expressions, body language, and vocal nuances like tone and rhythm. These cues carry subtle
meanings critical to effective communication.

“Kinesics”

Kinesics is the interpretation of body communication such as facial expressions and gestures, nonverbal
behavior related to movement of any part of the body. It is the interpretation of body communication such as
facial expressions and gestures, nonverbal behavior related to movement of any part of the body or the body as
a whole.

Face-to- Face

Face-to-face communication is when two or more people see and physically interact with each other. It's also
known as Personal Communication.

Merits of Verbal Communication:

1. Time-saving: One of the biggest advantages of using verbal communication in organizations is that it
facilitates immediate transmission of messages or information, therefore the person on the receiving end does
not have to wait for the message to get delivered through a selected medium hence saving a lot of time.

2. Instant feedback: The positive aspects of verbal communication include the facility of instant feedback
which is often not possible in written communication. Quick feedback in conversation also completes the loop
of the communication cycle between the sender and the receiver.

3. Convenience: Verbal communication makes it easier to share a message or information with better clarity
and expression, hence promoting better understanding among the receivers.

4. No delays: Another merit of verbal communication is that it facilitates an instant exchange of thoughts and
ideas in case of emergencies and helps avoid any kind of delay in decision-making.

5. Personal touch: Since verbal communication uses tone, pitch, and facial expressions, it adds a human and
personal touch to messages. This ultimately helps reflect a friendly and warm spirit in messages rather than a
domineering tone.

6. Financially efficient: Verbal communication is one of the most financially efficient modes of communication
in formal businesses as it does not necessarily require paperwork or other formalities.

7. Higher confidentiality: Since messages or information are transmitted mostly through personal contact in
verbal communication, it becomes easier to maintain the confidentiality of a message by the sender.

8. Support of multiple mediums: Verbal communication always facilitates the sender with the liberty to use
various other forms of communication to deliver a message. These forms could be visuals, audio, written
messages, presentations, and more.

9. Open to changes: Verbal communication is often open to any kind of changes in terms of decisions or in
accordance with any previous communications in an organization. This further helps in eliminating any kind of
confusion and misunderstanding among the employees.
10. Quick delegation of responsibilities: Verbal communication makes it possible to delegate authority or
responsibility among employees in an organization without wasting time on formalities like paperwork.
Employees can revert instantly if they have any questions to ask through the verbal medium.

Limitations of Verbal Communication:

1) Misinterpretation: While verbal communication can provide clarity, it's also prone to
misinterpretation. Different people might interpret the same words differently based on their personal
experiences, cultural background, or current emotional state.
2) Language Barriers: In an increasingly globalized world, language differences can pose significant
challenges to effective verbal communication. Misunderstandings can easily arise when communicating
with someone who doesn't share the same native language.
3) Dependence on Memory: Both the speaker and the listener rely heavily on memory in verbal
communication. Important details can be forgotten, leading to incomplete or inaccurate information
transmission.
4) Time-Consuming: In some cases, especially when dealing with large groups or complex topics, verbal
communication can be time-consuming. Written communications like emails or reports might be more
efficient in certain situations.
5) Distance Limitations: Traditional spoken verbal communication is limited by physical proximity.
While technology has mitigated this to some extent with phones and video calls, it still poses challenges
in global communications across different time zones.
6) Emotional Interference: The personal nature of verbal communication, while often an advantage, can
also be a disadvantage. Emotions can interfere with clear communication, leading to heated arguments
or the conveyance of unintended messages.
7) Noise and Distractions: External factors like background noise or visual distractions can interfere
with verbal communication, especially in its spoken form. This can lead to missed information or
misunderstandings.
8) Importance of Confident Speakers: In group settings, verbal communication can sometimes be
dominated by more confident or outspoken individuals, potentially overshadowing valuable input from
quieter members.

Barriers to Effective Communication

The process of communication has multiple barriers. The intended communique will often be disturbed and
distorted leading to a condition of misunderstanding and failure of communication. The Barriers to effective
communication could be of many types like linguistic, psychological, emotional, physical, and cultural etc. We will
see all of these types in detail below.

Linguistic Barriers
The language barrier is one of the main barriers that limit effective communication. Language is the most
commonly employed tool of communication. The fact that each major region has its own language is one of the
Barriers to effective communication. Sometimes even a thick dialect may render the communication ineffective.

Psychological Barriers
There are various mental and psychological issues that may be barriers to effective communication. Some people
have stage fear, speech disorders, phobia, depression etc. All of these conditions are very difficult to manage
sometimes and will most certainly limit the ease of communication.

 Cognitive Dissonance- Cognitive dissonance theory is a psychological concept that explains how people
feel uncomfortable when their beliefs, attitudes, values, or behaviors are inconsistent. This discomfort is
called cognitive dissonance, and people are motivated to reduce it by changing their beliefs, perceptions, or
actions.
  Halo Effect- The halo effect is a cognitive bias that can affect communication. The halo effect is a form of
cognitive bias—a heuristic (or mental shortcut) that causes us to make snap judgments. In other words, the
halo effect leads us to consider only one aspect of a person or a product in order to form a general opinion.

 Horn Effect- The horn effect is a cognitive process in which negative traits are ascribed to an individual
based on appearance or other factors. For example, if someone speaks with a stutter, an employer might
immediately think that this person is less intelligent than someone without a stutter. The horn effect is a
cognitive bias that occurs when someone forms a negative impression of another person based on a single
negative trait. This can happen based on someone's appearance, mannerisms, or attitude. The horn effect is
the opposite of the halo effect, where a positive attribute colours someone's overall perception.

Emotional Barriers

The emotional IQ of a person determines the ease and comfort with which they can communicate. A person who is
emotionally mature will be able to communicate effectively. On the other hand, people who let their emotions take
over will face certain difficulties.

Physical Barriers to Communication

They are the most obvious barriers to effective communication. These barriers are mostly easily removable in
principle at least. They include barriers like noise, closed doors, faulty equipment used for communication, closed
cabins, etc. Sometimes, in a large office, the physical separation between various employees combined with faulty
equipment may result in severe barriers to effective communication.

Cultural Barriers of Communication

As the world is getting more and more globalized, any large office may have people from several parts of the world.
Different cultures have a different meaning for several basic values of society. Dressing, Religions or lack of them,
food, drinks, pets, and the general behaviour will change drastically from one culture to another.

Organisational Structure Barriers

As we saw there are many methods of communication at an organizational level. Each of these methods has its own
problems and constraints that may become barriers to effective communication. Most of these barriers arise
because of misinformation or lack of appropriate transparency available to the employees.

Attitude Barriers

Certain people like to be left alone. They are the introverts or just people who are not very social. Others like to be
social or sometimes extra clingy! Both these cases could become a barrier to communication. Some people have
attitude issues, like huge ego and inconsiderate behaviours.

Perception Barriers

Different people perceive the same things differently. This is a fact which we must consider during the
communication process. Knowledge of the perception levels of the audience is crucial to effective communication.
All the messages or communication must be easy and clear. There shouldn’t be any room for a diversified
interpretational set.

Physiological Barriers

Certain disorders or diseases or other limitations could also prevent effective communication between the various
channels of an organization. The shrillness of voice, dyslexia, etc are some examples of physiological barriers to
effective communication. However, these are not crucial because they can easily be compensated and removed.

Technological Barriers
Other barriers include the technological barriers. The technology is developing fast and as a result, it becomes
difficult to keep up with the newest developments. Hence sometimes the technological advance may become a
barrier. In addition to this, the cost of technology is sometimes very high.

Socio-religious Barriers

Other barriers are socio-religious barriers. In a patriarchal society, a woman or a transgender may face many
difficulties and barriers while communicating.

Information Overload

Information overload can be a barrier to communication when the brain is presented with too much information to
process, making it difficult to understand and make decisions. This can happen when the quantity or quality of
information is excessive, or when there is a lack of clear guidelines for managing information.