UNIT 1

Business Communication
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 andexternal 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.

Definition:
Organized communication is a term that covers allcommunication employed by a company and its
representatives. This includes communication between staff as well as outward-facing
communication. Companies often strive to have unified message behind formal
communications, with allmessages following a larger communication plan.
Business Communication can be defined "as a process in which business-related ideas, plans,
strategies, messages, etc. are exchanged among different stake holders, namely manufacturers,
suppliers, retailers, buyers and government agencies, etc."
Effective and speedy business communication is imperative for the success of an enterprise.
Effective business communication is how employees and management interact to reach
organizational goals. Its purpose is to improve organizational practices and reduce errors. It's
important to work on both your communication skills and communication processes to achieve
effective business communication.

The importance of business communication also lies in:

Presenting options/new business ideas
Making plans and proposals (business writing)
Executing decisions
Reaching agreements
Sending and fulfilling orders
Successful selling
Effective meetings
Providing feedback to employees and customers

All organized activity in a company relies on the process of business communication and your
communication strategy. This could be anything from managerial communication to technical
communication with vendors.

The Functions of Business Communication

Functions of Business Communication is the process of conveying information and comprehension
from one person to another. And in the process of information exchange, multiple functions are
performed. Following are the functions of Business Communication:
 Business
Communication management. Business
Functions Of functions of
one of the most
essential
providing information, logistics.
Planning 0s process by
Planning: the planning sources. Without appropriate
Communication facilitates external
ideas from a ariety of internal and effective plan.
opinions, and create and execute an departments within an
impossible to numerous
communication, it is Co-operation: There are essential for
Managing Coordination and between and among these departments is
organization, and coordination Communication facilitates cooperation by
environment. Business pertinent information.
fostering a pleasant through the dissemination of
departments facilitates
connecting the various ensure coordination, and communication
cooperation
Better comprehension and
coordination by providing thenecessary data.communication in an organization is to inform the
function of
For information:The purposes or or company policies and procedures etc.
Top
individual or group about the particular task
lower
policies to the lower level through the middle level. In turn, the
management informs can flow
through the middle level. Information
level informs the top level the reaction
organization. Becoming informed or inform
vertically, horizontally and diagonally across the
others is the main purpose of communication.
judgement of the worth of task is
For evaluation: Examination of activities to form an idea or
the individual or team.
achieved through communication. Communication is a tool to appraise
outputs or some
their contribution to the organization. Evaluating one's own inputS or other's
ideological scheme demands an adequate and effective communication process.
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.
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.
For influencing/Persuading: 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.
For image building: Abusiness 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 projectthe 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.
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.
 !S of 2n

Helping in Decision Making: Management is to take decision in different areas tor the
Management
ucloning of the organizational activities. Business Communication helps
take proper and timely decisions by providing information in relevant areas.

SS
 COMMUNICATION
BUSINESS communication in
CHARACTERISTICS OF general
the
distinguished from
communication can be set of
written in a
Business us learnthem. specific goal. It is example, ifa book
Let
manyrespects. communication has acommunication.For Meerut for
business publishers,
formal -A the purpose ofthe the Modern they will
give
It is stressing on letter to Hons.),
() formal format Bazaar, Delhiwrites apublished for B.Com (
Chawari authors.
seller in each of the books names of the
sending five
copies titles and
along with their communication is not
the books
the list of emotions - As
business connected
or twO persons
personal feelings insteadit is
between
emotion. In
practice,
There are no family members, or
(ii) between two friends
or
is no personal feeling related
information
dealings, there The business
through business information is avoided.
imaginary or
unnecessary
astraightforward manner.
highlighted in
should be specifically the earlier ones
in
to
matters only - It is also related mentioned
with business related
business related matters are
It deals only communicate about
(ii) respect that in the communication if you want to
the example,
information is given. For price, etc. so that the
andno personal features, utility,
product, highlight the
the new launch of your impression about the product.
customer may get overall
business communication has a certain objective
earlier
(iv) It isobjective - As mentioned focused on explaining that particular objective. For
is
or goal and the whole matter objective of the book seller to procure the books for
example, as given in point i) the objective is focussed by giving the list of the
this
B.Com and therefore in the letter
books.

As mentioned in point 1 business communication is written

(v) It is in a certain format - tormats of different types of business
The detailed
in a certain format. You should practice the writing
stvle
communications are described in units 6 and 7.
letter.
of the business
it
some information - As business communication is obiective
(vi) It gives or elicits wants to know the features of a new
point e.g., if a retailer
touches the specific manager will describe only those
then the production
product of the company, marketing manager wants to know the
on the other hand
featuresof the product. If the marketing team will give onv
heir new pr0ducts,
response of the customers fort should be complete.
The information
that information in their response.
(V) It may be kept as legal evidence it some dispute arises in tuture
ot the ( e e t ervIN 1he INgUte
being tOmal is a legal document having the signatutes he letter nbe INet t MY
busies matter
may arise in tuture while transating the
needed in legal caNes,
geap1s, photographs, ete may b used
(viii) u order toclaborate certai ponts, tables,
sales
ttatt'of the odut t the marht tlhw
marketng nTwantN to know the nchlN
busmNNOumwaton
the comprchusbility othe

Principles of Business Communication

Communication
7 C's of Business

Correct
Comple

Clear Goncrete
Communlcatlon

Courteous Conclse

Consideratlon

There are 7 principles of effective Business Communication.

Clarity
Clarity comes first in the 7C's of Business Communication and is one of the
vital Business
Communication topics. Your communication must be clarified for the receiver to serve the
purpose. The clarity in writing in Business Communication
sender expresses clarifiedcontents through the message. becomes possible only it the
message is important when it comes to Business Hence, malntaining clarity in your
Communication.
Complete
principles of effective Business Communication.The
crucial vou
Being complete is one of the the receiver understand the entire chapter which
letting
primary reason behind this is in Business Communication is the most important
writing
are trying to convey. Clarity in for which you are communicating.
Whether you
purpose
part, let them understand the them, make sure that they
understand
audience or simply persuade
want to inform the you and the audience to form a good
long
Prioritize the relationship between
your effort.
lasting business relationship.

Concise
the optimum flow
When communicating on abusiness platform, do not forget to maintain
is looking.
of information required. This provides the information for which the audience
The information provided must be enough to cover the specific field. This should be done in
a constant flow so that different types of messages to the employees become clear and
concise.

Correct

Using the correct form of media for communication is a notable factor. It is one of the
principles of effective Business Communication. This can be done through a range of media,
including phone calls, emails, and reports. To illustrate or convey the message perfectly,
make sure to choose the correct media platform. This will ensure effective Business
Communication, even if it is addressed to the audiences. Also, choosing the right media will
clear out the context. From the perspective of employee responsibilities, a message
conveyed with a sweet note through the right media can ensure complete peace of mind
from both ends.

Concrete
A concrete message plays an important role among the principles of Business
Communication and is a vital part of the 7 C's of Business Communication. This will ensure
proper understanding and the meaning of the content with full attention. On a natural
note, will you understand amessage given to you that lacks concrete information? Even ifit
has clarity, aproperly composed message may appear difficult to understand. Due to half
the information, the person who is receiving the message will hesitate, and eventualy, this
willbring down the production level.
Consistency

Imagine reading a book that starts on a serious romantic fireball and eventually turns itself
into a supernatural comic. The point is, maintain consistency in your message. If your
message lacks consistency, the receivers at the other end will turn themselves into a
confused dipper. Keeping this in mind, all forms of Business Communications must be
expressed with utmost consistency. The voice, content, and tone together make Business
Communication topics far more engaging.
 Coherent

Be logical! Communicators in the form of clients and employees must not get any illogical
notes hidden in amessage. Conveying the appropriate message may not be possible all the
time, if you are not careful. Clearly define the topics and information to the audience so
that they need not unearth the purpose or motto of your message. Coherence has a special
significance when it comes to the communicative objectives ofa business. It is as important
as to maintain Clarity in writing in Business Communication.
also identified
Apart from the above 7Cs the The American Management Association has
essentials of effective communication. They are popularly called as the ten commandments
of effective communication.

1. Clarity of ideas: Before sending the communication, the sender should first clarify the
ideas in mind as to what he/she wants to communicate. According to Terry the
principle of effective communication is 'first to fully inform oneself'

2.
Appropriate language: The communication should be in simple language. Jargon
and technical words should be avoided.

3.
Consistency: A consistency in the communication should be maintained. One should
try to avoid togive too many things at a time.

4. Adequate information: Communication should have complete information about the

subject under consideration, because incomplete facts may create confusion and
irritation.

5. Proper time: The communication should reach the receiver at the proper time. A late
delivery of communication may lose its relevance.
6. Draw attention: The communication should be so worded that it draws attention of
the receiver and he/she goes through it with attention.
7. Touch of informality: Although official
of informality here and there may create
communications are generally formal, a touch
positive environment. Many problems can
be solved amicably through informal channels.
8.
Consultation: If necessary, one should not hesitate to consult
before sending the communication. appropriate authority
9.
Perception of future: Communicate with future as well as
present in mind.
10. Feedback: The sender should seek feedback so that
future action can be planned.
Types of Business Communication

Internal and ExternalCommunications in an Organization:

In the context of abusiness enterprise, an internal communication may originate from the director or
the manager or the group leader. It may originate from the lower level of the hierarchy such as co
worker or subordinate who may seek some information, clarification or seeking redressal of some
grievance.
In the context of an external communication, the sender may be a
supplier or a vendor seeking the
order for the supply of raw materials. It may be a customer or a
retailer who intends to send a
complaint about the product purchased/ sold. Sender may be a person from
the
department seeking information about the production/supply/tax returns, etc. Similarly, government
it may be a
person from the public relations department of the organization seeking
rules from a government department. information about the new

Internal
Superiors (Directo, Managers, Group Leaders)
Communication +co-woskers
Subordinates

Suppliers
Vendors
External Retailers
Communication
Customers
Government
Public
 nternal|Communication
Downward Communication: Downward Flow: In this pattern,
higher hierarchy tothe lower one, i.e. communication flows from the
and other information to the management transmits the work related schedule, planning
workers. The managers/ supervisors use this mode of internal
communication generally for the following purposes:
Transmitting work-schedule
Informing company's mission and objectives
Giving job-instructions
Giving feedback about the employees' performance.
Instructing about concentrating on a particular area, if necessary.

Letters to employees, circulars, notices, organizational publications, etc. are some of the examples of
the downward communication.

Adownward communication is depicted in the Figure below:

Production
Manager
Communieati
Downwardon
Assitant
Production
Manager

Production
Supervisor

Worker

higher hierarchy is known as the

2. Upward Flow: Communication that flows from the lower level to the
performances
upward communication. The workers send information pertaining to their problems and
management to the workers. It
tothe higher-ups. It is a sort of feedback to the instructions sent by the
organization,
is used by workers for sending their ideas and suggestions to the management. In a good
of
workers are encouraged to share their problems, ideas, dissatisfaction if any, through upward mode
communication. Thus, managers are acquainted with workers' job feelings and experiences towards
their jobs, supervisors, colleagues and if necessary, timely action can be taken.
Upward communication includes performance reports by the supervisors for promotion of the
workers, grievance redressal, suggestions, etc. For example, if the workers in the production
department feel that their working conditions are not satisfactory, they want to bring it to the notice
of the CEO. Sending this communication is an upward flow of communication.
 An upward communication diagram is depicted in the
figure below:.

Production
Manager
Communication
Upward
Assistant
Production
Manager
Production
Supervisor

Worker

3. Lateral/Horizontal Communication: It is also

communication flows among the employees at theknownsame
as lateral
level of
communication. In this mode.
example, if a group/team meeting is to be held for hierarchy in an organisation. For
members can be involved via planning strategy for a particular project, the
meeting, it is the video-conferencing. Likewise,
if
horizontal communication. There are severalmanagers of various sections hold a
communication: advantages of horizontal flow of
"A problem in agroup can be sorted out quickly.
" Inculcates team feeling.
" It creates harmonious environment in a group.
" It saves time.

" It encourages knowledge/experience sharing among

colleagues.
"Sometimes it helps in resolving inter-departmental problems.

A horizontal communication diagram is depicted in the figure below:

Purchase Manager Production Manager Quality Control

Sales Manager
Manager
 of
4Diagonal Communication or crosswise communication: It is the interaction between the manager
organization. For example, manager
one department with the workers of the other department in an
the marketing department for updating
of the training department communicates with the workers of
them with the strategy for launching a neW product.
below:
Adiagonal communication diagram is depicted in the figure

Communi
Downward
Manager
Communi
Upward
Caton caton

Lateral Supervisor D
Supervisor B Supervisor C
Suporvisor A
Cornmunication Diagonal
com
munica
Izion
Work Work
Work
Work
Persons
Persons Persons Personae
External Communication
with outside
communication by company supervisors and workers
It refers to
agencies in connection with company's work. As a general rule.
individuals or business letter
formal, and usually it is done on
external communication is more conmunicate with
of the procurement department may
head. For example, manager manufacturers,
the suppliers, vendors, whereas marketing manager may
Bank
directors may communicate with the
communicate with retailers. Managing the
company or may communicate with
Managers for seeking loan for the
shares and debentures.
government for raising capital in the form of
 Objectives of the External Communication
Depending upon the type of business, there may be different objectives of external communication.
Some of the common objectives are the following:
(i) To create positive corporate image: External communication is used to create a good image of the
business organization nationally and internationally depending on its area of operations. A positive
image includes its sound financial position, quality of products, integrity infinancial transactions,etc.
A good image attracts the customers on the one hand and financial institutions give loans, etc. easily.
Forexample, a part of the annual speech of the Chairman, Reliance Industries is reproduced below.

Reliance Industries Ltd. (RELIANCE) - Chairman Speech

Company chairman speech
Dear and Esteemed Fellow
Shareowners
At the outset it is my pleasant duty to inform you that
successfully completed the Rights Issue of 53 124 crore.recently
It was
your Company has
times cumulating to an overall commitment of over oversubscribed 1.59
84000
pride andhumility Iwould like to let you know that this was crore. With feelings of
in the last1 0 years globally by a the largest Rights Issue
India. Your Company thus
non-financial institution and the largest ever in
market.
created a new landmark in the history of India's capital

One of its significant features was that the public portion was
also
1.22times reflecting their widespread and unwavering confidence in RIL'ssubscribed
vision of
the future. The Rights Entitlement (RE) was actively traded with
the
being higher than the intrinsic value and these healthy premia were a prices always
the broad-based interest in the Rights Issue. I convey my profuse and reflection of
thanks to all of you both domestic and foreign public shareholders for your profound
overwhelming response to the Rights Issue.

Source: Business Standard

(ii) Identification of new markets: External communication provides avenues for products and
services. It establishes a smooth chain of supply of its products to wholesalers and retailers.
Thus order from the retailers can be procured directly and the same can be complied wwith
swiftly.

(iii) Customer satisfaction: Through external communication, a business enterprise remains in

constant touch with the consumers of its products. It can know their likings and disliking
and can modify its products accordingly. It can also invite their suggestions about the
innovations in the products.

(iv) Relation with the suppliers: Production and procurement are interrelated. Thus, erternal
communication helps in indentifying appropriate suppliers and vendors, negotiating terms
and conditions and if necessary, prOcuring the raw material on a priority basis, for eample
prior to the festive seasons when dernand for its products may increase.
 helps in maintaining
(v) Relation with the government: External communication
agencies in connection with the exports and
Continuous contact with the governmental
clearance for raising capital.
imports and also for seeking necessary
contacts are
Through external communication,
Related with financial institutions: companies, etc. in
(vi)
with the financial institutions, such as banks, insurance
maintained
and for seeking loans.
connection with the exports/imports
the performance of
provide information aboutdirectors
shareholders: Directors for seeking
Relation with They can also contact
(vii) to the shareholders. shareholders are shown
the company director's dialogue with the
information. Some quotes from
below in the box.

Director's Dialogue with

Shareholders

understand the company's investor relation program. If

t's important for the board to g00d
contactsshareholders when there's a crisis, that's not
management only
against
seasons, we (directors) met with major shareholders who voted
"After proxy surprising."
were useful, and sometimes
our say onpay. Those conversationsS
should listen more than speak."
"A director who is meeting with a shareholder

informative and healthy. I

Mfound that meeting with large shareholders was very
would tellother directors: Don't be afraid of doing it and don't avoid it."